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Cornell Hospitality Quarterly 54(2) 124 –135 © The Author(s) 2013 Reprints and permission: sagepub.com/journalsPermissions.nav DOI: 10.1177/1938965513475526 cqx.sagepub.com

475526CQXXXX10.1177/1938965513475526 Cornell Hospitality Quarterly XX(X)Madera 2013

Diversity, as the term is used in the United States, is a con- tinuing concern of the U.S. government and the nation’s businesses and organizations The fastest growing groups in the U.S. workforce are Hispanics, Blacks, foreign-born individuals, and people with disabilities (Bureau of Labor Statistics 2009; Houtenville and Kalargyrou 2012; Toossi 2012). All of these groups are included in the U.S definition of workplace diversity, which includes such aspects as eth- nicity, gender, sexual orientation, age, and disability (Arthur and Doverspike 2005; Madera 2011; Richard 2000). Given the government’s focus on diversity, corporate investments in diversity management efforts have grown in the last two decades to an eight-billion-dollar level (Chavez and Weisenger 2008; Hansen 2003). Organizations have adopted numerous practices aimed at fostering diversity, such as mentoring programs focused on developing women and ethnic minorities, diversity training, networking pro- grams that connect employees who share a similar demo- graphic background, and supplier diversity programs.

With the exception of collected lists of best practices, I have found little structured information about specific pro- grams used by hospitality and customer service organiza- tions (Kalev, Dobbin, and Kelly 2006). Thus, the purpose of this study was twofold: first, to outline what the diversity management literature suggests about various diversity

management programs, and second, to examine which diversity management practices are used by organizations that have been recognized as exemplary organizations for diversity management, including a comparison with what the literature recommends. To do this, I analyzed the diver- sity management programs from a sample of hospitality and customer service-related organizations that were named by Diversity Inc. to be top companies for diversity.

Diversity Management Practices Diversity management practices are complementary, inter- related human resource policies that focus on increasing and maintaining a diverse workforce (Dyer and Reeves 1995). Research suggests that diversity management prac- tices can provide firms with a competitive advantage, among other benefits (Cox and Blake 1991; McKay, Avery, and Morris 2008, 2009; Richard 2000; Richard and

1University of Houston, TX, USA

Corresponding Author: Juan M. Madera, Hilton College of Hotel and Restaurant Management, University of Houston, 229 C. N. Hilton Hotel & College, Houston, TX 77204-3028, USA Email: [email protected]

Best Practices in Diversity Management in Customer Service Organizations: An Investigation of Top Companies Cited by Diversity Inc.

Juan M. Madera1

Abstract

An analysis of diversity management programs used by fourteen companies cited for diversity found a suite of practices used by nearly all of them. Using a benchmarking assessment, this study analyzed the diversity management programs from a sample of hospitality and customer service organizations that were named by Diversity Inc. to be top companies for diversity. The analysis of the organizations’ specific practices revealed the following seven complementary and highly related categories of diversity management practice: corporate diversity council, diversity training programs, supplier diversity, employee networking and mentoring, cultural awareness, support for women, and lesbian, gay, bisexual, and transgender network programs and same-sex benefits. The result of these policies is a highly diverse workforce and relatively diverse management in the sample firms.

Keywords

diversity management; best practices; diversity training; human resources; mentoring

Focus on Human Resources

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Johnson 1999). Diversity management practices succeed by directing attention to relevant efforts to achieve the goals of diversity and eliminate discrimination. Among the effective practices are formal, written guidelines and poli- cies to increase diversity, which lead to more diversity in the workforce and management positions (Konrad and Linnehan 1995). Regardless of their specific form, diver- sity management programs generally focus on recruiting and developing diverse employees, for example, through networking and mentoring programs focused on hiring and advancing women and ethnic minorities. Most programs include executive positions related to administering the program, and many firms also maintain programs to source purchasing from women- and minority-owned businesses. In addition, these programs generally involve educating and training employees regarding diversity.

Y. B. Kim (2006) applied a four-dimensional scheme to diversity management practices, based on the following four broad benefits of diversity: maintaining a heteroge- neous workforce that provides new and fresh ideas, improv- ing firm growth, enhancing firm image, and gaining a pool of valuable human resources.

New and Fresh Ideas Y. B. Kim (2006) proposed that a diverse workforce can enhance an organization’s marketing strategy because diversity in work groups often leads to diverse ideas and perspectives. In fact, research shows that groups of diverse personnel are more effective in solving and analyzing prob- lems than are homogeneous groups (Cox 2001). In addition to generating new ideas, a diverse workforce will mirror the diversity that makes up customers.

Improve Firm Growth Research shows that having diversity management pro- grams promotes employees’ organizational attitudes that affect individual performance (McKay, Avery, and Morris 2009). Those favorable attitudes would be reflected in the operations of customer service organizations (Waight and Madera 2011).

Enhance Firm Image Companies with exemplary diversity management prac- tices perform better, as measured by their stock prices (P. Wright et al. 1995). However, allegations of discrimina- tion can harm an organization’s public image (Y. B. Kim 2006) and damage stock prices (Goldman et al. 2006).

Create Valuable Human Resources Customer service organizations already depend on a diverse workforce and will continue to do so. Although recruiting,

selecting, and retaining a diverse workforce will give an organization a competitive advantage (Y. B. Kim 2006), numbers alone are not sufficient. Instead, research shows that the benefits of diversity on organizational performance are contingent on formal and integrative diversity practices (Cox, 2011; Kalev et al. 2006; McKay, Avery, and Morris 2008, 2009).

Commonly Cited Diversity Management Programs Leadership Initiatives

Leadership, particularly executive positions related to administering a diversity program, is one of the most important factors for developing a diverse workforce (Richard 2000). Management positions are responsible for monitoring diversity outcomes (such as recruiting and retention rates of ethnic minorities and women). Some scholars argue that direct involvement from top executives in diversity-related functions can signal an organization’s commitment to diversity (e.g., Cox 2001; Gilbert, Stead, and Ivancevich 1999; Hubbard 2004). Even stronger is including diversity and nondiscrimination policies as part of the organizational culture (Baytos 1992; Cox 2001; Hubbard 2004; Naff and Kellough 2003; Richard 2000; Sturm 2001).

Diversity Training Many organizations offer diversity training to implement and maintain a culture of diversity and inclusion (up to 79%, according to Galvin 2003). Although the specifics of diversity training programs can vary widely, they share one common set of goals, which is “to increase knowledge about diversity, to improve attitudes about diversity, and to develop diversity skills” (Kulik and Roberson 2008, p. 310). Such training can take the form of online modules, classroom-based training, videos, discussions, role-plays, simulations, and exercises (Bendick, Egan, and Lofhjelm 2001; Pendry, Driscoll, and Field 2007).

Recruitment and Selection Regarding the key aspect of diversity management pro- grams, recruiting and promoting diverse applicants, the lit- erature points to the following three specific strategies: (1) using proper communication media and messages, such as minority publications and websites; (2) using minority recruiters and advertising materials that include diverse individuals; and (3) communicating the importance and value of diversity to all applicants to maintain a positive diversity climate among new hires (Arthur and Doverspike 2005; Avery 2003; Avery, Hernandez, and Hebl 2004; Cox 2001; Digh 1999; Doverspike et al. 2000; Houtenville and

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126 Cornell Hospitality Quarterly 54(2)

Kalargyrou 2012; S. S. Kim and Gelfand 2003; Perkins, Thomas, and Taylor 2000).

Mentoring and Networking The diversity management literature underscores the impor- tance of mentoring and networking programs for minorities (Brass 1984). Many diversity management programs focus on mentoring and providing networks for minority employ- ees. The literature suggests two major programs: (1) creat- ing formal programs in which managers mentor minority employees and (2) using affinity groups—employee net- working groups in which employees engage in informal activities, discussions, and meetings to share information and career advice (Cole 2003; Digh 1997; Higgins and Thomas 2001; Houtenville and Kalargyrou 2012; Sparrowe and Liden 2005; D. A. Thomas 2001;Wanberg, Welsh, and Hezlett 2003).

Supplier Diversity Supplier diversity programs help support the estimated 10.4 million women- and minority-owned businesses in the United States, which generate more than $1.5 trillion in sales revenue and employ 11.7 million people (U.S. Census Bureau 2002). More than 75 percent of organiza- tions have some type of supplier diversity initiative, but these initiatives are not always communicated or imple- mented effectively (Holmes 2005). Corporate commitment and corporate culture have been identified as the most important factors in developing and maintaining a supplier diversity program (Carter, Auskalnis and Ketchum 1999; Duffy 2004; Min 1999; Whitfield and Landeros 2006; Yuva 2003).

Affirmative Action (AA) and Equal Employment Opportunity (EEO) Compliance Underlying most successful diversity programs are AA/ EEO programs, which are also generally mandated by fed- eral or state law. Usually administered by a director, AA/ EEO programs focus on setting goals for increasing diver- sity in all ranks of an organization and evaluating the progress of diversity, including collecting and analyzing demographic information of an organization, finding departments or ranks in which women and minorities are underutilized, and disseminating information about diver- sity to employees (Cox 2011; Jayne and Dipboye 2004; Kalev et al. 2006; Konrad and Linnehan 1995).

With that background for why diversity management practices benefit hospitality organizations, I will examine which specific diversity management practices are adopted by a sample of successful hospitality and customer service organizations. The goal is to develop an organized list of diversity programs and discover whether diversity

management practices recommended by researchers are the ones adopted by these successful firms.

Method and Sample Construction Using Hinkin and Tracey’s (2010) benchmarking assessment methodology, I studied fourteen organizations selected from the 2010 Diversity Inc. Top 50 Companies for Diversity to investigate what these organizations do to suc- cessfully manage a diverse workforce. In this competitive- generic hybrid benchmarking analysis, organizations from the same industry and organizations from other but similar industries are examined in one sample. I used the Diversity Inc. list as a proxy for an assessment of effective diversity management. I note that these organizations have a higher proportion of women and minorities in their workforce, management positions, and executive positions than orga- nizations outside this list. These organizations are represen- tative of major U.S. corporations, and they are positively rated by the majority of their employees. Their company size, revenue, health care benefits, and salaries are highly comparable, and company information and demographic data are generally available. Because the majority are head- quartered in the United States, most organizations are gov- erned by the same laws (e.g., Title VII of U.S. Civil Rights Law). Similar methods have been used by past research examining diversity management practices (e.g., Bilimoria 2006; Rechner and Dalton 1991; Wiersema and Bantel 1992).

The fourteen companies that I chose from the Diversity Inc. list all involve a large service component as part of their business model. The sample included five hospitality organizations: Sodexo (ranked 1 by Diversity Inc.), Marriott International (ranked 7), Starwood Hotels and Resorts Worldwide (ranked 19), MGM Mirage (ranked 24), and the Walt Disney Company (ranked 33); two food and beverage purveyors—the Coca-Cola Company (ranked 17) and Kraft Foods (ranked 35); and seven other service organizations: Bank of America (ranked 9), Verizon Communications (ranked 11), Health Care Service Corporation (ranked 20), HSBC-North America Bank (ranked 27), JP Morgan Chase Bank (ranked 34), Target Corporation (ranked 40), and J. C. Penney (ranked 46). These fourteen organizations are listed in Exhibit 1, together with their diversity manage- ment practices, and ethnicity- and gender-related workforce statistics, as available.

The Diversity Inc. list is developed from a multiple- choice survey consisting of about 300 questions that is mailed to more than 700 companies. No subjective or quali- tative questions are asked. The survey is organized in four parts: CEO commitment, human capital, corporate commu- nications (internal and external), and supplier diversity. The survey includes questions on workforce demographics, including information on race and gender at different levels of management and on the retention rates for female and minority managers, and about supplier diversity, such as the

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Exhibit 1: Diversity Management and Workforce Diversity Statistics

Ranking and Company Diversity Management Practices Workforce Diversity Statistics

(1) Sodexo 1. Corporate diversity council 2. Diversity training programs 3. Supplier diversity 4. Employee networking and mentoring programs 5. Cultural awareness 6. Support for women 7. Same-sex benefits

Ethnic minorities account for 49.7% of the workforce, and 60% are women.

Ethnic minorities account for 24% of management, and 45% are women.

(7) Marriott International 1. Corporate diversity council 2. Diversity training programs 3. Supplier diversity 4. Employee networking and mentoring programs 5. Cultural awareness 6. Support for women 7. Same-sex benefits

Ethnic minorities account for 61% of the workforce, and 55% are women.

Women account for 48% of management. Ethnic minorities are 27% of new managers hired.

(9) Bank of America 1. Corporate diversity council 2. Supplier diversity 3. Employee networking and mentoring programs 4. Cultural awareness 5. Support for women 6. Same-sex benefits

Ethnic minorities account for 44% of the workforce, and 69% are women.

Ethnic minorities account for 25% of management, and 49% are women.

(11) Verizon Communications

1. Corporate diversity council 2. Supplier diversity 3. Employee networking and mentoring programs 4. Cultural awareness 5. Support for women 6. Same-sex benefits

Ethnic minorities account for 37% of the workforce, and women are 30%.

30% of managers are ethnic minorities, and 22% are women.

(17) Coca-Cola Company 1. Corporate diversity council 2. Diversity training programs 3. Supplier diversity 4. Employee networking and mentoring programs 5. Cultural awareness 6. Support for women 7. Same-sex benefits

Ethnic minorities account for 35% of the workforce, and 41% are women.

Ethnic minorities account for 35% of management, and 49% are women.

(19) Starwood Hotels and Resorts Worldwide

1. Corporate diversity council 2. Diversity training programs 3. Supplier diversity 4. Employee networking and mentoring programs 5. Cultural awareness 6. Same-sex benefits

Ethnic minorities account for 60% of the workforce, and 50% are women.

Ethnic minorities account for 50% of college interns.

(20) Health Care Service Corporation

1. Corporate diversity council 2. Diversity training programs 3. Supplier diversity 4. Employee networking and mentoring programs 5. Cultural awareness 6. Same-sex benefits

Ethnic minorities account for 41% of the workforce, and 34% are women.

(24) MGM Mirage 1. Corporate diversity council 2. Diversity training programs 3. Supplier diversity 4. Employee networking and mentoring programs 5. Support for women 6. Same-sex benefits

Ethnic minorities account for 61% of the workforce, and 50% are women.

Ethnic minorities account for 36% of management, and 44% are women

(27) HSBC-North America Bank

1. Corporate diversity council 2. Supplier diversity 3. Employee networking and mentoring programs 4. Support for women 5. Same-sex benefits

Ethnic minorities account for 40% of the workforce, and 57% are women.

Ethnic minorities account for 37% of new hires, and 56% are women

(continued)

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128 Cornell Hospitality Quarterly 54(2)

Ranking and Company Diversity Management Practices Workforce Diversity Statistics

(33) Walt Disney Company

1. Corporate diversity council 2. Diversity training programs 3. Supplier diversity 4. Employee networking and mentoring programs 5. Cultural awareness 6. Support for women 7. Same-sex benefits

Ethnic minorities account for 21% of the workforce, and 52% are women.

Ethnic minorities account for 21% of management, and 44% are women

(34) JP Morgan Chase Bank

1. Corporate diversity council 2. Diversity training programs 3. Supplier diversity 4. Employee networking and mentoring programs 5. Cultural awareness 6. Support for women 7. Same-sex benefits

Ethnic minorities account for 41% of the workforce.

(35) Kraft Foods 1. Corporate diversity council 2. Supplier diversity 3. Employee networking and mentoring programs 4. Support for women 5. Same-sex benefits

Ethnic minorities account for 21% of the workforce, and 35% are women

(40) Target Corporation 1. Corporate diversity council 2. Diversity training programs 3. Supplier diversity 4. Employee networking and mentoring programs 5. Cultural awareness 6. Support for women 7. Same-sex benefits

Ethnic minorities account for 42% of the workforce, and 59% are women.

Ethnic minorities account for 23% of management, and 47% are women.

(46) J. C. Penney 1. Corporate diversity council 2. Diversity training programs 3. Supplier diversity 4. Employee networking and mentoring programs 5. Cultural awareness 6. Support for women 7. Same-sex benefits

Workforce demographic data were not available.

Exhibit 1: (continued)

volume of purchases, provision of loans, or other financial assistance to diverse suppliers. To be selected for the list, companies must score above average in all four parts.

My study examined these firms’ diversity management practices as found on their web sites, the Standard and Poor’s Register of Corporations, and information from the Human Rights Campaign, the National Association of Female Executives (NAFE), and the National Minority Supplier Development Council. I conducted a content anal- ysis using Krippendorff’s (2004) coding guidelines, in which trained coders read all of the materials and develop a coding scheme. Along with the coders, I cross-checked the coding scheme for reliability. We then developed and cross-checked subthemes.

Results and Discussion The content analysis found seven major themes reflecting the following seven diversity management programs applied by all fourteen corporations: corporate diversity

council, diversity training programs, supplier diversity, employee networking and mentoring, cultural awareness, support for women, and lesbian, gay, bisexual, and trans- gender network (LGBT) programs and same-sex benefits.

Corporate Diversity Council Although known by different names, the firms’ corporate diversity councils have a common function of focusing management and staff on diversity issues and actions. At Coca-Cola, the diversity council is composed of employees from various levels and business units to advise senior management regarding diversity (Coca-Cola 2011). MGM Mirage holds diversity roundtable discussions that include top executives, including the CEO, and established the Corporate Diversity and Community Affairs Department to implement diversity and inclusion initiatives (MGM Mirage 2011). The CEO of Bank of America is the chair of their corporate diversity council, which meets quarterly (Bank of America 2011).

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Kraft Foods established a diversity practices council that comprises executive leaders from various departments, including corporate and legal affairs, multicultural market- ing, diversity management, and talent acquisition to ensure that their diversity efforts are aligned with corporate strate- gies (Ezell, Wise, and Moody 2010). Sodexo takes a unique approach with their diversity council because the members of their Diversity and Inclusion Business Advisory Board are not employees of Sodexo, but are rather leaders from outside the company who advise the corporate leaders on diversity issues (Sodexo 2011).

Starwood Hotels and JP Morgan Chase all include senior leaders in their diversity teams. Starwood’s Diversity Council monitors the status of women and minorities in three areas: their associates, managers, and owners. Chaired by the CEO, Marriott International created a corporate diversity council that meets quarterly and is composed of company executive leaders who are responsible for devel- oping diversity objectives and keeping track of diversity in four areas, including their employees, guests, suppliers, and owners.

J. C. Penney uses regional chapters for its diversity and inclusion councils overseen by a senior executive of diver- sity and inclusion development program (J. C. Penney 2011). Similarly, the Walt Disney Company established a diversity leadership advisory board comprising executives from various business units in all of its locations. These diversity councils assist their site in developing diversity strategies, such as monitoring trends in management diver- sity. A common thread in all these diversity councils is that support from top management is an important aspect, reflecting the importance of top management in promoting diversity initiatives (Chrobot-Mason and Quiñones 2002; Hebl, Madera, and King 2007).

Diversity Training Programs Ten of the fourteen organizations communicate the avail- ability of diversity training through their corporate web site, namely, Coca-Cola, Health Care Service Corporation, J. C. Penney, JP Morgan Chase Bank, Marriott, MGM Mirage, Starwood Hotels and Resorts, Target, Walt Disney, and Sodexo. Coca-Cola, for instance, has diversity training, a diversity speaker series, and diversity training for supplier diversity to ensure that its associates understand how women- and minority-owned business can be used as an asset for Coca-Cola. Sodexo maintains mandatory diversity training for the entire workforce on such topics as genera- tions in the workplace and cross-cultural communications. Similarly, Target has mandatory diversity training for all of their employees, which is held monthly for half a day.

Diversity training at Starwood Hotels and Resorts Worldwide is not mandatory, but a one-day session at MGM Mirage is required for both employees and managers.

