The Human Dimension: A Review of Human Resources Management Issues in The Tourism and Hospitality Industry

 2010 CORNELL UNIVERSITY
DOI: 10.1177/1938965510362871
Volume 51, Issue 2 171-214
The Human
Dimension
A Review of Human Resources
Management Issues in the Tourism
and Hospitality Industry
by SALIH KUSLUVAN, ZEYNEP KUSLUVAN, IBRAHIM ILHAN, and LUTFI BUYRUK
Human resources are often seen as one of the most The Critical Role of the Human
important assets of tourism and hospitality orga-
nizations. Numerous studies have examined how
Resources for Tourism and Hospitality
employee performance can be managed to contrib- Businesses
ute to the organizational bottom line. This article is a Few people would reject the proposition that the
structured review of the literature regarding key human element in tourism and hospitality organiza-
human resources management (HRM) issues in the tions is critical for service quality, customer satis-
tourism and hospitality industry. Based on this faction and loyalty, competitive advantage, and
review, the authors offer an assessment of emerg- organizational performance. This belief is supported
ing trends in HRM and a summary of what has been by many theories, models, and empirical studies in
advocated in the literature for managing employee
the strategy, service, and tourism management
performance.
literatures that stress the critical role of human
Keywords: human resources management; organi- resources for organizations. On the theoretical front,
zational culture; internal marketing resource based theory (Barney 1991; Grant 1991;
MAY 2010 Cornell Hospitality Quarterly 171

HUMAN RESOURCES THE HUMAN DIMENSION
Wernerfelt 1984) and its variants— policies, practices, systems, capabilities,

dynamic capability theory (Eisenhardt and organizational culture and climate,
and Martin 2000; Teece, Pisano, and “contribute to sustained competitive
Shuen 1997), competency-based theory advantage through facilitating the develop-
(Prahalad and Hamel 1990), knowledge- ment of competencies that are firm spe-
based theory (Grant 1996), organizational cific, produce complex relationships, are
social capital theory (Leana and Van embedded in a firm’s history and culture,
Buren 1999; Nahapiet and Ghoshal 1998), and generate tacit organizational knowl-
and intellectual capital theory (Edwinsson edge” (Lado and Wilson 1994, 699). These
and Malone 1997; T. A. Stewart 1997)— arguments can be summarized in a basic
posit that firm-specific resources, assets, model where the human capital stocks of
and capabilities that are valuable, rare, the organization, HRM practices, internal
nonsubstitutable, or imperfectly imitable marketing, organizational culture and
can be an important source of sustainable climate, and business and HRM strategy
competitive advantage and performance encourage and reinforce employees’ work-
differential among firms. In this context, related behavior, thereby driving customer
it is argued that human capital or assets, value, product-service quality, and cus-
including employee knowledge, skills, tomer satisfaction and loyalty—which are,
experience, ability, personality, internal in turn, the basis of organizational perfor-
and external relationships, attitudes, and mance (Exhibit 1).
behaviors are essential for creating the firm- Because the chief output of tourism and
specific advantages. Employee attributes hospitality organizations is services,
are directly influenced by human resources researchers have investigated the features
management (HRM) policies, practices, of services that are most critically driven
and capabilities of the organization, as by human resources. The result is a famil-
well as organizational culture and climate iar litany: services are intangible; they are
(Barney and Wright 1998; Coff 1997; produced and consumed simultaneously,
Lado and Wilson 1994; Mueller 1996; usually at the service providers’ location;
Wright, McMahan, and McWilliams 1994; and customers are present or participating
Wright, Dunford, and Snell 2001). Simi- in the service, usually with interpersonal
larly, models developed in the service interaction between customers and service
management literature, such as the gap providers. Owing to these features, ser-
model of service quality (Parasuraman, vices are made tangible in the personality,
Zeithaml, and Berry 1985), the service appearance, attitudes, and behavior of the
profit chain model (Heskett et al. 1994), service provider; thus, employees become
and many others (see Ghobdian, Speller, part of the product, represent the organiza-
and Jones 1994), acknowledge the role tion, and help to form the image of the
employees may play in service quality, organization (Bitner, Booms, and Tetreault
customer satisfaction, and organizational 1990; Hartline and Jones 1996). For these
performance. reasons, employees and how they are
Many authors have convincingly managed are key determinants of service
explained how and why employees affect quality, customer satisfaction and loyalty,
competitive advantage and firm perfor- competitive advantage, organizational
mance. The essence of the argument is performance, and business success (Bitner,
that human capital or assets, which are Booms, and Tetrault 1990; Nickson et al.
directly influenced by management 2002; Schneider 2003).
172 Cornell Hospitality Quarterly MAY 2010

THE HUMAN DIMENSION HUMAN RESOURCES
Exhibit 1:
A Basic Model of the Strategic Role of Human Resources for Organizational Performance
ANTECEDENTS PROCESSES OUTCOMES
HUMAN CAPITAL WORK RELATED

STOCK EMPLOYEE
(Knowledge, Skill, Ability, ATTITUDES AND
Personality, Emotional BEHAVIORS
Labor, Emotional
Intelligence, Aesthetic Task Performance,
Labor, Experience, Work Effort, Job
Relationships, Education, Satisfaction, Job Stress,
etc.) Job Involvement,
ORGANIZATIONAL
Employee Turnover,
CUSTOMER OUTCOMES
Empoyee Absentism,
RELATED
HUMAN RESOURCE Motivation, Productivity,
OUTCOMES (Competitive
MANAGEMENT Organizational
Advantage,
SYSTEMS AND Citizenship,
(Customer Value, Profitability,
PRACTICES Organizational
Product-Service Productivity, Market
Commitment, Discipline,
Quality, Share, Increased Sales
Trust in Management,
Customer and Revenues,
INTERNAL Organizational
Satisfaction, Growth, Return on
MARKETING Identification,
Customer Investment, Positive
Commitment to
Loyalty, e.t.c.) Word of Mouth, e.t.c.)
Customer Service, Self
Efficacy, Role Clarity,
ORGANIZATIONAL Service Orientation,
CULTURE AND Counterproductive Work
CLIMATE Behaviors, Ethical
Behavior, Relationships
BUSINESS AND HRM

STRATAGY
Source: Based on Kusluvan (2003b, 39); Wright, Dunford, and Snell (2001, 705).
Empirical studies also indicate that the tourism and hospitality industry. As we
service providers’ personality, knowledge, discuss below, most of the contemporary
skills, attitudes and behaviors, HRM literature that has relevance for the man-
practices, organizational culture and agement of people seems to fall in one of
climate, and business and HRM strategy the following categories (although there
can be linked to essential customer and are other issues): (1) employee personality
organizational outcomes. These argu- and emotional intelligence, (2) emotional
ments point to the fact that the treatment and aesthetic labor, (3) HRM practices,
and management of the employees should (4) internal marketing, (5) organizational
be a crucial concern for managers in the culture and climate, (6) business and HRM
tourism and hospitality industry. strategy, and (7) employee job attitudes
and behaviors.
Management of Employee
Performance in the Tourism Employee Personality, Emotional
and Hospitality Industry Intelligence, and Outcomes
We now review studies on major trends
that have helped shape current modes of Personality is defined as “those char-
thinking on people management in the acteristics of the person that account for

consistent patterns of feeling, thinking, 1998). A similar study carried out in the
and behaving” (Pervin and John 1997, 4). food-service industry indicated significant
Employee personality seems to be gaining correlations between basic personality
importance as a selection criterion for traits (i.e., emotional stability, conscien-
tourism and hospitality organizations due tiousness, agreeability, and the need for
to its role in employee performance. activity) and self-rated and supervisor-
Employers often use terms such as “good rated performance ratings of service
attitudes,” “social skills,” and “personal employees, mediated by customer orien-
characteristics” to define the skills tation of employees (Brown et al. 2002).
requirements for tourism and hospitality Yet another study of restaurant employees
employees. Many researchers and indus- in the United States showed that regard-
try practitioners argue that employee less of the level of service climate and
personality influences customer service the existence of service-supporting HRM
attitudes and behavior, customer service practices, conscientiousness and extro-
skills, and overall performance of ser- version had significantly positive relation-
vice providers, which may be critical for ships with employee service performance,
service quality, customer satisfaction, whereas neuroticism and agreeableness
loyalty, and organizational success. were not significantly related to employee
Employee personality is assumed to influ- service performance (Liao and Chuang
ence organizational performance through 2004). Another study interestingly found
its effects on employees’ attitudes, behav- that sociability, flexibility, result orien-
ior, and service performance (Kusluvan tation, and innovativeness were nega-
2003b). Accordingly, much empirical tively related to employee performance
research has been carried out on the con- and serving, whereas conscientiousness
nection between employee personality was positively related to performance
and employee performance. In the context (Papadopoulou-Bayliss, Ineson, and
of the tourism and hospitality industry, Wilkie 2001). That same study found that
G. L. Stewart, Carson, and Cardy (1996) ambitious (results-oriented, flexible, and
researched the relationship between innovative) employees were found to not
personality and employee self-directed perform well. In addition, as a personality
behavior (desirable internalized behavior trait, self-efficacy was found to have a
that occurs in the absence of formal con- strong effect on employee performance
trol) among hotel employees in the south- and service quality (Hartline and Ferrell
western United States and found a 1996). Similarly, personality traits of
significant correlation between personal- competitiveness, self-efficacy, and effort
ity dimensions of conscientiousness, are significant predictors of frontline
agreeableness, emotional stability, open- employee performance in the hotel indus-
ness to experience, and supervisor evalu- try (Karatepe et al. 2006). Self-efficacy
ation of employee performance. Another and effort depict significant positive
study in the food service industry found relationships with frontline employees’
significant relationships between person- job satisfaction (Karatepe et al. 2006).
ality characteristics (especially extrover- The displayed authenticity of the service
sion and agreeableness) and proper provider also enhances friendliness and
customer service behaviors and manager- customer satisfaction in the hotel industry
rated employee performance (Hurley (Grandey et al. 2005).

