HRM Challenges in Tourism: A Case Study of Hyatt Hotels Corporation

This report provides an in-depth analysis of Human Resource Management (HRM) within the context of the hospitality and tourism industry, using Hyatt Hotel as a case study. The report begins with an executive summary and introduction, setting the stage for an exploration of the unique challenges HRM faces in this sector, including seasonal demands and cyclical nature of the business. It then delves into the specific difficulties encountered by HR managers at Hyatt, such as low employee morale and issues related to motivation and inequality, and proposes various methods for addressing these challenges, including fostering good employee relations and implementing total quality management. The report assesses the strategic contributions of HRM to business success, emphasizing the importance of aligning HR policies with organizational goals. It examines the difficulties in balancing strategic and employee goals and demonstrates how employee performance impacts business operations. Finally, the report outlines current approaches to recruitment, retention, and quality management schemes, including training and development programs. The report concludes with a summary of key findings and recommendations for effective HRM practices in the hospitality industry.

Human
Resource
Management
In
Hospitality
And
Tourism

EXECUTIVE SUMMARY
This project is based upon Hyatt Hotel as being an American multinational hospitality
company which is headquartered in Chicago, Illinois, United States. This project analyse
different nature of Tourism and Hospitality which are difficult for Human Resource to
manage. It further determines various methods for solving these characteristics and
challenges. The project assesses strategic contribution of Human Resource Management with
its importance for business to achieve success. It examines the difficulty for balancing
strategic and employee goals through motivating them to complete task by restricting errors.
It demonstrates the employee performance that impact on its business operations through
performance management and appraisal with monetary and non-monetary rewards. This
project also describes and identifies various current ways that are required in Quality
Management Schemes by providing training and development programs for recruitment and
retention methods of employees.

Table of Contents
EXECUTIVE SUMMARY........................................................................................................2
INTRODUCTION......................................................................................................................4
MAIN BODY.............................................................................................................................4
1. Analyse the different nature of Tourism and Hospitality industry that is difficult for
Human Resource to manage...................................................................................................4
2. Determine various methods for solving the characteristics of industry.............................5
3. Assess strategic contribution of Human Resource Management with its importance for
business to achieve success....................................................................................................6
4. Examine the difficulty for balancing strategic and employee goals...................................6
5. Demonstrate the employee performance which impact on accomplishing strategic
organisational success............................................................................................................7
6. Describe various current ways that are implied by organisation for recruiting and
retaining employees................................................................................................................8
7. Identify the requirements of Quality Management Schemes for recruitment and retention
methods...................................................................................................................................8
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................10

INTRODUCTION
The tourism industry is defined as set of facilities through providing travelling and
tourism services for clients of company as to explore the places of leisure for their luxurious
and comfortable lifestyle. The Hospitality industry is a part of service sector that improves
professional skills of its workforce by providing them training and development programs for
treating its clients with courtesy and fulfil their requirements (Akgunduz and Sanli, 2017).
The organisation selected for this project is Hyatt Hotels Corporation as being an American
multinational hospitality company which is headquartered in Chicago, Illinois, United States.
This project analyse different nature of Tourism and Hospitality which are difficult for
Human Resource to manage. It further determines various methods for solving these
characteristics and challenges. The project assesses strategic contribution of Human Resource
Management with its importance for business to achieve success. Additionally, it examines
the difficulty for balancing strategic and employee goals by demonstrating the employee
performance that impact on its business operations. This project also describes and identifies
various current ways that are required in Quality Management Schemes for recruitment and
retention methods of employees.
MAIN BODY
1. Analyse the different nature of Tourism and Hospitality industry that is difficult for
Human Resource to manage
The Tourism Industry is most probably also known as travel and tourism sector that
is linked to the clients of hotels, restaurants, etc., which leads to migrate them from one place
to another at domestic area. The hospitality industry is a broad category of service sector
which facilitates its hotels and restaurants with booking accommodations, lodging luggage,
food and beverage services, concierge, etc. The HR manager of Hyatt Hotel focuses on this
industry as to develop good atmosphere for its clients to relax and enjoy the beautiful nature
within hotel. The company further emphasize on encouraging its workforce to perform their
actions by giving high level of efforts for satisfying the needs and wants of customers.
Hyatt Hotel is an American multinational hospitality company which is headquartered
in Chicago, Illinois, United States. It further manages and franchises the luxury and business
hotels, resorts and vacation properties for convenience of its clients as to survive their
lifestyle with comfort in pleasant environment (Gao and Wu, 2017). The founder of Hyatt
Hotel is Jack D. Crouch, Hyatt von Dehn as being established on 27th September, 1957 at Los
Angeles, California, United States. Its Chairman is Thomas Pritzker and Chief Executive
Officer is Mark Hoplamazian from December, 2006. The Hyatt Hotel is a type of hospitality
industry with its ISIN is US4485791028. It has large number of employees that are about
100,000 in 2019 and website is www.hyatt.com with subsidiaries as Marriott International,
Hilton Hotels and Resorts, etc.