Marriott International’s training is also mandatory, as is that of Health Care Service Corporation, J. C. Penney, Walt Disney, and Kraft Foods, in sessions that range from half a day to a full day. Broad or Narrow Approach to Diversity. Most of the firms I studied defined diversity quite broadly, but some gave it a narrow interpretation. Broad definitions can encompass a variety of demographic dimensions (e.g., race, age, gender, disability, sexual orientation) and individual dimensions (e.g., parental status, education level, personal- ity). In contrast, narrow definitions of diversity may only consider a few demographic dimensions (e.g., race, age; Roberson, Kulik, and Pepper 2003).

Diversity training in the following firms takes a broad approach: Coca-Cola, Health Care Service Corporation, J. C. Penney, JP Morgan Chase, Sodexo, Target, and the Walt Disney Company. This approach is consistent with research- based evidence that shows that employees prefer diversity training that takes a broad approach (Mobley and Payne 1992; Roberson et al. 2003). In doing so, employees feel that every group, whether based on race or age, is repre- sented as diverse, including their own.

Supplier Diversity All fourteen of the organizations had some type of supplier diversity program that was clearly communicated through their web sites. In 2010, the Walt Disney Company’s sup- plier diversity program spent $443.6 million on women- and minority-owned businesses, representing more than 13 percent of the firm’s supplier spending (Walt Disney Company 2011), and Disney also has a formal relationship with the National Association of Women Business Owners. MGM Mirage spent more than $700 million (17% of its supplier spending) in construction and design contracts with more than 200 minority-owned firms throughout a five-year project (MGM Mirage 2011), and works with the Women’s Chamber of Commerce of Nevada to support women-owned businesses. Marriott International spends 16.6 percent of its discretionary spending with diverse sup- pliers, surpassing its goal of 15 percent established in 2007 (Marriott International 2011). Similarly, Starwood Hotels and Resorts Worldwide spends 11 percent with diverse suppliers.

Supplier diversity programs are mutually beneficial. HSBC-North America (2011) states that “HSBC leverages the supplier diversity program to build relationships with select businesses by providing training and exposure that strengthens their ability to compete in the U.S. and global market place.” With more than 30 years of experience, J. C. Penney has a long history with promoting minority- and women-based organizations. J. C. Penney is a found- ing member of the National Minority Supplier Development Council and the Women’s Business Enterprise Council,

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two business networking organizations that are focused on promoting women- and minority-owned businesses. Similarly, supplier diversity for Sodexo, which spends 14 percent on supplier diversity initiatives, is communicated as an opportunity to provide excellent products and goods, and as a competitive advantage for their diverse customers and their minority-based business partners (Sodexo 2011).

Many of the organizations also provide some form of mentoring to diverse suppliers. Spending 25 percent of its supplier spending on women- and minority-owned busi- nesses, Coca-Cola established a supplier diversity men- toring program that trains and guides female and minority business owners (Coca-Cola 2011; Tharasook 2008). In addition to spending 28 percent of supplier spending with diverse vendors, Bank of America provides women- and minority-owned suppliers financial assistance and resources, such as loans, equity financing, and financial ser- vices (Bank of America 2011). Verizon spent 36.5 percent of its supplier spending with diverse suppliers and actively pursues business with diverse suppliers by partnering with diversity advocacy groups, chambers of commerce, and other organizations to identify qualified diversity suppliers (Verizon 2011). In sum, the average spending on diverse suppliers was 20 percent for this sample, higher than the typical spending focused on women- and minority-owned businesses, which ranges more commonly from 5 to 8 per- cent (National Minority Supplier Development Council 2004).

Employee Networking and Mentoring Programs The third theme that emerged from the data analysis was the presence of employee networking groups and mentor- ing programs, which are found in all fourteen organiza- tions. For example, Verizon established the Employee Resource Group, which provides networking, mentoring, special initiatives, seminars, and conferences for employ- ees (Verizon 2011). Kraft Foods established a “Jumpstart” program in which senior members coach employees who have less than three years with the company. The program helps employees understand how to build and maintain relationships, gain leadership skills, and establish effective mentor networks. Kraft Foods also has peer-coaching net- works that are specifically aimed at accelerating the devel- opment of women and ethnic minorities toward management positions (Ezell et al. 2010). Similarly, MGM Mirage holds a nine-month executive mentoring program with the goal of advancing high-potential minority employees into the executive level.

Sodexo uses both mentoring and employee networking groups for its diversity and inclusion initiatives. In particu- lar, Sodexo established IMPACT, which is an annual event in which mentoring partnerships are formed to help

protégés achieve their work goals. To increase diversity in management, Sodexo also established the “Spirit of Mentoring Bridge Program,” which is focused on connect- ing newly hired and frontline managers.

Starwood established a virtual mentor network that is centered on a web-based tool that allows employees world- wide to create mentoring relationships with other associ- ates. Mentors and protégés establish goals on leadership competencies and measure progress, provide coaching and development opportunities, and prepare employees for leadership roles (Allen, Finkelstein, and Poteet 2009). Affinity Groups. A subtheme in the networking category is affinity groups based on a common dimension (e.g., race, reli- gion, disability, gender). Sodexo’s affinity groups, for instance, include the African American Leadership Forum, the Military Network Group, the Intergenerational Network Group, the Pan-Asian Employee Network Group, PRIDE (a LGBT), the Organization for Disabilities Resources, the Organization of Latinos, and the Women’s Network Group (Catalyst 2012).

Coca-Cola, HSBC-North America Bank, and J. C. Penney have also established affinity groups, such as people with disabilities, female, African-American, Asian/Pacific Islander, LGBT, Hispanic, and Native American employ- ees. Developing employee networking groups, and mentor- ing programs that are focused on women and minorities is aligned with the literature examining mentoring experi- ences for those groups, which suggests that minority man- agers have fewer intimate networking relationships (Hebl, Madera, and King 2007; Ibarra 1995; D. A. Thomas 1990). It is widely recognized that networks are central to a per- son’s mobility, promotion, and emergence as a leader. The absence of such networks, moreover, leads to feelings of exclusion and lack of commitment in the workplace (Williams and O’Reilly 1998).

Cultural Awareness Twelve of the fourteen organizations communicated cul- tural awareness programs or training on their corporate web sites: Bank of America, Coca-Cola, Health Care Service Corporation, J. C. Penney, JP Morgan Chase, Marriott, Target, Sodexo, Starwood Hotels and Resorts, Verizon, and Walt Disney.

Marriott’s web site clearly communicates that the multi- cultural makeup of the U.S. workforce is a business oppor- tunity, stating that

for many new immigrants, hotels are often the first opportunity for formal employment and [they] deeply influence initial impressions of their new homeland. In the U.S., many of our associates are foreign-born, and Marriott has long advocated for a comprehensive approach to immigration reform. (Marriott International 2011)

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In addition to their efforts in U.S. properties, in 2008, Marriott appointed a global diversity officer to spearhead the company’s diversity outreach outside of the United States. Part of Marriott’s required diversity training aims to help employees gain cultural competence and be able to effectively work with peers and customers from different cultures. Disney uses its “hola” program to promote Hispanic and Latino heritage and cultural exchange between employees.

An example of how hospitality organizations can embrace cultural awareness is provided by the observance of Ramadan by Starwood Hotels and Resorts, in which the hotels provide reduced rates to customers traveling during that time. Verizon also celebrates cultural holidays with events such as the Lunar New Year, Cinco de Mayo, Hispanic Heritage month, Black History month, Latin Grammys, the National Association for the Advancement of Colored People Image Awards, and the Hispanic and Asian film festivals. Health Care Service Corporation established a “Diversity Day,” in which employees can take a paid float- ing holiday that can be used for any cultural holiday.

In addition to having general cultural awareness pro- grams, some of the organizations, such as Starwood and Marriott, have programs that welcome employees from all cultures and facilitate employees to work and gain interna- tional experience in their company under specific visas. Such programs promote cultural diversity among the work- force and strengthen employees’ ability to communicate effectively with a wide span of customers. Language Proficiency Programs. Another subtheme was that some of the organizations had programs focusing on language proficiency. Both Starwood Hotels and Resorts, and Marriott offered language programs. Marriott’s lan- guage program teaches Spanish-speaking employees work- place skills in English to increase their English proficiency. Such programs benefit the workers and develop a bilingual staff, which is important to the organization. Verizon pro- vides customer service in multiple languages in the United States to support customers in Mandarin, Cantonese, Korean, Russian, Spanish, and Vietnamese.

Support for Women All of the firms work on recruiting, developing, and retain- ing women. This finding is underscored by the fact that women constitute a greater proportion of workers than ever before (Powell and Graves 2003). It is projected that by 2016, women will make up about 46 percent of the labor force, a percentage that will hold relatively steady (at 48%) through 2025 (Fullerton 1999; Toossi 2008). The hospital- ity industry has more work to do here, given its reputation for sex discrimination, sexual harassment, and being male dominant (Slonaker, Wendt, and Baker 2007; Sparrowe and Iverson 1999). Additionally, research has shown that

women earn less than men in similar job positions and that there are gender differences in hospitality industry manage- rial positions (Biswas and Cassell 1996; Purcell 1996; Sparrowe and Iverson 1999; Thrane 2007).

The fourteen organizations in this study have clearly rec- ognized the value of creating avenues for women in top management positions, with programs such as “Women’s Leadership Development Program” at Marriott, Coca- Cola’s “Women’s Linc” business resource group, and the J. C. Penney women’s affinity group. Marriott’s program includes a Leadership Development Talent Inventory pro- cess for female general managers to give them a personal assessment, feedback, coaching, a workshop, and a per- sonal development plan. Sodexo’s “Women’s Network Group” was established to include women’s growth and development as part of Sodexo’s culture and mission (Catalyst 2012).

Seven of the firms have been given the NAFE Top 50 Award, for companies that display a great interest in their female executives, based on the number of women in exec- utive positions. Those firms are Bank of America, HSBC- North America, JP Morgan Chase, Kraft Foods, Marriott Hotels, Sodexo, and Verizon. Women in the organizations on the NAFE list represent an average of 23 percent of boards of directors and 26 percent of executive positions. In contrast, women only constitute 15.4 percent of corporate officers and 14.6 percent of boards of directors of Fortune 500 organizations (Catalyst 2007).

LGBT Programs and Same-Sex Benefits The last theme that emerged from the analysis is support for LGBT employees and providing same-sex benefits. All fourteen organizations offer same-sex benefits to their employees, which exceeds the 57 percent rate of Fortune 500 organizations that provide benefits to employees’ same- sex partners. Estimated at up to 10 percent of the popula- tion, LGBT individuals often face discrimination in their personal lives (Gonsiorek and Weinrich 1991; Herek 2000) and in the workplace (Friskopp and Silverstein 1996; Hebl, Madera, and King 2007; Ragins and Cornwell 2001; Ragins, Singh, and Cornwell 2007). Although there are state and local antidiscrimination laws that protect sexual orientation diversity, sexual orientation is not protected at the federal level.

Three organizations stand out for advancing LGBT employment policies and protection: Marriott International, JP Morgan Chase, and MGM Mirage. Marriott International was among the first in the lodging industry to offer domes- tic partner benefits and has earned perfect 100-percent scores on the Human Rights Campaign’s Corporate Equality Index for multiple years (Gunther 2008). JP Morgan Chase was the first in the banking industry to offer same-sex

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132 Cornell Hospitality Quarterly 54(2)

domestic partner benefits to its employees. Similarly, MGM Mirage was the first company in the gaming industry to offer same-sex health benefits to employees.

Other organizations also provide same-sex benefits and actively engage in events that advance LGBT diversity. Verizon flies a rainbow flag during Pride month, and Target has a history of sponsoring events in the LGBT community. In addition, Marriott hotels have hosted LGBT community functions and events as part of their efforts to advance LGBT inclusion policies. Sexual Orientation Nondiscrimination. A subtheme that emerged here is that some of the organizations also include sexual orientation in their nondiscrimination polices, includ- ing J. C. Penney, Disney, and Starwood, which includes gender identity as a protected class. Research has shown that including LGBT nondiscrimination policies is posi- tively related to job satisfaction and commitment among LGBT employees (Day and Schoenrade 2000).

Comparing the Results to the Literature As a final step, I compared the results of the content analy- sis with recommendations from the diversity management literature to examine whether the programs adopted by these large, successful organizations match those recom- mendations. I found considerable congruence. These com- panies had leadership initiatives, diversity training, supplier diversity programs, and mentoring and networking pro- grams, and they also communicated their support of diver- sity and nondiscrimination policies through their cultural awareness, support for women, diversity training, and LGBT programs and same-sex benefits.

In addition, the importance of recruiting and selecting diverse individuals was also communicated through many of the diversity management practices adopted by these firms, including Marriott’s global diversity officer; the sup- plier diversity initiatives (including women-owned busi- nesses) on the part of MGM Mirage, Verizon, and Walt Disney; Marriott’s language program; and Marriott International’s, JP Morgan Chase’s, and MGM Mirage’s offer of same-sex benefits and protection to attract and retain LGBT individuals.

I also identified practices that were not aligned with the diversity management literature’s recommendations. In only three firms, for example, was the CEO part of the cor- porate diversity council, Marriott, MGM Mirage, and Bank of America. However, many firms did have corporate diversity councils to administer diversity initiatives and progress.

Interestingly, the companies in this sample do not include specific mentions of AA or EEO policies in conjunction with their diversity program. This result, however, is con- sistent with a growing body of literature that suggests that because AA/EEO programs are federally mandated and are

often associated with negative stereotypes, many organiza- tions frame their diversity initiatives outside of their AA/ EEO statements (Chavez and Weisenger 2008; Hansen 2003; Society for Human Resource Management 2008). That is, diversity management practices are voluntary orga- nizational programs, whereas AA/EEO programs are tied to legislation.

The results also underscore an important shortcoming of the diversity management literature, which is that the lit- erature lacks practical and specific advice. The best prac- tices suggested by the diversity management literature are often conceptual and general, while the firms’ practices are often quite specific to various groups, such as affinity groups focusing on disabilities, programs to promote women into management, language programs for foreign- born employees, and policies that specifically protect LGBT employees.

Summary and Conclusion This study identified seven categories of diversity man- agement practices used by the fourteen organizations I examined: corporate diversity council, diversity training programs, supplier diversity, employee networking and mentoring, cultural awareness, support for women, and LGBT programs and same-sex benefits.

This study contributes to the diversity management lit- erature by examining which specific diversity management practices have been adopted. The sample, drawn from the Diversity Inc. top-rated companies, provides a window into diversity management practices used by the most successful firms. The successful diversity management practices high- lighted here are particularly important for the hospitality industry, given its position as one of the largest employers of women, ethnic minorities, and immigrant employees (Jackson and DeFranco 2005; Lee and Chon 2000). Hospitality employers can use these results as a gauge for which diversity management practices have been successful for other service organizations and as models for diversity management. Six organizations use all seven diversity man- agement practices, and all fourteen had at least five of these practices. What these results suggest is that to have a truly effective approach to diversity management, organizations need to offer a broad set of diversity management practices.

One interesting observation is that all fourteen compa- nies had a corporate diversity council, even though only three included their CEO. All of the corporate diversity councils were responsible for diversity initiatives and for monitoring progress, which the diversity management lit- erature suggests is vital for diversity programs to be suc- cessful. Another practice common to all fourteen companies was the use of employee networking groups or affinity groups. The fact that this can be done virtually is

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Madera 133

particularly important for small companies or those with distant operations. I found that Sodexo, Coca-Cola, and Bank of America, among others, use free social media, such as Facebook and Twitter, to organize their affinity groups.

In closing, it important to highlight the presence of hos- pitality firms on this list. A hospitality organization, Sodexo, was the top company for diversity. According to Diversity Inc., Marriott International, Starwood Hotels and Resorts Worldwide, MGM Mirage, and the Walt Disney Company were also high on the list, giving evidence that the hospital- ity industry can be a leader for diversity management prac- tices. These practices will help offset the industry’s major problem, as identified by Hinkin and Tracey (2010): there is an attitude in the hospitality industry that the industry “faces special problems that other industries do not” (p. 170), such as high turnover rates. By adopting diversity management programs, as explained here, organizations in the hospital- ity industry will be able to increase and maintain a diverse workforce in all levels.

Declaration of Conflicting Interests

The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

Funding

The author(s) received no financial support for the research, authorship, and/or publication of this article.

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Bio

Juan M. Madera, PhD, is an assistant professor at the Conrad N. Hilton College of Hotel and Restaurant Management, at the University of Houston.

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MAY 2010 Cornell Hospitality Quarterly 171

The Human Dimension

A Review of Human Resources Management Issues in the Tourism

and Hospitality Industry

by SALIH KUSLUVAN, ZEYNEP KUSLUVAN, IBRAHIM ILHAN, and LUTFI BUYRUK

 2010 CORNELL UNIVERSITY DOI: 10.1177/1938965510362871

Volume 51, Issue 2 171-214

Human resources are often seen as one of the most important assets of tourism and hospitality orga- nizations. Numerous studies have examined how employee performance can be managed to contrib- ute to the organizational bottom line. This article is a structured review of the literature regarding key human resources management (HRM) issues in the tourism and hospitality industry. Based on this review, the authors offer an assessment of emerg- ing trends in HRM and a summary of what has been advocated in the literature for managing employee performance.

Keywords: human resources management; organi- zational culture; internal marketing

The Critical Role of the Human Resources for Tourism and Hospitality Businesses

Few people would reject the proposition that the human element in tourism and hospitality organiza- tions is critical for service quality, customer satis- faction and loyalty, competitive advantage, and organizational performance. This belief is supported by many theories, models, and empirical studies in the strategy, service, and tourism management literatures that stress the critical role of human resources for organizations. On the theoretical front, resource based theory (Barney 1991; Grant 1991;

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HUMAN RESOURCES THE HUMAN DIMENSION

172 Cornell Hospitality Quarterly MAY 2010

Wernerfelt 1984) and its variants— dynamic capability theory (Eisenhardt and Martin 2000; Teece, Pisano, and Shuen 1997), competency-based theory (Prahalad and Hamel 1990), knowledge- based theory (Grant 1996), organizational social capital theory (Leana and Van Buren 1999; Nahapiet and Ghoshal 1998), and intellectual capital theory (Edwinsson and Malone 1997; T. A. Stewart 1997)— posit that firm-specific resources, assets, and capabilities that are valuable, rare, nonsubstitutable, or imperfectly imitable can be an important source of sustainable competitive advantage and performance differential among firms. In this context, it is argued that human capital or assets, including employee knowledge, skills, experience, ability, personality, internal and external relationships, attitudes, and behaviors are essential for creating the firm- specific advantages. Employee attributes are directly influenced by human resources management (HRM) policies, practices, and capabilities of the organization, as well as organizational culture and climate (Barney and Wright 1998; Coff 1997; Lado and Wilson 1994; Mueller 1996; Wright, McMahan, and McWilliams 1994; Wright, Dunford, and Snell 2001). Simi- larly, models developed in the service management literature, such as the gap model of service quality (Parasuraman, Zeithaml, and Berry 1985), the service profit chain model (Heskett et al. 1994), and many others (see Ghobdian, Speller, and Jones 1994), acknowledge the role employees may play in service quality, customer satisfaction, and organizational performance.

Many authors have convincingly explained how and why employees affect competitive advantage and firm perfor- mance. The essence of the argument is that human capital or assets, which are directly influenced by management

policies, practices, systems, capabilities, and organizational culture and climate, “contribute to sustained competitive advantage through facilitating the develop- ment of competencies that are firm spe- cific, produce complex relationships, are embedded in a firm’s history and culture, and generate tacit organizational knowl- edge” (Lado and Wilson 1994, 699). These arguments can be summarized in a basic model where the human capital stocks of the organization, HRM practices, internal marketing, organizational culture and climate, and business and HRM strategy encourage and reinforce employees’ work- related behavior, thereby driving customer value, product-service quality, and cus- tomer satisfaction and loyalty—which are, in turn, the basis of organizational perfor- mance (Exhibit 1).

