1

ROLE OF HUMAN RESOURCES

MANAGEMENT IN LUXURY HOTELS

IN COCHIN, KERALA

Synopsis submitted to Madurai Kamaraj University, Madurai

In partial fulfillment of the requirements for the award of the Degree of

DOCTOR OF PHILOSOPHY IN TOURISM MANAGEMENT

By

Mathew T.P Registration Number: P5299

Research Supervisor

Dr. R. KANNAN Professor & Director

Centre for Tourism & Hotel Management

Madurai Kamaraj University

Madurai -625 021

MADURAI KAMARAJ UNIVERSITY

[Accredited by NAAC with ‘A ++’ Grade in the 4th

Cycle]

(University with Potential for Excellence)

MADURAI - 625 021

TAMILNADU

INDIA

AUGUST 2021

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ROLE OF HUMAN RESOURCES MANAGEMENT IN

LUXURY HOTELS IN COCHIN, KERALA

SYNOPSIS

1.1. INTRODUCTION ABOUT THESTUDY

Human Resource Management is one of the most important and powerful

pillars of every organization that forms the business colonnade in the global

economy. It deals with the art of managing the human work force to achieve the

organizational goals. The good human resource policies and practices help in

motivating employees by creating a healthy environment and work culture. Along

with the employees, the best practices in Human Resource Management (HRM)

would also result in benefits to all stakeholders like the shareholders, creditors,

suppliers and consumers. Therefore, the organization must take extra care of the

human resource management. The organization should consistently follow the

good human resource practices for the benefits of the employees. The survival of

any business depends on how the employees are treated in an organization and the

overall work culture, which helps in motivating the employees to complete their

work. The company, enterprise or an organization stand firm in the market, when

there are good human resource management. Good HR practices also help to

overcome economic problems.

The dictum“management through people applies” best to the HR factor in

any type of organization. In a service industry, HR is of utmost importance as it

implies identification of training needs of the employees from time to time and

taking actions towards integrated development of the HR with a view to helping

the organization achieve its predetermined goals on the basis of the efficient

service of trained and motivated workforce. Organizations have to utilize their

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human resources effectively; so that they can help the organizations achieve their

objectives. The success of an organization depends on the caliber of the

employees; therefore it is crucial to adopt good human resource management

practices ensuing high quality services to the customers. In a labour intensive

industry such as hotel industry, the effective utilization of human resources can

give a hotel a competitive advantage. In the hotel industry, which involves both

production and service aspects, creation and rendering of services from the hotel

to the customer are primarily achieved through its employees. The success of this

industry is therefore dependent on the efficiency of its employees and how

effectively they are managed in its routine acts. It is widely accepted that only

satisfied employees can make the guests satisfied-such dictum has not yet rooted

in the mindset of hoteliers.

1.2. HUMAN RESOURCES MANAGEMENT (HRM)

Every organization uses various types of resources viz material and non-

material. The organization requires plant, equipment, financial assets, and

machinery for its production. The organization also needs the human power to

operate the entire non material thing in an organization. The most important factor

in the organization is the human resource. If an organization can handle the

employees in effective way, then it can handle other factors smoothly

andsystematically.

Human resource management is very valuable department in the

organization as it considers the human aspect. Various human aspects are very

complex and complicated and needs continuous attention for the betterment of

people. The organization has to be at the top for the development of the human

factor. The organization has to develop their employees by improving their skills

on regular basis and by keeping them motivated to achieve the organizational

goals. Without the proper motivation and continuous employee development, the

organization cannot achieve the expected goals.

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Today's human resource is affected by the number of internal and external

factors. The human resource factor is very up to date in today's world. Employees

in the organization know their abilities and the expected amount they should get

from the organization. Addition to this, number of developments has been

emerged in the human resource like the nature of work and attitude of the workers

and employees and expectation of workforce from the company. The overall

employee's expectation regarding the job and salary is increased a lot. The external

factor includes social, cultural, organizational conditions and employee's benefits,

government policies, local government and family conditions. Company policy,

employee's friends, religion, development of the market and work pressure and

tolerance all these factors are affecting the human resource. The organization has

to take up the all advancement and internal and external conditions of the

employees and all other things for formulating the human resource policies and

strategies. The organization should employ such policy that there should be

harmony in the employees and employees can achieve the best result for the

organization. The organization should employ human resource practices like

fairness, performance appraisal, teamwork, training and development etc. for

theemployees.

1.3. THE CONCEPT OF HUMAN RESOURCESMANAGEMENT

Milkovich, George.T and Boundreau John W. (1990)2 have defined Human

resource as the series of the decisions that affect the relationship of employees and

employer in an organization. It also affects many factors of the human resource

relationship for the effectiveness of the employees and employers in the

organization". The concept of Human Resource Management (HRM) is of

comparatively recent origin.

