aligning human resources practices to service...

Research Report: Aligning Human Resources practices to Service Strategy:

An analysis of luxury Hotels in Mauritius

MBA 2007/8

Aligning Human Resources practices to Service Strategy:

An analysis of luxury hotels in Mauritius

Research Report presented to

The Graduate School of Business

University of Cape Town

In partial fulfilment of the requirements for the

Masters of Business Administration Degree

By:

Zjamil Coowar

MBA 2007 / 2008

Supervisor: Linda Ronnie



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Acknowledgements

The report is not confidential. It may be used freely by the Graduate School of Business.

I would like to thank my supervisor, Ms Linda Ronnie for her guidance and invaluable

assistance throughout this research study.

A special thanks to my family for their continuous support and love.

I would also like to thank all respondents who contributed to this research report for their time

and honesty in sharing their viewpoints on Human Resources practices. This study would not

have been possible without them.

I certify that except as noted above, the report is my own work and all references used are

accurately reported.



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Abstract

The researcher‘s interest is in demonstrating how integrated Human Resources (HR) practices

and by adopting a competency based approach, luxury hotels in Mauritius can better align and

enhance their service strategy. The competency-based approach focuses on the development

of the ‗person‘ as a whole rather than focusing merely on tasks and responsibilities in a given

position.

The research study explores the practice of HR and its role in generating value in the luxury

hotels in Mauritius. The study is of a qualitative nature and was based on a combination of

literature research and in-depth interviews. The study was carried out in a sample of luxury

hotels through interviews with HR professionals. The research also examined the relevance

of competencies of HR practitioners in adopting integrated HR practices.

It was found that none of the sampled hotels adopted a fully integrated HR practices although

some facets of the HR function may be aligned to each other. Despite the absence of

integrated HR practices, the HR function still contributes to the service strategy in luxury

hotels. However, by adopting an integrated approach to HR through a focus on competencies,

the HR function in luxury hotels can contribute significantly to the service strategy. Based on

the research findings, a model is presented that integrates and aligns fundamental HR

practices; with the service strategy of the luxury hotels. The model proposes that HR

practitioners be proactive in enhancing the contribution of the HR processes to the service

strategy process and be viewed as a value-adding partner.

Keywords: competency based approach, human resources practices, human resources

strategy, integrated HR practices, luxury hotels, Mauritius, service strategy



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List of Tables

Table 1: Value Added (at current basic prices) in Mauritian Hotels and

Restaurants, 2003 to 2007 3

Table II: Level of employment in Mauritian Tourism / Hospitality Industry,

2003 – 2007 4

Table III: Difference between a functional and a competency-based approach

to HRM 13

Table IV: Structure of the Questionnaire 19

Table V: Summary of participating Hotels and Respondents‘ Profiles 21

List of Figures

Figure 1: Mauritian Monthly Tourist Arrivals, 2006 and 2007 4

Figure II: Route Map 5

Figure III: Research Process 16

Figure IV: Model for Integrated Human Resources aligned to Service

Strategy 33

List of Abbreviations

HR Human Resource(s)

HRM Human Resources Management

GDP Gross Domestic Product

BSC Balanced Scorecard



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TABLE OF CONTENTS

ACKNOWLEDGEMENTS ...................................................................................................... I

ABSTRACT ............................................................................................................................. II

LIST OF TABLES ................................................................................................................ III

LIST OF FIGURES .............................................................................................................. III

LIST OF ABBREVIATIONS ............................................................................................... III

TABLE OF CONTENTS ....................................................................................................... IV

CHAPTER ONE: BACKGROUND AND INTRODUCTION ............................................ 1

1.1 INTRODUCTION ............................................................................................................ 1

1.2 PURPOSE OF THE RESEARCH ........................................................................................ 2

1.3 BACKGROUND ............................................................................................................. 2

1.3.1 The hotel industry in Mauritius .......................................................................... 2

1.3.2 Route Map .......................................................................................................... 5

CHAPTER TWO: LITERATURE REVIEW ....................................................................... 6

2.1 HUMAN RESOURCES MANAGEMENT OVERVIEW ......................................................... 6

2.2 LIMITED RESEARCH AND TRADITIONAL FOCUS ON HUMAN RESOURCES ...................... 6

2.3 CONTRIBUTION TO THE SERVICE PROCESS .................................................................. 7

2.4 THE HOTEL INDUSTRY AND IMPLICATIONS FOR HUMAN RESOURCES .......................... 7

2.5 EMPLOYEE COMMITMENT AND SERVICE QUALITY ....................................................... 8

2.6 LINKING HUMAN RESOURCES TO STRATEGY .............................................................. 9

2.7 HUMAN RESOURCES MANAGEMENT ALIGNMENT AND INTEGRATION ........................ 10

2.8 HUMAN RESOURCES COMPETENCY APPROACH AND INTEGRATION ........................... 11

2.9 COMPETENCIES OF HUMAN RESOURCE PRACTITIONERS ........................................... 13

2.10 SUMMARY ................................................................................................................. 14

CHAPTER THREE: RESEARCH DESIGN ...................................................................... 15

3.1 RESEARCH OBJECTIVES AND HYPOTHESIS ................................................................ 15

3.2 METHODOLOGY......................................................................................................... 16

3.2.1 Type of Research .............................................................................................. 16

3.2.2 Sampling ........................................................................................................... 17



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3.2.3 Respondents ...................................................................................................... 17

3.3 DATA COLLECTION ................................................................................................... 17

3.3.1 Interviews ......................................................................................................... 17

3.3.2 Questionnaire ................................................................................................... 18

3.3.3 Questionnaire Design ....................................................................................... 18

3.3.4 Piloting the Questionnaire ............................................................................... 19

3.3.5 Ethics and Verification ..................................................................................... 20

3.3.6 Analysis ............................................................................................................ 20

3.3.7 Summary ........................................................................................................... 20

CHAPTER FOUR: FINDINGS AND ANALYSIS ............................................................. 21

4.1 CHALLENGES FACING HR PROFESSIONALS IN THE MAURITIAN HOSPITALITY

INDUSTRY .............................................................................................................................. 21

4.2 ORIENTATION OF HR PRACTICES IN THE HOTEL INDUSTRY IN MAURITIUS ................ 21

4.3 CONTRIBUTION OF HUMAN RESOURCE FUNCTION TO SERVICE STRATEGY ................ 22

4.3.1 Service Strategy ................................................................................................ 22

4.3.2 The HR function ............................................................................................... 22

4.4 THE ROLE OF LINE MANAGEMENT .............................................................................. 23

4.5 CHANGING NEEDS OF THE CLIENTELE ........................................................................ 24

4.6 EMPLOYEE COMMITMENT ......................................................................................... 24

4.7 ALIGNMENT OF HR FUNCTION TO SERVICE STRATEGY THROUGH INTEGRATED HR

PRACTICES ............................................................................................................................. 25

4.8 COMPETENCIES OF HR PROFESSIONALS .................................................................... 26

4.9 HR PRACTICES AND SERVICE STRATEGY IN LOWER HOTEL CATEGORIES ................... 26

4.10 OVERALL CONCLUSION ON HYPOTHESIS ................................................................... 27

4.11 DISCUSSION ............................................................................................................... 27

4.12 SUMMARY ................................................................................................................. 31

CHAPTER FIVE: RECOMMENDATIONS AND CONCLUSION ................................. 32

5.1 INTRODUCTION .......................................................................................................... 32

5.2 RECOMMENDATIONS ................................................................................................. 32

5.2.1 Competencies at the core ................................................................................. 32

5.2.2 About The Model .............................................................................................. 33

5.2.3 Developing a Competency Based HR framework ............................................ 34



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5.3 LIMITATIONS AND FUTURE RESEARCH ....................................................................... 39

5.4 CONCLUSION ............................................................................................................. 40

REFERENCES ....................................................................................................................... 41

APPENDIX I: QUESTIONNAIRE ...................................................................................... 48

APPENDIX II: INTERVIEW TRANSCRIPTS .................................................................. 53

RESPONDENT ONE ................................................................................................................. 53

RESPONDENT TWO ................................................................................................................ 58

RESPONDENT THREE ............................................................................................................. 64

RESPONDENT FOUR ............................................................................................................... 70

RESPONDENT FIVE ................................................................................................................ 80



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Chapter One: Background and Introduction

1.1 Introduction

Tourism is an attractive and important industry for many small and developing nations (Teare,

1996). The area of study is the practice of Human Resources (HR) and its role in generating

value in the hotel industry in Mauritius Island. The contribution of the HR function to

business strategy in an organisation is subject to a lot of debate (Kelliher and Perrett, 2000).

Given its mostly intangible nature, HR is to a large extent still considered a cost centre

(Chand and Katou, 2007). This makes the practice of HR as a value-adding partner and key

contributor to corporate strategy a worthwhile area of study.

According to the literature limited research has been conducted on the contribution of HR to

service improvements and especially in the Hospitality industry. In the present day guests at

luxury hotels are more and more knowledgeable and thus have ever-increasing expectations of

the value creation process which results in the guests (customers) being more demanding.

This in turn calls for enhanced skills on the part of employees in luxury hotels in order to meet

and exceed guests‘ expectations.

There is not an exact definition of a luxury hotel. For the purpose of this study luxury hotels

are defined as those hotels which are categorised in the Five (5) Star category and in addition

also have superior service offerings. These hotels are often referred to as Deluxe Five (5) Star

and typically form part of international hotel associations that regroup the finest hotels and

restaurants around the world for instance: Relais Chateaux, The Leading Hotels of the World,

Ltd; Leading Small Hotels of the World, amongst others.

luxury hotels in Mauritius compete internationally by having high service standards and

service strategies targeted at exceeding customers‘ expectations. The service strategy has to

be aligned to the management of people. The people strategy has to focus on enhancing every

team member‘s contribution and performance at each stage of service delivery and at the same

time focus on the competency and development of every single employee. This calls for a

competency-based HR platform which is aligned to the company‘s overall strategy through



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integrated HR systems, namely recruitment, selection and retention; performance

management; training and development, career development, and reward management.

1.2 Purpose of the Research

The aim of this research is to identify those HR practices that contribute to enhancing service

delivery in the Hospitality sector with a specific focus on luxury hotels. The research

examined the extent to which HR practices are integrated as opposed to an individualistic

focus and also explored whether these strategies are aligned with the service strategy in luxury

hotels in Mauritius. The literature review provided a conceptual framework with which to

formulate the HR perspective appropriate for luxury hotels and which also allows for the

simultaneous integration and alignment with service strategies. It also identified the

fundamental HR activities emphasised by HR professionals in these hotels.

1.3 Background

Although the Mauritian economy is based on four pillars, the sugar industry, the textile

industry, the tourism sector and more recently the financial services (offshore) sector, the

tourism sector is the strongest and most economically viable and thus Mauritius is largely

dependent on its tourism sector to maintain and develop the economy.

1.3.1 The hotel industry in Mauritius

According to a 2007 Survey on Employment and Earnings in large Establishments i.e.

employing 10 or more persons, the tourism industry in Mauritius employs an estimated 24500

individuals and contributes approximately 9% to the island‘s Gross Domestic Product (GDP).

Table 1 provides a breakdown of the contribution of the tourism industry to the gross

domestic product of Mauritius since 2003 (Mauritian Central Statistics Office, 2008).



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Table 1: Value Added (at current basic prices) in Mauritian Hotels and Restaurants, 2003 to

2007

Year Rs (Million) % GDP

2003 9,434 6.9

2004 11,296 7.4

2005 12,423 7.7

2006 15,431 8.5

2007 1 18,780 9.2

1 Revised

Source : Pamphlet on Mauritian Tourism Statistics Year 2007

The growing contribution of the Tourism sector to the country‘s GDP demonstrates the

increasing importance of the Tourism and Hospitality sector in Mauritius. The island of

Mauritius as a tourist destination seeks high spending tourists with the main markets being in

Europe namely: France, Italy, Germany and Britain. According to the Mauritian Central

Statistics Office tourist arrivals for the year 2007 increased by 15.1% to 906,971 from

788,276 in 2006.

Arrivals from Europe, which accounted for 65.7% of total tourist arrivals, went up by 16.7%

(595,653) in 2007 from the 2006 figure of 510,479. Arrivals from France, Mauritius leading

market representing 26.5% of total tourist arrivals and 40.3% of the European market, rose by

31.7% to attain 240,028 in 2007 (Mauritian Central Statistics Office, 2008). At the end of

December 2007, there were a total of 97 registered hotels in operation (Mauritian Central

Statistics Office, 2008). Owing to renovations, five of the hotels were not operational. The

total room capacity for these registered hotels was 10,857 with 21,788 bed places (Mauritian

Central Statistics Office, 2008). Figure 1 below illustrates monthly tourist arrivals for the

years 2006 – 2007.



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Figure 1 – Mauritian Monthly Tourist Arrivals, 2006 and 2007

Source: Mauritian Central Statistics Office, Ministry of Finance and Economic Development

According to the 2007 Survey on Employment and Earnings in Mauritius, direct employment

in hotels, restaurants and travel and tourism establishments employing 10 persons or more

stood at 26,322 at the end of March 2007 showing an increase of 2.0% on the figure of 25,798

for March 2006. Of this number, 20,233 or 76.9% were engaged in hotels. Table II shows

the level of employment in Tourism / Hospitality Industry for the years 2003 – 2007.

Table 2: Level of employment in Mauritian Tourism / Hospitality Industry, 2003 – 2007

Year

2003 2004 2005 2006 2007

Establishments

Restaurants 1,719 1,623 1,809 1,805 1,793

Hotels 16,096 16,853 19,226 19,536 20,233

Travel and Tourism 4,045 4,137 4,342 4,457 4,296

Total 21,860 22,613 25,377 25,798 26,322

Source : Mauritian Survey of Employment and Earnings in large Establishments (i.e employing 10 or more persons)

Based on past trends and taking into consideration market diversification, the air access policy

and increase in seat capacity, it is expected that tourist arrivals for the year 2008 will be

approximately 975,000, representing a growth of 7.5% (Mauritian Central Statistics Office,

2008). However the world financial crisis could have devastating effects on the tourism

industry worldwide towards the end of 2008 and beyond. The forthcoming increase in the

0

20,000

40,000

60,000

80,000

100,000

120,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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2006 2007



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price of fuel, with the potential rise in airline tickets, coupled with the slowdown of

economies in most countries representing Mauritius main markets, are factors that will have a

negative bearing on the industry in Mauritius.

