The study on HRM practices and their effectiveness on the performance of an organization: A case study on Le-Meridien group of hotels
The main objective of the assignment is to determine the effectiveness of the HRM (Human Resource Management) on the performance of a hotel industry in their future business aspects.
The research proposal is totally focused upon the correlation between the HRM and the performance of the organization and it is based upon two conjectures.
1) Direct link between the performances of the organization towards the HRM practice.
2) Indirect link between the performances of the organization and the HRM practices.
Human resources is needed to achieve enhanced knowledge which helps to retain the employees and thereby build their skill towards the organization system through learning procedures and create the mechanisms in order to allocate the benefits that obtain from the consumption of these expertise (Mueller and Kamoche, 1988).
Nowadays, the proper HRM practices should be viewed in order to achieve better outcomes from the organizations. Today many scholars from different areas such as innovation, strategy etc go through different experimental studies to determine the link between the HRM towards the performance of the organization and to achieve this various knowledge based outcome is necessary.
The main aim is to determine how the HRM practices of an organization need to set up in order to obtain knowledge – driven HRM practices as well as outcomes.
According to the researchers Singhal and Gupta (1993), they examine how the organizations handle their human resources in order to promote creativity and innovation; they conceptualize the HRM practices into four stages such as
1) Career management – it is totally deals with the empowerment of the employees. This strategy focuses towards the link between the employees long term career goals with the organizational goals by the continuous process of training and education.
2) Recruitment and selection – the management should recruit proper staff during the selection in order to attain better performance of the organization to achieve the target goals.
3) Performance appraisal- this strategy deals with the appraisal of the individual or the performance of team, to obtain a better relationship between the individual innovativeness and thereby company profitability. This also includes difficult situations such as risk taking, developing new tasks, new challenges and innovations etc.
4) Pay and reward system- this strategy develop in order to achieve the objective of the organizations by motivating the employees towards the target goals. It involves the freedom to organize the business, more choices for the research, promoting the level and award recognition.
Hotel industry could be stated as a labour intensive industry. According to (Gabriel, 1988) he stated that success of a hotel industry is related towards the technical skills and the social responsibility of the personnel and also their hard work and focus towards their attitude and commitment. The success of the industry is depends upon the reputation of the employees as well as the support from their effective management in order to focus towards the achievement of objectives (Ghei and Berger, 1995). According to Bowen and Schneider (1993), the organization can be attaining competitively advantageous through the proper utilization of the manpower resources in the organization. Hence the performance can be varied on the above factors. The initial aim of my research work is to determine the proper HRM practices utilized by the Le-Meridien hotels such as development and training procedures, team working and empowering the employees and performance appraisal systems. This research focus towards the direct link between the performance of the organization with respect to the HRM practices and this study will helps the organization towards its future business strategy.
1) To evaluate the effectiveness of HRM towards the performance of the Le-Meridien hotels.
2) To determine how the characteristics such as size, hotel type and category affect the performance of the hotels.
3) To analyse the HRM practices obtained by the hotel.
4) To determine the HRM practices focused by the Le-Meridien hotels towards their future business.
1.3 Research Questions
1) Are the employees achieving benefit from the present HRM practices, how?
2) At what level the HRM practice depend upon the performance of the organization?
3) At what level does the behaviour of employees influence the HRM practices?
4) Is the implementation of HRM practices in the organization a success?
5) At what extent the retention of staff influence the HRM practices in the organization?
- Literature Review The HRM practices are totally focused upon the organization process. Hence, it provides an impact towards the employees’ behaviour and it leads the organization towards the success by improving in their effectiveness and thereby attains advantage over the competitors. According to Willis(1997) organization can attain advantage over the competitors through providing growth in the human capital.
Some researchers such as Hart (1993) he stated that there is a lack of suitable facts regarding the relationship between the HRM and the performance of the organization. Pfeffer (1994) concludes that the organizational performance is directly depends upon certain factors such as employee participation, employee empowerment, designing of job towards the process, training and education programs and proper reward system. The hotel industries are totally a combination of small enterprises and it is considered by division (Ingram, 1999). The hotel industries are mainly focused upon huge turnovers and there are some difficulties will rise up towards its future turnover. Some researchers Deery and Jago (2004) state the factors which cause problems towards the turnover of an organization such as problems in induction, work place discrimination, selection and recruitment procedures, management systems, training programs, commitment towards the organization, cultural intelligence and satisfaction in jobs. Ulrich (1997) states that proper usage of HRM practices should lead to the performance of the organization towards its business aspects, it helps in order to built up a better relationship between the business progress and the HRM practices. Performance can also vary through different factors such as hotel category, type and number of employees (Dev and Brown, 1999).
2.1 Theoretical research frame work
2.1.1 Performance of the organization
The literature work should be conducted extensively in order to determine the link between the HRM and the performance of the organization. According to Evans (1986) suggests that, the business performance of an organization is directly depends upon the better staff employment and the implementation of better HR process. Many researchers proposed different HRM practices in the hotel industries. Muthu and Buick (1997) suggest, different level of HRM practices in the organization which are described below;
- Selection and Recruitment system – recruitment plays an important role in every organization. Selection should be shared throughout the organization in which the main role plays by the personnel staff during the selection and it is also known as a specialized activity (Cole, 1986). The organization need better recruitment procedures which help to attain better candidates and thereby provide future performance indications to the employer. According to Holeche (1999), he suggests that the structured interview is necessary towards the selection which helps to provide better services such as team leadership and customer care.
