Tourism

Since the 1980s, global tourism and hospitality has grown at a fairly constant rate. However, this appears to have changed by several events in the early years of the 21st century leading to reconsideration that development of the sector is inevitable. It has become evident that major natural as well as human induced incidents can have a great on the growth and development of this sector.  The recent years have seen globalization achieve a high degree of popularity. This is attributed to the fact that globalization is transforming the world at a pace that is very rapid hence changing the traditional workplace as well as employment practices. It is considered to be part of change which is inevitable. For organizations to survive and prosper, top management and executives require to learn to manage this change and think differently in a strategic manner. Since most firms in the hospitality and tourism sector desire to compete in the global market, most of them are introducing new techniques of management that require workers that are more educated, skilled and trained. These skills and knowledge have to be nurtured, retained and be utilized in a manner that will enable the firm to achieve a competitive edge in the market. This calls for strategic ands effective management of human resource also known as human resource management (Baum1993).

It has been accepted that the world we live in has become borderless because of globalization. Globalization is viewed to be a channel through which foreign investment is attracted a means of increasing exports as well as developing international alliances that are crucial in penetrating new markets has become a global trend. Globalization is inevitable in todays business world and involves combining strengths, integrating differences and joining efforts to for a successful process. Globalization is therefore a global pressure for change. As such, it has changed business dynamics in the hospitality and tourism sector. There has been increase in flow of capital, competition as well as economic independencies across nations (Baum1993).  Evolving dynamics of labor utilization internationally is also as a result of globalization. Knowledge gaps have also been cited in contract catering in the hospitality sector. It is therefore very crucial for hospitality and tourism managers to understand globalization and its implications and plan for the development and implementation of strategic approaches.  Human resource management is therefore a reality in the current hospitality and tourism sector because of the changing dynamics of the industrys market as a result of globalization.

Human Resource Management (HRM)
Human resource management has been described as the strategic approach to the management of manpower, an organizations most valuable asset. This is because employees both individually and collectively contribute to the attainment of the business goals and objectives (Maxwell1994).  The process of human resource management calls for a rational objective by the organization to retain as well as increase talented employees in the firm. Management of people in an organization involves recruiting and employing people, designing and developing employee related resources, training and developing employees and utilizing as well as compensating the employees services to achieve optimal business profitability through employee performance. The relationship between the management and the employees of the firm is very crucial to HRM (Maxwell1994). Several research findings reveal that employee retention, their performance and productivity is directly dependent on the manner in which they are treated in return for the skills and the experiences they impart on organization. Human resource management is mainly interpreted as managing of employee well being to ensure optimal utilization of their skills, talents and experience for achievement of the goals of the business.

Human resource management is most crucial in the service sector including the hospitality and tourism industry because of their labor intensive nature. According to Baxall (2003), strategic human resource management is crucial to achievement of a competitive edge in the service sector. This author has identified high-performance work systems as the link between HR strategy and business performance. Work systems and employment models which involve a mix of practices including rigorous selection, quality training systems to enhance the ability levels of employees, participative structures which include quality circles and self-managing teams that increase opportunity for employees to contribute, and comprehensive incentives such as internal career ladders and employee bonuses to enhance employee motivation are regarded to be supportive of high performance. According to literature, none of these practices is superior to the others and best results are achieved when all the named practices are bundled together. High-performance work systems require firms to invest highly and consistently in human resources for them to reap higher benefits in terms of productivity as well as agility of the organization. According to Boxall (2003), performance is a function of employee ability, motivation as well as the opportunity to contribute and participate. The best way of utilizing employee potential as well as discretionary judgment is therefore by enhancing the practices that foster the named variables. While these practices are good for the employees and consequently customers, they could however have some negative effects on the employer. Human resource practices that seek to enhance employee motivation, their ability and job satisfaction can be very costly (Truss  Gratton 1994).

High-performance work systems can also be interpreted as human resource advantage in services. This occurs when a company develops and maintains substantial competitive advantage using the quality of its employees (human capital) as well as organizational processes. This requires proper management of human resource through HRM. Most literature argues that HRM is very crucial in the service sector particularly as far as building and sustaining competitive advantage is concerned. This paper seeks to discuss the strategic role of human resource management in the hospitality and tourism sector to establish whether HRM is a reality or a myth in this industry particularly in a business environment that is unstable and rapidly changing. To achieve this, the paper will explore human resource practices employed from the service sector including recruitment and selection, training and development, rewards, motivation, performance appraisals and strategic human resource management.