The hotel industry in many parts of the world, including Mauritius, is also undergoing major

transformation. The industry is faced with skills shortages, staffing problems such that most

of the key players are facing difficulties in attracting and retaining skilled employees. As a

labour intensive industry, this calls for effective management of human capital. Given such

challenges there is a need for HR activities and systems to be ‗integrated‘ such that they can

be aligned to the value creation process through a service strategy. In other words there is

need for synergy between organisational strategy and HR practices as integrated systems but

also an alignment to the service strategy especially in luxury hotels.

1.3.2 Route Map

The research conducted is reported on in five chapters as is shown in the route map in Figure

II.

Figure II: Route Map

Chapter One

Background and

Introduction

Defines the problem

and purpose of the

research

Chapter Two

Literature Review

A review of research

on Human Resource

practices

Chapter Four

Research Findings

Analysis and

discussions on results

Chapter Five

Conclusions and

Recommendations

Provides

recommendations to

the study and discusses

its limitations

Chapter Three

Research Methodology

Research Methodology

and Instrument



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Chapter Two: Literature Review

2.1 Human Resources Management Overview

Over the last two decades, there has been an ever-increasing amount of attention on Human

Resources Management (HRM) from academics and practitioners (Hughes, 2002). The

literature reveals that HR is assuming greater prominence (Hefferman and Flood 2000; Kalra,

1997). There is no single universally adopted definition of HRM (Heffernan and Flood,

2000). This research paper will adopt Beer et al., (1984) definition of HRM as a management

system which matches business concerns with HR activities. According to Khatri and

Budhwar (2001), HR as a field is in transition and has generated much interest among

scholars. They join several authors to support the view that HR is breaking away from its

micro-focused role and moving towards a macro strategic paradigm in which individual HR

functions such as selection, training, compensation and performance appraisal are aligned not

only with organisational strategy but also with one another (Budhwar, 2000; Lundy, 1994;

Martell and Caroll, 1995; Ritson, 1999). The human resources management departments of

hospitality organisations are however criticised for constituting a cost centre (Chand and

Katou, 2007).

2.2 Limited research and traditional focus on Human Resources

Several authors have raised the limited focus of existing research on Human Resources

Management. As highlighted in Hoobler and Johnson (2004) most research on Human

Resources Management focus on the individual as the unit of analysis and also concentrates

on the traditional personnel functions such as ability, job satisfaction, attitude, and

performance. Guest (1997) and Peccei and Rosenthal (1997), argue that the linkages between

Human Resources Management, the intervening variables (commonly held in the Human

Resources Management literature to be employee attitudes as well as individual and group

behaviour) and organisational performance have been neglected in the empirical studies.

The practice of Human Resources Management has also received attention in the Tourism and

Hospitality industry. Hoque (1999) and Worsfold (1999) posit that the debate continues as to

the definition and/or nature of Human Resources Management and the extent to which it has

been adopted by the industry. Worsfold (1999) further argues that there has also been a call

for more focused empirical research looking at the link between Human Resources

Management and a number of potentially inter-related business outcomes (e.g. employee

commitment, service quality, profitability).



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There is still very little HR theory helping to explaining ―how‖ Human Resources

Management practices lead to the desired organisational outcomes, especially if the research

focus is extended beyond organisational boundaries (Graf, 2007). According to Chand and

Katou (2007), the tendency for the services sector to be overlooked in Human Resources

Management research is due to its very diverse nature as the sector comprises a variety of

industries including financial companies, retailing and transport operation and hospitality.

Schneider (1994) supports the view that HR practices and performance have been thus far

evaluated against manufacturing standards, where Human Resources Management originated,

thereby explaining the lack of focus on service.

2.3 Contribution to the Service Process

Service refers to the policies, practices and procedures of organisations for the delivery of the

organisation‘s tangibles (products) or intangibles (experiences) to customers; service

emphasises delivery and focuses on customers (Schneider, 1994). The focus on intangible

resources in recent years has contributed to the emergence of co-creation of value and

relationships. Graf (2007) mentions the new allocation of roles between a company and its

customers emphasizing the importance of customer involvement in the service provision

process. According to Graf (2007), the new allocations of roles dramatically impact on the

relationship between customers, employees, and the company, and can bring about a

significant transformation for the organisation, as well as its functional components, such as

human resources management. Graf (2007) states that integrated service provision

management can only be effective when employees, companies, and customers are all

included. Pfeffer, (1995) and Ferris et al., (1999) support the view that Human Resources

Management has become a key element in developing and improving organisational

effectiveness and Graf (2007) considers that Human Resources Management practices can

play a central role in promoting the management of an integrated service provision. Graf

(2007) further claims that in order to add value and improve organisational effectiveness,

Human Resources Management activities need to be synchronised, moving toward a stronger

customer orientation, customer-driven relationships, and the resulting organisational changes.

Graf (2007) also notes that the contribution of central Human Resources Management

functions in increasing the customer orientation of employees and companies, reducing role

conflicts and role ambiguity, and creating added value for customers.

2.4 The hotel industry and implications for Human Resources

Prestbury (2005) states that luxury hotels have traditionally provided superior facilities and

services, yet by increasingly demanding greater value for money and for higher levels of



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service and facilities, this has forced operators, particularly those in the luxury category, to

become increasingly similar to each other in terms of the facilities they offer. According to

Chand and Katou (2007), the industry requires a professional approach to the management of

operations, particularly in the area of human resource development (HRD). Berger and Ghei

(1995) comment that the success of the hotel industry depends on the quality of its employees

and their effective management in order to assist the organisation to achieve its objectives.

This is also supported by Fuller and Smith (1991) who note the importance of quality

personnel in customer exchange to organisational performance in the luxury hotel industry.

Haynes and Fryer (2000) add that the service is highly customised for the service industry,

and the degree of internal control exercised by the workforce is relatively high for the

hospitality industry. In luxury hotel organisations front line staff deliver a standardised

product in the tangibles but then require a more individualised service in the intangibles

(Lashley, 1998). Moreover, there is need for employees in luxury hotels to have a flexible

attitude and be willing to ―go the extra mile‖ (Intrawest, 2001-2002, p. 3). This explains why

in luxury hotels the focus is on ―hiring for attitude and training for skill‖ (Intrawest, 2001-

2002, p.3).

Additionally, Davidson (2003) stresses that the climate for HR and employee welfare is linked

to the climates for service and innovation. Davidson (2003) also notes the importance of

adopting a strategic approach to HR especially for service industries like hotels, where the

vast majority of the output is characterised by intangibility, heterogeneity and simultaneous

production and consumption. Customer satisfaction is dependent on many factors – such as

the quality of tangible facilities; the responsiveness and empathy of staff to customer needs

and requests; the consistency of service quality; the accuracy of information provided; and the

location of the hotel (Presbury et al., 2005).

2.5 Employee commitment and service quality

Lashley (1998) explains that the relationship between tangibles and intangibles (as sources of

customer satisfaction) is an influential factor in determining the employment strategies which

a firm adopts and the form that Human Resources Management takes. As the significance of

the intangible element increases, the need to gain employee commitment in ―delighting the

customer‖ increases, and the amount of discretion accorded to the employee also increases.

Davidson (2003) also points out that employee involvement within a supportive

organisational culture and climate is the basis for the most successful operations. The culture



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and the climate shape not only employee actions but also their commitment to a service ethic.

It is this commitment to service that is of paramount importance if customer satisfaction is to

be achieved. Worsfold (1999) supports the view that it is important to recognise that

employees may demonstrate a commitment to providing quality service without being

committed to the organisation. He relates the study by Peccei and Rosenthal (1997) who have

explored the relationship between an individual's commitment to customer service (CCS).

Their proposed model considers CCS to be a function of employee willingness and employee

capacity to engage in continuous improvement and exert effort on behalf of customers. A

clear link was also demonstrated between CCS and the employee capacity variables of

employee knowledge and competence, thereby suggesting the importance of recruitment,

selection, induction, socialisation, and training.

Worsfold (1999) further notes that there appears to be convergence of the ``bundles'' of ``job

design'' and ``acquisition and development of employee skills'' identified by Patterson et al.

(1997) with the precursors of employee willingness and employee capacity identified by

Peccei and Rosenthal (1997). The implication of this research is that Human Resources

Management can contribute to the commitment to customer service and thereby improve the

service received by the customer.

Lashley (1998) has directed attention on the interplay between intangible and tangible

elements in service encounters and related this to level of commitment. He argues that

industries with the higher levels of intangibles, such as luxury hotels, would benefit most by

eliciting employee commitment to service through the adoption of good Human Resources

Management practices.

In trying to delight the customer, employees provide a level of customer service within

controls set by the organisation, such that control and commitment of employees are equally

important in the service process and cannot be considered separately. Employees in luxury

hotels must be given a certain level of discretion to make decisions about the service

interaction (Lashley, 1998). Front line personnel in luxury hotels have to varying degrees

tended to ―make it up as they go along‖ (Lashley 1998, p.27).

2.6 Linking Human Resources to Strategy

Human Resources Management is designed to produce ``strategic integration, high

commitment, high quality and flexibility'' and that, strategic integration refers to the ability of



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the organisation to integrate Human Resources Management issues into its strategic plans, to

ensure that the various aspects of Human Resources Management cohere and for line

managers to incorporate a Human Resources Management perspective into their decision-

making (Kelliher and Perrett, 2000, p.423). Khatri and Budhwar (2001) cite Arthur (1992),

Grundy (1998), Wright and McMahan (1992) who point out that previous research in

Strategic Human Resources Management suggests that, apart from seeking a vertical fit

between the Human Resources Management function and organisational strategy, achieving a

horizontal fit among individual Human Resources Management practices is equally important.

They explain that the full impact of Human Resources Management practices on a firm‘s

performance arises when Human Resources Management practices exist as a coherent system

within a particular system strategy.

2.7 Human Resources Management alignment and integration

According to Davidson (2003), hotel managers have tended to deal with the elements of

empowerment, education and training, operating procedures, resources, service quality,

customer satisfaction, and performance, individually and what has not happened is the linking

of all the elements into an integrated management approach. Hughes (2002) refers to

normative models suggesting that by being more strategic about HR (aligning internally

consistent bundles of Human Resources practices with business strategy) organisational

performance will improve. Talking of integrative Human Resources Management, in terms of

the impact of human resources practices, he cites a number of authors who emphasize where

the focus should be, for instance: Beer et al (1985) talks of ―congruency‖, Mac Duffie (1995)

refers to ―bundling‖ and Bamburger and Meshoulam (2000) talk of ―degree of internal fit.‖

Human Resources strategy serves as an ―over-arching‖ framework that guides the integration

of individual HR practices and one would expect an organization having an HR strategy to

have consistent and non-fragmented HR initiatives (Maasey, 1994).

Heneman and Milanowski (2004) explain that there are two types of alignment imbedded

within the HR alignment model - vertical and horizontal. In their research, Khatri and

Budhwar (2001) mention that companies with formal and widely communicated HR strategies

had a right vertical fit with company strategy and also a strong horizontal fit among HR

activities. The companies investigated treated HR activities as a system, rather than

individual HR activities. Hughes (2002) further describes four HR perspectives namely:

traditional Human Resources Management, integrative Human Resources Management,

strategic Human Resources Management and universal Human Resources Management. He



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argues that emerging empirical research shows support for the universal Human Resources

Management perspective. However he also cites Bamberger and Meshoulam (2000, p.179)

who discuss that universal or best HR practices may serve as a set of guiding principles. How

this is implemented is likely to vary at the operational or business level and from firm to firm

and will yield high performance at this level only to the extent to which they are aligned with

one another and are consistent with the business unit is overall strategic profile.

2.8 Human Resources Competency approach and integration

Teare (1996) argues that managerial roles are becoming more stressful due to factors like the

breadth of choice available to consumers in mature markets, the pressure to ―do more with

fewer people‖ to preserve or enhance profit margins and in response, some organisations are

seeking to build on the skills, talents and experience available to them by establishing a

learning organisation culture, climate and approach to business and human resources

development. A more open-minded approach is needed to maximize the potential that exists

in the industry‘s skilled and unskilled workforce.

Competencies are more important than are knowledge and skills for the successful

performance of complex tasks with a high level of responsibility. As far as knowledge and

skills are concerned, many people are equal, as can be seen from, for instance, diplomas,

certificates, work experience. It is precisely the employee‘s effort, enthusiasm, motivation

and underlying self-image that distinguish the successful employee (superior performer) from

the unsuccessful one (Bergenhenegouwen et al, 1997). The term ―competencies‖' has thus

largely come about in pursuit of higher levels of performance (Cowling et al, 1999).

As stated by Abraham et al (2001, p.842-852), competency ―includes a panoply of the

characteristics, behaviours and traits necessary for successful job performance‖. Matthewman

(1998) cited in Heffernan and Flood (2000, p.130), argues that competencies can potentially

be used to integrate and link an organisation's main HR processes - recruitment, training and

development, performance management and rewards to the business strategy. If used

systematically, competencies tie together all HR processes, from recruitment and induction to

appraisal and succession, so that they focus on the same key expectations and objectives and

reinforce each other.

The competency approach to human resources management is based on identifying, defining

and measuring individual differences in terms of specific work-related constructs, especially

the abilities that are critical to successful job performance. The concept of competency lies at

the heart of human resources management, providing a basis for integrating key HR activities



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such as selection and assessment, performance management, training, development and

reward management. Thus a coherent approach to the management of people in organisations

can be developed (Lucia and Lepsinger, 1999).

