Human Resource Management in the Hotel Industry: Strategy, Innovation and Performance (Routledge Studies in Employment Relations)41463

Edited by Stephen Bach, Lorenzo Bordogna, Guiseppe Della Rocca and David Winchester Human Resource Management in the Hotel Industry Strategy, innovation and performance Kim Hoque... Huma

Over the last decade, human resource management has come to be viewed

as the dominant paradigm within whic h analyses of the world of work have

e m p h a s i s e t h e i m p o r t a n c e o f s e r v i c e q u a l i t y e n h a n c e m e n t a n d w h e r e t h eyintroduce HRM as an integ rated, mutually suppor ting pac kage of practices,

a strong relationship between HRM and organisational performance is identified

H u m a n R e s o u r c e M a n age m e n t i n t h e H o t e l I n d u s t r y i s e s s e n t i a l r e a d i n g n o t

o n ly f o r s t u d e n t s a n d re s e a r c h e r s w i t h a s p e c i f i c i n t e r e s t i n t h e h o t e l a n d

ca t e r i n g i n d u s t r y, bu t a l s o f o r re s e a r c h e r s w i t h a w i d e r i n t e r e s t i n t h e

n at u re a n d i m p a c t o f H R M

Kim Hoque is Lecturer in HRM at Cardiff Business School He has published

widely in the field of human resource management, having conducted researc h

on g reenfield site establishments, foreign-owned establishments, the natureand impact of the per sonnel function and ethnic minor ities in employment,

as well as conducting researc h into the hotel industr y He is also the ordinator of Cardiff Business Sc hool’s Equality and Diver sity Researc h Unit

Series editors: Rick Delbridge and Edmund Heery

Cardiff Business School

Aspects of the employment relationship are central to numerous courses at bothundergraduate and postgraduate level

Drawing on insights from industrial relations, human resource managementand industrial sociology, this series provides an alternative source of research-based materials and texts, reviewing key developments in employment research

Books published in this series are works of high academic merit, drawn from

a wide range of academic studies in the social sciences

Rethinking Industrial Relations

Mobilisation, collectivism and long waves

John Kelly

Social Partnership at Work

Workplace relations in post-unification Germany

Carola M.Frege

Employee Relations in the Public Services

Themes and issues

Edited by Susan Corby and Geoff White

The Insecure Workforce

Edited by Edmund Heery and John Salmon

Public Service Employment Relations in Europe

Transformation, modernization or inertia?

Edited by Stephen Bach, Lorenzo Bordogna, Guiseppe Della Rocca and David Winchester

Human Resource Management in the Hotel Industry

Strategy, innovation and performance

Kim Hoque

Human Resource Management

in the Hotel Industry

Strategy, innovation and performance

Kim Hoque

London and New York

by Routledge

11 New Fetter Lane, London EC4P 4EE

Simultaneously published in the USA and Canada

by Routledge

29 West 35th Street, New York, NY 10001

Routledge is an imprint of the Taylor &Francis Group

This edition published in the Taylor & Francis e-Library, 2002

© 2000 Kim Hoque

All rights reserved No part of this book may be printed or reproduced

or utilised in any form or by any electronic, mechanical, or other means,now known or hereafter invented, including photocopying andrecording, or in any information storage or retrieval system, withoutpermission in writing from the publishers

British Library Cataloguing in Publication Data

A catalogue record for this book is available

from the British Library

Library of Congress Cataloging-in-Publication Data

ISBN 0-415-20809-2 (Print Edition)

ISBN 0-203-02086-3 Master e-book ISBN

ISBN 0-203-20760-2 (Glassbook Format)

3 New approaches to HRM in the hotel industry:

3.2 Star ratings of respondents’ hotels compared with

3.3 Regional distribution of the respondents’ hotels

3.5 Comparison of HRM strategy in hotels and

3.6 The personnel function within the hotel industry

4.1 Relationship between HRM and internal factors in

4.2 Resistance to organisational and technical change in

4.3 The relationship between HRM, technical and

4.4 The relationship between HRM, the personnel

4.5 Relationship between external factors and HRM

4.6 Relationship between internal and external factors and

6.1 The relationship between HRM and human resource

6.2 The relationship between HRM and organisational

6.3 HRM, strategy and human resource outcomes in the

6.4 HRM, strategy and performance outcomes in

6.5 HRM, internal fit and human resource outcomes

6.6 HRM, internal fit and performance outcomes in

I would like to extend special thanks to all those who have offered assistance and advice atvarious stages of this project, in particular Donna Brown, Steve Dunn, David Guest,Rosemary Lucas, John McGurk, Steve McIntosh, Riccardo Peccei, John Purcell, KatePurcell, Ray Richardson, Keith Whitfield, Marcus Rubin, Steve Wood and Steve Woodland.Thank you also to Louise for your continual support and encouragement This book isdedicated to my parents, for their unyielding support throughout my education

I would also like to thank the respondents to the 1995 Sur vey of HumanResource Management in the Hotel Industr y and the 1993 Sur vey of HumanResource Management in Greenfield Sites I should like to extend par ticular

Human Resource Management (HRM) has increasingly come to be utilised as the frameworkwithin which unfolding developments in the world of work are interpreted However, as atheory, HRM has its roots firmly entrenched within a manufacturing paradigm In addition,the vast majority of the empirical testing of HRM has been conducted within manufacturingorganisations Yet almost 76 per cent of the working population is now employed withinservices Unless it can be shown to be relevant within this sector, what future is there forHRM as the ‘dominant paradigm’ within which unfolding developments within the world ofwork can be interpreted? The aim of this book is to address this question by evaluating therelevance of mainstream HRM theory within the UK hotel industry

The book addresses three key issues The fir st issue concer ns the extent

to whic h hotels have exper imented with new approac hes to HRM The secondissue concer ns the factor s that influence HRM decision-making, and whether

t h e s e fa c t o r s a r e a ny d i f f e re n t w i t h i n t h e h o t e l i n d u s t r y t h a n e l s e w h e re

T h e t h i r d i s s u e c o n c e r n s t h e re l a t i o n s h i p b e t we e n H R M a n d p e r f o r m a n c e

in the hotel industry These questions are addressed using sur vey data from

230 hotels, and both quantitative and qualitative methodolog ies are adopted

1 Introduction and

framework for analysis

By mid-1998, the proportion of the UK employed population working in service sector jobshad grown to 75.7 per cent The comparable figure in mid-1986 was 68.3 per cent Overthe same period, the proportion of the employed population working within productionindustries fell from 25.2 per cent to just 18.4 per cent (Office for National Statistics, 1999).These figures clearly demonstrate the size, the growth-rate and the ever-increasing economicimportance of the service sector

T h e g r ow i n g i m p o r t a n c e o f t h e s e c t o r i s f u r t h e r d e m o n s t r at e d by t h e

e n o r m o u s p owe r n ow w i e l d e d by s e r v i c e f i r m s wo r l dw i d e Fo r e x a m p l e,

a s n o t e d by Q u i n n ( 1 9 9 2 : 1 7 – 2 0 ) , Toy s R U s n ow e a r n s t h re e t i m e s t h ereve n u e o f t h e wo r l d ’ s l a r g e s t t oy m a n u f a c t u re r a n d t h ey a re i n a p o s i t i o n

e n c o u r a g e d t h i s p r o c e s s F i r s t ly, c u l t u r a l h o m o g e n i s at i o n h a s l e d t o t h e

d eve l o p m e n t o f key s i m i l a r i t i e s i n c o n s u m e r p r e f e re n c e s a c r o s s n at i o n s

