Business Research in Hospitality

Document Type:Thesis

Subject Area:Tourism

Document 1

A favorable compensation philosophy is indicative of the commitment by management to put the interests and welfare of the employees at heart. It is important that the recruitment model and compensation policy work hand in hand towards fostering retention and exponential growth of the business in the industry. The significance of good human resource management framework is yielding tremendous returns for an entity through innovation driven by employees’ creativity and desire to offer the best services commensurate to the compensation philosophy. The two theories that provide an understanding towards the initiation of a framework cognizant to asserting a better organizational performance are the Iceberg theory for Staff Selection and Herzberg two factor theories for staff retention. Staff selection is the process under which the management undertakes to interview and evaluate prospective candidates suitability for a certain job based on an established criterion.

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A preview of the Iceberg model of assessment Relevance of the Iceberg Theory on Staff Selection Staff selection is an important component of the organizational success when it comes to picking the right team responsible for initiating a transformative model of operations. It is imperative that the management team undertakes measures that will link competency to the candidates presented for selection. The iceberg theory develops a significant breakthrough for the human resource managers since it sets up the parameters that should guide them in evaluation of the suitability of a candidate. The theory establishes a good explanation that is evident in most selection processes in which a recruiter focuses on the skills and knowledge of the employee which a likened to the tip of an iceberg viewed floating on the water.

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Nonetheless, the philosophy of the theory is premised on the hidden attributes that exhibit the magnitude of the iceberg falling below the water. Hidden attributes below the tip of the iceberg such as feelings, emotions, values and beliefs among others that define the ability of a candidate to execute tasks effectively and handle the dynamic nature of the hospitality and hotel industry. The hidden qualities are important for the selection process since an individual that poses a better temperament for the job could be identified from such parameters. The labor market is liberalized, and any organization that seeks to attract the best talent need to ensure that they initiate measures like application of the iceberg theory in place to attain significant progress (Eskreis-Winkler et al.

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It is critical for the hotel to put its best feet forward and match their needs to the existent talents in the labor market to foster a candid framework that effect better performance among employees. Limitations of the Iceberg Theory Application on Staff Selection The application of the iceberg theory in staff selection offers a defining moment in guiding an elaborate framework of employing the best candidate for different organizational tasks. The essence of staff retention to an organization is to ensure that a facilitative framework is adopted by an organization focused on the desire to promote job satisfaction among employees. A preview of the Herzberg two factor theory Impact of the Herzberg Two-factor Theory on Staff Retention AlBattat & Som (2013) agree on the pivotal role played by the Herzberg Two-factor theory when it comes to ascertaining the best strategies to employ for purposes of retaining staff.

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The costs of staff turnover work to the detriment of an organization executing a seamless set of operations for better performance. Businesses in the hotel and hospitality industry thrive on consumer loyalty facilitated by personalized consumer-employer relationship which is often adversely disrupted by employee turnover (Farr & Tippins, 2017, 256). The Herzberg Two-factor theory develops a substantive analysis of the work environment and moves ahead to offer guidance on areas other than increased remuneration that guarantee employee satisfaction. The industry requires the employees to develop a positive attitude about their job and for the achievement of such an arrangement it behooves an entity to put up an environment that supports job satisfaction to retain employees. Employee turnover can either be voluntary and involuntary depending on the motivation that inspires an individual towards a given decision.

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According to (Dusterhoff, Cunningham & MacGregor (2014), the human resource structures and model play a pivotal role towards asserting a mechanism of ensuring discipline and retention of employees achieve value in every undertaking. The Herzberg Two-factor theory enhances the ability of the human resource strategy in responding to employee desires like the need to better the working conditions and establish a reward system to boost employee morale. Relationship between Staff Retention and Business Progression Tam & Clarke (2015, 55), analysis of the labor market provides data that initiates a better outlook of the challenges businesses face in tackling the pressure from employee turnover. The theory does not create a measure of satisfaction since an employee might find a job satisfying but still have some part of the tasks that characterize the job unsatisfactory (Rothausen, Henderson, Arnold, & Malshe, 2017).

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The objectives of the Intercontinental Hotel Sydney are to revamp the human resource strategy for purpose of observing the various facets that define a structure to enhance creativity for both the corporation and benefit the employees. Analysis of the Interdependence and Correlation of the theories The two variables of staff selection and staff retention are directly related since changes in staff selection effect a corresponding change on the other parameter. The manner in which an organization is structured determines whether it will meet their objectives or not in a given industry where competition is rife. The evolution of businesses with the advancement of technology makes it imperative that an understanding of the role of human resource in improving market productivity and competitiveness (Index, & Australia, 2010).

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The selection and retention model are correlated in the sense that during the recruitment drive the management should assess the skills of an individual and assess whether such a person is passionate for the job (Farndale, Raghuram, Gully, Liu, Phillips, & Vidović, 2017). Findings and Recommendations The findings on staff selection agree on the enhanced role of the iceberg model of analysis in demonstrating the features of identifying an employee’s passion and hidden attributes that enhance the objectivity and efficiency of the process. Intercontinental Hotel Sidney should take on the application of the iceberg model to enhance their selection skills that will help them get the best from a labor market constituting of people with different qualities. The reliance on knowledge and skills of a particular job do not score as much as the emotions, values, feelings and beliefs of an individual set out regarding their ability to effectively execute their mandate in a challenging business environment (Goetsch, & Davis, 2014, 33).

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On the other hand, the Herzberg Two-factor theory is important for Intercontinental Hotel Sidney towards reducing turnover costs and boosting efficiency through evaluation of the sources of dissatisfaction among the employees. The objectives that should define the corporation's human resource strategy include the compensation framework capacity to align with the stakeholders and shareholders' interests for the company. The mechanism which reinforces a business culture that upholds high ethical standards among employees for a positive attitude and desire to work for the entity on a long term period hails from a well thought out strategy (Bamberger, Biron, & Meshoulam, 2014, 122). Moreover the objective of the hotel staffing strategy should be to encourage prudent decision making by the management. Decision making determines how they manage the levels or risk exposure, reflect regulatory guidance on human resource administration, and retain the best talent that will spearhead the company to success in the industry.

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References Textbooks Armstrong, M.  Managing human resources. McGraw-Hill Education. Cerinus, M. , & Shannon, M. Improving staff selection processes. Farr, J. L. , & Tippins, N. T. (Eds. , & Davis, S. B.  Quality management for organizational excellence. Upper Saddle River, NJ: pearson. Gupta, N. M.  Strategic staffing. Hoboken, NJ: Pearson. Tyson, S.  Essentials of human resource management. doi. org/10. 5539/ijbm. v8n5p62 Deery, M. , & Jago, L.  Journal of business ethics, 119(2), 265-273. https://doi. org/10. 1007/s10551-013-1634-1 Farndale, E. , Raghuram, S. , Lamminmaki, D. , & McManus, L. Staff turnover costs: In search of accountability.  International Journal of Hospitality Management, 36, 231-243. https://doi. Should I stay or should I go? Identity and well-being in sensemaking about retention and turnover.  Journal of Management, 43(7), 2357-2385. https://doi. org/10. 1177/0149206315569312 Terera, S.

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