What effect do formalised human resource procedures such as contracts and appraisals have on employee motivation in the hospitality industry

Abstract

This paper examines the effects of formalised HR procedures on employee motivation in the hospitality sector. It has long been accepted that staff turnover, the ultimate sign of poor employee motivation, is very high within the hospitality industry (Thomas, 2006), This research attempts to establish whether this is affected by the presence or absence of formalised HR procedures. Rowley and Purcell (2001) and many others have discussed the possibility of 'turnover culture' within the industry and indeed whether it has been both borne from and reinforced by the industry itself, even to the point of it being accepted as 'tradition' for hospitality workers to develop their skills by moving between establishments. Unfortunately there is still an overall perception that there is ignorance towards the importance of human resource development as a contributing factor to service provision within the industry (Baum et al 1997). Coupled with this, leadership within the hospitality industry has historically been based on the principles of bureaucratic management, considering employees as a resource like any other; cost driven to achieve the goals of the organization (Lucas & Deery, 2004). This does not fall in line with current thinking on "best practice HRM". An investigation was undertaken into the level of presence of formalised HR procedures such as appraisals, interviews, personal development plans and contracts and compared with levels of employee turnover within the industry to detect any positive or negative correlation between the two. The report concludes and provides evidence that organisations within the industry would all benefit from implementing or improving HR procedures. The report also shows evidence that employee turnover positively correlates with increasing HR procedures cementing the recommendation that the hospitality industry should look to improve practices as a whole.

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