The perceptions of strategic human resource management among hotel general/HR managers on employee performance: a case study of hotels in Queenstown, New Zealand

Abstract

It has been acknowledged by several researchers that effective strategic human resources management (SHRM) practices have the potential to enhance employee performance. The primary objective of strategic HRM is to integrate HRM within the organisation’s strategy and apply specific sets of human resource systems, thereby managing employees more efficiently, resulting in employee improved performance and increased productivity. However, most studies related to SHRM are based in manufacturing industries while the service industry, particularly the hotel sector, has received little attention. The hotel industry is recognised to be labour intensive, and it is widely noted to have a poor reputation for in handling HR-associated matters. The purpose of this study was to examine how strategic HRM impacts employee performance using a case study of selected hotels in Queenstown, New Zealand. This case study site is a key destination for tourists visiting New Zealand and has experienced exponential growth in tourism over the past decade. An in-depth qualitative study was used to assess the perceptions by SHRM of HR/general manager’s on employee performance, the study established that chain hotels, by virtue of having standardised HR practices, demonstrated better application of SHRM than the small independent hotels which were found to be more reactive in their approach. The study also concluded that irrespective of the managers experience in hotel industry, the context and environment one finds himself or herself in determines whether he/she can become SHRM compliant or not. More widely, the findings from this research will inform discussions about whether SHRM might contribute to enhancing employee performance in the hotel industry.