According to Ubeda and Santos (2007), the systems in HR may help a company to increase its

competitiveness by implementing competence-based management, which is carried out based

on identifying individual competences, using performance appraisal of results from an

individual‘s job. Vakola et al. (2007) further point out that competencies can be used for

translating strategy into job-related and individual skills and behaviours that people can

understand and therefore implement in support for change. Athey and Orth, (1999) talk about

connecting competencies with changing business needs. According to them by integrating

competencies into HR functions, it provides HR management with a toolkit for capturing and

communicating strategic vision and objectives in clear behavioural terms that can be easily

understood and applied. Experiences from extensive use of the competency approach in a

variety of business environments show that it can provide substantial benefits in terms of

aligning HR policies with strategy and rejuvenating HRM processes such as selection,

training, assessment and development (Vakola et al., 2007).

According to Hondeghem and Vandermeulen (2000) a competency-based approach to

personnel management puts the human being at the centre of attention and underlines the

importance of human resources to reach the objectives of the organisation. He also purports

that competency management does not replace the functional approach but rather the latter

should not be the sole basis of personnel management. Parker-Gore (1996) proposes that by

drawing up competence profiles, that is the skills and behaviours needed for all job families in

the company, the benefits of targeted development, recruitment and appraisal will be available

for all. In addition, career paths are overt and the value of transferable skills across functions

accentuated.

Lawler (1994) talks about a paradigm shift from a functional approach to a competency-based

approach to HRM. Limbourg (1997, p. 8) has summarized this shift as follows:



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Table 3: Difference between a functional and a competency-based approach to HRM

Functional approach Competency approach

Job description Competency profile

What is done? What is done, why and how?

Cluster of core tasks and functional

requirements (knowledge, skills, responsibility)

Cluster of core tasks and competency

requirements (knowledge, skills, personality,

attitude, values and norms, incentives)

Selection: “How is the person” Selection: ―How does the person function?‖

Selection in order to realise a fit between the

function and the individual

Selection in order to realise a fit between the

individual and the organisation

Selection in order to fill a vacancy Selection with a view of growth and development

of an organisation in the long term

Selection criteria based on the current function Selection criteria based on the future

Selection criteria focusing on knowledge,

personality and attitude

Selection criteria besides knowledge, personality

and attitude, also skills, values, behaviour

Development Development

Development of knowledge Development of knowledge, ability, willing and

being

Aimed at hierarchical promotion Aimed at horizontal mobility

With a view of raising job skills Aimed at the maximum use of human potential

With a view of developing skills, attitudes and

behaviour

Appraisal Appraisal

Focus on functioning in the job Focus on functioning in the job, performance,

results and potential

Focus on dedication Focus on behaviour

Reward Reward

Pay according to the job Pay according to work

The relative weight of the function determines

the wage

The required competencies for an organisation

determine the wage

Focus on responsibility, knowledge, age and

seniority

Focus on output

Source: Limbourg (1997, p.8)

2.9 Competencies of Human Resource Practitioners

Competency frameworks are more likely to be adopted by firms which already have a

relatively sophisticated set of HR policies, processes and practices in place (Heffernan and

Flood, 2000). Verweire and Van den Berghe (2003) state that the focus for the HR

professional or department is not merely on solving specific business problems nowadays but

rather also delivers the ability to address broader, more universal strategic challenges as

well—thus building a solid foundation for tomorrow‘s success.

The focus is not only on the kind of HR policies and practices and how they are aligned

horizontally and vertically, but also on the kind of capabilities which need to be fulfilled by

those who feel attracted to the HR function as a specialist staff job as well (Huselid, 1995).

Sheehan (2005) posits that one of the factors considered to have an impact on successful



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HRM integration is the role of the people working within the HR area itself. A re-definition

of the HR role requires that the HR manager adopts more of a business partner role (Beer,

1997).

As per Hondeghem and Vandermeulen (2000) competency management supports a strategic

and integrative approach to Human Resources Management and implies a change in the role

of the HR practitioner. This represents a challenge for HR practitioners who tend to resist

such change in focus. HR professionals of the future must be business partners, HR experts,

advocates, change agents and leaders (National Academy of Public Administration, 1996).

2.10 Summary

The literature review described how effective management of human capital requires the HR

function to emphasize a practice aligning individual HR activities as well as to the

organisational strategy. The literature also considers the types of HR practices conducive to

service industries like for instance hotels. It prescribes adopting HR practices which

contribute to adding value to the service process and to the customer. The importance of

innovation and employee commitment to the service process along with the role of line

management is discussed. The literature review therefore constructs a firm conceptual

foundation and shows that a competency-based HR perspective can integrate individual HR

practices and with a proper alignment to the operational strategy will increase

competitiveness. The chapter also highlights the desired competencies along with the change

in role of Human Resource practitioners to be able to adopt a shift in their approach to meet

the challenges facing them and as a foundation for future business success.



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Chapter Three: Research Design

In the previous section, the various notions on the practice of human resource management

distilled from the literature were captured. To restate, the purpose of the research is to

establish the extent to which Competency based HR practices are adopted by luxury hotels in

Mauritius with a view to improving their service and operational strategy.

3.1 Research Objectives and Hypothesis

The researcher sought to investigate how HR activities could be aligned to the service strategy

in luxury hotels. The main objectives of the research were to:

identify how individual Human Resource activities could be integrated in luxury

hotels

establish whether integrated Human Resource practices could make a vital

contribution to enhance the service strategy in luxury hotels

Hypothesis

One main hypothesis was formulated in the research:

An alignment of integrated Human Resources practices can enhance the service strategy in

luxury hotels in Mauritius

The study also sought to answer the following secondary question:

Do the competencies of HR professionals play a significant role in the adoption of an

integrated HR approach?

With the research objective in mind, the researcher endeavoured to establish how a focus on

competencies through Competency based HR practices in luxury hotels in Mauritius could

contribute to improve the service and operational strategy. The following section discusses

the methodology applied in conducting the study.



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3.2 Methodology

With the research objectives in mind the researcher acknowledged the importance of choosing

the right methodology in order to achieve the desired results and add value to the study. It is

important to point out that the research topic has never been a subject of study in Mauritius

such that the nature of this research is exploratory.

3.2.1 Type of Research

The research was of a qualitative nature with a field-based approach. According to Leedy and

Ormond (2005, p.94), ―Qualitative research is typically used to answer questions about the

complex nature of a phenomena, often with the purpose of describing and understanding the

phenomena from the participant‘s point of view.‖ The qualitative research process adopted

consisted of the six main steps shown below in Figure III.

Figure III: Research Process



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3.2.2 Sampling

A list of all luxury hotels in Mauritius was drawn up and six hotels belonging to different

hotel groups were chosen from the list. Initial contact was made with Human Resources

Managers of sampled luxury hotels to request approval for participation in the research with a

detailed explanation on the research topic and objective. Out of the six hotels chosen only

five of them responded positively to the request.

3.2.3 Respondents

The hotels in the sample varied in size, ranging from small (65 rooms) to large operations

(203 rooms). The chosen hotels represented a mix of locally owned and operated along with

some forming part of international hotel groups. Interviews were conducted with Human

Resources professionals from a sample of five luxury hotels in Mauritius. Prior to the

interviews respondents were contacted by phone to schedule appointments and the purpose of

the research explained. The study population consisted of four Human Resources Managers

and one Human Resources Director.

3.3 Data Collection

3.3.1 Interviews

In-depth interviews were conducted with the study population and the average length of the

interview was around ninety minutes. Hannabuss (1996) identifies the interview as a suitable

method for gathering information. Interviews provide responses in the form in which

respondents think and use language, and this can be important when examining how

respondents look at the social world. However there are also some difficulties to be mindful

of. If too many interviews are carried out often they tend to be time-consuming. Researcher

bias and subjectivity are major challenges for interviews, and any thought-through

methodology (e.g. an interview schedule) should try to cut it down to a minimum (Hannabuss,

1996). Bearing in mind the limitations of research interviews, the researcher linked the

interviews to a questionnaire (Hannabuss, 1996). The questionnaire comprised of questions

designed to answer the research objectives. The questions sought to look into the orientation

of HR practices in luxury hotels in Mauritius and the extent to which a focus on alignment

with Service Strategy is exercised (see Appendix 1 for questionnaire). Given that most of the

questions in the questionnaire were open–ended, interviews were semi structured in order to

allow individual perspectives, viewpoints and experiences to emerge. The order of the



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questions during the interviews varied depending on the flow of the conversation. Some

additional questions were required to explore further the responses of the interviewees.

Questions focusing on the research issues were used as a transition into the interview.

Probing was common especially where the respondent appeared to be making assumptions

which needed to be examined and clarified.

3.3.2 Questionnaire

Questionnaires were used with the respondents from the sampled five-star luxury hotels in

Mauritius. The questionnaires were sent through email at least two weeks prior to the

interview to allow the respondents to familiarise themselves with the questions. Direct face-

to-face conversation with the HR professionals gave the opportunity for rich data to be

obtained in terms of feedback.

3.3.3 Questionnaire Design

Questions were formulated and drawn from relevant and related topics in the literature review.

A copy was then sent out to the supervisor of this study to be vetted. The supervisor advised

that the questions be arranged in a logical flow and grouped into separate themes to facilitate

the interview process as well for analysis purposes. Modifications were brought accordingly

and the questions were arranged in a logical order and flow, and were regrouped to make the

questionnaire more user- friendly to the respondents. The structure of the questionnaire was

developed along particular themes as seen in Table IV below.



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Table IV: Structure of the Questionnaire

Theme Number of

questions

o The hotel industry in Mauritius and orientation

of Human Resources Management practices

o The contribution of the Human Resources

function to the service strategy

2

4

o Employee Commitment

o Alignment of the Human Resources function to

the service strategy through Integrated Human

Resource practices

2

4

o Competencies of Human Resource practitioners 1

o Human Resource practices and service strategy

in lower category hotels

2

TOTAL NUMBER OF QUESTIONS 15

3.3.4 Piloting the Questionnaire

The questionnaire was first piloted with an experienced HR practitioner to comment on the

appropriateness of the questions. The latter was encouraged to ask questions pertaining to the

research topic and objective. This provided an indication as to whether the questions were

clear and well understood. A few changes had to be brought to the first draft based on

comments received in the testing phase. The pilot test was also useful to obtain some

assessment of the content validity and reliability of the questions. On the other hand, face

validity of the questionnaire was checked by HR Coordinators and the General Manager of

two other luxury hotels not in the sample study. The pilot survey helped in testing the time

taken to fill the questionnaire and in refining the following:

Structure of the questionnaire



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Clarity of each question using terms familiar to the respondents

Attractiveness and originality of the layout

3.3.5 Ethics and Verification

The questionnaire was accompanied by a covering letter which introduced the questionnaire

and provided general guidelines for its completion. It also guaranteed confidentiality to the

respondents. Official request was sought from the participating hotels to carry out interviews.

The request was granted directly from the HR practitioners. The information gathered was

treated with strict confidentiality and anonymity was completely guaranteed.

3.3.6 Analysis

Data emerging from interviews was fully transcribed. The methodology adopted by Dye et al.

(2000) in their paper was applied for data analysis by grouping answers to common questions

and analysing different perspectives on central issues. Patton (1990) talks about content

analysis, or analysing the content of interviews and observations, as the process of identifying,

coding, and categorising the primary patterns in the data. He maintains that the qualitative

analyst's effort at uncovering patterns, themes, and categories is a creative process that

requires making carefully considered judgments about what is really significant and

meaningful in the data (Patton, 1990 p.406). The data and insights emerging from the

interviews were categorised and analysed according to the pattern of themes in the

questionnaire. The responses and perspectives of each respondent were compared to each

other to identify commonalities and trends. Content Analysis however has certain limitations.

Saunders, Lewis & Thornhill (2007) summarised some of the limitations in using content

analysis in qualitative research.

The researcher faced some difficulties in reaching consensus on the preferred date and timing

for interviews with the respondents given their busy schedules. However all respondents were

keen and open to sharing their viewpoints and perspectives which contributed to engaging in-

depth discussion on the issues and also towards achieving meaningful data.

3.3.7 Summary

The research problem was defined and appropriate methods designed and followed. Data

collection instruments and procedures were discussed, including relevant ethical issues. The

results and findings derived from the data are reported and discussed in the following chapter.



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Chapter Four: Findings and Analysis

This chapter analyses the practice of Human Resources in the sampled luxury hotels in

Mauritius based on the responses of the HR practitioners interviewed. The transcribed

interviews were reviewed and analysed. These were categorised according to the themes

addressed in the questionnaire. In this chapter, the findings are presented and discussed in

relation to the literature. Table V provides a summary of participating luxury hotels and the

Respondents‘ Profile.

Table V: Summary of participating Hotels and Respondents‘ Profiles

Characteristic

Hotel Size (Number of Rooms) < 100 2

100 - 200 2

> 200 1

Number of Employees <300 1

300 - 500 2

500 - 800 1

>800 1

Years of Experience in HR (Respondent) <10 1

10 - 15 1

15 - 20 3

4.1 Challenges facing HR professionals in the Mauritian Hospitality industry

The aim of this category of questions was to highlight the challenges that HR practitioners in

the Hospitality Industry are facing. All five respondents mentioned the lack of qualified

labour and about the challenge to find the right fit in terms of the desired skill base and

competencies in the market. The lack of talent is coupled by high turnover with salaries

taking exponential tendencies. The perception of all the HR professionals interviewed is that

the average Mauritian employee in the Hospitality industry is not career oriented but mostly

money oriented. Two out of the five respondents also discussed the difficulty in finding

employees with the right attitude to match the culture of a luxury hotel.

4.2 Orientation of HR practices in the hotel industry in Mauritius

Questions in this set related to how HR practitioners orient the HR function with a view to

meeting the challenges they are facing. All the five respondents agreed that the above



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challenges are likely to worsen and that HR practitioners in the Hospitality industry in

Mauritius must ensure they have the right focus in order to respond with appropriate

measures. Training was another common theme discussed by all the respondents. Most of

the respondents emphasised the need to build on skills and tap on a diverse pool of talents.

