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Human Resource Management and tourism

BBA 336

CDCE-University of Peradeniya

Human Resource Management and tourism

Tourism is a people industry: tourists are people customers and clients and their activities are subject to the normal human behaviour: decision making about what to buy and consume which is both predictable and unpredictable depending on the situation and context.

BBA 336

CDCE-University of Peradeniya

Scope of the activities of a manager in the Tourist Industry

Demographic issues related to the shrinking pool of potential employees and labour shortages, The tourism industry's image as an employer. Cultural and traditional perceptions of the tourism industry. Rewards and compensation for working in the sector. Education and training. Skill shortages at the senior and technical levels. Linking human resource concerns with service and product quality. Poor manpower planning. A remedial rather than a proactive approach to human resource issues.
BBA 336 of Peradeniya CDCE-University

What is human resource management?


HRM can be termed as a form of employment management which researchers identify as focused on the managerial need for human resources to be provided and deployed More complex analyses of HRM identify the concern for the individual human resource system within any organization to be able to realize the strategic objectives.

BBA 336 of Peradeniya CDCE-University

Human resource management issues and tourism industry


1. A critical awareness of the scope and nature of the labour market. 2. The design of jobs. 3. Recruitment, selection, appointment and retention of staff. 4. Induction, equal opportunities, training and development. 5. Evaluation of staff performance. 6. Salaries and incentives. 7. Employment termination, grievance and dispute procedures. 8. Industrial relations and employment law. 9. Motivation of staff.
BBA 336 of Peradeniya CDCE-University

Tourism Employment and Tourist Arrivals in Sri Lanka


Year
1970 1975 1977 1980 1982 1983 1986 1990 1991 1995 1996 1997

Arrivals
Direct
46247 103204 153005 321780 407230 337530 230106 297888 317703 403101 302265 366165 5138 10148 13710 19878 26776 22374 22285 24964 26878 35068 31963 34006

Employment Indirect
6940 13700 18520 28022 37486 31234 31119 34950 37626 49095 44748 47608

Total
12078 23848 32230 47900 64262 53608 53484 59914 64507 84163 76711 81614

1999
2000 2001 2002

436440
400414 336794 393171

36560
37943 35443 36500

51184
53120 49620 51100 BBA 336 of Peradeniya

87744
91063 85063 87600 CDCE-University

Agencies and HRM issues in tourism: international perspectives

In many of the Tourism Master Plans developed for countries, human resource issues normally assume a significant position. In some countries, the public sector is actively involved in the provision of organizations and assistance for the tourism sector to assist in human resource development, through policies, planning and the implementation of initiatives.
BBA 336 of Peradeniya CDCE-University

Human Resource management issues in small tourism business


Small businesses normally have constraints on the resource base and are therefore unable to fund developments in HRM to the same degree as large firms. HRM is widely acknowledged as a major component in small businesses becoming more competitive and productive as well as contributing to organizational success. HRM is often of marginal interest for family owners where a family business exists. The most important area for small businesses to improve their performance is in the recruitment and selection of personnel. Small firms tend to use marginally qualified staff in the tourism sector, especially in the rural environment. Management training is normally limited among owner-managers, with time constraints and a perception of no need for training limiting the development of human resource processes. Many managers in small businesses do not apply strict principles of HRM, being unable to delegate, and fail to define lines to authority and responsibility for employees.
BBA 336 of Peradeniya CDCE-University

Organizational structures and entrepreneurial characteristics

Selfemployed

Small employer

Use of family labour, little market stability, low levels of capital investment, tendency towards weakly developed management skills Use of family and non-family labour; less economically marginalized but shares other characteristics of selfemployed group

BBA 336 of Peradeniya CDCE-University

Organizational structures and entrepreneurial characteristics

Owner controllers

Ownerdirectors

Use of non-family labour, higher levels of capital investment, often formal system of management control but no separation of ownership and control Separation of ownership and management functions, highest levels of capital investment

BBA 336 of Peradeniya CDCE-University

Management differences between small and large firms

Small firms
Short-term planning horizon React to the environment Limited knowledge of the environment Personalized company objectives Informal Communication communication Informal control systems Loose and informal task structure Wide range of management skills demanded Income directly at risk in decision-making a wider performance base Personal motivations directly affect performance performance

Large firms
Long-term planning horizon Develop environmental strategy Environment assessment Corporate strategy Formal and structured Formalized control systems Job descriptions High specialized technical skills Income derived from Broader based company

BBA 336 of Peradeniya

CDCE-University

Managing HRM issues in the tourism sector in the new millennium The challenges facing the tourism industry will only be
met successfully by a well-educated, well-trained, bright, energetic, multilingual and entrepreneurial workforce who understand the nature of tourism and have a professional training. A high quality of professional human resources in tourism will allow enterprises to gain a competitive edge and deliver added value with their service. induction of staff appraisal and staff performance evaluation effective staff communication rewarding initiative and excellence empowering staff improved industry-education collaboration.

BBA 336 of Peradeniya

CDCE-University

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