S e c o n d ly, e l e c t r o n i c p o i n t o f s a l e ( E P O S ) t e c h n o l o g y i s n ow c a p a bl e o fcaptur ing the data necessary to engage in sophisticated inter national marketingpractices Thirdly, the deregulation of world markets has led to a loosening

or lifting of restr ictions on foreign owner ship (Segal-Hor n, 1994) Ser vice

p r o d u c t s a re b e c o m i n g i n c re a s i n g ly s o p h i s t i c at e d , i n t e r n at i o n a l ly t r a d a ble

a n d c a p a bl e o f g e n e r a t i n g a t r e m e n d o u s a m o u n t o f we a l t h , a n d s e r v i c e

s e c t o r g l o b a l i s at i o n h a s b e c o m e a r e a l i t y

T h i s g l o b a l i s at i o n w i l l i n ev i t a bly p rov i d e U K s e r v i c e p rov i d e r s w i t hover s e a s e x p o r t o p p o r t u n i t i e s H owever, U K s e r v i c e p rov i d e r s w i l l a l s ohave t o c o p e w i t h i n t e n s i f i e d c o m p e t i t i o n f r o m ove r s e a s I n r e t a i l i n g , f o rexample, incur sions by European food retailer s suc h as Aldi into UK domestic

m a r k e t s h ave c a u s e d c o n c e r n ( K n ox a n d T h o m p s o n , 1 9 9 4 ) I f t h e U K i s

t o c o m p e t e e f f e c t i v e ly w i t h i n i n c r e a s i n g ly g l o b a l i s e d s e r v i c e m a r k e t s i n

t h e f a c e o f s u c h p r e s s u r e, d e ve l o p i n g a n u n d e r s t a n d i n g o f t h e f a c t o r sthat enable ser vice provider s to generate and sustain competitive advantage

i s a m u s t

A lack of service-based empirical research?

At odds with the growing economic importance of services is the lack of empiricalresearch undertaken within the sector As far back as 1948, Whyte, in his book ‘HumanRelations in the Restaurant Industry’ stated that human relations had only ever beenstudied in a manufacturing environment and that more attention should be paid to theever-increasing service industries Replace ‘human relations’ with ‘human resourcemanagement’ and Whyte’s statement would be as true as we approach the millennium as itwas in 1948 Gabriel (1988:6), Rajan (1987:2) and Shamir (1978:295) all make the pointthat the services remain ever neglected, with there being a scarcity of systematicfieldwork, when compared with the wealth of research undertaken in manufacturingindustries Lucas and Wood (1993) make similar assertions concerning the hotel andcatering sector, stating that although today’s position is an improvement on ten years ago,there is still precious little published What there is tends to be removed from themainstream and confined to specialist journals such as the ‘International Journal ofHospitality Management’, which probably remain unheard of amongst mainstreammanagement academic circles The importance of services and the extent to which thatimportance has increased, is yet to be reflected within empirical research, despite the factthat it is studies of the service sector that will shed the greatest light on the futureemployment relationship

By contrast, the wealth of empirical researc h conducted within manufacturing

h a s r eve a l e d ev i d e n c e o f n o t i n c o n s i d e r a b l e c h a n g e i n r e c e n t t i m e s , w i t h

c o m p a n i e s — s o m e t i m e s d r aw i n g i n s p i r a t i o n f ro m Ja p a n e s e t r a n s p l a n t s , o r

f r o m e x e m p l a r A m e r i c a n c o m p a n i e s s u c h a s I B M — h av i n g e x p e r i m e n t e dwith new communication tec hniques, teamworking, Total Quality Management

a n d n e w o r g a n i s a t i o n a l c u l t u r e s , f o r e x a m p l e W h e t h e r t h e s a m e l eve l

o f e x p e r i m e n t a t i o n h a s o c c u r r e d w i t h i n t h e s e r v i c e s r e m a i n s ve r y m u c h

o p e n t o q u e s t i o n

HRM theory: rooted in manufacturing?

Not only is there a scarcity of empirical research conducted within the service sector, butalso the theoretical concept which Storey (1992:2–3) notes has been used to ‘make sense’ ofrecent developments—Human Resource Management (HRM) —is entrenched within amanufacturing paradigm For example, Walton’s (1985) highly influential paper, which laidout the differences between commitment and control approaches to the management ofhuman resources, focused entirely on factory workers—service sector workers not meriting

a mention Similarly, the tendency for the services to be overlooked in HRM and industrialrelations research is now seemingly being replicated within the emerging debate concerningthe impact of HRM on performance However, the sheer size and economic importance ofthe service sector relative to the numbers employed in manufacturing, in particular thenumber of people who actually work on production lines themselves1, calls into questionwhether it is any longer, indeed, whether it has ever been, valid to treat factories and theproduction line as the dominant paradigm by which HRM is conceptualised Indeed, it isbecoming increasingly important for the future validity of HRM to demonstrate that HRMtheory, developed within a manufacturing sector ‘production line’ paradigm, is also relevantwithin the service sectors of the economy What future is there for HRM as a theory if it isnot seen in the services, within which almost 76 per cent of the working population areemployed, as a credible approach? By providing a test of the applicability of HRM in aservice environment, this is a key focus of this book

The problematic nature of service sector research

Researchers are faced with a major definitional problem when looking at services, namelywhat exactly is meant by the term ‘service sector’? This question can be answeredsuperficially by arguing that any firm which is included within Standard IndustrialClassification categories 6 to 9 is a service sector firm SIC sector 6 comprises hotels andcatering and distribution (both retail and wholesale), 7 comprises transport and distribution,

8 comprises banking, finance, insurance, business services and leasing, and 9 comprises

‘other’ services Immediately, the heterogeneous nature of the service sector becomesapparent This heterogeneity makes generalisations about the services difficult withinempirical analyses, unless care is taken to use accurate industry controls and a samplerepresentative of all service sector firms To complicate matters further, as Quinn (1992)states, a great number of people working for manufacturing companies are in factperforming ‘service’ related functions, such as personnel, sales and marketing, finance, legalwork, secretarial work, cleaning and catering Indeed, Quinn estimates that as much as 65 to

75 per cent of the activity within ‘manufacturing’ firms is actually service related The

definition of a service based firm or a service based job, is therefore not as straightforward as

f a c e d b y b a n k s a n d h o t e l s m ay r e s u l t i n d i f f e r e n t a p p r o a c h e s t o H R M

b e i n g t a k e n I n t e s t i n g t h e i m p a c t o f a r a n g e o f e x t e r n a l c o n t i n g e n c i e s

s u c h a s p ro d u c t a n d l a b o u r m a r k e t s o n p o l i c y c h o i c e, a g e n e r i c ‘ l u m p i n gtogether’ of ser vice fir ms could easily result in generalisations, over sights