Respondent One also argued that HR practices need to be oriented more towards developing

innovative ideas and incentives to retain staff. She explained the need to adopt innovative

recruitment practices through approaching school leavers, training institutions and other

learning organisations. Interestingly only Respondent Four discussed the importance of

defining career paths and argued that performance appraisals should be done in a structured

and coherent manner. He further added that the HR function should adopt a holistic approach.

4.3 Contribution of Human Resource function to service strategy

This section discusses how HR professionals perceive the service strategy in luxury hotels.

The relationship between the HR function and the service process is also discussed along with

the role of line management.

4.3.1 Service Strategy

All the five respondents asserted that the service strategy of a luxury hotel is about delivering

a personalised service to the guests. Presbury et al., (2005) refers to the superior facilities and

services traditionally provided and expected from luxury hotels. In discussing the service

offer in the service and hospitality industry Haynes and Fryer (2000) speak about highly

customised service offer and Lashley (1998) discusses the need for a more individualised

service in the intangibles. In the words of Respondent Two: ―the ‗wow‘ effect has to be

present in all actions in the service delivery. It extends beyond customer focus.‖ According

to Respondent One the guest is not only a room number but is rather acknowledged in terms

of his/her personal preferences. Respondent Four in describing service strategy used words

like: excellence, elegance and professionalism with a ‗human‘ approach. ―I will have to come

back‖ are the words sought from clients according to Respondent Five.

4.3.2 The HR function

In explaining the relationship between the HR function to the service strategy Respondent

One considered that HR should help to develop a culture wherein the employees understand

the notion of personalised service. Respondent Two commented that HR is part of the

function and that the HR practitioner should act as a facilitator. According to the latter the



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HR function should facilitate the line function to do their jobs given that it is all about people

managing people but also focusing on cost and budgetary requirements. Hence the function

also requires some regulation and setting the boundaries. Two out of the five respondents

argued that HR should take a supportive role to hotel operations. Respondent Five explained

the support role of HR of creating the right environment to meet individual and organisational

needs. Respondent Four went further by adding that the HR function should ‗service‘ the

other departments of the hotel. According to him the HR function should be visionary.

4.4 The role of line management

The importance for line managers engaging in people issues in formulating their departmental

service strategy was raised by all five respondents. The comments from the respondents

focused on the role of the line function in defining the manpower requirements and

identifying strengths and weaknesses of employees, especially for newly recruited team

members to be aware of available talents. Respondent Two discussed the role of the line

function in defining career paths for the most talented employees as part of the yearly

appraisal process. He further added that the HR function in his hotel only intervenes when

line managers face deadlocks. The role of the line function in communicating the guest

profile to the HR function was discussed by Respondent One. According to her, the HR

function can support the line function by recruiting employees with the desired skills to be

able to offer the personalised service to the distinguished clientele. However she also added

that given the high turnover of staff and the lack of people with the desired skills it becomes

difficult to provide the sought-after personalised service.

The researcher probed interviewees‘ perceptions regarding line managers‘ views particularly

when line managers addressed their manpower requirements to the HR function – did line

managers speak in terms of manning and desired skills or in terms of desired competencies

and level of the talent base of their department? Four out of the five respondents affirmed that

the line function spoke in terms of manning requirements and preferably skilled applicants

and very little reference is made regarding desired competencies or talent base. Respondent

Five added that competencies are only addressed through training and not at the time of

recruitment.



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4.5 Changing needs of the clientele

All five respondents mentioned that the hotel monitors changing needs of its customers

through guest satisfaction questionnaires. Only two interviewees responded to the question

addressing the way the HR function monitors changing needs of the luxury clientele.

According to Respondent Two, the HR function does not monitor but rather seeks the right

information so as to plan accordingly. He provided an example of the situation in his hotel

where the nature of the clientele has evolved from a young to a family oriented clientele and

hence the HR function establishes the right platform in terms of training requirements, budget,

skills etc. for that particular clientele. Respondent Three also argued that the HR function is

involved mainly in adapting to the changing needs of the clientele through training. Although

all the respondents recognised the importance of eliciting and encouraging suggestions and

innovative ideas from the personnel with a view to improving service processes, quality and

delivery, only two out of the five respondents spoke of structured and formal programmes in

place in their respective hotel. Respondent One argued that suggestions and ideas are openly

discussed and encouraged during appraisals which take place twice a year. The appraisal

interviews do not merely focus on employee achievement but as well as the challenges facing

them in their work. Ideas are also discussed and encouraged during weekly briefings by

department heads. In explaining the structure in place in his hotel, Respondent Three

discussed a survey in the form of a competition whereby team members can drop their ideas

explaining the ‗what‘ and the ‗how‘. The best ideas, depending on budget requirements, are

implemented. The implementation is undertaken by a special committee but the contribution

of the employee is recognised even after implementation. For instance a Standard Operating

Procedure may carry the name of the employee who has come up with the idea behind the

procedure.

4.6 Employee Commitment

The questions addressed the importance of gaining commitment and the mechanisms in place

in luxury hotels as part of the HR practice. All the five respondents agreed that their

respective hotel gains employee commitment to enhancing service delivery and quality

through recognition programmes. The information on staff performance is captured mainly

through guests‘ comments and during appraisals. Respondent One spoke about best employee

of the month awards, rewarding for outstanding service given by employees, appraisal rating

followed by a performance bonus payment. Team members who achieve a rating higher than



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what was targeted receive a higher monetary reward. She also added that if the hotel‘s

performance exceeds the targeted level, then a bonus is distributed across all employees. She

insisted on the importance of recognition and reward programmes for team members who are

mentioned by guests for excellent service delivery on comment cards or through other means.

In her opinion rewarding and recognising employees for their performance contributes to their

desires in enhancing a personalised service to the clientele. According to Respondent Two it

is important to give the employee what is required to induce the latter to improve on his/her

competencies. Three out of the five respondents discussed the importance of conducting

employee satisfaction surveys in their respective hotel for monitoring the changing needs and

expectations of the staff. These surveys also help to measure the temperature among the

personnel. Respondent Three argued that no singular action on its own contributes to gain

employee commitment but rather a series of actions, mechanism and processes need to be in

place to frequently measure employee engagement. He further added that employee

commitment is largely dependent on the way Heads of departments interact with their staff

and how they are allowed to take decisions. This argument is supported by Lashley (1998).

Two of the five respondents discussed the importance of quality circles and continuous

improvement teams focusing on service processes. All five respondents recognised that

welfare activities for the personnel were a secondary but important element in gaining

employee commitment.

4.7 Alignment of HR function to service strategy through integrated HR practices

This set of questions consider which key HR systems contribute to the service strategy of

luxury hotels and the extent to which HR practices are aligned and integrated. The interviews

indicated the respondents were unfamiliar with the notion of integrated HR practices, focusing

mainly on performance management systems and training. Three out of the five respondents

identified recruitment and training systems as key contributors to the service strategy at the

hotel. On the other hand Respondent Two argued that all HR systems contribute to the

service strategy.

All the respondents argued that as HR practitioners they ensure that HR systems contribute to

the service strategy by developing, implementing and encouraging training initiatives and also

monitoring the appraisal system closely. Respondent Two elaborated by adding that a review

of an employee's contribution is conducted after three, six and nine months by focusing on

strengths and weaknesses. Employees are assessed and grouped by positions and categorised



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in terms of levels. However there is no formal structure in place and categorisation is

conducted based on written statements on employees‘ levels and skills. There is therefore a

framework in place to categorising competencies and talents but not for measuring such

competencies and talents. Two out of the five respondents referred the Balanced Scorecard

(BSC). According to Ahn (2005), the BSC is often depicted as a tool whose first step deals

with translating strategic statements into measurable strategic goals. Respondent Three

explained that there is no formal structure in categorizing talent and competencies but the

hotel has implemented BSC linked to Key Result Areas. Respondent Four pointed out that

adopting a BSC approach is not enough as it cannot be applied to all levels of employees.

While reflecting on where the HR function should focus, Respondent One recognised the

importance of having a very structured process or platform that would help to evaluate the

specific competencies of employees so that the line managers can follow up on changes in

skills levels. She further added that the line manager would not only be in a better position to

identify and tap on talents but also to follow progression of an individual employee through

regular assessments.

4.8 Competencies of HR Professionals

The arguments raised by the five respondents are in line with the literature. In talking about

the competencies of HR practitioners, Respondent One spoke about the need to be multi-

skilled and the ability to tackle not only administrative functions. According to her HR

professionals need to be innovative and address strategic issues. Respondent Two referred to

the HR person as the right partner to the organisation, to stakeholders and to the business.

This was echoed by Respondent Four and supported by Beer, (1997). Respondent Three

stressed on sound leadership skills on the part of the HR professional and the importance to

walk the talk, to be creative, adaptable to change and possess an influential personality.

4.9 HR practices and service strategy in lower hotel categories 1

Although the study primarily focused on HR practices in luxury hotels, the research found it

important to look into the respondents‘ perceptions on the service strategy and the HR

practice in lower hotel categories (see footnote) to provide brief contrast between the two

categories. Four out of the five respondents agreed that there is a difference between the

service strategy of lower category hotels compared to luxury establishments. In addition three

1 Lower Hotel Categories include Hotels classified as 2 , 3 or 4 Stars



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out of the five respondents argued that the HR function in a luxury hotel would be different to

the function in a lower category hotel. According to Respondent One, luxury hotels focus on

a personalised service as well as transfer an efficient service whereas in a lower category hotel

they need to focus more on delivering value for money and the guest is less demanding in

terms of service level. She added that the HR function would be different mainly due to the

difference in the guests‘ expectations. For instance the selection standard for employees

would be much higher in terms of personal appearance, grooming, level of education and

language skills in luxury hotels. This was echoed by Respondent Two who explained that the

difference between the two categories lies in the people providing the service. The lower

category hotels may not be in a position to provide the service level. Although possible it

would require a major financial investment from the hotel. However Respondent Two further

argued that the organisation type often dictates the role of the HR function such that the HR

practitioner would have to align HR initiatives to the context of the hotel.

4.10 Overall Conclusion on Hypothesis

Drawing on the literature and the interviews conducted there is evidence to conclude that an

alignment of integrated HR practice can enhance the service strategy in luxury hotels. It was

found that HR activities can be integrated by establishing a framework based on

competencies. Such a framework will enhance the recruitment, retention, development

activities and the competency base within a luxury hotel, thereby contributing to the service

strategy.

The secondary question of the research focused on whether the competencies of HR

professionals play a significant role in the adoption of an integrated Human Resource

approach. There is enough evidence from the literature and from the interviews conducted to

deduce that competencies of HR professionals are a key element dictating the implementation

of integrated Human Resource practices. The competencies will also influence the extent to

which the HR practitioner is flexible enough to adapt the right HR competency platform to the

right organisational context and in doing so optimise the contribution of each team member

and hence of the HR function to the service delivery in a luxury hotel.

4.11 Discussion

Meeting the Challenges

The interviews highlighted the challenges for HR Professionals in luxury hotels in Mauritius

in finding the desired skill base and competencies. These challenges call for sophisticated HR



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practices and as highlighted by Teare (1996) for the need to adopt a more open-minded

approach in order to fully tap the industry‘s pool of skilled and unskilled workforce. The

researcher believes that this will be crucial for the ability of a luxury hotel in maintaining the

service standard by retaining the internal pool of talents and at the same time attracting skills

and talents from the market. The gap between desired and available competencies and skills

will keep widening whilst salaries could keep escalating.

Integrated HR practices and alignment

All respondents talked about orienting individual HR activities by focusing mainly on

aggressive recruitment and training activities to meet the challenges facing them. This is in

contradiction with the literature where several authors talk about the need for coherent

approach (Arthur ,1992; Grundy, 1998; Wright and McMahan,1992; cited by Khatri and

Budhwar,2001) and non-fragmented (Maasey, 1994) HR initiatives.

None of the five respondents referred to the need for HR activities to be both vertically and

horizontally aligned in order for the HR function create value in line with the organisational

strategy and simultaneously enhance the contribution of employees to the service level

(Heneman and Milanowski, 2004). The responses from the five interviewees also confirmed

Davidson‘s (2003) argument of the tendency for the elements of empowerment, education and

training, operating procedures, resources, service quality, customer satisfaction, and

performance, to be dealt with individually.

The researcher believes that HR practitioners will not be in a position to fully meet the

challenges facing the hospitality industry unless they adopt a more integrated approach rather

than focusing on individual or selected Human Resource initiatives. Even if this individual

focus on HR activities to some extent allows the HR function to meet some of the challenges,

it may not be sufficient or sustainable over the long term.

The contribution of the HR function in developing and improving organisational effectiveness

is highlighted by Pfeffer (1995) and Ferris et al. (2004). Graf (2007) also discusses the

cruciality of HR practices to be synchronised in promoting the management of an integrated

service provision. This shows the importance for all HR activities to be synchronised to the

needs of the luxury clientele.



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The Role of the HR function

Most respondents agreed that HR is part of the service function and also that its purpose is to

support the line function. Based on the above, the researcher acknowledges the importance of

the HR function taking a facilitating and supportive role, as well as setting the boundaries as

highlighted by the five respondents. However the HR function can engage even more to

promoting an integrated service provision and allowing a simultaneous concentration on

Human Resources Management and customer involvement as highlighted by Graf (2007).

The HR function should take a more proactive role by also monitoring and not only

responding or adapting to the changing needs of the luxury clientele. It can do so by

establishing an environment that helps to elicit and encourage suggestions and innovative

ideas from the personnel with a view to continuously improve service processes. As

Respondent Two noted, all HR systems contribute to the service strategy of a luxury hotel

thereby emphasizing a holistic approach to the practice of HR.

Organisations need to emphasize ever-increasing levels of performance, higher reward levels

for individuals, and increasingly competent employees. As they achieve these goals, a positive

performance momentum develops that feeds on itself and provides a powerful competitive

advantage (Lawler, 2005). Presbury et al. (2005) argue that the facilities offered by operators

in luxury hotels have become increasingly similar. The quality of the personnel in

determining the success of the hotel industry, more specifically in luxury hotels was

highlighted by Berger and Ghei (1995) and Fuller and Smith (1991). This shows that one of

the main aspects that can contribute to the competitive advantage of a luxury hotel is the

superior service offered through its superior quality personnel.

