1 / 52

Chapter 7

Chapter 7. Human Resource Management in Tourism. Human Resource Management in Tourism. by Pro. Jin Ciping Bachelor of Science in Tourism Management (H54050020)

phil
Download Presentation

Chapter 7

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 7 Human Resource Management in Tourism

  2. Human Resource Management in Tourism by Pro. Jin Ciping Bachelor of Science in Tourism Management (H54050020) Nanchang University School of Economy and Management Department of Tourism Management

  3. Learning outcomes • Gain an understanding of the people dimension in tourism as a fundamental element in the success of tourism enterprise • Assess the scope of the HR manager’s job in tourism • Consider how agencies are involved in HRM issues in tourism

  4. Contents 1. INTRODUCTION 2. MEANING OF ‘HUMAN RESOURCE MANAGEMENT’ 3. AGENCIES AND HRM ISSUES IN TOURISM 4. TOURISM AND HRM ISSUES 5. MANAGING HRM ISSUES IN THE TOURISM SECTOR IN THIS CENTURY

  5. 1. INTRODUCTION ＊Tourism is a people industry ＊Tourism is a global industry

  6. Introduction • Jiang Zhemin in his report said,” New century competition is the competition on able persons.” • Deng xiaoping said, ”Workforce (person) is the first force of production.” • HRM doesn’t mean more force, but means how to set the people with the right skills in the right places (jobs)

  7. Tourism is a people industry (1) Baum 1993: • Tourism is a people industry, because tourists are people • Customers and clients and their activities are subject to the normal vagaries of human behavior which is both predictable and unpredictable depending on the situation tourist exist in. The tourism experience or the delivery of products is entirely dependent on people or the human factor.

  8. Understanding this Their behavior to decide what to buy is influence by many factors: • Holiday • Income • Needs or interests in the types of tourism • “Behaviorist” tradition of “cognitive approach”

  9. Tourism is a people industry (2) Baum 1993: The tourism experience frequently involves contact with people from different backgrounds, locations and cultures. So, tourism can be conceptualized as a client purchasing ‘the skills, service and commitment of a range of human contributors to the experience that they are about to embark on’.

  10. Understanding this • The tourism experience is done by both the tourism personnel and the tourists • To make the tourists have successful experience, the tourism personnel must offer high-quality products and services • This need high-quality personnel

  11. The scope of human resource management issues for a tourism industry manager Baum: • A critical awareness of the scope and nature of the labor market. • The design of jobs. • Recruitment, selection, appointment and retention of staff. • Induction, equal opportunities, training and development. • Evaluation of staff performance. • Salaries and incentives. • Employment termination, grievance and dispute procedures. • Industrial relations and employment law. • Motivation of staff.

  12. Tourism is a global industry • Many transnational enterprises operate the business or multinational enterprises operate the business across several countries. • ·Some certain sectors of the industry ( i.e. the hotel sector ) also have to adopt an international or global approach to human resource management.

  13. Elements helping to define the nature and scope of HRM in tourism • Demographic issues about the reduction ( shrinking pool ) of potential employees, and labor shortage. • The tourism industry’s image as an employer. • Cultural and traditional perceptions ( idea ) of the tourism industry. • Rewards and compensation for working in the sector. • Education and training. • Skill shortages at the senior and technical levels. • Linking human resource concerns with service and product quality. • Poor manpower planning. • A remedial rather than proactive approach to human resource issues.

  14. 2. MEANINFG OF HUMAN RESOURCE MANAGEMENT ＊Definition of Human Resource Management ＊Understanding this term

  15. Definition Human Resource Management refers to the policies and practices one needs to carry out the people or human resource aspects of a management job, including recuiting, screening, training, rewarding and appraising.

  16. Understanding this term 1Employment management 1.Human resource management is defined as a form of employment management • HRM has functions of management----- planning, monitoring and controlling. • It focuses on human resources to be provided and deployed (Torrington and Hall 1987) • The management approaches are two: hard and soft

  17. Understanding this term 2Practical method 2. Practically, most organizations adopt a pragmatic approach to HRM, depending on a wide range of factors: • the economic and operating environment • the size of the organizations • the extent to which the labor market is supplied with adequate staff • the corporate culture

  18. Understanding this term 3Conclusion • HRM is not simply personnel management, but the most highly effective is that it should adopt a holistic ( comprehensive ) approach to employment management. ﹡In this ‘people’ business, HRM occupy a significant role, because the enterprises ask for high quality from employees, but also ask for their interactions and exchange with customers ﹡It is critical for HRM to set the people with the right skills in the right jobs.

