Assessment Front Sheet

Student First name/s Kuburat

Student Family
Lemboye
Name / Surname

GBS ID Number 211473

Programme title Tourism and Business Management

Cohort September 2023
Level Level 5
Module Number 2
Component of
assessment 1
(either 1 or 2)
Campus Leeds
Group (A1, E2 etc) B1
Assessment Word
4003
Count submitted
Lecturer Name who
Dr. Lilian Smart
taught the module
Student Signature
(please type your Kuburat Omolara Lemboye
name)

Date 28/11/2023
Human Resource Management in the Tourism Industry

Human resource management (HRM) is a strategic and integrated approach to the employment,
development and well-being of employees in organisations (Armstrong & Stephen, 2020). It
operates through human resources (HR) systems that align HR philosophies, strategies, policies,
processes and practices with organizational objectives and strategic plans (Armstrong, 2006).

The functions of HRM encompass strategic planning, recruitment, staffing, compensation and
benefits, employee induction, training and development, employee relations, performance
evaluations and risk management (Ahammad et al., 2018). These functions are linked to other
corporate functions like finance, marketing, operations, and strategy. HRM helps in aligning
human capital with organizational objectives, providing employees with resources and support
for optimal performance, and collaborating with finance to budget for compensation, training,
payroll, taxes, and other related functions.

HRM assists marketing by recruiting, training, and retaining creative talents for innovative
product and service design and delivery. Furthermore, it actively contributes to developing
branding, communication, and feedback initiatives.

HRM automates the supply of resources, expertise, and abilities within operations while
supporting planning, performance evaluation, and handling health and safety concerns.

Above all, HRM is a cornerstone for building a competitive edge and aligning human capital
with corporate strategy, change management, culture, and leadership development (Werbel &
Demarie, 2005).

The article highlights the evolving roles and importance of HRM functions for organizations,
exploring various HRM models, theories, and their application in the tourism industry. It delves
into various staff selection and induction processes and examines the impact of learning, e-
learning, knowledge management, and staff retention on organizational performance.

HRM of Contemporary Organisations in the Tourism Industry

In the 21st century, Human Resource Management (HRM) is not just an administrative or
personnel function. Still, it functions as a strategic partner that contributes to the overall
organisational success (Ananthram, 2016). HRM functions encompass handling employee-
related matters such as workforce planning, recruitment, training, compensation, team building,
employee engagement, industrial relations, and health and safety issues, aimed at optimizing
performance and achieving organizational goals (Kaur & Kaur, 2022). The importance of HRM
in contemporary organizations is to contribute to organisational success through talent
management, performance, learning, diversity, technological integration and change initiatives. It
meets individual aspirations and aligns with strategic business needs (Holland, 2019).

One of the industries that requires effective HRM to be competitive is the tourism industry,
which is characterised by high labour intensity, seasonality, diversity, and customer orientation
(Milićević & Petrović, 2019). However, in the 21st century, the nature of tourism work is
changing due to higher level of overseas travel, technological integration, larger number of
multinational groups, greater job mobility, higher customer care expectations, reduction in
seasonal differences, greater need for multi-skilling, and health and safety issue. The tourism
industry faces many external factors that affect its demand and supply, such as high fare,
terrorism, visa and flight problems, COVID-19, Russian and Ukraine war, and Brexit (Khan et
al., 2020; Knittel, 2020). These factors can lower the number of tourists, the quality of services,
and the profitability of tourism operations. Therefore, HRM in the tourism industry needs to
adapt to the changing environment and ensure employees' and customers' quality and
satisfaction.

In contemporary organizations, HR has transformed from an administrative role to a strategic

partner, functional expert, human capital developer, employee advocate and champions
(Mukkelli, 2015). In the tourism sector, HR evolves as a strategic partner collaborating with
senior management by aligning with organizational goals, shaping marketing strategies to attract
talent, and optimizing human resource utilization to manage demand fluctuations (Francis &
Baum, 2018).

As a human capital developer, HRM fosters a positive workplace culture, well-being in

demanding roles, learning and development opportunities for career growth for employees
resulting in enhancing customer service. The tourism industry offers career planning, training,
coaching, and mentoring, enhancing performance and loyalty (Alamu, 2016).

