Institute for International Management & Technology
Module Number- U51029
Module Leader- Dr. Rumki Bandyopadhyay
Student Name- Archit Aneja
Roll No- 010111009
Human Resource issues in hospitality industry in New Delhi/ NCR Contents
The purpose of the research being conducted and the proposal being drafted is to identify the current HR issues faced by the hospitality sector in Delhi/NCR and to investigate the organizational employee retention initiative and practices which work in the hospitality sector in Delhi-NCR. XYZ is a hospitality organization which has commissioned our consultancy to enquire about the currents trends and problems of the high staff turnovers, job dissatisfactions, and staff loyalty and suggest appropriate recommendations respectively. Talking in regard with the growth of the industry, the stagnant nature of limited investments in the hospitality industry over the past few years has changed significantly. Investors globally have amassed an appetite for new deals, leading to an increase in capital markets activity. Asian investors dominated global hotel transactions in 2013 and are expected to repeat their high level of activity in 2014 (hospitalitynet.org). The sector’s total contribution in the GDP rose from US$ 88.1 billion in 2007 to US$ 115.5 billion in 2012, and was projected at US$ 136.3 billion in 2013. (Refer Appendix 1). This is evidence that the hospitality industry is fast growing industry with huge investments pouring in Asia, thus leading to higher demand of human resource personnel. If necessary measures to recruit appropriate skilled staff are not taken, and faltering in the retention of the same, the hospitality industry at large will start to collapse due to labor shortages and high turnovers. According to an article issued on the Association of Human Resources Managers’ website, one of the most notable challenges faced by hoteliers in every geographical location is labor shortages and high staff turnovers. With the high level of competition and new chains entering the market, staff retention has become a sensitive issue in the hospitality industry (ahrmhospitality.com) LITERATURE REVIEW
The travel and tourism industry, i.e. the hospitality industry has emerged as one of the fastest growing industries which contributes significantly to the growth and development of the global market (ibef.org). In the United Nations world tourism organization in 2009, it was discussed that hospitality industry is the largest employer and it was the only industry which sustained the global recession in 2008-09. Though it is one of the largest employers across the world, there are major problems faced by the industry, most of them related to human resource personnel. In a survey done in 2009, 243 managers identified HRM as the most troubling factor for the properties at large. The current human resource related issues faced by the hotels were identified as attracting and retaining talented people, training, employee morale, skill levels, and labor shortages (hotelnewsnow.com). To counter these problems hotels are taking initiatives to increase staff retention and satisfaction, reduce turnover and ensure growth of staff with equal opportunities. Hilton hotels have designed a strategy called creating opportunities for youth. In this the company designs a companywide strategy for youth development, build knowledge for the company, the industry and other stakeholders in youth well-being, and develop measures of accountability and progress (news.hiltonworldwide.com). This not only empowers the youth but also creates means of measuring the growth of the employees and keep a check on providing equal opportunities for growth making them feel valued leading to higher staff satisfaction. Staff satisfaction is an evident and necessary factor, the presence of which benefits the company at large by creating a sense of loyalty and the absence of which results in high staff turnover (Kelliher and Perret, 2001). According to an article by Tommy Beyer issued on hospitalitynet.org, there were at majorly 3 reasons why staff turnover was high. Some of the staff left the organizations or the industry because they didn’t feel valued, some left because of poor pay scales, and others left because they did not see growth (hospitalitynet.org). The most important out of these was found to be that the staff didn’t feel valued, i.e. empowered. The staff wanted to be heard and have a say in decision making. This was not only found to be an effective means of retaining staff, but also gave the staff extreme morale boost and a sense of ownership (xnet.kp.org). RESEARCH DESIGN
A research is something that people undertake to study, collaborate and deliver the findings in a systematic way to increase their own knowledge or for other people’s reference (Saunders et al., 2005). ‘Systematic’ suggests that the research is based on logical reasoning and facts, and not on beliefs (Ghauri and Gronhaug, 2002; cited by Saunders 2005). The research process onion is one of the most famous, useful and profound techniques of developing a research proposal. Before one gets to the central point of deciding whether to prepare a questionnaire or conduct an interview, there are various important layers of this onion which need to be peeled away (Saunders et al., 2005) so as to cover all the necessary aspects of preparing a research. Before the research is conducted, one needs to know what their research approach is. A research approach depends on how people initiate towards building of knowledge as per their preferences to derive theory which may or may not be explicit in nature of the research. A research approach can be deductive in which we develop a theory or thesis and design a strategy to test the same, or it can be inductive in which we collect data and develop a theory based on our findings and analysis of the data (Saunders et al., 2005).
