PDF - Journal of Management Sciences

Journal of Contemporary Management Sciences
Volume 4 (2) 28-41
JCMS Publication, 2014
Journal of
Contemporary
Management
Sciences
HUMAN RESOURCE MANAGEMENT PRACTICES OF
SELECTED HOTELS AND RESORTS IN OLONGAPO CITY
By
DR. DAVID CABABARO BUENO
Dean, Graduate School
COLUMBAN COLLEGE, INC.
1 Mt. Apo St., New Asinan, Olongapo City, Zambales 2200, PHILIPPINES
[email protected]
Abstract
The way an organization manages people can influence its performance. In particular, human resource management
(HRM) practices relation to job description, selection process, performance appraisal, training, compensation, career
planning, and employee participation are widely believed to improve the performance of organizations. This study
aimed to determine the human resource management (HRM) practices of selected hotels and resorts in Olongapo
City. The descriptive method of research was utilized. The analysis was descriptive and inferential statistics. The
duties of every job were clearly defined. Employees have the opportunity to be promoted to positions of greater pay.
They were definite that the performance appraisal conducted was oriented towards their growth and development.
Likewise, sharing of acquired knowledge/skills by co-workers was imperative for them. They were satisfied in terms
of the salary received. Their career aspirations within the unit were known by their immediate superior. There was
growing evidence of employee participation and they were allowed to make decisions related to cost and quality
matters, asked to participate in operations related decisions, and provided opportunity to suggest improvements in
the way things are done. There was no significant difference between the assessments of the managers and the
employees on the human resource management practices. Human resource management practices at the various
hotels and resorts were geared towards efficient utilization of employees in achieving goals within hotel industries.
The department heads may work in concert with appropriate human resource administrators to ensure compliance
with general personnel policies and practices.
Keywords: Human Resource Management, Hotels, Descriptive and Inferential Analysis.
Introduction
Organizations can adopt various human resource management (HRM) practices to enhance employee skills as well
as motivate them to work harder towards achieving the set targets. They can improve the quality of current
employees by providing comprehensive training and development activities. Considerable evidence suggests that
investments in training produce beneficial organizational outcomes (Bartel, 1994). This means the effectiveness of
skilled employees will be limited if they are not motivated to perform their jobs.
Hotel industries are not exempted to the foregoing conceptions and generalizations. In turn, adequacy of the whole
industry‟s growth and development can be attributed to the acceptable HRM practices as it is said that no system of
organization can be improved without its workforce.
Researchers have concluded that employee participation has positive effect on job satisfaction and productivity.
Miller and Monge (1986) reported a positive correlation between participation and job satisfaction in studies
conducted in organizational settings that incorporated measures of multiple-issue participation. A correlation
between participation and productivity was revealed when they averaged the results of field studies lacking goalsetting interventions. Wagner and Gooding (1987), in studies that contrasted directive versus participative processes,
found a correlation between participation and satisfaction when participants were asked to perform simple tasks.
This is important because it helps support the suggestion that participation helps enrich simplified work. Smith and
Brannick (1990) also speculate that participation causes greater job satisfaction because the employee feels more
valued and trusted by management, and because the worker gains a better understanding of management difficulties
by dealing with some of the same problems.
A large body of research provides evidence that the way jobs are designed impacts outcomes that are important to
workers and to employers. Job design can be approached with one or more goals in mind. For instance, jobs can be
designed in the interest of increasing production efficiency, minimizing physical strain, or with an eye on
maximizing the extent to which they are motivating to the worker (Campion & Thayer, 1985). Research on the job
characteristics model has also found relations between employee perceptions of specific core characteristics inherent
in the job‟s design (skill variety, task identity, task significance, etc.) and employee intrinsic job motivation and
satisfaction with the job itself. A job that possesses higher levels of these core characteristics is higher in motivating
potential. Recruiting and selecting high potential employees doesn‟t guarantee that they will perform effectively.
People who do not know what to do or how to do it cannot perform effectively even if they want to. Therefore there
is need for organizations to train employees in order to ensure that they know what to do, and how to do it.
Since the hospitality industry environment is becoming more and more competitive, organizations are looking out
for employees that can perform towards a specified goal. Job security is not guaranteed, since one‟s stay in the
organization depends on one‟s performance and satisfactory performance depends on the organization‟s proper
management of human resources.
This study therefore, aimed at determining the HRM practices among selected hotels and resorts in Olongapo City.
The specific objectives of the study were: (1) to determine the HRM practices of selected hotels and resorts in
relation to job description, selection process, performance appraisal, training, compensation, career planning, and
employee participation; and (2) to analyze the significant difference between the assessments of respondents on the
HRM practices.
