Apart from clearly-defined performance expectations of hotel employees, accurate job descriptions, and career opportunities, human resource managers in hotels, as their counterparts in other industries, need to become increasingly aware of other elements of an integrated human resource management strategy designed to meet corporate objectives and increasingly raise productivity, and thence profitability levels. These practices include job rotation, training and development, performance management, effective employee communication, rewards system, turnover and wastage analyses. The cardinal principle behind all these activities, however, is that they are effectively integrated within the mission/strategy of particular hotels and their clientele, responsive to their specialised labour markets (eg capital city, region) and economic conditions. It is insufficient, and unproductive, to regard any of these human resource management activities as a solution in itself for long-term profitability.
Job Rotation, Performance Management and Rewards Systems
Often based upon European or North American models, and sometimes encouraged by the approaches of hotel training schools, hotel occupations have traditionally been segmented into particular departments. Whatever progression has occurred, has largely focused on promotion within rather than across hotel departments. Thus housekeeping staff may be recruited at base level, and eventually rise through the various available supervisory levels in that department. Front-of-house, and food and beverage staff, similarly, largely remain within their original departments. Even within departments, staff may only progress through specific occupational routes (eg porter, porter supervisor, concierge) rather than generic departmental paths (eg porter, receptionist, front office manager). Whilst it is argued that this instils occupational depth and provides substantial experience, it may also fail to utilise employees’ broader skills, result in competitive segregation and act destructively toward productive teamwork perspectives.
A more productive approach to employee motivation and commitment, involving a perception that it is “… everyone else’s responsibility (apart from front line workers) … to, ‘serve’ those who directly serve the customer” (Heskett, 1990), will be enhanced by job rotation schemes, which provide both multi-skilling (for subsequent promotion and vacancy-filling options) and team-building opportunities. Job rotation schemes are currently in minimal use (less than 39.1% according to a recent survey (Nankervis, 1991). Perceptive human resource managers will use award restructuring negotiations to develop job rotation schemes in concert with other forms of multi-skilling, training and development programmes.
Performance management programmes appear to be increasing in use in the hotel industry, especially in its upper segments (see Figure 4). This is somewhat surprising, given the relative lack of both career and adequate remuneration plans, and may even be self-defeating if such programmes are not subsequently developed.
As already indicated, hotel salaries are generally far lower than average, even though they contribute significantly to overall operating costs. Award restructuring negotiations, as in the case of the Sheraton hotel chain, provide opportunities for modifications to penalty rates, and ultimately, holiday leave loadings, in return for increases in salary levels for most hotel occupations. Job stability, in terms of secure employment, career development, training programmes and less casualisation, may well compensate for continuing low levels of salary, especially if combined with increasing opportunities for self-development including multi-skilling. Over time, the add-on costs for full-time, as opposed to casual staff rates, may also prove both more productive and less costly.
The issues of differential rewards within occupational classifications on a performance-based system, and additional non-cash rewards (eg dinners, holidays, discounts, etc) may also contribute to ongoing performance and productivity, especially in occupations with little promotional opportunity.
Training and Development, Employee Communication
Recent developments in the establishment of a plethora of tourism training institutions and colleges, coupled with portable national competency standards for a variety of hotel occupations, will no doubt ensure a skilled pool of potential employees. Linking such training to individual occupational criteria, and supplementing it with thorough orientation programmes, on-the-job training modules and appropriate supervision, will no doubt fill this previous gap in human resource management for the hotel industry. These developments parallel the findings of the previously-mentioned United Kingdom-Germany study (Prais, 1989), which found that Germany’s productive edge was at least partly due to its nationally-accredited vocational training system.
Studies of some of the best United States and Australian hotels (Gray, 1992) also suggest that the cement which binds skilled and motivated employees to their organisation, who are thus more enthusiastic, more committed and potentially more productive than their competitors’ employees, is clear and ongoing communication between hotel managers and their employees. The “messages” sent through the host of human resource activities, strategies, policies and procedures need to be congruent and consistent, and might include promotion of mission statements, the nature of the physical working environment, plasticised credo cards, “management by walking around”, staff-supervisor meetings, active (and positive) use of guest feedback, and grievance mechanisms.