A s s t a t e d by L u c a s ( 1 9 9 5 : 1 4 ) , a b o dy o f l i t e r a t u r e h a s d eve l o p e d s h ow i n g

t h e s e c t o r t o b e s o m e h o w ‘ d i f f e r e n t ’ , b e i n g c h a r a c t e r i s e d b y a d h o c

m a n a g e m e n t , a l a c k o f t r a d e u n i o n s a n d h i g h , p o s s i b l y u n a v o i d a b l e

l a b o u r t u r n o v e r A v i e w c o m m o n l y e x p r e s s e d a m o n g h o t e l m a n a g e r saccording to Mullins (1993:1), is that these key fundamental organisational

w i t h i n w h i c h t o l o c at e a n a ly s e s o f t h e h o t e l i n d u s t r y, t h e r e w i l l n o l o n g e r

b e a ny j u s t i f i c a t i o n t o e i t h e r m a r g i n a l i s e h o t e l i n d u s t r y r e s e a r c h i n t o

specialist industr y jour nals, or to ignore HRM theor y within hotel industr y

e m p i r i c a l a n a l y s e s

The human resource management model

As the aim of this book is to assess the relevance of HRM within a hotel industry context, it

is necessary at the outset to provide a definition of HRM The definition used here draws

strongly on the models presented by Beer et al (1984), Guest (1987) and Walton (1985).

These models typify the prescriptive solutions offered in response to new challenges it isargued that companies have faced since the end of the 1970s and the early 1980s As stated

by Piore and Sabel (1984), the conditions that enabled stable, mass production systems tothrive in the past, no longer exist For example, global competition has increased, productlife-cycles have shortened, product markets have become increasingly differentiated andincreasingly turbulent, and consumer tastes have become increasingly sophisticated Inaddition, competition from low-wage developing countries now precludes the possibility ofcompetition on price or cost factors (Beaumont, 1993:24)

As suc h , it is argued that Wester n companies have been under increasing

p re s s u r e t o s e e k a n ew a p p ro a c h , i nvo l v i n g a re - f o c u s i n g o f a c t i v i t i e s o n t othe production of hi-tec h , high value-added products Rather than focusing

s i m p ly o n p ro d u c t i v i t y a n d c o s t f a c t o r s a l o n e, c o m p a n i e s mu s t n ow e n s u rehigh quality production, a high level of innovation and production flexibility,

i n o r d e r t o b e a bl e t o t a k e a dva n t a g e o f h i g h e r va l u e - a d d e d n ew m a r ke tnic hes, as and when they emerge The new approac h to HRM that companies

of standardised goods for large and stable markets, will no longer be adequate

It is no longer sufficient to view worker s as unthinking automatons following

o r d e r s l a i d d ow n by m a n a g e m e n t H e n c e, a l l o f t h e m o d e l s o f H R M s t re s sthe need to generate employee commitment to quality, to encourage worker s

to take responsibility for quality, to develop systems through which employees

c a n c o n t r i b u t e t o t h e p ro c e s s o f c o n t i n u o u s i m p rove m e n t , a n d t o c r e at e

an environment where worker s feel confident to be innovative and cre ative

T h e e m p h a s i s i s i n c r e a s i n g ly o n w h at B ly t o n a n d Tur n b u l l ( 1 9 9 2 : 4 ) re f e r

t o a s ‘ re l e a s i n g u n t a p p e d r e s e r ve s o f h u m a n r e s o u r c e f u l n e s s ’ , a n d g e t t i n g

wo r ker s t o g o ‘ b eyo n d c o n t r a c t ’ — g o i n g t h e e x t r a m i l e f o r t h e c o m p a ny.

G e t t i n g t h e ‘ p e o p l e ’ s i d e o f t h e o r g a n i s at i o n r i g h t i s t h e r e f o re s e e n a s

t h e key t o t h e a c h i eve m e n t o f c o m p e t i t i ve a dva n t a g e

A f u r t h e r s o u r c e o f p o t e n t i a l c o m p e t i t i ve a d va n t a g e i s p r ov i d e d by t h e

i n i m i t a b i l i t y o f h u m a n r e s o u r c e s y s t e m s A s t h ey m u s t t a ke i n t o a c c o u n tcomplex issues of power and resistance to c hange, effective human resource

s y s t e m s a r e e x t re m e ly d i f f i c u l t t o c o py B y c o m p a r i s o n , o t h e r r e s o u r c e savailable to the fir m, suc h as tec hnology, marketing, eng ineer ing and financial

s y s t e m s , a r e a l l re p l i c a bl e ( B e c ke r a n d G e r h a r t , 1 9 9 6 : 7 8 1 ) I f c o m p e t i t i ve

a dva n t a g e i s g e n e r at e d a l o n g a ny o n e o f t h e s e d i m e n s i o n s , g a i n s wo u l d b e

s h o r t - l i ve d a s c o m p e t i t o r s wo u l d b e a bl e t o c o py t h e s y s t e m s d eve l o p e d Being more difficult to mimic , human resource systems are therefore capable

o f t h e s e g o a l s T h e m o d e l s p re s e n t e d by B e e r e t a l ( 1 9 8 4 ) , G u e s t ( 1 9 8 7 )

a n d Wa l t o n ( 1 9 8 5 ) a l l m a ke t h i s p o i n t Fo r e x a m p l e, Wa l t o n ( 1 9 8 5 ) s t a t e s

t h at c e n t r a l t o t h e H R M p h i l o s o p h y s h o u l d b e t h e b e l i e f t h at e m p l oye ecommitment will lead to enhanced perfor mance The impor tance of eliciting

wo r k f o r c e c o m m i t m e n t i s a l s o o n e o f t h e H R o u t c o m e s s t re s s e d w i t h i n

t h e m o d e l p r e s e n t e d by B e e r a t a l ( 1 9 8 4 ) T h i s m o d e l a l s o s t r e s s e s t h e

i m p o r t a n c e o f c o m p e t e n c e ( i n t e r m s o f a t t r a c t i n g, ke e p i n g a n d d eve l o p i n g

people with requisite skills and knowledge), cong r uence (the minimisation

o f c o n f l i c t b e t we e n i n t e r e s t g r o u p s ) a n d c o s t e f f e c t i ve n e s s ( b o t h f o r t h e

o r g a n i s at i o n , t h e i n d i v i d u a l a n d s o c i e t y a s a w h o l e ) T h e H R g o a l s w i t h i n

t h e G u e s t ( 1 9 8 7 ) m o d e l a r e — o n c e a g a i n — h i g h c o m m i t m e n t , f u n c t i o n a land organisational flexibility, high quality (in ter ms of recr uiting and retaining

s k i l l e d a n d m o t i vat e d e m p l oye e s , p u bl i c i m a g e a n d j o b p e r f o r m a n c e ) , a n dfinally, strateg ic integ ration (the high profile accorded to HR issues within

t h e bu s i n e s s s t r a t e g y a n d t h e i n c o r p o r at i o n o f a n H R M p e r s p e c t i ve w i t h i nline management decision-making) This latter issue is also stressed by Storey(1992:27), who states that line management should recognise the impor tance

o f H R M a n d e n g a g e i n b e h av i o u r a n d d e c i s i o n - m a k i n g w h i c h r e f l e c t s t h i s.HRM should be the intimate concer n of line manager s They should ‘own’,

i m p l e m e n t a n d a c t i n a c c o r d a n c e w i t h H R M p r i n c i p l e s