Literature Review
This study was conceptualized based upon the various conceptions and generalization of authorities in the field of
HRM. Russell (2008) pointed out that professional level of management is a key to all assets. Generally, people
think of asset management as relating to investments. People are assets and should be professionally managed too.
Everyone learns in college or at motivational seminars that employees are an asset, an organization‟s most valuable
asset. To answer what the role of HRM is in a business, all the stakeholders need to be educated as to exactly what
HR is, a human asset management entity and why it is not just a personnel department. In the past, organizational
supervisors simply instructed workers what tasks to perform in exchange for their pay and benefits. Organizations
that have true HRM in their structure benefit all around. Managers and supervisors of organizations that have human
asset management are forced to make clear what the goals are to all of the stakeholders of the organization. HRM
compels the organization to provide all of the resources necessary to efficiently complete their tasks.
HRM is a major contributor to the success of any organization. It performs human asset management in the best
interest of the organization and each of the individual members. Human asset management strives to select the
proper people for the organization, make sure they have all the necessary resources, continue to improve skill
development and stay with the organization in a highly productive fashion for a long time.
Literatures have shown that organizational performance can be influenced by HRM practices (Racelis, 2006). HRM
activities play a major role in ensuring that an organization will prosper and succeed. In most organizations, such
success is measured by the balance of such complementary characteristics as reaching goals, employing the skills
and abilities of employees efficiently, and ensuring the influx and retention of well-trained and motivated
employees. Thus, top managers have learned to treat the human resources of the organization as the key to
effectiveness. This realization has led to increased interest in the impact of HRM on organizational performance,
and a number of studies have found a positive relationship between HRM practices and policies, and different
measures of company performance (Fey, 2001).
HRM examines what can or should be done to make working people more productive and satisfied. For this to be
achieved, management must regard the development of superior human resources as an essential competitive
requirement that needs careful planning, hard work, and evaluation (Ivancevich, 2003). Given that a firm‟s human
resources are an important potential source of sustained competitive advantage, it is important for a firm to adopt
HRM practices that make the best use of its employees (Wright, 2004).
It has been shown that these practices can improve the knowledge, skills, and abilities of a firm‟s current and
potential employees, increase their motivation, reduce shirking, and enhance retention of quality employees while
encouraging nonperformers to leave the firm (Huselid, 2005).
The relationship between HR practices and performance has grown exponentially over the past few years. The
seminal work in this area was conducted by Huselid (2005), who examined the relationship between HR practices
and corporate turnover, profitability and market value. Delery (2006) found that HR practices were positively related
to profitability, while Guthrie (2001) examined the impact of HR practices on turnover and firm productivity. He
noted that HR practices had an impact on turnover, and that the relationship between retention and productivity was
positive when firms implemented high-involvement HR practices. Moreover, MacDuffie (2005) found that the HR
practice „bundles‟ when he measured quality and productivity, and Youndt (2006) discovered that human capital
enhancing HR practices were related to operational performance among employees.
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Thus, the HRM practices of the selected hotels and resorts were assessed in terms of job definition, selection,
performance appraisal, training, compensation, career planning, and employee participation.
Methodology
The descriptive-survey method was used through the use of questionnaire and interview. Ten hotels and resorts
constituted the study group of ten (10) owners/managers and conveniently selected one hundred (100) employees
were the respondents. The hotels and resorts included were Bayfront, Camayan, Grand Seasons, Mountain Woods,
The Lighthouse Marina, Arizona International, Blue Rock, By the Sea, Wild Orchid, and White Rock. Data were
statistically analyzed.
Findings/Discussions
1. Assessment of Human Resource Management
1.1 Job Description
This covers details of the day to day duties expected from each employee in the hotel industries. The overall
assessments were 4.46 and 4.33 (manager and employee) with a descriptive rating of “Strongly Agree‟. The duties
of every job were clearly defined in the unit. Each job contains up to date description of all the duties. Thus, the
actual job duties are shaped more by the employee than by the formal job description. These matched with the job
specification, and other responsibilities assigned to the employees. According to the managers, these practices were
helpful in getting the job done faster. The abilities and competencies of the employees were put into consideration
and have a place in the job description. Lastly, according to some hotel employees, a job description is prepared and
explained to them what their duties and tasks are in the department.
Table 1. Assessments on Job Description
Manag
Statements
Empl
er
oyee
W
X
The duties of every job are clearly defined.
D
R
4
.33
Each job has an up to date job description.
