Hrm in Hospitality Sector

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INTRODUCTION
Background of the Study
"Employees are the most valuable resources of comparison in the service (software, banking,
management consultancy, etc.) sector. Like all other resources of the company, the employees
possess value because of providing future services." One of the most important indicators of a
company‘s performance is the level of dedication of its employees. Despite of various resources
and supplies a company might require, human resource (HR) is the most important resource
because without labor force no business can be done. People within a company design and
produce goods and services, control quality, allocate financial resources, market the products, set
overall strategies and objectives for the company, etc. So ultimately human resource
management (HRM) is an important part of nearly every organization.
The rapidly changing environment has made, is on, human resource management (HRM) in the
Hospitality Industry. The rapidly changing hospitality industry and the sophistication of travelers
requires more nimble, opportunistic and tightly executed strategies. Hospitality Firms who are
effective at strategy formulation, implementation and evaluation are able to create value in a
highly competitive marketplace. One of the most important departments of any hotel staff is
human resources management. they intend to maintain the status quo, without implementing
much in the way of innovative HRM strategies or practices. They believe that finding the right
people is the most important issue, and that people‘s personality and characteristics such as
enthusiasm, energy, positive attitudes, positive values, and language proficiency, are the most
important factors in hiring future employees, particularly at the entry level.

A number of researchers (Cetron et al. 2006; Henry et al. 2004; Holjevac 2003; Lu 2005; Tanke
2001; Watson et al. 2002; Woods 1999) have attempted to forecast the future HRM challenges
confronting the hospitality industry. Although high technology and information system have
replaced many traditional and administrative functions, such as payroll and records maintenance,
it is not possible to replace service employees in an intensive ‗hands on‘ customer service
culture. Therefore, Holjevac (2003) predicts that employees will continue to be the most
important assets of hotels, and that training and development remains an imperative, permanent
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and continuing activity. Both management and employees need to have the idea of lifelong
learning and training, and it will become a significant part of work life at all levels (Cetron et al.
2006).

Statement of the Problem

The hospitality industry revolves around people: guests and the employees serving them.
Combined with the fact that hospitality is highly competitive and fast-paced, it's no wonder
human resources departments encounter myriad problems on a daily basis. The problems
encountered are:
Turnover and Retention:
A poorly managed restaurant or hotel is an invitation for employee turnover. Losing employees
for nearly any reason is a costly undertaking because of the time and finances involved for HR to
locate, interview, hire and train new staff members. Hospitality is an exciting field with the
potential for lots of action. The phrase "never a dull moment" certainly applies. However, for
some employees, serving people can be especially taxing work causing high levels of stress,
which many employees find they simply cannot tolerate.
Non-existent Policies and Procedures:
In the hospitality field, HR may find itself mired in legal proceedings such as unemployment
hearings and employment-related lawsuits. Many hospitality businesses, particularly smaller
ones, are fail to maintain accurate and current employee documentation. Without this type of
supporting documentation, HR department, and thus business, may find itself at the mercy of the
courts. HR personnel know that employment law favors employees to ensure they are not being
unfairly treated or taken advantage of. Accurate and timely documentation is often business's
only defense.
Inexperienced Managers: Frequently in hospitality, managers are asked to oversee departments
with many employees. Just as often, managers are not properly trained to be effective but are
rather thrown into a position of authority without the benefit of experience or adequate
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management skills. Untrained or inexperienced managers can result in an entire department of
inefficient, disgruntled employees. Managers who don't know what their jobs encompass can
become frustrated and counterproductive, creating a negative trickle-down effect on their
employees.
Harassment Claims:
The adverse impact of harassment occurring in your hospitality business can affect your entire
staff. In a hotel or restaurant environment, there may be ample opportunity for harassment in all
its detrimental forms. Harassment is a situation HR is charged with preventing and, if it occurs,
resolving. Employees who are suffering through episodes of harassment become fearful and are
unable to properly perform their jobs or concentrate on providing the best service for your
guests. HR is charged with investigating and possibly firing or relocating involved employees.
Theft:
Restaurants and hotels usually have a large supply of expensive wine, unlimited food, and high-
end equipment. Some employees can't resist the temptation to steal these items from you. Theft
of this type is unfortunately commonplace in the hospitality industry and is extremely costly to
your business. Though HR may try to instill a sense of loyalty in employees, it often is not
enough to alleviate this cost.
Safety Problems:
Employees in the hospitality industry frequently find themselves in unsafe situations as part of
their jobs. HR professionals realize the importance of following occupational safety rules to
avoid injuries and lawsuits. However, many HR personnel find that their hotel or restaurant has
no safety rules in place, or that rules that are in place are not being followed. With so many
opportunities for injury -- on ladders, in the kitchen, with breaking glass, cleaning chemicals, and
more -- it becomes a considerable HR worry to ensure safety rules are followed.


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Objectives of the Study

The main objective of this research is to investigate the human resources management
issues identified as important to HRM managers operating in the hospitality Industry.
The themes to be explored include the human resource management issues which human
resource managers identify as being of concern to the industry and their own
organisation;
the specific strategies and practices they employ to engage with them; and the further
developments they are planning for the future.

Significance of the Study

The main importance of this research is to investigate the human resources management issues
identified as important to HRM managers operating in the hospitality industry. The themes to be
explored include the human resource management issues which human resource managers
identify as being of concern to the industry and their own organisation; the specific strategies and
practices they employ to engage with them; and the further developments they are planning for
the future. The study explores the way managers are thinking about contemporary HRM issues,
concerns, and practices, and their plans for development for the future, in the context of the
hospitality Industry in. It provides insight which should be helpful for hoteliers, enabling them to
compare their perspectives and opinions with the `aggregated data and literature presented in this
study. Hopefully, it will encourage them to consider more strategically and systematically the
things they can do to more effectively position their HRM efforts.

Scope and Limitations of the Study
Scope of the Study
This study was intended to generate data and insights that are relevant to the hotel
industry .The major scope of this study are that it adds contemporary data to a research which is
scarce. These studies have been single focus studies, and at least two of them can be accessed,
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for varying reasons. By focusing on HRM thinking at a bigger picture or more strategic level, as
well as asking questions about the way specific practices are understood and deployed, this study
has filled a substantial gap in knowledge about the state of the industry. Its
case study is unique, in trying to place the HRM issues of hotel industry in the context of HRM
practice in the region, and in the hotel industry globally.

Limitations of the Study

This study was intended to generate data and insights that are relevant to the hotel industry .
However, there are some limitations regarding the generalisation of the results presented here.
The study was limited to the most senior managers responsible for human resource management.
Many researchers in the HRM field rely heavily on a management perspective in response to
current practices and business performance rather than direct observation.The integration of the
views of all levels of staff and customers would provide a better range of responses and give a
more balanced analysis. Inaddition, the fact that the respondents were not executives meant that
theperspectives of that group have not been represented here, an important gap given
the assumptions that some respondents made about the priorities and views of top management
and owners.The target of this research was international chain hotels and domestic chain
hotels. This research sample covered 2 hotels. This is not good sample and the data and findings
cannot reasonably be expected to provide a sound guide to thinking and practice across the chain
hotels. However, chain hotels represent a larger scale of operation and so these results should not
be generalised to smaller hotels. These are normally family-owned business and previous
research suggests that HRM is not as well developed – or even recognised – in that context .So
the results of this study cannot be viewed as representative of the hotel industry as a whole.

Definition

Hospitality:

The Oxford English dictionary hospitality is defined as:―the act or practice of being hospitable;
the reception and entertainment of guests, visitors or strangers‖.
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Accrding to Lashley (2000) the Joint Hospitality industry Congress defines hospitality as ‗The
Provision of food and/or drink and/or accommodation away from home‘.The Higher Education
Funding Council –England‘s Hospitality Review Panel defined hospitality as being ‗the
Provision of food and /or drink and/or accommodation in a service context‘, furthermore the
Nottingham group defined ‗Hsopitality Is a contemporaneous exchange designed to enhance
mutuality (well being) for the parties involved through the provision of food and/or drink and/ or
accommodation ‘.
King (1995)
King (1995) identifies a difference between private and commercial hospitality, where private is
Defined as‗acts by individuals towards individuals in a private setting such as the home ‘and
Commercial hospitality is defined as‗meals,beverage,lodging and entertainment provided for
profit‘.
King also provides us with four necessary parts of hospitality :
1. A relation between individuals, a host-guest relationship
2. This relation can be commercial or private (in a commercial relation the guest has the
obligation to pay and to behave reasonably, the guest has the power as opposed to private
hospitality where an equality of power is assumed)
3. A key element is having knowledge of what would invoke great pleasure in the
4. Hospitality is a process that includes arrival, which involves greeting and making the
Guest feel welcome… and departure.

These parts of hospitality might clarify what hospitality is but again looks at it from a consumer
(market) side and not from the sector perspective.

Brymer and Huffman

Accrding to Brymer and Huffman the hospitality industry is‗an umbrella term used to encompass
The many and varied businesses that cater guests‘ . This statement indicates that they also
recognise the difficulty in limiting the scope of the hospitality industry.

They however like Angelo and Vladimir find some major segments in the hospitality industry,
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namely: ‗food service, lodging, travel and tourism, and meeting and convention planning‘.This
would mean that the tourism industry, as we discussed before is not a real industry, would be an
integral part of the hospitality industry

Human Resource Management (HRM):

There have been many attempts to define what exactly HRM might be and indeed Heery and
Noon (2001) recognize that it is a subject of considerable academic analysis and that, ultimately,
‗there is no common agreement on what HRM means. Resultantly, they offer 10 definitions,
which they feel capture the complexity and dynamism of HRM as a subject of academic study:
● A label HRM is seen as simply being another name for personnel management and there is
nothing distinct or special about HRM.
● A convenient shorthand term that allows for the grouping together of a whole series of sub-
disciplines that are broadly concerned with people management:such as employee relations,
industrial/labour relations, personnel management and organizational behaviour.
● A map to help guide students and practitioners to understand the concept and ideas associated
with the management of people.
● Aset of professional practices suggests that there are a range of personnel practices that can be
integrated to ensure a professional approach to managing people. In this view a potentially key
role is likely to be played by the Chartered Institute for Personnel and Development (CIPD),
which is the professional association for those entering the HR and personnel profession.
● A method of ensuring internal fit again sees the need to co-ordinate approaches to people
management, but here the co-ordination needs to be with other areas of the organization.
● A method of ensuring external fit where HRM activities have to be fully integrated with the
demands of the external environment.
● A competitive advantage where HRM is the means by which an organization cangain
competitive advantage, a view best captured by the cliché of ‗our people are our greatest asset‘.
● A market-driven approach is that decisions will often be market driven and the needs of the
business determine the manner in which employees are treated; some may be treated well, others
less so well.
● A manipulative device sees it as inherently exploitative and manipulative.
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● A hologram captures much of the above discussion in recognizing the fluid identity
of HRM and the fact that it has multiple meanings.