Hughes (2002) discusses the need for employees in luxury hotel to have a flexible attitude and

the importance of their willingness to ―go the extra mile.‖ This role on the part of employees

in luxury hotels also depicts the role expected on the part of the HR function in a luxury hotel.

The HR function should also adopt a flexible approach and be ready to go the extra mile in

order to add further to the service strategy. Adopting integrated HR practices based on a

competency framework would therefore optimise the contribution of each team member

thereby enhancing the service level of the luxury hotel.



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The Role of the Line Function

The responses from the five interviewees appear to be aligned to the argument of Kelliher and

Perrett, (2000, p.423) who support the view that the line function should incorporate a Human

Resources Management perspective into their decision-making. The interviews showed that

the line function does not speak in terms of the competency level and talent base in their

department but more so in terms of the desired manning and whether employees are skilled or

unskilled. A paradigm shift is required in the focus of the line function to focus more on the

talent base and competency level. Focusing merely on skills and number of staff is a myopic

perspective to the human potential in the department. Each line manager should have clarity

regarding the effect of turnover on their competency and talent base at any point in time. This

is only possible if a structured framework is in place that allows the measurement of

competencies and talent base as highlighted by Respondent One.

The effect of organisational climate and employee capacity on commitment to service

The comments from the five respondents are in line with Davidson‘s (2003) argument that the

climate for human resources is linked to the service and innovation climate and also that

adopting a strategic approach to HR is crucial. The actions and mechanisms in place in the

sampled hotels seem to address a supportive organisational culture and climate as being

necessary for shaping commitment to a service ethic. However none of the five respondents

discussed the importance to link employee capacity (in terms of knowledge and competence)

to employee commitment to service. This was raised by Peccei and Rosenthal (1997) to

highlight the importance of recruitment, selection induction, socialisation and training.

Competency Approach

Although two out of the five respondents referred to competencies yet there was no reference

to the tendency for a shift from a functional approach to a competency based approach to

Human Resources Management (Lawler, 1994). None of the respondents stressed the

importance of focusing on competency management which supports a strategic and integrative

approach to Human Resources Management (Hondeghem and Vandermeulen, 2000).

The HR department therefore needs to establish a very structured process or platform that

would help to continuously evaluate the specific competencies of employees so that the line

managers can follow up on changes in competency, talent and skill levels. The ability to

establish such a platform will depend to a large extent on the competencies of the HR

practitioner in a luxury hotel.



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Service strategy and the HR function in other hotel categories

Although four out of five respondents argued that both the service strategy and HR function

would differ in other hotel categories, Respondent Four‘s view is equally valid - the ‗means‘

could be different but the ‗end‘ would be the same. In other words the focus in all hotels is to

provide quality service but this would depend on a number of variables identified by Presbury

et al. (2005). Lower category hotels may not have the same means and budget as luxury

hotels. However adopting a competency-based HR framework would allow the HR function

in any hotel category to contribute to the service strategy.

4.12 Summary

This chapter analysed the data collected from the semi-structured interviews through the use

of a questionnaire. Overall although there are some commonalities with literature, the HR

practitioners interviewed do not seem to be familiar with integrated HR activities and in

establishing an infrastructure to allow simultaneous alignment and integration of HR systems.

The findings from the data combined with the literature review provide the necessary

foundation on which recommendations can be formulated.

Research Report: Aligning Human Resources practices to Service Strategy: An

analysis of luxury Hotels in Mauritius

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Chapter Five: Recommendations and Conclusion

5.1 Introduction

In the previous chapter, it was found that the HR function in all the participating luxury hotels

– as established through interviews with five HR professionals was unfamiliar with integrated

HR practices. On the basis of the findings from the study, and after interpreting those in the

light of the literature on the subject, recommendations on how luxury hotels can through

integrative HR practices enhance their service offering through a focus on competencies are

discussed. Limitations of the current study as well as suggestions for future research conclude

the chapter.

5.2 Recommendations

Luxury hotels can attract, develop, and reward for the desired competencies in order to

contribute to enhancing the service strategy. One of the respondents referred to a ‗human‘

approach when talking about service strategy. The researcher believes that there is a human

dimension to the concept of luxury which aims at touching the emotions of each guest. Two

of the respondents in this study recognised the need to establish a framework or structure that

will allow a coherent and integrated approach to all the activities of the HR function and also

to measure competencies of employees. The challenge therefore for the HR professional in

the luxury hospitality sector in Mauritius is to develop a platform that will attract and develop

the desired competencies of team members in striving to touch the guests‘ emotions by fully

understanding the needs and exceeding the expectations of each guest. In line with the

literature the researcher recommends an orientation of HR practices with a focus on

competencies as the platform. A competency-based HR architecture is therefore

recommended for simultaneous integration of HR activities and alignment to the service

strategy.

5.2.1 Competencies at the core

It is precisely the employee‘s effort, enthusiasm, motivation and underlying self-image that

distinguish the successful employee (superior performer) from the unsuccessful one

(Bergenhenegouwen et al, 1997). As stated by Abraham et al (2001, p.842-852), competency

―includes a panoply of the characteristics, behaviours and traits necessary for successful job

performance‖. From the above definitions, competency can be described as the ability to

perform activities to the standards required in employment using an appropriate mix of



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attitude, skills and knowledge. The researcher suggests a model integrating the core HR

processes (Recruitment and Selection, Training and Development, Performance Management,

Compensation and Reward and Career Management) through a focus on competencies.

Figure IV: Model for Integrated Human Resources aligned to Service Strategy

5.2.2 About The Model

The model incorporates three levels. The first level is about setting up a competency-based

HR platform. The competency based approach focuses on the development of the ‗person‘ as

a whole rather than focusing merely on tasks and responsibilities in a given position. The

researcher refers to this as the ‗total person‘ concept or approach. To define ‗competencies‘

the researcher has opted for the definition adopted by Spencer et al. (1992), - as any

measurable individual characteristic that differentiates superior from average performance, or

effective from ineffective performance. According to Robinson et al. (2007) this allows both

task-oriented and worker-oriented competencies to be considered simultaneously.

Competency frameworks can be defined for all job profiles and used in appraisals as well as

in recruitment and selection, identifying skill gaps for training and development, career

development, linking the reward system along with the management and retention of talents.



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5.2.3 Developing a Competency Based HR framework

Building up a competency framework for staff requires considerable input, but the results are

worth the time and effort. It is important to involve and fully engage the line function in

contributing to the process by communicating the desired set of competencies that would

allow the individual employee to deliver the required service level. A competency framework

consists of both behavioural and functional competencies, and also includes definitions for the

competency requirements of specific jobs at the hotel. Each individual employee at the hotel

would have a personal competence profile. Competencies which include generic soft and

technical skills along with job specific skills could be listed in a competency matrix for all

positions across the hotel. An important element to include is the potential for development

of the individual employee.

A grading structure could be included into the framework or matrix such that each specific

skill, knowledge, ability and competency can be graded. Establishing this framework will lay

the foundation for a competency-based HR system. From there all HR initiatives could be

linked to the competency framework.

The next level prescribes the linkage, alignment and integration of all individual HR

initiatives. The recruitment and selection process will seek to acquire desired competencies

from the labour market and /or develop necessary competencies from the selected pool of

candidates. The available level of competencies would be assessed and graded so as to define

the type of training and development required to meet the requirements of the service

delivery and also in enhancing the competency levels across all positions in the hotel. At the

same time information on competency level for all positions at the hotel will allow tapping on

individual talents to elicit innovative ideas and ways of offering superior customer experience.

This will allow a hotel to gain competitive advantage by seeking to enhance each service

delivery process through its people. Regular assessments of skills, knowledge and

competencies, will allow the hotel to tangibly gauge its competency base and intervene with

appropriate training, career and succession plans. In motivating its key personnel to acquire

and enhance additional competencies, the luxury hotel establishment can align its reward and

compensation strategy so as to retain the internal pool of competencies as well as attract

competencies from the labour market. In the next section the implications of adopting a

Competency–Based HR framework on fundamental HR activities are examined in more

detail.



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Recruitment, Selection and Retention

All the five respondents in this study stressed the difficulty in finding the desired skills and

competencies in a competitive environment characterised by high staff turnover. The

suggested model would allow the HR practitioner to better measure and identify applicants

not only with the desired competencies but also with the right attitude. The HR practitioners

interviewed argued that the average Mauritian employee is not particularly career-oriented.

One of the respondents further commented that employees in the hospitality industry tend to

stay within the industry for several years but have high mobility across different hotel

establishments focusing mainly on financial rewards. The competency–based HR framework

would send a strong signal to all new recruits that the hotel seeks career-oriented individuals

who continuously seek to enhance their competencies in order to take on more challenging

roles in the hotel as they progress in their career. This approach could help to mould the

candidates to become more career conscious right from the recruitment stage. The structured

process of assessing competencies right from the recruitment stage could also allow

identifying competencies from employees previously employed in other industries. This

would enlarge the pool of potential applicants for the hotel.

Competency frameworks could be used to assess job applicants during the interview stage.

Given that certain behaviours and attributes can only be assessed through observation, it is

advisable to put selected job applicants through a trial period. This would give the

opportunity for the Supervisor or the Head of Department to observe the new recruit and

assign grades for desirable behaviours and attitudes. Additionally the HR function could

introduce a grading structure in the competency framework or matrix such that team members

would be graded in their current positions in terms of their actual competencies and identify

potential for further development. This would assume great significance in the recruitment

process. According to Rowe (1995) grading systems are widely used with competency

models. He further adds that recruitment focuses more on the future: In this instance there is

usually a mixture of assessing competences – one can test, for instance, for basic writing and

numerical skills – and competencies (i.e. the required behaviours). Team members could be

graded in terms of their competencies according to a defined scale differentiating a significant

contributor to a non-contributor. The researcher suggests adopting a simple rating scale in

order to reach a combined score for each employee, job applicant or trainee at the hotel. The

HR function would have the competency profile of all employees at the hotel – from the

General Manager to employees in the rank and file positions. The HR along with the line



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36

function should focus on recruiting applicants and retaining employees with the highest

grades (above the median range). Integrating a grading structure into the competency

framework would allow tracking the knowledge base in each department of the hotel. This

would facilitate retaining, nurturing talent within the hotel and deploying such talents to

enhance each interaction with the customer to improve the service delivery at the hotel.

Performance Management through grading of competencies

As strongly argued by Parker-Gore (1996), competencies can be used for organisation

development by using them as a leading part of performance management processes. In

performance assessments, the degree to which the employee exhibits the competency on the

job is assessed. Given that information on actual competencies on the job needs to be updated

regularly, the HR function should go beyond the practice of appraising performance once a

year but rather continuously appraise so as to update the competency profile of employees,

especially those in rank and file positions. Only two out of the five respondents reported that

appraisal is conducted more than once a year. Boice and Kleiner (1997) advise a typical

frequency of bi-monthly or quarterly, whilst Spinks et al (1999) find one performance

appraisal every three months more realistic. The researcher argues that when adopting a

competency framework employees can be assessed anytime. The grading and competency

profile of an individual employee in terms of performance on the job and potential for

development will dictate the frequency the employee will be appraised against objectives

defined for the employee over a given time-frame.

As discussed in literature, by drawing up competence profiles for all job families in the

company, the benefits of targeted development, recruitment and appraisal will be available for

all (Parker-Gore, 1996). It is therefore strongly recommended that competence profiles are

drawn up to support company goals and targets, and defined for all the jobs in the hotel.

Balanced Scorecard and a Competency-Based HR framework

Two of the respondents referred to the use of the Balanced Scorecard (BSC) within their

hotel. Respondent Four further added that adopting a BSC approach is not sufficient such that

a more formal structure has to be in place that covers employees at all levels in the hotel. The

BSC gives a well-rounded perspective to how an organisation manages performance in

relation to its strategy by defining and monitoring performance in the four perspectives of:

financial, customer, internal processes and learning and development. Development



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37

objectives should be linked to career plans, the acquisition of experience and the development

of competencies (Armstrong and Murlis, 2004).

Results-based SMART (Specific/ Measurable/ Achievable/ Realistic/Time bound) objectives

should be linked to organisational strategies and plans. The researcher believes that adopting

the Balanced Scorecard does not reduce the importance of having a competency framework,

rather both methods can run concurrently and supplement each other as part of the

performance management system at the hotel. The BSC can only be adopted up to a certain

level of employees and as such a competency framework can supplement the Balance

Scorecard approach. The competencies of an employee will indicate the types and also level

of objectives that can be defined for the relevant Key Result Areas. As the competencies of

an employee are enhanced, more challenging objectives may be set.

Training and Development

The use of competencies in performance management is not limited to appraisals. Matching

of the current competency levels demonstrated by the employee with the competence

requirements of the job will pinpoint the competency gap or strength of the employee. Gaps

identified can lead to the identification of training in a proactive manner, whilst positive

behaviours can help spotlight high performers. As pointed out by Leat and Lovell (1997),

new competencies, craft disciplines and special skills may be exposed that require varying

degrees of training input, particularly in activities that are subject to rapid technological

evolution or are undergoing significant change in working practices. In the assessment of

training needs, care needs to be taken to establish realistic priorities and to recognize the

potential between individual aspirations and organisational needs, since the way in which

individuals wish to develop may not coincide with the future plans of the organisation (Rees

and Porter, 2004).

Career Development, Reward and Compensation Strategy and Succession Planning

The biggest motivation factor remains the development of career paths through enhancement

and acquisition of additional competencies and promotion to senior positions. Adopting a

competency framework also gives more scope for identifying high performers who can

progress laterally within the hotel. A broadband salary structure could be defined such that

salaries are not limited for any position and team members can aspire to any position at the

hotel subject to them acquiring the necessary competencies and skills. As team members

acquire new skills and competencies they could be rewarded through a wide array of ways,

including promotions, salary increases, job rotations, additional responsibility allowances and

international cross-exposures. This also provides the basis for effective succession planning.