- Training and Development system – training programs are the other important process plays a key role in the organizations. According to Cole (1986), the members of the organization should get trained according to their job specifications which also consist of customer services and the changes in the market environment. The awareness towards the company factors, policies, targets, missions and visions should be made towards the staffs. The training need to be given when the implementation of new projects as well as planning occurs.
- Performance appraisal systems – according to Wilkinson and Redman (2001) they suggest that the main managerial tool implemented in the organization in order to the motivation as well as controlling the work force is performance appraisal. It is nearly proportional towards the performance such as it could be viewed as loyalty towards the employment as well as their commitment to the organization. This appraisal systems helps the organization to improve their performance within it and also employee performance and furthermore, motivate them towards a greater extend and also improve the communication.
2.1.2 Sustainable competitive advantage
According to (Mabey, et al., 1998) HR practices, skills and the competencies plays an important part in the sustainable compete advantages. The growth as well as the competitive advantage of an organization is stated as a function in which distinctive bundle of resources that it deploys and possess (Barney, 1991). Wright et al (1998) also argue in the terms of competitive advantage such as it is been a fixed as a combined knowledge of the employees and which gradually develops through the period of time. The organizations process for managing the employees helps them and their behaviour to meet the objective goals and create values by achieving the aims. The employees could be the valuable resources and key factors of the organization and thereby contributing towards the effectiveness of the organization (Jackson and Schuler, 2001).
3.1 Research design
In this research work the methodology are carried out in three different levels. In the first level, the secondary data are collected from the hotel industry such as HRM related practices and process. In the second level, after the preparing of the questionnaire a pilot study will be carried towards the assessment, a total of 10 staff members will be survey by the questionnaire in order to attain the details about the practices applied in the Le-Meridien. In the last and final level the primary data are collected and the data are analysed and interpreted.
3.2 Research context
The organization selected for the research work is Le-Meridien hotel. Currently Le-Meridien is a global hotel group with a portfolio of more than 120 luxury and upscale hotels in over 50 countries worldwide. The majority of its properties are located in top cities and resorts throughout Europe, Africa, Middle East, Asia Pacific and the Americas. (http://www.starwoodhotels.com/lemeridien/about/index.html) This research work associated with the staff in the Le –Meridien,a maximum of 10 staffs are interviewed from the different departments such as front office, food and beverage section, housekeeping. The survey also contains the newly joined staff and they also carried through the interview in order to obtain their response towards the practices applied in the organization.
The study also focuses all the ethical issues. Firstly an approval is achieved from the Le-Meridien before the carrying of research work and the management will be convinced with the fact that the research work is totally carried for the academic studies and the details of the employer as well as the staff will not be published.
3.4 Data collection methods
In this research work primary and the secondary data are collected from questionnaire, interview and the external sources. The primary data are collected from the respondents through the interview or the unstructured questionnaire. The unstructured questionnaire is the suitable method for the research hence; researcher could carry the questions which are prepared earlier. The staff from each department will be interviewed. The questions could be changed or modified hence it helps the respondents to express their feelings or opinions towards the survey. Qualitative as well as quantitative approach can be applied for the data collection method, it depends upon the situation. The secondary data could be achieved from the external resources such as books, journals, company magazines, previous research works and data bases provide from the universities. The company information can be achieved from the company websites. The data collection process can be completed within 3-4 months of time.
3.5 Data analysis method
After the achieving of the data, it will be sorted and analysed and it is finally interpreted. The quality and the validity of the results should be maintained proper through the research work. The total analysis is carried through the data achieves from the respondents from the survey.
4.1 Significance of the research
Today, in this hectic environment the hospitality plays a vital role and it flourishes all over the world. The HRM plays an important role in the performance of the organization. The findings as well as the objectives prove the link between the true relationship between the employee and the employer. It helps the employer to find out the effectiveness of the HRM in the organization and also to maintain thereby modify the process to attain better goals as well as empower the employees towards the organization. The research also focuses towards various issues overcome by the employees in the organization.
4.2 Research Limitation
The time consumption provides for doing the research work is around 3-4 months and it seems to be too short and it is not enough to carry out through each department and thereby to meet the management staffs as well as employees. The research work needs a detailed study and it is very difficult to attain permission from the organization.
4.3 Provisional work schedule
The research work will be carried within 3-4 months of time; the second chapter literature review would be completed on March. The third chapter and fourth chapter such as methodology, data collection its findings and analysis will be completed on April. The final report will be done in the month May and the final dissertation work will be submitted on the earliest week of June.
Month mission result
Dec 2009 Proposal submission Approval from University to continue the research
Feb 2010 Literature Review
Establish format for Data contact with new
Supervisor Research line
Supervisor Introductions and
Mar 2010 Prepare Ethics Application
Start Literature Review
Semi-Structured Interview preparation To Obtain Approval
Establish Evidence Base
reliable data collection
Mar 2010 Expand Methodology and methods Set clear direction for
Research work and Produce
Mar 2010 Submit Ethical Approval
Develop Dissertation Outline
And Literature Review To Obtain Approval
Develop Working Framework
Produce Chapter for research
Apr 2010 Finalizing the Data Analysis
methods Establish statistical tools
Apr 2010 Send Out Questionnaires towards staff Data Collection& Preparation methods
Apr 2010 Conduct Semi-Structured
Interviews with staffs
Establish Reasoning and
Develop Chapter for research work
Apr 2010 Data Analysis Approval from Supervisor
May 2010 Develop Draft
Recommendations Approval from Supervisor
Jun 2010 Produce Final Draft Produce Copies and
Jun 2010 Send to Printers
Submit to Northampton University
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