Best fit
One of the earliest and most influential attempts to develop a model that recognized the need for
a fit between the competitive strategy and HRM was that offered by Schuler and Jackson (1987).
Schuler and Jackson developed a series of typologies of ‗needed role behaviours‘ that enabled
the link between competitive strategy and HRM practices to be made. The type of needed role
behaviours within Schuler and Jackson‘s model was contingent on the overall strategies that an
organization could adopt to seek competitive advantage and the HRM approached adopted to
sustain this.
Best practice
Whilst arguments for best fit advocate a close fit between competitive strategies and HRM, those
in favour of best practice approaches to HRM suggest that there is a universal ‗one best way‘ to
manage people. By adopting a best practice approach it is argued that organizations will see
enhanced commitment from employees leading to improved organizational performance, higher
levels of service quality and ultimately increases in productivity and profitability, Usually
couched in terms of ‗bundles‘, the HRM practices that are offered in support of a high
commitment and performance model are generally fairly consistent. For example, Redman and
Matthews (1998) outline a range of HR practices which are suggested as being important to
organizational strategies aimed at securing high-quality service:

● Recruitment and selection: Recruiting and selecting staff with the correct attitudinal and
behavioural characteristics. A range of assessments in the selection process should be utilized to
evaluate the work values, personality, interpersonal skills and problem-solving abilities of
potential employees to assess their ‗service orientation‘.
● Retention: The need to avoid the development of a ‗turnover culture‘, which may of course be
particularly prevalent in tourism and hospitality. For example, the use of ‗retention bonuses‘ to
influence employees to stay.
● Teamwork: The use of semi-autonomous, cross-process and multi-functional teams.
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● Training and development: The need to equip operative level staff with team working and
interpersonal skills to develop their ‗service orientation‘ and managers with a new leadership
style which encourages a move to a more facilitative and coaching style of managing.
● Appraisal: Moving away from traditional top down approaches to appraisal and supporting
things such as customer evaluation, peer review, team-based performance and the appraisal of
managers by subordinates. Generally, all of these performance appraisal systems should focus on
the quality goals of the organization and the behaviours of employees needed to sustain these.
● Rewarding quality: A need for a much more creative system of rewards and in particular the
need to payment systems that reward employees for attaining quality goals.
● Job security: Promises of job security are seen as an essential component of any overall quality
approach.
● Employee involvement and employee relations: By seeking greater involvement from
employees the emphasis is on offering autonomy, creativity, co-operation and self-control in
work processes. The use of educative and participative mechanisms, such as team briefings and
quality circles are allied to changes in the organization of work which support an ‗empowered‘
environment.















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REVIEW OF LITERATURE
The service intensive hotels depends heavily on its HR, the main part of Hospitality Industry. In
each subsector, the most highest investments, the most modern equipment and luxurious
buildings will fail if the human/personnel aspect of the organization is not carefully taken care
of. Human resources (HR) are the most important resource hotels have since when we talk of
hospitality we talk of a service, where the person who delivers it, is a vital part. Both the client
and supplier affect service and human resources development is the starting point for success in
hospitality organizations. Thus, the tourism industry and specially the hotel sector, considering
its main characteristics, more than any other sector, faces the need to put in practice the human
resources management (HRM) practices. Wood (in Baum, Amoah e Spivack, 1997) refer that
mainly because of the personal service nature of the work involved, in most developed countries,
both indusstry employees and wider society view hotel and catering labour as a relatively low
status. Besides, the hotel sector has some important features that need specific strategies namely,
a high proportion of unskilled labour; a set of competencies that are easily transferable between
hotel units; high turnover rates; low wages (unskilled nature of the work creates an excess of
supply that keep wages down).
Riley (1991) also refers to the subjective nature of standards i.e. every worker‘s output is judged
subjectively because concepts like ―hospitality‖ and ―service‖ cannot be measured formally. The
negative employment image of the sector is the result of a set of historic and contemporary
factors (Baum, Amoah e Spivack, 1997:222): ―the origin of hospitality work within domestic
service and its consequent association with servility; links, in some countries between hospitality
employment and colonial legacy; widespread use of expatriate labour in many developing
countries, creating the perception that the sector is one offering only limited opportunity for
promotion and progression; widespread exposure to work in the sector as a first working
experience, resulting in generalised assessment based on limited exposure‖. Still, in what
concerns features in hotel working, to those who work directly with clients, hours of work are
traditionally dictated by the client‘s needs and by the employment contract. Another dichotomy
can be established between those who are in management positions and those who are not. The
first ones work several hours according to the needs of the hotel and not according to specific
and well defined shifts of work. Since usually extra hours of work are not paid to workers in
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management positions, organizations actually have more hours of work from their employees
without more expenses.
To those who live in hotels, it may happens that being officially ―off‖ they are at the same time
available to solve some problem that may appears and needs attention. In what concerns those
workers that are not in management positions hours of work vary from country to country
(Hornsey e Dann, 1984). However, working in shifts is also common and as well for these
workers there is a large reluctance in paying extra-hours of work. They are too subjected to hours
of work that are not paid and are not expressed in working shifts. The HRM process is put in
practice in organizations through planning, organization, development, co-ordination, and
control of a set of techniques that are able to promote an efficient and effective performance
from all those who work in the organisation (Dessler, 1984). Promoting the management of all
activities in organisation in order to attract, develop, motivate and maintain a high performance
workforce, HRM marked itself away from personnel management which applied only
techniques of a operative nature with no relation to management in general. In opposite terms,
HRM has a proactive and strategic nature where HR are important assets of the organization,
managed accordingly to the established long range objectives. Besides, acts on the culture level
of the organization, in a holistic and integral perspective of managing people, where the
performance of each employee is an important contributor to efficient and competitive
organisations. Moreover, HRM is seen as a management activity, and consequently a
responsibility of all managers (Beaumont, 1993). In what concerns defining the HRM concept
there are several authors that pinpoint the need to distinguish between managing resources and
managing people.
Namely, Torrington, Hall & Taylor (2002) refer that in personnel management people who work
in the organization are the starting point, i.e. personnel managers direct their efforts to mediate
the relationships between employers and employees. Contrasting with this perspective, HRM is
directed to management needs in terms of resources to hire and develop. The emphasis is put on
planning and monitoring and not on simple mediation. Problem solving is made with all
managers involved in the question being discussed instead of debate between employees and/or
their representatives. Literature also refer that HRM is totally associated with the interests of
management since it is a generic management activity relatively distant from workforce as a
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whole. Organizations face intensified competition and their survival can not only be based in
identifying market opportunities but in the adequate match between the needs of that market and
a productive, stable and responsible workforce. Given the established objectives, putting in
practice the correct HRM practices allows organizations to anticipate and deal with change,
either internal or external, in a more advantageous way. HR strategy must not only be integrated
with the overall organisational strategy but also must direct it. Only this way can organizations
manage for the future, anticipate problems, stay close to costumers, ahead of competitors and, at
the same time, promoting a strong organisational culture. Both capital and people intensive,
hospitality organizations face the problem of assuring a high performance from their HR given
the sector working conditions. HRM faces in the near future enormous challenges, specially in
the hotel sector, in the difficult task of leading managers and owners to treat HR with respect
and, at the same time, helping them to find new and original ways to release in those persons
talents and capacities trough training and development programs. The present study aims to
approach the importance of HR in hospitality organizations and giving the working conditions in
the hotel sector, to emphasise the vital role of HRM.

This paper draws on a number of sources (Brown et al., 2001; DfEE, 2000; HtF, 2000; 2000a;
2001; 2001a; 2002; IDS, 2001; 2001a; 2002; 2002a) to offer a brief review of the context in
which organisations in the hospitality industry are making their HRM choices. Hospitality is,
without doubt, one of the most important industries in the UK,contributing around 5 per cent of
UK GDP and 25 per cent of foreign invisible earnings. The industry employs 1.9 million people,
which denotes 7.3 per cent of total employment 26 in the UK. Moreover the sector is set for
substantial job growth in coming years, with the National Training Organisation (NTO) for the
sector, the Hospitality Training Foundation (HtF), suggesting that the sector is likely to create
300,000 new jobs between 2002 and 2009 (HtF, 2001). The majority of employees in hospitality,
around 1.1 million, are in the commercial sector of the industry, which consists of pubs, clubs
and bars, restaurants, hotels and contract catering. The remaining number are in the hospitality
services sector, where the main function of the business is not hospitality, for example hospital
catering, school meals and so on. Within the commercial sector the vast majority of businesses
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are SMEs, many owner-operated. This arguably creates particular problems in relation to
attempts to sustain ‗best practice‘ HRM, of which more soon.
The DTI (1999) indicated that 99.8 per cent of hotel and restaurant businesses employed less
than 50 persons in 1998. Indeed, across the commercial sector small or micro businesses with
between one and ten employees make up 90 per cent of business. This is particularly pronounced
in the restaurant sector where 94 per cent of businesses employ ten or less employees. Those
businesses employing 25 or more employees consist of only 3.6 per cent of all establishments but
employ 45 per cent of the hospitality workforce. The majority of these larger employers are
found in the hotel sector, with an increasing number of these being brand or chain affiliated.
Indeed, this point is equally true of the restaurant and pubs clubs and bars sub-sectors. As the
HtF (2001a) notes experts within the industry project major growth in branded products, such as
budget hotels, pubs, café bars and coffee and sandwich shops, and a major decline in small and
independent pubs and small bed and breakfast establishments. There is a preponderance of
women and young people within the hospitality workforce. Women make up around 67 per cent
of the workforce, reflecting that hospitality has a higher proportion of part time employees (57
per cent) than most other industries. Young people are also prominent within the sector, for
example employees under 21 make up 7 Interestingly, as part of the re-organisation of the NTO
network into the new Sector Skills Councils (SSC), hospitality as represented by the HtF, is part
of a broader formal expression of interest to become a SSC for the hospitality, leisure, travel and
tourism sector. It will be instructive to see whether the submission wins one of the approximately
25 available licenses from the Sector Skills Development 27 around 40 per cent of the workforce
within the fast food sector. Related to this last point a significant part of the workforce consists
of student, seasonal and migrant workers8. Only 3.4 per cent of employees in hospitality have a
degree or equivalent compared to an all industry figure of 16.9 per cent.

Around 25 per cent of employees have gone no further than O level or GCSE, with 18.5 per cent
of the workforce having no qualification compared to 11.5 per cent of the total workforce.
Despite the introduction of the national minimum wage (NMW) hospitality remains a poorly
remunerated sector with employees receiving lower pay than their counterparts in all other
industries and services. For example, average gross earnings for adult full time employees in the
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hotel and restaurant sector were £289.1 a week in 2001, the lowest of the main 17 industrial
categories. The average gross earnings figure can also be compared to average earnings in the
whole economy, which were £444 per week. Indeed, the New Earnings Survey for 2001 found
that four of the ten lowest paid occupations are to be found in the hospitality industry. In the pub
and restaurant sector the majority of companies have minimum rates at or near NMW rates9.
Compared to most other sectors, hospitality has higher than average levels of labour shortages
and labour turnover. For example, the annual survey of labour turnover undertaken by the
Institute of Personnel and Development (IPD) in 2001 notes that hospitality, with a labour
turnover rate of 55.3 per cent, was second only to retail and the wholesale industry at 58 per cent.
It is also noteworthy that unsatisfactory pay is the main specified reason (25.6 per cent) for those
who had left hospitality jobs. To date, this section has largely talked of the hospitality sector as a
relatively homogenous sector.
However, recognising the earlier discussion of differing product market strategies, it is worth
reiterating the point that the industry, and particularly the commercial sector, is anything but
homogenous. Most obviously the heterogeneity is Agency, thus qualifying the sector as being
one considered to be ‗economically and strategically important‘ (IRS, 2002: 5) 8 An interesting
recent example of this was reported in the Caterer and Hotelkeeper (‗Serbian students ease
Claridge‘s staff problems‘, 5 July 2001, p. 4) which noted how Claridge‘s hotel, part of the
Savoy group‘s five star properties, was using students from Serbia to address labour shortages. 9
That is not to say that the NMW has had no impact on the hospitality workforce. Indeed, a large
proportion of the 2 million or so workers who had their wage raised by the NMW were in the
hospitality industry. For example, HtF (2001a) recognises that around 30 per cent of hotel and
restaurant employees were earning below the rate at which the NMW was set in 1997. 28
exemplified by the predominance of SMEs. Equally though within the key sub-sectors of hotels,
restaurants and pubs and bars there is considerable diversity in terms of market offerings and the
increasing emergence of the importance of niche segments. For example, a particularly
noteworthy development within the hotel sector is the rise of budget hotels. In 1998 this sector
accounted for 554 hotels and by 2003 it is expected that this figure will have risen to 1,169.
Equally of interest is the rise in speciality coffee bars the number of which has increased by 60
per cent since 1997. This translates into an estimated 1,900 branded chain outlets, a figure that is
expected to rise to 2,700 by December 2004 (Gibbons, 2002).
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This recognition of diversity within the various sub-sectors is important and has implications for
both competitive strategies and related approaches to HRM. As the DfEE (2000) notes two star
hotels tend to compete with other two star hotels within their immediate area and not three star
hotels. Likewise fast food restaurants and Michelin starred restaurants will compete in
completely different and separately defined consumer and labour markets. The DfEE (2000: 18)
goes on to recognise that, ‗The diversity of products, operational scales and technologies makes
it difficult to compare the overall degree of product complexity among sub-sectors, because,
essentially, the ―products‖ are actually services – and these have diverse components.‘
Importantly, the report also notes the implication of this point for skills. ‗The degree of
complexity of products, both in terms of scale and sophistication, had implications for the range
and levels of skills required.‘ Clearly, then, this sectoral profile offers a number of structural
features that may be inimical to sustaining good practice HRM. Aspects like the predominance
of small businesses and a youthful, part-time, female and lowly qualified workforce may mean,
as Keep and Mayhew (1999a) argue, the relatively low level of skills in the hospitality sector is a
‗third order problem‘. Therefore although the low skills base in hospitality is potentially
problematic.
Keep and Mayhew (1999a: 7) suggest that ‗it is not the main [problem] and is often contingent
upon other structural factors.‘ Thus the first order problem is the ownership structure of the
industry and the predominance of very small, 29 owner-managed micro businesses. Secondly,
within the hospitality sector generally competitive strategy is based on cost based competition.
These product market choices then give rise to and serve to exacerbate the second order problem
of the structure of the labour market and poor personnel management. Some of the issues
emerging from this second order problem will be further addressed later in the paper with a
review of examples of ‗bad‘ and ‗good‘ HRM practice in hospitality. At this point though we
aim to further explore some of the issues emerging from the predominance of small businesses.
As we have just noted SMEs play a crucial role in the hospitality industry and consequently there
is a need to consider in greater detail the specific exigencies facing these organisations. In
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particular, this section on SMEs will consider potential ways to increase owner-manager learning
and upskilling, which in turn is likely to impact on SMEs human resources practices.