Because the chief output of tourism and hospitality organizations is services, researchers have investigated the features of services that are most critically driven by human resources. The result is a famil- iar litany: services are intangible; they are produced and consumed simultaneously, usually at the service providers’ location; and customers are present or participating in the service, usually with interpersonal interaction between customers and service providers. Owing to these features, ser- vices are made tangible in the personality, appearance, attitudes, and behavior of the service provider; thus, employees become part of the product, represent the organiza- tion, and help to form the image of the organization (Bitner, Booms, and Tetreault 1990; Hartline and Jones 1996). For these reasons, employees and how they are managed are key determinants of service quality, customer satisfaction and loyalty, competitive advantage, organizational performance, and business success (Bitner, Booms, and Tetrault 1990; Nickson et al. 2002; Schneider 2003).

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Empirical studies also indicate that the service providers’ personality, knowledge, skills, attitudes and behaviors, HRM practices, organizational culture and climate, and business and HRM strategy can be linked to essential customer and organizational outcomes. These argu- ments point to the fact that the treatment and management of the employees should be a crucial concern for managers in the tourism and hospitality industry.

Management of Employee Performance in the Tourism and Hospitality Industry

We now review studies on major trends that have helped shape current modes of thinking on people management in the

tourism and hospitality industry. As we discuss below, most of the contemporary literature that has relevance for the man- agement of people seems to fall in one of the following categories (although there are other issues): (1) employee personality and emotional intelligence, (2) emotional and aesthetic labor, (3) HRM practices, (4) internal marketing, (5) organizational culture and climate, (6) business and HRM strategy, and (7) employee job attitudes and behaviors.

Employee Personality, Emotional Intelligence, and Outcomes

Personality is defined as “those char- acteristics of the person that account for

OUTCOMES

HUMAN RESOURCE MANAGEMENT SYSTEMS AND

PRACTICES

CUSTOMER RELATED OUTCOMES

(Customer Value, Product-Service Quality, Customer Satisfaction, Customer Loyalty, e.t.c.)

ORGANIZATIONAL OUTCOMES

(Competitive Advantage, Profitability, Productivity, Market Share, Increased Sales and Revenues, Growth, Return on Investment, Positive Word of Mouth, e.t.c.)

ORGANIZATIONAL CULTURE AND

CLIMATE

WORK RELATED EMPLOYEE ATTITUDES AND BEHAVIORS

Task Performance, Work Effort, Job Satisfaction, Job Stress, Job Involvement, Employee Turnover, Empoyee Absentism, Motivation, Productivity, Organizational Citizenship, Organizational Commitment, Discipline, Trust in Management, Organizational Identification, Commitment to Customer Service, Self Efficacy, Role Clarity, Service Orientation, Counterproductive Work Behaviors, Ethical Behavior, Relationships

BUSINESS AND HRM STRATAGY

HUMAN CAPITAL STOCK

(Knowledge, Skill, Ability, Personality, Emotional Labor, Emotional Intelligence, Aesthetic Labor, Experience, Relationships, Education, etc.)

INTERNAL MARKETING

ANTECEDENTS PROCESSES

Exhibit 1: A Basic Model of the Strategic Role of Human Resources for Organizational Performance

Source: Based on Kusluvan (2003b, 39); Wright, Dunford, and Snell (2001, 705).

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consistent patterns of feeling, thinking, and behaving” (Pervin and John 1997, 4). Employee personality seems to be gaining importance as a selection criterion for tourism and hospitality organizations due to its role in employee performance. Employers often use terms such as “good attitudes,” “social skills,” and “personal characteristics” to define the skills requirements for tourism and hospitality employees. Many researchers and indus- try practitioners argue that employee personality influences customer service attitudes and behavior, customer service skills, and overall performance of ser- vice providers, which may be critical for service quality, customer satisfaction, loyalty, and organizational success. Employee personality is assumed to influ- ence organizational performance through its effects on employees’ attitudes, behav- ior, and service performance (Kusluvan 2003b). Accordingly, much empirical research has been carried out on the con- nection between employee personality and employee performance. In the context of the tourism and hospitality industry, G. L. Stewart, Carson, and Cardy (1996) researched the relationship between personality and employee self-directed behavior (desirable internalized behavior that occurs in the absence of formal con- trol) among hotel employees in the south- western United States and found a significant correlation between personal- ity dimensions of conscientiousness, agreeableness, emotional stability, open- ness to experience, and supervisor evalu- ation of employee performance. Another study in the food service industry found significant relationships between person- ality characteristics (especially extrover- sion and agreeableness) and proper customer service behaviors and manager- rated employee performance (Hurley

1998). A similar study carried out in the food-service industry indicated significant correlations between basic personality traits (i.e., emotional stability, conscien- tiousness, agreeability, and the need for activity) and self-rated and supervisor- rated performance ratings of service employees, mediated by customer orien- tation of employees (Brown et al. 2002). Yet another study of restaurant employees in the United States showed that regard- less of the level of service climate and the existence of service-supporting HRM practices, conscientiousness and extro- version had significantly positive relation- ships with employee service performance, whereas neuroticism and agreeableness were not significantly related to employee service performance (Liao and Chuang 2004). Another study interestingly found that sociability, flexibility, result orien- tation, and innovativeness were nega- tively related to employee performance and serving, whereas conscientiousness was positively related to performance (Papadopoulou-Bayliss, Ineson, and Wilkie 2001). That same study found that ambitious (results-oriented, flexible, and innovative) employees were found to not perform well. In addition, as a personality trait, self-efficacy was found to have a strong effect on employee performance and service quality (Hartline and Ferrell 1996). Similarly, personality traits of competitiveness, self-efficacy, and effort are significant predictors of frontline employee performance in the hotel indus- try (Karatepe et al. 2006). Self-efficacy and effort depict significant positive relationships with frontline employees’ job satisfaction (Karatepe et al. 2006). The displayed authenticity of the service provider also enhances friendliness and customer satisfaction in the hotel industry (Grandey et al. 2005).

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At the personal level, personality characteristics that are congruent with providing good service are variously called “service orientation” (Hogan, Hogan, and Busch 1984), “service pre- disposition” (Lee-Ross 2000), or “cus- tomer (service) orientation” (Brown et al. 2002; Saxe and Weitz 1982). Hogan, Hogan, and Busch (1984, 167) defined service orientation as “the disposition to be helpful, thoughtful, considerate, and cooperative.” They suggested that service- oriented people are also self-controlled, dependable, well-adjusted, and likeable, and they have considerable social skill and a willingness to follow rules. Alter- natively, Lee-Ross (2000, 149) defined service predisposition as “personal satis- faction with service provided.” Customer orientation is defined as “employees’ tendency or predisposition to meet cus- tomer needs in an on-the-job context” (Brown et al. 2002, 111). Service provid- ers’ customer orientation was found to be strongly related to customers’ satisfac- tion with service (Susskind, Kacmar, and Borchgrevink 2003). It was also found that customer orientation promotes job satisfaction, commitment, and organiza- tional citizenship behavior in the food industry (Donavan, Brown, and Mowen 2004). In the restaurant industry, customer- oriented behaviors were positively related to customer satisfaction and customer commitment (Donavan and Hocutt 2001). Although service orientation or predis- position is thought of as a personality characteristic, it is argued that cultural values can improve or diminish service predisposition through specific job atti- tudes (Johns, Chan, and Yeung 2003). In summary, these studies suggest that employee personality, coupled with cul- tural values, can be an important deter- minant of employee performance, job

satisfaction, employee commitment, and organizational citizenship behaviors, as well as service quality, customer satisfac- tion, and customer commitment.

Another concept that is closely related to personality characteristics is emotional intelligence. Emotional intelligence “con- sists of the ability to: perceive one’s own and others’ emotions and accurately to express one’s own emotions; facilitate thought and problem solving through the use of emotion; understand the causes of emotion and relationships between emo- tional experiences; and manage one’s own and others’ emotions” (Salovey, Mayer, and Caruso 2002, as quoted in Kernbach and Schutte 2005, 438). Higher emotional intel- ligence of the service provider is associated with greater reported satisfaction with the service transaction in general (Kernbach and Schutte 2005). Furthermore, emotional intelligence is also associated with job satisfaction and job performance (Bachman et al. 2000; Goleman, Boyatzis, and McKee 2002; Prati et al. 2003; Wong and Law 2002). However, the empirical evidence for this is scant in the tourism and hospi- tality industry (Zeidner, Matthews, and Roberts 2004). One exception is a study by Sy, Tram, and O’Hara (2006), who have examined the relationships between employees’ emotional intelligence, their manager’s emotional intelligence, employ- ees’ job satisfaction, and performance for 187 food-service employees from nine different locations of the same restaurant franchise. They found that employees’ emotional intelligence was positively associated with job satisfaction and per- formance. In addition, managers’ emotional intelligence had a more positive correla- tion with job satisfaction for employees with low emotional intelligence than for those with high emotional intelligence (Sy, Tram, and O’Hara 2006).

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Emotional and Aesthetic Labor and Outcomes

It is argued that emotional and aes- thetic labors have increasingly gained currency as required skills for service employees. In the context of work, emo- tional labor (a term coined by Hochshild 1983) has been defined as “the effort, planning, and control needed to express organizationally desired emotions during interpersonal transactions” (Morris and Feldman 1996, 987) or “the act of dis- playing appropriate emotion (i.e., con- forming to a display rule)” (Ashforth and Humphrey 1993, 90). Studies carried out in the tourism industry showed that work- ing in tourism-related industries requires considerable emotional labor (Constanti and Gibbs 2005; Seymour 2000), and displaying this may result in employee burnout (characterized by emotional exhaustion and cynicism) (Anderson, Provis, and Chappel 2001). On the other hand, aesthetic labor is the employee’s capacities and attributes for “looking good” or “sounding right” at the point of entry into employment (Nickson, Warhurst, and Dutton 2005; Warhurst et al. 2000). Employers in the hospitality industry consider aesthetic labor important, and they seek employees who will look good and sound right (Nickson, Warhurst, and Dutton 2004, 2005). Aesthetic labor was found to create a distinct image and pro- vide competitive advantage in the hospi- tality industry (Nickson, Warhurst, and Dutton 2005). Yet there is little empirical evidence of the relationship between employing aesthetic labor and tourism companies’ business performance. Besides, one must consider the ethics of employing people based on their appear- ance, which is the essence of an aesthetic labor approach.

HRM Practices and Outcomes

HRM is concerned with the “design of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals” (Mathis and Jackson 2000, 4). HRM involves a series of activities and decisions relating to manpower planning, job design and analysis, recruitment and selection, orientation, training and devel- opment, team building, compensation and benefits, promotion, motivation, employee involvement and participation, empower- ment, performance appraisals, health and safety, job security, employee and labor relations, and terminations (Biswas and Cassell 1996; Boella 2000; Dessler 2000; Jerris 1999; Mathis and Jackson 2000; Tanke 2001). In recent years, a more strategic approach to HRM has been applied, in which employees are viewed as strategic and valuable assets to be invested in and developed, rather than costs to be controlled. In that regard, a highly committed, capable, empowered, involved, and motivated workforce was seen as the way to competitive advantage and sustained business success (Storey 1995). The alignment of HRM with busi- ness strategy is also advocated within this perspective. For developing committed, capable, satisfied, and motivated employ- ees, authors have alluded to appropriate bundles of HRM practices by various names, including high-involvement prac- tices, flexible production systems, high- commitment systems, high-performance work systems (HPWS), and best HRM practices (Wood 1999a, 1999b). HPWS is defined as “a set of distinct but inter- related HRM practices that together select, develop, retain, and motivate a workforce: (1) that possesses superior abilities; (2) that applies their abilities in their work-related

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activities; and (3) whose work-related activities result in these firms achieving superior intermediate indicators of firm performance and sustainable competitive advantage” (Way 2002, 765-66). High- performance work organizations are characterized by HRM practices such as selective hiring, extensive training, self- managed teams, decentralized decision making, reduced status distinction, infor- mation sharing, performance-based com- pensation, employment security, broad job design, flexible job assignments, employee participation and involvement, internal promotion, employee stock ownership, transformational leadership, and group- based high compensation contingent on performance (e.g., gain sharing, profit sharing) (Guthrie 2001; Pfeffer 1998; Way 2002; Wood 1999a; Zacharatos, Barling, and Iverson 2005).

Two streams of research have examined HRM practices in the tourism and hospi- tality industry. In one stream, a number of studies examined individual HRM practices (Exhibit 2) such as recruitment and selection (Anderson, Provis, and Chappel 2003; Garavan 1997; Ineson 1996; Janes 2004; Martin and Grove 2002), empowerment and involvement (Brymer 1991; Corsun and Enz 1999; Dewald and Sutton 2000; Fulford and Enz 1995; Hales and Klidas 1998; Lashley 1995a, 1995b, 1999, 2000; Sparrowe 1994), leadership and managerial styles (Anastassova and Purcell 1995; Deery and Jago 2001; Hales and Tamangani 1996; Lee-Ross 1993; MacFarlane 1982; Nebel and Stearns 1977; Purcell 1987; Tracey and Hinkin 1994; Worsfold 1989a), performance appraisal (Umbreit 1986, 1987; Umbreit, Eder, and McConnell 1986; Woods, Sciarini, and Breiter 1998), and wages (Lee and Kang 1998).

The other stream comprises a few studies analyzing the state and impact of

various bundles of HRM practices (Exhibit 3). The systems view has emerged as the dominant trend in linking HRM practices to employee, customer, and organizational outcomes.

Both streams of research have concluded that individual or bundles of HRM prac- tices in the tourism and hospitality industry are unprofessional, underdeveloped, and inferior when compared to other industries and are not practiced in a way that gen- erates employee commitment, satisfaction, and motivation (Anastassova and Purcell 1995; Fulford and Enz 1995; Guerrier and Lockwood 1989; Head and Lucas 2004; Hiemstra 1990; International Labor Orga- nization [ILO] 2001; Kelliher and Johnson 1987, 1997; Lucas 1993, 1995, 1996, 2002; Lucas et al. 2004; McGunnigle and Jameson 2000; Nankervis and Debrah 1995; Nolan 2002; Pizam 1999; Price 1994; Taylor and Davies 2004; Timo and Davidson 2005; Wood 1997; Worsfold 1999). For example, there is ample evi- dence that a substantial number of mini- mum wage earners are working in the tourism and hospitality industry, and its organizations pay their employees less on average than do other businesses (Boella 2000; ILO 2001; Woods 1999). An over- whelming majority of studies cited in Exhibits 2 and 3 report little evidence of adoption and implementation of progres- sive, high-performance, or high-involve- ment HRM practices by the industry. In terms of the current state of HRM prac- tices, the only (and partial) evidence of good personnel management and practice are observed in a small number of large, foreign-owned, international chain estab- lishments (Hoque 1999a, 1999b; ILO 2001; Lucas 1996, 2002; McGummigle and Jameson 2000; Price 1994; Worsfold 1999). For this reason, the tourism and hospitality industry has a reputation for poor human resource practices and

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Exhibit 2: Individual Human Resources Management (HRM) Practices and Consequences in the Tourism and Hospitality Industry

Individual HRM Practices Related To . . . Literature

Employee recruitment/ selection

Employee turnover Bonn and Forbringer (1992); Boles, Ross, and Johnson (1995)

Orientation Organizational commitment, job satisfaction, intention to quit

Lundberg and Young (1997)

Training Employee performance, productivity, work quality, customer perception of an organization, intention to remain in the job, morale, perception of supervisor quality, awareness of rules, organizational commitment, occupational status, self-esteem

Buick and Muthu (1997); Conrade, Woods, and Ninemeier (1994); Roehl and Swerdlow (1999); Tracey and Nathan (2002); Washington, Feinstein, and Busser (2003)

Empowerment (including employee participation and involvement)

Employee job satisfaction, employee performance, greater feelings of involvement and importance, service delivery, service quality, competitive advantage, satisfaction with pay and promotion, turnover, improved sales, reduced stock holdings, reduced labor costs, increased labor retention, reduced customer complaints, increased sense of worth, employee morale, teamwork, customer satisfaction, employee relationships

Ashness and Lashley (1995); Fulford and Enz (1995); Lashley (1995a, 2000); Sosteric (1996); Sparrowe (1994)

Leadership/ management styles

Employee satisfaction, openness of communication, mission clarity and role clarity, employee self- efficacy, employee skill utilization, employee performance, organizational commitment, turnover, discretionary service behaviors, customer satisfaction, productivity, effectiveness, job performance, satisfaction, levels of tour quality

Connell (2001); Deery and Jago (2001); Nebel and Stearns (1977); Simons and Roberson (2003); Tracey and Hinkin (1994); Worsfold (1989a)

Performance appraisal

Job performance, employee recognition, retention, compensation, and promotion, training needs

Umbreit (1986, 1987); Umbreit, Eder, and McConnell (1986); Woods, Sciarini, and Breiter (1998)

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Exhibit 3: Bundles of Human Resources Management (HRM) Practices and Consequences in the Tourism and Hospitality Industry

Bundles of HRM Practices Related To . . . Literature

Performance appraisal, remuneration, and training

Improvement in staff relations, improvement in quality, employee commitment, productivity, profitability, reduced employee turnover and costs

Davies, Taylor, and Savery (2001)

Recruitment/selection, training and development, compensation and benefits

Positive service behaviors and service quality

Tsaur and Lin (2004)

Recruitment, selection, orientation and socialization, training, development, performance management and remuneration

Employee turnover Cheng and Brown (1998)

Training, communication, orientation, advancement opportunities, job security, selective selection, participation in decision making

Organizational commitment, job satisfaction, motivation, customer service, pride in working for the company, adoption of company values

Kinicki, Carson, and Bohlander (1992)

Innovative training, strategic recruiting, and provision of a teamwork environment

Service quality Jago and Deery (2002)

Training, communication, empowerment, performance appraisal

Employee satisfaction, guest satisfaction and organizational financial performance

Haynes and Fryer (2000)

Recruitment and selection, terms and conditions, training, job design, pay systems, participation, communication and consultation

Innovation, financial performance, quality of service, market share and labor productivity

Alleyne, Doherty, and Greenidge (2006)

Hiring the right people, developing employees, empowering employees, providing support systems and retaining the best people

Superior service quality Hickman and Mayer (2003; Mayer (2002)

Training, company support, empowerment

Employee interaction with customers and guest satisfaction

King and Garey (1997)

Terms and conditions, recruitment and selection, training, job design, communication and consultation, quality issues, pay systems

Service quality, financial performance and competitive success, innovation, financial performance, market share and labour productivity

Alleyne, Doherty, and Howard (2005); Hoque (1999a, 1999b)

(continued)

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managing people in a traditional and exploitative way. Accordingly, tourism and hospitality firms are described as “bleak houses,” or “ugly” and “bad” establishments in employment terms (Lucas 1996). However, it would be a mistake to disregard the increasing number of tour- ism and hospitality organizations that have highly effective HRM practices, as docu- mented, for example, by Bonn (2003); Dubé et al. (1999); Walsh, Enz, and Siguaw (2003); and Williams and Watts (2002). Certain hospitality firms (e.g., Four Sea- sons, Kimpton Hotels, Marriott Interna- tional, and Starbucks) are listed in “100 best companies to work for” in various business magazines (see Hinkin and Tracey 2010 [this issue]).

Regarding the consequences of such HRM practices, individual and various combinations of HRM practices were related to employee, customer, and organizational outcomes such as turnover, organizational commitment, job satisfaction, service qual- ity, customer satisfaction, and organizational performance. Exhibits 2 and 3 summarize some of the most important examples of such studies.