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HRM is the process which consists of a series of activities conducted to

design behavioral changes in a specified period. Lippilt (1978) points out FIRM as

a system that depends on:

o How the employees work in the organization which leads to higher degree of

responsibility for theemployees;

o Employees professional and personal satisfaction andgrowth;

o Best quality of the employees at the work for their increasedresponsibility.

In the Organization point of views toward the employees., Rao (1985)

expressed in his definition, HRM as "it is the process in which the employees of

the organization directly and indirectly helps the organization to achieve the

organizational goals and Organization helps the employees to a) sharpen

capabilities and acquire the skills to perform the present and future expected roles

of the organization and develop the skills of the employees so that they can

develop themselves and b) acquire the potential skills for the betterment of the

organization c) develop an organizational culture by understanding each other

where superior-subordinate relationships, team work, and collaboration among

different sub-units are strong and contributes to the organizational health,

dynamism and pride of employees".

HRM as the function includes many human practices like training and

development and performance appraisal etc. All these practices help employees

their growth and development. Performance appraisal, teamwork, facilities at the

work place etc. are the best for the employees and best for the organization as

well. The organization has to take lead in helping the people to grow and realize

their potential.

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1.4. HUMAN RESOURCE MANAGEMENT ININDIA

Indian market is well known and it is on of the fast developing Economy in the

world. India is the global outsourcing buzz in theworld.

1 India is now in the flow of the developed countries. Most of the

organizations, now days following the international human resource

practices in India. The Indian organizations are now motivating the

workforce and giving the priority to the technology advancement programs

for theemployees.

2 The human resource department is now acting as motivator to the

employees to adapt changes and to perform accordingly in the Indian

condition. The concept of the individual career management and

organizational career management is emerging in the Indian organization

system. All these against are continuously making changes and making the

employees with good attitude towards the work in theorganization.

3 In India, most of the organizations now consider the human resource as

human capital for the company and thinks that human resource is a real

asset of the organization. The competency development is being practiced

in the organization. Most of the organizations require the human resource

which has sound knowledge and internationalbase.

4 Most of the organizations are mainly concerned with how they can hire the

best employees for doing the work in their organization and how they can

minimize the cost by appointing the best employees in theorganization.

5 The trust factor and work life balance are the new concepts and the base for

the human resource department nowa days.

In industrially advanced countries, role of the Human resource management was

not appreciated at the earlier stages. After the formation of strong trade unions, the

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growth of collective bargaining, a wider social consciousness about labor welfare

and protective legislation and government role in many areas of organization

operation it is possible to create good working conditions and growth of

employees in the organization.

Today, in most of the Indian sectors, mismanagement and wrong policy of

the organization hampers the development of the employees besides this the

Service industrieshave left behind all other sectors for the development of the

Human Resource especially in the IT sector and Tourism sectorsin India.

Some of the sectors are very far behind the development of the human

resource management in India like lock Industries, glass industries, and steel

industries. Speaking in a wider context, the two important developments that have

contributed enormously to the growth of human resource management concept in

Indian scenario and practice refer to the massive growth of social sciences and

ease of use of research based data on the enthusiasm and performance of

employees at the work in the business setting and comprehension that all the

resources used in trade, the most important is the human factor: and disagreement

with organized labor, so prevalent in the Indian situation, obliged leaders of Indian

industry to become conscious that the human factor (the most appreciating asset)

could decrease in value vary fast more than wealth, material and machinery, if not

properly handled. The commencement of this compelling awareness could be seen

in the manifestation of personnel management and the rising importance being

attached to the role of the personnel managers. At present, the initiative that has

captured in the mind of Indian industrialist is the need of a transform agent' in the

directorial development.

Labor Welfare Officers to look after labor matters. The Royal Commission

on labor (1931) recommended the employment of Labor Welfare Officers in the

factories. In India, the factories Act and the Mines Act were amended in the light