At the personal level, personality satisfaction, employee commitment, and

characteristics that are congruent with organizational citizenship behaviors, as
providing good service are variously well as service quality, customer satisfac-
called “service orientation” (Hogan, tion, and customer commitment.
Hogan, and Busch 1984), “service pre- Another concept that is closely related
disposition” (Lee-Ross 2000), or “cus- to personality characteristics is emotional
tomer (service) orientation” (Brown et al. intelligence. Emotional intelligence “con-
2002; Saxe and Weitz 1982). Hogan, sists of the ability to: perceive one’s own
Hogan, and Busch (1984, 167) defined and others’ emotions and accurately to
service orientation as “the disposition to express one’s own emotions; facilitate
be helpful, thoughtful, considerate, and thought and problem solving through the
cooperative.” They suggested that service- use of emotion; understand the causes of
oriented people are also self-controlled, emotion and relationships between emo-
dependable, well-adjusted, and likeable, tional experiences; and manage one’s own
and they have considerable social skill and others’ emotions” (Salovey, Mayer, and
and a willingness to follow rules. Alter- Caruso 2002, as quoted in Kernbach and
natively, Lee-Ross (2000, 149) defined Schutte 2005, 438). Higher emotional intel-
service predisposition as “personal satis- ligence of the service provider is associated
faction with service provided.” Customer with greater reported satisfaction with the
orientation is defined as “employees’ service transaction in general (Kernbach
tendency or predisposition to meet cus- and Schutte 2005). Furthermore, emotional
tomer needs in an on-the-job context” intelligence is also associated with job
(Brown et al. 2002, 111). Service provid- satisfaction and job performance (Bachman
ers’ customer orientation was found to et al. 2000; Goleman, Boyatzis, and McKee
be strongly related to customers’ satisfac- 2002; Prati et al. 2003; Wong and Law
tion with service (Susskind, Kacmar, and 2002). However, the empirical evidence
Borchgrevink 2003). It was also found for this is scant in the tourism and hospi-
that customer orientation promotes job tality industry (Zeidner, Matthews, and
satisfaction, commitment, and organiza- Roberts 2004). One exception is a study
tional citizenship behavior in the food by Sy, Tram, and O’Hara (2006), who
industry (Donavan, Brown, and Mowen have examined the relationships between
2004). In the restaurant industry, customer- employees’ emotional intelligence, their
oriented behaviors were positively related manager’s emotional intelligence, employ-
to customer satisfaction and customer ees’ job satisfaction, and performance for
commitment (Donavan and Hocutt 2001). 187 food-service employees from nine
Although service orientation or predis- different locations of the same restaurant
position is thought of as a personality franchise. They found that employees’
characteristic, it is argued that cultural emotional intelligence was positively
values can improve or diminish service associated with job satisfaction and per-
predisposition through specific job atti- formance. In addition, managers’ emotional
tudes (Johns, Chan, and Yeung 2003). In intelligence had a more positive correla-
summary, these studies suggest that tion with job satisfaction for employees
employee personality, coupled with cul- with low emotional intelligence than for
tural values, can be an important deter- those with high emotional intelligence
minant of employee performance, job (Sy, Tram, and O’Hara 2006).

Emotional and Aesthetic Labor HRM Practices and Outcomes

and Outcomes
HRM is concerned with the “design
It is argued that emotional and aes- of formal systems in an organization to
thetic labors have increasingly gained ensure the effective and efficient use of
currency as required skills for service human talent to accomplish organizational
employees. In the context of work, emo- goals” (Mathis and Jackson 2000, 4).
tional labor (a term coined by Hochshild HRM involves a series of activities and
1983) has been defined as “the effort, decisions relating to manpower planning,
planning, and control needed to express job design and analysis, recruitment and
organizationally desired emotions during selection, orientation, training and devel-
interpersonal transactions” (Morris and opment, team building, compensation and
Feldman 1996, 987) or “the act of dis- benefits, promotion, motivation, employee
playing appropriate emotion (i.e., con- involvement and participation, empower-
forming to a display rule)” (Ashforth and ment, performance appraisals, health and
Humphrey 1993, 90). Studies carried out safety, job security, employee and labor
in the tourism industry showed that work- relations, and terminations (Biswas and
ing in tourism-related industries requires Cassell 1996; Boella 2000; Dessler 2000;
considerable emotional labor (Constanti Jerris 1999; Mathis and Jackson 2000;
and Gibbs 2005; Seymour 2000), and Tanke 2001). In recent years, a more
displaying this may result in employee strategic approach to HRM has been
burnout (characterized by emotional applied, in which employees are viewed
exhaustion and cynicism) (Anderson, as strategic and valuable assets to be
Provis, and Chappel 2001). On the other invested in and developed, rather than
hand, aesthetic labor is the employee’s costs to be controlled. In that regard, a
capacities and attributes for “looking highly committed, capable, empowered,
good” or “sounding right” at the point of involved, and motivated workforce was
entry into employment (Nickson, Warhurst, seen as the way to competitive advantage
and Dutton 2005; Warhurst et al. 2000). and sustained business success (Storey
Employers in the hospitality industry 1995). The alignment of HRM with busi-
consider aesthetic labor important, and ness strategy is also advocated within this
they seek employees who will look good perspective. For developing committed,
and sound right (Nickson, Warhurst, and capable, satisfied, and motivated employ-
Dutton 2004, 2005). Aesthetic labor was ees, authors have alluded to appropriate
found to create a distinct image and pro- bundles of HRM practices by various
vide competitive advantage in the hospi- names, including high-involvement prac-
tality industry (Nickson, Warhurst, and tices, flexible production systems, high-
Dutton 2005). Yet there is little empirical commitment systems, high-performance
evidence of the relationship between work systems (HPWS), and best HRM
employing aesthetic labor and tourism practices (Wood 1999a, 1999b). HPWS
companies’ business performance. is defined as “a set of distinct but inter-
Besides, one must consider the ethics of related HRM practices that together select,
employing people based on their appear- develop, retain, and motivate a workforce:
ance, which is the essence of an aesthetic (1) that possesses superior abilities; (2) that
labor approach. applies their abilities in their work-related

activities; and (3) whose work-related various bundles of HRM practices

activities result in these firms achieving (Exhibit 3). The systems view has emerged
superior intermediate indicators of firm as the dominant trend in linking HRM
performance and sustainable competitive practices to employee, customer, and
advantage” (Way 2002, 765-66). High- organizational outcomes.
performance work organizations are Both streams of research have concluded
characterized by HRM practices such as that individual or bundles of HRM prac-
selective hiring, extensive training, self- tices in the tourism and hospitality industry
managed teams, decentralized decision are unprofessional, underdeveloped, and
making, reduced status distinction, infor- inferior when compared to other industries
mation sharing, performance-based com- and are not practiced in a way that gen-
pensation, employment security, broad job erates employee commitment, satisfaction,
design, flexible job assignments, employee and motivation (Anastassova and Purcell
participation and involvement, internal 1995; Fulford and Enz 1995; Guerrier and
promotion, employee stock ownership, Lockwood 1989; Head and Lucas 2004;
transformational leadership, and group- Hiemstra 1990; International Labor Orga-
based high compensation contingent on nization [ILO] 2001; Kelliher and Johnson
performance (e.g., gain sharing, profit 1987, 1997; Lucas 1993, 1995, 1996,
sharing) (Guthrie 2001; Pfeffer 1998; Way 2002; Lucas et al. 2004; McGunnigle and
2002; Wood 1999a; Zacharatos, Barling, Jameson 2000; Nankervis and Debrah
and Iverson 2005). 1995; Nolan 2002; Pizam 1999; Price
Two streams of research have examined 1994; Taylor and Davies 2004; Timo and
HRM practices in the tourism and hospi- Davidson 2005; Wood 1997; Worsfold
tality industry. In one stream, a number 1999). For example, there is ample evi-
of studies examined individual HRM dence that a substantial number of mini-
practices (Exhibit 2) such as recruitment mum wage earners are working in the
and selection (Anderson, Provis, and tourism and hospitality industry, and its
Chappel 2003; Garavan 1997; Ineson organizations pay their employees less on
1996; Janes 2004; Martin and Grove average than do other businesses (Boella
2002), empowerment and involvement 2000; ILO 2001; Woods 1999). An over-
(Brymer 1991; Corsun and Enz 1999; whelming majority of studies cited in
Dewald and Sutton 2000; Fulford and Enz Exhibits 2 and 3 report little evidence of
1995; Hales and Klidas 1998; Lashley adoption and implementation of progres-
1995a, 1995b, 1999, 2000; Sparrowe sive, high-performance, or high-involve-
1994), leadership and managerial styles ment HRM practices by the industry. In
(Anastassova and Purcell 1995; Deery terms of the current state of HRM prac-
and Jago 2001; Hales and Tamangani tices, the only (and partial) evidence of
1996; Lee-Ross 1993; MacFarlane 1982; good personnel management and practice
Nebel and Stearns 1977; Purcell 1987; are observed in a small number of large,
Tracey and Hinkin 1994; Worsfold 1989a), foreign-owned, international chain estab-
performance appraisal (Umbreit 1986, lishments (Hoque 1999a, 1999b; ILO
1987; Umbreit, Eder, and McConnell 2001; Lucas 1996, 2002; McGummigle
1986; Woods, Sciarini, and Breiter 1998), and Jameson 2000; Price 1994; Worsfold
and wages (Lee and Kang 1998). 1999). For this reason, the tourism and
The other stream comprises a few hospitality industry has a reputation for
studies analyzing the state and impact of poor human resource practices and

Exhibit 2:
Individual Human Resources Management (HRM) Practices and Consequences in
the Tourism and Hospitality Industry
Individual HRM
Practices Related To . . . Literature
Employee Employee turnover Bonn and Forbringer
recruitment/ (1992); Boles, Ross, and
selection Johnson (1995)
Orientation Organizational commitment, job Lundberg and Young
satisfaction, intention to quit (1997)
Training Employee performance, Buick and Muthu (1997);
productivity, work quality, Conrade, Woods, and
customer perception of an Ninemeier (1994); Roehl
organization, intention to remain and Swerdlow (1999);
in the job, morale, perception of Tracey and Nathan
supervisor quality, awareness of (2002); Washington,
rules, organizational commitment, Feinstein, and Busser
occupational status, self-esteem (2003)
Empowerment Employee job satisfaction, Ashness and Lashley
(including employee performance, greater (1995); Fulford and Enz
employee feelings of involvement and (1995); Lashley (1995a,
participation importance, service delivery, 2000); Sosteric (1996);
and service quality, competitive Sparrowe (1994)
involvement) advantage, satisfaction with pay
and promotion, turnover,
improved sales, reduced stock
holdings, reduced labor costs,
increased labor retention, reduced
customer complaints, increased
sense of worth, employee morale,
teamwork, customer satisfaction,
employee relationships
Leadership/ Employee satisfaction, openness of Connell (2001); Deery and
management communication, mission clarity Jago (2001); Nebel and
styles and role clarity, employee self- Stearns (1977); Simons
efficacy, employee skill utilization, and Roberson (2003);
employee performance, Tracey and Hinkin
organizational commitment, (1994); Worsfold (1989a)
turnover, discretionary service
behaviors, customer satisfaction,
productivity, effectiveness, job
performance, satisfaction, levels
of tour quality
Performance Job performance, employee Umbreit (1986, 1987);
appraisal recognition, retention, Umbreit, Eder, and
compensation, and promotion, McConnell (1986);
training needs Woods, Sciarini, and
Breiter (1998)