The nature of Hyatt Hotel focus on providing services is seasonal and cyclical
nature of the real estate and hospitality industry. It further announces the opening of premium
experiences while ensuring guests feel connected to nature. This includes lodging of luggage
at accommodation centre of clients in their prescribed room with various facilities provided
inside. The HR manager of Hyatt Hotel focuses on food and beverage services as to maintain
the drinks for clients and provide food services with qualitative and fresh materials that are
required. The main aim of company is to cook food by being aware of customer health and
add ingredients as well as must cover the food with good packaging as to prevent it from
various germs. It is essential for managers to develop various programs by event planning for
celebrations of birthdays, anniversary, weddings, etc. The hospitality industry also provide
amenities of spas, gyms, cruise, yoga centres and wellness services for developing good
atmosphere as being aware of customers healthcare (Hsiao and Chuang, 2016). It further
emphasize on linking with travel and tourism agencies as to provide transport and lodging
services for its clients that develops high level of satisfaction by meeting their requirements at
least-cost price for qualitative services.
The difficulties faced by Human Resource manager in Hyatt Hotel is described as
people have low morale in business which results in performing their actions with less
enthusiasm. It lacks in accomplishment of goals and objectives efficiently by not able to
increase its competitive strategies. The employees face lack in motivation as they are not
encouraged by managers of company with monetary and non-monetary rewards. The
inequality among employees creates adverse relations among workforce that increase
conflicts, jealousy and partiality within each other. The manager challenges various problems
such as budget control, employee satisfaction, training and development programs which cost
high, performance improvement, etc.
2. Determine various methods for solving the characteristics of industry
The various methods for solving problems of service industry are to develop good
employee relations among its workforce by encouraging them to achieve their individual and
organisational goals. The HR managers of Hyatt Hotel emphasize on quantitative and
qualitative methods in service industry at which they focus on improving total quality
management in providing services to clients. It results in developing good customer
relationship management that tends to analyse the change in taste and preference of its end-
user for meeting their requirements. The managers of Hyatt Hotel focus on developing
products by following quantitative methods as to supply the services in accordance with price
charged. Managers of Hyatt Hotel emphasize on qualitative methods as to provide high level
of satisfaction to its customers for supplying them good services.
The managers of Hyatt Hotel focus on solving their issues by developing good
employee relations with managers, leaders and workers as to interact among themselves. It is
essential for organisation as to encourage for completing their task with collaboration,
engagement and involvement that leads to achieve the target within particular duration. The
main purpose for managers of Hyatt Hotel is to understand the emotions and feelings of its
workforce by analysing their circumstances and to co-operate with them for sharing their
views and information (Lee, Back and Chan, 2015). It is most important for managers of

