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Factors that impede the tight integration between business strategy and Human Resource strategies in the hospitality industry.
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Factors that impede the tight integration between business strategy and Human Resource strategies in the hospitality industry. The integration of corporate and human resource strategy is one of the much-debated topics within the concept of strategic human resource management. Truss and Gratton (1994) describe strategic human resource management as "the linking of HRM (Human Resource Management) with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility." Thus, Strategic HR means integrating the HR function of an organisation with the company's strategy through HR activities such as recruitment, selection, training and rewards and any other HR activities specific to the hospitality organisation. The necessity of this integration is demonstrated by Miles and Snow (1994) who suggest that, "without human resource strategies and policies linked into strategic business objectives, high levels of organisational performance are not likely." There are, however a number of problems that arise in the process of this integration both within the concepts demonstrated by Hoque (1999) as "internal fit" and "external fit."External fit being the HR strategy "meshed with the business strategy such that there should be a consistency between the values and aims within each." "Internal fit" therefore refering to "the introduction of HRM as an institutionally supported package of practices that cohere with and mutually reinforce each other" i.e. employee policies, commitment, flexibility and quality of work. It is to be argued that one of the main barriers to the successful integration of business and human resource strategy is the lack of commitment and understanding of management (both corporate and line management) to the cause of HRM integration. Dyer and Holder (1988) adopt the stance that "top management is probably the most powerful force that can work against the adoption of HRM iniatives." Whilst Kane (1999) takes the view that, "top management take a short-termist perspective on HRM because they believe that evidence of HRM having a long-term and positive impact on individual or organisation level performance is sketchy." Kane goes on to report on the possible reason for senior and middle managers negative perspective on the value of HRM could also be attributed to their inability to establish tangible elements and positive outcomes directly linked to HRM therefore their commitment deviates or becomes non-existent. Hoque, K's (1999) research into UK hotels indicates "poor practice and a lack of interest in HRM among managers" in the hotel industry. Whilst, Tyson (1997) portrays the "attitude of line managers towards human resource activities" as one of the "key organisational features for successful HRM." Due to management at a “floor” level being at the source of HRM in terms of its implementation at an operational level, line managers can been viewed as a major barrier to impede the integration of corporate and HR strategies. It is therefore suggested that if the integration is to be achieved to its utmost potential, management on all levels must realise the effectiveness of HRM policies and procedures and how to sucessfully immplement them into the organisation. Taking all this information into account, the research undertaken by Hoque (1999) into Human Resource Management and Performance in the UK Hotel Industry, takes a different stance suggesting that for corporate management to impede the integration of strategies, it is done so indirectly through "taking a focus [within the business strategy] on cost reduction or on price factors [which] leads to sup-optimal performance within the industry." Thus illustrating that corporate management should "ideally" emphasise an opposite "quality- enhancer" method with regard to service and the product in question.
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