HRM Issues In The Hotel Industry Globally Employee turnover has been one of the biggest
concerns in the hotel industry for a long time (Hinkin &Tracey, 2000). The hotel industry
globally suffers from high staff turnover levels, which is a pervasive and serious problem
resulting in high direct expenditure as well as intangible costs (Cheng &Brown, 1998; Hinkin
&Tracey, 2000). Hinkin and Tracey (2000) suggested the indirect costs related to turnover
account for more than half of the total costs involved in turnover. Simons and Hinkin (2001)
contended that employee turnover is more costly for luxury hotels than for lower budget
hotels,due to the more sophisticated operating and training systems of the former. There are
many different factors that impact on turnover rates. Riegel (2002) argues that turnover is the
consequence of a complicated series of dynamics, which include the obvious ones of job
dissatisfaction and limited organizational commitment that influence employee attitudes and
ultimately affect employee behavior. Mobley (1982) suggested that the reasons for turnover in
general include dissatisfaction with work; availability of attractive alternatives; external factors
like housing, transportation, or physical environment; and personal factors like illness or injury.
Hinkin and Tracey (2000) added poor supervision, a poor working environment, and inadequate
compensation to that list. They further suggested that some managers do not understand the
relationship between employee retention and company profitability, and accept turnover as a
necessary evil. The issue of turnover has attracted
many researchers' attention in different countries. Powell and Wood (1999) suggested one of the
most significant problems in the hotel industry worldwide is 'brain drain', because the skills and
qualifications gained in hotel sectors are easily transferable to others. Cheng and Brown (1998)
explored the views of HR managers on the strategic management of employee turnover in
medium-to -large hotels in Australia and Singapore. They suggested that the most effective
mechanisms for minimizing turnover are initial recruitment and selection. They recommended a
greater focus on internal recruitment and development, which create career path options, as a
means to reduce staff turnover levels. They also noted induction and socialization that effectively
acculturate newcomers into the organization; and training and development that demonstrates the
willingness of an organization to invest in people which in turn lead to an increase in employees'
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commitment and job satisfaction. At a more fundamental level, Iverson and Deery (1997)
investigated 'turnover culture' in six five-star hotels in Melbourne, Australia and suggested that
the hotel industry has actually created a turnover culture, where there is a normative belief in the
legitimacy of relatively high labor turnover. This point has been subsequently endorsed by
Hinkin and Tracey (2000). Iverson and Deery suggested a strategic switch to promoting a
permanent employment culture and developing an internal labor market to reduce the growth of a
turnover culture. They advocate that managers need to improve communication channels and
highlight the organization's aim for long-term employment during induction programmes, and
also need to develop career path programmes in order to increase employee commitment and the
retention of trained and qualified employees. In the Asian context, Zhang and Wu (2004) noted
that among human resource challenges facing China's hotel industry, high staff turnover rates
constitute one of the key issues.
Best fit vs. best practice?
Boxall and Purcell (2000) suggest that attempts to understand the way in which organizations
approach the management of their HR can be seen with regard to whether they aim for ‗best fit‘
or ‗best practice‘. On the one hand, the best fit school argues for an approach to HRM, which is
fully integrated with the specific organizationa land environmental context in which they
operate. On the other hand,best practice advocates argue for a universalistic approach to HRM
where all firms who adopt a range of agreed HR policies and practices are more likely to create a
high-performance/commitment workplace, as organizations aim to compete on the basis of high
quality and productivity.










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THEORITICAL FRAMEWORK

3.1 HUMAN RESOURCE MANAGEMENT OF HOSPITALITY INDUSTRY
In hospitality industry the job of HR manager can be compare with the job of conductor, whose
job is to instruct and direct all of the various musicians so that they can perform well together.
But before a conductor can direct a beautiful performance, all of the individual musicians must
be able to play their instruments well. What kind of performance could one can expect if the
violinists did not know how to play their instruments or the flutists could not read music?
So it is in the hospitality industry, before a manager can direct and shape employee‘s
individual contributions into an efficient whole, he or she must first turn employees into
competent workers who know how to do their jobs. Employees are the musicians of the orchestra
that the members of the audience-the-guests-have come to watch performance. If employees are
not skilled at their jobs, then the performance they give will get bad reviews. Just as an orchestra
can have a fine musical score from a great composer and still perform poorly because of
incompetent musicians, so a hotel can have a finest standard recipes, service procedures and
quality standards and still have dissatisfied guests because of poor employee performance.
That is why properly managing human resources is so important. No other industry
provides so much contact between employees and customers and so many opportunities to either
reinforce a positive experience or create a negative one.
As in the five-star hotel and five-star deluxe hotel there are around lots of employee are
involved in different jobs in different fields there is dire need to look and control on them. No
doubt different department‘s heads are present to look their department employee, but HRD is a
place, which supervise and effectively communicate with these departments head and
communicate with the top management. Thus there function is very large and diverse as
compared with respect to different department‘s heads.


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3.1.1 Personnel Department of A Typical Five Star Hotel




General Manager
Personnel Director
Personnel Manager
Personnel Officer
Personnel Research &
Development Officer
Training
Department
Personnel
Department
Operative Training
Supervisory Training
Management Training
Training Instruction
Training Aids &
Equipments

Welfare Training Recruitment Maintaining
Payroll
FIGURE 1: Johar Journal,2012
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3.1.2 Personnel Policies of HR
The personnel function in a hotel includes many activities such as:
≈ Consideration of leadership style
≈ Relationship
≈ Responsibilities
≈ Philosophy
≈ Social orientation
≈ Organizational structure
In most of the hotels the personnel policies are put in writing. These policies are distributed to
key and responsible executive to provide guidance and ensure consistent application.
Periodically the HRD review these policies.
3.2 COMMUNICATION IN HOSPITALITY INDUSTRY
Communication is the most important and most used of all skills in the hospitality
industry.

Talking Back for Success
The president of Hyatt Hotels makes it a practice to hold ―gripe sessions‖ with small groups
of employees.
 Managers at Earls restaurants make the rounds of all tables to inquire about the food and
the service.
 The American Automobiles Associations uses an 800-number to makes its products and
services more accessible to customers and to gather information regarding what
customers are thinking and doing.
 At United Airlines, managers are encouraged to get out of their offices and engage in
informal exchanges with employees.
What do Hyatt Hotels, Earls restaurants, the American Automobiles Association, and
United Airlines have in common? For one thing, they will all tell you that effective
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communication makes good business sense. More importantly, they all ―practice what hey
preach‖.
These and other service leaders in the hospitality industry communicate on a frequent and
regular basis with their customers, suppliers and employees. They are well aware that honest
feedback from stakeholders is the ultimate driving force behind organizational success, for it
is this feedback that fuels any efforts at self-improvement, both internally and in the
marketplace.

3.3 HUMAN RESOURCE PLANNING
Human Resource Planning (HRP) is the first aspect of human resource process. It is very
commonly understood as the process of forecasting an organization‘s future demand for, and of,
the right type of people in the right number. It is only after this that HRM department can initiate
a recruitment and selection process. HRP is the sub-system in the total organizational planning.
HRP is important for:
≈ The future personnel needs
≈ To cope up with change
≈ To create highly talented personnel
≈ For the protection of weaker sections
≈ For the international expansion strategy of the company
≈ It is the foundation for personnel functions
The list is infact never ending. HRP actually has become an inevitable part of HRM process.





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3.3.1 The HRP Process






Organizational
Objectives & Policies
HR Demand Forecast HR Supply Forecast
HR Programming
HRP Implementation


Control and
Evaluation of Program
Environment
Surplus Shortage
FIGURE 2: Johar Journal,2012
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 Organizational Objectives & Policies
HR plans need to be based on organizational objectives. In practice, this implies that the
objectives of the HR plan must be derived from organizational objectives. Specific
requirements in terms of number and characteristics of employees should be derived from the
organizational objectives.
 HR Demand Forecast
Demand forecasting must consider several factors – both external as well as internal. Among
the external factors are competition, economic climate, laws and regulatory bodies, changes
in technology and social factors. Internal factors include budget constraints, production
levels, new products and services, organizational structure and employee separations.
 HR Supply Forecast
The next logical step for the management is to determine whether it will be able to procure
the required number of personnel and the sources for such procurement. This information is
provided by supply forecasting. Supply forecasting measures the number of people likely to
be available from within and outside an organization, after making allowance for
absenteeism, internal movements and promotions, wastage and changes in hours and other
conditions of work.
 HR Programming
Once an organization‘s personnel demand and supply are forecast, the two must be
reconciled or balanced in order that vacancies can be filled by the right employees at the right
time. HR programming is the third step in the planning process, therefore, assumes greater
importance.
 HR Plan Implementation
Implementation requires converting an HR plan into action. A series of action programmes
are initiated as a part of HR plan implementation. Some such programmes are recruitment,
selection and placement; training and development; retraining and redeployment; the
retention plan; the redundancy plan; and the succession plan.
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 Control and Evaluation
Control and evaluation represents the fifth and the final phase in the HRP process. The HR
plan should include budgets, targets and standards. It should also clarify responsibilities for
implementation and control, and establish reporting procedures which will enable
achievements to be monitored against the plan. These may simply report on the numbers
employed against establishment and on the numbers recruited against the recruitment targets.
But they should also report employment costs against the budget, and trends in wastage and
employment ratios.
3.4 JOB ANALYSIS
In order to achieve effective HRP, the duties involved and the skills required for performing all
the jobs in an organization have to be taken care of. This knowledge is gained through job
analysis. In simple words, job analysis may be understood as a process of collecting information
about the job. Specifically, job analysis involves the following steps:
 Collecting and recording job information.
 Checking the job information for accuracy.
 Writing job description based on the information.
 Using the information to determine the skills, abilities and knowledge that are required on
the job.
 Updating the information from time to time.