  19. Two HRM approaches

  20. 3. AGENCIES AND HRM ISSUES IN TOURISM ＊International perspectives ＊Agencies on HRM ＊HRM problems cases

  21. International perspectives • Tourism Master Plans in many countries take human resource issues a magnificent position • Tourist industry consider these issues at international scale • Many bodies (public and private) have an active involvement in HRM issues --- WTTC, NTO, associations

  22. Agencies on HRM (1)Coordinating and liaising with bodies • The public sector actively support and assist the tourism sector in the development of human resource through polices, planning, and the implementation of initiatives ( active measures ) • Their typical involvement in : - state education providers -private training and educational providers -national employment or manpower agencies -associated bodies such as trade unions and the national, regional and local level tourism agencies

  23. Agencies on HRM (2)Governments’ change in policies impacting on tourism industry

  24. World Travel & Tourism Council( WTTC ) • WTTC publishes ‘Global Good Practice in Travel and Tourism Human Resource Development’ , introducing case studies of good education and training across the tourism sector in order to provide the real world experience to readers of human resource professionals. • WTTC publishes Steps to Success, introducing good practice of HRM in other countries. • WTTC sets up representatives and offices in the world, guiding and training the international approaches of HRM.

  25. China’s National Tourism Organization (NTO)

  26. HRM problems casesHRM problems in the Thai tourism industry 1. A shortage of trained personnel, especially at managerial level. 2. A lack of tourism instructors 3. Poor foreign language skills of tourism staff 4. No single agency responsible for human resource development in the tourist industry 5. Lack of co-operation between the public and private sector ( Source: Modified from ESichaikul and Baum 1998 )

  27. HRM problems in the Latin American tourism industry 1 1. A lack of effective managerial training 2. Educational institutions have inappropriate provision for the needs of the tourism industry 3. Lack of co-ordination between the educational sector and the tourism industry 4. Limited number of tourism instructors 5. Inadequate investment in training by the private sector 6. Insufficient and inadequate designed in-house training programmes 7. Limited exposure to foreign language training 8. A lack of travel agency training programmes

  28. HRM problems in the Latin American tourism industry 2 9. Service delivery and customer relations given inadequate attention together with inadequate levels of education among employees 10. Too few internship opportunities for tourism students 11. Poor regulation of training institutions 12. Inadequate government fiscal incentives to facilitate industry training 13. Limited public sector support for tourism 14. Low wages and salary levels for employees in the tourism industry 15. Negative attitude towards service occupations ( Source: Modified from Pizam 1999 )

  29. HRM problems in the China tourism industry 1 1. A shortage of trained personnel, especially at managerial level. 2.Poor foreign language skills of tourism staff 3.A lack of effective managerial training 4.Lack of co-ordination between the educational sector and the tourism industry 5.Limited number of tourism instructors 6.Inadequate investment in training by the private sector 7.Insufficient and inadequate designed in-house training programmes

  30. HRM problems in the China tourism industry 2 8. Too few internship opportunities for tourism students 9. Poor regulation of training institutions 10.Inadequate government fiscal incentives to facilitate industry training 11.Limited public sector support for tourism 12.Low wages and salary levels for employees in the tourism industry 13.Negative attitude towards service occupations

  31. 4.TOURISM AND HRM ISSUES ＊Role of medium and large-sized tourism business on HRM ＊Role of small tourism enterprises on HRM

  32. Role of medium and large-sized enterprises on HRM (1) • recruit and continuously develop the staff resource to achieve strategies goals of • re-invest in the human resource through on-going training and development of the employees skills and ability to create and add value to the organization

  33. Role of medium and large-sized enterprises on HRM (2)

  34. Role of small enterprises on HRM • Definition (OP) • Importance of HRM on small business (OP) • Management difference between small and large firms (OP) • Case study (OP)

  35. Definition (1) • Research on tourism and small and no universal definition • Morrison: “ a small tourism business is financed by one individual or small group and is directly managed by its owner(s),in a personalized manner and not through the medium of a formalized management structure… it is perceived as small, in terms of ( in the way of) physical facilities, production/service capacity, market share and the number of employees.”