Exhibit 3:
Bundles of Human Resources Management (HRM) Practices and Consequences in
the Tourism and Hospitality Industry
Bundles of HRM Practices Related To . . . Literature
Performance appraisal, remuneration, Improvement in staff Davies, Taylor,
and training relations, improvement and Savery
in quality, employee (2001)
commitment,
productivity, profitability,
reduced employee
turnover and costs
Recruitment/selection, training and Positive service behaviors Tsaur and Lin
development, compensation and and service quality (2004)
benefits
Recruitment, selection, orientation Employee turnover Cheng and
and socialization, training, Brown
development, performance (1998)
management and remuneration
Training, communication, orientation, Organizational commitment, Kinicki,
advancement opportunities, job job satisfaction, Carson, and
security, selective selection, motivation, customer Bohlander
participation in decision making service, pride in working (1992)
for the company, adoption
of company values
Innovative training, strategic Service quality Jago and
recruiting, and provision of a Deery (2002)
teamwork environment
Training, communication, Employee satisfaction, Haynes and
empowerment, performance guest satisfaction and Fryer (2000)
appraisal organizational financial
performance
Recruitment and selection, terms and Innovation, financial Alleyne,
conditions, training, job design, pay performance, quality of Doherty, and
systems, participation, service, market share Greenidge
communication and consultation and labor productivity (2006)
Hiring the right people, developing Superior service quality Hickman and
employees, empowering employees, Mayer (2003;
providing support systems and Mayer (2002)
retaining the best people
Training, company support, Employee interaction with King and
empowerment customers and guest Garey (1997)
satisfaction
Terms and conditions, recruitment Service quality, financial Alleyne,
and selection, training, job design, performance and Doherty,
communication and consultation, competitive success, and Howard
quality issues, pay systems innovation, financial (2005);
performance, market Hoque
share and labour (1999a,
productivity 1999b)
(continued)

Exhibit 3: (continued)
Bundles of HRM Practices Related To . . . Literature
Training, promotional opportunity Job satisfaction, Jago and
and job security organizational Deery (2004)
commitment and
employee intention to
leave
Information sharing, job analysis Turnover Cho et al.
internal recruiting, attitude survey, (2006)
labor-management participation
program, incentive plans, grievance
procedure, preemployment tests,
compensation on job performance,
performance appraisal, promotion
criteria
Leadership, rewards, career Service culture, employee Zerbe, Dobni,
opportunities, performance service behaviors, and Harel
appraisal, work demands, training service quality (1998)
Employee recognition, respect and Profits, market share and Maxwell and
reward guest satisfaction Lyle (2002)
Top managements’ vision of a quality Total quality management Partlow (1996)
culture, communication, employee culture, employee
involvement, job design, teamwork, turnover, sales, on time
empowerment, training, orders, productivity,
measurement of job satisfaction, problem solving ability
customer satisfaction and employee of personnel, sense of
performance, selection, promotion, unity, customer
career development, rewards, satisfaction, employee
health and safety programs satisfaction
managing people in a traditional and Regarding the consequences of such

exploitative way. Accordingly, tourism HRM practices, individual and various
and hospitality firms are described as combinations of HRM practices were related
“bleak houses,” or “ugly” and “bad” to employee, customer, and organizational
establishments in employment terms (Lucas outcomes such as turnover, organizational
1996). However, it would be a mistake to commitment, job satisfaction, service qual-
disregard the increasing number of tour- ity, customer satisfaction, and organizational
ism and hospitality organizations that have performance. Exhibits 2 and 3 summarize
highly effective HRM practices, as docu- some of the most important examples of
mented, for example, by Bonn (2003); such studies.
Dubé et al. (1999); Walsh, Enz, and Siguaw
(2003); and Williams and Watts (2002). Internal Marketing and Outcomes
Certain hospitality firms (e.g., Four Sea-
sons, Kimpton Hotels, Marriott Interna- Internal marketing views all employees
tional, and Starbucks) are listed in “100 as customers—including other employees
best companies to work for” in various and departments in the organization to
business magazines (see Hinkin and Tracey whom employees are also internal suppli-
2010 [this issue]). ers. The internal marketing approach asserts

that to deliver quality service and satisfy Pfeffer 2000; Pfeffer 1998). These causal
external customers, internal customers relationships led some researchers to
should themselves be satisfied and moti- develop a model (Exhibit 4) linking inter-
vated. Internal customers should be satis- nal marketing practice to external market-
fied not only with their employment ing outcomes, mediated by internal
conditions and the organization’s HRM customer attitudes and behavior.
practices but also with the internal services
they receive from coworkers during ser- Organizational Culture and Climate
vice delivery. In line with this philosophy, and Outcomes
internal marketing is defined as “the appli-
cation of marketing, HRM, and allied theo- Organizational culture and organiza-
ries, techniques, and principles to motivate, tional climate are two constructs that are
mobilize, co-opt, and manage employees believed to influence employee attitudes,
at all levels of the organization to continu- behaviors, performance, and organiza-
ously improve the way they serve external tional effectiveness. Yet the distinction
customers and each other” (Joseph 1996, between organizational culture and orga-
55). Organizational practices espoused by nizational climate is neither obvious nor
internal marketing are similar to the high- clear-cut. Organizational culture is gener-
commitment or high-involvement HRM ally described as the deep structure of
practices explained above. “the shared values, attitudes, beliefs,
A growing number of studies confirm assumptions, and core values of organiza-
gains enjoyed by those adopting employee- tion members which influence not only
friendly internal marketing practices in the behavior of members but also the
the tourism-related industries. For exam- systems created” (Ferris et al. 1998, 240);
ple, Wildes (2005) provided evidence that whereas organizational climate is seen
increasing internal service quality given as relatively evanescent, involving
to restaurant workers resulted in higher changeable perceptions, interpretation,
employee satisfaction, reduced employee and attributions by employees about the
turnover, and an increase in employees’ work environment, how an organization
recommending their jobs to others. Simi- operates, and what it sees as important
larly, Arnett, Laverie, and McLane (2002) (Ferris et al. 1998; Schneider, Gunnarson,
demonstrated that internal marketing and Niles-Jolly 1994). More specifically,
strategies in the hotel industry contributed “employees’ perceptions of the events,
to both job satisfaction and pride in the practices and procedures, as well as their
organization, which both resulted in an perceptions of the behaviors that are
increase in positive employee behavior, rewarded, supported, and expected, con-
including good service, cooperation with stitute the climate of the work setting in
other employees, and commitment to the an organization” (Lytle, Hom, and
organization. In the airline industry, the Mokwa 1998, 457-58). In general, orga-
internal marketing practices of Southwest nizational climate is seen both as one
Airlines were found to be responsible for surface-level manifestation of an orga-
extremely happy, motivated, and produc- nization’s culture (Schein 1990) and “an
tive employees who contributed to excel- empirical substitute for the richer term
lent customer service, competitive culture and a feature of rather than a
advantage, and organizational performance substitute for culture” (Poole 1985, 84).
in terms of profits, market share, safety In the context of tourism and hospitality
records, and cost reduction (O’Reilly and organizations, one can rather speak of

Exhibit 4:
Linking Internal Marketing Activities to External Marketing Outcomes
INTERNAL MARKETING EXTERNAL MARKETING

Human Resource Internal Marketing
Practice
Employment Internal
Security Customer
Internal Customer
Loyalty
Behaviors
Extensive
Training
Extra-role External External External

Generous
Behaviors Service Customer Customer
Rewards Job
+ + Directed at + Quality + Satisfaction + Loyalty
Satisfaction
External
Sharing
Customers
Information
Employee
Empowerment Trust in
Management
Reduced
Status
Distinctions
Source: Bansal, Mendelson, and Sharma (2001, 65).
“service culture” and “service climate.” context model, the culture of an organiza-
Gronroos (1990, 244) defined service tion affects the types of HRM systems
culture as “a culture where an apprecia- and practices that are in place; these
tion for good service exists, and where systems and practices, in turn, influence
giving good service to internal and, ulti- employee attitudes and behaviors, either
mately, external customers is considered directly or through their effects on cli-
a natural way of life and one of the most mate; and these attitudes and behaviors,
important norms by everyone.” Similarly, in their own turn, influence organizational
service climate is defined as “employees’ effectiveness (Exhibit 5). Others argue
perception that (a) practices and proce- that HRM practices influence the orga-
dures were in place to facilitate the delivery nizational and service culture, which in
of excellent service, and (b) management turn affects employee attitudes and behav-
rewarded, supported, and expected excellent iors, which, once again, drive organiza-
service” (Schneider and Bowen 1993, 39). tional performance (Zerbe, Dobni, and
Many researchers have argued that Harel 1998).
organizational or service culture and In the context of tourism and hospital-
climate directly or indirectly influence ity, most research deals with the conse-
employee attitudes and behaviors, which, quences of organizational culture on
in turn, have an impact on organizational organizational performance, whether
performance (Denison 1996; Ferris et al. directly or indirectly. Studies carried out
1998). For this reason, organizational or in tourism-related industries showed that
service culture and climate are seen as organizational culture is related to overall
precursors of organizational effective- organizational effectiveness and perfor-
ness. For example, according to the social mance (Doran, Haddad, and Chow 2004;

Exhibit 5:
Social Context Model of the Human Resources Management (HRM)–Organization
Effectiveness Relationship
Flexibility
Organizational HRM Organization Employee Employee Organization

