Documente Academic
Documente Profesional
Documente Cultură
Hotel industry is the world’s largest industry that employees the most large
amount of human resources. The current trend in the industry is such that hotel
industry is growing in a rapid way along with the development in the world. From
the early decades till now there are large numbers of hotels those employees more
number of manpower. The specialty of the hotel industry is such that the
manpower cannot be substituted with mechanical or electronic devices. The role
of manpower in hotel industry is very significant. Recently manpower turnover is
the biggest issue in the hotel and catering industry. This causes the productivity
and performance of the hotels. Each hotel works in its own pattern, when a new
employee is appointed by the hotel it takes months of stress and strain to train the
staff and make him suitable and adaptable to the purpose and operation of the
hotel. As the employees start delivering his performance to the organisation the
sad part is that he or she is leaving the hotel and moving to another organisation.
The cost involved in training an employee and the effort taken by the other staffs
when he comes as a new comer is much more. When an employee leaves the
corresponding department the operational aspects of the department is changed
and the duty allocation and smoothness and flexibility in working of the
department are changed considerably. The managers have to make the changes in
duty roster and more effort has to be taken by the rest of the staff to adjust with
the job of the person who left the place. The normal questions arise in this scene is
that why this is happening? If we take many hotels there is no difference. The HR
department has to work hard to resolve this problem. In all the hotels the HR
A Study on the HRD Practices to Minimise Labour Turnover in Hotel Industry – Specific Focus on Kerala 1
Chapter 1 Introduction
A Study on the HRD Practices to Minimise Labour Turnover in Hotel Industry – Specific Focus on Kerala 2
Chapter 1 Introduction
problems for business and it is a costly affair, which lowers productivity and staff
morale. Labour turnover (Balram 2005) is an important parameter which indicates
the overall health of an industry or an establishment in terms of wages, industrial
relations, working conditions and the other welfare facilities provided to the
workers. Employee turnover continues to be one of the most unappreciated and
undervalued issues facing business and there are several important assumptions
and conclusions about turnover and they are (Jack and Adele 2003) :
(i) All stakeholders involved in this issue underestimate the true cost of
employee turnover
(iii) The solution to manage turnover mismatches with the actual causes of
turnover
(iv) The preventive measures used are less effective to reduce turnover.
The labour turnover intentions take place due to various factors. These can
be push factors, pull factors, individual factors, unavoidable factors, and avoidable
factors.
A Study on the HRD Practices to Minimise Labour Turnover in Hotel Industry – Specific Focus on Kerala 3
Chapter 1 Introduction
A Study on the HRD Practices to Minimise Labour Turnover in Hotel Industry – Specific Focus on Kerala 4
Chapter 1 Introduction
A Study on the HRD Practices to Minimise Labour Turnover in Hotel Industry – Specific Focus on Kerala 5
Chapter 1 Introduction
A Study on the HRD Practices to Minimise Labour Turnover in Hotel Industry – Specific Focus on Kerala 6
Chapter 1 Introduction
A Study on the HRD Practices to Minimise Labour Turnover in Hotel Industry – Specific Focus on Kerala 7
Chapter 1 Introduction
like equality, where attempt is made to decrease the gaps among the people in a
fair manner. The distributive justice (Alexander and Ruderman 1983) focuses on
the fairness of rewards and the fairness level at which pay package are offered to
the employees. Distributive justice is the equity and fairness perceived by the
employee when evaluating role descriptions, remuneration, and promotion in the
organisation. When there is no existence of distributive justice or lack of
distributive justice in an organisation will induce labour turnover. Professionalism
is the combination of all qualities that are connected with trained and skilled
people. According to Price the professionalism or existence of professional
behaviour in individuals can reduce labour turnover.
In the research the effort is made to see how the turnover intentions of an
employee can be minimised using human resource development practices. The
research tries to identify how the turnover behaviour of the employees are
minimized using the HRD practices and to see what are the reasons for labour
turnover in the hotel industry.
Factor Definition
Environmental:
Kinship Responsibility The existence of obligations to relatives residing in the community
Opportunity The availability of alternate jobs in the environment
Individual:
Job Satisfaction The extent to which employees enjoy their role in the organisation
Organisational Commitment The extent to which employee’s loyalty to the employer
Search Behaviour The degree to which an employee is looking for another job
Intent to stay The extent to which an employee plans to continue membership with his/her employer
General Training The transferability of skills and knowledge among employees
Job Investment The willingness to exert effort on the job
Positive/negative affectively The respectively dispositional tendency to experience pleasant or unpleasant emotional states
Structural
Autonomy The degree to which an employee exercises power relative to his/her job
Distributive Justice The extent to which rewards and punishments are related to job performance
Job Stress The extent to which job duties cannot be fulfilled
Resource Inadequacy Lack of means to perform job
Role ambiguity Unclear job obligations
Role conflict Inconsistent job obligations
Workload The amount of effort required by a job
Remuneration Money and its equivalents which employees receive for their services to the employer
Promotional Chances The degree of potential vertical occupational mobility within an organisation
Repetitiveness The extent to which job actions are repetitive
Social support The extent of social support in job related problems
Family Support Assistance with job-related problems provided by relatives
Supervisor support Assistance with job related problems provided by the immediate supervisor
Work group cohesion Assistance with job related problems provided by peers at work
A Study on the HRD Practices to Minimise Labour Turnover in Hotel Industry – Specific Focus on Kerala 8
Chapter 1 Introduction
Kinship Responsibility -/+
Opportunity +/-
General Training -
Job Motivation +
Met Expectation +
Job
Satisfaction ‐
Positive/ Negative Affinity +/-
Autonomy +
Job hazards -
Professional Growth +
Promotional Chance +
Social Support +
The Price model has factors which are structural, individual and
organisational that can affect the turnover in the organisation. These factors effect
positively or negatively to the turnover intentions of an employee in an
organisation.