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3.4.1 Job Analysis Process











RECRUITMENT








Job Analysis
A Process of Obtaining all Pertinent Job Facts
Job Description
A statement containing items
such as
 Job title
 Location
 Job Summary
 Duties
 Machines, tools & equipment
 Materials & form used
 Supervision given or received
 Working conditions
 Hazards
Job Specification
A statement of human qualifications
necessary to do the job. Usually contains
such items as
 Education
 Experience
 Training
 Judgement
 Initiative
 Physical efforts & Physical skills
 Responsibilities
 Communication skills
 Emotional characteristics
 Unusual sensory demands such as
sight, smell, hearing.
FIGURE 3: Johar Journal,2012
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3.5 Recruitment
Recruitment is understood as the process of searching for and obtaining applicants for jobs, from
among whom the right people can be selected. Recruitment is the process of finding qualified
people and encouraging them to apply for work with the firm.
3.5.1 Managerial Roles
Responsibility for the overall recruitment process is assigned to human resources
managers. They are responsible for designing and implementing a recruitment program that will
meet the hospitality industry‘s personnel needs while complying with all legal requirements.
This responsibility includes finding sources of applicants; writing and placing advertisements;
contacting schools; agencies and labour unions; establishing procedures to guarantee equal
employment opportunity; and administering the funds the firm has budgeted for recruitment..
3.5.2 Recruitment Process
HR practices its function in each and every stages of recruitment. The process comprises five
interrelated stages, viz. (i) Planning, (ii) Strategy development, (iii) Searching, (iv) Screening,
and (v) Evaluation and control.
The function of HR is to make the selection procedure an ideal one. The ideal recruitment
programmed is the one that attracts a relatively larger number of qualified applicants who will
survive the screening process and accept positions with the organization, when offered.







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Recruitment Process









Personnel
Planning
Job
Vacancies
Job
Analysis
Recruitment
Planning
-Numbers
-Types
Employee
Requisition
Searching
Activation
“Selling”
-Message
-Media
Screening
Potential
Hires
Applicant
Pool
To
Selection
Evaluation
& Control
Strategy
Development
-Where
-How
-When
Applicant
Population
FIGURE 4: Johar Journal,2012
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3.6 SELECTION
Selection is a process of picking individuals (out of the pool of job applicants) with requisite
qualifications and competence to fill jobs in the organization. Different hotels apply different
methods and procedure for recruitment as well as selection. It basically depends on the
management policies and the size of operation.

3.6.1 Selection Process
Selection is a long process, commencing from the preliminary interview of the applicants and
ending with the contract of employment. Selection procedure for senior managers will be long-
drawn and rigorous, but it is simple and short while hiring shop-floor workers.













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3.6.2 Selection Process for Managerial Department in Marriot




Pre-placement
Presentation
Group Discussion
Extemporization
Written Aptitude
Test
Preliminary
Interview
Psychometric
Test for short
listed candidates
Final Interview
with senior
management
Letter of Offer
FIGURE 5: Johar Journal,2012
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3.7 ORIENTATION AND PLACEMENT
3.7.1 Orientation
Orientation is called as induction. It is the planned process of introducing new employees to their
jobs, their co-workers and the organization. The main purpose of induction is to relieve the new
employee from possible anxiety and make him or her feel at home on the job.
These orientation programmes are carried out formally as well as individually/collectively in the
hotels. These programmes are carried from 1 weak – 2 weak.
The topics, which are covered in the induction programmes are given in the following table:
Organizational Issues
 History of employer  Product line or services provided
 Organization of employer  Overview of production process
 Names & titles of key executives  Company policies & rules
 Employee’s title & department  Disciplinary regulations
 Layout of physical facilities  Employee handbook
 Probationary period  Safety procedure & enforcement
Employee Benefits
 Pay scales and pay days  Insurance benefits
 Vacations and holidays  Retirement programme
 Rest breaks  Employer-provided services to
employees  Training & education benefits
 Counseling  Rehabilitation programmes
Introduction
 To supervisor  To co-workers
 To trainers  To employee counselor
Job Duties
 Job location  Overview of job
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 Job tasks  Job objectives
 Job safety requirements  Relationship to other jobs


3.8 Placement
After orientation comes placement. Placement refers to the assignment of a new employee to his
or her job. The jobs of HR are simple where the job is independent, but where the jobs are
sequential or pooled, HR specialists use assessment classification model for placing newly hired
employees. For example the job of placing a waiter to its position is quite simpler as compared
with that of the placing the employee at managerial level. The job of placing a waiter to its
position is called an independent job but the job of placing employee at managerial level can be
considered as sequential or pooled job.

3.9 TRAINING AND DEVELOPMENT

Training and development activities are designed in order to impart specific skills,
abilities and knowledge to employees.
Effective training is basic ingredient of success in the hospitality industry. The concept of
training is endorsed my most managers in the hospitalityindustry, yet managers often give little
thought to the training function in the context of their own business or departmental
responsibilities until something goes wrong! One of the main problems in hotel industry is that
investment in training and development of employees is a reactive process for many companies.
Frequently, training and development arises as the result of significant change in the operational
environment or as a consequent of crisis such as staff turnover or major departmental problems.
Training is then used to cope with the immediate difficulty. This process may be proved costly to
hotel. Whereas development refers to learning opportunities designed to help employees grow
and evolve a vision about the future.
FIGURE 6: Johar Journal,2012
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Here the job of HR is to identify the training need and then accordingly to design the
suitable programme for that. Training within a hotel provides the best opportunity to influence
the attitude and performance of employees. The training programmes include is such as
introduction, fire, food hygiene, control of substances hazardous to health, manual handling first-
aid, technical skills, product knowledge, and customer service.
Like in-house off-the-job training, external off-the-job training can also take a variety of forms.
Such training may be tailored to the company‘s specific need or it may be offered on a more
general basis; it may focus on special disciplines related to hospitality.
Independent off-the-job training refers to training methods that are controlled and managed by
the learner. A number of these training options which are becoming increasingly important to
employees in the hospitality industry are:
≈ Distance/open learning or training (may involve correspondence teaching, use of
television or radio, video-conferencing, etc.)
≈ Computer-assisted learning
≈ Interactive-video learning
≈ A combination of the above method





Marriott Trains

Bill Marriott is a firm believer in the value of training front-line people, and in the impact the
front-line has on the bottom-line. There are over 140000 employees in the various Marriott hotel
and food service enterprises, which he describe simply as a ―people business‖. As Marriott says:
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We are in the people business, from waiters to maids to truck drivers, our employees must be
able to get along pleasantly with others all day long.
He adds that, by one estimate, company employees make 6 million customer contacts per day, 6
million moments of truth.
In the Marriott Company that important customer interface isn‘t left to chance. In 1984 Marriott
spend more than $20 million on training. To reinforce the effects of training, every employee
gets the regular performance review and participates in a generous profit- sharing plan.


3.10 PERFORMANCE APPRAISAL
Performance appraisal refers to the assessment of an employee‘s actual performance, behaviour
on jobs, and his or her potential for future performance. It is done generally for the purpose of
assessing training needs to employee, to effect his promotions and to give him pay increase,
retention or termination.
Though there are different methods of performance appraisal only one method that is commonly
used in this industry is Rating Scale Method. In most of the hotels the performance appraisal is
done on yearly basis. The rating scales method is used by the way of Questionnaire (1-10).

3.10.1 Challenges of Performance Appraisal
 Create a culture of excellence that inspires every employee to improve or lend himself or
herself to be assessed.
 Align organizational objectives to individual aspirations.
 Clear growth paths for talented individuals.
 Provide new challenges to rejuvenate careers that have reached the plateau stage.
 Forge a partnership with people for managing their careers.
 Empower employees to make decisions without the fear of failing.
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 Embed teamwork in all operational processes.
 Debureaucratise the organization structure for ease of flow of information.

3.11 JOB EVALUATION

Job evaluation refers to the process of determining the relative worth of each job for purpose of
establishing satisfactory wage and salary differentials. Jobs are evaluated on the basis of their
content and are placed in the order of their importance. In a job evaluation programme, the jobs
are ranked and not the job holders.

3.11.1 Methods of Job Evaluation












Job Evaluation
Analytical Non-Analytical
Point-
Ranking
Method
Factor
Comparison
Method
Ranking
Method
Job-
Grading
Method
FIGURE 7: Johar Journal,2012
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Though there are different types of methods available but the most common method practiced in
this industry is analytical method and in analytical method point ranking methods is the most
appropriate one.

3.12 EMPLOYEE RELATIONS
As the name suggest it is all about maintaining relationship with the employee. It includes all
terms that are concerned with the employee like employee remuneration, incentives payments,
employee benefits and services, employee welfare, safety and health issue, trade unions etc. Here
it‘s where the HR manager communicates with employee about their problems, suggestion and
so on. All these steps are followed in order to retain best employee.

3.12.1 Employee Remuneration
In most of the hotels, the human resource department plays a crucial role in determining the
remuneration policy of employees. For this they take into consideration all external as well as the
internal factors. By this they have to deal with external factors like labour market, going rate,
cost of living, labour unions, labour laws, society and the economy as well as internal factors like
company‘s ability to pay, job evaluation and performance appraisal and the worker himself or
herself. In this industry both financial as well as non-financial methods of remuneration are
followed.

3.12.2 Employee Benefits and Services
The HRD has a major role in the development and management of benefits programs. These
benefits are designed by HRD in order to suit the requirement of employee. And further, they are
sent to the top management for approval. Thereafter they are implemented. These benefits, which
are given to the employee, are both financial as well as non-financial.
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Some of the benefits and services, which are practiced in the hospitality industry are as follows:
 Legally required payments
 Old age, survivors, disability and health insurance
 Worker‘s compensation
 Unemployment compensation
 Contingent and deferred benefits
 Pension plans
 Group life insurance
 Sick leave
 Maternity leave
 Payments for time not worked
 Vacations
 Holidays
 Voting pay allowances


3.12.3 Employee Welfare
Labour welfare refers to taking care of the well being of workers by employers, trade unions, and
government and non-government agencies. Recognizing the unique place of the worker in the
society and doing good for him/her retaining and motivating employees, minimizing social evils,
and building up the local reputation of the hotel are the arguments in favour of employee
welfare. Hence this area has generated one more area for practicing of HR roles.

3.12.4 Safety and Health Issue
Since the hospitality industry, is the service industry, hence the safety and health aspects of
employee is concern for the organization, as employee are assets of service industry. The whole
and soul responsibility of employee health and safety measures lie on the shoulder of HR
department. Hence such types of measures reduce the chances of accidents.
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3.13 FUTURE ROLE OF HUMAN RESOURCE IN HOSPITALITY INDUSTRY
Service quality and productivity were the most crucial competitive issues facing these firms.
When asked to different hotels regarding strengthening competitiveness, 50 percent choose
internal management actions, including educating and training employees, with publicly
announcing employee policy. And all these procedure of implementing such task is over HR
shoulder.
To achieve a progressive, innovative culture within organization- and to cope with the critical
challenges that the future might bring- human resources professionals are likely to assume
certain roles with greater frequency. These roles are following:
 The Consultant Advisor Role:- In particular, the top human resources executive will
increasingly play a major role in advising the CEO and the top management team about the
human resources implications of broad organizational strategy, both nationally and globally.
Further, the human resources department will be called upon more and more advice
management at all levels about the motivational, morale and legal implications of various
present and proposed practices and policies.
 The Catalyst Facilitator Role:- The human resources directors have a unique opportunity to
serve in a catalyst-facilitator role in stimulating a top management philosophy, leadership
style and organizational culture and climate. It is important that management develops a clear
view of these interrelated matters and that management is self-conscious about them on an
ongoing basis. In addition, the human resources director can serve as a resource person about
these concepts and their links to organizational outcomes such as effectiveness, efficiency,
development and participant satisfaction.
 The Diagnostic Role:- By this, they are expected to identify the underlying causes of an
organizational problem as distinct from its symptoms and to come up with solutions – or
system for solving the problem- that correspond with the diagnosis. All too often, programs
of various kinds, like job enrichment, incentives systems, quality circles and so on, are
proposed by managers or human resources people. what is usually needed is an accurate
description of the problem to be solved, a careful analysis of the dynamics of that problem,
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and a close look at alternative solutions and their rectifications before a program are
implemented.
 The Assessment Role:- One of the most difficult roles for human resources professionals is
the assessment role, in which they assess the effectiveness of various human resources
practices and policies. A comprehensive evaluation of the effectiveness of various human
resources policies and practices is called a human resources management audit or personnel
audit. These comprehensive human resources audit may be used to analyze a wide array of
human resources practices and outcomes.