hospitality industry to develop understanding among workers with their culture, ethos, norms
and code of conduct for respecting each other.
The objective of Hyatt Hotel managers is to improve productivity of its workers by
building team morale through motivating them for achieving monetary and non-monetary
rewards such as bonus, incentives, promotion, transfer, etc. It encourages workers to give
their high level of efforts by co-ordinating with each other for achieving their goals and
objectives efficiently. The company further focus on balancing its estimated budget with
actual budget by minimising its unwanted expenditure. The main purpose of hospitality
industry is to recruit and select those candidates who are highly specialised and are aware of
using advanced technology which result in restricting training and development programs and
leads to reduce expenditure.
3. Assess strategic contribution of Human Resource Management with its importance
for business to achieve success
The strategic contribution of Human Resource Manager is to demonstrate new
policies and procedures for business that align with its organisational strategy, structure,
culture and workforce characteristics. It is essential for an organisation as to develop plans
for recruitment, training and compensation based goals (Sharpley and Ussi, 2014). The main
purpose for managers of Hyatt Hotel is to forecast and predict the various strategies for
improving its capabilities in order to sustain in global market by competing with its rivalries
that are Hilton Hotel, Marriott Hotel, Ritz Hotel, etc. It further analyse its vision and mission
that has to be achieved in future period as per the current performance of its workers. The
strategic contribution plays major role in accomplishment of success for sustaining in perfect
competition market by analysing the strategies adopted by its rivalries and to take
precautionary steps for minimising uncontrollable risk.
The importance of strategic contribution in business as to achieve success is to
ensure that goals are set and must be achieved in particular duration. It further analyse the
internal environment of business for identifying the actions been performed in organisation
are able to achieve short and long term goals efficiently. The managers of Hyatt Hotel
implement this strategic management as to ascertain its goals and objectives that will lead to
compete with rivalries through its competitive strategies. It further creates opportunity for
growth and stability of organisation within perfect competition market by developing good
relation among its workers and customers. The main aim for managers is to provide services
for its clients at least cost price that attracts them to consume more of its qualitative services.
This results in increase of its booking accommodation and travel agencies that leads to
maximise profitability ratios. Human Resource managers of Hyatt Hotel further aims to
develop co-ordination with reception through house-keeping, waiters, food and beverage
services, etc.
4. Examine the difficulty for balancing strategic and employee goals
It is very difficult for Human Resource manager as to balance strategic and employee
goals because workers perform their task with the motive to achieve individual targets. This
result in pertaining high errors within organisations that delay in accomplishment of success

efficiently (Chen and Rahman, 2018). It is essential for an organisation as to monitor and
control the actions been performed by its workers for identifying errors and to solve it with
developing innovative idea for corrective measures. The managers of Hyatt Hotel emphasize
leaders to providing training and development programs for improving the skills and
capabilities of its workforce as to complete their target efficiently.
This leads company to sustain in global market by accomplishing its target by
motivating employees through performance appraisal that builds the good image and
reputation among every worker. The workers are provided training and development
programs that increase their skills and improve their specialisation by clearing doubts. This
enhances the ability of workers to give their high level of efforts for completing task within
particular duration. It further improves the possibility for restricting errors that leads
company to achieve success efficiently. This method focuses on balancing the strategic and
employee goals within an organisation in order to build their morale that develops good co-
ordination for achieving success.
The organisation mostly performs its business activities as to fulfil the desire of its
customers by analysing their needs. It is essential for managers of Hyatt Hotel as to motivate
workforce by providing them insurance, health care facilities, good atmosphere to work, etc.
This boosts the energy of workers as they are highly encouraged in completing their goals
and objectives within particular duration as to sustain in global market (Nunkoo and So,
2016). It creates opportunity for business to balance the strategic and employee goals by
gaining rewards for their efficiency in accomplishment of success.
5. Demonstrate the employee performance which impact on accomplishing strategic
organisational success
The employee performance is defined as the process through which a worker fulfils
their job duties and executes its required task. It refers to the effectiveness, quality and
efficiency of their output. The performance also plays major role in contributing the
assessment for building high values and reputation of an organisation in perfect competition
market. A comprehensive performance management plays strategic role in attracting and
retaining key employees within the organisation that leads company to accomplish success
repeatedly by competing with rivalries. The main duty and responsibility of employees within
a hospitality industry is to provide services such as lodging, travelling and tourism facilities,
housekeeping, waiters, reception, cooks, etc.
The employees of hospitality industry are highly motivates as they build good team
morale by developing employee relations that leads to collaborate and co-ordinate with each
other for completing task within specified period. The Human Resource managers focus on
the actions being performed by its workers as to monitor their activities through
performance management. It is described as the process through which managers of a
company analyse and determine the task performed by an individual at particular time period
as compared to its previous actions (Kuo, Chen and Tseng, 2017).