Internal Marketing and Outcomes

Internal marketing views all employees as customers—including other employees and departments in the organization to whom employees are also internal suppli- ers. The internal marketing approach asserts

Exhibit 3: (continued)

Bundles of HRM Practices Related To . . . Literature

Training, promotional opportunity and job security

Job satisfaction, organizational commitment and employee intention to leave

Jago and Deery (2004)

Information sharing, job analysis internal recruiting, attitude survey, labor-management participation program, incentive plans, grievance procedure, preemployment tests, compensation on job performance, performance appraisal, promotion criteria

Turnover Cho et al. (2006)

Leadership, rewards, career opportunities, performance appraisal, work demands, training

Service culture, employee service behaviors, service quality

Zerbe, Dobni, and Harel (1998)

Employee recognition, respect and reward

Profits, market share and guest satisfaction

Maxwell and Lyle (2002)

Top managements’ vision of a quality culture, communication, employee involvement, job design, teamwork, empowerment, training, measurement of job satisfaction, customer satisfaction and employee performance, selection, promotion, career development, rewards, health and safety programs

Total quality management culture, employee turnover, sales, on time orders, productivity, problem solving ability of personnel, sense of unity, customer satisfaction, employee satisfaction

Partlow (1996)

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that to deliver quality service and satisfy external customers, internal customers should themselves be satisfied and moti- vated. Internal customers should be satis- fied not only with their employment conditions and the organization’s HRM practices but also with the internal services they receive from coworkers during ser- vice delivery. In line with this philosophy, internal marketing is defined as “the appli- cation of marketing, HRM, and allied theo- ries, techniques, and principles to motivate, mobilize, co-opt, and manage employees at all levels of the organization to continu- ously improve the way they serve external customers and each other” (Joseph 1996, 55). Organizational practices espoused by internal marketing are similar to the high- commitment or high-involvement HRM practices explained above.

A growing number of studies confirm gains enjoyed by those adopting employee- friendly internal marketing practices in the tourism-related industries. For exam- ple, Wildes (2005) provided evidence that increasing internal service quality given to restaurant workers resulted in higher employee satisfaction, reduced employee turnover, and an increase in employees’ recommending their jobs to others. Simi- larly, Arnett, Laverie, and McLane (2002) demonstrated that internal marketing strategies in the hotel industry contributed to both job satisfaction and pride in the organization, which both resulted in an increase in positive employee behavior, including good service, cooperation with other employees, and commitment to the organization. In the airline industry, the internal marketing practices of Southwest Airlines were found to be responsible for extremely happy, motivated, and produc- tive employees who contributed to excel- lent customer service, competitive advantage, and organizational performance in terms of profits, market share, safety records, and cost reduction (O’Reilly and

Pfeffer 2000; Pfeffer 1998). These causal relationships led some researchers to develop a model (Exhibit 4) linking inter- nal marketing practice to external market- ing outcomes, mediated by internal customer attitudes and behavior.

Organizational Culture and Climate and Outcomes

Organizational culture and organiza- tional climate are two constructs that are believed to influence employee attitudes, behaviors, performance, and organiza- tional effectiveness. Yet the distinction between organizational culture and orga- nizational climate is neither obvious nor clear-cut. Organizational culture is gener- ally described as the deep structure of “the shared values, attitudes, beliefs, assumptions, and core values of organiza- tion members which influence not only the behavior of members but also the systems created” (Ferris et al. 1998, 240); whereas organizational climate is seen as relatively evanescent, involving changeable perceptions, interpretation, and attributions by employees about the work environment, how an organization operates, and what it sees as important (Ferris et al. 1998; Schneider, Gunnarson, and Niles-Jolly 1994). More specifically, “employees’ perceptions of the events, practices and procedures, as well as their perceptions of the behaviors that are rewarded, supported, and expected, con- stitute the climate of the work setting in an organization” (Lytle, Hom, and Mokwa 1998, 457-58). In general, orga- nizational climate is seen both as one surface-level manifestation of an orga- nization’s culture (Schein 1990) and “an empirical substitute for the richer term culture and a feature of rather than a substitute for culture” (Poole 1985, 84).

In the context of tourism and hospitality organizations, one can rather speak of

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“service culture” and “service climate.” Gronroos (1990, 244) defined service culture as “a culture where an apprecia- tion for good service exists, and where giving good service to internal and, ulti- mately, external customers is considered a natural way of life and one of the most important norms by everyone.” Similarly, service climate is defined as “employees’ perception that (a) practices and proce- dures were in place to facilitate the delivery of excellent service, and (b) management rewarded, supported, and expected excellent service” (Schneider and Bowen 1993, 39).

Many researchers have argued that organizational or service culture and climate directly or indirectly influence employee attitudes and behaviors, which, in turn, have an impact on organizational performance (Denison 1996; Ferris et al. 1998). For this reason, organizational or service culture and climate are seen as precursors of organizational effective- ness. For example, according to the social

context model, the culture of an organiza- tion affects the types of HRM systems and practices that are in place; these systems and practices, in turn, influence employee attitudes and behaviors, either directly or through their effects on cli- mate; and these attitudes and behaviors, in their own turn, influence organizational effectiveness (Exhibit 5). Others argue that HRM practices influence the orga- nizational and service culture, which in turn affects employee attitudes and behav- iors, which, once again, drive organiza- tional performance (Zerbe, Dobni, and Harel 1998).

In the context of tourism and hospital- ity, most research deals with the conse- quences of organizational culture on organizational performance, whether directly or indirectly. Studies carried out in tourism-related industries showed that organizational culture is related to overall organizational effectiveness and perfor- mance (Doran, Haddad, and Chow 2004;

INTERNAL MARKETING EXTERNAL MARKETING

Human Resource Practice

Internal Customer Behaviors

+ + + + +

Employment Security

Extensive Training

Generous Rewards

Sharing Information

Employee Empowerment

Reduced Status Distinctions

Internal Customer Loyalty

Job Satisfaction

Trust in Management

Extra-role Behaviors Directed at External Customers

External Customer Satisfaction

External Customer Loyalty

External Service Quality

Internal Marketing

Exhibit 4: Linking Internal Marketing Activities to External Marketing Outcomes

Source: Bansal, Mendelson, and Sharma (2001, 65).

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Glover 1995; Kemp and Dwyer 2001; LeBlanc and Mill 1995; Tidball 1988, Wilkins and Patterson 1985); profitability and employee commitment (Tidball 1988); employee turnover (Deery and Shaw 1997, 1999; Tidball 1988); employee satisfac- tion and intent to remain (Tepeci and Bartlett 2002; Tepeci 2005); service culture and competitive advantage (Hallowell, Bowen, and Knoop 2002); service giving behaviors of employees (Tidball 1988; Zerbe, Dobni, and Harel 1998); market share, profitability, customer satisfaction, and loyalty (Gray, Matear, and Matheson 2000); commitment to organizational values; guest and employee centeredness; openness to learning and change; team- work; increased creativity; shared goals and values; organizational stability and growth; effective peer relations; employee participation and decentralized decision making; and employee motivation, com- mitment, and role clarity (Kemp and Dwyer 2001). In a similar vein, organi- zational climate predicted service quality, employee turnover, burnout (Vallen 1993), guest satisfaction (King and Garey 1997), intrinsic and extrinsic employee

job satisfaction, positive and negative leader reward behaviors, intention to quit (Jackofsky and Slocum 1988), and cus- tomer satisfaction and financial perfor- mance (Davidson, Manning, and Timo 2001; Davidson and Manning 2004). Other tourism-related studies of organi- zational culture and climate focused on how organizational culture and climate can be measured (Davidson et al. 2001; Deery and Shaw 1997, Kemp and Dwyer 2001; Manning, Davidson, and Manning 2005; Tepeci and Bartlett 2002) or changed and managed (Brownell 1990; Kusluvan and Karamustafa 2003; Mwaura, Sutton, and Roberts 1998; Ogbonna and Harris 2002; Watson and D’Annunzio-Green 1996; Woods 1991).

Business and HRM Strategy

Several researchers have tried to iden- tify a relationship between business and HRM strategy in the tourism and hospi- tality industries. Some studies developed conceptual models or frameworks aimed at understanding and classifying the strategic approach to HRM in the tourism

Organizational Culture

HRM Systems

Organization Climate

Employee Attitudes

Employee Behaviors

Organization Effectiveness

Flexibility

Organizatıon Climate

Exhibit 5: Social Context Model of the Human Resources Management (HRM)–Organization Effectiveness Relationship

Source: Ferris et al. (1998, 238).

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and hospitality industries. In an early, thoughtful study, Lashley and Taylor (1998) explored the relationship between the service operation type adopted by the organization and the style of HRM prac- tices that best fit with it. They proposed four service operation types, based on the degree of standardization and intangibility of services (i.e., professional service, mass service, service factory, and service shop) together with four HRM strategies that fit with the four operational types (i.e., professional style, participative style, involvement style, and command and control style). In hospitality retailing, for instance, they identified that command and control, employee involvement, and employee participation strategies were used in the management of employees (Lashley 1998; Lashley and Taylor 1998). In another important conceptual model, Jolliffe and Farnsworth (2003) developed a theoretical dichotomous model for managing employees strategically in the face of seasonality in tourism. They argued that HRM practices and strategies of businesses would be different depend- ing on whether they embraced seasonality or challenged it (Exhibit 6). This model may be useful for understanding and guiding hospitality HRM practices for core and peripheral staff. In yet another classification of HRM strategies, Hughes (2002) developed a framework for under- standing HRM strategies in the tourism and hospitality industries. She identified the following four types of HRM strategy: traditional HRM, integrative HRM, strate- gic HRM, and universal HRM (Exhibit 7). She argued that empirical research sup- ports universal HRM.

Empirically, Timo (1999) found two labor utilization strategies in the Australian hotel industry, which were influenced by managerial practices, organizational changes, and product market changes. One strategy, the cost minimization

approach, used a flexible and segmented labor market (core and peripheral labor) that enabled hotels to reduce cost and afforded them a competitive edge based on price. In this approach, it was argued that flexible seasonal workers, part-time or on-call employees, students, and vol- unteers could be used for a cost-reduction strategy (Graham and Lennon 2002; Jago and Deery 2002). The other approach, quality enhancement, was a “model of employment relations and competitive advantage driven by a more stable, better skilled and motivated workforce” (Timo 1999, 63). In this analysis, it is argued that the quality initiative and strategy of quality enhancement can be a catalyst for a strategic approach to human resource development (Maxwell, Watson, and Quail 2004). Finding cost reduction to be wide- spread in the industry, Timo (1999) com- mented that this strategy would be difficult to change. Reflecting on the business strategies of cost-reducer, quality- enhancer, and others, some researchers have grouped HRM strategies in the tour- ism and hospitality industry into HRM cost-reducer, HRM quality-enhancer, and HRM others (Alleyne, Doherty, and Greenidge 2006; Alleyne, Doherty, and Howard 2005; Hoque 1999a). In another empirical study, in the hotel industry in Spain, Soriano (2005) found a binding relationship between organizational size and human resource strategy as well as human resource strategy and other func- tional strategies such as marketing and finance.

In terms of the relationship between strategy implementation and HRM, Hartline, Maxham, and McKee (2000) examined the dissemination of a customer- oriented strategy through a management- and employee-initiated control mechanism in the hotel context. They found that customer-oriented strategy could be implemented by the corridors of influence,

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MAY 2010 Cornell Hospitality Quarterly 185

THE HUMAN DIMENSION HUMAN RESOURCES

namely, work group socialization and organizational commitment, formalized organizational structure and behavior- based employee evaluation, and empow- erment of customer contact employees.

Overall, the literature indicated that tour- ism and hospitality organizations rarely adopted a strategic approach to the manage- ment of human resources, and there was

not a clear relationship between the business strategy and the approach to HRM (Hughes 2000; Kelliher and Perrett 2001; Lucas 1995; McGummigle and Jameson 2000; Nankervis and Debrah 1995). For this rea- son, a call for human resource and line managers to take a more influential role in strategic planning and HRM practices was advocated (Tracey and Nathan 2002).

Exhibit 6: Seasonality and Human Resources Management (HRM) Strategy

Embrace Seasonality HRM Practice Challenge Seasonality

Focus on temporary workers students, casual workers; employee retention less important

Staffing Focus on full-time core workforce (supplemented as needed by temporary workers); employee retention valued

Focus on brief orientation and task-specific training

Training and development

Focus on continual training (including cross-training) and employee development

Focus on ability to perform specific tasks; informal appraisal techniques

Performance appraisal

Focus on broader based competencies and task-specific abilities; formal and informal appraisal techniques

Match or lead competitor’s base pay; bonuses based on staying entire season

Compensation Match competitor’s base pay; benefits and merit increases encourage retention; bonuses for staying beyond normal season

Source: Jolliffe and Farnsworth (2003).

Exhibit 7: A Framework of Human Resources Management (HRM) Strategies

HRM Strategy Focus

Traditional HRM

Worker productivity, selection, job design, incentive pay practices

Integrative HRM

Congruency, bundling, or degree of internal fit of HRM practices

Strategic HRM

External fit between and organization’s HRM policies/practices and competitive/business strategy (also named contingency or best-fit model).

Universal HRM

Achieving competitive advantage through the development of a highly committed, competent, and motivated workforce, through the creation of a high-trust culture, high-involvement best practices

Source: Hughes (2002).

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HUMAN RESOURCES THE HUMAN DIMENSION

186 Cornell Hospitality Quarterly MAY 2010

Employee Job Attitudes, Behaviors, and Outcomes

Job attitudes and behaviors that are widely researched in the tourism-related industries are turnover, job satisfaction, motivation, job stress, and organizational commitment. Much research has focused on determining the antecedents and con- sequences of these job attitudes and behaviors. Exhibit 8 summarizes the fac- tors that influence them, their conse- quences, and the relevant literature. Linking with the basic model of strategic role of HR for organizational performance presented in Exhibit 1, these employee attitudes and behaviors denote processes, whereas their consequences refer to out- comes. An examination of Exhibit 8 indicates that antecedents of such job attitudes and behaviors as turnover, job satisfaction, motivation, job stress, and organizational commitment are alike and closely related, and they lead to similar consequences. A closer examination of the factors influencing job attitudes and behaviors shows that the HRM practices of the organization and management, job design, job characteristics, social ecology of the organizational environment, and structure and stability of the tourism and hospitality industries are the major deter- mining factors. An overwhelming majority of studies on job attitudes and behaviors concluded that turnover and job stress are high in the tourism-related industries, whereas job satisfaction, organizational commitment, and motivation are low. The consequences are said to be negative in terms of employee performance, employee retention, service quality, customer sat- isfaction, organizational performance, and competitive advantage (Exhibit 8).

Another group of studies examined overt employee behaviors and their con- sequences. Dobni, Zerbe, and Ritchie (1997) identified a group of desired service

behaviors or behavioral repertoires that are pivotal for job performance in the service industries. These behavioral rep- ertoires form a basis for clarifying service employee roles and providing service according to service quality specifica- tions. Behavioral repertoires (i.e., indus- trial, entrepreneurial, ultrareliable, compromise) identified by Dobni, Zerbe, and Ritchie are useful for developing, guiding, and controlling service behaviors of employees in tourism and hospitality organizations. In a similar study in the restaurant industry, Winsted (2000, 2003) identified a number of overt positive and negative employee behaviors that were highly correlated with customers’ satis- faction with the service encounter. These behaviors were grouped into promptness, courtesy, friendliness, caring, authenticity, personalization, control, and formality. In further analysis of the data, Winstead (2003) expanded the list of dimensions to civility, personalization, remembering, conversation, congeniality, delivery, authenticity, basics, concern, and formal- ity. Winstead (2000, 2003) indicated that these dimensions are highly correlated with customer satisfaction and that the importance of these dimensions could be different in different cultures. Keung (2000) explored hotel employees’ ques- tionable job-related behaviors in Hong Kong from the perspective of tourists and discovered that tourists disliked any infringement of their privacy, unethical employee behavior, and hotel employees disobeying hotel rules and regulations. Finally, a number of studies indicated that service employee behaviors, effort, and performance strongly affected posi- tive customers’ affective responses and satisfaction (Mohr and Bitner 1995; Price, Arnould, and Tierney 1995), service quality and value (Hartline and Jones 1996), and corporate image (Nguyen 2006).

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MAY 2010 Cornell Hospitality Quarterly 187

THE HUMAN DIMENSION HUMAN RESOURCES

E x h

ib it

8 :

A n

te ce

d e n

ts a

n d

C o

n se

q u

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ce s

o f

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r Jo

b A

tt it

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a v io

A tt

it u

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B e h

a v io

rs In

fl u

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ci a b

le w

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c o

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re w

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p e rv

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s; o

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b o

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p la

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ki ll

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)

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HUMAN RESOURCES THE HUMAN DIMENSION

188 Cornell Hospitality Quarterly MAY 2010

E x h

ib it

8 :

(c o

n ti

n u

e d

)

A tt

it u

d e s/

B e h

a v io

rs In

fl u

e n

ce d

B y

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e la

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T o

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e le

v a n

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tu re

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p lo

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m a n

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g c

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io n

s; p

o o

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a n

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ri se

s; t

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n m

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( 2 0

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b e rs

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ss ki

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( 2 0

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a ld

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19 8 9 );

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o (

19 9 6 ,

19 9 9 );

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a n

( 2 0

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a ll

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( 19

9 3 );

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n e r

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u th

a n

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a v is

( 19

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); W

o o

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a n

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a ca

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(1 9 9 8 );

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u (

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ti sf

a ct

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n d

b e n

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ts ;

re w

a rd

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p lo

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lv e m

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t; r

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le c

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t; r

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a ri

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p o

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fo r

p ro

m o

ti o

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n d

c a re

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t; n

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v e rl

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n ch

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g a

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m e a n

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le ss

w o

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p lo

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u p

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s ty

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rk i

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lv e m

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jo b

s e cu

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p o

w e rm

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t; e

m p

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ct io

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a n

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re e r

m a n

a g

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p e rf

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a n

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v a lu

a ti

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p e rv

is o

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ci a l

su p

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so ci

a l

su p

p o

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co h

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rg a n

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rv ic

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u tu

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lo n

w o

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g h

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s ch

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a n

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m it

m e n

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m u

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a ti

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st o

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sa ti

sf a ct

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st o

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fo cu

jo b

p e rf

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tu rn

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p o

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a in

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, L a v e ri

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a n

d M

cL a n

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a x w

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9 9 8 );

C h

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19 9 5 );

D ie

n h

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a n

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re g

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19 9 3 );

D o

n a v a n

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ro w

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a n

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in st

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a n

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a rt

li n

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( 19

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e rs

o n

a n

d D

e e ry

( 19

9 7 );

ck o

fs k y a

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cu m

( 19

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a ra

te p

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t a l.

( 2 0

0 3 );

K o

kk o

a n

d G

u e rr

ie r

(1 9 9 4 );

K u

sl u

v a n

a n

d K

u sl

u v a n

( 2 0

0 5 );

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0 0 3 );

L a m

, B

a u

m ,

a n

d P

in e

(2 0

01 );

L a m

, Z

h a n

g ,

a n

d B

a u

(2 0

01 );

M il

m a n

a n

d R

ic ci

0 0 4 );

P a v e si

c a n

d B

ry m

e r

(1 9 9 0 );

R o

ss a

n d

B o

le s

(1 9 9 4 );

(c o

n ti

n u

e d

)

at US DEPARTMENT OF JUSTICE on August 25, 2013cqx.sagepub.comDownloaded from

http://cqx.sagepub.com/

MAY 2010 Cornell Hospitality Quarterly 189

THE HUMAN DIMENSION HUMAN RESOURCES

E x h

ib it

8 :

(c o

n ti

n u

e d

)

A tt

it u

d e s/

B e h

a v io

rs In

fl u

e n

ce d

B y

. .

