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Why good human resource management is vital for small hotels

A vital aspect of providing high quality service in the hotel sector is the human resource
management (HRM) system employed in the hotels concerned. In most service industries, it
is HR that creates the organisations competitive advantage.

There is generally a worldwide view that the hotel and catering industry has a number
of personnel related problems and poor employment practices and conditions,
especially smaller hotels. Larger hotels have more advantage in human resource (HR)
recruitment and development, because the higher level of remuneration and benefit
that they can offer usually makes them the number one choice for highly competent
and skilled staff.
Many hotels justify the absence or neglect of HRM functions with the size of the
organization. Smaller hotels with limited financial resources claim to be restricted in
developing and implementing HR systems in comparison to larger hotels. It is a fact
that small and large organizations typically differ in terms of resources, money, and
time. Still, all businesseswhether small or largemust hire employees to run the
daily operations. Regardless of a hotels size, employees are vital assets. A wellestablished and maintained HR department offers a solid structure which is an
organizational advantage that is vital to success.

Small and medium size hotels may not function well without proper human resource management
practices. There is a need for small/medium sized hotels to use HRM practices that are cost effective
and less time consuming instead of the available sophisticated HRM systems. An effective human
resources practice by SMEs has the potential to help boost their growth and increase their success.
(Tounta, 2015)

2. Human Resource Management in the Indian Banking Sector


Efficient human resource management is one of the most essential requirements for
survival in this competitive world. In this paper, an attempt has been made to test
the hypothesis for administrative skills, competitive advantage and human resource
development (HRD) policies. This study reveals that Indian bank managers have

good administrative skills for industrial competitiveness. Also, they have good
administrative skills to manage HRD policies.
To bring out the best in a man is the essence of human resource development.
Simply speaking, Human Resource Development (HRD) is the process of increasing
the capacity of human resources through the development. Human Resource
Development is something that everyone does. Individuals do it as they work to
develop themselves; managers do it as they work to support others development
and the Human Resource Development staff does it, as they create the overall
development tools for an organization. Thus, it is a process of adding value to
individuals, teams and the organization as a human system.
The results of the study are in consonance with the studies quoted in the literature
review. However, despite the statistical sophistication of structural equation
modeling, this study has the major limitations as few of the lot of top management
participated in the study. Here, it is pertinent to mention that these people are
instrumental to develop policies and procedures for Administrative Skills, HR
Policies, and Competitiveness.
(Singh, 2013)

3. HRM PRACTICES IN SERVICE-BASED ORGANIZATIONS: A ROLE THEORY


PERSPECTIVE

Human resource management (HRM) practices are being increasingly treated


as dependent rather than independent variables. Whereas in the past
researchers focused almost exclusively on how changes in HRM practices
affect employee performance or satisfaction, researchers are now beginning
to ask how organizational conditions shape HRM practices (e.g., design,
staffing, performance appraisal, compensation, and training and
development). Examples of organizational conditions hypothesized to impact
HRM practices include strategy
Each of the five perspectives previously presented helps explain some of the
variation and similarity in HRM practices across organizations although
additional variation and similarity remain to be explained (Jackson, Schuler
and Rivero 1989). In presenting another perspective, the role theory
behavior perspective, the authors of this article hope to contribute in a
theoretical and empirical way to this growing body of research. The desired
goal is to develop a framework that can be used to explain individual
behavior in and across organizations by providing an explanation for inter-

organizational variations in the HRM practices that presumably shape


behavior.
Thus, in this particular case study the role behavior approach to explaining
the content of HR practices seems plausible. It also seems to be a potentially
useful way for organizations to make changes to improve the level of their
service quality. The implications for the practitioner are rather far reaching
and complement the approaches proposed by others

(Jackson & Schuler)

Often service companies tend to provide a commodity service offered by


many similar outfits. To differentiate themselves as the specialists in their
field, they attempt to manufacture a distinction for themselves, often by
stating they have a particular expertise or a unique approach to meeting
challenges and opportunities in their sector. Increasingly, this expertise is
communicated in blogs or newsletters.
HR needs to be proactive and come up with early interventions as for any organization to survive
during recession; the ability to retain its best people is must. During these days, HR people
sometimes even take the harsh decision of reducing the numbers and land up at downsizing. The
word downsizing is even taken as right sizing and optimizing but we may not know or ignore the
fact that neither the bad situation nor the good conditions lasts long.
1. Revised leave structure for all employees
2. Reduction in the different component of pay packages
3. Identify the non-value added activities and resources
4. Threats to employee emotional engagement
When the going is tough, it is a must for HRM and its managers to challenge the challenges and
the only remedy is just not mere downsizing however downsizing should be in dignified way.
Now the time is to implement new ideas, to change the HRM processes and to change the
procedures. This has to be done in a way that it cuts costs and motivates people. HR can focus on
the following things such as:

How to increase productivity and efficiency in the corporate sector?


How to reduce the benefits costs?
Redesign compensation structure?
How to retain and develop high potentials?
How to minimize the employee costs so as to avoid retrenchment?
(Prasad & Durga)

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