Strategic Human Resource Management Function
Strategic human resource management to be henceforth referred to as SHRM is one of the branches of human resource management. SHRM is the linking of human capital (human resources) with organizational strategic goals and objectives to improve business performance and nurture an organizational culture that promotes innovation, flexibility as well as competitive advantage (Truss  Gratton 1994). In a business organization, SHRM implies regarding, accepting, and involving the human resource function as one of the strategic partners in the formulation as well as implementation of the firms strategies through human resource activities which include selecting,  recruiting, training and rewarding of employees.

SHRM is characterized by some features which make it crucial particularly in labor intensive sectors such as the hospitality and tourism industry. In SHRM, there is a link that is very explicit between human resource policy and practices and overall organizational goals and its environment (internal and external). SHRM is also characterized by a certain amount of organizing schema that links individual human resource interventions so that they mutually support each other (Boxall1992). Responsibility for the management of human resources is also devolved down the organizational levels.

In the globalized hospitality and tourism industry, SHRM has a very great role to play particularly in the rapidly changing and unstable business environment. HRM professionals are often faced with issues of human resource flow, employee participation, high commitment work systems, reward systems and performance management in the globalization context (Truss  Gratton 1994). The following issues are amongst the major issues that human resource professionals as well as top management who are involved in strategic human resource management are struggling with in this first decade of the twenty-first century cross-cultural issues, increased competition that has become international because of the free market ideology, knowledge management, aligning human resource with core business strategy, integration of soft skills in human resource and development and demographic trends in the labor market as well as on employment. SHRM is argued to be effective in addressing these issues. According to (Truss  Gratton (1994), SHRD is effective in managing crucial resources including human capital and financial resources. SHRM is even more relevant in the service industry. According to Storey (2004), HR strategy is determined by the firms strategic business plan, the workforce planning process, human resource information and external environmental factors.

The last two decades have seen a shift in the perception of the role people play in the success of the organization. There has been a growing view that management of human resource is a fundamental organizational capability and one that requires to be integrated with the business objectives. SHRM is therefore a cornerstone of this notion as it seeks create a link or rather to integrate the overall strategic objectives of the business with the HR strategy and implementation ((Truss  Gratton 1994). This integration takes place when the human resource strategy is aligned (matched) with the firms stage of development, management or strategic orientation style.

An intimately strategic approach strategic approach to human resource management encompasses most of the specific objectives of HRM as well as it practices hence drives all aspects of labor is management (Truss  Gratton 1994). Close integration of HRM with corporate strategy could also give extra benefits including cost reduction when strategies such as outsourcing are used. This strategy saves an organization on cost that would have been spent on coaching, training and communicating to employees. , .

SHRM is argued to be the solution to HR administration and policy issues hence enhances the effectiveness of an agency. SHRM involves inferring how personnel functions interrelate, recognition of the importance of these functions and commitment by employees, personnel managers and supervisors to work towards attaining the set goals. SHRM enhances productivity as well as the effectiveness of organizations. Research reveals that employment of practices such as formal training systems, internal career ladders, employment security, performance appraisal system that is result oriented, employee participation, performance-based compensation and broadly defined jobs by organizations increases their capability of achieving their organizational goals. Merging strategic and HR planning through SHRM and focusing on customeremployee linkages provides business organizations with the only strategic ability that can not be duplicated by competitors enhancing its competitive advantage (Truss  Gratton 1994). SHRM connects customer with employers such employees are able to identify and meet customer needs ensuring customer satisfaction. SHRM enables organizations to identify and assess business needs that are labor-related enhancing proper deployment of resources to meet these needs. It provides an alliance between HR and strategic planners that builds synergy and complements each partys unique expertise to the planning process. SHRM also enhances competitiveness through collaboration. SHRM is key in advancing ensuring that proper processes are in place to ensure that the right person has been selected for the right job, is performing well and their efforts adequately compensated. Service firms are increasingly pursuing strategies that are customer oriented. Service firms recognize that it is critical for their employees to display customer oriented behaviors. SHRD is the only way to achieve this as it is a managerial process that links human resource policies and practices with the strategic goals of the firm. To survive in this error of globalization, strategy is inherent and employees are the instruments of implementing strategies hence the need for SHRD.