Hyatt’s Human Resource Strategy: Focus 2000

Hyatt has an ambitious plan to find, train, and keep quality employees during the next 10 years -
Focus 2000. Recruitment, training, recognition, retention, communications, volunteerism and
community involvement are important components of the plan. One priority of focus 2000 is
keeping tabs of management and line employees. The Hyatt Management Manpower Inventory
is a program to keep track of the locations, performance and wage scales of more than 8000
management-level employees in the company. The information, which is compiled on computer
at each hotel and sent to corporate offices, includes the employees‘ levels of interest in
promotion, geographic preferences and the availability of other employees to fill their slots if
they are promoted. One another program provides more statistical indicators of a property‘s
success and helps the corporate and regional staffs identify potential personnel problem areas.
The strongest component of the focus 2000 program is employee communications. The chain has
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always had clear, meaningful two-way lines of communication. Morgan, corporate director of
employee relations, discusses Hyatt‘s commitment to employee communications. ―We try to
share with employees as much information as possible about the company and how it‘s
performing. Our approach is always to be honest and instill in them a sense of ownership in the
company. Then if the company or an individual hotel has a problem, sales are down, for
example, we can openly discuss the impact of the situation and what we can do together to solve
it.‖






















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INTRODUCTION
Hyatt Hotels Corporation, is an American international company and operator of hotels. The
Hyatt Corporation was born upon purchase of the Hyatt House, at Los Angeles International
Airport on January 1, 1957. Thay are a global hospitality company with widely recognized,
industry leading brands and a tradition of innovation developed over our more than fifty-year
history. Their mission is to provide authentic hospitality by making a difference in the lives of
the people we touch every day. They focus on this mission in pursuit of our goal of becoming
the most preferred brand in each segment that we serve for our associates, guests, and owners.
They support our mission and goal by adhering to a set of core values that characterizes our
culture.

They manage, franchise, own and develop Hyatt branded hotels, resorts and residential and
vacation ownership properties around the world. As of June 30, 2012, the company's worldwide
portfolio consisted of 492 properties.
HR POLICIES
Employee Rewards
Hyatt believes in its employees in celebrating success and in highlighting accomplishments!
Employees take pride in being part of such a collaborative environment. As an employee of the
Hyatt team, not only will receive outstanding rewards and recognition, but also be a part of a
family-friendly atmosphere consistently labeled with "great camaraderie". Employee feel a
tremendous sense of pride when recognized for contributions to exceptional guest experiences.
Hyatt is equally committed to ensuring that employees, their family or domestic partner stay
healthy, take advantage of opportunities, plan for the future and take time to enjoy life. As
healthy and happy people, Hyatt employees are committed to working in collaborative
environment. Hyatt's worldwide recognition and rewards programs will vary depending on the
country.
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Safety to employees
Quality health and welfare care for employees and their family or domestic partner is top
priority. Hyatt‘s medical, dental, vision and prescription drug coverage is designed to give
employees and their families the opportunity to obtain comprehensive and quality health care
services at reasonable costs utilizing a large network of medical professionals.
Combined with unique discounts for alternative health options and fitness services, Hyatt
employees take advantage of the special programs offered like the Moms-to-Babies and the
Healthy Outlook Programs. Hyatt puts their employees in control of their benefits by providing
easy-to-use tools to help manage them effectively and by offering a range of benefits to best
meet their needs.
When the need arises, Hyatt's leave policies, allow ample time off for personal, medical, new
child, military or to care for a family member. Successfully being able to cope with life's
everyday challenges equates to a healthy and productive work environment. The Life Balance
assistance program Hyatt offers has proven to act as a strong source of reference and is available
anytime.
Planning for the future
Hyatt employees have the opportunity to build their future through a retirement savings plan and
most importantly to take advantage of the company match. Employees with children have found
the company 529 plan attractive as everyone wants to give their children opportunity for a
college education.
Because Hyatt recognizes the need to keep employees skills current to stay on top, an
educational reimbursement program provides continued learning for associates. Hyatt
employees are encouraged to continue their career growth, if not by completing a college course
or obtaining professional certification, then by taking advantage of the internal Hyatt training
curriculum.
The Hyatt Life Insurance Program is intended to provide employees and their beneficiaries
additional financial support should a death occur while actively employed by Hyatt.
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Balanced Role
Hyatt recognizes the importance of enjoying life and encourages all employees to focus on
balancing work and personal life. This keeps employees fresh and better equipped to handle day
to day service interactions.
Paid time off is earned by all Hyatt employees and encourages time away from work for vacation
and holidays or to be used at a time of illness. Time away promotes better health and creativity.
During time off, Hyatt employees may be eligible to enjoy complimentary or discounted Hyatt
room nights; by far the most popular reward of working for Hyatt.There are many perks to
working for a large company, as Hyatt has formed many corporate partnerships that allow
employee purchasing discounts. Employees enjoy a number of discounts to include computer,
mobile, recreational, home goods, clothing, dry cleaning, and memberships.
Positive Recognition With Hyatt
The hospitality industry is naturally filled with a wide range of occupations. Upwards to 80% of
employees have taken advantage of promotion opportunities with Hyatt and this is one of the
primary reasons Hyatt culture speaks of ethics and integrity. Though partially employee driven,
it is always look within first to identify and develop the next level of leadership.
The culture of integrity promotes pride in work environment. Their number one applicant source
is Employee Referral Program and good company brands speak for themselves.







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INTRODUCTION
Marriott Hotels & Resorts is Marriott International's flagship brand of full-
service hotels and resorts. The company, based in Washington D.C., is repeatedly included on
the Forbes Best Companies to Work for list, and was voted the 4th best company to work for in
the UK by The Times in 2009.
As of August 2012, there were 502 hotels and resorts operating under the brand. The loyalty
program is called Marriott Rewards.
HR POLICIES
Employee Rewards
Marriott offers competitive compensation and benefits for all associates. Depending on job role
and location, Marriott associates receive:
 Competitive benefit packages (which may vary by country according to employment laws and
practices)
 Hotel room discounts at our locations around the globe
 Discounts on food and beverages, as well as retail discounts in our gift shops, at Marriott
hotels around the globe
 Competitive pay and advancement opportunities
In the ordinary course of business, compensation and benefits programs evolve as business needs
and laws change. Therefore, the benefits outlined here may be subject to change.
Safety to Employees
Marriott's Award-Winning Program Puts Employees' Safety First
“As one of the world's largest hotel brands, Marriott International employs approximately
110,000 associates in its 700 managed U.S. hotels. With a large staff and significant safety
challenges, Marriott has developed a sophisticated and innovative workers' compensation
program, recognized by the 2007 Theodore Roosevelt Workers' Compensation Award
committee as one of the best programs in the country.
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The objectives of Marriott's workers' compensation program are simple: promptly respond to
workplace injuries with quality medical care and return associates to work as quickly and
safely as possible—all while controlling costs. The program has an impressive track record of
success—over the past five years, its claims frequency has dropped by 15 percent, and claims
costs also decreased by 15 percent.

HUMAN CAPITAL CONCEPTS: MARRIOT STRIVES TO PUT EMPLOYEES
SAFETY FIRST
CEO J.W. Marriott said his parents taught him to put associates first: "If the employees are
well taken care of, they'll take care of the customer and the customer will come back."
Marriott strives to maintain safe work conditions, and when someone is injured, to initiate a
prompt and appropriate response.
"There are two key factors to creating a safe work environment. "First, safety designers
analyze and design hotels with safety and security in mind. Second, they offer extensive Job
Safety Analysis training and tools to bring about safe employee behavior. In informal surveys,
an overwhelming majority of associates said they discuss safety during staff meetings … this
has made a significant impact."
A key indication of Marriott's success is that after an intensive six-month evaluation by
the American National Standards Institute (ANSI Z10), its safety standards and program
earned the prestigious World-Class Safety Award‖..

Planning for the future
Marriot culture encourages long-term growth and development. For many of associates, working
at Marriott is a life-changing journey that allows increasing levels of responsibility,
accountability and leadership. Here are some great reasons to make a career at Marriott:
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 Marriot is a global business with many brands and locations, and many of associates create
lifelong, constantly evolving careers within the Marriott family.
 They promote from within; thousands of managers began their Marriott careers in entry-level
positions.
 Marriot associates have access to services that support their physical and emotional well-being
throughout their Marriott careers.
 Marriott associates average 78 hours of training and 34 hours of professional development
each year.
 All Marriott associates are encouraged to gain experience in a variety of disciplines to fully
understand the hospitality business and continue to expand their career options.

Balanced Role
Apart from providing a competitive pay package, Marriott strived to give its employees a good
work life. The company gave equal importance to non-monetary factors such as work-life
balance, good leadership, better growth opportunities, a friendly work environment and training.

Employees stayed longer with Marriott as they were happy with these non-monetary factors and
thought them more important.

Marriott's culture and guiding principles had a significant influence on the company's HR
practices including manpower planning, recruitment and selection; training and development,
employee retention and welfare initiatives and grievance redress.
Positive Recognition With Marriot
Marriott recognize employees for their commitment to delivering exceptional guest
experiences and their passion for our business, including recognition of:
 Associates who demonstrate outstanding commitment to guests and the success of their
location or hotel
 Managers who demonstrate exceptional leadership
 Associates who demonstrate commitment to local communities
 Associates who provide referrals for new employees
 Years of service, at five-year intervals
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 Associates with 25 years of service (rewarded with free weekend stays at Marriott hotels
around the world)
Manpower Planning, Recruitment and Selection

Marriott attached a lot of importance to manpower planning. It started right from entry level and
went through to higher positions. Every unit of Marriott (division or department) prepared its
expansion plans over the next couple of years, and, in the process, decided on the number of
entry level and managerial employees required for the expansion.

Details on the number of new units planned in the given time frame (two to five years), a rough
picture of the likely organization structure, the time required to develop employees who could
take managerial positions, current availability of employees within Marriott and the necessity to
recruit externally - all these were determined during the planning process.
Training and Development
Once the right candidates were recruited, it was important to get them accustomed to the
company's unique work environment. Training and development played a key role here. These
programs varied between frontline employees and managerial personnel. Over time, training
programs evolved from classroom- based teaching to interactive multimedia training. Fresh
recruits went through an eight-hour initial training session, during which they were given an
overview of Marriott and their individual roles.
A unique feature was that senior hotel employees served lunch at the first session. During the
three- month training period which followed, a mentor, addressed as 'buddy' was allotted to each
recruit. The mentor guided the trainee. All trainees attended refresher sessions after the first and
second months. On the final day of training, recruits enjoyed a sumptuous feast at a Marriott
hotel.