Apart from clearly-defined performance expectations of hotel employees, accurate job descriptions, and career opportunities, human resource managers in hotels, as their counterparts in other industries, need to become increasingly aware of other elements of an integrated human resource management strategy designed to meet corporate objectives and increasingly raise productivity, and thence profitability levels. These practices include job rotation, training and development, performance management, effective employee communication, rewards system, turnover and wastage analyses. The cardinal principle behind all these activities, however, is that they are effectively integrated within the mission/strategy of particular hotels and their clientele, responsive to their specialised labour markets (eg capital city, region) and economic conditions. It is insufficient, and unproductive, to regard any of these human resource management activities as a solution in itself for long-term profitability.
Job Rotation, Performance Management and Rewards Systems
Often based upon European or North American models, and sometimes encouraged by the approaches of hotel training schools, hotel occupations have traditionally been segmented into particular departments. Whatever progression has occurred, has largely focused on promotion within rather than across hotel departments. Thus housekeeping staff may be recruited at base level, and eventually rise through the various available supervisory levels in that department. Front-of-house, and food and beverage staff, similarly, largely remain within their original departments. Even within departments, staff may only progress through specific occupational routes (eg porter, porter supervisor, concierge) rather than generic departmental paths (eg porter, receptionist, front office manager). Whilst it is argued that this instils occupational depth and provides substantial experience, it may also fail to utilise employees’ broader skills, result in competitive segregation and act destructively toward productive teamwork perspectives.
A more productive approach to employee motivation and commitment, involving a perception that it is “… everyone else’s responsibility (apart from front line workers) … to, ‘serve’ those who directly serve the customer” (Heskett, 1990), will be enhanced by job rotation schemes, which provide both multi-skilling (for subsequent promotion and vacancy-filling options) and team-building opportunities. Job rotation schemes are currently in minimal use (less than 39.1% according to a recent survey (Nankervis, 1991). Perceptive human resource managers will use award restructuring negotiations to develop job rotation schemes in concert with other forms of multi-skilling, training and development programmes.
Performance management programmes appear to be increasing in use in the hotel industry, especially in its upper segments (see Figure 4). This is somewhat surprising, given the relative lack of both career and adequate remuneration plans, and may even be self-defeating if such programmes are not subsequently developed.
As already indicated, hotel salaries are generally far lower than average, even though they contribute significantly to overall operating costs. Award restructuring negotiations, as in the case of the Sheraton hotel chain, provide opportunities for modifications to penalty rates, and ultimately, holiday leave loadings, in return for increases in salary levels for most hotel occupations. Job stability, in terms of secure employment, career development, training programmes and less casualisation, may well compensate for continuing low levels of salary, especially if combined with increasing opportunities for self-development including multi-skilling. Over time, the add-on costs for full-time, as opposed to casual staff rates, may also prove both more productive and less costly.
The issues of differential rewards within occupational classifications on a performance-based system, and additional non-cash rewards (eg dinners, holidays, discounts, etc) may also contribute to ongoing performance and productivity, especially in occupations with little promotional opportunity.
Training and Development, Employee Communication
Recent developments in the establishment of a plethora of tourism training institutions and colleges, coupled with portable national competency standards for a variety of hotel occupations, will no doubt ensure a skilled pool of potential employees. Linking such training to individual occupational criteria, and supplementing it with thorough orientation programmes, on-the-job training modules and appropriate supervision, will no doubt fill this previous gap in human resource management for the hotel industry. These developments parallel the findings of the previously-mentioned United Kingdom-Germany study (Prais, 1989), which found that Germany’s productive edge was at least partly due to its nationally-accredited vocational training system.
Studies of some of the best United States and Australian hotels (Gray, 1992) also suggest that the cement which binds skilled and motivated employees to their organisation, who are thus more enthusiastic, more committed and potentially more productive than their competitors’ employees, is clear and ongoing communication between hotel managers and their employees. The “messages” sent through the host of human resource activities, strategies, policies and procedures need to be congruent and consistent, and might include promotion of mission statements, the nature of the physical working environment, plasticised credo cards, “management by walking around”, staff-supervisor meetings, active (and positive) use of guest feedback, and grievance mechanisms.
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