As functional experts, they can apply technology to automate payroll, onboarding, and
attendance tracking, allowing HR to focus on strategic initiatives like improving tourism quality
and tourist satisfaction. They can use social media, referrals, employer branding, assessments
and online tools to evaluate candidates' skills and fit efficiently to improve the tourism industry's
image and workforce quality (Knittel, 2020). HR in tourism can turn to data analytics for
informed decisions, adjusting staffing to seasonal demands and unexpected crises with agility.

As employee advocates, HRM can boosts relations, culture, and diversity in tourism. This will
reduce turnover, increases satisfaction, and enhances performance through goal-setting,
feedback, appraisals, and incentives.

In the 21st century, HRM is vital for organizational success, evolving from administration to
strategic partnership. In tourism, HRM aids survival, adaptation, and achievement of
organizational goals.

Understanding HRM Approaches and HRM Link to Organisation Performance

HRM is a multifaceted field, and various models and approaches offer insights into its
complexities (Banfield et al., 2018). Two prominent models, the Harvard and Michigan models,
provide distinct perspectives and comprehensive frameworks for managing human resources
within organizations (Beer et al., 2015). The Harvard Model values employees as assets,
focusing on the interdependence of HR policies (Kaufman, 2015). Its emphasis is human
resource flow, reward systems, employee influence, and work systems. It stresses aligning HR
practices with organizational goals and employee needs. Conversely, the Michigan Model
prioritizes HR system alignment with organizational strategies, emphasizing selection, appraisal,
rewards, and development for internal consistency and integration with organizational objectives.

Beyond these models, the Soft and Hard HRM approaches provide insights into the human
aspect and efficiency-driven perspectives. The distinction between them reflects different
approaches to employee management. Soft HRM places importance on the human aspect,
fostering employee-friendly policies, trust, communication, and employee participation in
decision-making (Mhango, 2023). On the other hand, Hard HRM adopts an efficiency-driven
approach, treating employees as resources to be managed like any other organizational resource,
emphasizing strict control and measurable outcomes (Truss et al., 1997).

In considering HRM approaches, the dichotomy between Best Practices and Best Fit is crucial.
The Best Practices and Best Fit approaches offer choices for organizations based on their context
and strategies. Best Practices advocates for a set of universal HR practices proven to be effective
across industries, while Best Fit is situation-specific approach which emphasizes aligning HR
practices with the unique characteristics of the organization, adapting to its strategy, structure,
and culture (Krishnan & Scullion, 2017).

Lastly, the Strategic Approach to HRM aligns human resources with organizational strategy,
viewing employees as assets for business objectives. This approach emphasizes integrating HRM
with broader organizational strategies for sustained success (Holbeche, 2022).

Understanding the link between HRM and organizational performance link is crucial for
sustained success in the integration of these approaches into HR practices (Garengo et al., 2022).
Organizational performance, encompassing objectives like customer satisfaction, profitability,
productivity, and innovation, hinges on HRM outcomes—skills, attitudes, behaviour, employee
performance, engagement, and well-being—essential for sustaining a competitive advantage
(Ogbonnaya & Aryee, 2021). HRM practices can improve employee performance by increasing
their ability (through training and development), motivation (through rewards and recognition),
and opportunity (through participation and empowerment) (Boxall & Macky, 2016). These HR
outcomes are intricately connected to business strategies such as cost, quality, and innovation
and the interplay of this link can affect the quality of goods and services, productivity, financial
performance, and profitability (Bakator et al., 2019). Therefore, HRM serves as a link, aligning
the strategic goals and needs of the organization with the performance and well-being outcomes
of its practices (Trehan & Setia, 2014). Adopting a mutual gains perspective can foster a social
exchange relationship and satisfying employees' psychological needs for autonomy, competence,
and relatedness, ultimately contributing to improved financial performance and profitability for
the organisation (Ogbonnaya & Aryee, 2021).