  36. Definition (2) • Definitions according to employee size varies with each study: • Deloitte Touche Tomatsu 1994: All the tourism business where there are less than 10 employees are called small business. • Thomas et al 1997 in the UK: In EU, small tourism business could adopt 50 employees; the business where there are less than 10 is called micro-enterprise.

  37. Management difference between small and large firms

  38. Importance of HRM on small business (1) Small businesses are major: Morrison 1996: • Traditionally the tourism industry has been dominated by the small business and this still remains true in the 1990s. • in Ireland, about 79% small firms , less than 15 employees; in New Zealand, it is near to 90%.

  39. Importance of HRM on small business (2) On HRM, small businesses can be categorized into 4 types of firms

  40. Importance of HRM on small business (3) The short-term time horizon( plan ) of small business and owner-managed ( family-managed) structure relies more on personal skills , especially leadership qualities and experience.

  41. HRM in small tourism firms • Small business normally have constraints on the resource base –not fund development as large firms • HRM is widely acknowledged as major • HRM is often of marginal interest for family-owners • Most important is in recruitment and selection • Small firms tend to use marginally qualified staff • Management training is limited among the owner-managers • Many managers don’t apply strict principles of HRM

  42. Case studyHRM issues in small tourism business in New Zealand (1) • Tourism small business is the major one in New Zealand: ▪ Cameron et al 1997 reported: small and medium-sized enterprises consist of 99% - 60% of working population in small businesses - 80% of businesses employ fewer than 5 people

  43. New Zealand (1.1) ▪Deloitte Touche Tomatsu 1994 study surveyed: 232 small tourism businesses had fewer than 10 people: - over 50% had set up since 1989, - 26% of them started business in 1991-92 ▪ All these reflect the dynamic nature of the business sector. ▪Over half of firms set up funds from their own sources, and 70% had no experience of tourism before starting up.

  44. Case studyNew Zealand (2) 2. They may not be sufficiently aware of HRM issues and related employment such as seasonality which are worrying: • at the time of startup,146 businesses employed 312 full-time staff---- 2 staff, left 20, • by 1994,183 businesses employed 342 staff--- 1 staff, left 159 • They employed part-time workers. This poses major HRM issues in terms of recruitment, selection and retention of seasonal staff.

  45. Case studyNew Zealand (3) 3. In Northland,297 small businesses, three modes of business operations: 1) individual owner-operator (major, 34.5%) 2) trust owned ( entrust others to operate) 3) local authority owned (local museums) 4. In Northland ▪ 40% accommodation ▪ 22% restaurant ▪ 48% multi-business( employment of that form of work) 5. in terms of employment, small businesses rely on word of mouth.

  46. 5. MANAGING HRM ISSUES IN THE TOURISM SECTOR IN THIS CENTURY ＊Workforce ＊HR Policies ＊Challenge ＊Weakness

  47. 5.Managing HRM issues in this century (1) • Cooper et al 1998: • The major challenges facing the tourism industry will be successfully by workforce who are 1) well-educated, 4) energetic 2) well-trained, 5) multilingual 3) bright, 6) entrepreneurial 7) who understand the nature of tourism and have a professional training.

  48. Managing HRM issues in this century (2) • High quality of professional human resources in tourism will allow enterprises to gain a competitive edge and deliver added value with their service 2. Weakness: severe shortage of trained and able staff.

  49. Managing HRM issues in this century (3) 3. Challenges ( which faces any employee) the ability to response and adapt to change, esp. at managerial level. 4. In a high technology sector ( vital ) ﹡knowledge and managerial skills ﹡managing staff and the recruitment and retention of high- ability) staff

  50. Managing HRM issues in this century (4) 5.Needs more sophisticated human resource polices to be developed and implemented in the following areas for the tourism sector to add value to its staff and change the sectors image as an employer: • induction of staff • appraisal and staff performance evaluation • effective staff communication • rewarding initiative and excellence • empowering staff • improved industry---education collaboration

More Related