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of recommendations of the Royal Commission to provide the appointment of labor

welfare officers. There is ratio of bits and pieces on the role growth of welfare

offices, and many valid credentials are available on this subject. After that there

was a time when it was necessity of appointing 'Personnel Managers' with broader

functions and duties, such as staffing, selection, stimulation, appointment and

endorsement, earnings and pay management, organizational relations, betterment

of employees, welfare, social security and other employee benefits, security and

safety programs, training and education, along with management development and

career planning, discussions and communication, performance appraisal, public

and private relations, personnel research, and organizational development. Human

Resource Management has thus emerged as a specialized function. With the

improved trend in respect of the appointments of personnel officers in the Indian

organization, the era of the importance of human relations in

industrycametostayinIndia.Whilethereareformidabledifficultiesinapplyingthehuma

nrelations philosophy in the Indian industrial situation, though there are, some

very promising developments viz. tremendous social, cultural and economic

changes underscoring the growth of democratic ethos in Indian industry. The

unionized industrial culture with the new workers gradually making himself felt

and the professional manager becoming more effective, the family concerns

gradually undergoing re-orientation and the most important of all, the enterprises

willing to make experiment with new value system, human relations has emerged

as the most important field in the area of Human Resource Management. Modem

management in India has become increasingly concerned with the understanding

and management of the most important of all factors of production i.e., the human

factor. As Douglas Mc Gregor‟s puts it, "the effectiveness of organizations could

be increased a great deal if they could, somehow, know the art of tapping the

unrealized potential present in their human resources" The most talked about

approach in man management in India has been in recent times the human

resource management approach. A detailed description of human relations in

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management is called for better appreciation of India's emerging growth. Like

elsewhere, human relations in Indian management conditions mean a body of

systematic knowledge devoted for explaining the behavior of individuals in the

workingorganization.

The core of human relation philosophy is the workers' response to the

clearly demonstrated interest by management and of organizations that emphasize

the individual worker's need for satisfactory relationship with other team members

of his work group and his work. Human resource management is not a single

person's responsibility nor can it even be achieved by an individual alone. HRM is

a collective and co-operative integrated process that should stem from a common

feeling and concept and should progress in a unified and organizedmanner.

1.5. HUMAN RESOURCE MANAGEMENT - AN OBJECTIVEFOCUS

The effective management of its total human resource management

contributes to the profitability and survival of an organization, is the primary

objective of human resource management. Human resource Management

objectives are mainly divided in to functional, organizational, social, and personal

objectives. The changes in the nature of employment contract, objectives

established in National Economic Plans, and legislation limiting the employee's

prerogatives in personnel policies and decisions and legislation limiting the

employee's prerogatives in personnel policies and decisions is recognized by the

human resource Management. Focusing on employee motivation, commitment,

role effectiveness Highlighting the philosophy and underlying human resource

management policies and practices are the important objectives of the human

resource Management. The implementation of human resource management

practices and policies in the organization, providing support services such as

staffing, recruitment, selection, training, and development and proper incentive

systems are the functional objective of the human resource management. Along

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with this, the aim of developing cooperative, friendly and problem solving

approaches in union-management relations is also an important function of human

resource management. In the organization function like to assist employees in

developing congruence between individual goal and organizational objectives

while striving for improving higher standards of performance, work satisfaction

and quality of work life are the Personnel function of the human resource

management. In general, for the purpose of the study, the functions of human

resource management may be categorized as:

a) Recruitment andselection

b) Training anddevelopment

c) Wage/salary,incentives

d) Welfarefacilities.

e) Team Work, Security, and Performancemanagement

f) Job Satisfaction, Motivation, Facilities, atmosphere of theorganization

To have the good human resource management is the most important

function of the management. The greatest achievement of the organization is based

on the quality of the organization and effectiveness of the organization on how

they can use the human resource. The quality of the human resource is depending

on policy, strategies, organization culture and environment of the organization.

Now a day's the human resource practice is more important in Service sector.

Service sector is mainly concerned with human resource management. Inthe

absence of human resource management it will be difficult to provide good service

in the service sector. Service sector like Tourism is most actively considered the

role of the human resource in providing the services to its customers. In tourism

sector, you need to deal with the local as well as international customers from

different parts of the world. Thus they should be satisfied with the quality of

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service and hospitality from the organization.Therefore,theTourismsectors

r a t he r s a yhotelindustriesaremoreconcerned with best policy for the recruitment,

selection, induction and promotion. Training and development function that aims

at enhancing skills and abilities of the human resource is assuming significance in

the context of rapid socio-economic development and technology oriented service

sector in India. Besides, Hotel industry is dependent on the regular supply of

updated human talent. This can be achieved through the process of training and

development policies. Motivation of employees in the hotel and tourism sector

helps to secure their integration with the organization and attains optimum level of

efficiency and in achieving organizational goals in systematic manner. Most of the

hotel industries are more concerned with the smart, dynamic and active staff and

who can be well recruited and developed through a good salary policy, better

incentive schemes and welfare facilities. Therefore, human resource management

in hotel industries aims at the development of sound wage policy for stimulating

the performance of welfare policies to provide for the positive working conditions

and best international practices of the Organization to its customers. Hence, a

number of welfare measures have been attempted by the hotel industries in recent

times.