Culture Systems Climate Attitudes Behaviors Effectiveness
Organizatıon
Climate
Source: Ferris et al. (1998, 238).
Glover 1995; Kemp and Dwyer 2001; job satisfaction, positive and negative
LeBlanc and Mill 1995; Tidball 1988, leader reward behaviors, intention to quit
Wilkins and Patterson 1985); profitability (Jackofsky and Slocum 1988), and cus-
and employee commitment (Tidball 1988); tomer satisfaction and financial perfor-
employee turnover (Deery and Shaw 1997, mance (Davidson, Manning, and Timo
1999; Tidball 1988); employee satisfac- 2001; Davidson and Manning 2004).
tion and intent to remain (Tepeci and Other tourism-related studies of organi-
Bartlett 2002; Tepeci 2005); service culture zational culture and climate focused on
and competitive advantage (Hallowell, how organizational culture and climate
Bowen, and Knoop 2002); service giving can be measured (Davidson et al. 2001;
behaviors of employees (Tidball 1988; Deery and Shaw 1997, Kemp and Dwyer
Zerbe, Dobni, and Harel 1998); market 2001; Manning, Davidson, and Manning
share, profitability, customer satisfaction, 2005; Tepeci and Bartlett 2002) or changed
and loyalty (Gray, Matear, and Matheson and managed (Brownell 1990; Kusluvan
2000); commitment to organizational and Karamustafa 2003; Mwaura, Sutton,
values; guest and employee centeredness; and Roberts 1998; Ogbonna and Harris
openness to learning and change; team- 2002; Watson and D’Annunzio-Green
work; increased creativity; shared goals 1996; Woods 1991).
and values; organizational stability and
growth; effective peer relations; employee Business and HRM Strategy
participation and decentralized decision
making; and employee motivation, com- Several researchers have tried to iden-
mitment, and role clarity (Kemp and tify a relationship between business and
Dwyer 2001). In a similar vein, organi- HRM strategy in the tourism and hospi-
zational climate predicted service quality, tality industries. Some studies developed
employee turnover, burnout (Vallen conceptual models or frameworks aimed
1993), guest satisfaction (King and Garey at understanding and classifying the
1997), intrinsic and extrinsic employee strategic approach to HRM in the tourism

and hospitality industries. In an early, approach, used a flexible and segmented

thoughtful study, Lashley and Taylor labor market (core and peripheral labor)
(1998) explored the relationship between that enabled hotels to reduce cost and
the service operation type adopted by the afforded them a competitive edge based
organization and the style of HRM prac- on price. In this approach, it was argued
tices that best fit with it. They proposed that flexible seasonal workers, part-time
four service operation types, based on the or on-call employees, students, and vol-
degree of standardization and intangibility unteers could be used for a cost-reduction
of services (i.e., professional service, strategy (Graham and Lennon 2002; Jago
mass service, service factory, and service and Deery 2002). The other approach,
shop) together with four HRM strategies quality enhancement, was a “model of
that fit with the four operational types employment relations and competitive
(i.e., professional style, participative advantage driven by a more stable, better
style, involvement style, and command skilled and motivated workforce” (Timo
and control style). In hospitality retailing, 1999, 63). In this analysis, it is argued
for instance, they identified that command that the quality initiative and strategy of
and control, employee involvement, and quality enhancement can be a catalyst for
employee participation strategies were a strategic approach to human resource
used in the management of employees development (Maxwell, Watson, and Quail
(Lashley 1998; Lashley and Taylor 1998). 2004). Finding cost reduction to be wide-
In another important conceptual model, spread in the industry, Timo (1999) com-
Jolliffe and Farnsworth (2003) developed mented that this strategy would be
a theoretical dichotomous model for difficult to change. Reflecting on the
managing employees strategically in the business strategies of cost-reducer, quality-
face of seasonality in tourism. They enhancer, and others, some researchers
argued that HRM practices and strategies have grouped HRM strategies in the tour-
of businesses would be different depend- ism and hospitality industry into HRM
ing on whether they embraced seasonality cost-reducer, HRM quality-enhancer, and
or challenged it (Exhibit 6). This model HRM others (Alleyne, Doherty, and
may be useful for understanding and Greenidge 2006; Alleyne, Doherty, and
guiding hospitality HRM practices for Howard 2005; Hoque 1999a). In another
core and peripheral staff. In yet another empirical study, in the hotel industry in
classification of HRM strategies, Hughes Spain, Soriano (2005) found a binding
(2002) developed a framework for under- relationship between organizational size
standing HRM strategies in the tourism and human resource strategy as well as
and hospitality industries. She identified human resource strategy and other func-
the following four types of HRM strategy: tional strategies such as marketing and
traditional HRM, integrative HRM, strate- finance.
gic HRM, and universal HRM (Exhibit 7). In terms of the relationship between
She argued that empirical research sup- strategy implementation and HRM,
ports universal HRM. Hartline, Maxham, and McKee (2000)
Empirically, Timo (1999) found two examined the dissemination of a customer-
labor utilization strategies in the Australian oriented strategy through a management-
hotel industry, which were influenced and employee-initiated control mechanism
by managerial practices, organizational in the hotel context. They found that
changes, and product market changes. customer-oriented strategy could be
One strategy, the cost minimization implemented by the corridors of influence,

Exhibit 6:
Seasonality and Human Resources Management (HRM) Strategy
Embrace Seasonality HRM Practice Challenge Seasonality
Focus on temporary Staffing Focus on full-time core workforce
workers students, (supplemented as needed by
casual workers; temporary workers); employee
employee retention less retention valued
important
Focus on brief orientation Training and Focus on continual training (including
and task-specific development cross-training) and employee
training development
Focus on ability to Performance Focus on broader based
perform specific tasks; appraisal competencies and task-specific
informal appraisal abilities; formal and informal
techniques appraisal techniques
Match or lead Compensation Match competitor’s base pay; benefits
competitor’s base pay; and merit increases encourage
bonuses based on retention; bonuses for staying
staying entire season beyond normal season
Source: Jolliffe and Farnsworth (2003).
Exhibit 7:
A Framework of Human Resources Management (HRM) Strategies
HRM
Strategy Focus
Traditional Worker productivity, selection, job design, incentive pay practices
HRM
Integrative Congruency, bundling, or degree of internal fit of HRM practices
HRM
Strategic External fit between and organization’s HRM policies/practices and
HRM competitive/business strategy (also named contingency or best-fit
model).
Universal Achieving competitive advantage through the development of a
HRM highly committed, competent, and motivated workforce, through
the creation of a high-trust culture, high-involvement best practices
Source: Hughes (2002).
namely, work group socialization and not a clear relationship between the business
organizational commitment, formalized strategy and the approach to HRM (Hughes
organizational structure and behavior- 2000; Kelliher and Perrett 2001; Lucas
based employee evaluation, and empow- 1995; McGummigle and Jameson 2000;
erment of customer contact employees. Nankervis and Debrah 1995). For this rea-
Overall, the literature indicated that tour- son, a call for human resource and line
ism and hospitality organizations rarely managers to take a more influential role
adopted a strategic approach to the manage- in strategic planning and HRM practices
ment of human resources, and there was was advocated (Tracey and Nathan 2002).

Employee Job Attitudes, Behaviors, behaviors or behavioral repertoires that

and Outcomes are pivotal for job performance in the
service industries. These behavioral rep-
Job attitudes and behaviors that are ertoires form a basis for clarifying service
widely researched in the tourism-related employee roles and providing service
industries are turnover, job satisfaction, according to service quality specifica-
motivation, job stress, and organizational tions. Behavioral repertoires (i.e., indus-
commitment. Much research has focused trial, entrepreneurial, ultrareliable,
on determining the antecedents and con- compromise) identified by Dobni, Zerbe,
sequences of these job attitudes and and Ritchie are useful for developing,
behaviors. Exhibit 8 summarizes the fac- guiding, and controlling service behaviors
tors that influence them, their conse- of employees in tourism and hospitality
quences, and the relevant literature. organizations. In a similar study in the
Linking with the basic model of strategic restaurant industry, Winsted (2000, 2003)
role of HR for organizational performance identified a number of overt positive and
presented in Exhibit 1, these employee negative employee behaviors that were
attitudes and behaviors denote processes, highly correlated with customers’ satis-
whereas their consequences refer to out- faction with the service encounter. These
comes. An examination of Exhibit 8 behaviors were grouped into promptness,
indicates that antecedents of such job courtesy, friendliness, caring, authenticity,
attitudes and behaviors as turnover, job personalization, control, and formality.
satisfaction, motivation, job stress, and In further analysis of the data, Winstead
organizational commitment are alike and (2003) expanded the list of dimensions
closely related, and they lead to similar to civility, personalization, remembering,
consequences. A closer examination of conversation, congeniality, delivery,
the factors influencing job attitudes and authenticity, basics, concern, and formal-
behaviors shows that the HRM practices ity. Winstead (2000, 2003) indicated that
of the organization and management, job these dimensions are highly correlated
design, job characteristics, social ecology with customer satisfaction and that the
of the organizational environment, and importance of these dimensions could be
structure and stability of the tourism and different in different cultures. Keung
hospitality industries are the major deter- (2000) explored hotel employees’ ques-
mining factors. An overwhelming majority tionable job-related behaviors in Hong
of studies on job attitudes and behaviors Kong from the perspective of tourists
concluded that turnover and job stress are and discovered that tourists disliked any
high in the tourism-related industries, infringement of their privacy, unethical
whereas job satisfaction, organizational employee behavior, and hotel employees
commitment, and motivation are low. The disobeying hotel rules and regulations.
consequences are said to be negative in Finally, a number of studies indicated
terms of employee performance, employee that service employee behaviors, effort,
retention, service quality, customer sat- and performance strongly affected posi-
isfaction, organizational performance, tive customers’ affective responses and
and competitive advantage (Exhibit 8). satisfaction (Mohr and Bitner 1995; Price,
Another group of studies examined Arnould, and Tierney 1995), service
overt employee behaviors and their con- quality and value (Hartline and Jones
sequences. Dobni, Zerbe, and Ritchie 1996), and corporate image (Nguyen
(1997) identified a group of desired service 2006).