Strategic Employee Recruitment in the Tourism and Hospitality Industry

Recruitment is the process of attracting, screening and selecting qualified candidates for a job
role (Ghosh, 2020). Recruitment is one of the key functions of human resource management
(HRM) in the hospitality and tourism industry, as it helps to acquire and retain the human capital
that is essential for delivering quality service and customer satisfaction. The recruitment process
comprises several stages including job analysis, sourcing, screening, interviewing, selection, and
onboarding and induction (Armstrong, 2006). Job analysis involves delineating duties,
responsibilities and qualifications essential for a role. This forms the basis for crafting job
descriptions. A job description is a document that outlines the duties, responsibilities,
qualifications, and other details related to a specific job or position within an organisation,
serving as a guide for employers and employees (Cascio & Aguinis, 2019). Job descriptions
initiate recruitment by identifying requirements and aligning strategies with organisational goals
(Mathis et al., 2015). Sourcing involves attracting candidates through various channels, such as
social media, job portals, and recruitment agencies. Screening evaluates resumes, while
interviews and selection assess candidates' suitability. The screening and selection phase
employs various methods, including interviews, tests, and background checks. Once decisions
are made, the onboarding and induction process involves finalising offers and orienting new
employees to the organization. This systematic approach ensures effective talent acquisition and
organizational alignment (Verhulst & DeCenzo., 2021)

Successful talent acquisition requires strategic recruitment methods, which encompass the
channels and techniques for engaging potential candidates (Chun & Evans, 2023). These
methods, classified as internal and external, come with distinct advantages and disadvantages,
contingent on the specific context (Abdalla Hamza et al., 2017). Internal recruitment methods
involve hiring from within the organization either through internal job postings, promotions,
transfers, referrals, or rehiring former employees. Its advantages are cost-effectiveness,
motivation, and retention benefits of existing employees. While they provide familiarity and fit,
they may limit diversity, create vacancies, risk stagnation, and lead to conflicts among
employees. External recruitment involves hiring from outside the organization employing
methods like advertising, job fairs, campus recruitment, online platforms, and agencies. It offers
advantages, such as access to a broader talent pool and diversity, reducing the risk of inbreeding
and stagnation, and fostering innovation and a dynamic workplace. However, external
recruitment has its disadvantages. It is costlier and more time-consuming than internal methods,
potentially impacting productivity, causing demotivation, increased turnover and lowered morale
among existing employees. Therefore, there is a need to balance these methods for effective
talent acquisition, diversity and inclusion through a bias-free recruitment process.

In the fast-paced tourism industry, HRM encounters challenges like high turnover linked to low
wages and irregular working hours (Abdelazim, 2023). The Office of National Statistics (ONS)
noted a 30% difficulty in filling vacancies due to a shortage of qualified candidates, negative
industry perceptions, and competition from other sectors (ONS, 2021). 68% of tourism
businesses organizations rely on online recruitment methods for talent acquisition (Johnson et al.,
2021). This shows the dependence on digital platforms for recruitment.

HRM function in Employee Selection and Induction

In HRM, the process of selecting and onboarding employees plays a pivotal role in shaping the
success of an organization (Boxall & Purcell, 2022). Selection is the decision-making process of
choosing the most qualified individual from a pool of applicants for a position in an organisation
(Wilton, 2022). Selection is choosing the right person for the right job (Carbonell et al., 2020).
The process entails meticulously identifying candidates who align with job descriptions and
person specifications essential for organizational performance (CIPD, 2023).

The selection process starts with job analysis to discern specific position prerequisites and
unfolds through various steps (Dessler, 2020). The steps involved are candidate sourcing,
preliminary screening, review of applications and resumes, selection tests, interviews,
assessments, pre-employment screening, background and reference checks, selection decision,
medical examination and final decision. Each step is carefully designed to evaluate a candidate's
suitability for the job and organisation (Breaugh & Starke, 2000). The first step is preliminary
screening, wherein received application materials are reviewed to streamline qualified
candidates. The subsequent step employs various tests - written, oral, practical, or simulated - to
gauge abilities, skills, and personality traits, ensuring reliability, validity, and fairness. Interviews
are conducted after tests, to assess candidates' suitability for the job and provide information
about the organization. The next step is pre-employment screening involving reference and
background checks. Medical examinations, covering vision, hearing, and health conditions, may
be conducted thereafter to ascertain candidates' fitness for the role. The final decision-making
step entails offering employment to successful candidates, contingent on the terms and
conditions of the employment contract. This sequential process optimizes efficiency and
resources while ensuring the selection of the most suitable candidates.