1.6. TOURISM: SERVICESECTOR

Tourism is not a new phenomenon for Indian culture. We can find the root

source of tourism in Sanskrit literature. The word tourism is derived from the word

'atnas‟ which means leaving home/town for something to other places. In the

literature that is Sanskrit, there are three "atnas"

1 Prayatna-Means the person or family going out for delight andKnowledge.

2 Deshatna- Person or Group of persons going out in different countries for

the survival and for the economic growth

3 Tirthana-There are the people who go to the religious places for

internalsatisfaction

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These three terms rightly indicate the emergence the different aspects or the

three prime motivations of tourism. In Indian scenario, tourism was considered an

industry, most of the visitors came to India for the business purpose. Mughals and

Vasco da Gama are the examples of the travelers to India in early ages. They left

behind their culture and also learn the Indian culture for their development. There

are various types of reference found in the Indian literature about the early tourism

in Indian land by people from the other regions and countries.

After the emergence of the civilized society in the world, and with

development of the various means of travelling resources, large number of people

preferred to travel from one country to another for the business expansion and for

the benefits of their own. People from Europe and America are the most frequent

travelers in the different parts of the world. They have a rich culture and

advancement of Industrial development and civilization. They travel to different

places to know the different types of culture and to learn the various culture of the

different countries in the world. Rebirth of Europe aroused a new strength of

enquiry for acquiring information through responsibility wide-ranging journey.

The upper classes of Europe started the Grand Tour in the 17th Century, which

was subsequently followed in the 18th and 19th Centuries by the emergence of a

wealthy merchant class. Rebirth had also created the strength of venture and

innovation in the minds of Columbus, Vasco Da Gama and Sir Francis Drake.

Until the First World War, Voyage of the people remained the privilege of a small

segment of society across the world. The First World War had caused a note

worthy transform in the travel for happiness and leisure time. Tourism became an

engine for trade and industry growth only after the Second World War that

witnessed key damage and the renewal of the slow Economies was the order of the

day. United States had introduced a plan for the reinforcement of the ravaged

Economies of European and Russian countries. The European governments

invested huge amounts for the renewal of hotels and other infrastructural facilities

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to create a center of attention for more tourists andvisitors. Glimpses of ancient

Indian tourism in Kautilya'sArthasasthra were found and it's understood that

Indian tourism is available from ancient time. Between 400 and 700 A.D. the

Chinese people had visited India number of times. Their experience added a rich

character to the early history of India. During the reign of Harsha Varthanan., The

Chinese pilgrim Fa-Hien and Huien-t-Sang visited India during 359-424 A.D and

during 625-645 A.D respectively and these Chinese travelers have learned the

Indian culture and also left behind their culture of the socio- political conditions of

India in those days. In the 1000 to 1857 period Muslim-Mughal era, people of the

India were motivated by specific purpose like political, business and armed forces.

The Indian culture has adopted the tradition of the Muslim and at the same time

the rulers are also experience the culture of the India. In 400 years of the Muslim

rulers, the Indian culture system had also changed drastically; the more travelers

visited and benefited by Indian culture. Later stage, British rules had left greater

impact on Indian culture.

1.7. TOURISM ININDIA

India is one of the oldest civilizations with a kaleidoscopic cultural variety

and rich heritage in the world. India is the only truly diversified country in the

world with a physical, geographical, ecological, cultural, and socio-linguistic

diversity. India offers a lot to the tourists such as Taj Mahal, Climates, Ancient

monuments and Sculpture etc. A rich Indian culture and second largest population

in the world make it a country of substance, bound by the Himalayas in the North

and the Indian Ocean inthe South. India has different climate, soil types, and

geographical landforms, consequently a variety of habitats and wildlife and

different culture and social tradition of the people and society. In the early days,

tourism was an abandoned area in the Indian economy and Indian social system.

Indian tourism is recently developed as compared to the other countries and it was

small department in the Ministry of Transport in 1948 after independence of India.

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In the year 1955 that first five year plan, the important decision was taken by the

government of India to establish the tourism department. Tourism Department of

India was established in 1957 in the month of March. Post 1970, Indian tourism

sector has seen an exponential growth and has developed rapidly to contribute to

the Indian economy. Now, India is having a very big department for planning and

development of the Indian tourism sector. The Indian tourism sector is gaining

much more importance for economy of the countries and is providing the

employment opportunity for the people of India and this sector helps to create the

Image and creating the trade in the rural area of thecountry.