Exhibit 8:
Antecedents and Consequences of Major Job Attitudes/Behaviors
MAY 2010
Attitudes/
Behaviors Influenced By . . . Related To . . . Relevant Literature
Turnover The work itself; routine work; long, irregular, and Profits, turnover Antolik (1993); Barrows (1990);
unsociable working hours; workload; role ambiguity; costs, quality and Boles, Ross, and Johnson
role conflict; work-family conflict; resource consistency of (1995); Bonn and Forbinger
inadequacy; pay; benefits; reward systems; job services, (1992); Cheng and Brown
satisfaction; organizational commitment; life placement- (1998); Cho et al. (2006);
satisfaction; supervision; coworkers; recruitment and recruitment- Conrade, Woods, and
selection; promotion and career development training costs, Ninemeier (1994); Debrah
opportunities; orientation; training and development profitability, (1994); Deery and Shaw (1997,
opportunities; job security; social relations with productivity and 1999); DeMicco and Giridharan
coworkers and managers; management styles; skills efficiency of (1987); Denvir and McMahon
and practice; organizational culture; labor shortages; continuing staff, (1992); Farrell (2001); Hartman
stress and burnout; personnel management drained and Yrle (1996); Hiemstra
practices; career planning and management; skill resources, (1990); Hinkin and Tracey
acquisition through job hopping; better jobs and employee (2000); Hogan (1992); Iverson
work conditions within tourism; mobility and career morale, and Deery (1997); Johnson
progression; better employment opportunities in teamwork, (1981, 1985, 1986); Kennedy
other sectors of the economy; instability of tourism reputation of the and Berger (1994); Kusluvan
demand; subjective norm; discrimination at the firm, unfulfilled and Kusluvan (2004); Lam, Lo,
workplace; false expectations; performance-based business and Chan (2002); Mars, Byrant,
dismissals; moving to another location; objectives and Mitchell (1979); Milman
communication; intrinsically transient staff; changes and Ricci (2004); Ohlin and
in ownership and leadership; turnover culture; union West (1994); Pizam and Ellis
loyalty; labor management participation program; (1999); Pizam and Thornburg
incentive plans; preemployment tests; image of the (2000); Riegel (1995); Rowley
industry; social status of jobs; appreciation; and Purcell (2001); Simons and
THE HUMAN DIMENSION
(continued)
Cornell Hospitality Quarterly 187

HUMAN RESOURCES
HUMAN RESOURCES
Attitudes/
188 Cornell Hospitality Quarterly

employee participation and empowerment; change Hinkin (2001); Simons and
of owners or managers; change of key personnel; Roberson (2001); Susskind et
physical working conditions; poorly managed small al. (2000); Tas, Spalding, and
and medium-sized enterprises; turnover culture; Getty (1989); Timo (1996, 1999);
unmet employee expectations; secondary labor Tracey and Nathan (2002);
THE HUMAN DIMENSION
market personnel who want to work temporarily; Vallen (1993); Wagner (1991);
personality; personality-job-organization fit; Wasmuth and Davis (1983a,
employees’ personal circumstances; justice; 1983b); Woods and Macaulay
managers’ behavioral integrity; organizational (1989); Woods, Heck, and
support; employment status (casual, temporary, Sciarini (1998); You (1998)
agency staff); demographic factors such as age,
education, and tenure
Job Pay and benefits; reward systems; recognition; Organizational Arnett, Laverie, and McLane
satisfaction employee participation and involvement; routine/ commitment, (2002); Barron and Maxwell
repetitive work; role conflict; role ambiguity; role employee (1998); Choy (1995); Dienhart
clarity; opportunities for promotion and career communication, and Gregoire (1993); Donavan,
development; negative affectivity; work overload; customer Brown, and Mowen (2004);
unchallenging and meaningless work; employee satisfaction, Feinstein and Vondrasek (2001);
training and development; supervision; customer focus, Hartline and Ferrell (1996);
management/leadership styles; work involvement; job performance, Iverson and Deery (1997);
job security; empowerment; employee selection; turnover, positive Jackofsky and Slocum (1988);
orientation and training; career management; employee Karatepe et al. (2003); Kokko
performance evaluation; supervisor social support; behavior, and Guerrier (1994); Kusluvan
coworker social support; peer cohesion; employee and Kusluvan (2005); Lam
organizational culture; organizational climate; satisfaction and (2003); Lam, Baum, and Pine
resource adequacy; service orientation; work intent to remain (2001); Lam, Zhang, and Baum
environment; mutual respect; knowledge sharing; (2001); Milman and Ricci
justice; perceived organizational support; long (2004); Pavesic and Brymer
working hours; nights and weekend schedules; (1990); Ross and Boles (1994);
MAY 2010
(continued)
Attitudes/
MAY 2010
stress; demanding supervisors and duties; work- Sarker, Crossman, and
family conflict; quality of life; unsocial working Chinmeteepituck (2003);
hours; company politics; labor shortages; employee Susskind et al. (2000); Spinelli
motivation; unmet employee expectations; coworker and Canavos (2000); Swerdlow
attitudes; communication with managers and with and Roehl (2003); Tas,
co-workers; demographic variables such as age, Spalding, and Getty (1989);
tenure, and education; congruence of national Tepeci and Bartlett (2002);
culture of managers and employees Tepeci (2005); Testa, Skaruppa,
and Pietrzak (1998); Testa
(2002)
Work Pay, respect, job security, being a part of organization, Service quality, Bartkus, Hartman, and Parent
motivation employee recognition and appreciation for organizational (1994); Bartkus and Howell
accomplishments, tactful discipline, job security, performance, (1999); Charles and Marshall
interesting work, feeling of being “in on things,” employee (1992); Darder (1994); Hays and
sympathetic help with personal problems, accuracy and Hill (2001); Helmrich, Sawin,
opportunities for advancement and development, timeliness, and Carsrud (1986); Henry et
working conditions, personal loyalty to employees, improved al. (2004); LaFleur and Hyten
relationship with supervisors, bonus, demographic employee (1995); Lee-Ross and Johns
factors, rewards, work environment, the work itself, performance (1995); Lee-Ross (1998);
personality traits, job design, gain sharing, behavior Meudell and Rodham (1998);
modification techniques, leadership behaviors, Pavesic and Brymer (1990);
employee group cohesiveness, long working hours, Ross (1994); Simons and Enz
nights and weekend schedule, stress, demanding (1995); Simons (2003); Siu,
supervisors and duties, time for family and social Tsang, and Wong (1997);
activities, quality of life, routine, company politics, Weaver (1988); Welsh,
management, labor shortages, de-motivated Bernstein, and Luthans (1992);
employees, poor coworker attitudes and behaviors Wong, Siu, and Tsang (1999)
THE HUMAN DIMENSION
(continued)

HUMAN RESOURCES
HUMAN RESOURCES
190 Cornell Hospitality Quarterly

Attitudes/
Job stress Workload, politics in the workplace, misuse of time Employee Birdir, Tepeci, and Saldamli
by other people, being undervalued, recognition performance, (2003); Brymer (1984); Brymer,
and appreciation of employees, career and physical and Perrewe, and Johns (1991);
THE HUMAN DIMENSION
promotion opportunities, supervisor attitudes and psychological Faulkner and Patiar (1997);
behaviors towards employees (guidance, well-being, Law, Pearce, and Woods (1995);
communication, pressures, favoritism), turnover, job Myers (1991); Reynolds and
communication practices of management, staff strain, Tabacchi (1993); Ross (1993,
shortages, management style, turnover, justice, absenteeism, 1995, 1997, 2005); Saldamli
trust, job security, organizational culture, productivity, job (1999); Topaloglu and Tuna
organizational structure, management’s concern satisfaction, sick (1998); Zohar (1994); Zohar and
over employees’ family-related problems, irregular days, on-the-job Monachello (1996)
working hours and shifts, inadequate tools and accidents,
equipment, long working hours, role conflict, role employee
ambiguity, participation in decision making, morale, job
consultation and communication, pay and satisfaction
compensation, inadequate feedback, work
routinization, job autonomy, interpersonal
relationships with coworkers, unpleasant and
arrogant coworkers, unhealthy working conditions,
performance evaluation, boring jobs, constant
interaction with other people, difficult-to-please
guests, too many changes, lack of time for family
and social activities, limited holidays, meeting high
customer expectations, workplace communication
Organizational Compensation, satisfaction with organizational Job involvement, Feinstein and Vondrasek (2001);
commitment policies, work conditions, advancement and career service Hawkins and Lee (1990);
(continued)
MAY 2010
MAY 2010
Attitudes/
development, union loyalty, job satisfaction, orientation, Iverson and Deery (1997);
mentorship, subjective norm, the job itself, HRM intention to quit, Kinicki, Carson, and
practices, interpersonal and procedural justice, turnover, Bohlander (1992); LaLopa
managers’ behavioral integrity, supervision, discretionary (1997); Lam (2003); Lam, Lo,
training, morale, customer contact, leadership service and Chan (2002); McGunnigle
behaviors, employee group cohesiveness, behaviors, guest and Jameson (2000); Murray,
perceived organizational support, unmet satisfaction Gregoire, and Downey (1990);
expectations, unchallenging and meaningless work, Roehl and Swerdlow (1999);
communication with managers, communication Susskind et al. (2000);
with coworkers Simons and Roberson (2003);
You (1998)
THE HUMAN DIMENSION

HUMAN RESOURCES
Other Issues of HRM practices prevalent in the indus-

try, some researchers have questioned the
In addition to these main perspectives, role of employees as the most important
other issues found in the literature that determinant of service quality, customer
have implications for managing employee satisfaction, and organizational perfor-
performance are staff and skill shortages mance (Johns and Lee-Ross 1997; Losekoot,
and difficulty of attracting and retaining Wezel, and Wood 2001; Nickson et al.
personnel; the need to train employees in 2002; Ostrowski, O’Brien, and Gordon
new communication and information 1994). As a result, we see a need to explain
technologies, HIV/AIDS issues, and secu- the contrasts between academic studies,
rity issues; employment law and minimum theoretical models, managers’ explanations
wages; cross-cultural awareness of opera- of the role of employees, and the realities
tional staff; managing a diverse and mul- and state of people management in the
ticultural workforce; low prestige and industry. We see one or more of following
status of tourism and hospitality jobs; factors as possible sources of this contra-
aging population and advantages and dis- diction: the pool of low-skilled and easily
advantages of older workers; recognition replaceable employees; the existence of
of tourism and hospitality diplomas inter- a large, unemployed labor pool; deficient
nationally; mobility of workers internation- methodology of studies; the competitive
ally; and restrictive government policies. pressure on organizations; lack of union-
(Farrell 2001; ILO 2001; Magd 2003; ization; unprofessional managers and
OECD 2003; Powell and Wood 1999). owners; hypocrisy of managers and own-
ers; high costs and small profit margins;
Emerging Issues from the unstable and insufficient demand; stark
Literature necessities of the structure and conditions
Looking at emerging issues and trends, of the industry such as seasonality and
most noticeable are the contradictions small and medium size organizations; and
and gaps between theoretical proposi- a low cost–low price business strategy.
tions, empirical findings, and the realities More conceptual models, theories, and
of people management in the industry. empirical studies are required to explain
Both theoretical approaches and empirical the gap between words and deeds as well
studies state that human resources and as that between theories, models, empiri-
effective HRM are essential and that cal research, and reality.
employee performance is associated with A second emerging issue relates to the
service quality, customer satisfaction, conceptual developments in the selection
competitive advantage, and organizational of the right employees for tourism and
performance; however, people manage- hospitality organizations. Recently,
ment practices and employment condi- employee personality, service orientation,
tions of many sectors and organizations emotional labor, emotional intelligence,
of the tourism and hospitality industry and aesthetic labor are gaining importance
do not seem to reflect the importance of as selection criteria for tourism and hos-
effective HRM. Accordingly, the contri- pitality employees. Although some prog-
bution of HRM to organizational perfor- ress has been made in regard to the right
mance is undervalued in comparison to qualities and characteristics of employees
other business functional areas (Umbreit to be employed in the industry, more
and Sweeney 1995). Due to the poor state research is needed to define the personality