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Research Methodology
MEANING OF RESEARCH
Research in common parlance refers to a search for knowledge. Once can also define research
asa scientific and systematic search for pertinent information on a specific topic. In fact, research
is an art of scientific investigation. The Advanced Learner‘s Dictionary of Current English lays
down the meaning of research as ―a careful investigation or inquiry specially through search for
new facts inany branch of knowledge.‖1 Redman and Mory define research as a ―systematized
effort to gain new knowledge.‖2 Some people consider research as a movement, a movement
from the known to the unknown. It is actually a voyage of discovery. We all possess the vital
instinct of inquisitiveness for, when the unknown confronts us, we wonder and our
inquisitiveness makes us probe and attain full and fuller understanding of the unknown. This
inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining
the knowledge of whatever the unknown, can betermed as research.
Research is an academic activity and as such the term should be used in a technical
sense.According to Clifford Woody research comprises defining and redefining problems,
formulatinghypothesis or suggested solutions; collecting, organising and evaluating data; making
deductions and reaching conclusions; and at last carefully testing the conclusions to determine
whether they fit the formulating hypothesis. D. Slesinger and M. Stephenson in the
Encyclopaedia of Social Sciences define research as ―the manipulation of things, concepts or
symbols for the purpose of generalising to extend, correct or verify knowledge, whether that
knowledge aids in construction of theory or in the practice of an art.‖3 Research is, thus, an
original contribution to the existing stock of knowledge making for its advancement. It is the
persuit of truth with the help of study, observation, comparison and experiment. In short, the
search for knowledge through objective and systematic method of finding solution to a problem
is research. The systematic approach concerning generalisation and the formulation of a theory is
also research. As such the term ‗research‘ refers to the systematic method consisting of
enunciating the problem, formulating a hypothesis, collecting the facts or data, analysingthe facts
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and reaching certain conclusions either in the form of solutions(s) towards the concerned
problem or in certain generalisations for some theoretical formulation.
OBJECTIVES OF RESEARCH
The purpose of research is to discover answers to questions through the application of
scientificprocedures. The main aim of research is to find out the truth which is hidden and which
has not been discovered as yet. Though each research study has its own specific purpose, we may
think ofresearch objectives as falling into a number of following broad groupings:
1. To gain familiarity with a phenomenon or to achieve new insights into it (studies with
thisobject in view are termed as exploratory or formulative research studies);
2. To portray accurately the characteristics of a particular individual, situation or a group(studies
with this object in view are known as descriptive research studies);
3. To determine the frequency with which something occurs or with which it is associated with
something else (studies with this object in view are known as diagnostic researchstudies);
4. To test a hypothesis of a causal relationship between variables (such studies are known as
hypothesis-testing research studies).
TYPES OF RESEARCH
The basic types of research are as follows:
(i) Descriptive vs. Analytical :Descriptive research includes surveys and fact-finding enquiries of
different kinds. The major purpose of descriptive research is description of the state of affairs as
it exists at present. In social science and business research we quite often use the term Ex post
facto research for descriptive research studies. The main characteristic of this method is that the
researcher has no control over the variables; he can only report what has happened or what is
happening. Most ex post facto research projects are used for descriptive studies in which the
researcher seeks to measure such items as, for example ,frequency of shopping, preferences of
people, or similar data. Ex post facto studies also include attempts by researchers to discover
causes even when they cannot control the variables. The methods of research utilized in
descriptive research are survey methods of all kinds, including comparative and correlation
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methods. In analytical research, on the other hand, the researcher has to use facts or information
already available, and analyze these to make a critical evaluation of the material.
(ii) Applied vs. Fundamental: Research can either be applied (or action) research or fundamental
(to basic or pure) research. Applied research aims at finding a solution for an immediate problem
facing a society or an industrial/business organization, whereas fundamental research is mainly
concerned with generalizations and with the formulation of a theory.―Gathering knowledge for
knowledge‘s sake is termed ‗pure‘ or ‗basic‘ research.‖ Research concerning some natural
phenomenon or relating to pure mathematics are examples of fundamental research. Similarly,
research studies, concerning human behaviour carried on with a view to make generalisations
about human behaviour, are also examples of fundamental research, but research aimed at certain
conclusions (say, a solution) facing a concrete social or business problem is an example of
applied research. Research to identify social, economic or political trends that may affect a
particular institution or the copy research (research to find out whether certain communications
will be read and understood) or the marketing research or evaluation research are examples of
applied research. Thus, the central aim of applied research is to discover a solution for some
pressing practical problem, whereas basic research is directed towards finding information that
has a broad base of applications and thus, adds to the already existing organized body of
scientific knowledge.
(iii) Quantitative vs. Qualitative: Quantitative research is based on the measurement of quantity
or amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative
research, on the other hand, is concerned with qualitative phenomenon, i.e., phenomena relating
to or involving quality or kind. For instance, when we are interested in investigating the reasons
for human behaviour (i.e., why people think or do certain things), we quite often talk of
‗Motivation Research‘, an important type of qualitative research. This type of research aims at
discovering the underlying motives and desires, using in depth interviews for the purpose. Other
techniques of such research are word association tests, sentence completion tests, story
completion tests and similar other projective techniques. Attitude or opinion research i.e.,
research designed to find out how people feel or what they think about a particular subject or
institution is also qualitative research. Qualitative research is especially important in the
behavioral sciences where the aim is to discover the underlying motives of human behavior.
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Through such research we can analyse the various factors which motivate people to behave in a
particular manner or which make people like or dislike a particular thing. It may be stated,
however, that to apply qualitative research in practice is relatively a difficult job and therefore,
while doing such research, one should seek guidance from experimental psychologists.
(iv) Conceptual vs. Empirical: Conceptual research is that related to some abstract idea(s) or
theory. It is generally used by philosophers and thinkers to develop new concepts or to
reinterpret existing ones. On the other hand, empirical research relies on experience or
observation alone, often without due regard for system and theory. It is data-based research,
coming up with conclusions which are capable of being verified by observation or experiment.
We can also call it as experimental type of research. In such a research it is necessary to get at
facts firsthand, at their source, and actively to go about doing certain things to stimulate the
production of desired information. In such a research, the researcher must first provide himself
with a working hypothesis or guess as to the probable results. He then works to get enough facts
(data) to prove or disprove his hypothesis. He then sets up experimental designs which he thinks
will manipulate the persons or the materials concerned so as to bring forth the desired
information. Such research is thus characterized by the experimenter‘s control over the variables
under study and his deliberate manipulation of one of them to study its effects. Empirical
research is appropriate when proof is sought that certain variables affect other variables in some
way. Evidence gathered through experiments or empirical studies is today considered to be the
most powerful support possible for a given hypothesis.
(v) Some Other Types of Research: All other types of research are variations of one or more of
the above stated approaches, based on either the purpose of research, or the time required to
accomplish research, on the environment in which research is done, or on the basis of some other
similar factor. Form the point of view of time, we can think of research either as one-time
research or longitudinal research. In the former case the research is confined to a single time-
period, whereas in the latter case the research is carried on over several time-periods. Research
can be field-setting research or laboratory research or simulation research, depending upon the
environment in which it is to be carried out.
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Research can as well be understood as clinical or diagnostic research. Such research follows
case-study methods or indepth approaches to reach the basic causal relations. Such studies
usually go deep into the causes of things or events that interest us, using very small samples and
very deep probing data gathering devices. The research may be exploratory or it may be
formalized. The objective of exploratory research is the development of hypotheses rather than
their testing, whereas formalized research studies are those with substantial structure and with
specific hypotheses to be tested. Historical research is that which utilizes historical sources like
documents, remains, etc. to study events or ideas of the past, including the philosophy of persons
and groups at any remote point of time. Research can also be classified as conclusion-oriented
and decision-oriented. While doing conclusion oriented research, a researcher is free to pick up a
problem, redesign the enquiry as he proceeds and is prepared to conceptualize as he wishes.
Decision-oriented research is always for the need of a decision maker and the researcher in this
case is not free to embark upon research according to his own inclination. Operations research is
an example of decision oriented research since it is a scientific method of providing executive
departments with a quantitative basis for decisions regarding operations under their control.
Significance of Research
―All progress is born of inquiry. Doubt is often better than overconfidence, for it leads to inquiry,
and inquiry leads to invention‖ is a famous Hudson Maxim in context of which the significance
of research can well be understood. Increased amounts of research make progress possible.
Research inculcates scientific and inductive thinking and it promotes the development of logical
habits of thinking and organisation. The role of research in several fields of applied economics,
whether related to business or to the economy as a whole, has greatly increased in modern times.
The increasingly complex nature of business and government has focused attention on the use of
research in solving operational problems. Research, as an aid to economic policy, has gained
added importance, both for government and business. Research provides the basis for nearly all
government policies in our economic system. For instance, government‘s budgets rest in part on
an analysis of the needs and desires of the people and on the availability of revenues to meet
these needs. The cost of needs has to be equated to probable revenues and this is a field where
research is most needed. Through research we can devise alternative policies and can as well
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examine the consequences of each of these alternatives. Decision-making may not be a part of
research, but research certainly facilitates the decisions of the policy maker.
Government has also to chalk out programmes for dealing with all facets of the country‘s
existence and most of these will be related directly or indirectly to economic conditions. The
plight of cultivators, the problems of big and small business and industry, working conditions,
trade union activities, the problems of distribution, even the size and nature of defence services
are matters requiring research. Thus, research is considered necessary with regard to the
allocation of nation‘s resources. Another area in government, where research is necessary, is
collecting information on the economic and social structure of the nation. Such information
indicates what is happening in the economy and what changes are taking place. Collecting such
statistical information is by no means a routine task, but it involves a variety of research
problems. These day nearly all governments maintain large staff of research technicians or
experts to carry on this work. Thus, in the context of government, research as a tool to economic
policy has three distinct phases of operation, viz.
(i) investigation of economic structure through continual compilation of facts;
(ii) diagnosis of events that are taking place and the analysis of the forces underlying them;
and
(iii) the prognosis, i.e., the prediction of future developments.
Research has its special significance in solving various operational and planning problems of
business and industry. Operations research and market research, along with motivational
research, are considered crucial and their results assist, in more than one way, in taking business
decisions.
Market research is the investigation of the structure and development of a market for the purpose
of formulating efficient policies for purchasing, production and sales. Operations research refers
to the application of mathematical, logical and analytical techniques to the solution of business
problems of cost minimisation or of profit maximisation or what can be termed as optimisation
problems. Motivational research of determining why people behave as they do is mainly
concerned with market characteristics. In other words, it is concerned with the determination of
motivations underlying the consumer (market) behaviour. All these are of great help to people in
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business and industry who are responsible for taking business decisions. Research with regard to
demand and market factors has great utility in business. Given knowledge of future demand, it is
generally not difficult for a firm, or for an industry to adjust its supply schedule within the limits
of its projected capacity. Market analysis has become an integral tool of business policy these
days. Business budgeting, which ultimately results in a projected profit and loss account, is based
mainly on sales estimates which in turn depends on business research. Once sales forecasting is
done, efficient production and investment programmes can be set up around which are grouped
the purchasing and financing plans. Research, thus, replaces intuitive business decisions by more
logical and scientific decisions.
Research is equally important for social scientists in studying social relationships and in seeking
answers to various social problems. It provides the intellectual satisfaction of knowing a few
things just for the sake of knowledge and also has practical utility for the social scientist to know
for the sake of being able to do something better or in a more efficient manner. Research in
social sciences is concerned both with knowledge for its own sake and with knowledge for what
it can contribute to practical concerns. ―This double emphasis is perhaps especially appropriate
in the case of social science. On the one hand, its responsibility as a science is to develop a body
of principles that make possible the understanding and prediction of the whole range of human
interactions. On the other hand, because of its social orientation, it is increasingly being looked
to for practical guidance in solving immediate problems of human relations In addition to what
has been stated above, the significance of research can also be understood keeping in view the
following points:
(a) To those students who are to write a master‘s or Ph.D. thesis, research may mean a careerism
or a way to attain a high position in the social structure;
(b) To professionals in research methodology, research may mean a source of livelihood;
(c) To philosophers and thinkers, research may mean the outlet for new ideas and insights;
(d) To literary men and women, research may mean the development of new styles and creative
work;
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(e) To analysts and intellectuals, research may mean the generalisations of new theories. Thus,
research is the fountain of knowledge for the sake of knowledge and an important source of
providing guidelines for solving different business, governmental and social problems. It is a sort
of formal training which enables one to understand the new developments in one‘s field in a
better way.
Research Process
Before embarking on the details of research methodology and techniques, it seems appropriate to
present a brief overview of the research process. Research process consists of series of actions or
steps necessary to effectively carry out research and the desired sequencing of these steps. A
brief description of the above stated steps will be helpful.
1. Formulating the research problem: There are two types of research problems, viz., those
which relate to states of nature and those which relate to relationships between variables.
At the very outset the researcher must single out the problem he wants to study, i.e., he
must decide the general area of interest or aspect of a subject-matter that he would like to
inquire into. Initially the problem may be stated in a broad general way and then the
ambiguities, if any, relating to the problem be resolved. Then, the feasibility of a
particular solution has to be considered before a working formulation of the problem can
be set up. The formulation of a general topic into a specific research problem, thus,
constitutes the first step in a scientific enquiry. Essentially two steps are involved in
formulating the research problem, viz., understanding the problem thoroughly, and
rephrasing the same into meaningful terms from an analytical point of view.
The best way of understanding the problem is to discuss it with one‘s own colleagues or
with those having some expertise in the matter. In an academic institution the researcher
can seek the help from a guide who is usually an experienced man and has several
research problems in mind. Often, the guide puts forth the problem in general terms and it
is up to the researcher to narrow it down and phrase the problem in operational terms. In
private business units or in governmental organisations, the problem is usually
earmarked by the administrative agencies with whom the researcher can discuss as to
how the problem originally came about and what considerations are involved in its
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possible solutions. The researcher must at the same time examine all available literature
to get himself acquainted with the selected problem. He may review two types of
literature—the conceptual literature concerning the concepts and theories, and the
empirical literature consisting of studies made earlier which are similar to the one
proposed.
The basic outcome of this review will be the knowledge as to what data and other
materials are available for operational purposes which will enable the researcher to
specify his own research problem in a meaningful context. After this the researcher
rephrases the problem into analytical or operational terms i.e., to put the problem in as
specific terms as possible. This task of formulating, or defining, a research problem is a
step of greatest importance in the entire research process. The problem to be investigated
must be defined unambiguously for that will help discriminating relevant data from
irrelevant ones. Care must; however, be taken to verify the objectivity and validity of the
background facts concerning the problem. Professor W.A. Neiswanger correctly states
that the statement of the objective is of basic importance because it determines the data
which are to be collected, the characteristics of the data which are relevant, relations
which are to be explored, the choice of techniques to be used in these explorations and
the form of the final report. If there are certain pertinent terms, the same should be clearly
defined along with the task of formulating the problem. In fact, formulation of the
problem often follows a sequential pattern where a number of formulations are set up,
each formulation more specific than the preceeding one, each one phrased in more
analytical terms, and each more realistic in terms of the available data and resources.
2. Extensive literature survey: Once the problem is formulated, a brief summary of it should
be written down. It is compulsory for a research worker writing a thesis for a Ph.D.
degree to write a synopsis of the topic and submit it to the necessary Committee or the
Research Board for approval. At this juncture the researcher should undertake extensive
literature survey connected with the problem. For this purpose, the abstracting and
indexing journals and published or unpublished bibliographies are the first place to go to.
Academic journals, conference proceedings, government reports, books etc., must be
tapped depending on the nature of the problem. In this process, it should be remembered
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that one source will lead to another. The earlier studies, if any, which are similar to the
study in hand should be carefully studied. A good library will be a great help to the
researcher at this stage.