When the point of discussion comes to international tourism, the

international tourism has been progressing a lot after 1950 and more rapid

progress after the 1970 in India. In the year 1950, many countries are deeply

involved in taking up the benefits of the tourism and they were keen to provide

good service to the tourists. The places of pilgrimage were also developed by

many countries like Saudi Arabia, Dubai, India. In the beginning of 20th Century,

the growth of international tourism activities has flourished substantially and it's

still flourishing. In the era of 1950 to 2013, the International tourists visited and

have increased from 25.3 million to 1240.0 marking an average growth rate of

7.21. In case of the receipts and income of tourism, have increased from US $3.1

billion to $1180.0 billion with average growth rate11.79

In the leadership of Sir John Sergeant, the tourism development was

initiated in the year 1945 in pre independence period. After that Educational

Advisory Committee has Suggested the point that India has vast potentiality of

tourism resources across the countryfollowing the recommendations of the

Committee, an informal Tourist Traffic board was appointed in the year 1948 to

give suggestions for promoting tourist traffic to India. In the year 1949, a separate

Tourist Traffic branch was set up in the Ministry of Transport with a view to

promoting tourism of India. In the year, 1955-56 four branches were established

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by the central government such as Tourist Traffic, Administration Section,

Publicity and Distribution Section were constituted to promote tourism in India.

Addition to this, Government of India has also set up the tourist offices inside and

outside India along with regional tourist offices at Kolkata, Mumbai, Delhi and

Chennai.In the year 1952, India has set up the two new offices in New York and

London to attract people to Visit India and also to attract the Europe and American

People to visit India and to get the information of India. In 1958, a separate

Tourism Department was established with full time charge of a Director General

assisted by Deputy Director Generals and four Directors were appointed for the

development of the tourism department to deal with all matters concerning tourism

development. On 14th

March, 1967, a new Ministry of Tourism and Civil Aviation

was established through due permission of the president of India. In the Year

1966, the government of India has established India Tourism Development

Corporation to create infrastructure, establishing co-ordination with State

governments, Central government and other development agencies for the

boosting the tourism of India and creating the brand image of India for the year to

come. Now a days, The Indian tourism is getting much more support and facilities

and this department is playing valuable part in Indian economy and the Ministry of

Tourism is coordinating with the various states for the development of tourism of

India.

1.8. ECONOMIC BENEFITS OFTOURISM

Tourism has a variety of fiscal impact on Indian economy. Tourism plays

very vital role in sales, profits, job creation, tax revenues, and income inIndian

economy. Lodging, restaurants, transportation, amusements, and retail trade,

Hotels Industries and International Hotels are directly having impact on overall

tourism. These Industries are playing vital role in the growth and development of

the Indian economy. The Indian economy widely focuses on the profits and sales

and employment generation resulting from the Indian tourism. The Economic

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impact assessment (EIA) traces economic activity and subsequently have made

many important changes in the policy of the tourism sector. It also studies the

changes resulting from the Indian tourism sector and also the income and

employment generation rate of the particular region and on the basis of the

assessment the Government of India has changed the various parameters, policies

and strategies to increase the fiscal benefitsof India.

As per the world tourism report 2010, the global tourism has emerged as

the major sector to overcome the shock it suffered in the year 2008 and 2009 due

to the financial crisis and economic recession. Globally, international tourist

arrivals reached 1002 million in 2012, up by 6.7 per cent over the year 2011. The

vast majority of destinations reported positive and often double-digit increases in

profits rather we can say in income and other non-financial benefits to the world

countries, sufficient to offset losses or bring them close to the aspired target as a

result most of the countries have safely come out of the recession and tourism

sector is now boon to all the world. Most of the countries recovered with rate of at

(+8%) and slower in most advanced ones (+5%). Asia and the Pacific (+13%) was

the first region to recover and among the strongest growing regions in 2012. The

recent impact of Tourism glorify the various economy of the world and tourism is

still helping advanced, developing and under developedeconomies.

1.9. HOTEL INDUSTRY:ORIGIN

Now a days, most of the people are very much familiar with the word

Hotel. The word Hotel means a place offering accommodation and food services

for the visitors in very systematic way. Up to fourteenth century the most popular

word was used as "INN" In the later stage, word Hotel is being popularized in

Western countries. Definitions of hotels give the clear cut idea of what hotel

actually means,

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It means a business enterprise with a building for the public

accommodation which provides lodging and food facilities, beverages and

personal formal service with charges.

It is the establishment mainly for the purpose of providing accommodation

and meals for the travelers for thepayment.

It is the Commercial Place or Building aims at providing the lodging

facilities and meal facilities and their services when required for the public

and for the person who ask for thepayment.

Hotel or lodging house means premises, building or part of building where

lodging (with or without boarding) or other services and meals are provided

for a monetary consideration when required by the concernedperson.