traits and emotional and aesthetic qualities (see vol. 53 of Personnel Psychology).
of prospective employees as well as how It is important to note that before search-
these traits and qualities actually affect ing for best bundles of HRM practices,
employee, customer, and organizational researchers need to develop considerably
outcomes and whether such people are more basic knowledge of effective HRM
willing to work in and have vocational practices and how to get managers to
commitment to the industry, given the adopt those good practices.
often poor employment conditions. It is The fourth issue requiring further study
yet to be seen whether tourism and hos- relates to the testing of the theoretical
pitality organizations will embrace the models of HRM practices developed in
use of personality tests. Tourism and the strategic management literature. We
hospitality industries have a reputation see three different modes of theorizing
for selecting employees intuitively (or in the field (Delery and Doty 1996; Ferris
opportunistically) and not adopting even et al. 1999). The universalistic approach
established practices such as structured to HRM posits that there are certain
interviews and cognitive ability tests “best” HRM practices that will contribute
(Anastassova and Purcell 1995; Hoque to increased organizational performance
1999b; Ineson and Kempa 1997; McGum- regardless of the industry or organiza-
migle and Jameson 2000; Rowley and tional strategy (Ferris et al. 1999). Accord-
Purcell 2001). ing to this view, all organizations should
The third issue that requires further con- adopt these best practices (Delery and
ceptual development is in the area of the Doty 1996). In contrast, the contingency
best bundles of HRM or high-performance perspective argues that HRM practices of
work practices. Although many research- an organization should be congruent with
ers have looked at various combinations an organization’s strategy and its competi-
of HRM practices and their consequences, tive and strategic position. Finally, the
no consensus exists on the most appropri- configurational approach suggests that an
ate bundles of HRM practices that create organization’s HRM practices should be
the desired consequences in terms of in line not only with its strategy, charac-
employee, customer, and organizational teristics, and competitive position (vertical
outcomes (Warech and Tracey 2004). In or external fit) but also be internally con-
this respect, researchers in tourism and sistent and complementary (horizontal or
hospitality can benefit from progress made internal fit). Thus, this perspective assumes
in general and strategic management and that “there are certain, specific systems
organization science literature. A related of HRM practices that result in the highest
issue concerns the methodology of such internal consistency and complementarity,
studies. Almost all of the studies on HRM as well as congruence with organizational
practices are based on data received from goals. The configuration of practices that
subjective perceptions of managers or provides the tightest horizontal and vertical
department heads. It is possible that man- fit with any given strategy, then, would
agers’ responses on the issue may be be the ideal type for an organization pur-
distorted due to a social desirability effect. suing that particular strategy” (Ferris et al.
Advanced measurement should be applied 1999, 391). Here again the onus is on tour-
for more objective data, and the views of ism researchers to test these theoretical
employees and customers should also be approaches in different organizations
taken into consideration in such studies in terms of size and strategy, as well as

different subsectors of the tourism indus- or employees in the hospitality and tour-
try, and link them with organizational ism industries. With those caveats in
performance outcomes. mind, we offer the following general
The final issue emerging in the indus- guidelines for hospitality and tourism
try’s employee management literature is employee management.
the confusion in the definition and opera-
tionalization of constructs such as HRM
Be Selective in Staffing
practices, internal marketing, and orga-
nizational culture and climate. A closer Tourism and hospitality organizations
examination reveals that the domains, should benefit from more selective staff-
dimensions, and items used to measure ing to ensure essential personality traits
these constructs are similar. For example, and the ability to provide emotional labor,
rewards, training, management style, job emotional intelligence, and aesthetic
security, supervisor or leader support, labor. Some people, by natural disposition,
style and facilitation, role conflict, role seem to be more comfortable and happy
ambiguity, job variety, challenge and in jobs that demand constant interpersonal
autonomy, coworker support, and friendli- relations. Beyond that, research indicates
ness are all used in the measurement of that important personality traits include
internal marketing, organizational culture, conscientiousness, agreeableness, emo-
organizational climate, and HRM prac- tional stability, openness to experience,
tices (Deery and Shaw 1999; Manning, extroversion, empathy, self-efficacy,
Davidson, and Manning 2004). Research- authenticity, the need for activity, self-
ers seem to be studying similar phenom- control, and adjustment. The literature
ena but labeling them differently. We need offers a number of instruments or scales
to distinguish these constructs from each for measuring service orientation (Alge
other or make it clear that they are actually et al. 2002, Baydoun, Rose, and Emperado
referring to the same thing. 2001; Brown et al. 2002; Donavan, Brown,
and Mowen 2004; Groves 1992; Hogan,
Implications for Practical Hogan, and Busch 1984; Kim, McCahon,
Management and Miller 2003; Lee-Ross 2000; McBride,
The complexity of the tourism and Mendoza, and Carraher 1997; Sirakaya,
hospitality industries and their employ- Kerstetter, and Mount 1999). In addition
ment structures complicate the matter of to personality tests, we have already sug-
determining the implications of research gested the use of such established and
relating to them. These industries’ employ- valid practices as structured interviews
ment, workforce, and labor market char- and cognitive ability tests. Career aspira-
acteristics make the management of tions, expectations, and education and
people difficult and different from many other demographic variables of employees
other industries (see Exhibit 9). Even may also be important in selecting the right
using the umbrella terms tourism and employees. For example, older workers
hospitality, we note the vast number of may be more tolerant, emotionally mature,
interrelated and complementary busi- and sympathetic with guests, while younger
nesses and the variety of products and employees may be more energetic. Cer-
organizations of various sizes. As a result, tainly, no age group has a monopoly on
it is impossible to prescribe a single set charm. Researchers have concluded that
of HRM practices for all organizations women generally understand people’s

Exhibit 9:
Characteristics of Employment, Workforce, and Labor Markets in the Tourism and
Hospitality Industry
Labor-intensive industry (high-touch industry)
High levels of labor turnover
Unskilled and semiskilled nature of most jobs
Labor and skill shortages experienced in the industry
Existence of dual labor markets with core and peripheral workforce
High proportion of seasonal, part-time, and on-call workforce
Low levels of employee productivity
Weak internal labor markets
High proportion of nonnationals (ethnic minorities, immigrants), students, and
illegal labor in the industry
High proportion of employees with low-level education and skills
High proportion of younger employees
Higher percentage of employees with a second job
High proportion of self-employment
Very heterogeneous labor market
Gendered nature of employment (high proportion of female employees who are
generally in the lower levels of the occupational structure in the industry)
Low status of employment (poor image of employment in the industry)
Most employment in small and medium-sized organizations
Low level of unionization
The transferability of the skills of employees within tourism and other sectors of
the economy
Employment of marginal and disadvantaged labor (a high proportion of child,
disadvantaged, migrant workers, and “misfits”)
Poor conditions of employment and human resource management practices
(unprofessional employee recruitment and selection; limited orientation and
training; limited opportunity for career development and promotion; low pay
and benefits; absence of overtime payments; low job security; absence of
employee empowerment and participation; “hierarchical,” “autocratic,” and
harsh styles of supervisors and management; routine and monotonous jobs;
harassment and bullying; low job security and stability; limited career
management and prospects; long, irregular, and unsocial hours of work; family-
unfriendly work shifts; no or unprofessional employee performance appraisal;
poor physical work conditions for employees use; demanding managers and
supervisors; poor coworker attitudes; night and weekend schedules; heavy
workload and stress; high rates of work-related injuries, work-related illness,
and violence; labor shortages; lack of time for family; and low quality of life)
Source: International Labor Organization (2001); Kusluvan (2003a); Nickson et al. (2002); OECD (2003).
feelings better than men do (Constanti turnover statistics. In choosing which

and Gibbs 2005). Although the industry employee characteristics are of the great-
needs energetic people, overqualified est utility, managers should hire people
individuals with unrealistic expectations, who fit with the organization’s values,
ambitions, growth need, and career aspi- core competencies, and business strate-
rations may be disappointed with employ- gies. In summary, effective employee
ment conditions and may easily become selection can be facilitated by attention

to service orientation, emotional intel- operations are among the most important
ligence, and cognitive ability tests; role- causes of low job satisfaction, low motiva-
playing during job preview; past experience tion, and low organizational commitment
in selling or customer service roles; struc- and job involvement—all of which drive
tured interviews; realistic job previews; high employee turnover. Meager com-
employee referrals; inclusion of guests in pensation often conveys the message that
selection; examination of bio data; career employees’ efforts and contributions are
expectations; and demographic variables. little valued. Together with a physical and
emotional workload, hospitality employ-
Provide Orientation and Training ees face perceptions of low social status
and prestige, along with poor employment
Proper selection is only the beginning conditions and unsocial and irregular
of the process of developing superior working hours. We suggest that hospitality
employee performance. Orientation and employees’ compensation should be more
training are essential so that employees generous to balance their unfavorable
become acquainted with their work roles; employment conditions. This means that
job-related tasks; and organizational val- pay and benefits should be based on job
ues, beliefs, and social norms. Addition- evaluation, seniority, education and train-
ally, new employees desire to be welcomed ing, positions held, and above all, employee
socially. A study of newcomer socializa- effort and performance. Performance-
tion in the tourism and hospitality industry based incentives and benefits are often an
found that employees valued “elements of important tool for influencing employee
being appreciated, recognized, and praised; performance and can take many forms,
and being made to feel part of the family or including monetary incentives and non-
team” (Young 2003, 307; see also Lundberg monetary incentives and benefits. (For
and Young 1997). Proper orientation and various types of incentives and benefits,
periodic training can provide such ben- see Boella 2000; Lucas 1995; Riley 1996;
efits as superior employee performance, Ohlin and West 1994; Sturman 2006;
employee productivity, commitment and Themduangkhae 2002; Woods 1997.)
job satisfaction, role clarity, intention to
remain in the organization, and service Practice More Friendly and Humane
quality. The literature provides solid guide- Supervision and Management Style
lines and coverage of effective orientation
and socialization (Young 2003) and train- Inappropriate management style is also
ing programs, tactics, and strategies (Janes a pervasive feature of the tourism and
2003). Notably, since tourism is an inter- hospitality industry. Researchers agree
national activity and many employees are that the tourism and hospitality industry
from different cultures and ethnic origins, is characterized by hierarchical and auto-
cultural differences of various customer cratic styles of management, variously
and employee groups should be considered expressed as directive, arbitrary, pater-
during orientation and training. nalistic, impulsive, unpredictable, ama-
teur, and despotic (Kusluvan 2003a). Poor
Offer Competitive and Fair Pay management style is often attributed to
and Benefits unprofessional or unqualified managers
and “unbridled individualism,” character-
The low pay and poor benefits com- ized by a high level of management pre-
monly found in hospitality and tourism rogative due to the lack of a strong internal