A Study on the HRD Practices to Minimise Labour Turnover in Hotel Industry – Specific Focus on Kerala 9
Chapter 1 Introduction
poor morale and low level of motivation within workforce, recruiting and seeking
the wrong employees in the first place, buoyant local labour market offering more
attractive opportunities to employees and poor human resource development
practices or lack of such practices which are good enough to hold the employees
to the organisation for a long time.
• Marriage
• Birth of children
• Health difficulties
As per the survey results, the following are the list of possible reasons why
employees leave organisations (Dave 2008):
A Study on the HRD Practices to Minimise Labour Turnover in Hotel Industry – Specific Focus on Kerala 10
Chapter 1 Introduction
• Ineffective management
• Return to education
Some of the major reasons for high turnover in the hospitality industry are
(Mary 2001):
(1) Work is physical, long hours of work, and working conditions are not
always best
The major causes (T. Stephen 2002) of employee turnover in the hotel
industry fall into four categories: ‘pull-type’ causes, ’push type’ causes,
unavoidable causes, and situations in which the departure is initiated by the
organisation rather than the employees.
Pull factors (T. Stephen 2002) : Pull-type resignation takes place when
the main reason is the attraction towards the alternative employment even though
the employee is happy with the current employment. The major pull factors are:
A Study on the HRD Practices to Minimise Labour Turnover in Hotel Industry – Specific Focus on Kerala 11
Chapter 1 Introduction
higher rate of pay, more valued benefits package, more job security, better long
term career opportunities, a less pressurized environment of work (Philip, Michael
P. and Cary L. 2010), opportunity to work overseas, shorter distance to travel,
more convenient hours of work, desire to work with a colleague, desire to work
with particular management team, desire to work with a branded employer,
fashioning of CV etc.
Unavoidable factors (T. Stephen 2002) (Jack J. and Lisa 2009): These
factors induce turnover due to reasons which are mainly outside the control of the
organisation. These factors are unconnected to work for any reasons. They can be:
retirement, illness, caring responsibilities for relatives, maternity, childcare
arrangement, relocation for joining the spouse or partner, break for travel, and
prospectus for better education.
The reasons for labour turnover in this study are basically categorized into
three: pull factors, push factors and unavoidable factors. The involuntary factors
are not considered in the study.
A Study on the HRD Practices to Minimise Labour Turnover in Hotel Industry – Specific Focus on Kerala 12
Chapter 1 Introduction
A Study on the HRD Practices to Minimise Labour Turnover in Hotel Industry – Specific Focus on Kerala 13
Chapter 1 Introduction
Apart from this there are many factors that influence labour turnover in the
hotel industry and these include (Michael and Steven 2005):
• The high proportion of the workers from the secondary labour market
A Study on the HRD Practices to Minimise Labour Turnover in Hotel Industry – Specific Focus on Kerala 14
Chapter 1 Introduction
from hotel management schools are paid about Rs 5000 in the first year, Rs 6000
in the second year, after which they are taken on rolls. But the difference is huge,
when compared to the package given by other industries. The only way we can
tackle the problem is by providing them a better working environment, give them
responsibilities and opportunities and also by making them feel important.
Monetary aspects do define, but such personal issues also play an important role
in deciding comfort levels. We also compare the package provided by other hotels
and try to match them." According to Vivek Mudaliar, (Vyas,
Talkingpoint:Expresshospitality.com 2005) human resource manager, Taj Exotica
Goa "To counter the rising attrition levels, the only feasible option is the raise the
bar on salaries so they refrain from even thinking of going to some other
company. We are also applying a career progression option wherein an employee
can also go to other hotels in various destinations in the country and abroad,
within the group. With the group on a major expansion drive, we can provide
several options to our employees within the group. If an employee has been with a
hotel for some time, and is able to handle higher responsibility, we can work out a
way so that he gets a movement to a higher designation in a different hotel under
the Taj umbrella."
A Study on the HRD Practices to Minimise Labour Turnover in Hotel Industry – Specific Focus on Kerala 15
Chapter 1 Introduction
A Study on the HRD Practices to Minimise Labour Turnover in Hotel Industry – Specific Focus on Kerala 16