3. Development of working hypotheses: After extensive literature survey, researcher should
state in clear terms the working hypothesis or hypotheses. Working hypothesis is
tentative assumption made in order to draw out and test its logical or empirical
consequences. As such the manner in which research hypotheses are developed is
particularly important since they provide the focal point for research. They also affect the
manner in which tests must be conducted in the analysis of data and indirectly the quality
of data which is required for the analysis. In most types of research, the development of
working hypothesis plays an important role. Hypothesis should be very specific and
limited to the piece of research in hand because it has to be tested. The role of the
hypothesis is to guide the researcher by delimiting the area of research and to keep him
on the right track. It sharpens his thinking and focuses attention on the more important
facets of the problem. It also indicates the type of data required and the type of methods
of data analysis to be used. How does one go about developing working hypotheses? The
answer is by using the following approach:
(a) Discussions with colleagues and experts about the problem, its origin and the
objectives is seeking a solution;
(b) Examination of data and records, if available, concerning the problem for possible
trends, peculiarities and other clues;
(c) Review of similar studies in the area or of the studies on similar problems; and
(d) Exploratory personal investigation which involves original field interviews on a
limited scale with interested parties and individuals with a view to secure greater insight
into the practical aspects of the problem. Thus, working hypotheses arise as a result of a-
priori thinking about the subject, examination of the available data and material including
related studies and the counsel of experts and interested parties.
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Working hypotheses are more useful when stated in precise and clearly defined terms. It
ma as well be remembered that occasionally we may encounter a problem where we do
not need working hypotheses, specially in the case of exploratory or formulative
researches which do not aim at testing the hypothesis. But as a general rule, specification
of working hypotheses in another basic step of the research process in most research
problems.
4. Preparing the research design: The research problem having been formulated in clear cut
terms, the researcher will be required to prepare a research design, i.e., he will have to
state the conceptual structure within which research would be conducted. The preparation
of such a design facilitates research to be as efficient as possible yielding maximal
information. In other words, the function of research design is to provide for the
collection of relevant evidence with minimal expenditure of effort, time and money. But
how all these can be achieved depends mainly on the research purpose. Research
purposes may be grouped into four categories, viz., (i) Exploration, (ii) Description, (iii)
Diagnosis, and (iv) Experimentation.
A flexible research design which provides opportunity for considering many different
aspects of a problem is considered appropriate if the purpose of the research study is that
of exploration. But when the purpose happens to be an accurate description of a situation
or of an association between variables, the suitable design will be one that minimises bias
and maximises the reliability of the data collected and analysed. There are several
research designs, such as, experimental and non-experimental hypothesis testing.
Experimental designs can be either informal designs (such as before-and-after without
control, after-only with control, before-and-after with control) or formal designs (such as
completely randomized design, randomized block design, Latin square design, simple
and complex factorial designs), out of which the researcher must select one for his own
project. The preparation of the research design, appropriate for a particular research
problem, involves usually the consideration of the following:
(i) the means of obtaining the information;
(ii) the availability and skills of the researcher and his staff (if any)
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(iii) explanation of the way in which selected means of obtaining information will be
organized and the reasoning leading to the selection;
(iv) the time available for research; and the cost factor relating to research, i.e., the
finance available for the purpose.
5. Determining sample design: All the items under consideration in any field of inquiry
constitute a ‗universe‘ or ‗population‘. A complete enumeration of all the items in the
‗population‘ is known as a census inquiry. It can be presumed that in such an inquiry
when all the items are covered no element of chance is left and highest accuracy is
obtained. But in practice this may not be true. Even the slightest element of bias in such
an inquiry will get larger and larger as the number of observations increases. Moreover,
there is no way of checking the element of bias or its extent except through a resurvey or
use of sample checks. Besides, this type of inquiry involves a great deal of time, money
and energy. Not only this, census inquiry is not possible in practice under many
circumstances. For instance, blood testing is done only on sample basis. Hence, quite
often we select only a few items from the universe for our study purposes. The items so
selected constitute what is technically called a sample.

The researcher must decide the way of selecting a sample or what is popularly known as
the sample design. In other words, a sample design is a definite plan determined before
any data are actually collected for obtaining a sample from a given population. Thus, the
plan to select 12 of a city‘s 200 drugstores in a certain way constitutes a sample design.
Samples can be either probability samples or non-probability samples. With probability
samples each element has a known probability of being included in the sample but the
non-probability samples do not allow the researcher to determine this probability.
Probability samples are those based on simple random sampling, systematic sampling,
stratified sampling, cluster/area sampling whereas non-probability samples are those
based on convenience sampling, judgement sampling and quota sampling techniques. A
brief mention of the important sample designs is as follows:
(i) Deliberate sampling: Deliberate sampling is also known as purposive or non-
probability sampling. This sampling method involves purposive or deliberate selection of
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particular units of the universe for constituting a sample which represents the universe.
When population elements are selected for inclusion in the sample based on the ease of
access, it can be called convenience sampling. If a researcher wishes to secure data from,
say, gasoline buyers, he may select a fixed number of petrol stations and may conduct
interviews at these stations. This would be an example of convenience sample of gasoline
buyers. At times such a procedure may give very biased results particularly when the
population is not homogeneous. On the other hand, in judgement sampling the
researcher‘s judgement is used for selecting items which he considers as representative of
the population. For example, a judgement sample of college students might be taken to
secure reactions to a new method of teaching. Judgement sampling is used quite
frequently in qualitative research where the desire happens to be to develop hypotheses
rather than to generalise to larger populations.
(ii) Simple random sampling: This type of sampling is also known as chance sampling or
probability sampling where each and every item in the population has an equal chance of
inclusion in the sample and each one of the possible samples, in case of finite universe,
has the same probability of being selected. For example, if we have to select a sample of
300 items from a universe of 15,000 items, then we can put the names or numbers of all
the 15,000 items on slips of paper and conduct a lottery. Using the random number tables
is another method of random sampling. To select the sample, each item is assigned a
number from 1 to 15,000. Then, 300 five digit random numbers are selected from the
table. To do this we select some random starting point and then a systematic pattern is
used in proceeding through the table. We might start in the 4th row, second column and
proceed down the column to the bottom of the table and then move to the top of the next
column to the right.
When a number exceeds the limit of the numbers in the frame, in our case over 15,000, it
is simply passed over and the next number selected that does fall within the relevant
range. Since the numbers were placed in the table in a completely random fashion, the
resulting sample is random. This procedure gives each item an equal probability of being
selected. In case of infinite population, the selection of each item in a random sample is
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controlled by the same probability and that successive selections are independent of one
another.
(iii) Systematic sampling: In some instances the most practical way of sampling is to
select every 15th name on a list, every 10th house on one side of a street and so on.
Sampling of this type is known as systematic sampling. An element of randomness is
usually introduced into this kind of sampling by using random numbers to pick up the
unit with which to start. This procedure is useful when sampling frame is available in the
form of a list. In such a design the selection process starts by picking some random point
in the list and then every nth element is selected until the desired number is secured. (iv)
Stratified sampling: If the population from which a sample is to be drawn does not
constitute a homogeneous group, then stratified sampling technique is applied so as to
obtain a representative sample. In this technique, the population is stratified into a
number of non overlapping subpopulations or strata and sample items are selected from
each stratum. If the items selected from each stratum is based on simple random sampling
the entire procedure, first stratification and then simple random sampling, is known as
stratified random sampling.
(v) Quota sampling: In stratified sampling the cost of taking random samples from
individual strata is often so expensive that interviewers are simply given quota to be filled
from different strata, the actual selection of items for sample being left to the
interviewer‘s judgement. This is called quota sampling. The size of the quota for each
stratum is generally proportionate to the size of that stratum in the population. Quota
sampling is thus an importantform of non-probability sampling. Quota samples generally
happen to be judgement samplesrather than random samples.
(vi) Cluster sampling and area sampling: Cluster sampling involves grouping the
population and then selecting the groups or the clusters rather than individual elements
for inclusion in the sample. Suppose some departmental store wishes to sample its credit
card holders have issued its cards to 15,000 customers. The sample size is to be kept say
450. For cluster sampling this list of 15,000 card holders could be formed into 100
clusters of 150 card holders each. Three clusters might then be selected for the sample
randomly. The sample size must often be larger than the simple random sample to ensure
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the same level of accuracy because is cluster sampling procedural potential for order bias
and other sources of error is usually accentuated. The clustering approach can, however,
make the sampling procedure relatively easier and increase the efficiency of field work,
specially in the case of personal interviews. Area sampling is quite close to cluster
sampling and is often talked about when the total geographical area of interest happens to
be big one. Under area sampling we first divide the total area into a number of smaller
non-overlapping areas, generally called geographical clusters, then a number of these
smaller areas are randomly selected, and all units in these small areas are included in the
sample. Area sampling is specially helpful where we do not have the list of the
population concerned. It also makes the field interviewing more efficient since
interviewer can do many interviews at each location.
(vii)Multi-stage sampling: This is a further development of the idea of cluster sampling.
This technique is meant for big inquiries extending to a considerably large geographical
area like an entire country. Under multi-stage sampling the first stage may be to select
large primary sampling units such as states, then districts, then towns and finally certain
families within towns. If the technique of random-sampling is applied at all stages, the
sampling procedure is described as multi-stage random sampling.
(viii) Sequential sampling: This is somewhat a complex sample design where the ultimate
size of the sample is not fixed in advance but is determined according to mathematical
decisions on the basis of information yielded as survey progresses. This design is usually
adopted under acceptance sampling plan in the context of statistical quality control. In
practice, several of the methods of sampling described above may well be used in the
same. study in which case it can be called mixed sampling. It may be pointed out here
that normally one should resort to random sampling so that bias can be eliminated and
sampling error can be estimated.But purposive sampling is considered desirable when the
universe happens to be small and a known characteristic of it is to be studied intensively.
Also, there are conditions under which sample designs other than random sampling may
be considered better for reasons like convenience and low costs. The sample design to be
used must be decided by the researcher taking into consideration the nature of the inquiry
and other related factors.
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6. Collecting the data: In dealing with any real life problem it is often found that data at
hand are inadequate, and hence, it becomes necessary to collect data that are appropriate.
There are several ways of collecting the appropriate data which differ considerably in
context of money costs, time and other resources at the disposal of the researcher.
Primary data can be collected either through experiment or through survey. If the
researcher conducts an experiment, he observes some quantitative measurements, or the
data, with the help of which he examines the truth contained in his hypothesis. But in the
case of a survey, data can be collected by any one or more of the following ways:
(i) By observation: This method implies the collection of information by way of
investigator‘s own observation, without interviewing the respondents. The
information obtained relates to what is currently happening and is not complicated by
either the past behaviour or future intentions or attitudes of respondents. This method
is no doubt an expensive method and the information provided by this method is also
very limited. As such this method is not suitable in inquiries where large samples are
concerned.
(ii) Through personal interview: The investigator follows a rigid procedure and seeks
answers to a set of pre-conceived questions through personal interviews. This method
of collecting data is usually carried out in a structured way where output depends
upon the ability of the interviewer to a large extent.Through telephone interviews:
This method of collecting information involves contacting the respondents on
telephone itself. This is not a very widely used method but it plays an important role
in industrial surveys in developed regions, particularly, when the survey has to be
accomplished in a very limited time.
(iii)By mailing of questionnaires: The researcher and the respondents do come in contact
with each other if this method of survey is adopted. Questionnaires are mailed to the
respondents with a request to return after completing the same. It is the most
extensively used method in various economic and business surveys. Before applying
this method, usually a Pilot Study for testing the questionnaire is conduced which
reveals the weaknesses, If any, of the questionnaire. Questionnaire to be used must
be prepared very carefully so that it may prove to be effective in collecting the
relevant information.
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(iv) Through schedules: Under this method the enumerators are appointed and given
training. They are provided with schedules containing relevant questions. These
enumerators go to respondents with these schedules. Data are collected by filling up
the schedules by enumerators on the basis of replies given by respondents. Much
depends upon the capability of enumerators so far as this method is concerned. Some
occasional field checks on the work of the enumerators may ensure sincere work. The
researcher should select one of these methods of collecting the data taking into
consideration the nature of investigation, objective and scope of the inquiry, finanical
resources, available time and the desired degree of accuracy. Though he should pay
attention to all these factors but much depends upon the ability and experience of the
researcher. In this context Dr A.L. Bowley very aptly remarks that in collection of
statistical data commonsense is the chief requisite and experience the chief teacher.