labor market and unionized labor force work pressure, role conflict, role ambigu-
(Lucas 1996). Researchers have identified ity, family–work conflict, and role respon-
such management issues as poor com- sibility); physical security; valued social
munication and rapport; insensitivity to position; cognitive, physical, and emo-
employees’ wants, needs, problems, and tional demands; surveillance and supervi-
culture; insufficient career and work guid- sion; environmental clarity (role clarity,
ance; injustice; inability to involve and task feedback, and absence of job inse-
guide employees; uncaring, unsupportive, curity); and income level (Warr 2002).
rude, disrespectful attitudes, and behaviors To state the obvious, many tourism and
towards employees; and lack of apprecia- hospitality jobs can be dull, routine, low-
tion of the work done by employees. To skilled, and low-status. Numerous studies
remedy such managerial deficiencies, propose ways to design work so that it is
organizations must hire and develop lead- meaningful. Practices such as job rotation,
ers who can create commitment, trust, job enlargement (increasing task or skill
success, and a motivating work environ- variety by adding new tasks of similar
ment. Department heads should be trained nature), job enrichment (increasing job
about the wants and needs of the employ- content by giving workers decision-making
ees, and their managerial skills should be responsibility and autonomy), semiau-
developed. In short, there is a need for tonomous work groups, and self-managing
more humane and people-oriented manag- teams can be used where applicable. Parker
ers in the industry. (2002) argues that job rotation and job
enlargement can make work more inter-
Consider Job Characteristics esting and alleviate some of the physical
and Job Redesign strain and boredom, as can job enrichment
and autonomous work groups. Needless
Job design refers to “the process of defin- to say, individual differences may modify
ing job tasks and the work arrangements the approach taken to job design, so jobs
to accomplish them” (Schermerhorn, should be designed to match jobs with
Hunt, and Osborn 2005, 146). One of the employees’ characteristics, needs, and tal-
most influential job design theories, the ents. Work simplification may be the best
job characteristics model, argues that way to motivate and satisfy some employ-
skill and task variety, task identity, task ees, whereas others could be happy with
significance, job autonomy, and feedback highly enriched and autonomous jobs.
from the job produce three psychological
states in employees, namely, experience Involve and Empower Employees
of the meaningfulness of the work, expe-
rience of the responsibility for outcomes The tourism and hospitality literature
of the work, and knowledge of the actual has so far indicated that managers in the
results of the work activities. In turn, these tourism and hospitality industry do not
psychological states collectively influence use a participatory decision-making and
motivation, satisfaction, and work per- management style, leaning instead toward
formance (Hackman and Oldham 1980). autocratic, authoritarian, and command
Others argue that other job features do and control based supervision (Deery and
this for employees, including opportunity Jago 2001; Okumus 2003). It is no secret
for skill use; social contact; learning and that such a nonparticipatory managerial
personal control; externally generated style is not the best way to gain employee
goals (job or task demands, workload, commitment, satisfaction, or performance.

Employee involvement and empowerment hospitality employees seek even greater

techniques can be used to conquer the levels of accolades than those in other
hearts and minds of employees and help industries. We note numerous studies
generate employee commitment, satisfac- showing that tourism and hospitality
tion, and performance. Lashley (2003) employees complain about being under-
introduces a number of participative, valued; unappreciated; and not recognized,
consultative, and commitment forms for respected, or rewarded on par with their
involving and empowering employees. efforts. Certainly one reason for this is
Participative forms include autonomous the low status or low prestige typically
work groups and job enrichment; consul- accorded to hospitality and tourism jobs
tative forms consist of quality circles and (Kusluvan 2003a). We see that employ-
team briefings; and commitment forms ment conditions and HRM practices are
cover some high-performance or high- a second source of employees’ weak
commitment work approaches such as esteem. Undoubtedly, these two factors
high and fair pay, careful selection and influence and reinforce each other. Con-
recruitment, training and development, sequently, anything that enhances employ-
good and fair performance review, open ees’ self-esteem and conveys the idea that
and good communication between man- they are appreciated, valued, recognized,
agement and employees, and treating and respected will increase their satisfac-
employees with dignity, fairness, and tion, commitment, and performance. The
respect. Other writers have pointed out literature suggests that this will be accom-
empowerment initiatives such as self- plished by some or all of the following:
esteem and communications training, measuring and rewarding achievements
open-door policies, self-directed work and service performance; paying high and
teams, cross-training, task forces, manage- fair wages; increasing employee skills
ment by walking around, employee sur- and competence through training and
veys, sensing groups, information sharing, development; internal promotion; open
delegation strategies, involving employ- communication with employees; involving
ees in identifying causes of poor service and empowering employees; participatory
quality, encouraging and rewarding managerial style; treating employees with
employees for suggestions and innovative respect, dignity, and politeness; organi-
ideas, and empowering employees to zational fairness and support; fulfilling
respond to guest needs (Enz and Siguaw employees’ needs and acting in their best
2000; Hughes 2003). Employee involve- interest; valuing employee contributions;
ment and empowerment techniques can providing job autonomy; forming autono-
increase employee satisfaction, self-worth, mous work groups; recognition programs
commitment performance, and service and incentive rewards for achievements;
quality, while they decrease employee providing adequate resources for doing
turnover and labor costs (Enz and Siguaw jobs; supervisor and coworker support;
2000; Hughes 2003; Lashley 2003). and social activities to develop work group
cohesion (Cyr 1992; McAllister and Bigley
Recognize, Respect, and 2002; Newstrom, Gardner, and Pierce
Reward Employees 1999). Managers and supervisors have a
special role in recognizing and respect-
Although all workers seek recognition ing employees. As Cyr (1992, 1) noted,
and respect, it seems that tourism and “Error-probing questions, the criticism of

subordinates in the presence of peers, the management and organization, customers,

display of an attitude of superiority when and their own personal responsibilities.
speaking with clerical staff, and fault- To mitigate such stress, employees’ roles
finding in major projects are some of the should be clearly defined, and they should
verbal affronts to self-esteem. Belittling be empowered to decide when acceding
the assigned tasks of employees, holding to customers’ wishes overrides the guide-
grudges that are reflective of disapproval lines of the supervisor or organization.
of specific employees, and the uneven Work overload can be reduced by remedy-
distribution of work are among the actions ing staff shortages, employing extra
which supervisors must guard against. personnel during high-demand periods,
The failure of supervisors to listen, to and reducing long and irregular working
commend employees on a job well done, hours. Ensuring job security is challeng-
and to seek the input of qualified person- ing, due to the seasonal and unstable
nel are also damaging to the employees’ nature of hospitality demand. Still, man-
self-esteem.” agers can seek to forge long-term employ-
ment relationships for productive, talented
Reduce Job (Work Role) Stress core staff who want to make a career in
the industry. The core staff can be comple-
Job stress or work-role variables influ- mented with students, part-time workers,
ence employees’ job satisfaction, work or on-call employees during the high
performance, and turnover. Job stress season, provided that they are effectively
“exists when an employee is unable to trained to do their jobs. Likewise, the
fulfil the demands of his or her job” (Price industry’s irregular and long working
1997, 499). While some stress may stimu- hours often interfere with employees’
late people to perform at higher levels, nonwork responsibilities. The stress from
chronic stress can cause health problems, this conflict can be mitigated by family-
loss of productivity, accidents, absentee- friendly policies, such as on-site day care,
ism, and turnover (O’Driscoll and Cooper child-care and elder-care referrals, flexible
2002). Intrinsic job characteristics, haz- hours, compressed workweeks, job shar-
ardous work, role conflict, role ambiguity, ing, convenient and flexible work sched-
heavy workload, resource inadequacy, uling, and allowing child-care leave and
interrole (work-family) conflict, job inse- career breaks. Finally, career guidance
curity, interpersonal relationships at work, and growth opportunities can reduce
lack of career development, and organi- employees’ stress and encourage their
zational structure and climate are the retention. The idea of career ladders is
major stress variables (O’Driscoll and attractive in theory, but the fact is too
Cooper 2002; Price 1997). For hospitality many people would be chasing too few
employees, job characteristics, interper- high-level positions. While big and chain
sonal relationships (managerial style and organizations may have some opportunity
support and coworker cohesion and sup- to offer job rotation and internal promo-
port), role conflict, role ambiguity, heavy tions for their talented employees, it may
workload, job insecurity, work-family be impossible for small and medium-size
conflict, and lack of career development independent firms to provide such career
are the main stressors. With regard to role opportunities. For smaller firms, the best
conflict and ambiguity, employees are strategy is to be realistic in terms of hiring
often torn among the demands of the and promotion.