Various selection methods such as application forms, interviews, tests (general intelligence,
aptitude, personality, skill, trainability and situational judgment), assessment centres,
assessments, reference checks, and background checks are used to evaluate a candidate's fitness
for a role. The use of assessment centres is a holistic approach that observes behaviours and
interactions, employing multiple techniques -interviews, tests, simulations, exercises, and group
discussions - ensuring a comprehensive assessment of candidates' competencies and suitability
for the job (Robertson & Smith, 2001).

Staff induction, also known as onboarding, is the process of integrating new employees into the
organization by providing essential information, training, and support for effective job
performance (Bauer, 2010). This process involves orientation, on-the-job and off-the-job
training, buddy systems, and mentoring. A well-structured induction program boosts motivation,
socialization, and integration, aligning employees with company values, reducing turnover, and
enhancing performance (Wanberg, 2012).

In tourism, where human resources are pivotal for customer experiences, effective selection is
crucial. Selection methods should assess communication, interpersonal skills, and cultural
competence in talent acquisition (Watson et al., 2004). Customizing induction programs for
customer-facing roles, encompassing service expectations, safety, diversity, and cultural
sensitivity, is vital for meeting tourist needs and industry success. The tourism sector's intricacies
emphasize the importance of meticulously customizing selection and induction, ensuring well-
prepared and aligned employees for overall success.

Understanding the Concepts of Human Resource Management: Human Resource

Planning, Performance Management, Talent Management and Career Management

Human resource planning, performance management, talent management, and career

management are interconnected concepts designed to maximize an organisation's human capital.
These encompass diverse processes, methods, and strategies to attract, develop, motivate, and
retain top talent aligned with organisational goals.

Human resource planning is the process of determining the optimal quantity and quality of
employees needed by a company (Aslam et al., 2013). Human Resource Planning (HRP) is
centred on aligning the right persons with the right jobs at the right time, preventing manpower
imbalances. HRP incorporates company strategy, staffing needs, skill gaps, redundancies, and
external factors (Buller & McEvoy, 2012). The HRP process encompasses supply and demand
forecasting, gap analysis, and strategic development (Armstrong & Stephen, 2020). Its
importance lies in aligning the workforce with organisational goals, anticipating skill gaps,
optimising human capital utilisation, minimising staffing costs and risks, enhancing employee
satisfaction and retention, and facilitating talent management (Kucukusta, 2017). In the tourism
sector, HRP is crucial to prevent understaffing or overstaffing issues during peak seasons,
ensuring consistent customer service.

Performance management is the continuous process of enhancing employee and team

performance through goal-setting, planning, reviewing, assessing, and skill development aligned
with organizational strategic goals (Armstrong, 2022). It aids in recognising achievements,
providing feedback, and tackling issues like underperformance, low motivation, poor quality,
and low productivity. The components of performance management in the Performance
Management cycle include performance planning, monitoring, reviewing, and rewarding (CIPD,
2023). Performance planning involves defining and communicating expectations and aligning
them with organizational goals. Monitoring tracks performance against these standards,
analysing data on quantity, quality, and timeliness. Reviewing assesses and appraises
performance strengths, weaknesses, and areas for improvement. Rewarding acknowledges and
incentivizes achievements, fostering motivation and retention, and reinforcing desired
behaviours.

Talent management is the process of, involves attracting, developing, and retaining skilled
employees who can contribute to organizational success (Al-Dalahmeh, 2020). In the context of
tourism, talent management, is crucial for retaining skilled personnel. Various approaches or
functions contribute to effective talent management include succession planning, performance
management, employee or talent planning, talent acquisition, talent development, and employee
compensation (Yildiz & Esmer, 2023). Succession planning establishes a leadership pipeline,
performance management enhances employee performance, and employee planning aligns the
workforce with organizational goals. Talent acquisition focuses on recruiting top talent, while
talent development facilitates employee growth.