X
S
A
4
.29
W
R
4
.21
S
A
D
S
A
4
.26
S
A
The job description contains all the duties performed by individual
employee.
4
.43
S
A
4
.36
S
A
The actual job duties are shaped more by the employee than by the formal
job description.
4
.57
The job specification for each position in clearly defined.
S
A
4
.36
4
.28
S
A
S
A
4
.23
S
A
The duties and responsibilities of the position are matched with
the job specification.
4
.48
The defined duties are strictly implemented.
S
A
4
.27
4
.51
S
A
S
A
4
.48
S
A
Other responsibilities assigned to the employees are related to
this/her area of specialization.
4
.64
S
A
4
.36
S
A
Provision of extra responsibilities given to the employees is
reflected in the job description.
4
.73
S
A
4
.34
S
A
Extra responsibilities and duties given to the employees are
efficiently accomplished.
4
.49
Ave. Mean
S
A
4
.46
4
.27
S
A
S
A
4
.33
S
A
1.2 Selection Process. The respondents strongly agree that unit head and HR manager participate in the selection.
Applicants undergo structured interviews before being hired. They have the opportunity to be promoted to positions
of greater pay and responsibility. However, the employees rated “Agree” that the selection systems followed in the
IRC-2014 THAILAND
Page 5
unit are highly scientific and rigorous and selects those having the desired knowledge, skills and attitudes. The
overall assessments scored 4.07 (managers) and 4.09 9 (employees). The result suggests that some employees were
selected and undergone several testing methods. According to them, they experienced verbal and written skills
assessments, as well as oral interview before they were selected and hired in their current jobs.
Table 2. Assessments on Selection Process
M
Statements
E
mployee
W
D
W
R
X
R
3
A
3
.74
4
S
4
A
.32
A
3
A
3
.81
4
A
4
.10
anager
X
The selection systems are highly scientific and rigorous.
.75
Unit head and HR manager participate in the selection.
.41
Valid and standardized tests are used in the selection process.
.78
Selection system selects those having the desired knowledge, skills and attitudes.
.12
D
A
S
A
A
Applicants undergo structured interviews (job-related questions) before being hired.
.26
Qualified employees have the opportunity to be promoted to positions of greater pay and
responsibility.
.28
Applicants for this job take formal tests (paper and pencil) before being hired.
4
A
S
.61
4
A
S
4
A
3
S
.31
A
.83
S
.36
A
.11
4
A
3
S
4
A
4
S
A
.79
A
.09
3
A
4
A
.84
The rules governing promotion of qualified employees are followed.
.27
The qualification requirements for promotion are strictly implemented.
4
A
4
.17
There is a clear policy on pre-selection process to come up with the short list of qualified
candidates.
3
.83
Ave. Mean
4
.07
1.3 Performance Appraisal. Personnel management can help to identify and coordinate different performance
improvement interventions. Acceptable human resource management can be considered an important part of any
performance improvement process, to make sure that each management system complements and facilitates the
smooth operation of the other. The performance data use for making decisions like training and staff development
program was item scored 3.97 (managers) and 4.02 (employees), which means “Agree”. The employees were clear
about that their performance was measured on the basis of objective quantifiable results. They strongly agree that
the performance appraisal activity conducted was oriented towards their growth and development. The appraisal
activities were done regularly for the employees to receive formal feedback relative to their actual performance and
basis for decisions further training and development program. Thus, the overall assessment for performance
A
A
appraisal practices was rated 4.29 (managers) and 4.37 (employees), which is qualitatively described as “Strongly
Agree”.
Table 3. Assessments on Performance Appraisal
Man
Statements
ager
X
Performance of the employees is measured on the basis of objective quantifiable
results.
W
R
4
.32
Appraisal system is growth and development oriented.
4
A
4
A
4
A
4
A
4
A
S
4
A
4
A
S
A
S
.39
S
.52
S
.61
4
A
S
A
A
.02
4
A
S
.32
S
.37
4
A
4
A
S
4
Employees are provided performance based feedback and counseling.
A
4
.29
Employees have faith in the performance appraisal system.
A
4
.24
Appraisal system has a strong influence on individual and team behavior.
A
4
.26
The appraisal data are used for making decisions like job rotation and/or
promotion.
A
4
.52
The objectives of the appraisal system are clear to all employees.
A
4
.31
Employees in this job regularly (at least once a year) receive a formal evaluation
of their performance.
4
.56
The performance data are used for making decisions like training and staff
development program.
3
.97
The appraisal data are used for making decisions like compensation/ ranking
system.