Improve the Conditions of Employee developed by Kusluvan and Karamustafa

Accommodation (2003), begins with an organization-wide
cultural audit (Exhibit 10). If the current
Many tourism and hospitality organiza- culture is not consistent with organiza-
tions, especially those that operate seasonal tional missions, objectives, and strategies,
resorts, provide food and accommodation then management must seek to embed new
for their employees. A number of studies values, attitudes, and behaviors. If the
have shown that such physical facilities prevalent culture is in line with organiza-
for, and services given to, employees may tional missions, objectives, and strategies,
occur in de-motivating conditions and may then the current culture is strengthened.
contribute to job dissatisfaction and turn- This can be accomplished through human
over (Kozak and Akoglan 1995; Kusluvan resource practices; organizational symbols,
and Kusluvan 2000). In fact, poor physical stories, ceremonies, and language; leader-
conditions of employee dormitories, dining ship and role models; and organizational
halls, and bathrooms may convey the idea structure and design. The second model,
that employees are not valued or cared for. developed by Gross and Shichman (1987),
To prevent such misconceptions, physical stresses the development of a sense of
facilities and services for employees should history, the creation of a sense of oneness,
be improved. the promotion of a sense of membership,
and increasing exchange among members
Create a Culture Conducive to through various practices (Exhibit 11). In
Organizational Performance summary, tourism and hospitality organi-
zations need to cultivate an organizational
Organizational culture can be a critical service-oriented culture in which a set of
influence on employee performance, relatively long-term organizational activi-
service quality, customer satisfaction and ties and practices are designed to create,
loyalty, and organizational performance. support, deliver, and reward excellent
We do not accept the assertion by some service (Lytle, Hom, and Mokwa 1998).
researchers that, due to the high labor
turnover and poor employment conditions Provide Strong Leadership and Vision
and HRM practices, it is impossible to
create an organizational culture that sup- Strong and effective leadership, which
ports success (Iverson and Deery 1997; is paramount for tourism and hospitality
Ogbonna and Harris 2002). Instead, we organizations, is also related to perfor-
note that examination of highly success- mance, employee satisfaction and turn-
ful service firms shows that organization- over, and organizational productivity and
wide cultural values can be modeled and success (Gillet and Morda 2003). Leaders
cultivated by strong leadership (Berry should develop a vision of the organiza-
1999). Berry (1999) identified the fol- tion’s future that embraces values, goals,
lowing success-sustaining values in high- and strategies that employees can under-
performance service companies: excellence, stand, support, and believe in. The leader
innovation, joy, respect, teamwork, integ- must communicate the vision and inspire
rity, and social profit. Two models suggest employees to realize the vision (Gillet
how tourism and hospitality organiza- and Morda 2003). In addition to articulat-
tions can create an organizational culture ing a vision, hospitality and tourism
conducive to success. The first model, leaders should have interpersonal and

Exhibit 10:
A Framework for Managing Organizational Culture in Tourism and Hospitality
Organizations
Assessing Current Organizational Culture

(Cultural Audit)
Current culture is not aligned with Current culture is aligned with

organizational missions, objectives organizational missions, objectives and
and strategies. strategies.
Define new values, attitudes and Strengthen the current culture of the
behaviors that are critical for organization.
organizational success.
Cultivate desired values, attitudes and behaviors through:

• Human resource management practices,
• Organizational symbols, stories, ceremonies and language,
• Leadership and role models,
• Organization structure and design.
Source: Kusluvan and Karamustafa (2003, 474).
communication skills, flexibility, a strong the company’s values in their daily behav-
personal value system, transformational ior, cultivate the leadership qualities of
leadership qualities, the ability to listen, others in the organization, assert core
a capacity to trust others and to inspire values during difficult times, continuously
trust in others, a willingness to persevere, challenge the status quo, and encourage
effective communication skills, determi- employee’s hearts with caring, involve-
nation, hard work, behavioral integrity ment, participation, opportunity, fairness,
(congruency between words and deeds), and recognition.”
loyalty, and a caring attitude towards
employees (Bond 1998; Brownell 1994; Design and Implement an HR and
Cichy, Sciarini, and Patton 1992, Cichy Workforce Balanced Scorecard
and Schmidgall 1996; Gillet and Morda
2003; Greger and Peterson 2000; Simons The balanced scorecard is a manage-
1999; Tracey and Hinkin 1994; Worsfold ment tool that provides a framework to
1989b). Leaders should set achievable measure facets of organizational perfor-
goals for employees and provide clearly mance and integrate and translate business
defined roles, means, and rewards to strategy into action (Kaplan and Norton
achieve these goals. As Berry (1999, 237) 1996, 2000). Although researchers cited
succinctly puts it, “Leaders articulate the various benefits from applying a balanced
company’s reason for being, define the scorecard (Huckestein and Duboff 1999;
meaning of organizational success, live Denton and White 2000), there seems to

Exhibit 11:
Methods for Growing an Organizational Culture
METHODS INTERVENING OUTCOME

CONDITIONS
• Elaborate on history
• Communications about and by Develop a sense of
H History
“heroes”
• Leadership and role modelling Create a sense of

O Oneness
• Communicating norms and
values
• Reward systems
• Career management and job Cohesive
security Promote a sense of
M organizational
• Recruiting and staffing Membership
culture
• Socialization of new staff
members
• Member contact
• Participative decision making Increase Exchange
E among members
• Intergroup coordination
• Personal exchange
Source: Gross and Shichman (1987, 54).
be minimal appreciation and application competencies, mindset, and culture

of the HR-oriented component of the required for workforce success and reveals
original balanced scorecard approach as how that workforce success affects the
regards learning and growth (Maltz, organizational bottom line (Becker,
Shenhar, and Reilly 2003; McPhail, Her- Huselid, and Ulrich 2001; Huselid, Becker,
ington, and Guilding 2008). However, the and Beatty 2005). Hospitality organiza-
application of the balanced scorecard tions have used and realized the benefits
concepts and techniques to HR functions of the scorecard approach to manage and
and workforce management and measure- measure HR function and workforce suc-
ment provides useful models or frame- cess (Bhatnagar, Puri, and Jha 2004). For
works to evaluate the contribution of the tourism and hospitality organizations, the
HR function and the workforce to orga- HR and workforce scorecards offer an
nizational performance. For example, one important strategic tool to evaluate the
can develop an HR scorecard to capture contribution of the HR function and the
the effectiveness HR function and its workforce to strategy implementation and
contribution to a business’s success and organizational performance and to tie the
competitive advantage (Becker, Huselid, compensation system to employee perfor-
and Ulrich 2001; Beatty, Huselid, and mance and efficiency of HR function.
Schneier 2003; Walker and MacDonald In the final analysis, the role of HRM
2001), whereas a workforce scorecard is to contribute to the implementation of
identifies and measures the behaviors, business strategy, business objectives,

and performance of a tourism or hospital- International Journal of Hospitality Management 17

(2): 145-60.
ity organization. Although the HRM best Hoque, K. 1999. Human resource management in the hotel
practices that we discussed here may be industry: Strategy, innovation and performance.
demanded by employees and are advo- London: Routledge.
Hughes, J. M. C. 2002. HRM and universalism: Is there
cated in the HRM literature, the interests one best way? International Journal of Contemporary
of the organization will prevail over those Hospitality Management 14 (5): 221-28.
International Labor Organization. 2001. Human resources
of the employees (Hammonds 2005). development, employment and globalization in the
Given the differences among the many hotel, catering and tourism sector: Report for discus-
tourism and hospitality organizations, no sion at the tripartite meeting on the human resource
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The need for a new agenda? International Journal of
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who contribute most to the bottom line. International Journal of Hospitality Management 23
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Appendix industry. 3rd ed. Harlow, UK: Longman.
Organization for Economic Cooperation and Development.
Reading List 2003. Proceeding of the conference “Challenges and
Policies Regarding Human Resources in Tourism,”
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Salih Kusluvan, Ph.D., is a professor and dean at the Faculty of Commerce and Tourism Education at the
University of Nevsehir, Turkey (skusluvan@nevsehir.edu.tr), where Zeynep Kusluvan, Ph.D., is an asso-
ciate professor (zkusluvan@nevsehir.edu.tr), Ibrahim Ilhan, Ph.D., is an assistant professor (ibrahim@
nevsehir.edu.tr), and Lutfi Buyruk, Ph.D., is an assistant professor (buyruk@nevsehir.edu.tr). We are
grateful to Glenn Withiam, who skillfully edited and vastly improved the original manuscript.

The Human Dimension: A Review of Human Resources Management Issues in The Tourism and Hospitality Industry

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 2010 CORNELL UNIVERSITY

by SALIH KUSLUVAN, ZEYNEP KUSLUVAN, IBRAHIM ILHAN, and LUTFI BUYRUK

MAY 2010 Cornell Hospitality Quarterly 171

Wernerfelt 1984) and its variants— policies, practices, systems, capabilities,

172 Cornell Hospitality Quarterly MAY 2010

ANTECEDENTS PROCESSES OUTCOMES

HUMAN CAPITAL WORK RELATED

BUSINESS AND HRM

MAY 2010 Cornell Hospitality Quarterly 173

174 Cornell Hospitality Quarterly MAY 2010

At the personal level, personality satisfaction, employee commitment, and

MAY 2010 Cornell Hospitality Quarterly 175

Emotional and Aesthetic Labor HRM Practices and Outcomes

176 Cornell Hospitality Quarterly MAY 2010

activities; and (3) whose work-related various bundles of HRM practices

MAY 2010 Cornell Hospitality Quarterly 177

178 Cornell Hospitality Quarterly MAY 2010

MAY 2010 Cornell Hospitality Quarterly 179

managing people in a traditional and Regarding the consequences of such

180 Cornell Hospitality Quarterly MAY 2010

MAY 2010 Cornell Hospitality Quarterly 181

INTERNAL MARKETING EXTERNAL MARKETING

Extra-role External External External

Source: Bansal, Mendelson, and Sharma (2001, 65).

182 Cornell Hospitality Quarterly MAY 2010

Organizational HRM Organization Employee Employee Organization

Source: Ferris et al. (1998, 238).

MAY 2010 Cornell Hospitality Quarterly 183

and hospitality industries. In an early, approach, used a flexible and segmented

184 Cornell Hospitality Quarterly MAY 2010

MAY 2010 Cornell Hospitality Quarterly 185

Employee Job Attitudes, Behaviors, behaviors or behavioral repertoires that

186 Cornell Hospitality Quarterly MAY 2010

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188 Cornell Hospitality Quarterly

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Other Issues of HRM practices prevalent in the indus-

192 Cornell Hospitality Quarterly MAY 2010

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feelings better than men do (Constanti turnover statistics. In choosing which

MAY 2010 Cornell Hospitality Quarterly 195

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MAY 2010 Cornell Hospitality Quarterly 197

Employee involvement and empowerment hospitality employees seek even greater

198 Cornell Hospitality Quarterly MAY 2010

subordinates in the presence of peers, the management and organization, customers,

MAY 2010 Cornell Hospitality Quarterly 199

Improve the Conditions of Employee developed by Kusluvan and Karamustafa

200 Cornell Hospitality Quarterly MAY 2010

Assessing Current Organizational Culture

Current culture is not aligned with Current culture is aligned with

Cultivate desired values, attitudes and behaviors through:

Source: Kusluvan and Karamustafa (2003, 474).

MAY 2010 Cornell Hospitality Quarterly 201

METHODS INTERVENING OUTCOME

• Leadership and role modelling Create a sense of

Source: Gross and Shichman (1987, 54).

be minimal appreciation and application competencies, mindset, and culture

202 Cornell Hospitality Quarterly MAY 2010