. R

e la

te d

T o

. .

. R

e le

v a n

t L it

e ra

tu re

st re

ss ;

d e m

a n

d in

g s

u p

e rv

is o

rs a

n d

d u

ti e s;

w o

rk -

fa m

il y c

o n

fl ic

t; q

u a li ty

o f

li fe

; u

n so

ci a l

w o

rk in

h o

u rs

; co

m p

a n

y p

o li ti

cs ;

la b

o r

sh o

rt a g

e s;

e m

p lo

y e e

m o

ti v a ti

o n

; u

n m

e t

e m

p lo

y e e e

x p

e ct

a ti

o n

s; c

o w

o rk

e r

a tt

it u

d e s;

c o

m m

u n

ic a ti

o n

w it

h m

a n

a g

e rs

a n

d w

it h

-w o

rk e rs

; d

e m

o g

ra p

h ic

v a ri

a b

le s

su ch

a s

a g

e ,

te n

u re

, a n

d e

d u

ca ti

o n

; co

n g

ru e n

ce o

f n

a ti

o n

a l

cu lt

u re

o f

m a n

a g

e rs

a n

d e

m p

lo y e e s

S a rk

e r,

C ro

ss m

a n

, a n

C h

in m

e te

e p

it u

ck (

2 0

0 3 );

u ss

ki n

d e

t a l.

( 2 0

0 0 );

S p

in e ll

i a n

d C

a n

a v o

s (2

0 0

0 );

S w

e rd

lo w

a n

d R

o e h

l (2

0 0 3 );

T a s,

p a ld

in g

, a n

d G

e tt

y (

19 8 9 );

p e ci

a n

d B

a rt

le tt

( 2 0

0 2 );

p e ci

( 2 0

0 5 );

T e st

a ,

S ka

ru p

p a ,

a n

d P

ie tr

za k

(1 9 9 8 );

T e st

(2 0

0 2 )

W o

m o

ti v a ti

o n

P a y,

r e sp

e ct

, jo

b s

e cu

ri ty

, b

e in

g a

p a rt

o f

o rg

a n

iz a ti

o n

, e m

p lo

y e e r

e co

g n

it io

n a

n d

a p

p re

ci a ti

o n

f o

r a cc

o m

p li sh

m e n

ts ,

ta ct

fu l

d is

ci p

li n

e ,

jo b

s e cu

ri ty

, in

te re

st in

g w

o rk

, fe

e li n

g o

f b

e in

g “

in o

n t

h in

g s, ”

sy m

p a th

e ti

c h

e lp

w it

h p

e rs

o n

a l

p ro

b le

m s,

p p

o rt

u n

it ie

s fo

r a d

v a n

ce m

e n

t a n

d d

e v e lo

p m

e n

w o

rk in

g c

o n

d it

io n

s, p

e rs

o n

a l

lo y a lt

y t

o e

m p

lo y e e s,

la ti

o n

sh ip

w it

h s

u p

e rv

is o

rs ,

b o

n u

s, d

e m

o g

ra p

h ic

ct o

rs ,

re w

a rd

s, w

o rk

e n

v ir

o n

m e n

t, t

h e w

o rk

i ts

e lf

, p

e rs

o n

a li ty

t ra

it s,

j o

b d

e si

g n

, g

a in

s h

a ri

n g

, b

e h

a v io

r m

o d

if ic

a ti

o n

t e

ch n

iq u

e s,

l e a d

e rs

h ip

b e h

a v io

rs ,

e m

p lo

y e e g

ro u

p c

o h

e si

v e n

e ss

, lo

n g

w o

rk in

g h

o u

rs ,

n ig

h ts

a n

d w

e e

ke n

d s

ch e d

u le

, st

re ss

, d

e m

a n

d in

su p

e rv

is o

rs a

n d

d u

ti e s,

t im

e f

o r

fa m

il y a

n d

s o

ci a l

a ct

iv it

ie s,

q u

a li

ty o

f li fe

, ro

u ti

n e ,

co m

p a n

y p

o li ti

cs ,

m a n

a g

e m

e n

t, l

a b

o r

sh o

rt a g

e s,

d e -m

o ti

v a te

e m

p lo

y e e s,

p o

o r

co w

o rk

e r

a tt

it u

d e s

a n

d b

e h

a v io

S e rv

ic e q

u a li ty

, o

rg a n

iz a ti

o n

a l

p e rf

o rm

a n

ce ,

e m

p lo

y e e

a cc

u ra

cy a

n d

m e li n

e ss

, im

p ro

v e d

e m

p lo

y e e

p e rf

o rm

a n

B a rt

ku s,

H a rt

m a n

, a n

d P

a re

n t

(1 9 9 4 );

B a rt

ku s

a n

d H

o w

e ll

9 9 9 );

C h

a rl

e s

a n

d M

a rs

h a ll

9 9 2 );

D a rd

e r

(1 9 9 4 );

H a y s

a n

H il

l (2

0 01

); H

e lm

ri ch

, S

a w

in ,

a n

d C

a rs

ru d

( 19

8 6 );

H e n

ry e

t a l.

( 2 0

0 4 );

L a F le

u r

a n

d H

y te

(1 9 9 5 );

L e e -R

o ss

a n

d J

o h

n s

(1 9 9 5 );

L e e -R

o ss

( 19

9 8 );

e u

d e ll

a n

d R

o d

h a m

( 19

9 8 );

a v e si

c a n

d B

ry m

e r

(1 9 9 0 );

o ss

( 19

9 4 );

S im

o n

s a n

d E

n z

(1 9 9 5 );

S im

o n

s (2

0 0 3 );

S iu

, T

sa n

g ,

a n

d W

o n

g (

19 9 7 );

e a v e r

(1 9 8 8 );

W e ls

h ,

B e rn

st e in

, a n

d L

u th

a n

s (1

9 9 2 );

o n

g ,

S iu

, a n

d T

sa n

g (

19 9 9 )

(c o

n ti

n u

e d

)

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http://cqx.sagepub.com/

HUMAN RESOURCES THE HUMAN DIMENSION

190 Cornell Hospitality Quarterly MAY 2010

E x h

ib it

8 :

(c o

n ti

n u

e d

)

A tt

it u

d e s/

B e h

a v io

rs In

fl u

e n

ce d

B y

. .

. R

e la

te d

T o

. .

. R

e le

v a n

t L it

e ra

tu re

Jo b

s tr

e ss

W o

rk lo

a d

, p

o li

ti cs

i n

t h

e w

o rk

p la

ce ,

m is

u se

o f

ti m

b y

o th

e r

p e

o p

le ,

b e

in g

u n

d e

rv a

lu e

d ,

re co

g n

it io

a n

d a

p p

re ci

a ti

o n

o f

e m

p lo

y e

e s,

c a

re e

r a

n d

ro m

o ti

o n

o p

p o

rt u

n it

ie s,

s u

p e

rv is

o r

a tt

it u

d e

s a

n d

e h

a v

io rs

t o

w a

rd s

e m

p lo

y e

e s

(g u

id a

n ce

, co

m m

u n

ic a

ti o

n ,

p re

ss u

re s,

f a

v o

ri ti

sm ),

m m

u n

ic a

ti o

n p

ra ct

ic e

s o

f m

a n

a g

e m

e n

t, s

ta ff

o rt

a g

e s,

m a

n a

g e

m e

n t

st y

le ,

tu rn

o v

e r,

j u

st ic

e ,

tr u

st ,

jo b

s e

cu ri

ty ,

o rg

a n

iz a

ti o

n a

l cu

lt u

re ,

o rg

a n

iz a

ti o

n a

l st

ru ct

u re

, m

a n

a g

e m

e n

t’s c

o n

ce rn

v e

r e

m p

lo y

e e

s’ f

a m

il y -r

e la

te d

p ro

b le

m s,

i rr

e g

u la

r w

o rk

in g

h o

u rs

a n

d s

h if

ts ,

in a

d e

q u

a te

t o

o ls

a n

e q

u ip

m e

n t,

l o

n g

w o

rk in

g h

o u

rs ,

ro le

c o

n fl

ic t,

r o

a m

b ig

u it

y, p

a rt

ic ip

a ti

o n

i n

d e

ci si

o n

m a

ki n

g ,

co n

su lt

a ti

o n

a n

d c

o m

m u

n ic

a ti

o n

, p

a y

a n

co m

p e

n sa

ti o

n ,

in a

d e

q u

a te

f e

e d

b a

ck ,

w o

ro u

ti n

iz a

ti o

n ,

jo b

a u

to n

o m

y, i

n te

rp e

rs o

n a

l re

la ti

o n

sh ip

s w

it h

c o

w o

rk e

rs ,

u n

p le

a sa

n t

a n

a rr

o g

a n

t co

w o

rk e

rs ,

u n

h e

a lt

h y

w o

rk in

g c

o n

d it

io n

p e

rf o

rm a

n ce

e v

a lu

a ti

o n

, b

o ri

n g

j o

b s,

c o

n st

a n

t in

te ra

ct io

n w

it h

o th

e r

p e

o p

le ,

d if

fi cu

lt -t

o -p

le a

g u

e st

s, t

o o

m a

n y

c h

a n

g e

s, l

a ck

o f

ti m

e f

o r

fa m

il y

a n

d s

o ci

a l

a ct

iv it

ie s,

l im

it e

d h

o li

d a

y s,

m e

e ti

n g

h ig

cu st

o m

e r

e x

p e

ct a

ti o

n s,

w o

rk p

la ce

c o

m m

u n

ic a

ti o

E m

p lo

y e e

p e rf

o rm

a n

ce ,

p h

y si

ca l

a n

p sy

ch o

lo g

ic a l

w e ll -b

e in

g ,

tu rn

o v e r,

j o

st ra

in ,

a b

se n

te e is

m ,

p ro

d u

ct iv

it y,

j o

sa ti

sf a ct

io n

, si

d a y s,

o n

-t h

e -j

o b

a cc

id e n

ts ,

e m

p lo

y e e

m o

ra le

, jo

sa ti

sf a ct

io n

B ir

d ir

, T e p

e ci

, a n

d S

a ld

a m

(2 0

0 3 );

B ry

m e r

(1 9 8 4 );

B ry

m e r,

e rr

e w

e ,

a n

d J

o h

n s

(1 9 9 1 );

u lk

n e r

a n

d P

a ti

a r

(1 9 9 7 );

L a w

, P

e a rc

e ,

a n

d W

o o

d s

(1 9 9 5 );

y e rs

( 19

9 1 );

R e y n

o ld

s a n

Ta b

a cc

h i

(1 9 9 3 );

R o

ss (

19 9 3 ,

19 9 5 ,

19 9 7,

2 0

0 5 );

S a ld

a m

(1 9 9 9 );

T o

p a lo

g lu

a n

d T

u n

(1 9 9 8 );

Z o

h a r

(1 9 9 4 );

Z o

h a r

a n

M o

n a ch

e ll

o (

19 9 6 )

O rg

a n

iz a ti

o n

a l

co m

m it

m e n

t C

o m

p e

n sa

ti o

n ,

sa ti

sf a

ct io

n w

it h

o rg

a n

iz a

ti o

n a

l p

o li

ci e

s, w

o rk

c o

n d

it io

n s,

a d

v a

n ce

m e

n t

a n

d c

a re

e r

Jo b

i n

v o

lv e m

e n

se rv

ic e

F e

in st

e in

a n

d V

o n

d ra

se k

(2 0

01 );

a w

ki n

s a

n d

L e

e (

19 9

0 );

(c o

n ti

n u

e d

)

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MAY 2010 Cornell Hospitality Quarterly 191

THE HUMAN DIMENSION HUMAN RESOURCES

E x h

ib it

8 :

(c o

n ti

n u

e d

)

A tt

it u

d e s/

B e h

a v io

rs In

fl u

e n

ce d

B y

. .

. R

e la

te d

T o

. .

. R

e le

v a n

t L it

e ra

tu re

d e

v e

lo p

m e

n t,

u n

io n

l o

y a

lt y,

j o

b s

a ti

sf a

ct io

n ,

m e

n to

rs h

ip ,

su b

je ct

iv e

n o

rm ,

th e

j o

b i

ts e

lf ,

H R

p ra

ct ic

e s,

i n

te rp

e rs

o n

a l

a n

d p

ro ce

d u

ra l

ju st

ic e

, m

a n

a g

e rs

’ b

e h

a v

io ra

l in

te g

ri ty

, su

p e

rv is

io n

, tr

a in

in g

, m

o ra

le ,

cu st

o m

e r

co n

ta ct

, le

a d

e rs

h ip

e h

a v

io rs

, e

m p

lo y

e e

g ro

u p

c o

h e

si v

e n

e ss

, p

e rc

e iv

e d

o rg

a n

iz a

ti o

n a

l su

p p

o rt

, u

n m

e t

e x

p e

ct a

ti o

n s,

u n

ch a

ll e

n g

in g

a n

d m

e a

n in

g le

ss w

o rk

, co

m m

u n

ic a

ti o

n w

it h

m a

n a

g e

rs ,

co m

m u

n ic

a ti

o n

it h

c o

w o

rk e

o ri

e n

ta ti

o n

, in

te n

ti o

n t

o q

u it

, tu

rn o

v e r,

is cr

e ti

o n

a ry

rv ic

b e h

a v io

rs ,

g u

e st

ti sf

a ct

io n

Iv e

rs o

n a

n d

D e

e ry

( 19

9 7

);

K in

ic ki

, C

a rs

o n

, a

n d

o h

la n

d e

r (1

9 9

2 );

L a

L o

p a

(1 9

9 7

); L

a m

( 2

0 0

3 );

L a

m ,

L o

, a

n d

C h

a n

( 2

0 0

2 );

M cG

u n

n ig

a n

d J

a m

e so

n (

2 0

0 0

); M

u rr

a y,

re g

o ir

e ,

a n

d D

o w

n e

y (

19 9

0 );

o e

h l

a n

d S

w e

rd lo

w (

19 9

9 );

u ss

ki n

d e

t a

l. (

2 0

0 0

);

S im

o n

s a

n d

R o

b e

rs o

n (

2 0

0 3

);

Y o

u (

19 9

8 )

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HUMAN RESOURCES THE HUMAN DIMENSION

192 Cornell Hospitality Quarterly MAY 2010

Other Issues

In addition to these main perspectives, other issues found in the literature that have implications for managing employee performance are staff and skill shortages and difficulty of attracting and retaining personnel; the need to train employees in new communication and information technologies, HIV/AIDS issues, and secu- rity issues; employment law and minimum wages; cross-cultural awareness of opera- tional staff; managing a diverse and mul- ticultural workforce; low prestige and status of tourism and hospitality jobs; aging population and advantages and dis- advantages of older workers; recognition of tourism and hospitality diplomas inter- nationally; mobility of workers internation- ally; and restrictive government policies. (Farrell 2001; ILO 2001; Magd 2003; OECD 2003; Powell and Wood 1999).

Emerging Issues from the Literature

Looking at emerging issues and trends, most noticeable are the contradictions and gaps between theoretical proposi- tions, empirical findings, and the realities of people management in the industry. Both theoretical approaches and empirical studies state that human resources and effective HRM are essential and that employee performance is associated with service quality, customer satisfaction, competitive advantage, and organizational performance; however, people manage- ment practices and employment condi- tions of many sectors and organizations of the tourism and hospitality industry do not seem to reflect the importance of effective HRM. Accordingly, the contri- bution of HRM to organizational perfor- mance is undervalued in comparison to other business functional areas (Umbreit and Sweeney 1995). Due to the poor state

of HRM practices prevalent in the indus- try, some researchers have questioned the role of employees as the most important determinant of service quality, customer satisfaction, and organizational perfor- mance (Johns and Lee-Ross 1997; Losekoot, Wezel, and Wood 2001; Nickson et al. 2002; Ostrowski, O’Brien, and Gordon 1994). As a result, we see a need to explain the contrasts between academic studies, theoretical models, managers’ explanations of the role of employees, and the realities and state of people management in the industry. We see one or more of following factors as possible sources of this contra- diction: the pool of low-skilled and easily replaceable employees; the existence of a large, unemployed labor pool; deficient methodology of studies; the competitive pressure on organizations; lack of union- ization; unprofessional managers and owners; hypocrisy of managers and own- ers; high costs and small profit margins; unstable and insufficient demand; stark necessities of the structure and conditions of the industry such as seasonality and small and medium size organizations; and a low cost–low price business strategy. More conceptual models, theories, and empirical studies are required to explain the gap between words and deeds as well as that between theories, models, empiri- cal research, and reality.

A second emerging issue relates to the conceptual developments in the selection of the right employees for tourism and hospitality organizations. Recently, employee personality, service orientation, emotional labor, emotional intelligence, and aesthetic labor are gaining importance as selection criteria for tourism and hos- pitality employees. Although some prog- ress has been made in regard to the right qualities and characteristics of employees to be employed in the industry, more research is needed to define the personality

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MAY 2010 Cornell Hospitality Quarterly 193

THE HUMAN DIMENSION HUMAN RESOURCES

traits and emotional and aesthetic qualities of prospective employees as well as how these traits and qualities actually affect employee, customer, and organizational outcomes and whether such people are willing to work in and have vocational commitment to the industry, given the often poor employment conditions. It is yet to be seen whether tourism and hos- pitality organizations will embrace the use of personality tests. Tourism and hospitality industries have a reputation for selecting employees intuitively (or opportunistically) and not adopting even established practices such as structured interviews and cognitive ability tests (Anastassova and Purcell 1995; Hoque 1999b; Ineson and Kempa 1997; McGum- migle and Jameson 2000; Rowley and Purcell 2001).

The third issue that requires further con- ceptual development is in the area of the best bundles of HRM or high-performance work practices. Although many research- ers have looked at various combinations of HRM practices and their consequences, no consensus exists on the most appropri- ate bundles of HRM practices that create the desired consequences in terms of employee, customer, and organizational outcomes (Warech and Tracey 2004). In this respect, researchers in tourism and hospitality can benefit from progress made in general and strategic management and organization science literature. A related issue concerns the methodology of such studies. Almost all of the studies on HRM practices are based on data received from subjective perceptions of managers or department heads. It is possible that man- agers’ responses on the issue may be distorted due to a social desirability effect. Advanced measurement should be applied for more objective data, and the views of employees and customers should also be taken into consideration in such studies

(see vol. 53 of Personnel Psychology). It is important to note that before search- ing for best bundles of HRM practices, researchers need to develop considerably more basic knowledge of effective HRM practices and how to get managers to adopt those good practices.

The fourth issue requiring further study relates to the testing of the theoretical models of HRM practices developed in the strategic management literature. We see three different modes of theorizing in the field (Delery and Doty 1996; Ferris et al. 1999). The universalistic approach to HRM posits that there are certain “best” HRM practices that will contribute to increased organizational performance regardless of the industry or organiza- tional strategy (Ferris et al. 1999). Accord- ing to this view, all organizations should adopt these best practices (Delery and Doty 1996). In contrast, the contingency perspective argues that HRM practices of an organization should be congruent with an organization’s strategy and its competi- tive and strategic position. Finally, the configurational approach suggests that an organization’s HRM practices should be in line not only with its strategy, charac- teristics, and competitive position (vertical or external fit) but also be internally con- sistent and complementary (horizontal or internal fit). Thus, this perspective assumes that “there are certain, specific systems of HRM practices that result in the highest internal consistency and complementarity, as well as congruence with organizational goals. The configuration of practices that provides the tightest horizontal and vertical fit with any given strategy, then, would be the ideal type for an organization pur- suing that particular strategy” (Ferris et al. 1999, 391). Here again the onus is on tour- ism researchers to test these theoretical approaches in different organizations in terms of size and strategy, as well as

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different subsectors of the tourism indus- try, and link them with organizational performance outcomes.