The HR outcomes are therefore seen as the pr imar y or fir st order goals

of the organisation, which, if achieved, will lead to a considerable organisational

p ayo f f L o o k i n g f i r s t a t t h e g o a l o f c o m m i t m e n t , G u e s t ( 1 9 8 7 ) a r g u e s t h at

c o m m i t t e d e m p l oye e s w i l l b e m o re s a t i s f i e d , m o r e p ro d u c t i ve a n d m o r e

a d a p t a bl e, m o re w i l l i n g t o a c c e p t o r g a n i s a t i o n a l g o a l s a n d va l u e s , a n d t oexer t ‘extra-role’ effor t on behalf of the organisation Committed worker s

a r e a l s o m o r e l i ke ly t o m a ke e f f e c t i ve c o n t r i b u t i o n s w i t h i n c o n t i n u o u simprovement processes Moreover, self-directing workers need less super vision,

so cutting overheads in ter ms of manager ial headcount becomes a possibility.Also, if the organisation ac hieves a coincidence of interest between worker sand manager s, organisational c hange is less likely to be viewed with suspicion

Achieving human resource outcomes

While the achievement of a set of HR outcomes is seen as the precursor to higherperformance within models of HRM, in order to achieve these HR outcomes,organisations have at their disposal a range of HR practices, relating to recruitment, jobdesign, pay systems, communication and training Particu-larly emphasised within theHRM literature is the importance of the principle of reciprocity within the design of

these HR practices If workers are to be expected to be committed to company goals,

to be flexible, and to contribute towards continuous improvement processes, thecompany must provide in return fair treatment, a commitment to employment securityand to career development, and a removal of status differences between workers andmanagers, for example This is an essential principle Workers cannot be expected to becommitted to the organisation, and play a part in business improvement, unless theorganisation is prepared to make a commitment back

HRM—its relevance to the hotel industry?

Turning to the hotel industry, the main issue of consideration is whether or not thephilosophy or principles underlying the models of HRM discussed here, and the practicesstressed within those models, are of relevance In other words, are there performance gains

to be made by adopting the philosophy that as human resources are the key strategic leverwithin the organisation, competitive advantage is dependent upon the achievement of certain

HR goals? In turn, is the achievement of these HR goals dependent upon the adoption of acoherent, strategically integrated package of innovative HRM practices? These are among thecentral questions that will test the validity of HRM as a concept within the industry.However, t h e re l eva n c e o f H R M w i t h i n t h e h o t e l i n d u s t r y i s n o t s i m p ly

d e p e n d e n t u p o n a n a n a ly s i s o f t h e e x t e n t t o w h i c h e s t a bl i s h m e n t s h ave

a d o p t e d t h e a p p r o a c h e s a s e s p o u s e d w i t h i n t h e m o d e l s o f H R M d i s c u s s e dabove The mainstream HRM literature contains within it a series of asser tions

i n r e l a t i o n t o a r a n g e o f fa c t o r s t h a t p o t e n t i a l ly i n f l u e n c e t h e a p p ro a c hthat a company takes to HRM A test of the relevance of HRM within hotels

mu s t a l s o t h e r e f o re t e s t w h e t h e r t h e i n f l u e n c e s o n H R M d e c i s i o n - m a k i n gdebated within the mainstream literature have the anticipated impact within

a h o t e l i n d u s t r y c o n t e x t T h e f o l l ow i n g s e c t i o n s c o n s i d e r t h e i n f l u e n c e s

a s d i s c u s s e d w i t h i n t h e m a i n s t r e a m l i t e r at u r e

Factors influencing approaches taken to HRM

Situational contingency approaches to HRM—the impact of

product markets

Product markets are seen as particularly influential within the mainstream literature indetermining the approach to HRM that companies are likely to adopt The approach to HRMdescribed above is all very well where a firm is pursuing a strategy producing high value-added goods or services in a knowledge-based industry, for example (Legge (1995:67)quoting Capelli and McKersie (1987:443–4)) However, as Legge continues, what ofsituations where the firm is competing within a labour-intensive, high-volume, low-costindustry generating profits through increasing market share by cost leadership? In suchorganisations, employees are likely to be seen as a variable cost that needs to be minimised

As such, the approach to HRM described within the models presented above may only beapplicable in certain product market environments In other situations, a ‘hard’ approach toHRM emphasising a quantitative, calculative management of headcount might be moreappropriate As Boxall and Dowling (1990:202) state, the full utilisation model of HRM isbut one approach to the management of human resources It is not generic as it excludes allapproaches where employees are considered to be expedient, exchangeable factors ofproduction

T h i s p o i n t i s m a d e w i t h i n a r a n g e o f t y p o l o g i e s p re s e n t e d by M i l e s a n dSnow (1984), Sc huler (1989), Sc huler and Jac kson (1987) and Tic hy, Fombr unand Devanna (1982) Within these ‘situational contingenc y’ models of humanresource management, the key message is that HRM strategy should suppor t,

o r f i t b u s i n e s s s t r a t e g y A s s u c h , w h e t h e r o r n o t t h e a p p ro a c h t o H R M

descr ibed by Beer et al (1984), Guest (1987) and Walton (1985) is appropr iate

should be contingent upon the business strategy of the organisation, whic h

in tur n should be dependent upon the nature of the product market withinwhich the organisation is competing These approaches are therefore underpinned

by w h a t E va n s a n d L o r a n g e ( 1 9 8 9 ) d e s c r i b e a s a ‘ p r o d u c t m a r ke t l o g i c ’

s u c h a s j o b p r e s c r i p t i o n , a h i g h d e g r e e o f s p e c i a l i s at i o n , m i n i m a l t r a i n i n gand development and a high deg ree of monitoring The HR strategy appropriate

va r i a ble T h e a p p ro a c h t o H R M s h o u l d va r y d e p e n d i n g u p o n w h e t h e r t h efir m is a prospector (highly innovative), an analyser (moderately innovative)

o r a d e f e n d e r ( r a r ely i n n ovat i ve ) T h e m o re i n n ova t i ve t h e a p p r o a c h t ostrategy, the more appropr iate developmental approac hes to HRM become.