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New Role for the line function

The respondents to the study discussed the support role of the HR function to line

management. HR has to support the line function, but line managers when exposed to the

benefits of an integrated HR approach based on competencies should take the ownership. In

turn, line managers have to train and provide the necessary guidance to supervisory staff in

the process. This would allow line managers to incorporate and embrace an ‗HR‘ function as

part of their role. Each line manager would have a concrete idea of the competency base in

their respective department at any point in time based on the grades the employees

individually score during their periodic or continuous assessments. The majority of the

respondents agreed that the line management tends to focus solely on manning requirements.

The HR function would therefore support the line function to embrace a shift in their focus

adopting the language of competencies and knowledge or talent base in their respective

department. Reviewing competence and development as part of a performance management

cycle will ensure a fully integrated and aligned process.

Contribution and Alignment to the Service Strategy

The third level emphasizes an alignment of integrated HR practices to the service strategy of

the hotel. The focus on competencies will allow managers to more easily identify and focus

on individual talents and additional competencies in the organisation. The reward strategy

will be totally aligned to the level of competencies of team members. Two of the respondents

referred to setting up quality circles or work improvement teams to look into areas of

improvements in the service delivery at the hotel. The competency framework will facilitate

setting up diverse and multidisciplinary teams at all levels of the organisation to elicit and

encourage creative ideas from its team members. The framework would allow nurturing of

competencies of all employees, especially front liners in delivering a superior service offering

but at the same time be aligned and equipped for anticipating future customer expectations.

This would be crucial for luxury hotels in enhancing their competitive advantage through

continual improvement of their service strategy through innovative offerings to their clientele.

Employee Commitment

It should be pointed out that the welfare and other recognition programmes discussed by all

the respondents could run concurrently with the competency-based HR framework. The

programmes could contribute to employee well-being but at the same time the framework

would ensure that there is a structured mechanism in place tracking the progress of the

individual employee. The competency framework would allow the measurement of both

capability and commitment of the individual employee.



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HR as a business partner

One of the respondents argued that after ten years of hotel operations the HR function needs

to reconsider its role and adopt a new approach. The new approach would however depend on

capabilities in the organisation, hence the need to acquire and nurture the right competencies.

The respondents agreed on the new role and competencies of the HR practitioner as a business

partner to be able to meet the challenges facing the HR function in luxury hotels. The model

suggested would necessitate a wide repertoire of skills and competencies on the part of HR

practitioner in order to adapt the competency framework to the context of the hotel. Only then

would the HR practitioner be in a position to tangibly show the contribution of the HR

function to the service process.

Application of the Model to hotels in other categories

Three out of five respondents commented that the HR function would differ in a lower hotel

category when compared to a luxury hotel. Yet, the researcher would argue the model

discussed can be applied to all hotels regardless of category. However since the model

postulates an integrated approach, a lower category hotel could find it more challenging to

attract individuals with higher competencies and adopt the reward and compensation strategy

practised in a luxury hotel. The researcher would however still recommend adopting a

Competency-Based HR framework integrating core HR activities in a lower category hotel as

this would facilitate alignment to its service strategy and optimize the contribution of the HR

function to the service process.

Summary

Berge et al (2002) observed that competencies provide the common language and concepts to

the organisation for it to integrate the human resources management systems (training,

selection, career, compensation) required in the performance management process. The

model therefore supports a competency-based HR platform through a holistic, integrated

approach aligned to the service strategy that will allow HR practitioners in luxury and other

category hotels to be better equipped to meet the challenges facing them. The HR function

can simultaneously embark on a Balanced Scorecard framework in its quest for higher

performance in all its service processes.

5.3 Limitations and future research

As is the case with most research, this study has its limitations but it also opens up avenues

for future research. The size of the sample was relatively small with only five participating

hotels and as such there are obvious limitations in terms of generalisability. However the

researcher believes that the sample was representative of the population of luxury hotels in



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Mauritius. Data generated represent perspectives from solely luxury hotels in Mauritius.

Therefore luxury hotels operating in different environments could face other challenges in

aligning HR integrated systems to their service strategy. Lower category hotels in Mauritius

are finding it even more challenging to attract and retain qualified personnel in order to

upgrade or even sustain the service level in their hotels and in improving bottom line

performance. The research could therefore be broadened and be the focus of future research

in different category hotels or even in different countries, where the tourism and hospitality

industry would be facing different challenges.

5.4 Conclusion

The rationale for this study was to investigate how HR activities can be aligned to the service

strategy in luxury hotels of Mauritius. Based on the findings and in the light of the literature

review, recommendations are made to direct the HR function to adopt integrated HR practices

based on competencies shifting away from a micro focus. It is argued that although individual

HR practices can contribute to the service strategy, the study points out that the contribution

of the HR function would not be sustainable and to the same magnitude than when adopting a

competency-based HR platform integrating core HR practices.

This approach will allow HR practitioners in the luxury hospitality sector to tangibly

demonstrate their role as a value-adding partner and not to be perceived as merely a cost

centre as highlighted in the literature. This new role of the HR function would however

require enhanced competencies on the part of the HR practitioner.



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Schneider B & Bowen DE, 1993, ―The service organization: human resources management is

crucial.‖ Organisational Dynamics, Vol. 21, No. 4, pp.39-52.

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pp.109-125.

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pp.340-348.



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Vakola M, Soderquist KE & Prastacos GP, 2007, ―Competency management in support of

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Appendix I: Questionnaire

Dear Sir/Madam,

This survey is being carried out as part of my MBA academic requirements, to research the

extent to which Human Resource practices are integrated and also to explore whether they

are aligned to the service strategy in luxury hotels in Mauritius.

YOU MAY REST ASSURED THAT ALL THE INFORMATION YOU PROVIDE WILL BE

TREATED IN THE STRICTEST CONFIDENCE AND WILL BE USED FOR ACADEMIC

PURPOSES ONLY.

General Guidelines

The questionnaire should take you about one hour to complete.

Thanking you in anticipation for your invaluable help. Should you have any queries, please

feel free to contact me.

Zjamil Coowar

Student Number:

Email :

Phone:



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Appendix II: Interview Transcripts

Respondent One

1. In your opinion what are the main challenges facing Human Resource professionals in

the Hospitality industry in Mauritius?

The main challenges today facing HR professionals in hotels would be the lack of qualified

labour and talent because we have many opening hotels every year and not enough supply of

labour, that is a very high demand and unfortunately not enough qualified people to cater for

these opening hotels and therefore, yes main challenges would be lack of qualified labour, this

is one, second challenge I would say due to the high demand and low supply of labour, we are

facing a situation of inflation in salary whereby people bargain left right incentives so that

hotels who want to retain their key elements they have to offer higher and higher salary. The

high turnover of staff due to the increase in the number of hotels and emerging sectors like

BPO and call centers opening, Ebene which target a lot of young people. The young people

who would not normally be interested in hotel career are very much attracted to the BPO

centers because they pay much higher salaries than us, attracting salaries, the emerging sectors

also in IT. We have also other do you say competitors like cruise companies, Dubai and other

countries nearby like Seychelles who pay very much higher salaries and also how do you say

and for the young people for them it is the opportunity to go abroad so they are tempted to

leave Mauritius for that also. So, we are facing a very very high turnover of staff.

Would you say that the average Mauritian is career oriented?

I would say that the average Mauritian is mainly is not career oriented but money minded yes.

At the end of the day, they will compare what is coming to them salary and make a move.

These challenges are going to worsen …and we have to think where are we going in

Mauritius ………..because we have that lack of labour.

2. Could you describe the orientation of Human Resource practices in front of these

challenges?

Well definitely I think now HR apart from its administrative and recruitment role we have to

be oriented more and more into developing innovative ideas and incentives to attract

applicants by approaching school leavers, training institutions and learning bodies.



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Innovative ways to retain staff as well and to find the necessary training to may be school

leavers and qualified labour. We will have to have this responsibility because if we cannot

find enough people who are trained and qualified, we will have no other choice to train them

as such.

Well I would say more of training, focusing more onto training, focusing more into coming up

with incentives, to retain the people incentives like change directly their benefits, their

conditions of work and all that the employees getting as a package working for you instead of

working for someone else, I think you have to go into much more detail.

3. What is the relationship between the Human Resource function and the service

strategy in your hotel?

4. What is Service Strategy? How would you describe the Service Strategy of the hotel?

Well, what I understand by service strategy is for instance hotel one focuses upon delivering a

personalised service to the guests. This would be our service strategy that the guest will see

the personalised service, the guest is not only a room number but he is recognised by his name

and is acknowledged in terms of its personal preferences, it may be the kind of food he likes

to eat, the kind of pillow he likes to use and that I would say the service strategy.

I would say that the HR function at hotel one helps to develop a culture whereby the

employees understand the notion of personalised service as from the first day they enter the

hotel, in fact we have an induction day that is quite developed, it goes on for four days. From

the arrival the employees go through a whole list of courses and counselling, so that the

employee really understands where he is working, they have to work towards personalised

service and later on they are also offered training courses in line with their development.

This plays an important role because since the day of arrival the employee is really made

aware that this is what we have to achieve.

How do you ensure that employees provide a personalised service?

Well we do have, I‘ll say recognition as employee of the month, rewards and letters of

congratulations, employees who are being mentioned on guests comments cards. We have a

guest satisfaction comment card that is given upon the departure date where they will note

down the outstanding service and mainly for the employees who have been outstanding so in



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this way I think by recognizing and rewarding them that contributes to their desires to offer a

personalised service.

5. Does line management explicitly and comprehensively considers workforce issues

during the department strategy formulation process? If so, How?

Well I think that for instance if turnover is high the department heads t regularly communicate

their manning requirements. The new recruits however are not as efficient as the one who

have left, then personalised service become a real challenge for the line managers. Therefore

communicating the guest profile is then done in daily briefing and through departmental

notice board so that anyone working in these departments can get access to these information.

No, definitely there would be a focus on people issues.

6. Explain how the hotel and the HR function monitors the changing needs of its

customers to obtain sufficient information and insights for future planning.

Well, in terms of guests I would say that the changing needs of our customers at hotel one are

monitored by our guest satisfaction questionnaires mainly which is handed in on each

departure. For instance a high percentage of guest requested the second dining option in the

evening instead of only the main restaurant and just quite recently we did offer a second beach

restaurant for dinner such that these changing need will cater for. Now coming to the

changing needs of the staff I would say that we have a yearly staff satisfaction audit that is

done by Gallup and whereby it is an alignment survey such that we get information about staff

temperature and then we have to take into consideration the result to move forward.

HR does not really monitor but rather gets the information from operations.

7. Explain how the hotel encourages suggestions and innovative ideas from personnel in

order to improve service quality and delivery.

Well there are different opportunities for them to give suggestions and ideas. One of them is

during appraisals which are conducted twice a year. The employees and their head of

department discuss about not only the employees achievement but as well as the challenges

facing them in their work and then ideas are discussed. Also weekly briefings are conducted

by the head of department with their teams wherein suggestions and ideas are openly

discussed and encouraged.



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Is there a structured process in place to elicit ideas and suggestions from team

members?

Yes, I mean its not that structured but when you go through the appraisal forms you do feel

some interesting ideas that come up that the head of department himself would not have

thought about. Some of the most interesting ideas could later be implemented.

8. Explain how the hotel gains employee commitment in enhancing the service delivery

and quality at the hotel.

Well at hotel one we base ourselves on the comment cards collected after each guest

departure, we combine the comments into a monthly results and comments are shared with the

staff at each monthly staff meeting in the presence of the general manager. We have rewards

like the best employee of the month reward and a voucher which is given for outstanding

service given by employees. We have an appraisal rating which is followed by a performance

bonus payment and employees who are rated above target would get a higher monetary

reward than employees who reach on target or below target. Also, apart from the guest

satisfaction questionnaire, a yearly recap of the hotel performance against targets is carried

out and if the hotel as a whole achieves a certain percentage exceeding expectations then a

bonus is given to all employees. We also organise a series of welfare activities for the staff

which in a certain way also help to gain employee commitment and participation.

9. On which HR systems does the HR function focus more in order to contribute to the

Service Strategy and delivery at the hotel?

10. Can you describe how these systems contribute to the Strategy of the hotel?

Right now I think we are focusing a lot on the HR objectives for the coming years also. The

training system is given a big push so that almost everyday we have training courses whether

it is on the job or behavioural training given to employees so that they can achieve a higher

performance. We have also the appraisal system linked with the performance bonus system

which is working quite well in terms of giving the incentives to the employees to try to

achieve a better service.

11. Does the HR function encourage an alignment of these systems? If so, How?

Now I must that as training falls under HR, the HR function develops, implements and

encourages the training initiatives and also monitors the appraisal system closely so yes

somehow somewhere it is all linked.



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Integrated HR Practices!!!

I think that it can be much more integrated now. I think a lot of heads of department are still

sometimes reluctant about sending people to training because they do not feel the priority and

sometimes we do face challenges like they would say: I do not have enough staffing.

What I would say we need to have a very structured process or platform that would help to

evaluate the specific skills of the employees so that the line managers can follow up with the

process and see if we have increase competencies or if we are focusing on talent. For

example, let us say a new comer will join as waiter and I would say that he has to learn plenty

of skills like how to greet a guest, how to do the mise en place, so the line manager would

have to evaluate the employee regularly to see where the person has reached, whether he has

acquired that skill or not. Then it would be very structured, instead of a twice yearly meeting

during appraisals, it would be more on a day to day basis.

13. What are the competencies required of HR professionals given the current

challenges of service excellence?

I think HR professionals now need to be multi skilled and tackle not only administrative

functions like recruitment, preparation of contracts, deal with transport issues etc. They also

have to look at innovative ideas and propose strategic issues to face current challenges.

14. What is the difference between the Service Strategy of a luxury hotel compared to a

lower category hotel?