The final issue emerging in the indus- try’s employee management literature is the confusion in the definition and opera- tionalization of constructs such as HRM practices, internal marketing, and orga- nizational culture and climate. A closer examination reveals that the domains, dimensions, and items used to measure these constructs are similar. For example, rewards, training, management style, job security, supervisor or leader support, style and facilitation, role conflict, role ambiguity, job variety, challenge and autonomy, coworker support, and friendli- ness are all used in the measurement of internal marketing, organizational culture, organizational climate, and HRM prac- tices (Deery and Shaw 1999; Manning, Davidson, and Manning 2004). Research- ers seem to be studying similar phenom- ena but labeling them differently. We need to distinguish these constructs from each other or make it clear that they are actually referring to the same thing.

Implications for Practical Management

The complexity of the tourism and hospitality industries and their employ- ment structures complicate the matter of determining the implications of research relating to them. These industries’ employ- ment, workforce, and labor market char- acteristics make the management of people difficult and different from many other industries (see Exhibit 9). Even using the umbrella terms tourism and hospitality, we note the vast number of interrelated and complementary busi- nesses and the variety of products and organizations of various sizes. As a result, it is impossible to prescribe a single set of HRM practices for all organizations

or employees in the hospitality and tour- ism industries. With those caveats in mind, we offer the following general guidelines for hospitality and tourism employee management.

Be Selective in Staffing

Tourism and hospitality organizations should benefit from more selective staff- ing to ensure essential personality traits and the ability to provide emotional labor, emotional intelligence, and aesthetic labor. Some people, by natural disposition, seem to be more comfortable and happy in jobs that demand constant interpersonal relations. Beyond that, research indicates that important personality traits include conscientiousness, agreeableness, emo- tional stability, openness to experience, extroversion, empathy, self-efficacy, authenticity, the need for activity, self- control, and adjustment. The literature offers a number of instruments or scales for measuring service orientation (Alge et al. 2002, Baydoun, Rose, and Emperado 2001; Brown et al. 2002; Donavan, Brown, and Mowen 2004; Groves 1992; Hogan, Hogan, and Busch 1984; Kim, McCahon, and Miller 2003; Lee-Ross 2000; McBride, Mendoza, and Carraher 1997; Sirakaya, Kerstetter, and Mount 1999). In addition to personality tests, we have already sug- gested the use of such established and valid practices as structured interviews and cognitive ability tests. Career aspira- tions, expectations, and education and other demographic variables of employees may also be important in selecting the right employees. For example, older workers may be more tolerant, emotionally mature, and sympathetic with guests, while younger employees may be more energetic. Cer- tainly, no age group has a monopoly on charm. Researchers have concluded that women generally understand people’s

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feelings better than men do (Constanti and Gibbs 2005). Although the industry needs energetic people, overqualified individuals with unrealistic expectations, ambitions, growth need, and career aspi- rations may be disappointed with employ- ment conditions and may easily become

turnover statistics. In choosing which employee characteristics are of the great- est utility, managers should hire people who fit with the organization’s values, core competencies, and business strate- gies. In summary, effective employee selection can be facilitated by attention

Exhibit 9: Characteristics of Employment, Workforce, and Labor Markets in the Tourism and Hospitality Industry

Labor-intensive industry (high-touch industry) High levels of labor turnover Unskilled and semiskilled nature of most jobs Labor and skill shortages experienced in the industry Existence of dual labor markets with core and peripheral workforce High proportion of seasonal, part-time, and on-call workforce Low levels of employee productivity Weak internal labor markets High proportion of nonnationals (ethnic minorities, immigrants), students, and

illegal labor in the industry High proportion of employees with low-level education and skills High proportion of younger employees Higher percentage of employees with a second job High proportion of self-employment Very heterogeneous labor market Gendered nature of employment (high proportion of female employees who are

generally in the lower levels of the occupational structure in the industry) Low status of employment (poor image of employment in the industry) Most employment in small and medium-sized organizations Low level of unionization The transferability of the skills of employees within tourism and other sectors of

the economy Employment of marginal and disadvantaged labor (a high proportion of child,

disadvantaged, migrant workers, and “misfits”) Poor conditions of employment and human resource management practices

(unprofessional employee recruitment and selection; limited orientation and training; limited opportunity for career development and promotion; low pay and benefits; absence of overtime payments; low job security; absence of employee empowerment and participation; “hierarchical,” “autocratic,” and harsh styles of supervisors and management; routine and monotonous jobs; harassment and bullying; low job security and stability; limited career management and prospects; long, irregular, and unsocial hours of work; family- unfriendly work shifts; no or unprofessional employee performance appraisal; poor physical work conditions for employees use; demanding managers and supervisors; poor coworker attitudes; night and weekend schedules; heavy workload and stress; high rates of work-related injuries, work-related illness, and violence; labor shortages; lack of time for family; and low quality of life)

Source: International Labor Organization (2001); Kusluvan (2003a); Nickson et al. (2002); OECD (2003).

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to service orientation, emotional intel- ligence, and cognitive ability tests; role- playing during job preview; past experience in selling or customer service roles; struc- tured interviews; realistic job previews; employee referrals; inclusion of guests in selection; examination of bio data; career expectations; and demographic variables.

Provide Orientation and Training

Proper selection is only the beginning of the process of developing superior employee performance. Orientation and training are essential so that employees become acquainted with their work roles; job-related tasks; and organizational val- ues, beliefs, and social norms. Addition- ally, new employees desire to be welcomed socially. A study of newcomer socializa- tion in the tourism and hospitality industry found that employees valued “elements of being appreciated, recognized, and praised; and being made to feel part of the family or team” (Young 2003, 307; see also Lundberg and Young 1997). Proper orientation and periodic training can provide such ben- efits as superior employee performance, employee productivity, commitment and job satisfaction, role clarity, intention to remain in the organization, and service quality. The literature provides solid guide- lines and coverage of effective orientation and socialization (Young 2003) and train- ing programs, tactics, and strategies (Janes 2003). Notably, since tourism is an inter- national activity and many employees are from different cultures and ethnic origins, cultural differences of various customer and employee groups should be considered during orientation and training.

Offer Competitive and Fair Pay and Benefits

The low pay and poor benefits com- monly found in hospitality and tourism

operations are among the most important causes of low job satisfaction, low motiva- tion, and low organizational commitment and job involvement—all of which drive high employee turnover. Meager com- pensation often conveys the message that employees’ efforts and contributions are little valued. Together with a physical and emotional workload, hospitality employ- ees face perceptions of low social status and prestige, along with poor employment conditions and unsocial and irregular working hours. We suggest that hospitality employees’ compensation should be more generous to balance their unfavorable employment conditions. This means that pay and benefits should be based on job evaluation, seniority, education and train- ing, positions held, and above all, employee effort and performance. Performance- based incentives and benefits are often an important tool for influencing employee performance and can take many forms, including monetary incentives and non- monetary incentives and benefits. (For various types of incentives and benefits, see Boella 2000; Lucas 1995; Riley 1996; Ohlin and West 1994; Sturman 2006; Themduangkhae 2002; Woods 1997.)

Practice More Friendly and Humane Supervision and Management Style

Inappropriate management style is also a pervasive feature of the tourism and hospitality industry. Researchers agree that the tourism and hospitality industry is characterized by hierarchical and auto- cratic styles of management, variously expressed as directive, arbitrary, pater- nalistic, impulsive, unpredictable, ama- teur, and despotic (Kusluvan 2003a). Poor management style is often attributed to unprofessional or unqualified managers and “unbridled individualism,” character- ized by a high level of management pre- rogative due to the lack of a strong internal

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labor market and unionized labor force (Lucas 1996). Researchers have identified such management issues as poor com- munication and rapport; insensitivity to employees’ wants, needs, problems, and culture; insufficient career and work guid- ance; injustice; inability to involve and guide employees; uncaring, unsupportive, rude, disrespectful attitudes, and behaviors towards employees; and lack of apprecia- tion of the work done by employees. To remedy such managerial deficiencies, organizations must hire and develop lead- ers who can create commitment, trust, success, and a motivating work environ- ment. Department heads should be trained about the wants and needs of the employ- ees, and their managerial skills should be developed. In short, there is a need for more humane and people-oriented manag- ers in the industry.

Consider Job Characteristics and Job Redesign

Job design refers to “the process of defin- ing job tasks and the work arrangements to accomplish them” (Schermerhorn, Hunt, and Osborn 2005, 146). One of the most influential job design theories, the job characteristics model, argues that skill and task variety, task identity, task significance, job autonomy, and feedback from the job produce three psychological states in employees, namely, experience of the meaningfulness of the work, expe- rience of the responsibility for outcomes of the work, and knowledge of the actual results of the work activities. In turn, these psychological states collectively influence motivation, satisfaction, and work per- formance (Hackman and Oldham 1980). Others argue that other job features do this for employees, including opportunity for skill use; social contact; learning and personal control; externally generated goals (job or task demands, workload,

work pressure, role conflict, role ambigu- ity, family–work conflict, and role respon- sibility); physical security; valued social position; cognitive, physical, and emo- tional demands; surveillance and supervi- sion; environmental clarity (role clarity, task feedback, and absence of job inse- curity); and income level (Warr 2002).

To state the obvious, many tourism and hospitality jobs can be dull, routine, low- skilled, and low-status. Numerous studies propose ways to design work so that it is meaningful. Practices such as job rotation, job enlargement (increasing task or skill variety by adding new tasks of similar nature), job enrichment (increasing job content by giving workers decision-making responsibility and autonomy), semiau- tonomous work groups, and self-managing teams can be used where applicable. Parker (2002) argues that job rotation and job enlargement can make work more inter- esting and alleviate some of the physical strain and boredom, as can job enrichment and autonomous work groups. Needless to say, individual differences may modify the approach taken to job design, so jobs should be designed to match jobs with employees’ characteristics, needs, and tal- ents. Work simplification may be the best way to motivate and satisfy some employ- ees, whereas others could be happy with highly enriched and autonomous jobs.

Involve and Empower Employees

The tourism and hospitality literature has so far indicated that managers in the tourism and hospitality industry do not use a participatory decision-making and management style, leaning instead toward autocratic, authoritarian, and command and control based supervision (Deery and Jago 2001; Okumus 2003). It is no secret that such a nonparticipatory managerial style is not the best way to gain employee commitment, satisfaction, or performance.

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Employee involvement and empowerment techniques can be used to conquer the hearts and minds of employees and help generate employee commitment, satisfac- tion, and performance. Lashley (2003) introduces a number of participative, consultative, and commitment forms for involving and empowering employees. Participative forms include autonomous work groups and job enrichment; consul- tative forms consist of quality circles and team briefings; and commitment forms cover some high-performance or high- commitment work approaches such as high and fair pay, careful selection and recruitment, training and development, good and fair performance review, open and good communication between man- agement and employees, and treating employees with dignity, fairness, and respect. Other writers have pointed out empowerment initiatives such as self- esteem and communications training, open-door policies, self-directed work teams, cross-training, task forces, manage- ment by walking around, employee sur- veys, sensing groups, information sharing, delegation strategies, involving employ- ees in identifying causes of poor service quality, encouraging and rewarding employees for suggestions and innovative ideas, and empowering employees to respond to guest needs (Enz and Siguaw 2000; Hughes 2003). Employee involve- ment and empowerment techniques can increase employee satisfaction, self-worth, commitment performance, and service quality, while they decrease employee turnover and labor costs (Enz and Siguaw 2000; Hughes 2003; Lashley 2003).

Recognize, Respect, and Reward Employees

Although all workers seek recognition and respect, it seems that tourism and

hospitality employees seek even greater levels of accolades than those in other industries. We note numerous studies showing that tourism and hospitality employees complain about being under- valued; unappreciated; and not recognized, respected, or rewarded on par with their efforts. Certainly one reason for this is the low status or low prestige typically accorded to hospitality and tourism jobs (Kusluvan 2003a). We see that employ- ment conditions and HRM practices are a second source of employees’ weak esteem. Undoubtedly, these two factors influence and reinforce each other. Con- sequently, anything that enhances employ- ees’ self-esteem and conveys the idea that they are appreciated, valued, recognized, and respected will increase their satisfac- tion, commitment, and performance. The literature suggests that this will be accom- plished by some or all of the following: measuring and rewarding achievements and service performance; paying high and fair wages; increasing employee skills and competence through training and development; internal promotion; open communication with employees; involving and empowering employees; participatory managerial style; treating employees with respect, dignity, and politeness; organi- zational fairness and support; fulfilling employees’ needs and acting in their best interest; valuing employee contributions; providing job autonomy; forming autono- mous work groups; recognition programs and incentive rewards for achievements; providing adequate resources for doing jobs; supervisor and coworker support; and social activities to develop work group cohesion (Cyr 1992; McAllister and Bigley 2002; Newstrom, Gardner, and Pierce 1999). Managers and supervisors have a special role in recognizing and respect- ing employees. As Cyr (1992, 1) noted, “Error-probing questions, the criticism of

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subordinates in the presence of peers, the display of an attitude of superiority when speaking with clerical staff, and fault- finding in major projects are some of the verbal affronts to self-esteem. Belittling the assigned tasks of employees, holding grudges that are reflective of disapproval of specific employees, and the uneven distribution of work are among the actions which supervisors must guard against. The failure of supervisors to listen, to commend employees on a job well done, and to seek the input of qualified person- nel are also damaging to the employees’ self-esteem.”

Reduce Job (Work Role) Stress

Job stress or work-role variables influ- ence employees’ job satisfaction, work performance, and turnover. Job stress “exists when an employee is unable to fulfil the demands of his or her job” (Price 1997, 499). While some stress may stimu- late people to perform at higher levels, chronic stress can cause health problems, loss of productivity, accidents, absentee- ism, and turnover (O’Driscoll and Cooper 2002). Intrinsic job characteristics, haz- ardous work, role conflict, role ambiguity, heavy workload, resource inadequacy, interrole (work-family) conflict, job inse- curity, interpersonal relationships at work, lack of career development, and organi- zational structure and climate are the major stress variables (O’Driscoll and Cooper 2002; Price 1997). For hospitality employees, job characteristics, interper- sonal relationships (managerial style and support and coworker cohesion and sup- port), role conflict, role ambiguity, heavy workload, job insecurity, work-family conflict, and lack of career development are the main stressors. With regard to role conflict and ambiguity, employees are often torn among the demands of the

management and organization, customers, and their own personal responsibilities. To mitigate such stress, employees’ roles should be clearly defined, and they should be empowered to decide when acceding to customers’ wishes overrides the guide- lines of the supervisor or organization. Work overload can be reduced by remedy- ing staff shortages, employing extra personnel during high-demand periods, and reducing long and irregular working hours. Ensuring job security is challeng- ing, due to the seasonal and unstable nature of hospitality demand. Still, man- agers can seek to forge long-term employ- ment relationships for productive, talented core staff who want to make a career in the industry. The core staff can be comple- mented with students, part-time workers, or on-call employees during the high season, provided that they are effectively trained to do their jobs. Likewise, the industry’s irregular and long working hours often interfere with employees’ nonwork responsibilities. The stress from this conflict can be mitigated by family- friendly policies, such as on-site day care, child-care and elder-care referrals, flexible hours, compressed workweeks, job shar- ing, convenient and flexible work sched- uling, and allowing child-care leave and career breaks. Finally, career guidance and growth opportunities can reduce employees’ stress and encourage their retention. The idea of career ladders is attractive in theory, but the fact is too many people would be chasing too few high-level positions. While big and chain organizations may have some opportunity to offer job rotation and internal promo- tions for their talented employees, it may be impossible for small and medium-size independent firms to provide such career opportunities. For smaller firms, the best strategy is to be realistic in terms of hiring and promotion.

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Improve the Conditions of Employee Accommodation

Many tourism and hospitality organiza- tions, especially those that operate seasonal resorts, provide food and accommodation for their employees. A number of studies have shown that such physical facilities for, and services given to, employees may occur in de-motivating conditions and may contribute to job dissatisfaction and turn- over (Kozak and Akoglan 1995; Kusluvan and Kusluvan 2000). In fact, poor physical conditions of employee dormitories, dining halls, and bathrooms may convey the idea that employees are not valued or cared for. To prevent such misconceptions, physical facilities and services for employees should be improved.

Create a Culture Conducive to Organizational Performance

Organizational culture can be a critical influence on employee performance, service quality, customer satisfaction and loyalty, and organizational performance. We do not accept the assertion by some researchers that, due to the high labor turnover and poor employment conditions and HRM practices, it is impossible to create an organizational culture that sup- ports success (Iverson and Deery 1997; Ogbonna and Harris 2002). Instead, we note that examination of highly success- ful service firms shows that organization- wide cultural values can be modeled and cultivated by strong leadership (Berry 1999). Berry (1999) identified the fol- lowing success-sustaining values in high- performance service companies: excellence, innovation, joy, respect, teamwork, integ- rity, and social profit. Two models suggest how tourism and hospitality organiza- tions can create an organizational culture conducive to success. The first model,

developed by Kusluvan and Karamustafa (2003), begins with an organization-wide cultural audit (Exhibit 10). If the current culture is not consistent with organiza- tional missions, objectives, and strategies, then management must seek to embed new values, attitudes, and behaviors. If the prevalent culture is in line with organiza- tional missions, objectives, and strategies, then the current culture is strengthened. This can be accomplished through human resource practices; organizational symbols, stories, ceremonies, and language; leader- ship and role models; and organizational structure and design. The second model, developed by Gross and Shichman (1987), stresses the development of a sense of history, the creation of a sense of oneness, the promotion of a sense of membership, and increasing exchange among members through various practices (Exhibit 11). In summary, tourism and hospitality organi- zations need to cultivate an organizational service-oriented culture in which a set of relatively long-term organizational activi- ties and practices are designed to create, support, deliver, and reward excellent service (Lytle, Hom, and Mokwa 1998).

Provide Strong Leadership and Vision

Strong and effective leadership, which is paramount for tourism and hospitality organizations, is also related to perfor- mance, employee satisfaction and turn- over, and organizational productivity and success (Gillet and Morda 2003). Leaders should develop a vision of the organiza- tion’s future that embraces values, goals, and strategies that employees can under- stand, support, and believe in. The leader must communicate the vision and inspire employees to realize the vision (Gillet and Morda 2003). In addition to articulat- ing a vision, hospitality and tourism leaders should have interpersonal and

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communication skills, flexibility, a strong personal value system, transformational leadership qualities, the ability to listen, a capacity to trust others and to inspire trust in others, a willingness to persevere, effective communication skills, determi- nation, hard work, behavioral integrity (congruency between words and deeds), loyalty, and a caring attitude towards employees (Bond 1998; Brownell 1994; Cichy, Sciarini, and Patton 1992, Cichy and Schmidgall 1996; Gillet and Morda 2003; Greger and Peterson 2000; Simons 1999; Tracey and Hinkin 1994; Worsfold 1989b). Leaders should set achievable goals for employees and provide clearly defined roles, means, and rewards to achieve these goals. As Berry (1999, 237) succinctly puts it, “Leaders articulate the company’s reason for being, define the meaning of organizational success, live

the company’s values in their daily behav- ior, cultivate the leadership qualities of others in the organization, assert core values during difficult times, continuously challenge the status quo, and encourage employee’s hearts with caring, involve- ment, participation, opportunity, fairness, and recognition.”

Design and Implement an HR and Workforce Balanced Scorecard

The balanced scorecard is a manage- ment tool that provides a framework to measure facets of organizational perfor- mance and integrate and translate business strategy into action (Kaplan and Norton 1996, 2000). Although researchers cited various benefits from applying a balanced scorecard (Huckestein and Duboff 1999; Denton and White 2000), there seems to

Exhibit 10: A Framework for Managing Organizational Culture in Tourism and Hospitality Organizations

Current culture is not aligned with organizational missions, objectives and strategies.