Recruitment and Selection Function
Recruitment and selection is one of the main functions of HRM. Recruitment is the process of identifying the sources of manpower and motivating them to apply for vacant jobs within the firm (Decenzo 2009). Recruitment seeks to increase the number of applications so as to allow wider choices for the selection process. Recruitment and selection involves choosing the right candidate for the job or rejecting those who do not fit the job description. In todays globalized world, for a firm to remain competitive, it must have a well talented workforce. According to literature, skilled and talented employees are the only competitive advantage that cannot b duplicated by rivals. This is because technology and procedures can bee copied but talent and skill can not be duplicated. Any firm requires a workforce that understands the needs of the client and is able to come up with innovative cost effective ways of dealing with them. It is the role of the HRM to identify these people and recruit them to be part of the organization. Selection involves choosing candidates a pool that ha been made available through recruitment. Grupta (2006) explains that selection is the process of choosing the most suitable individuals out of all the recruited participants. Relevant information about the candidates is collected through a series of steps so as to assess their suitability for the vacant position. Selection also refers to the process of evaluating the candidates using various means and making a decision or choice which is then followed by an employment offer. Selection is therefore one of thee processes in employment function which starts upon the receipt of application letters and resumes with the major concern being reviewing of these resumes for basic qualifications (Grupta 2006). It is based on the job related qualifications such as required education, knowledge, experience, skills as well as abilities as required by the job description. The qualifications also have to be bona fide occupational qualifications. The hired applicant must meet most if not all the listed requirements in the job description. Selection is therefore a process that matches the applicants qualifications with the job requirementsdescription. It weeds out unsuitable candidates identifying the most suitable candidate for the job (Grupta 2006).

Recruitment and selection process is a very crucial function of an organizations HRM particularly those in the service sector which is labor intensive. This is because no organization can achieve its business goals without selecting the right people. Any fault in selection results to wastage of time as well as money which are very crucial resources for a business. It could also spoil the environment for an organization (Decenzo 2009). Proper selection and placement of employees can go a long way in building a workforce that is stable. Depending on the procedure used, it could also reduce turnover and absenteeism increasing the efficiency as well as productivity of the business. This is very essential in a labor intensive industry such as hospitality and tourism, where employees behavior is very crucial for the success of the business. The basic objective of recruitment and selection is to hire candidates who bring in higher profitability for success of the firm. This process is a challenge hence and every situation I unique. For firms to attract high quality employees who want to build their careers with thee organization in context, the HRM should be innovative, realistic, and persistent and be able to clearly communicate the strengths of the business as well as the benefits of the offered positions.

Training and Developing Function
Training and development refers to those activities in human resource management that are concerned with enabling workers to develop skills, knowledge as well as abilities that are up-to date (Singh 2002).  It involves orientation and socialization which help employees to adapt to the organizational culture. Training and development comprises of phases which include employee training, employee development, organizational development and career development. It involves building new skills and sharpening the old ones among employee with thee sole purpose of increasing the efficiency with which they perform their tasks. It seeks to improve individual performance (Trevor, Ristow,  Ristow 2004).

Initially, training and development of employees was perceived to futile and a waste of money, time as well as resources. Nowadays, which the rapid changes in the global market, training is considered an investment. This is because all departments of an organization including the sales, marketing, finance service and production rely on training for survival. For an organization to be considered to have an effective HRM, then training must be a regarded as a priority and a vital part of the organization (Singh 2002). Training provides the opportunity for the organization to raise the profile of its development activities.

Training and development is critical in raising the level of employee commitment as well as quality of their output. Training and development is beneficial to both the firm and the employees. The organization is able to increase productivity and its quality as employees are equipped with n or improved skills. It also promotes employee motivation as employees are able build their careers achieve their professional as well as personal goals which increase job satisfaction. Training and development can also not be overlooked in terms in terms of employee retention, development of team leaders and managers, and in development of organizational culture (Trevor, Ristow,  Ristow 2004).