An alter native approac h is taken by Koc han and Barocci (1985) and Tic hy,

p at t e r n s w i t h i n t h e i r m o d e l w i t h r e f e r e n c e t o c o m p e n s at i o n a n d b e n e f i t s ,

t r a i n i n g a n d d e ve l o p m e n t a n d l a b o u r re l a t i o n s S i m i l a r ly, T i c hy, Fo m b r unand Devanna (1982) focus on the way in whic h the str uctures of businesses

c hange as they develop The appropr iate approac hes to selection, appraisal,rewa r d s a n d d eve l o p m e n t w i l l c h a n g e a s t h e o r g a n i s at i o n p a s s e s t h r o u g hsingle product, g rowth by acquisition of unrelated businesses, diver sification

a n d mu l t i - n a t i o n a l p h a s e s

Product markets are therefore viewed as instr umental within the mainstream

H R M l i t e r a t u re i n d e t e r m i n i n g t h e a p p r o a c h t o H R M t h at c o m p a n i e s a r elikely to adopt Within the context of the hotel industry, being a consumer

s e r v i c e, i t wo u l d b e s e n s i b l e t o hy p o t h e s i s e t h at p r o d u c t m a r ke t s i g n a l swill also prove to be highly influential However, it is by no means a foregone

c o n c l u s i o n t h at h o t e l s f a c e d w i t h p a r t i c u l a r m a r ke t d e m a n d s w i l l c h o o s e

to meet those demands in the manner predicted by the situational contingenc y

m o d e l s A s a r g u e d a b ove, muc h H R M t h e o r i s i n g h a s t a ke n p l a c e w i t h i n a

m a n u f a c t u r i n g p a r a d i g m T h e re i s n o p a r t i c u l a r r e a s o n w hy, t h e r e f o r e, t h etec hniques widely held as appropr iate to a quality enhancer business strategywithin manufactur ing will be deemed appr opr iate to a ser vice-based quality

e n h a n c e r s t r at e g y Fo r e x a m p l e, i t m ay n o t n e c e s s a r ily b e t h e c a s e t h a t

t h e e n h a n c e m e n t o f c o m m i t m e n t i s c e n t r a l t o t h e a c h i eve m e n t o f q u a l i t y

i n a s e r v i c e c o n t e x t , a n d eve n i f i t i s , t h e H R M t e c h n i q u e s f o r m a x i m i s i n gcommitment in hotels may well differ from those used within a manufactur ingsetting Therefore, even if hotels emphasise the impor tance of product marketswithin their business strategy, it remains to be seen whether the HR strategy

a d o p t e d t o a c h i eve t h e d e m a n d s o f a g i ve n b u s i n e s s s t r at e g y w i l l b e a s

p r e d i c t e d w i t h i n t h e s i t u a t i o n a l c o n t i n g e n c y m o d e l s o f H R M

T h e s i t u at i o n a l c o n t i n g e n c y m o d e l s r a i s e a f u r t h e r i m p o r t a n t q u e s t i o n ,namely, the approac h to business strategy most likely to lead to competitivesuccess in the hotel industr y product market On this issue, muc h depends

u p o n e m e r g i n g c o n s u m e r t r e n d s Wi t h i n t h e m a i n s t re a m l i t e r a t u re, t h e r e

is considerable debate Piore and Sabel (1984) in their flexible specialisation

t h e s i s , a r g u e t h at w i t h t h e s at u r a t i o n o f c o n s u m e r g o o d s m a r ke t s i n h o m emarkets, with consumer tastes becoming increasingly sophisticated and with

t h e e m e r g e n c e o f l ow - w a g e i n d u s t r i a l e c o n o m i e s i n S o u t h E a s t A s i a a n d

L a t i n A m e r i c a , We s t e r n c o m p a n i e s h ave h a d t o re f o c u s t h e i r s t r a t e g i e s o nthe high quality production of specialised or customised goods and ser vices.Similarly, Walton (1985) argues that the conditions enabling control models

o f m a n a g e m e n t t o t h r iv e n o l o n g e r e x i s t P ro d u c t m a r ke t s a r e n o l o n g e r

c h a r a c t e r i s e d by a s t a bl e l eve l o f d e m a n d f o r m a s s - p ro d u c e d s t a n d a r d i s e dproducts and ser vices Increasingly, instability, argues Walton, is beg inning

t o a f f e c t a l l o r g a n i s at i o n s H e n c e a p re m i u m i s i n c r e a s i n g ly at t a c h e d t o

re s p o n s i ve n e s s t o c u s t o m e r n e e d s

Howeve r, t h i s a r g u m e n t i s n o t w i t h o u t i t s c r i t i c s H y m a n ( 1 9 9 1 ) a n dPoller t (1991) argue that the extent of product market c hange is over stated.For example, muc h of the success of Japanese consumer electronics companies

concer ning the univer sal applicability of the Beer et al (1984), Guest (1987)

a n d Wa l t o n ( 1 9 8 5 ) m o d e l s o f H R M w i t h i n t h e h o t e l i n d u s t r y

The strategy-making process

While product markets are viewed as the key determinant of HRM within the situationalcontingency models discussed above, there is a tacit assumption within the situationalcontingency typologies that the meshing of business strategy and HR strategy is astraightforward, uncomplicated process However, several writers argue that this is a

somewhat stylised view, which fails to take into account a range of factors that might hindersuch a process of integration As such, product markets may not be as deterministic asimmediately assumed.

Fir stly, Legge (1995), drawing on the work of Whittington (1993), argues

t h at i t i s o n ly p o s s i bl e t o m at c h H R M p o l i c y t o b u s i n e s s s t r at e g y w h e r estrategy reflects a ‘classical deliberate’ approac h emerg ing from a conscious,rational decision-making process Where strategy is evolutionary or emergent,

o r w h e r e i t i s p ro c e s s u a l , e m e r g i n g i n s m a l l s u c c e s s i ve s t e p s , t h e re i s n olong-ter m for mulated business strategy to whic h HRM polic y can be matc hed.Therefore, situational contingenc y models are only able to make predictionsconcer ning the appropr iateness of different approac hes to HRM in companies

S i m i l a r ly, B e a u m o n t ( 1 9 9 3 : 1 8 ) c o m m e n t s t h at m a ny c o m p a n i e s i n t h e U Khave b e e n p u r s u i n g a n i n c o n s i s t e n t s e t o f a c t i v i t i e s ove r t h e 1 9 8 0 s a n dinto the 1990s, involving downsizing, lay-offs and redundancies, while simultaneously

e m p h a s i s i n g p r o d u c t o r s e r v i c e q u a l i t y T h e s e a c t i v i t i e s d o n o t a d d u p t o

a consistent, coherent strategy Thus, to use Mintzberg’s (1987) ter minology,strategy in the UK has tended to reflect ad-hoc for mation rather than plannedfor mula tion If the fundamental touc hstone of HRM is, as stated by Keenoy(1990), that it is meshed with business strategy, what is HRM meshed with

b e h av i o u r s a s s u m e s t h a t s e n i o r m a n a g e m e n t h ave b e e n a b l e t o s c a n t h e

e nv i ro n m e n t f o r key s i g n a l s , h ave a n a ly s e d t h o s e s i g n a l s , a n d t h e n h ave

b e e n w i l l i n g a n d a bl e t o re f o r mu l at e o r g a n i s a t i o n a l s t r u c t u re s T h i s , t h eystate, is a ‘daunting and demanding list of prerequisite steps for any g roup

it is more likely to be pur suing practices associated with an HRM approac h,

o n t h e p r i n c i p l e t h a t i t i s t h e p e r s o n n e l d e p a r t m e n t , o r t h e m a n a g e r w i t hresponsibility for per sonnel who is the most likely to encourage or c hampion