Current culture is aligned with organizational missions, objectives and strategies.

Define new values, attitudes and behaviors that are critical for organizational success.

Strengthen the current culture of the organization.

Cultivate desired values, attitudes and behaviors through: • Human resource management practices, • Organizational symbols, stories, ceremonies and language, • Leadership and role models, • Organization structure and design.

Assessing Current Organizational Culture (Cultural Audit)

Source: Kusluvan and Karamustafa (2003, 474).

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be minimal appreciation and application of the HR-oriented component of the original balanced scorecard approach as regards learning and growth (Maltz, Shenhar, and Reilly 2003; McPhail, Her- ington, and Guilding 2008). However, the application of the balanced scorecard concepts and techniques to HR functions and workforce management and measure- ment provides useful models or frame- works to evaluate the contribution of the HR function and the workforce to orga- nizational performance. For example, one can develop an HR scorecard to capture the effectiveness HR function and its contribution to a business’s success and competitive advantage (Becker, Huselid, and Ulrich 2001; Beatty, Huselid, and Schneier 2003; Walker and MacDonald 2001), whereas a workforce scorecard identifies and measures the behaviors,

competencies, mindset, and culture required for workforce success and reveals how that workforce success affects the organizational bottom line (Becker, Huselid, and Ulrich 2001; Huselid, Becker, and Beatty 2005). Hospitality organiza- tions have used and realized the benefits of the scorecard approach to manage and measure HR function and workforce suc- cess (Bhatnagar, Puri, and Jha 2004). For tourism and hospitality organizations, the HR and workforce scorecards offer an important strategic tool to evaluate the contribution of the HR function and the workforce to strategy implementation and organizational performance and to tie the compensation system to employee perfor- mance and efficiency of HR function.

In the final analysis, the role of HRM is to contribute to the implementation of business strategy, business objectives,

METHODS INTERVENING CONDITIONS

OUTCOME

• Elaborate on history • Communications about and by

“heroes”

• Member contact • Participative decision making • Intergroup coordination • Personal exchange

• Leadership and role modelling • Communicating norms and

values

• Reward systems • Career management and job

security • Recruiting and staffing • Socialization of new staff

members

Develop a sense of History

Create a sense of Oneness

Promote a sense of Membership

Increase Exchange among members

Cohesive organizational

culture

Exhibit 11: Methods for Growing an Organizational Culture

Source: Gross and Shichman (1987, 54).

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and performance of a tourism or hospital- ity organization. Although the HRM best practices that we discussed here may be demanded by employees and are advo- cated in the HRM literature, the interests of the organization will prevail over those of the employees (Hammonds 2005). Given the differences among the many tourism and hospitality organizations, no single approach to HRM practices can be prescribed. Instead, HRM practices should be tailored to different tourism and hospitality organizations and even to different employees within the same organization (Hammonds 2005). The real challenge for HRM is to ensure and dem- onstrate that an organization’s human capital is contributing to strategy imple- mentation, business objectives, and orga- nizational performance in important and measurable ways and that compensation systems give the greatest rewards to those who contribute most to the bottom line.

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Salih Kusluvan, Ph.D., is a professor and dean at the Faculty of Commerce and Tourism Education at the University of Nevsehir, Turkey ([email protected]), where Zeynep Kusluvan, Ph.D., is an asso- ciate professor ([email protected]), Ibrahim Ilhan, Ph.D., is an assistant professor (ibrahim@ nevsehir.edu.tr), and Lutfi Buyruk, Ph.D., is an assistant professor ([email protected]). We are grateful to Glenn Withiam, who skillfully edited and vastly improved the original manuscript.

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2010 24: 449Work Employment Society Angela Knox

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‘Lost in translation’: an analysis of temporary work agency employment in hotels

�� Angela Knox University of Sydney, Australia

ABSTRACT

Temporary work continues to stimulate research and debate in many developed countries. This research provides contemporary data on temporary work agency employment in the Australian hotel industry. Findings reveal that an absence of regulation governing the temporary work agency industry in conjunction with strong migrant labour supply and extremely active agency-client firm interactions has entrenched TWA employment and restructured the labour market in a coer- cive fashion.

KEY WORDS

hospitality / hotels / migrant labour / temporary work agency regulation/ temporary workers

Introduction

M ost simply, a temporary worker is one who earns financial rewards from work established by an employer or contract for a limited duration. Focusing on temporary work agency (TWA) labour, its use varies widely

among developed countries (Forde and Slater, 2006; OECD, 2002). For exam- ple, in Germany TWA employment has increased but remains modest, account- ing for approximately 1.4 percent of total employment (Jahn, 2005, cited in Mitlacher, 2007), in the UK it accounts for around 2.1 percent (Storrie, 2003) and in the USA it accounts for 2.6 percent of total employment (Mitlacher, 2007). The highest rates of agency work, measured as a percentage of total employ- ment, exist in the Netherlands (4%), Luxembourg (3.5%) and Australia (3%) (Curtain, 2004).

449

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Through the 1990s temporary employment accounted for approximately 71.4 percent of Australia’s net growth in employment and temporary agency workers are estimated to have grown from around 84,300 in 1998 to 274,180 in 2002, representing around three percent of the workforce (Campbell and Burgess, 2001; Hall, 2006). Yet, there is a paucity of research examining such employment. Focusing on recent tensions in the literature, this article seeks to examine TWA employment in the Australian hotel industry. Around half of all hospitality jobs are temporary and TWAs are a persistent and increasingly embedded feature of the industry, representing approximately 3 percent of employment (Freidin et al., 2002). This article analyses the interplay between regulation, TWAs and client firms in order to rectify a hitherto poor under- standing of the relationship between these parties. It begins by examining the extant literature on the TWA industry before discussing the significance of the Australian regulatory framework and the hospitality/hotel industry, highlight- ing its reliance on temporary work, including TWA employment. The methods and findings are then described. Finally, the findings are discussed in view of the pre-existing literature and conclusions are drawn out.

Temporary work and temporary work agencies

Given that recent literature highlights the importance of examining national contexts and the inherent variations in TWA characteristics between nations (Coe et al., 2009; Peck and Theodore, 2002), Australia provides a valuable set- ting for further TWA research. The significance of national settings is related to the unique regulatory frameworks within nation states. Research suggests that the interface between regulation at the labour market and TWA industry levels affects the size, internal structure and rates of growth of the TWA industry as well as its implications for both the broader labour market and the economy (Bergstrom, 2005; Bergstrom and Storrie, 2003). Accordingly, Peck and Theodore (2002) contend that TWAs can only be understood within the context of the complex set of employment relations and regulations that exist on a country- by-country basis.

Similarly, Mitlacher (2007) has emphasised the importance of regulation in determining employers’ use of TWA staff, arguing that different levels of regu- lation affect employers’ decisions to use TWAs. Strict dismissal protection laws, for example, may increase TWA demand as employers attempt to avoid such regulation. Coexisting with this regulation, Storrie (2003) highlights two means of directly regulating TWA employment: labour law regulations pertaining to the employment relationship as well as the assignment at the client firm (possibly in conjunction with collective agreements); and business (agency)-based regula- tions pertaining to the licensing and monitoring of TWA operations.

In the UK for example, legislation to govern the conduct of employment agencies and prevent less favourable treatment of fixed-term employees – Fixed- term Employees (Prevention of Less Favourable Treatment) Regulations and

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Conduct of Employment Agencies and Employment Businesses Regulations – was introduced to protect temporary workers and to lower the barriers related to their transition into permanent employment, which are often associated with transfer fees (Biggs et al., 2006). Although the UK government is resisting com- pliance with the EU directives regarding temporary employment, the existing regulation is arguably benefiting 25,000 to 50,000 employees (Biggs et al., 2006).

In contrast, Coe et al. (2009) analysed the significance of Sweden’s regula- tory characteristics and concluded that ‘[i]n the case of Sweden, widespread col- lective agreement coverage and high levels of social protection mean that the structure and shape of the temporary staffing industry differs markedly from the industries in the UK and USA’ (2009: 74). Swedish labour laws provide sig- nificant protection to all workers, including agency workers. Moreover, collec- tive agreements cover the entire TWA industry, guaranteeing that workers are paid at least 80 percent of the monthly wage, regardless of frequency of assign- ments (Storrie, 2003). Collective agreements also cover most TWA employees in Germany as a result of equal pay rules introduced recently (Mitlacher, 2007).

Other research reveals that the level of regulation that exists may be affected by TWAs themselves. As opposed to functioning as passive actors simply pro- viding labour, Coe et al. (2009) and Peck and Theodore (2002) reported that TWAs are active intermediaries in the wider processes of employment restruc- turing and labour market regulation, actually functioning as ‘agents of deregu- lation’ (Peck and Theodore, 2002: 151) in the USA. Others have similarly highlighted the role that TWAs play in, for instance, shaping patterns of employment through their ability to manage job matching effectively (Kirkpatrick and Hoque, 2006).

Far less has been revealed regarding the potential role that client firms may play in the structure and function of the TWA industry. While it has been sug- gested, based on American data from the 1990s, that employer strategies within client firms may affect the quality of TWA employees’ experiences (Kalleberg, 2003), more specific analyses of whether clients might also have a role in the wider processes of employment restructuring and regulation seem largely absent. In a notable exception, Mitlacher (2007) illustrates how TWA employment is used by clients to avoid and thereby get around strict labour laws in Germany and to a lesser extent in the USA. The extent to which client firms may play a more active and/or coercive role requires further analysis.

At the same time, Mitlacher (2007) concludes that employers would make greater use of TWAs if client specifications could be achieved more effectively. According to Mitlacher, labour supply and job matching problems may be cre- ating a natural barrier to the development of TWAs ‘as a more permanent and embedded feature of industrial relations systems’ (2007: 601). Conversely, McDowell et al.’s (2008) qualitative analysis of TWA employment in a London hotel and hospital suggests that migrant labour recruited and assembled on a global scale is contributing to local employment solutions, the likes of which may lead to more entrenched usage of TWAs. Whether this strategy is merely a localised response as opposed to a more extensive trend remains unknown.

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In a country with one of the highest rates of TWA employment and as an industry with an equally strong reliance on TWAs, the Australian hotel sector can reveal significant insights regarding the factors involved in further embed- ding TWA employment and highlight emerging trends in the recruitment and assembly of TWA labour, including its reliance upon migrants. In Australia, the nature of relations between key institutions and how they may operate remains unknown. The existing research focuses on examining supply and demand issues related to the TWA industry, while neglecting to analyse the interplay between the regulatory environment, the TWA industry and client firms.

In general, the growth of temporary forms of work in Australia, including agency-based work, can be explained by similar factors to those identified else- where. TWA employees are deployed to achieve the following: enhanced numerical flexibility; reduced costs; simplified recruitment and selection pro- cesses; greater access to specific skills; and/or to ease risk management and other administrative issues (e.g. Brennan et al., 2003; Hall, 2000; Houseman, 2001). Others have suggested that workers are willingly supplying their labour on a temporary basis because it affords certain benefits, namely flexibility and variety (RSCA, 2004). However, Hall (2006) reveals that the supply-based argument underpinning the growth of temporary agency workers is misguided: ‘[w]hile agency workers in Australia are a very diverse group, spanning all occupational levels across all industries, they do, on average, exhibit the char- acteristics of marginal, peripheral workers’ (2006: 171).

In addition to these findings, other research illustrates the importance of the regulatory environment and TWAs in creating and perpetuating such out- comes. This research aims to develop a deeper understanding of the content and complexity of relations between the regulatory framework, client firms and the TWA industry. The next sections outline the context of this research, focusing first on the regulatory environment and then the luxury hotel sector.

Australian TWAs and the regulatory environment

According to the Australian Bureau of Statistics (ABS), the employment services sector, dominated by TWAs, includes over 2700 firms, generating over Aus$10bn and contributing around 1.3 percent to GDP (ABS, 2003). Estimating its activity, the ABS (2003) reported that the TWA industry made over 3.3 million place- ments in the year to June 2002. The industry tends to be dominated by a large number of small agencies, the majority having four or fewer employees, oper- ating in over 5000 locations; less than two percent have more than 100 employ- ees. The industry is highly competitive with an average profit margin of three percent (ABS, 2003). The reliance on agency workers in Australia is spread across every industry and occupation, though it is more common among lower skilled occupations (Freidin et al., 2002; Hall, 2006).

Specific agency-based regulation at the national level does not exist in Australia. Regulations that do exist operate within individual states, confined

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to the licensing of TWAs and involving an application process. There are no limitations on the occupations/industries in which TWAs may operate, the number of hires that can occur or the length of the labour hire, and there are no reporting obligations (Underhill, 2006). In the past, trade unions sought to impose limits on the use of TWA employment through clauses in collective agreements but recent regulatory changes made it illegal for federal collective agreements to place such limitations on the use of TWA employment (Fudge, 2006). In 2005 a federal government inquiry into TWA practices recommended the development of a code of self-regulation by the industry, yet this recom- mendation has not been pursued (Underhill, 2006).

The regulation of TWAs remains largely confined to the award system despite the fact that this system is in decline. Australia’s industrial relations framework was traditionally centralised, based on compulsory conciliation and arbitration leading to the formation of industry level awards specifying legally enforceable minimum rates of pay and conditions of employment (Bray et al., 2009). However, a series of government policy shifts since the 1990s, focused on increasing flexibility and competitiveness through re-regulation, have decen- tralised bargaining through the introduction of enterprise and individual level agreements and downgraded the award system such that it mainly provides a safety net for low paid workers. Whereas awards and collective agreements once covered the majority of workers (78% in 1990), coverage declined to around 23 percent by 2000 as enterprise and individual bargaining increased (Bray et al., 2009).

Curiously, award-based regulation continues to dominate (covering 61% of workers) within the hospitality industry (see Knox, 2009). It is therefore unsurprising that all of the case hotels and their TWA employees are covered by the relevant federal award (The Hospitality Industry – Hotels, Accommodation, Resorts and Gaming Award 1998). The award classifies temporary workers as ‘casual’ employees and specifies that casual employees are not entitled to paid holiday or sick leave and have no expectation of ongoing employment. Casuals are engaged to work by the hour and the lack of ongoing employment and leave entitlements is compensated by a 25 percent pay ‘loading’. In the context of this study, casual workers can be employed directly by the hotel employer or they can be engaged to work at the hotel through a TWA. Significantly, the award neither distinguishes between these two types of workers nor provides any specific protections to TWA employees.

The Australian hotel industry

Around 70 percent of Australia’s GDP derives from the service sector. Within services, the hospitality sector, including hotels, is an expanding and influential segment. In 2004, the hospitality sector employed in excess of 345,000 workers across Australia (ABS, 2006). Approximately 21.3 percent of these hospitality workers were employed in accommodation, while the remainder was employed

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in cafes and restaurants (43.9%) and the club, pub, tavern and bar sector (34.8%) (ABS, 2006). Data from the ABS indicate that licensed hotels are the most significant category of accommodation with respect to employment and financial takings and the larger businesses in the industry are responsible for employing the most significant proportion of the hotel workforce. Much of this employment is accounted for by large hotel chains (ABS, 2005).

Research in the hotel industry highlights distinctive characteristics, includ- ing its non-standard and often continuous (24 hours per day, seven days per week) hours of operation, seasonal and unpredictable patterns of customer demand and the existence of penalty rates requiring elevated payments for work during non-standard hours, which traditionally led employers to rely on cost minimisation strategies and secondary labour (Timo and Davidson, 2005). It is estimated that almost half of all employees working in the hospitality industry are employed on a non-permanent basis (Van Barneveld, 2006: 156). Moreover, hospitality is the lowest paid industry in Australia, paying just over half (Aus$431.50) of the average weekly earnings that would be paid to an all industries worker (Aus$823.00) (ABS, 2006). It is perhaps unsurprising to find that the industry experiences high rates of absenteeism, turnover and grievance activity (Knox and Nickson, 2007; Knox and Walsh, 2005).

While the hospitality industry is generally characterised as weakly unionised (7.2% compared to the all industries average of 22.4%) (ABS, 2006), rates are often higher in large workplaces (up to 37%) (Knox and Walsh, 2005). Employment regulation in the industry has traditionally relied on the award system, supplemented by managerial prerogative (Timo and Davidson, 2005). The award system does not prohibit employers from paying discretionary over- award payments (above minimum wages) to employees, though most do not (ABS, 2005).

Methods and data

The research design is case study-based, involving qualitative methods. In addi- tion, quantitative, performance-related data were collected whenever possible. All hotel sites are based in Sydney, Australia and each belongs to an interna- tional hotel chain. Sites were selected on the basis of market segment. All of the case study sites are large upper market (five-star) hotels; this segment encom- passes the firms most inclined to utilise TWAs because of the hotels’ size.

In three of the hotels the General, Human Resource and Housekeeping Managers were interviewed, as well as Housekeeping Supervisors and four to six Room Attendants; selected in a representative manner by the Housekeeping Manager. The Room Attendants range in age from 22 to 55 years, all are female except one and all were born overseas except one. Interviews with Room Attendants were not possible at Hotel 4. Nevertheless, the data from this hotel are valuable because they include those individuals responsible for decisions involving the use of TWAs within the hotel. In total, 35 interviews were con- ducted (see Table 1).

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455‘Lost in translation’ Knox

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In addition, the Director and a Senior Manager of the TWA supplying staff to two of the upper market hotels were interviewed. All interviews were semi- structured and focused on examining the use of temporary employment within the hotels’ housekeeping departments as well as the employment characteristics and preferences of the hotel room cleaners: ‘Room Attendants’. The research focused on housekeeping departments in order to allow comparisons between hotel sites while also providing the opportunity to increase depth of under- standing regarding temporary employment in this segment of the industry.

Each interview lasted approximately 90 minutes. Semi-structured interviews were most appropriate because they involve a line of questioning around partic- ular themes while also allowing the parties to discuss additional issues that may arise. This approach enables the interviewer to elicit the interviewee’s viewpoints more effectively than a standardised interview (Flick, 1998). The main themes of questioning related to: product market and business strategy; employment/labour utilisation strategies; training/development; pay/benefits; employee demograph- ics; and the relationship between the hotel and the TWA. Quantitative data on performance and employment figures were also collected from management, though this data was patchy in instances due to commercial confidentiality and/or incomplete or out of date records. The data were content analysed in order to identify common themes and to draw out trends across the sample.

Case study findings

Hotel product markets and business strategies

All of the case study sites are positioned in the luxury hotel sector. They pro- vide superior quality service with an extensive range of facilities throughout the hotel and rooms (see Table 1). Each case hotel adheres to the brand standards of its chain and as five-star properties their service standards are high and mon- itored regularly through key performance indicators, reviews and audits. Hotel managers suggested that they are required to maintain a delicate balance between provision of service quality and cost minimisation; an ongoing chal- lenge described by one manager as ‘something that we have to monitor con- stantly to find the right balance between providing a five-star experience at a competitive price while also turning a profit’ (Hotel 4). All of the hotels had annual occupancy rates above 75 percent, though there were variations throughout the year in line with tourist seasons and special events.

Employment and labour utilisation strategies

Although full-time employment dominated all housekeeping departments, it frequently consisted of a combination of permanent and temporary staff. The temporary staff could be employed directly (casual staff) or hired through a TWA (TWA staff). Within the hotels, varying proportions of permanent, casual

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and TWA staff were deployed (see Table 1). A combination of permanent, casual and/or TWA staff enabled managers to align their staffing levels with fluctuations in demand cost effectively. Permanent full-time employees possess regular guaranteed working hours, while casual employees’ working hours can be more irregular and are not guaranteed. TWA staff are often engaged to work up to 38 hours per week at a hotel but their hours are subject to change, fluc- tuating in accordance with demand patterns. In addition, managers would deploy TWA or casual staff in order to avoid overtime among permanent full-timers, though paid overtime was offered to permanent workers occasionally. Consequently, housekeeping managers’ reliance on TWA staff varied across the hotels.