Many firms in the service sector have recognized that the service transaction is most crucial as far as opportunities for selling products are concerned. Customers will buy more products or use the same service again depending on how they are served. It is therefore essential for the staff to have the skills that are necessary for to meet customer needs. This is because the manner in which the staff interacts with the customers is dependent on their skill and knowledge. The only disadvantage with training and development on the employers side is that employees could leave after serving only a short tenure following training which is a waste for the organization as it has to more resources to recruit, select and train other employees to replace the ones who leave (Trevor, Ristow,  Ristow 2004). Organizations can however not afford to have a staff that has no competent skills particularly in the globalized world. Training and development as HRM function is therefore very crucial in the hospitality and tourism industry.

The Motivation Function
The motivation function of HRM involves the HRM activities that are concerned with retaining employees and encouraging them to exert high energy levels in their work (Trevor, Ristow,  Ristow 2004). It requires a great deal of attention to the psychological, financial and physiological rewards offered by the firm on regular basis (should be a continuous process). Though an important function of HRM, it is quite challenging as human behavior is generally complex (Mullins 2002.). It is not easy to determine the factors that motivate various employees as people are different. Motivation is a process that is multifaceted as it has individual, managerial and organizational implications. Motivation is more than just what the individual exhibits as it is a compilation of environmental issues related to the job. According to research, the performance of an individual in an organization is a function of their ability as well as their willingness to perform the job. When the performance approach is taken, employees require to have the appropriate abilities and skills for them to adequately do the job (Bratton,  Gold 1999). Jobs also need to be well designed as employees tend to perform poorly below their capability when jobs that are improperly described or poorly laid out.

Managing motivation involves properly designing the job and setting performance standards. It also includes establishing effective compensation as well as benefits programs and understanding the motivational theories which include hierarchy of needs by Maslow, , theory X-theory Y by McGregor, Equity theory by Adams, Expectancy theory by Vroom and Motivation-Hygiene theory by Herzberg (Beer   Spector1985).

Most researchers in human resource management argue that money is not the only thing that can satisfy and motivate employees. They explain that employee retention depends on several other things other than money. If money was the only motivator, employees would leave the moment they are offered a better deal by another employee. Studies have however shown than some employees remained committed to some organizations even though they were not being paid as much as other employees ion other organizations with the same qualification. The implication of these findings was that employees value other things other than money and that it was up to the human resource management to identify the non-monetary needs and avail them if the organization wants to enhance employee satisfaction hence retention. These needs might include the need to develop their career, need for good working conditions, need for enough time for themselves, job satisfaction, participation, involvement and recognition of work well done (Choi, Woods,  Murmann 2000). It is up to HRM to provide these needs. HRM must also act as a source of information as well as inspiration for them to be motivated. Companies in the service industry can not afford high turnover rates or absenteeism because of lack of motivation. The hospitality and tourism industry is labor intensive and requires firm to retain as much of the talented and skilled workforce they have as experience is crucial for them to sustain a competitive advantage in the dynamic market. Based on this role, it is clear that HRM is crucial in the hospitality and tourism sector particularly in the market that has become dynamic as a result of globalization.

Performance Appraisal Function
Managing employee performance should an integral part of the work of any manager within an organization. This is a function of HRM and is as important as financial resources and program outcomes management because employee performance or its absence has a great effect on financial as well as program components of any firm (Choi, Woods,  Murmann 2000).

Performance management through appraisals involves documentation of individual expectations and organizational performance, providing a meaningful process that will be used to reward employees for any contribution that is noteworthy to the organization and providing a mechanism to enhance individual and organizational performance (Falcone,  Sachs 2007).

This is achieved by the HRM identifying organizational goals that need to be accomplished, communicating both individual and organizational goals that support the overall business strategic mission to employees and using performance as a basis for taking appropriate personnel actions such as rewarding noteworthy performance and taking action to improve the unsuccessful and less successful performance (Falcone,  Sachs 2007).