4
.26
Ave. Mean
A
4
.29
A
1.4 Training. Both the managers and the employees “Strongly Agree” that new knowledge and skills were
imparted to them periodically to work in teams. These training also support and develop creativity and innovation
among staff. Thus, sharing of acquired knowledge/skills by co-workers was imperative for them. Moreover, both the
respondents agreed that the selected hotels and resorts conduct extensive trainings for them with quality. These
trainings were identified based on the performance appraisal mechanism and realistic and useful for the unit
conducted by the HR unit while there was only very few educational or training leave for employees. The computed
overall means of 3.91 (managers) and 3.90 (employees) were rated as “Agree”. The findings suggest that any
specialized training received by the employees were necessary for their specific tasks. Perhaps the most important
part of the training will be providing the employee with the understanding that they are an important part of
providing success and compliance with coverage under the hotel industry.
IRC-2014 THAILAND
D
S
.29
S
.31
S
.22
S
.32
S
.72
A
.27
E
mployee
D
W
X
R
Page 7
S
S
S
S
S
S
Table 4. Assessments on Training
Statements
M
anager
W
X
R
Our organization conducts extensive training programs for its employees in all aspects of
quality.
3
D
A
.78
A
.99
3
A
3
A
4
A
.01
4
A
3
A
.90
3
A
4
A
S
.36
4
A
S
3
A
.60
3
A
3
A
.49
S
.38
S
.27
M
.22
A
.90
3
A
4
A
4
A
3
A
3
S
.79
Employees in each job will normally go through training programs every year.
E
mployee
D
W
X
R
4
.12
Training needs are identified through a formal performance appraisal mechanism.
.09
There are formal training programs to teach new employees the skills they need to
perform their jobs.
.91
New knowledge and skills are imparted to employees periodically to work in teams.
.28
Training needs identified are realistic, useful and based on the business strategy of the
unit.
.57
Sends staff to attend trainings, seminars, conferences and others from outside source.
.50
Supports and develops creativity and innovation among staff.
.34
There is sharing of acquired knowledge/skills by co-workers.
.26
There is educational or training leave for employees.
.21
Ave. Mean
.91
4
A
4
A
3
A
3
1.5 Compensation. Compensation represents a large proportion of expenditures among hotel industries. They
“Strongly Agree” that job performance is an important factor in determining the incentive compensation of
employees and compensation is decided on the basis of their competence or ability. They have the opportunity to
earn bonuses for productivity, also, leave benefits/ compensations are provided. They were satisfied in terms of the
salary received. The overall assessments of the managers and the employees in relation to compensation-related
practices were 4.35 and 4.44, respectively, or “Strongly Agree”. To an employee when interviewed, pay is a primary
reason for working. For most of them, it is the means by which they were provided for their own and family's needs.
Lastly, some of them even mentioned that compensation is the end product of their efforts and is described as
performance.
S
M
A
Table 5. Assessments on Compensation
Statements
M
anager
W
X
R
Job performance is an important factor in determining the incentive
compensation of employees.
Empl
oyee
W
W
X
R
S
.33
S
.41
4
.26
4
A
4
A
4
A
S
.36
4
.23
S
.25
S
.42
S
.47
4
.28
4
A
4
A
4
A
4
A
S
.48
4
.59
4
A
4
A
4
A
4
A
S
.64
S
.62
S
.46
S
.44
4
.27
Salary and other benefits are comparable to the other unit.
D
S
A
4
S
A
Compensation is decided on the basis of competence or ability of the employee.
S
A
The compensation for all employees is directly linked to his/her performance.
.24
Profit sharing is used as a mechanism to reward higher performance.
.25
Pay raises for employees in this job are based on job performance.
Employees have the opportunity to earn individual bonuses for productivity, or
other individual performance outcomes.
S
A
4
S
A
4
S
A
S
A
Salary is received according to the number of hours and days worked on time.
.51
Leave benefits/ compensations are provided.
.53
The present salary/ compensation is satisfying.
.36
Ave. Mean
.35
S
A
4
S
A
4
S
A
4
S
A
1.6 Career Planning. The employees simply agree that individuals in the unit have clear career paths in which
accordingly, they have more than one potential position for promotion. This is reflected in the plans for the career
and development of employees making them aware of their career path in the unit. Moreover, they strongly agree
that their career aspirations within the unit are known by their immediate superior where in each qualified employee
is given opportunity for career growth and directed towards potential position for promotion. These assessments
gave overall means of 3.97 (managers) and 4.04 (employees), which descriptively rated as “Agree”. The assessment
gave clearer understanding when some of the employees mentioned that career planning consists of activities and
actions that they take to achieve their individual career goals. Thus, they were given the chance to explore their
interests and abilities, and allowed to take actions individually or with their unit head to assess individual interests,
strengths, and areas for development and work to identify on-the-job learning and training opportunities, continued
education, and/or avenues for professional development.