Induction is usually described as moving from the specific to the general, while deduction begins with the general and ends with the specific (drburney.net). Our report is an inductive report as we are trying to gather as much information possible, from various different sources and eventually compile it to pilot strategies to reduce the staff turnover. The strength of the inductive approach is that one develops a deep understanding of the topic during the course of the research (Saunders et al., 2005). Once the research approach is decided, it is important that the research strategy is chosen correctly. A research strategy is a general plan which helps answering all the necessary questions that have been set for the research. It will specify objective which has been derived from the research questions (Saunders et al., 2005). The strategies that can be considered while preparing a research are experiments, survey, case study, grounded theory, ethnography, and action research. Experiment is a form of research that features strongly in many social science researches, such as psychology. It requires a defined hypothesis, a selection of sample from the population, exposing the sample to various experimental conditions, observing the reactions, and deriving the conclusion whether or not the purpose of the research was fulfilled (Saunders et al., 2005). Survey is a research strategy usually associated with a deductive approach. These are extremely helpful when we need to gather a large amount of information from a population in an economical way (Saunders et al., 2005). Case study is ‘a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon with its real life context using multiple sources of evidence’ (Robson 2002:178; cited by Saunders, 2005). This strategy is of good help to those who want to gain a deep understanding of the context of research and the process taking place (Morris and Wood, 1991; cited by Saunders, 2005). Grounded theory is considered to be one of the best means to an inductive approach, although its result is too simplistic (Saunders et al., 2005). Glaser and Strauss invented Grounded Theory in the 1960s to analyze data on caring for dying patients. Grounded theory uses a systematic hierarchical set of procedures to develop inductively derived theory grounded in data (painconsortium.nih.gov). In this approach, the data collection starts prior to the formation of the theoretical framework. The theory is developed gradually from the data collected by making a series of observations (Saunders et al., 2005).
Ethnography involves observing the sample size in the natural real world setting rather than experimental conditions and eventually gaining insight and building a thesis describing the observations and conclusions (gov.uk). it is extremely time consuming and happens over an extended period of time. The research needs to be flexible and subject to change because the researcher will constantly develop new ideas, opinions and observations in regard with the behavioral changes of the sample (Saunders et al., 2005). Action research is ‘a disciplined process of inquiry conducted by and for those taking the action. The primary reason for engaging in action research is to assist the “actor” in improving and/or refining his or her actions’ (ascd.org). There are three common themes for an action research, the first emphasizes the aim of the research, the second suggests that the researcher is the part of the organization within which the research and process are taking place and the final theme says that the implications of the research should be valid and applicable beyond the immediate project (Cunningham, 1995; Zuber-Skerritt, 1996; cited by Saunders, 2005). The purpose of action research is not only to describe, understand and explain the theory, but also create implications that can change the world (Coghlan and Brannick, 2001; cited by Saunders, 2005). Our report is a grounded theory, because as suggested earlier it is one the best ways to an inductive approach. More so as grounded theory suggests, we collected all data before actually disseminating it, and gradually derive our theory based on our observations.