Well what is going to my mind first would be like I was saying luxury hotels will have to

focus on a personalised service as well as transfer an efficient service which a guest is

expecting when he comes to a luxury hotel whereas I would say that in a lower category hotel

they need to focus more on delivering value for money and the guest is less demanding in

terms of service level. For instance, in a luxury hotel the guest will expect an a la carte

elegant service………….collection of fine dishes whereas in a lower category hotel the guests

would not mind to queue up to get access to the buffet where there they have a limited choice

of food and the expectations of the guest are different from a luxury and a lower category

hotel.



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15. How different is the HR function in those hotel categories?

Yeah, definitely even the HR function will be different also due to the difference on the

guests‘ expectations. For example the selection standard in a luxury hotel would be much

higher in terms of personal appearance, grooming, polish, level of education, language skills

and the training part of the staff would not be the same as in luxury hotels where more

emphasis is put on you know on personalised service, attention to detail and language.

How did you find the questions?

Well I found the questions very interesting and quite innovative because normally will think

HR functions in these terms but I think that more and more we are evolving towards this kind

of HR role and it is time to reflect on where HR is going and what should HR really be. So I

must say that the questions are very profound, deep and really make you reflect on what HR

is doing right now in Mauritius.

Respondent Two



The challenge in Mauritius is to find the right fit for the organisation, that is people is moving

a lot, we have the issue of competition in the hospitality industry and the issue today is to find

the right pearl for the organisation. This becomes the biggest issue today.

So this is in terms of the right fit and the turnover, and the high competition prevailing in the

industry among hotels. These are the main challenges for this industry and which I believe

will keep increasing.

What about in terms of competency level, skill level?

This is the right fit…we cannot buy it, that is the issue, when you are looking for people

outside, the level of service you have to offer in this industry, you will never get the right

man, that is the issue.



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2. Given such challenges how do you orientate your practices in terms of HR, in which

direction do you focus more?

We try to get people with the right attitude; this is the first thing we look at. Then we look at

the expertise that we can mould to bring at a certain level, someone may come from a hotel

school or from another 5 star hotel but that does not mean he has got the right attitude or is not

willing to go in the direction we are looking for, so we are not going to take that person.


I would not say career oriented, they are mostly money oriented in this industry people are

moving around because of a certain amount of money, if they were looking for career, then

they would stay in the current position and build up their career from there.

We come down to the contribution of HR to the service strategy. How would you define

service strategy and how would you describe the service strategy of the hotel two?

We at hotel two we are very customer focused, we go beyond customer focus. We do

whatever we can in our capacity to ‗wow‘ a customer, the wow effect should be there in all

our actions, it cannot be only once it should be permanently on the lips of all our customers.

So what we are doing as a manager, what we can do in our action, and it is there that is

driving the living of the organisation, the main objective. So everyone in their job go

according to this mission in the head that we need to wow the customer.

3. & 4. We are talking about the contribution and the involvement of the HR function to

the service strategy. What sort of relationship do you see there between the HR function

and the service strategy? How would you describe that function?

It is an easy function I would say, I would say the HR function not separate from the service

we are part of the operations. We are facilitators of the operation. We are the people who are

there to help in a certain way, we are not leading, we are not the boss around but we are

facilitators for all the operational people making them do their job in a certain way that will

help the organisation, hotel industry because at the end of the day these people are managing

people. They are in short our HR managers and we are here to manage. Three important

things for them we are managing their time in a certain way trying to make it more effective

for them, we are advising them how to bring about efficiency in their work getting the

maximum in a very polite and diplomatic way from their partners and team members, and

trying to regulate everything that they do in order for them not to go beyond the limit.



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5. Does line management plan about workforce issues when they define their strategy at

the departmental level. In other words to what extent do line managers engage into

people issues when they define service strategy?

Being part of their job in a certain way, it is linked to what they do the service cannot be set

alone without solving the people issue there. They work together with it, when they have a

challenge in front of them, it comes together with the issue because they are managing a group

of people. If it is not solved, they cannot go for it. We as HR at that point in time, if ever

they are facing any difficulty, we act like a counsellor to them. I do not get involved, only

when they reach a deadlock then I get into it. If they are getting problems in managing their

people in their department, in developing, in getting the chance to meet the challenges, this

should come up in the one to one I have with them and if this is coming up recurrently, then I

have to prepare a plan for them.

How does the line management include that in their agenda and how they manage it?

Lets start from the beginning. When we do recruitment, they (line managers) are involved in

the recruitment of that person. So if he (the line manager) is taking that person on board, he

must be fully aware of the strengths and weaknesses of the person, so from there the

weaknesses, he will have to cure it off. The strengths will have to be developed. The strength

can help him to grow his business and at the same time to grow that person. He must be fully

aware who are those people who are normally talented and what he is planning to do for that

person. We have what we call here a career path. The Heads of Department have to come up

through their performance appraisals every year who are the people who are the really

talented one, who they want to develop or grow. These people who have been identified, we

come up with a career development plan for them.

Does the line function speak in terms of manpower requirements or desired talent /

knowledge base and competencies?

I would say both.



It is not a question of monitoring but a question of how I get the info and how I plan my job

with regards to what am getting. I take the example of hotel two since its setting up in 1975



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and over the years, the clientele was mostly a young client with a certain budget. But

nowadays, we have a family oriented clientele so our objectives are to go for the family and

my role is to ensure that there is investment in people for example in everything that is related

to the family, for example the kids, the women that come here that are alone, so all these

departments need attention in a certain way. Attention in getting the right budget, the right

budget, the right training for the right people. For example the people working with the kids,

they need to know how to handle the guests‘ requirements they know how to react and

communicate with them.



We have a hospitality competition, people file a questionnaire and they can drop their idea, for

a period of time that is given, a month, whatever idea can please, excel our customers or can

grow the business as well. This is in a certain way a competition amongst everyone. We

gather all the important ideas, choose the, and we see whether there is not much investment in

it and if we have the budget for it and will grow the business, then we go for it.



They are part of the business and they are more concerned about everything that is happening

because they are being valued, there service is being looked after and we try to provide with

whatever they require to improve their competency. They feel very cared, because we say we

strive to blow our guest, it is all linked in a chain, so we try in a certain way to provide these

services to the internal guests as well so that these people feel more at ease to come at the end

to give whatever is required to the guest. Like in most other hotels we also organise picnics,

parties and other welfare activities which indirectly help to gain employee commitment.



Training.

And how do you see the other HR fundamentals?

They are part of it. Because if you do not recruit the right person, you have a high cost in

training, the issue of retention of the talented, then there might be other issues as well. I

would say that all HR systems contribute to the service strategy.



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We were talking about the key contributors, training and development linked to talent

management and recruitment of the individual. How does this system effectively

contribute to this strategy? When you actually recruit someone, you ensure that this

person, or when you create a career path for someone how do you ensure that this

contributes to the service strategy?

A close monitoring that we do. On recruitment we do an induction and on a 3 months basis

follow up. The person needs to provide me with an appreciation of what he has achieved and

learned during the 3 month. These 3 elements give us the possibility to see how we can help

the person. Then there is another part of it, the Head of Department give his own appreciation

of the person. Then we have the one to one, and we have to define a strategy for him, trying

to see how we can help. After three more months, which becomes a 6 months basis, another

review with a lot of emphasis on the weakness of the person, trying to see how he has been

able to eliminate or try to improve. Thereafter, another 3 months, and if the person kicks off

there then definitely the person is in and in which level we can group him. We have different

groups of level, group 1 group 2, group 3 or group 4, categorising each person.

Is this structure in place only at hotel two or in One and Only?

It is One and Only

We base ourselves on written statements and one to one talk, to group the employees

according to levels.

So in a way there is s structure in place that allows you in a way to measure talent. and

classifying it. If you have to say how do you ensure an alignment of these HR practices,

you mentioned; how you nurture it from recruitment to training to development, you

already explained to me how, I won’t really go deep into that but question no 12 is a bit

further on to what we are discussing; to what extent would you way say that HR

practices of you hotel are integrated, that one is linked up to the other?

I will not say it is100% working because we do not get the right person all the time. We have

at hotel two 75% of the people are here since 30 years, so. I have on board people who are

not the right match. Only the new recruitment that I am dealing with I try to put them in

different categories. I do not think we are using the whole system fully.



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Would you think of let’s say enhancing the structure you have in terms of regrouping

and categorising talents and competencies? Even if you apply this structure to the

employees who count 20 or 30 years of experience they might have certain experience

that you might actually enhance?

They have already been categorised, I am not telling you not, but these people have not been

recruited in the proper structure. My expectation is let us say someone who has let us say 10

years, should be in category A but unfortunately its not that, it is not the right fit. The system

integration that we have here is good but can not be applied fully here at hotel two. If there is

the opening of a new One and Only definitely I will get it work. I will get the right people, if

the market provides it.

If you can do one thing to improve the structure you have, in terms of categorizing

people, what would that be to adapt it more to the challenges you are facing

I am happy with it.



Wow big challenges in front of us! I would say that HR is a partner of the organization,

meaning the people, the business and the stakeholders. Before when we were talking about

HR we were talking only about people, now we should talk of the three. If we don not have

the three elements nowadays I would say one is not a good HR because all three are very

important for the survival of the organisation.

What skills and competencies would the HR professional require would you say?

It should be someone who is very people oriented, it should be someone with a good financial

acumen, and it should understand al well about all the requirements of the stakeholders and

how to make them fit in the organisation.

14. What is the difference between the Service Strategy of a luxury hotel compared to

that of a lower category hotel?

There is not a big difference in a 3 star or a 5 star, service should be the same - what makes

the difference is the people that give the service. How the people give the service in a 5 star

compared to a 3 star and what are the possibilities given to this people. I would say for



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example at hotel two the standard required about someone coming to a hotel, should know the

name, should know the likes and the dislikes, to greet the person by the name, this is the

concept of this hotel. Whereas in a 3 star hotel. are they capable to give this level of service?

When we take a calculator we see that a 3 star hotel cannot give this kind of service but if you

want them to give it, they can give only if they can pay for it.


Obviously it differs. It is the organisation that dictates. I believe the HR manager‘s role

includes three aspects, the financial one, the people one and the stakeholder one. If you are

working in an organisation you cannot say that ok, I am being dynamic today. It all depends

where you are and what is required and what you have to give in. The organisation in a

certain way dictates your role, I am not talking only about local Mauritian people, I am talking

about abroad as well.

Respondent Three



The first challenge I think scarcity of labour. Secondly is basically that we have an attitude

problem is to ensure that the person comprehends the culture of the company and is also

imbued by the culture. It is very difficult for certain people to understand the culture of the

company well.


No, the average Mauritian especially in the Hospitality sector is not career oriented.


challenges?

Well given these challenges, I think we should be more aggressive, we should go towards the

hotel school, towards the secondary school and influence people because what is happening

now the hotel industry was some years back the sector which was best paid and now it is the

BPO sector and other sectors that are emerging that are the best paid and the working

environment is better than the hotel sector because here they will have to work in a restaurant



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huhh and the salary there are basically double than what we are having here and that is why

those difficulties. So one of the things would be to go to the schools, also job fairs to look for

candidates and although some people say that they do not recommend to have expatriates,

eventually in a few years we should think of recruiting expatriates to do the job because we

will not be getting people.

Would those expatriates be lower lever or upper level?

Lower level, because we already have expatriates at the upper level so why not expats at the

lower level? If the situation continues as it is we should eventually come to that option.



Well the human resource function is basically a support function to the operations department

because they are the department that provide the service, the front liners that provide service

to the guests, the HR department is basically a support service that starts from the recruitment

to ensure that those people we are recruiting are good people and also to ensure in terms of

support in terms of uniform, they go by the grooming standards, they are at the job in time,

they do not have transport problem, they are well treated. So basically I think this is the main

function of HR, it acts as a support department.


Well, our service strategy is not a secret to everybody and I think it is not a strategy as such

but I think that our objective in the service is to exceed guests‘ expectations with a

personalized focus and if you look at our vision and mission it is said clearly that is what we

should achieved. I think there is no magical strategy, I think that the objective of service, the

service is to ensure that we exceed guests‘ expectations and that the guests come back again.

I think this is the final concern of strategy.



I think that line management should and must consider workforce issues during their

department strategy formulation process because we cannot achieve anything without the



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people. So when we draw our departmental strategy, certainly the line management should be

involved in the process, it is not a process that is separated.

In this process would you say for instance that the line managers would come to you and

say I need such and such many people to recruit, would at this point in time, would they

come to you and say I need such and such or competencies or knowledge base in my

department.. Do they talk in terms of talent, knowledge or competency based or in terms

of manning requirements?

They talk in terms of quantity and they also talk in terms of talent base because when we are

recruiting people, we recruit according to their talent and know how and this is part of the HR

contribution to the operations department. We certainly look at the talent if Heads of

Department are coming to us with this kind of request and it forms part of our strategy also

that when anybody is recruited for his knowledge and competences and also he goes through a

major induction programme before really going into operations. In terms of quantity of

people, as you know we have a budget, so normally if he has his budget he will not come to

me and ask for more unless there is a major change in the operation but if there is no major

change in the operation, we would look at it exceptionally like as if the Housekeeping did not

have a laundry and has a laundry now certainly we would need additional people.



Well, the HR department does not really get involved in the changing needs of the customers

as such, basically it is the sales and marketing, although I am involved at a certain point in

time.

At which level do you think you get involved in keeping abreast of the changing needs of the

clients?

I get involved for example if there is certain training to be dispensed but our structure here

provides that the HR and the learning and development department function independently.

Training does not fall under me, training falls directly under the training department and that

department reports directly to the General Manager and as such this is the only way that HR

and Training can work on the changing needs of the customers.



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7. Explain how the hotel encourages suggestions and innovative ideas from personnel in order

to improve service quality and delivery.

We have a process which we call Idea Champ where we request for suggestions from our staff

where they can improve processes, help in saving money and those people are recognized at

the end of the month during a townhall meeting. We have the Star programme, which also has

a programme linked to it because the star is divided into 3, compliments from the guests,

compliments from the colleague and we have suggestions. We also have an employee welfare

committee where we meet every month, where we discuss about processes, not only about

staff issues, how the staff can contribute to improve the quality and level of service and

improve guest satisfaction.