HRM initiatives Similar arguments are presented by Marg inson et al (1993),

using data from the 1992 Warwic k Company Level Industr ial Relations Sur vey

w i t h b u s i n e s s s t r at e g y ? A l s o, t h e a b i l i t y o f m a n a g e m e n t t o h a n d l e c h a n g e

within the hotel industry, and the relative power and influence of the per sonnelfunction may influence the approach taken to HRM within the sector Answer s

t o t h e s e q u e s t i o n s w i l l d e t e r m i n e w h e t h e r i s s u e s c o n c e r n i n g t h e s t r a t e g y

-m a k i n g p ro c e s s , v i ewe d a s i n f l u e n t i a l w i t h i n t h e -m a i n s t r e a -m l i t e r a t u re,

s h o u l d a l s o b e d e e m e d i m p o r t a n t w i t h i n t h e h o t e l i n d u s t r y

Workforce characteristics

Several arguments are made within the HRM literature relating to the potential impact of

workforce characteristics on HRM policy choice Firstly, Beer et al (1985:25) raise the

contention that the motivation, capacities and potential of the workforce will restrict policychoices available to management Similarly, Guest (1987) states that many workers will not wish

to show high intrinsic motivation at work, and thus attempts to apply innovative HRM techniques

to an established workforce will not always be practical (Guest 1987:516) The adoption of HRMwill therefore be restricted if the workforce proves resistant to change, or where workingpractices are entrenched The take up of HRM may be proportionately higher on greenfield siteswhere management are given a clean slate, and where they do not have to fight against existingattitudes and existing systems of industrial relations (Guest and Hoque, 1993)

Relating to workforce skill levels, Beaumont (1993:26–7) and Keep (1989)argue that the deficiencies in skills training and in vocational education inthe UK, as highlighted by Finegold and Soskice (1988), will potentially hamperthe introduction of HRM Suppor ting this view, Hendry and Pettig rew (1990:28) refer to researc h by Daly, Hitc hens and Wagner (1985) and Steedmanand Wagner (1987) which examines matc hed pairs of Ger man and British metal-working and kitc hen fur niture manufacturer s The researc h demonstrated thatthe lac k of availability of worker s with high-level skills in the UK influencedfir ms’ decisions to concentrate production on the c heaper, mass-producedend of the market

Existing workforce characteristics are therefore seen as a critical determinant

of the approac h taken to HRM within the mainstream HRM literature It islikely that workforce c haracter istics will be viewed as an equally impor tantdeter minant within the hotel industr y To assess this issue, it will be necessar y

to evaluate the extent to whic h the hotel industry workforce is likely to proveamenable, or is likely to respond to HRM It may be the case, for example,that overall skill and training levels are too low for an HRM approac h toprove viable Similarly, resistance to c hange may present a problem Thesequestions will need to be addressed if it is to be ascer tained whether thearguments concerning the influence of workforce characteristics on the approach

taken to HRM discussed within the mainstream literature are relevant withinthe hotel industr y.

The impact of trade unions

It is commonly argued that a trade union presence will militate against the adoption ofHRM Where a union is present, union officials might resist the introduction of innovativeHRM practices In particular, they are likely to resist practices emphasising directcommunication between management and employees, thus bypassing traditional unioncollective bargaining channels They are also likely to resist practices attempting to elicitemployee commitment to the organisation and hence result in a reduction of the perceivedneed for a trade union amongst the workforce HRM practices, Beaumont (1992:35) claims,with their emphasis on teamwork, flexibility, employee involvement, participation andcommitment, ‘drive a wedge’ between unions and their members and is therefore logical forunion officials to resist the introduction of such practices

c hampion the introduction of a more strateg ic HRM approac h, instr umentallyencourag ing management and assisting them in the implementa tion of high-

o f t h e h o t e l i n d u s t r y, i t w i l l b e s o m ew h at d i f f i c u l t t o t e s t e m p i r i c a l ly t h e

i m p a c t o f t r a d e u n i o n s o n H R M , g i ve n t h e l a c k o f re c o g n i s e d t r a d e u n i o n swithin the industr y Never theless, it will be possible to develop hypotheses

as to whether manager s take advantage of the non-union nature of the industry

to exper iment with new approac hes to HRM or to adopt labour-intensifying

o r c o s t - c u t t i n g p r a c t i c e s

The impact of labour markets

Beer et al (1985:31–2) argue that where labour market conditions are tight, companies are

under increased pressure to ensure the recruitment and retention of the most qualified andcapable employees As such, there will be a greater emphasis on policies relating to wages,career advancement and working conditions likely to attract and keep such staff Similarly,Ramsay (1991) claims that under tight labour market conditions, managers threatened withpotential control loss will attempt to incorporate the workforce by allowing them toparticipate in management decision-making, thus stifling conflict As soon as conditionsallow, however, they return to a more direct approach As far as the hotel industry isconcerned, this debate raises the question as to whether there is any labour market pressure

on management to adopt practices that encourage the recruitment and retention of the mostable staff, or to adopt practices aimed at averting workforce recalcitrance

Organisation characteristics

It is widely acknowledged that in very small establishments, formal HRM practices may beinappropriate For example, effective communication may be achieved via informal face-to-face contact rather than via expensive and complex formal communication techniques Assuch, HRM may be inappropriate within small seaside resort hotels employing only a handful

of staff It will therefore be necessary to take into account establishment size when assessingthe extent to which HRM is practised within the hotel industry, or at least the level withinthe organisation at which it is likely to be practised

National ownership

A body of literature has developed concerning the relationship between ownership andHRM Examples include the research on Japanese management (for example Oliver andWilkinson, 1989, 1992; Trevor and White, 1983; Wickens, 1987; Wood, 1996), whichdemonstrates that Japanese firms, on the whole, have adopted a more strategic approach toHRM than have their UK-owned counterparts More recently, attention has focused on

establishments from other national origins For example, Beaumont, Cressey and Jakobsen(1990), Guest (1996) and Guest and Hoque (1996) find a surprising lack of interest intechniques associated with an HRM approach amongst German-owned firms operatingwithin the UK The impact of national ownership on the approach taken to HRM within thehotel industry is worthy of further consideration, particularly if a relationship between HRMand performance can be identified.

Impact of financial markets

According to Kirkpatrick, Davies and Oliver (1992:132) and Purcell (1989: 69–71), therehas been a rapid trend towards diversification and divisional-isation within the UK This isbecause in the UK, the stock market emphasis on short-term financial results has encouraged

a policy of decentralisation, as companies attempt to ensure a regular positive cash-flow byoperating in a range of product markets, all of which will mature at different times (Sissonand Storey, 1990) This in turn has led to the adoption of M-form company organisation,which is seen as the best way of managing a diversified business The enterprise is thereforenot seen as a unified business but as a collection of businesses