7. Execution of the project: Execution of the project is a very important step in the research
process. If the execution of the project proceeds on correct lines, the data to be collected
would be adequate and dependable. The researcher should see that the project is executed
in a systematic manner and in time. If the survey is to be conducted by means of
structured questionnaires, data can be readily machine-processed. In such a situation,
questions as well as the possible answers may be coded. If the data are to be collected
through interviewers, arrangements should be made for proper selection and training of
the interviewers. The training may be given with the help of instruction manuals which
explain clearly the job of the interviewers at each step. Occasional field checks should be
made to ensure that the interviewers are doing their assigned job sincerely and efficiently.
A careful watch should be kept for unanticipated factors in order to keep the survey as
much realistic as possible. This, in other words, means that steps should be taken to
ensure that the survey is under statistical control so that the collected information is in
accordance with the pre-defined standard of accuracy. If some of the respondents do not
cooperate, some suitable methods should be designed to tackle this problem. One method
of dealing with the non-response problem is to make a list of the non-respondents and
take a small sub-sample of them, and then with the help of experts vigorous efforts can be
made for securing response.
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8. Analysis of data: After the data have been collected, the researcher turns to the task of
analysing them. The analysis of data requires a number of closely related operations such
as establishment of categories, the application of these categories to raw data through
coding, tabulation and then drawing statistical inferences. The unwieldy data should
necessarily be condensed into a few manageable groups and tables for further analysis.
Thus, researcher should classify the raw data into some purposeful and usable categories.
Coding operation is usually done at this stage through which the categories of data are
transformed into symbols that may be tabulated and counted. Editing is the procedure that
improves the quality of the data for coding. With coding the stage is ready for tabulation.

Tabulation is a part of the technical procedure wherein the classified data are put in the
form of tables. The mechanical devices can be made use of at this juncture. A great deal
of data, specially in large inquiries, is tabulated by computers. Computers not only save
time but also make it possible to study large number of variables affecting a problem
simultaneously. Analysis work after tabulation is generally based on the computation of
various percentages coefficients, etc., by applying various well defined statistical
formulae. In the process of analysis, relationships or differences supporting or conflicting
with original or new hypotheses should be subjected to tests of significance to determine
with what validity data can be said to indicate any conclusion(s). For instance, if there are
two samples of weekly wages, each sample being drawn from factories in different parts
of the same city, giving two different mean values, then our problem may be whether the
two mean values are significantly different or the difference is just a matter of chance.
Through the use of statistical tests we can establish whether such a difference is a real
one or is the result of random fluctuations. If the difference happens to be real, the
inference will be that the two samples come from different universes and if the difference
is due to chance, the conclusion would be that the two samples belong to the same
universe. Similarly, the technique of analysis of variance can help us in analysing
whether three or more varieties of seeds grown on certain fields yield significantly
different results or not. In brief, the researcher can analyse the collected data with the
help of various statistical measures.
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9. Hypothesis-testing: After analysing the data as stated above, the researcher is in a
position to test the hypotheses, if any, he had formulated earlier. Do the facts support the
hypotheses or they happen to be contrary? This is the usual question which should be
answered while testing hypotheses. Various tests, such as Chi square test, t-test, F-test,
have been developed by statisticians for the purpose. The hypotheses may be tested
through the use of one or more of such tests, depending upon the nature and object of
research inquiry. Hypothesis-testing will result in either accepting the hypothesis or in
rejecting it. If the researcher had no hypotheses to start with, generalisations established
on the basis of data may be stated as hypotheses to be tested by subsequent researches in
times to come.

10. Generalisations and interpretation: If a hypothesis is tested and upheld several times, it
may be possible for the researcher to arrive at generalisation, i.e., to build a theory. As a
matter of fact, the real value of research lies in its ability to arrive at certain
generalisations. If the researcher had no hypothesis to start with, he might seek to explain
his findings on the basis of some theory. It is known as interpretation. The process of
interpretation may quite often trigger off new questions which in turn may lead to further
researches.

11. Preparation of the report or the thesis: Finally, the researcher has to prepare the report of
what has been done by him. Writing of report must be done with great care keeping in
view the following: (i) the preliminary pages; (ii) the main text, and (iii) the end matter.
In its preliminary pages the report should carry title and date followed by
acknowledgements and foreword. Then there should be a table of contents followed by a
list of tables and list of graphs and charts, if any, given in the report. The main text of the
report should have the following parts:
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(a) Introduction: It should contain a clear statement of the objective of the research and
an explanation of the methodology adopted in accomplishing the research. The scope of
the study along with various limitations should as well be stated in this part.
(b) Summary of findings: After introduction there would appear a statement of findings
and recommendations in non-technical language. If the findings are extensive, they
should be summarised.
(c) Main report: The main body of the report should be presented in logical sequence and
broken-down into readily identifiable sections.
(d) Conclusion: Towards the end of the main text, researcher should again put down the
results of his research clearly and precisely. In fact, it is the final summing up.
1. At the end of the report, appendices should be enlisted in respect of all technical data.
Bibliography, i.e., list of books, journals, reports, etc., consulted, should also be given in
the end. Index should also be given specially in a published research report.
2. Report should be written in a concise and objective style in simple language avoiding
vague expressions such as ‗it seems,‘ ‗there may be‘, and the like.
3. Charts and illustrations in the main report should be used only if they present the
information more clearly and forcibly.
4. Calculated ‗confidence limits‘ must be mentioned and the various constraints
experienced in conducting research operations may as well be stated.
Research Design Used
The type of design taken into consideration for the research is the primary data and secondary
data. The primary data is collected through telephonic interview by Mr Manoj Kumar, HR
Manager, Grand Hyatt.
Through the webisite of the company (Hyatt and Marriot) it can be interpreted regarding the HR
practices and policies of the hotels operating in the Hospitality Industry. This analysis process
can help in future in making any decision regarding to it. It can review whenever necessary.
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Time and Place Of Study: The survey was done in the city of Delhi through Telephonic Interview, in the
month on March,2013
Sample size: To be convenient about the research sample size for the research is 2
Sample Frame: Hotels in India
Sample Method: Convenient Sampling
Research tools: The data was collected through ―Telephonic Interview‖.
Data collection: Data is collected through the following:
Primary sources: Interview with HR manager, Mr Manoj Kumar, Hyatt Regency, New Delhi
Marriot Hotels
Secondary sources:
- Internet
- Books
- Magazines
- References
- Articles











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CONCLUSIONS AND RECOMMENDATIONS
CONCLUSIONS
High Quality HR Policy would be the policy, which not only considers all HR functions with
proper care but also considers all other factors like culture of the hotel, types of customers it
receives, the nature of the business and also the place from it operates. And the hotels,
considering all the above factors to achieve the organizational goal while framing its HR
functions is said to have been following good policy. For example in most of the Marriot Hotels,
the employee care is given the most priority. The work environment at Hyatt Hotels is employee
friendly and hence employees can discuss their problems openly. And now when our country is
trying to develop hospitality sector , it has become mandatory for us to provide hotel services up
to international standards and this is possible only when hotels are in position to cope up with
employees.
They need to be given more training and also the proper career planning and oppurtunities for
their future. And first of all they should be aware of the facts of this industry before they join in,
so that they will be prepared for everything. Thus the role of HRM is much higher in the
Hospitality Industry. Retention of employees is another large problem in the hotel service
business. Since so many of the employees do not have hotel work as their ending career goals,
many of them only work in a hotel for a short amount of time. The importance of human
resource management for hotels is very large in this area. The issue of employee progression and
promotion is also another issue in hospitality industry. It is easy to implement services of this
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nature and the expense is negligible compared to expense and time necessary to constantly find
new employees to replace the ones that always leave shortly after being hired.
At the same time growth in hospitality Industry has become important source of employment in
India.It is hoped that this project will not only meet the requirements of Hotliers but will also be
helpful as a guide to academic professionals.



Recommendations
Hospitality is a high touch, high tech, high involvement industry where it is the people
who make the difference. So they need to make people retain by good HR policies.
The ability for the Hospitality Industry to succeed and the future performance of the
industry and related activities will depend largely on the skills, qualities and knowledge
of its employees. Indeed the challenges facing the industry can only be met successfully
by a well educated, well being, bright, energetic,multi-lingual and multi task workforce.
A high quality hospitality workforce can only be achieved through high standards of
hospitality education and training which in turn will impact the ability to compete in the
global hospitality industry.
Qualitative research uses the human-as-an-instrument for the data collection and analysis.
Its exploratory and descriptive nature provides insight into the perceptions and ideas that
are in the minds of people, and which can be usefully compared with practice. However,
qualitative research is relatively rare, both in the field of hospitality generally and
certainly in the context of research into industry in India.
Managers can provide good training and incentive programs that will cause employees to
stay longer at the hotel. Having a clear progression plan to advance to higher levels of
service will also cause employees to stick around much longer.
The new practices can be introduced by certain governments and industry to improve
skills and enhance the competiveness of sector.
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They can develop themes wherein under contextual change can be introduced that has
direct impact on people and their management in Hospitality sector and should consider
the consequences of changes.









BIBLIOGRAPHY

1. Baum, Tom, Amoah, Vanessa & Spivack, Sheryl (1997), ―Policy dimensions of
human resource management in the tourism and hospitality industries‖,

2. Beaumont, P. B. (1993) Human Resource Management: Key concepts and skills,
Sage Publications Ltd, London.

3. Brown, D., Dickens, R., Gregg, P., Machin, S. and Manning, S. (2001) Everything Under
a Fiver: Recruitment and Retention in Lower Paying Labour Markets, York: Joseph
Rowntree Foundation.

4. Brown, P., Green, A. and Lauder, H. (2001) High Skills: Globalization, Competitiveness
and Skill Formation, Oxford: Oxford University Press.

5. Hornsey, Timothy, Dann, David (1984) Manpower Management in the hotel and
catering industry, Batsford Academic and Educational Ltd, London

6. International Journal of Contemporary Hospitality Management, Vol. 9, nº 5/6, p.
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221-229.

7. Torrington, Derek, Hall, Laura, Taylor, Stephen (2002) Human Resource
Management 5th Ed, Pearson Education Ltd, Great Britain.







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