It is the place which provides the boarding and lodging having bed room

and is also attached with sanitary fitted toilets and bathrooms in addition to

restaurant, reception, public area, and with sufficient parking area and it has

adequate power supply and other infrastructuralfacility.

Hotel may also be called as cottage or huts or group of huts and cottage

with minimum of twenty fully furnished beds with attached bathrooms

along with other facilities as mentioned in the abovedefinition.

Residential hotel is the premises used for the greeting of visitors and

travelers who wish to utilize the place for rest. It offers different services

like entertainment, and rooms for meetings, banquets, balls, and parlors,

shops of various kinds, lounges, lobbies, cafes, bars, andrestaurant.

The hotel is comprehensive term which provides facilities for the 'sojourn'

of travelers such as hotels, private residential accommodation, hostels,

dormitories, motels, camping sites and paying guest accommodation,etc.

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1.10. DEVELOPMENT OF THE HOTEL INDUSTRY ININDIA

The British had established the concepts of modern catering in India during

the seventeenth Century. The first hotel in Asia was established in Calcutta by

British. With the times western type of hotels were established in different cities in

India like Mumbai, Delhi and Chennai. A British hotel was established in Mumbai

in1840 and the Esplanade hotel was born in Mumbai in 1871. The Great Eastern

Hotel of Calcutta was established in 1843. After the improved railway network,

people have started visiting different places and traffic in the region started

increasing. Thus, many eating houses and primitive hotels were established near

all railway stations. The idea of summer capital in remote places helped in the

development of resorts hotels and catering in India. Post-independence the British

style of services and operations continued for many years until the American style

of hotel functioning became increasingly popular. Hotel industry started

flourishing after thebig chain hotels like the Oberoi group, the Taj, the Welcome

group and the Ashok group in India. A number of major international brands like

Holiday Inn, Novotel, Hyatt, Intercontinental Quality Inn, Sheraton and Ramada

have already been well established in India. In India hotel business was accepted

as an industry only recently. Before 1937 there was lack of hotel that could

accommodate and manage more than 500 visitors at a time. After World War II

most of the important cities in India had focused on the emergence of many hotels

and restaurants. In 1950, realizing the importance of tourism, Government of India

has taken an initiative and a decision to build hotels in the public sector, to

overcome the shortage of hotel accommodation. Thus, the Ashok hotel, New Delhi

was established in 1956. In that year itself the government Hotel Standard and

Rates Structure Committee with the objectivesof the following was formed

i. Laying down standards for the purpose of classification of hotels in India,

focusing on the international standards then applied to

similarestablishments,

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ii. Suggesting improvements and new techniques in the existingarrangement,

iii. Considering whether legislation/ assistance was necessary for the

hospitality industry and if so what typeand

iv. Suggest proper rate structure of hotelindustries.

The Hotel Review and Survey Committee was organized in 1967 with divisional

representation of State governments and Travel Agents Association of India. The

report of this Committee addressed on classification of hotels, projection of hotel

capacity, quality of service and standardization of hotel industry. The report of the

committee highlighted the need for the establishment of a permanent committee

for observing the classification of hotels.

Hotel Industry in India has witnessed tremendous boom in recent years.

Hotel industry is inextricably linked to the tourism industry and the growth in the

Indian tourism industry has fuelled the growth of Indian hotel industry. The

flourishing economy and ample business opportunities in India have acted as a

catalyst for Indian hotel industry. The introduction of low cost airlines and the

increasing price competition have helped domestic tourists a variety of options.

The 'Incredible India' destination campaign and the recently launched 'Atithi Devo

Bhavah' (ADB) campaign have boosted the growth of domestic and international

visitors and consequently the hotel industry. According to a report, Hotel

IndustryinIndiatodayhasasupplyof120,000roomsandthereisashortageofaround140,0

00 rooms, Increasing room rates across India. As per the estimation study, demand

is going to exceed supply by at least 100 per cent over the next 2 years. Five-star

hotels in most of the metro cities are allotting the same room, more than once a

day to different guests, receiving average 24-hour rates from both guests against 6-

8 hours of usage. With demand- supply inequality, hotel room rates in India are

likely to rise by 20 per cent annually and occupancy by 70 per cent, over the next

two years. This will affect the competitiveness of India as a cost-effective tourist

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destination. Indian hotel industry is targeting to add about 40,000 quality rooms by

2018 to overcome this shortage. The future growth of Indian hotel industry looks

extremely optimistic. It is expected that the budget and the mid-market hotel

segment will witness huge growth and expansion while the luxury segment will

continue to perform extremely well over the next few years.

1.11. IMPORTANCE OF HRM PRACTICES IN TOURISMSECTOR

HRM has to play a decisive role in running the tourism sector smoothly.