Performance management therefore involves planning work as well as setting expectations, monitoring performance continually, building the capacity to perform, rating performance periodically and rewarding good performance. Performance appraisal is done for the following reasons to identify and recognize potential in employees and utilizing it to the optimal by transferring the employees to stations where their talent can best be used to achieve organizational goals (Falcone,  Sachs 2007).  It is also done to improve organizational performance by improving the performance of individual employees who are contributors. It also allows the organization to identify employee training needs and make plans of training them to enhance their performance. Performance appraisal also gives an equitable procedure of linking payment to performance where numerical criteria are not used.

This role of HRM however has some disadvantages. They provide opportunities biases as they rely on employees appraising their colleagues (Fisher 1997). They can be despised by employees when a proper assessment program and knowledge of the standards lacks. This is because employees could perceive them to be unfair, biased and favoritism on the part of supervisors and managers (Fisher 1997). They can also give wrong results because of their subjectivity to biases lowering overall performance of the organization as the wrong people without the required skills might be promoted while the rightful individuals are sidelined because of biases.

When well administered, performance appraisals enhance employee motivation, job satisfaction, increase performance, participation and involvement. It also enhances creativity and innovation which is very essential in the service industry where firms seek effective products and ways of doing things are cost effective (Falcone,  Sachs 2007).  Globalization of the hospitality and tourism industry has forced firms to employ the standards and quality measures that are internationally recognized and competitive. Performance appraisal is one way of ensuring that procedures and standards are maintained by employees. Quality is crucial in the hospitality and tourism industry. This role of HRM increases the competitive advantage of a firm. From this discussion, it is clear that through this function, HRM has a very strategic role to play in the hospitality and tourism sector in todays globalized economy.

Rewards
Rewards have been identified as a way of motivating employees and increasing retention. Research findings indicate that employees need to feel that they are valued by the organization for them to be motivated. Rewards could be monetary or non-monetary. It has been mentioned before that money is not the only motivator. Employee empowerment, employee involvement, training and development and promotions are all non-monetary ways of recognizing employee efforts. It is however important to understand that the first reason as to why people look for jobs is so that they can earn money to support them. Monetary rewards are therefore also equally important. After all, Maslow explains in the theory of hierarchy of needs that the psychological and safety needs have to be satisfied before an individual can get motivated by other needs. Rewarding for employees is essentially a HRM function.

Rewards, particularly monetary is an essential feature of HRM as it is the main reason as to why people work. It is an arena that is both sensitive and controversial as it has sparked debates both practically and theoretically and has sparked both practical and theoretical. Employees consider rewards as a return in exchange between themselves and the employer for work well done. In addition to compensation employees for their efforts, rewards also have an impact on the attraction, recruitment and retention of talented people.

Reward management is the role of HRM and involves the practice and strategy used in pay systems. It also encourages creativity and innovation as employees seek to benefit from the rewards offered by the firm. It also promotes responsibility as recognition of job done well makes employees feel that they should continue doing so.

Rewards have also been classified as extrinsic or intrinsic. Extrinsic rewards are those material needs of employees that that must be met by the management (Sujan 1986). They include salary, promotions and fringe benefits amongst several others (Rudolph  Kleimer 1989). These are often perceived by employees as a given or a must. Money is believed to be a motivator that influences employees behavior. It can therefore be used to make employee behave in a customer-oriented manner in the hospitality and tourism industry. Management should make efforts to tie performance to bonuses as it challenges and motivates employees to increase their performance.

Intrinsic rewards are psychological incentives such as job rotation, word of thank you, job enlargement, input and several others. These rewards build an environment of trust as well as cooperation among employees. Employees who are intrinsically motivated enjoy performing tasks that are job-related such as influencing customers, being creative and innovative or learning more about the company

According to Nelson (2003), though money is a strong motivator, it is not as powerful as having the management applauding employee for work well done, feeling the contribution to the job, earning respect from peers, being involved and informed  of organizational developments and being allowed to participate. Recognition is the ultimate motivator and communicates to the individual employee as well as the other to follow suite hence eventually increases overall performance as standards of the firm are communicated.

Conclusion
From the above discussion, it can be argued that human resource management is indeed a distinct and integrated management function and has a great impact on the future in the globalized hospitality and tourism industry. By discussing its various roles ,  it can be concluded that HRM positive as well as negative  implications to the management, staff and even customers. The HR practices employed from the service industry players require to be properly managed through HRM for firms in the hospitality and tourism industry to succeed and survive in the dynamic globalized market.