However, M-for m str uctures render infeasible the concept of a cor wide HR strategy This is because eac h segment of the business will require

porate-d i f f e re n t a p p r o a c h e s t o H R M , porate-d e p e n porate-d i n g u p o n t h e p r o porate-d u c t m a r ke t a n porate-d

u p o n t h e s t a g e i n t h e p r o d u c t l i f e - c y c l e r e a c h e d H R M d e c i s i o n - m a k i n g

is therefore devolved to divisional level In the absence of an HRM presence

at cor porate level however, financial cr iteria, management accounting, tighter

to develop unit level HR strateg ies without cor porate management suppor t,

a n d a l s o n o t e s t h a t c o m p e t i t i o n f o r i nve s t m e n t f u n d s w i t h i n a g ro u p i s

o f t e n d e p e n d e n t u p o n t h e a b i l i t y t o d e m o n s t r a t e t h a t a dva n c e s h ave b e e n

m a d e i n t e r m s o f H R M

Ne ve r t h e l e s s , t h e re l e va n c e o f t h i s d e b a t e t o t h e h o t e l i n d u s t r y w i l ldepend upon whether there is any pressure from decentralisation as described

by A r m s t ro n g ( 1 9 8 9 ) , K i r k p a t r i c k , D av i e s a n d O l i ve r ( 1 9 9 2 ) a n d P u r c e l l( 1 9 8 9 ) w i t h i n t h e h o t e l i n d u s t r y I f s o, i t w i l l a l s o b e p o s s i bl e t o t e s t t h e

e x t e n t t o w h i c h t h a t p re s s u r e i s l i kely t o r e s t r i c t t h e a d o p t i o n o f a n H R M

a p p ro a c h

Summary

This chapter has developed a framework that outlines the models of HRM as presented by

Beer et al (1984), Guest (1987) and Walton (1985), and highlights the factors that are likely

to encourage or restrict the implementation of the approach to HRM as encapsulated withinthose models The framework demonstrates that the likely adoption of HRM is dependentupon a range of influences relating to product markets, the resourcing of the personneldepartment, the ability of managers to handle change effectively, workforce characteristics,union presence, labour market conditions, organisational size, national ownership andfinancial markets

T h e a i m o f t h i s b o o k i s t o t e s t t h e va l i d i t y o f t h i s f r a m ewo r k w i t h i n a

s e r v i c e i n d u s t r y c o n t e x t , n a m e ly t h e h o t e l i n d u s t r y T h e f i r s t t e s t o f t h erelevance of HRM in the hotel industry concer ns the extent to whic h practicesassociated with an HRM approac h have been adopted The second test concer ns

t h e f a c t o r s t h a t a r e l i kely t o i n f l u e n c e t h e a p p ro a c h t a ke n t o H R M , i npar ticular, whether the factor s viewed as influential within the mainstream

H R M l i t e r at u r e a r e a l s o v i ewe d a s i m p o r t a n t w i t h i n t h e h o t e l i n d u s t r y I fmanager s within the industr y have to contend with a range of contingencies

t h e w i d e r a d o p t i o n o f H R M i n t h e i n d u s t r y i f i t c a n b e d e m o n s t r a t e d t h at

H R M h a s a c o n t r i bu t i o n t o m a ke t o s u p e r i o r p e r f o r m a n c e

The book tests these issues in the following manner The following c hapter

e x a m i n e s t h e f a c t o r s t h a t w i l l p o t e n t i a l ly i n f l u e n c e t h e a p p ro a c h t a ke n

t o H R M w i t h i n t h e h o t e l i n d u s t r y, a n d d e ve l o p s hy p o t h e s e s re l a t i n g t o

t h e l i ke ly i m p a c t o f t h e s e f a c t o r s T h i s c h a p t e r a l s o d eve l o p s hy p o t h e s e sconcer ning the impact of factor s not discussed within the mainstream literature

t h at a r e c o n s i d e re d i m p o r t a n t w i t h i n t h e h o t e l i n d u s t r y I n d r aw i n g o u tthe differences and similarities between the factor s seen as potential influences

o n t h e a p p ro a c h t a ke n t o H R M d i s c u s s e d w i t h i n t h e t wo s e t s o f l i t e r a t u re,this is a key c hapter in deter mining the applicability of HRM theor y within

a h o t e l i n d u s t r y c o n t e x t

The subsequent chapters test the hypotheses developed, taking a quantitativeempir ical approac h to examine the extent to whic h HRM has been adopted,the factor s influencing the approac h taken to HRM, and also the relationship

b e t we e n H R M a n d o r g a n i s at i o n a l p e r f o r m a n c e C h a p t e r 3 i n t ro d u c e s t h e

e m p i r i c a l u n d e r p i n n i n g o f t h e b o o k , n a m e ly t h e 1 9 9 5 S u r vey o f H u m a n

R e s o u r c e M a n a g e m e n t i n t h e H o t e l I n d u s t r y D at a g e n e r a t e d w i t h i n t h i ssur vey are compared with data from a sample of manufactur ing establishments,

t o a s s e s s f r o m a c o m p a r at i ve p e r s p e c t i ve t h e e x t e n t t o w h i c h p r a c t i c e s

a s s o c i a t e d w i t h a n H R M a p p r o a c h h ave b e e n a d o p t e d w i t h i n t h e i n d u s t r y.Chapter 4 uses data from the 1995 Sur vey of Human Resource Management

i n t h e H o t e l I n d u s t r y t o e x a m i n e e m p i r i c a l ly t h e f a c t o r s i n f l u e n c i n g t h e

a p p r o a c h t a ke n t o H R M C h a p t e r 5 p r ov i d e s a c o r ro b o r at i o n o f t h e r e s u l t s

ac h i eve d w i t h i n C h a p t e r s 3 a n d 4 f r o m a q u a l i t at i ve p e r s p e c t i ve.Chapter 6 looks at perfor mance issues A number of studies have recently

Note

1 Littler (1989:19) estimates that in 1982 only about 1.4 million people worked in a massproduction industry, and the number of direct workers on the line was only half thatnumber

2 Is there a role for HRM

in the hotel industry?

This chapter has two main aims The first is to examine existing character-isations of HRM in the hotelindustry The industry has been conventionally characterised as labour intensive and exploitative, with therebeing little or no scope for developmental approaches to HRM, especially where more junior staff gradesare concerned In addition, hotel industry managers have often been accused of lacking long-term strategicvision

The second aim of the chapter is to begin to examine the factors that influencedecision-making in relation to HRM within the industry This will not only enablethe development of testable hypotheses concerning the factors that are likely toinfluence the approach taken to HRM within hotels, but it will also enable ananalysis of the extent to which the factors commonly seen as important influences

on HRM within the mainstream literature are also seen as important by hotel industryresearchers The extent to which there is common ground between the two is animportant test of the relevance of mainstream HRM theory within the hotel industry.Within the hotel industry literature, whether or not the influences discussedsuggest a potential role for HRM is by no means a clear-cut issue There are compellingarguments to suggest that tight cost control is essential if hotels are to remaincompetitively viable However, there are also equally compelling arguments that

as ser vice quality becomes increasingly important for competitive success, so doesthe need for a committed and motivated workforce, and management will not achievethis commitment if they treat their workers as disposable resources However, even

if ser vice quality is considered important, policy choice may be restricted by alack of workforce willingness to change, entrenched working patterns and employmentinstability, for example These arguments will be looked at in the second part ofthe chapter

The first section looks at the research under taken to date that c haracter ises

t h e m a n a g e m e n t o f h u m a n r e s o u r c e s i n t h e h o t e l i n d u s t r y

What characterises HRM in the hotel industry?