Career management is the process by which employees identify their interests, values, strengths,
and weaknesses, explore internal job opportunities, and develop plans to attain their career goals
(Wilton, 2022). It is a systematic process guiding professional growth with goal-setting, skill
development, and advancement opportunities. It is important for both employees and
organizations and requires continuous collaboration. Employees set and pursue goals; employers
provide support and opportunities. For organisations, it boosts organizational success by
cultivating an environment of learning, innovation, satisfaction, engagement, and retention,
reducing turnover costs, improved performance, productivity and competitive advantage. This
aligns individual aspirations with organizational goals (Donohue & Tham, 2019).

Employment Relationship in the Tourism Industry

Employment relationship is a legal connection in which an employee provides labour or services

to an employer in exchange for compensation under specified conditions (ILO, 2003).
Understanding employment relationships aids in comprehending employment management,
encompassing the rights and obligations sought and applied by both management and employees.
The employment relationship is manifested through various mechanisms, such as employment
relations, employee relations, employee engagement, employment law and employee rights.
Employment relations and employee relations are used interchangeably based on context.
Employment relations refers to the employment relationship at the organizational or industry-
wide level while Employee relations is at the individual level (Krume et al., 2014). Employment
relations are often described as the interaction between three major groups: employers,
employees, and the government (Rasmussen et al., 2022). Effective employment relations in the
tourism industry are fundamental for a positive work environment and organizational success. A
harmonious relationship between employers and employees is pivotal, ensuring a seamless guest
experience in hospitality services. Positive employment relations involve open communication,
fair treatment, and issue resolution to maintain a motivated and engaged workforce (Edwards,
2003).

Employee engagement is an HR concept that refers to the favourable cognitive, emotional, and
behavioural state of an employee, directed towards achieving organizational outcomes (Shuck &
Wollard, 2009). Employee engagement, rooted in employee psychology, reflects emotional
investments like passion, involvement and motivation in their work (Lalwani, 2021). Engaged
employees ensure organizational compliance, fostering a positive workplace culture. (Gallup,
2023). Managers play a crucial role in measuring and managing employee engagement through
constant coaching. In tourism, engaged employees boost customer satisfaction and loyalty,
recognizing their critical role in the industry (Nel et al., 2006). HR-led training enhances
engagement, promoting teamwork and overall organizational and individual performance
(Arwab et al., 2023).

Another aspect of the employment relationship is employment law, which forms the cornerstone,
of regulating employer-employee relationships. Employment law is the body of law that governs
the rights and duties between employers and employees (Indeed Editorial Team, 2023).
Employment law encompasses legal aspects of employment rights, contract law, trade unions,
industrial action, collective bargaining, workplace rights, and aspects of equality, diversity, and
inclusion (Collins, 2010). It serves to ensure fairness and compliance with regulations.
Compliance with crucial employment laws in tourism ensures fair treatment in the diverse
workforce and regulates irregular schedules (Muhl, 2001).
Another crucial component of the legal framework of employment relationship is employee
rights. Employee rights are the legal and ethical entitlements and protections granted to
employees ensuring fair treatment at work (Manak Solicitors, n.d.). These rights cover fair
wages, safe working conditions, maternity and paternity rights, protection against discrimination
and dismissal, union participation, statutory sick and redundancy pay, and flexible working
hours. HRM's function to manage employee rights is vital for legal compliance and a positive
work environment. In tourism, with the demanding nature of the industry, respecting employee
rights in tourism and adherence to labour laws, ensuring safe conditions, and respecting working
hours are crucial for its reputation and success.

Learning, E-learning, Knowledge Management, Staff retention and their impact on

organisational performance in the Tourism Industry

Learning, e-learning, knowledge management, and staff retention are interrelated concepts
impacting organisational performance. Learning is the means of acquiring new knowledge,
skills, and habits (Gross, 2020). E-learning, or electronic learning, is a learning method that
employs digital media and technologies (Cook & Sutton, 2013). Knowledge management (KM)
is the process of organizing, creating, utilizing, and exchanging collective knowledge in an
organization (Girard & Girard, 2015). Staff retention is the process of retaining an organization's
employees. Continuous improvement of these concepts is important for sustained organisational
performance.