Time horizons are another important factor which influences the research process. It is important that before conducting the research, the person decides whether he wants his research to be like a ‘snapshot’, i.e. taken at a particular time- cross sectional, or like a ‘diary’, i.e. taken over a longer period of time- longitudinal (Saunders et al., 2005). Our study is a cross-sectional study, as it is the study of a particular phenomenon: HR issues, at a particular time. ‘Enquiries or researches can be classified in terms of their purpose as well as by the research strategy used’ (Robson, 2002; cited by Saunders 2005). The classification most often used is a three-fold based, namely- exploratory, explanatory, and descriptive (Saunders et al., 2005). Exploratory studies help in finding out what is happening and gaining new insights based on asking questions to assess new phenomenon; Descriptive studies portray an accurate profile of events, persons, or situations; (Robson, 2002:59; cited by Saunders, 2005); and explanatory studies develop a casual relationship between different variables (Saunders et al., 2005).
Sampling is another important factor in a research which enables the person conducting a cross-sectional research to reduce the amount of data being collected and analyzed from only a sub-group from the total population. It is often questioned that why is there a need for sampling. Sampling is required because it is impractical to survey the entire population, keeping in mind the budget and time constraints (Saunders et al., 2005). Probability sampling is the most common form of sampling used in survey where we need to make inferences from the population to meet our objectives. there are 5 major techniques in probability sampling, namely- simple random, systematic, stratified, cluster, and multi stage. (Saunders et al., 2005)
The second form of sampling is non- probability sampling which does not have rules like probability sampling. It is rather subjective to one’s own research questions and objectives (Patton, 2002; cited by Saunders, 2005). There are 5 techniques in non-probability sampling- quota, purposive, snowball, self-selection and convenience. Quota sampling is completely non-random and is used for interview surveys. It is a type of stratified sample in which selection of samples is non-random (Barnett, 1991; cited by Saunders et al., 2005); Purposive sampling enables us to judge and select cases which answer our questions to meet objectives; Snowballing is used when it is difficult to identify a specific sample out of the population; Self-selection happens when we empower an individual to identify their desire to take part in the research; Lastly convenience sampling refers to random selection of samples which are easiest to obtain (Saunders et al., 2005). We will be using the self-selection method of sampling as it enables the sample to determine his desire to take part in the research hence increasing the response rate. This would be done by the help of Mr S.C. Dhingra who is the former labor commissioner and currently the law consultant at The ITC ltd., which owns the finest 5 star hotels across the country. The means of collecting primary data will be questionnaires. Questionnaire is a data collection method in which each person from the sample population is asked to answer a set of questions in a predetermined order (deVaus, 2002; cited by Saunders, 2005). A questionnaire can be self-administered and interview administered. A self-administered questionnaire can be open ended or close ended and can be done online, through post or by delivery and collection method whereas an interview can be structured, unstructured or semi-structured and can be administered via telephone or a structured interview (Saunders et al., 2005). We will be doing a self-administered close-ended questionnaire by the delivery and collection method as during the time of filling up the questionnaires Mr. S.C. Dhingra will be present. As we plan and progress in our research ethical issues will arise. Ethics is a term which refers to the code of behavioral activities and their appropriateness to the conduct of academics and research (Wells, 1994; cited by Saunders, 2005). Ethics code is designed to give guidance and set standards of professional conduct (apa.org). The ethical issues relating to a research involving primary data include – privacy of participants, voluntary nature of participants and the right to withdraw at any point of time, consent of participants to use their opinions in the best practices for benefaction of the industry, and lastly the effect of the data collected on the participants (Saunders et al., 2005).
The last yet most important factor in the report is analysis of data. The data used for the research was purely qualitative in nature. During the collection of primary data, we need to keep in mind that there could be discrepancies in the credibility of the data. To undermine these discrepancies we must keep in mind 3 important factors which is called Triangulation- reliability, validity and generalisability. There could be 4 threats to reliability- participant error, participant bias, observer error, and observer bias (Robson, 2002; cited by Saunders, 2005). Since the sample of the research is all the staff working in different hotels and they have been given a choice to participate or not, the participant error gets reduced to minimal. Participant bias cannot be mitigated in any circumstances. Since the data will be analyzed under the guidance of Mr. S.C. Dhingra, former labor commissioner, with his experience, the observer’s error and bias are nullified to the utmost. Validity of the data refers to whether the findings are actually about what they appear to be (Saunders et al., 2005). The primary data collected is of superior validity as it is answers of the staff that have first-hand experience of working in hotels, hence giving the exact reasoning for staff dissatisfaction and high turnover. Generalisability refers to the ability of applicability of the results of the research to other settings (Saunders et al., 2005). The generalisability of this research cannot be determined or justified as the reasons of staff turnovers may change from time to time, and organization to organization.