Considerable debate has emerged recently concerning the degree of experimentation withnew approaches to HRM within the hotel industry Conventionally, descriptions of theindustry have emphasised an autocratic management style and a reluctance on the part ofmanagers to allow employees any influence over work processes or their workingenvironment (Macfarlane, 1982:39) Management’s primary strategic control has tended toemphasise a tight control over costs

This conventional depiction is suppor ted by a number of empirical studies.For example, Guerrier and Lockwood (1989a:86–7) found that that where hotelshad experimented with joint consultative committees, project teams, staff developmentexercises and employee involvement, such initiatives had more to do with increasingmanagement control rather than developing a sense of commitment

Hales’ (1987) sur vey yielded encouraging results at first glance concerningthe extent to which HRM-type practices had been adopted Of the 32 establishmentswithin his sample, none had worker directors, only 22 per cent had autonomouswork groups and only 15 per cent used quality circles However, job rotationwas found in 55 per cent of hotels, job enlargement in 68 per cent, job enrichment

in 59 per cent, project teams in 68 per cent, and works councils in 43 per cent.These percentages, Hales (1987:263) concedes, might have been somewhat

h i g h , i n t h at o n ly t h o s e w i t h s o m e t h i n g t o r e p o r t m ay h ave re p l i e d t o t h equestionnaire More impor tantly though, a more in-depth analysis revealed

a considerable emphasis on labour intensification and a high degree of managerial

c o n t ro l A s b e c a m e e v i d e n t i n t h e 1 5 f o l l ow - u p i n t e r v i ew s , t h e m a n n e r

i n w h i c h t h e re s p o n d e n t s i n t e r p r e t e d t h e m e a n i n g o f t h e p r a c t i c e s a s ke d

a b o u t va r i e d g r e at ly I n s o m e e s t a bl i s h m e n t s , j o b r o t a t i o n s i m p ly m e a n tmanagement moving between depar tments Job enr ic hment and enlargementwer e, o n t h e w h o l e , u s e d t o g ive e x t r a r e s p o n s i b i l i t y t o s p e c i f i c s t a f f ,often management, or as a means of rationalising the management str ucture

in order to reduce headcount Individual development tended to be considered

o f m a n a g e m e n t t o a d m i t t h at t e c h n i q u e s we re u s e d f o r t h e s e p u r p o s e s.

A l s o, m o s t i n i t i at i ve s a p p l i e d e x c l u s i ve ly t o m a n a g e m e n t , t h e r e b e i n g ageneral perception that non-management employees did not want any g reater

h e a d c o u n t t o va r i at i o n s i n d e m a n d a s c l o s e ly a s p o s s i ble A f u r t h e r s t u dy

u n d e r t a ke n by G u e r r i e r a n d L o c k wo o d ( 1 9 8 9 b ) l o o ke d m o r e f o r m a l ly a tthe issue of functional and numer ical flexibility with reference to Atkinson’s( 1 9 8 4 ) c o re - p e r i p h e r y m o d e l T h ey f o u n d t h at m a n a g e m e n t a l o n e f i t t e d

t h e d e s c r i p t i o n o f ‘ c o m p a ny ’ c o re s t a f f — t h o s e w h o h a d c a re e r p ro s p e c t s ,were multi-skilled and were geographically flexible They found little evidence

wo r k i n g l e s s t h a n 1 6 h o u r s p e r we e k T h i s m ay p a r t ly h av e b e e n e x p l a i n e d

by t h e g row t h i n yo u n g wo r k er s i n t h e fa s t f o o d s e c t o r a n d t h e g row i n gpressure on young people such as students to join the labour market Nevertheless,

t h e t re n d t owa r d s t h e i n c r e a s e d u s e o f p a r t - t i m e wo r k i n g wo u l d s e e m t oindicate manage-ment’s penc hant for numerically flexible labour Suc h workingpatter ns enable wage bills to be reduced, as employer s can avoid both National

I n s u r a n c e c o n t r i b u t i o n s a n d a l s o t h e p rov i s i o n o f s t at u t o r y b e n e f i t s s u c h

a s m a t e r n i t y l e ave a n d s i c k p ay ( L u c a s , 1 9 9 3 : 2 5 )

However, while many studies under taken in the past have revealed little

i n t e re s t i n H R M i n t h e h o t e l i n d u s t r y, a g r ow i n g n u m b e r o f m o re re c e n tstudies are beg inning to suggest a different picture For example, Har r ington

a n d A ke h u r s t ( 1 9 9 6 ) f o u n d t h a t 8 7 p e r c e n t o f h o t e l s w i t h i n t h e i r s a m p l econsidered quality to be a strategic concer n, with 82 per cent having invested

re s o u r c e s t o t r a i n e m p l oye e s i n q u a l i t y - re l a t e d e n d e avo u r s A n a s t a s s ovaand Purcell (1995) found that manager s, par ticularly those in larger hotels,had moved away from a directive and autocratic style, towards a consultative

a p p r o a c h T h ey a l s o f o u n d m a n a g e r s t o h ave b e e n t r a i n e d i n To t a l Q u a l i t yManagement and regarding themselves as practising HRM rather than personnel

m a n a g e m e n t

I n a s i m i l a r ve i n , B u i c k a n d M u t h u ( 1 9 9 7 ) f o u n d w i t h i n t h e i r s u r vey

o f h o t e l s i n S c o t l a n d , t h a t t h e d e ve l o p m e n t o f i n t e r n a l l a b o u r m a r k e t s

a n d c a re e r d eve l o p m e n t h a d a s s u m e d a n i n c re a s e d i m p o r t a n c e Wat s o n a n dD’Annunzio-Green (1996), in their study of two large hotels, found appraisal

s y s t e m s , t r a i n i n g a n d d eve l o p m e n t , c o m mu n i c at i o n s y s t e m s a n d e x t e n s i ve

c o n s u l t a t i o n h a d b e e n i n t r o d u c e d i n o r d e r t o s u p p o r t a c u l t u re o f s e r v i c equality Gilber t and Guerrier (1997:122) argue that manager s have increasingly

t a ke n o n b o a r d n o t i o n s o f e m p ower m e n t a n d t e a m wo r k i n g a n d t h e n e e d

t o d evo l ve re s p o n s i b i l i t y t o l owe r l eve l s

Howeve r, r e f l e c t i n g t h e d eve l o p m e n t o f c o n s i d e r a bl e d e b a t e ove r t h eextent to whic h there has been c hange within the industr y in recent year s,

n o t a l l t h e r e c e n t a c c o u n t s d e m o n s t r at e a n i m p rove m e n t Fo r e x a m p l e,

Pr ice (1994:52) argues that there is a wor rying lac k of basic professionalism

i n t h e c o n d u c t o f p e r s o n n e l m a n a g e m e n t Wi t h i n h e r s a m p l e, o n ly 3 9 p e rcent refer red to all the ter ms and conditions stipulated in the Employment

Pr o t e c t i o n C o n s o l i d a t i o n A c t ( 1 9 7 8 ) , a n d o n ly 2 4 p e r c e n t re f e r re d t o a l lthe disciplinar y procedures in the Arbitration Conciliation Advisor y Ser vice(ACAS) code of practice Word-of-mouth contact remained the most commonsource of recr uitment for low-skill staff While Pr ice (1994) concedes that