The industry has a bury linkage with numerous different segments to provide

subjective and quality services to the local as well as international tourists.

Directors and Managers hold the responsibility to manage and monitor the quality

and flow of the various services and departments taking care of those services.

Even the low quality service and administration at lower level such as

housekeeping services and support staff leaves an awful impact on both the

department as well as entire hotel.

The positive goodwill of lodging, aircrafts, travel office and malls can be

threatened by the carelessness of a support staff. A traveler needs to rely upon the

distinctive wellsprings of supplier administration amid his vacation trip.

Therefore, it has turned into a genuine test in the matter of how the tourism

business can prevail with regards to conquering various preventions like lack of

infrastructure, lack of promotional campaign, untrained manpower and limited

government patronization in the present situation. Of all issues, deficiency of

trained and talented staff deadens the procedure of improvement over the long

haul. Skilled manpower is not satisfactory to take into account the necessities of

the regularly developing tourism segments in China, Nepal, Indonesia, Maldives,

Srilanka, and India. All the tourist countries like Europe and America are

contributing immensely to plan the most recent instructional method and Human

Resource Management Practices in Hotel Industry for the preparation and

21

advancement of the representatives in the segment. In this manner, HR is the

foundation of the accomplishment of the tourism associations and the business is

very needy upon the nature of staff and their productivity regarding

administration. Today luxurious star hotels are implementing different measures to

create multifaceted ability and productivity of the staff for providing the quality

service for both local and global customers. Most of the international airlines like

Singapore Airlines, US Airlines, Swiss Airways, Emirates, British Airways, and

Srilankan Airlines have implemented numerous changes in the way they serve the

traveler. By and large, the previous well-established personnel management

practices have proved obsolete in the present context of stiff competition.

Moreover, the tourism sector tends to implement scientific HRM practice to make

more effective use of the human resources. The world's top five travel groups like

Amex, Carlson, Wagon-lists, Thomas cook and the Japan Travel Bureau have

widely changed their organizational structures for providing the utmost priority to

the human resource development to manage other functional areas efficiently. The

management of British Airways (BA) has shifted from a bureaucratized and rule-

driven organization to a commercially successful one. By providing proper

training for all levels of supportive staff, placing right people at right places,

promoting deserving candidates in responsible positions and introducing new

employee oriented reward system have further helped the BA rise to its present

status. The post- liberalized economy and changes have proven and provided

many opportunities and challenges to tourism industry, especially the hotel

industry which are serious drawbacks and hardships in the employee management

practices.

The organizations have yet not given required care, support and devotion to

the development of human resources in the hospitality industry. There are many

opportunities in the opening of the economy, new global visa schemes,

international understanding and moreover increase in the overall disposable

22

income of the people around the world. The challenges and opportunity involves

in facilitating quality, tailored products and service, and introduction of new

advance tools and technologies.

All these challenges need skilled, educated, trained, qualified and

responsible employees. Good HRM practices will help in making these changes in

effective way with ease and less resistance. A report published by the World

Travel and Tourism Council, 2011, highlights that employment in travel and

tourism industries is forecast to rise by 2.3 per cent per annum from 258,592,000

jobs (8.8% of total employment) in 2011 to 323,826,000 Jobs (9.7%) by 2021. In

the analysis it is observed that prospect of employment generation through tourism

up to 2011; Africa tops the list for growth in number of employments and the

averageannualgrowthrate.ItisalsoanalyzedthatEuropeandtheAsiaPacificregions

Record a smaller growth rate in employment generation compared to the rest of

the world. Middle East ranked second in increase in the employment through

travel and tourism industry.

1.12. STATEMENT OF THEPROBLEM

Organizations consist of people, and so the development of these people

should be a key task of the organizations. Every organization begins and ends with

people. The importance of human resources within an organization is becoming

increasingly accepted in today's rapidly changing and uncertain business

environment. In today„s complex business scenario, no one can deny that the most

important cog in the wheel of management is human resources, around which all

other management facts revolve.

An organization„s success increasingly depends on the knowledge, skills

and abilities of employees, particularly as they help establish a set of core

competencies that distinguish an organization from its competitors. With

appropriate HR practices, organizations can hire, develop and utilize best brains in

23

the market place, realize its development goals and deliver better results. Effective

human resource management is crucial for every organization„s success. The

quality of the organization„s human resources, their sense of fair treatment, their

enthusiasm and satisfaction with their job, all affect the organization„s

productivity, customer service, reputation andsurvival.