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Table 6. Assessment on Career Planning
Mana
Statements
ger
W
X
Individuals in the department have clear career paths.
R
3
.40
Employee‟s career aspirations within the unit are known by his/ her immediate
superior.
4
.21
A
Empl
oyee
D
W
X
R
A
3
.42
S
.28
4
A
.02
S
.62
A
.58
S
.46
A
.31
4
S
.62
A
.45
4
S
.71
A
.04
4
D
A
S
A
Employees in our unit have more than one potential position for promotion.
4
.11
Individual growth needs are matched in this unit.
4
.27
Our department plans for the career and development of employees.
A
3
.59
Our unit prefers an internal employee whenever a vacancy exists.
4
.57
Each employee is aware of his/her career path in the unit.
A
3
.24
Each qualified employee is given opportunity for career growth within the
unit.
4
.45
Growth needs are matched in this unit.
A
3
.46
Qualified employees in our unit are directed towards potential position for
promotion.
4
.42
Ave. Mean
A
3
.97
A
4
S
A
3
A
4
S
A
3
A
S
A
3
A
S
A
4
A
1.7 Employee Participation. There were strong participation among managers and employees as evidenced by the
computed means of 4.37 and 4.36, respectively. Thus, there was growing evidence that employee participation
increases effort, which subsequently improved efficiency and productivity, it reduced the cost of monitoring
employees and directed to increased commitment. The employees were allowed to make decisions related to cost
and quality matters and were asked to participate in operations related decisions in roundtable discussions. They
were doing this through regular meetings and employee suggestion plans. The employees were also given
responsibility and autonomy to organize and perform their jobs as they see fit according to one unit head.
Table 7. Assessments on Employee Participation
M
Statements
anager
X
Employees are allowed to make decisions related to cost and quality matters.
.21
E
mployee
W
D
W
R
X
R
4
S
4
A
.28
A
D
S
Employees are asked by their superiors to participate in operations related decisions.
4
S
4
S
.25
Employees are provided opportunity to suggest improvements in the way things are done
here.
.37
Employees have a reasonable and fair complaint process.
.42
Employees are involved in quality improvement groups.
.26
A
.22
A
4
A
4
A
4
A
S
.34
S
.41
S
.24
4
A
4
A
4
A
S
4
A
4
A
4
A
4
A
4
A
4
A
S
.38
S
.72
S
.29
S
.44
S
.37
S
.36
4
A
4
A
4
A
4
A
4
A
4
A
S
S
S
Employees are involved in formal participation process like problem-solving
groups.
.34
Employees are involved in roundtable discussions.
.76
Superiors are respectful to the opinion of their employees.
.28
Decisions endorsed/ suggested by the employees are highly considered.
.43
Employees are involved in the execution of ranking and promotion system.
.35
Ave. Mean
.37
2. Difference Between the Assessments of Respondents on the Human Resource Management Practices
The computed t-value of 0.6067 is not considered statistically significant at .05 level of confidence. This means that
the assessment of the managers and employees respondents on the human resource management practices did not
differ significantly.
Table 8. Difference Between the Assessments on the Human Resource Management Practices
Data
Managers
Employees
Mean
4.2029
4.2186
SD
0.2164
0.2059
N
7
7
P value and statistical significance
(Two tailed P value)
0.6067
Decision @ .05
Accept Ho
Interpretation
Not statistically significant
Conclusions/ Implications
IRC-2014 THAILAND
Page 11
S
S
S
S
S
The duties of every job were clearly defined among selected hotels and resorts. Qualified employees have the
opportunity to be promoted to positions of greater pay and responsibility within the unit. The performance appraisal
activity conducted was oriented towards their growth and development. Sharing of acquired knowledge/skills by coworkers was imperative to them. They were satisfied with the salary received. Their career aspirations were known
by their immediate superior where in each qualified employee is given opportunity for career growth and directed
towards potential position for promotion. There was growing evidence of employee participation and they were
allowed to make decisions related to cost and quality matters, asked to participate in operations related decisions,
and provided opportunity to suggest improvements in the way things are done. There was no significant difference
between the assessments of the managers and the employees on the human resource management practices. Human
resource management practices at the various hotels and resorts were geared towards efficient utilization of
employees in achieving goals within hotel industries. The department heads may work in concert with appropriate
personnel administrators to ensure compliance with general personnel policies and practices.
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