A research was formulated based on studies, findings, and articles issued by authors which had done their own researches (secondary data) to create a hypothetical basis, and then questionnaires where used as a tool to find out the actual reasons and build the theory using the findings of the research. The research design was not done by hit and trial method but created by referring ‘the research process onion’. All ethical issues were given attention,and credibility and reliability of data was kept up to the mark.
http://www.hospitalitynet.org/news/4063602.html (cited on 03.03.2014) http://ahrmhospitality.com/articles/industry-articles/32-issues-challenges-and-trends-that-the-hospitality-industry-is-facing (cited on 03.03.2013) http://onlinelibrary.wiley.com/doi/10.1111/1467-8543.00135/abstract (cited on 09.03.2014) http://www.hotelnewsnow.com/Article/972/HR-management-troubles-the-global-hotel-industry (cited on 10.03.2014) http://www.peopleinaid.org/pool/files/pubs/turnover-and-retention-lit-review-summary-jan-2006.pdf (cited on 29.03.2014) http://www.hospitalitynet.org/news/4063689.html (cited on 29.03.2014) http://www.workforceinstitute.org/wp-content/uploads/2008/02/Intro-to-book07.pdf (cited on 22.03.2014) http://xnet.kp.org/permanentejournal/fall03/staff.html (cited on 22.03.2014) http://www.ibef.org/industry/tourism-hospitality-india.aspx (cited on 29.03.2014) http://www.cipd.co.uk/NR/rdonlyres/746F1183-3941-4E6A-9EF6-135C29AE22C9/0/recruitretntsurv07.pdf (cited on 29.03.2013) Kelliher, C. and Perrett, G. (2001), “Business strategy and approaches to HRM: A case study of new developments in the United Kingdom restaurant industry”, Personnel Review, vol. 30 no. 4, pp. 421-437.
http://www.drburney.net/INDUCTIVE%20&%20DEDUCTIVE%20RESEARCH%20APPROACH%2006032008.pdf (cited on 29.03.2014)
http://painconsortium.nih.gov/symptomresearch/chapter_7/sec4_5/cmss45pg1.htm (cited on 29.03.2014)
https://www.gov.uk/service-manual/user-centered-design/user-research/ethnographic-research.html (cited on 29.03.2014)
http://www.ascd.org/publications/books/100047/chapters/What-Is-Action-Research%C2%A2.aspx (cited on 29.03.2014)
http://www.apa.org/ethics/code/index.aspx (cited on 29.03.2014)
http://studentaffairs.uga.edu/assess/ateam/sessions/200708/Session_4/Quantitative%20&%20Qualitative%20Analysis.pdf (cited on 29.03.2014)
1 –how satisfied are you working with the company.
2 – To what extent do you agree with the following statement: I would recommend this company as a good place to work? Extremely dissatisfied.
3 – What you like best about working for the company is.
4 – Things that the company should do to make it a better place work are. 5 – Please indicate the extent to which you agree with the following statement. A – The company clearly convey its mission to its employee. Disagree –
Somewhat disagree -
Comment if any.
B – I agree with the company’s overall mission.
C – I feel like I am the part of the company.
D – there is good communication from employees to manager in the company.
6 – Overall how satisfied are you working with department. Extremely dissatisfied.
7 - What I Like about my job…………………………………… 8. Things that my department should do to make it a better place to work are. 9 - Please indicate whether you agree with the following statements: (a) Overall, my supervisor does a good job.YesNo
(b) My supervisor actively listens to my suggestions.
(c) My supervisor enables me to perform at my best.