The outlook on HRM in India has witnessed a sea-change in the last two

decades. Economic liberalization in 1991 created a hyper-competitive

environment. As international firms entered the Indian market bringing with them

innovative and fierce competitiveness, Indian companies were forced to adopt and

implement innovative changes in their HR practices. Increasing demand for skilled

performers forced the companies to shift focus on attracting and retaining high-

performing employees in a competitive marketplace. But such a general change

has not taken place in hospitality industry, especially in hotel industry in India.

The available literature in this regard shows that HRM practices in this industry

are poor and in some cases, the worst. Most of the hotel organizations have

neglected manpower planning in the recruitment of human resources at its various

levels. Unscientific methods of selection are followed in this sector. Most of the

employees are forced to work at a low salary and there is no specified working

time also. In most cases, employees are forced to work for

morethantwelvehours.Theopportunitiesfortraininganddevelopmentarelowandtherei

s a high level of labour turnover in this sector.

The net result is widespread dissatisfaction among employees affecting

their motivation to work. Inevitably, it leads to the decline of their commitment

towards the organization. The study is intended to provide an insight into the

human resource practices prevailing in selected hotel organizations in Cochin,

Kerala.

24

1.13 SCOPE AND SIGNIFICANCE OF THE STUDY

A service industry like hotel industry cannot afford to neglect the human

element because the efficiency of the employees determines, to a great extent, the

quality of service rendered. But the authorities have not so far given due

consideration to the development of human resource in this sector. Hotel industry

in India is often criticized as a sector with poor employee management practices.

A number of studies on this regard reveal that this sector is characterized by poor

employee relation, low pay, and high labour turnover. All these pitfalls are mainly

on account of poor HRM practices. In order to develop hotel industry in a

sustainable manner, there is an urgent need to revamp the situation and to have an

appropriate HRM practice. Such a change is needed not for the development of

hotel industry alone tourism and hospitality industry also will benefit from such a

change Kerala„s economy is largely dependent on the tourism and hospitality

industry. Proper development of human resources is the need of the hour for

developing the hospitality industry to its full potential. A good employee

management practice will create satisfied employees and only satisfied employees

can make the guests satisfied. Satisfied guests will create more revenue to the

state and in turn it will create a good image for the nation. The present study is

significant in that it analyzes the HRM practices prevailing in hotel industry in

Kerala. It looks in to the pitfalls on the employee management practices and puts

forward remedial measures to resolve seriousdrawbacks.

The current study is confined to classified hotel industry in Cochin city,

Kerala. The study purports to gather the opinion of employees, cross-check them

with what the management has to say and to arrive at a rational inference

regarding HRM practices in the classified hotels in Kerala. The variables

identified for the study are recruitment, selection, training and development,

performance appraisal, compensation and job satisfaction of employees.

25

1.14. OBJECTIVES OF THE STUDY

The major objective of the study is to assess the Human Resource Management in

Hotels of Cochin City, Kerala. To be specific, the study aims at the following

objectives

1 To study the significant role of Human Resource Management in Hotels of

Cochin City,Kerala

2 To examine the demographic background of the employees working in

Hotels of Cochin City, Kerala

3 To analyze the linkages of demographic factors with HR practices in Hotels

of Cochin City,Kerala

4 To identify the factors influence human resource management in Luxury

Hotels of Cochin City,Kerala

5 To assess the job satisfaction among the workers working in Hotels of

Cochin City,Kerala

6 To summarize the findings, suggestion and conclusion to improve Human

Resource Management in Hotels of Cochin City,Kerala

1.15 CHAPTER SCHEME

The present study consists of five chapters as explained below.

Chapter 1 – Research Background

This chapter discusses the introduction about the study, human resource

management, the concept of HRM, and HRM in India. Further, it also deals with

tourism, tourism in India, development of hotel industry in India, statement of the

problem, objectives of the study and chapter scheme.

26

Chapter 2 – Review of Literature

This chapter starts with an extensive review of literature on the basis of conceptual

definitions, theoretical reviews and research reviews. It provides the summary of

contribution of various researchers to this field.

Chapter 3 – Research Methodology

The research methodology chapter describes about the nature of the study,

sampling methods, method of data collection, and tools used for data analysis.

This chapter also provides results of validity and reliability test.

Chapter 4 – Data Analysis and Interpretation

The application of the tools and interpretation for the outcome are narrated in this

chapter. The application of various test like frequency, chart, cross tabulation, T

test, chi square, ANOVA, and regression analysis are applied to fulfill the framed

objective of this study.

Chapter 5 – Findings,Recommendations and Suggestions

In this fifth chapter the researcher discusses the results of the analysis and its

implications. With regard to the discussions the researcher delivers the suggestions

based on the findings. Additionally, in this chapter the limitations of the study and

future research of this study were précised.

27

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