Managers of Hyatt Hotel analyse the employee performance for identifying its actual
task at certain period with the motive to generate appraisal or not. This leads company to
motivate active and productive workers by providing those minimum wages as well as
bonus, incentives, degrees, certificates, promotion, etc. It enhances the capability of
workers to give their high level of efforts for completing its task within particular duration.
The Human Resource managers of Hyatt Hotel focus on building good relations among each
other that leads active workers to collaborate with inactive labours as to complete task within
particular duration for company to achieve success efficiently.
6. Describe various current ways that are implied by organisation for recruiting and
retaining employees
The recruitment refers as the process through which managers of an organisation
analyse the vacancy inside the business environment and hire new candidate at right place.
Managers of Hyatt Hotel implement this as to fill the vacancy in business which result in
work burden for its other workers and delay in goal achievement. It is essential for an
organisation as to recruit new people by creating job opportunities for hiring skilled labour
that is capable in operating advanced technologies (Jiang and Ritchie, 2017). It results in
restricting the training and development programs as its high cost and time consumption. This
delays in accomplishment of success and lacks in competing with its competitors at global
market. The hiring of candidate tends to discriminate roles and responsibility as per the
capability of an individual by analysing its specialisation for achieving goals and objectives
of hospitality industry. The recruitment process is further classified into internal and
external sources where intrinsic includes transfer and promotion. The extrinsic source
involves casual callers, advertisements, recommendations, employment agencies, labour
contractors and telecasting.
The employee retention is described as ability of managers within an organisation for
convincing and developing understanding among its key employees for continue their work
profile in business. It is defined as relating the efforts of employers in attempting to retain the
workers in their workforce. Every company and industry has a variety of retention rate that
indicates the percentage of employees who remained with organisation during a fixed period.
There are mostly five methods of employee retention in an organisation that are building
strong company culture, flexible work operations, competitive salary benefits and make them
feel respected and valued. It leads workers to be energetic and analyse that their small efforts
towards company means a lot for accomplishment of goals and objectives.
7. Identify the requirements of Quality Management Schemes for recruitment and
retention methods
The Quality Management emphasize on providing its services to clients by
managing qualitative functions for developing high level of satisfaction for them. It ensures
that an organisation perform its actions by maintaining its quality as per described in
promotional activities. Managers of Hyatt Hotel implement this as to meet the requirement of
its customers by supplying them qualitative services as to develop their support and loyalty.
The managers further supply its commodities through direct and indirect channel of

distribution as to increase brand awareness (Zhou, Chan and Song, 2017). Managers of Hyatt
Hotel focus on adopting print and social media as to attract large number of customers for
increasing their booking in the hotel by facilitating them with various amenities at least cost.
The process for qualitative management is quality planning, assurance, control and
continuous improvement (Rogerson, 2015). It leads company to achieve success by properly
managing its qualitative products and services that result in providing high level of
satisfaction to its customers. The most important function for manager of an organisation is to
focus on total quality management, six sigma and 360-Degree performance of its
workforce as to meet the requirements of its clients.
The Human Resource manager of Hyatt Hotel emphasize on providing
qualitative services such as furniture, interior designing, food and beverage facilities,
floorings, etc. It is essential for an organisation as to provide good atmosphere for its clients
to survive their luxurious and comfortable lifestyle. The managers must manage its business
with discipline nature and opt to provide calm and peaceful environment for its clients to
breathe. It is the duty and responsibility of managers to avoid and restrict conflicts among its
workers and build good and effective team that is capable in performing each and every task
effectively. This encourages customers to come repeatedly as to enjoy the environment and
facilities provided in hospitality industry (Wang and Tsai, 2014).
CONCLUSION
From the above discussion it have been concluded that tourism and hospitality has
become the world’s largest service industry. It is essential for an organisation to emphasize
on the role of Human Resource Manager for managing and running business effectively by
building team morale of workers through good employee relations. This project analyse
different nature of Tourism and Hospitality which are difficult for Human Resource to
manage. It further determines various methods for solving these characteristics and
challenges. The project assesses strategic contribution of Human Resource Management with
its importance for business to achieve success. Apartly, it examines the difficulty for
balancing strategic and employee goals through motivating them to complete task by
restricting errors. It demonstrates the employee performance that impact on its business
operations through performance management and appraisal with monetary and non-monetary
rewards. This project also describes and identifies various current ways that are required in
Quality Management Schemes by providing training and development programs for
recruitment and retention methods of employees.

REFERENCES
Books and journal
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