TWA staff made up 80 and 30 percent, respectively, of housekeeping employment in two hotels (Hotel 1 and 2), a third hotel had completely out- sourced its housekeeping operations to a TWA (Hotel 3) and the fourth hotel used TWA staff more sparingly (Hotel 4). The decision to outsource house- keeping at Hotel 3 was the result of cost minimisation and the closure of the hotel while renovations were completed. The closure meant that pre-existing room attendants were offered redundancies and upon re-opening, it was con- sidered more cost effective to outsource housekeeping. A similarly strong dependence on TWA employment at Hotel 1 was said to be the result of com- pany policy, reflecting a desire for cost minimisation and flexibility. In compar- ison, management at Hotels 2 and 4 expressed a preference for maintaining a greater proportion of in-house room attendants, to maintain quality standards, though they still relied on TWA employment to manage sudden fluctuations in occupancy and/or to cover staff absences and periods of leave. Overall, TWA employment had become a permanent and embedded feature of each of the hotels’ operations. Indeed, TWA employment had become increasingly impor- tant among the upper market hotels and the proportion of permanent staff employed directly by the hotels (in-house staff) was said to have declined over recent years.

There were several reasons for managers’ increased reliance on TWAs. First, TWA staff provided substantial numerical flexibility, thereby offering potential labour cost savings. While the cost savings were not as great as they had been in past years, as TWA costs had increased (with TWAs increasing their fee schedules), some managers suggested that longer-term savings were still pos- sible, though others debated this. Second, the costs associated with recruitment and selection and training of new staff were not incurred if TWA staff were hired as the TWA bears this responsibility. Third, TWAs enabled hotel man- agers to avoid worker’s compensation claims, usually related to back strain and other injuries often suffered by housekeepers, which could be litigious and expensive. Finally, the ability to attach a finite cost to labour was enhanced through the use of TWAs and managers indicated that costing is advantageous as it simplifies budgeting.

While there were advantages associated with using TWAs, there were also disadvantages. Managers indicated that it was more difficult to maintain high

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quality standards. Poor experience and/or inefficiency were associated with many TWA staff due to their inadequate training by the TWA, compromising standards. Additionally, both managers and staff highlighted that there were divisions between the hotel’s in-house staff and TWA staff, which affected morale. A room attendant contracted to work at Hotel 3 by her TWA stated that ‘the other staff working [directly] for the hotel treat you differently, you are singled out a bit. They look at you differently and there is a bit of a divide’. The Deputy Housekeeper at Hotel 1 also noted this issue, even though all efforts were being made to avoid such problems. Divisions may contribute to the higher rates of turnover associated with TWA staff. At Hotel 3, it was also noted by managers and some TWA staff that training and development oppor- tunities were not provided to TWA staff. The Executive Housekeeper at Hotel 3 stated that:

The downside [of outsourcing to a TWA] is that turnover is probably higher than it would be if we had our own in-house staff and we can’t take advantage of training and developing the staff like we might like to. There are a few staff in particular that are very good and I would really like to develop them further, their skills are not being fully utilised. They could go a long way but I can’t take advantage of that for obvious reasons.

Furthermore, these staff cannot access the self-development and leadership programs run by the hotel chain or attend its ‘University’. Moreover, a TWA Supervisor working at Hotel 3 indicated that:

My job is much more repetitive now than it ever has been before [working directly for a hotel], all I do is check rooms. I used to go into the office with other supervi- sors and the managers and do other things. Sometimes I would fill in for the Assistant or Executive Housekeeper but that never happens now. There isn’t any extra training either and there isn’t anyone to organise things that can be used to motivate staff.

A room attendant at Hotel 3 stated: ‘everyone is replaceable in an agency, I think, so if there is a problem they just replace the person rather than helping and developing them’.

Training and development

At all of the hotels, new room attendants are trained on the job and then part- nered up with a ‘buddy’ (an experienced worker) during their first week. New staff then work alone, cleaning a reduced quota of rooms, with their quota increasing incrementally until it reaches the full quota. Beyond this basic train- ing, there is additional training focusing on the ‘brand standards’ of the hotel chain, as well as ad hoc training regarding quality customer service. Where TWA staff are used, they are trained by the TWA itself, in accordance with the brand standards of the hotel chain. Subsequently, the hotels are supplied with their own ‘exclusive’ TWA staff. The effectiveness of training provided by the TWA is questionable, however, as discussed later.

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Among full-time and casual staff employed directly, opportunities for career progression within housekeeping and other hotel departments are available with formalised training programs and structured career paths offered by all hotels. Despite such options, the majority of room attendants indicated that they were not interested in advancement or transfers to other parts of the hotel. At Hotel 4 for example, the human resources manager indicated that ‘it is really very hard to convince the room attendants to progress, they are just happy with their current jobs and they don’t want to change’. Most room attendants highlighted that all other areas of the hotel relied on rotating rosters, often involving evening work, which did not suit them: ‘Housekeeping is the only part of the hotel that offers fixed shifts and you don’t have to work nights … I don’t want to work nights and I like having regular shifts’ (room attendant, Hotel 2). Many room attendants have domestic responsibilities and childcare commitments that would be difficult to fulfil if their working time was more irregular or involved evening work. Additionally, many room attendants indi- cated that they did not want extra responsibilities or work pressures and/or they lacked the confidence to progress into other jobs or higher positions.

Ironically, the room attendants who might be best able to take advantage of career progression opportunities, as they tended to be younger, better edu- cated and childless, were unable to do so because they were employed by a TWA and could not access the hotel’s developmental opportunities/career struc- ture. From the TWA’s perspective, the sooner their employees are able to clean rooms the better, as they are not productive unless they are cleaning, generating an income stream for the TWA. Subsequently, training is minimised and there are few opportunities for career advancement within the TWAs.

Pay and benefits

Room attendants received award-based rates of pay. The basic rate of pay is Aus$14.18 and Aus$17.72 per hour for permanent and casual staff, respec- tively. These rates compare to a minimum wage of Aus$13.74 set by the Australian Fair Pay Commission in July 2007. Overtime rates of pay apply as stipulated in the award though overtime is infrequently deployed at the hotels examined. Although managers suggested that award-based rates of pay are received by permanent, casual and TWA staff at all of the hotels, some staff indicated that the use of room quotas could impact upon pay. For instance, a TWA employee stated that:

Staff working full time have a 7.6 hour shift per day but they are paid by the number of rooms that they complete so if they only clean 10 rooms in that time they only get paid for 10 rooms not their full 7.6 hour shift because the quota is 14 for a day. But if they get all their rooms done in six hours they will only get paid for six hours work, so they have to stay around for the extra 1.6 hours and do extra cleaning, say in public areas, to get their full day’s money. It is not just the agency that does this, this is how it works in a lot of hotels even though they say it is not piece rates. This is how the hotels have a rort [deceptive practice]. (Supervisor, Hotel 3)

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The Director of the TWA supplying staff to Hotels 2 and 3 confirmed that his employees are paid according to the number of rooms cleaned. At these hotels, 32 minutes is allocated to clean a standard room, so permanent and casual staff receive Aus$7.56 and Aus$9.45 per room, respectively. At Hotel 3, the TWA invoices the hotel at a rate of approximately Aus$15 per room. The rate is slightly higher at Hotel 2 because it does not have an ongoing contract with the agency.

Additional benefits are available to workers employed directly by the hotels; these included: social club membership, discounted accommodation, food and beverages, gym membership, parking and movie tickets. TWA employees are not eligible to receive these benefits, however. A room attendant who did not receive these benefits noted that ‘even if I didn’t use them it would be nice to think that I could if I wanted to’ (Hotel 3).

Room Attendant demographics

Overall, Room Attendants originated from numerous countries including: China, Brazil, the Philippines, Vietnam, India, Russia and Thailand. In-house permanent staff were typically female and slightly older than their temporary colleagues. Most commonly, permanent employees were married women with children and their working hours suited them: ‘Most room attendants have fam- ily responsibilities so this job suits them because they just work the morning shift. Every other hotel department involves shift work which does not fit in with family responsibilities’ (Executive Housekeeper, Hotel 2). The majority of these workers originate from non-English speaking backgrounds (NESBs) and possess few or no formal qualifications. Although these employees are from NESBs, their English language skills are said to be very good, which is important in the upper market hotels as attendants are encouraged to interact with guests.

In contrast, room attendants employed on a casual basis and those employed by TWAs are younger. Although predominantly female there are also males. According to the TWA Director supplying staff to Hotels 2 and 3, labour supply has been strong due to an influx of migrant workers in the past five years. Around 96 percent of his workforce are migrants (65% female and 35% male; 25–35 years of age), representing ‘every nationality under the sun’ and consisting of three main categories: international students and their spouses (40%); applicants for permanent residency currently on bridging visas (20%); and permanent residents and citizens (40%). Although the international stu- dents intend to move into their chosen professions upon completing their stud- ies it was highlighted that they frequently ‘get stuck’ in cleaning:

[they] tend to have done studies somewhere here but [the degrees] are not very valu- able, they are not proper Universities and they cannot get work so they get stuck in cleaning … it is better than going back to Bangladesh for $6 per month.

Similarly, many of the Chinese workers are engineers, doctors and accoun- tants but they are cleaning rooms because their English is imperfect or their qualifications are not recognised.

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In many instances, TWA and casual staff lack housekeeping experience and some have not worked previously. The assistant housekeeper at Hotel 1 indi- cated that the TWAs:

advertise at unis for students on six-month working visas. They are very highly edu- cated but they have never cleaned before, many have their own cleaners and domes- tic staff when they are at home in China or Brazil and they struggle to clean adequately and meet their quotas.

At the same time, others are working to support themselves and hoping to gain permanent residency. For these TWA staff, access to more structured career development opportunities in hotels would be valuable.

The relationship between the regulatory framework, TWAs and client firms

The relationship between the regulatory framework, TWAs and client firms is clearly important. In terms of the regulatory framework, provisions governing employment exist at a broad labour market level in the form of the award, as discussed previously. The regulation of the type that exists in the UK and Sweden for example (discussed earlier, and see Biggs et al., 2006; Coe et al., 2009), which is designed specifically to regulate the TWA industry and protect its employees, does not exist in Australia, leading to distinct implications.

Perhaps the most significant implication is associated with the barriers that restrict workers’ transition from temporary to permanent employment. TWA staff are effectively unable to transfer into permanent employment with the client firm because of ‘anti-poaching’ agreements. At Hotels 2 and 3 the agree- ment established with the contracted TWA states that a client firm is obligated to pay the TWA $1500 in order to ‘buy out’ a TWA employee and hire them directly or the client is required to wait six months beyond the completion of an assignment before it can hire a TWA employee directly, without incurring a financial penalty. The ‘buy out’ clause was introduced by the TWA after poach- ing of its employees became a problem. The Director of the TWA indicated that:

there were some initial problems with the [Hotel 3] contract because we were los- ing staff to [Hotel 3]. Our staff would see the other jobs available at the hotel and become porters or move into food and beverage or other areas. This [turnover of staff] was too costly for us, we were losing training costs, recruitment and selection costs and productivity was affected.

Consequently, ‘anti-poaching’ provisions were introduced by the TWA and hotel managers are now unwilling to engage in poaching, stating that it is an unrealistic and inefficient strategy because of the time and/or costs involved.

Similarly, the managers at the other hotels reported that ‘anti-poaching’ agreements with TWAs could include financial penalties of up to $3000 or a 12- month waiting period. As a result of these agreements, none of the hotel man- agers had participated in temporary to permanent TWA employee transfers; ‘We don’t touch each other.’ (Human Resources Manager, Hotel 4) However, managers expressed a strong willingness to support such transitions under more liberal conditions. For instance, one executive housekeeper stated that:

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I have some staff who would be good supervisors here and they could go even fur- ther but they belong to the agency so they are off limits, I can’t hire them, as it is, but I would if I was able to. (Hotel 2)

In addition, the client hotels also place restrictive demands on the TWAs and their employees by requiring exclusivity regarding their access to TWA staff. All of the hotel managers stated that they had agreements with their contracted TWA to ensure that their staff do not work at any other hotels, thus TWA employees are trained and designated to work at a specific hotel and nowhere else. The hotel managers believe that exclusivity is necessary to ensure staff consistency and quality standards. For example, an assistant housekeeping manager explained that TWA staff could ‘pick up bad habits’ (Hotel 1) if they worked at other hotels with lower quality standards and there are also concerns regarding contamination of the hotel’s prestigious service culture. Other hotel managers expressed similar concerns. It was also suggested that TWA employ- ees’ productivity would be compromised if they were working at other hotels: ‘If they have a second job they can’t put in 100 percent here because they are tired.’ (Hotel 1)

Other demands were also evident on the part of client firms regarding the TWA staff specifications they require. According to all of the housekeeping managers, specifications are often communicated to the TWA in order to main- tain the ‘right balance’ in their housekeeping workforces. These demands were confirmed by the TWA Director:

It is not good to have too many staff of the same nationality because cliques of Chinese, Indian or Vietnamese can form so it is better to have a mix. It sounds dis- criminatory but [the Housekeeping Manager] might call and say ‘no more Indians’ or ‘no more Chinese’. (TWA Director)

Moreover, the executive housekeeper at Hotel 1 highlighted her preference for Brazilian workers: ‘They are very warm people and the men look great.’

The role that clients play in actively controlling the labour market is clearly apparent here, segmenting their workforces and placing restrictions on the employment options of their labour market. Client firms are also actively lob- bying government in order to have specific temporary work visas that set work- ing hours’ limits to a maximum of 20 hours per week extended, to provide them with greater access to TWA employees holding such visas. While the TWA Director interviewed indicated that the working hours’ maximum is to be extended to 30 hours per week, the federal government’s Department of Immigration and Citizenship stated that no comment could be made until policy changes were released publicly.

Coinciding with these findings, the significance of labour supply cannot be underestimated. Clients’ specifications could be met because of the strong and ongoing supply of migrant labour, which increased in recent years. The TWA Director noted that he would frequently arrive at the office to find a queue of new migrants seeking employment: ‘there might be a bunch of Indians at the door or Chinese because they tell each other through word of mouth … it feels

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a bit like a Centre Link office [the government benefits centre for the unem- ployed] sometimes’.

The TWA employees frequently expressed dissatisfaction with their situa- tion as it restricted their chances of obtaining permanent employment and the advantages that go along with a secure job, including sick leave, annual leave and greater financial security. Moreover, these workers are unable to access the other benefits offered to those employed directly by the hotels (mentioned previously), including more intensive and extensive training and career devel- opment and progression opportunities along with special memberships and dis- counted meals and accommodation. The disparities that exist between TWA and in-house staff may contribute to the tensions manifesting between employ- ees. A Supervisor at Hotel 2 suggested that ‘agency staff tend to feel separated from the rest of the hotel staff, they can feel left out and they can be pushed to the outer, I have seen this [alienation] myself’. Being excluded from staff social clubs in conjunction with being ineligible for discounted meals in the staff can- teen and the hotel’s outlets/facilities would in all likelihood leave employees feeling like outsiders and precipitate a fracturing of the workforce.

Discussion and conclusions

The findings presented here go some way towards deepening understanding of TWA employment and extending the extant literature. Overall, the findings highlight hotel clients ever increasing reliance on TWAs, to the extent that TWA employment has become a permanent and embedded feature of the labour strategies deployed in this sector. Typically managers indicated that their reliance upon TWAs was driven by their desire to enhance numerical flexibility, eliminate recruitment/selection and training/development costs, reduce costs associated with worker’s compensation and overcome the variable nature of labour costs. In general then, managers’ increased reliance on TWAs was asso- ciated with their need to enhance numerical flexibility while reducing costs. To this extent, hotel managers are demonstrating imperatives that reflect those of their counterparts within other sectors (e.g. Brennan et al., 2003; Forde and Slater, 2006; Hall, 2000), rather than a different or unique set of imperatives.

Regarding the entrenched nature of TWA employment observed in the hotels, four key factors appear to have been significant in precipitating this phe- nomenon: the absence of regulation governing TWA employment; the active restructuring of the labour market on the part of agencies; the active restructur- ing by client firms; and the strong, ongoing supply of migrant labour. The absence of regulation governing the conduct of TWAs is marked and has clearly produced distinct labour market outcomes by enabling TWAs and client firms to interact in a more unfettered manner than evident in other contexts, including the UK and Sweden, where such regulation exists (Biggs et al., 2006; Coe et al., 2009).

In Australia, the absence of TWA-specific regulation allows agencies to create their own ‘anti-poaching’ provisions, which are inhibiting temporary to

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permanent employment transitions. Whereas regulation in the UK stipulates a maximum 14-week period (and potentially only eight weeks) between the TWA employee completing an assignment and being able to transfer into permanent employment with the client firm, the Australian TWAs stipulate a period of six to 12 months, which is not considered viable by the client firms. Thus, rather than TWA-based employment acting as a ‘stepping stone’ into more secure employment it seems more akin to a shackling device that will perpetuate marginal employment in the secondary labour market. This active role that TWAs play in restructuring the labour market is consistent with Peck and Theodore’s (2002) experiences in the USA, though here it is a case of re-regulation rather than deregulation.

In addition to the role of TWAs themselves, the hotels are similarly shaping interactions and affecting labour market outcomes. Although Mitlacher (2007) and Kalleberg (2003) have suggested that client firms can utilise TWAs to avoid specific forms of regulation and develop strategies that affect TWA employees’ experiences of work, the extent to which client firms are actively involved in shaping the relationships that exist in the TWA industry and the nature and sig- nificance of their activities have not previously been illustrated in detail. The hotel managers included in this study have established exclusive rights to TWA employees, thereby restricting their access to additional employment opportu- nities outside the hotel while also inhibiting their access to a range of internal opportunities and benefits. Moreover, some client firms have also been involved in lobbying government in order to extend their access to TWA staff possessing a particular type of work visa. It is therefore apparent that the client firms are by no means passive participants in the TWA industry, rather they are very actively involved in its restructuring. Further research is necessary in order to determine whether the active nature of client firms represented in this sector is evident in other sectors or countries.

The local recruitment and assembly of migrant labour has enabled TWA employment in these hotels to prosper. The importance of migrant labour lends support to Mitlacher’s (2007) proposition that labour supply may be a factor in further embedding TWA employment and in this case it is migrant labour supply that is a critical factor. Interestingly, in the cases presented here the recruitment and assembly of such labour is occurring at a local level in contrast to the transnational recruitment and assembly patterns evident in McDowell et al.’s (2008) research. Nevertheless, these findings indicate that the recruitment of migrants by TWAs in London is not isolated, suggesting that it may be a more extensive trend, albeit in a slightly different form. Moreover, the evidence indi- cates that a richly diverse group of migrants are being recruited and assembled in a ‘holding pen’ from which client firms can pick and choose quite specifically, forming their own exclusive temporary workforce. Such workers often become trapped, unable to progress within the industry as a result of restrictive agency and client policies, coupled with the absence of protective regulation. The sup- ply of such labour appears to be strong and continuous and both TWAs and client firms seem willing to take advantage of this phenomenon.

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Acknowledgements

The author wishes to thank Chris Warhurst, Susan Ainsworth, Peter Salote and three anonymous referees for their comments on earlier versions of this article.

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Angela Knox

Angela Knox is a Senior Lecturer in Work and Organisational Studies at the University

of Sydney. Her research is typically located within the hotel industry, focusing on issues

such as organisational flexibility, gender-based segregation and employment regulation.

Address: Work & Organisational Studies, Institute Building, H03, University of Sydney,

NSW 2006, Australia.

Email: [email protected]

Date submitted February 2009 Date accepted February 2010

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