Firstly, learning in organizations boosts HR development, service quality, customer satisfaction,

loyalty and growth. But it may be costly and time-consuming. Research by Kleefstra et al.,
(2020) indicates a positive correlation between employee learning and organizational
performance. In the tourism sector, continuous learning in customer service, cultural sensitivity,
and destination knowledge is evident (Dwyer et al., 2009). For instance, employees in the
hospitality sector frequently receive ongoing training to stay abreast of service standards and
customer expectations, directly impacting the quality of tourist experiences.

Secondly, e-learning offers a flexible, cost-effective organizational learning method but may
encounter technical issues, lack of personal contact, and low engagement and completion rates.
In tourism, it supports ongoing training for a geographically dispersed workforce. For instance,
travel agencies use e-learning for standardized service protocols and new destination training to
improve employee competence and organizational performance (Giannakos et al., 2022). E-
learning is evolving into e-tourism services, enhancing technical and interpersonal skills and
leading to higher organizational commitment in virtual teams compared to traditional ones.
(Moradi et al., 2018).

Thirdly, efficient knowledge management optimizes information use, enhancing organizational

performance (Gupta & Sharma, 2004). Studies by Delshab et al. (2020), Mehralian et al. (2018),
and Sharma & Sharma (2020) affirm knowledge management's positive impact on organizational
performance, decision-making, innovation, employee retention, and intellectual capital. In the
tourism sector, efficient knowledge management comprises sharing best practices, client
feedback, and destination insights. For instance, a hotel chain might utilize a centralized database
to maintain uniform service strategies across various locations.

Fourthly, staff retention is a critical factor influencing organisational performance (Cain et al.,
2018). It minimizes turnover costs, enhancing commitment, loyalty, and employee satisfaction.
In the tourism industry, Shakeel & Butt (2015) link factors like job satisfaction, involvement,
work-life balance, and career development to staff retention. However, staff retention is affected
by high labour mobility, seasonality, and diversity (Andriotis & Vaughan, 2004). Tourism
companies, for instance, invest in talent management to curb turnover and create stability. The
stability provided by staff retention ensures a skilled workforce, positively impacting customer
experiences and organizational outcomes.

In summary, the importance of learning, e-learning, efficient knowledge management, and staff
retention is crucial for talent management and organizational performance in the tourism sector.
However, these concepts face challenges that need to be addressed and overcome. Therefore, the
tourism industry requires a strategic, integrated approach that will align these concepts for
enhanced organisational performance.

Conclusion

In summary, the exploration into the role of Human Resource Management (HRM) in the
tourism industry underscores its strategic and integrated significance in achieving organizational
success. HRM functions, encompassing recruitment, talent management, and performance
evaluation, align with corporate objectives and contribute to workforce optimization. The
evolution of HRM from an administrative function to a strategic partner in the 21st century
underscores a focus on talent management, technological integration, and adaptability to industry
challenges.

An understanding of HRM models, including the Harvard and Michigan models, and the Soft
and Hard HRM approaches, provides valuable insights into effective employee management
strategies. The link between HRM and organizational performance underscores the influence of
HR practices on employee skills, attitudes, and habits, ultimately shaping organisational
outcomes. Strategic employee recruitment, with a balanced approach to both internal and
external methods, addresses the unique challenges presented by the dynamic nature of the
tourism industry.

Moreover, the selection and induction processes play a crucial role in ensuring the seamless
alignment of new employees with organizational goals, particularly in customer-oriented roles.
The integrated framework of Human Resource Planning, Performance Management, Talent
Management, and Career Management is instrumental in maximizing human capital and
fostering organizational success.

Employment relationships, encompassing employment and employee relations, engagement,

employment law, and employee rights, contribute to a positive work environment in the tourism
sector. Finally, the concepts of learning, e-learning, knowledge management, and staff retention
are essential for sustained organisational performance, requiring a strategic and integrated
approach in the dynamic tourism industry.

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