The rewards and recognition, as I just told you we have 3 basic cornerstones, comments from

guests, comments from colleagues, and then suggestions. Suggestions are basically when a

person suggests something for the improvement of work, of service or anything. So we focus

on these 3.

Ideas will be implemented if the budget allows for it. A committee undertakes the

implementation side but the contribution of an individual employee is recognised throughout.

One example could be for Standard Operating Procedure bearing the name of the employee

who came up with the original idea.



You know its not one specific action that will make you have this commitment from the staff,

it is a series of actions, I think recognition is very important, we have the star programme

which is basically a very good recognition programme, besides that we recognize people who

do acts of honesty, we recognise that in our time hold meetings, these meetings themselves

are organized every month by one department with a lunch at the canteen, they decide what to

serve, the do sketches, quiz, a programme for the whole day. Besides we have welfare

facilities, a lounge where they can sit, watch TV, a place to play carom, we organize picnics,

etc. Besides all, what I think is very important is how the Heads of department interact with

the staff, I mean do they listen to their problem? Do they personally get involved in their

problem? Do they talk to the staff, I think this is the most important factor. If an employee



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has the feeling that he is listened in his department, you will have the commitment and this

will lower the turnover. I think we have a series of things that we can do.



We have training because our training department is very very active, recruitment certainly,

because our recruitment process is very stringent, although at times we have to overlook

because of the scarcity of labour--- the interview is held between me and the Head of the

department and a final interview with the General Manager. Recruitment I think is also one of

the contributors. I think our welfare activities are very important, we have a very expensive

welfare strategy because we want the concept of have fun at work. We want them to be

happy, if we want the staff to give the service to the guests, they need to be happy. But

welfare would be a subsidiary contributor; I think the main contributor would be the

recruitment and training.


I‘ll jump to number 10 directly, let us say you take the recruitment process, how does the

recruitment process add to the service that is being delivered to the hotel?

Well, after the recruitment they have the 5 days induction programme, whatever the level of

the person being recruited. He does not touch the operation within the 5 days. Induction

deals with the hotel three philosophy, hotel three standards, so there is a sort of a big

programme. Besides this you have the Standard operating procedures (SOPs) and then you

have the hotel three luxury experience, which goes together with the SOPs. So all these

contribute to the service standard.


Yeah, I think certainly the HR encourages an alignment of the recruitment and training and,

HR is basically a support function.

12. To what extent are Human Resource practices integrated at your hotel?

Now if you take the performance management system, compensation and reward, they are

linked. We have a balance scorecard system, where we have processes that are normally

attached to the BSC and are linked to Key result areas. At the beginning of each financial

year, we receive the Key result areas from the General Manager and then you get the target



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that you need to achieve and the Performance Managemen system will look at the fact

whether you have achieved the objectives set by the Key result areas s or not. You are

evaluated on these Key result areas, it is quantified in percentage, in numbers and basically

depending on the percentage, on a scale of 1 to 5 you get the bonus. We have also an

employee satisfaction survey which is conducted by GALOP, an American company, we do

that in the month of March and April and the results are obtained within one and a half

months and there is an action plan which is made from the results where we deal with

different aspects of employee satisfaction.

How do you actually ensure that the system is linked to the Key result areas and BSC?

Well the measure is in the turnover, how you are treating the people, it is in the turnover, in

the Key result areas for example you should have a maximum of 10% of turnover at the end

of the year.



I think one of the competencies is mainly leadership and I have interacted with many HR

managers, but I think that leadership skills are vital. You should not be just sitting in the

office and trying to manage, he should be the leader by nature but not by virtue of his

profession. He should be able to practice whatever he says, walk the talk.

What about technical aspects?

I think an HR manager should be very creative and adaptable to change and should have a

very influential personality and be able to influence people to change.

14. What is the difference between the Service Strategy of a luxury hotel compared to a lower

category hotel?

I think there is a difference in the strategy, because with are dealing with a different category

of guests. If we look at the five star hotels in Mauritius, the guests have a different style of

life, a different circle, very rich…the difference in the service strategy is that the service

should be class…for example here at hotel three the service at the restaurant is a la carte.

This is the strategy. A service is a service by itself, if you are serving a coffee in a four star or

in a five star property but the difference would be the cup in a five star would be better that in



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a four star, the furniture would be different, the employee would talk English and French more

fluently than in a four star hotel.


I think it would be different, because we are dealing with two categories of people, it is a

matter of competence and skills and the skills you would find in a waiter here and a waiter at

sofitel would be different…I think our waiters can work in any of these kinds of hotel. The

quality of the staff, because you are dealing with people who are more aware of things, who

think differently, although the function is same, the approach should be different.

Would you be doing the same things that you are doing here at hotel three if you were to be

posted in a four star hotel for 1 month? What would be the difference?

The processes would be different because we are a small hotel compared to the others but the

amount of things that I do is completely different.


I think the questions were very relevant.

Respondent Four



I think we always need to stick to the basics you know, the basics are the most important

things, I am sure all my colleagues who responded to your questionnaire probably said the

same thing, we might go to generics and then may go the specifics. But in terms of the

generics, I would say that all HR professionals would face the issue of recruitment and

selection, it takes 30-40 percent of your time depending on your strategy, annual strategy,

whether you want to recruit or do a selection etc. it is one of the major factor that needs to be

looked into. It is a trend, the different sectors which are also acting as competitors like the

outsourcing sector is offering much more than we can do. Today unfortunately our basic

salaries for the rank and file are pretty low in comparison to other people in the BPO.

Somebody over there is earning some fourteen to fifteen thousand whereas the starting salary



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of a waiter is what, six, five, seven thousand. So this is really big big stress. And I think the

market changes and the mentality changes also affect recruitment because people just want to

have money quick, fast and the cheapest way possible, here this is definitely recruitment and

selection. So recruitment and selection is the basic and if we do not work on it, the HR in the

tourism industry would just go down.

The second part, let us come down, if you are recruiting somebody you need to know how the

person is doing on the field, and I think we are talking about dashboard, objectives and

dashboard. We are talking about performance management and the basic of performance

management is performance appraisal. Now is performance appraisal being done in a very

regular, structured manner? I would be inclined to say yes but unfortunately if I base myself

on what is happening here a the moment, it is done but it is not done in a very scientific

manner, and it is not done in a systematic manner, we are having a major problem, because

we may not have line managers who would be well trained in doing performance appraisals

and I think that unfortunately either the people are not being trained for it or unfortunately

they do not have the receptivity for it. Because you could be an excellent technical person but

when it comes to more conceptual, it is really difficult. So performance management is also

definitely a challenge for us in this sector. Being able to get a structure, being able to

implement the structure and being able to evaluate that structure that would be the ideal

situation. I think we need to do it, we need to stop at the moment and this is what I am doing

at the moment, I will talk to you about that it is called the ETRE (Experience The Residence

Excellence) project. This is simply the vision, mission values, belief of the company and

from there I would move on to the objectives setting where all executives will have objectives

to set over a fixed period of time and then see how well they have been over the six month

period. So performance is not only for the rank and file but performance is also for the other

category level we are talking management we are talking supervisory level, we are talking

rank and file and this is definitely very important especially when we are talking about global

development. That part of performance is critical and I believe that all companies in every

sector should have this performance management structure. So that we know where we are

aiming and we know where we are going. And then obviously the other part is especially in

the tourist sector, in the hospitality sector people tend normally to stay long on that sector,

may be not in your company but in that particular sector. Even if you are not growing in a

company you are going across companies, there should be some kind of career paths;

succession planning and I think that HR needs to be lucid enough to be able to grasp this

reality and when a person comes to your company you say, well here is your career path, this



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is what we have for you, this is the incentive to keep you with us, because if you are with us,

you are in an asset because if we consider you as an asset we expect you to do this and this

and this. So once again the other factor is the career path. I am just sticking to the basics, am

not going into the more complicated stuff but now a more generic type of thing, the specific

would be in terms of training, every single level should have customized training in respect of

their level, social level, intellectual level, economic level. Training, when we talk training we

talk about development and growing. If you know where you company is going you should

know where you staff is going. So being able to gear the staff towards a particular vision,

through certain mission, it is a hard task, and I believe that the training needs to be systematic

and structured, it needs to be categorized, so that whatever is given as training is also used as

stock and obviously maintained and improved over time.


The average Mauritian is not career oriented, unfortunately. I think the concept is there, if it is

not there it is because they have not heard about it. Career orientation thing is still very

blurred just because they have not been exposed to a particular environment that would give

them this kind of food but it is true that HR professional are very much aware about it but

whether they do it or not, this is up to their own strategy but I believe that it should be

integrated and the staff should be made aware of such possibility within an organization If an

organization is productive, it means that it is growing and if it is growing, it is not growing

only economically or financially, it is also growing in terms of essence and you know the

basic essence is definitely people. So you need to take it for them, you need to ensure that

their minds are with the company that they keep abreast of what is happening in the company.

Lets get to the second question, I think you’ve touched on this challenges as well guiding

your orientation of HR practices, so would you say that the practices you mentioned in

the first question would be the way to go for?

Emmm am sure you know all roads leads to Rome, that is the saying well I believe that there

surely be shortcuts to Rome but in a shorter, cheaper way depends on the function, may be yes

may be not, it depends on your analysis and whatever your strategy is but definitely this

would be part of the different elements that would help attaining this goal.



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So if you have to pinpoint on specific HR fundamentals, like you have mentioned

recruitment and selection, training and performance management. Are there any other

core HR fundamentals on which you would orient your practices.

Yeah there is one I forgot. Rewarding could be monetary, financially, verbally, different

kinds of reward that exist. In terms of incentives, I think it is important when you have got

different kinds of people, Mr X would not be like Mr Y and I think that in terms of their own

caprices you have to make people happy and define/decipher what type of people he/she is

and actually it is important to get into it when you are doing the interview, as from the onset

you know what kind of person you have, to know the different likings for the person, what

would eventually motivate somebody to work in a particular dimension and what would not

and in respect to this you get the profile of that person, where you categorise that person in

teams . Yes Yes, listen guys we are working here in an environment that is mainly controlled

by money the economy is such that we cannot do otherwise in a materialistic world so that

would be the hope. Unfortunately I am an HR person and I totally acknowledge that.

Philosophically I would say no, but I have to be honest with myself and with the market. I

should not try to blow myself from the reality of the market, and from the different mentalities

and prospective that people have in the world. People want to be happy and to be so, they buy

happiness and they work for it, so that they get money, they buy family happiness through a

meal, or a movie or whatever. So basically incentives would completely command.

You mentioned about all these core HR fundamentals, recruitment and selection,

training and development rewards strategy, performance management and you’ve

mentioned career management. So would you focus on them individually or all together?

I think that every single part needs to be well structured because they are interlinked. I think

it is part of a whole that would lead to a synergistic effect which you know well. The

approach that we should have should me more holistic and individualistic because if you

consider one particular part to the detriment of the other, then you will end up having some

kind of flaw in your hotel strategy. I think that 1 + 1 =3. I think that if we can get all these

together with a very good approach, you can go very far. Now the reality is do we have all

these structures on going? That is why we are here, we HR professionals just trying to make

sure that it is going to happen and I have to admit that it is very very hard, even the basics of

basics, recruiting and selection. Just to have a SOP regarding recruiting is hectic because it



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not only depends on you it depends on your peers it depends on Executive housekeeper, is the

criteria similar to that of F&B whatever. So you have to come with a chart or matrix that

would guide HR, once again HR would require these info to create its SOP. So is HR

independent? No HR is a partner in Business and being a partner can only sooth things and

make it smoother. It is all a question of buy in, agree or disagree. I think HR as a business

partner would be the way to go, and a partner is a confront, and a confront is not only to

specific area it is holistic and that is why I am saying these different management practices

should be seen in a whole and not only individualistic kind of framework.



Strategy is fine to understand, service is a wide word. Service for me, The Residence, we have

been hitting on that word for long now, it is quality. When we talk about quality we talk of

satisfaction. when we talk of satisfaction we are talking about excellence, elegance,

professionalism, customer care, continual improvement. So if strategy entails everything I

have mentioned then it is close to service. But I am sure there is something else to service.

So if you have got all these ingredients, to make a nice recipe, and you cannot get that kind of

human approach thing and then is something missing. You can have fantastic window frame,

fantastic cement and a fantastic house, but how welcoming is that house? It depends who is

in? So that is the part where HR comes in again, that human kind of thing to service strategy.

How do we make sure that the service that we provide is up to standard? Ok let us take a

benchmark, international standards, leading hotels of the world let us say so as HR people we

need to train staff to ensure that there is a minimum service standard respected. Having an

induction is not enough, I think it needs to follow some kind of repeated pattern because

whether you like it or not there is the idea of not manipulation and not indoctrination, but

there is the idea that people need to internalize these kinds of information and they need to be

remembered that this is service and this is how service is to take place at hotel four and this is

how people or customers coming in will write the service that hotel four provides because we

have a satisfaction index and we know from repeaters that we have (30%), we know the liking

and dislikes. So out of hundred clients, 30 clients who have wims and caprices that you

already know, you just need to take advantage of this and ensure that the service you will

provide is part of the expectation this is critical. HR should be visionary and service the other

departments of the hotel.



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The service strategy of the hotel I would take the tag i gave you earlier on Experince The

Residence Excellence. . We worked on it for a long time, we came up with that acronym that

really correspond to our vision, beliefs and to the values that we cherish and been cherishing

over time. I think that would be my answer.


Excellence, elegance, customized like I said HR is a business partner, it needs to be

acknowledged not only appreciated that HR is as vital as any other department. Fortunately

for the past, I would say for the past decade, even though HR is growing in terms of scope,

people are learning more and more about HR and is also progressing on its own in terms of

theory, capabilities - it used to be personnel management, now its human resource

management, hopefully in 10 years time it is going to be Human Being management, may be I

would be called or you would be called a human being manager, that would be fantastic. It

should be seen as a business partner, acknowledged as being vital in servicing the different

departments of the hotel. This is central, whether you like it or not, I mean the other

department would be seen as individualistic department even though they work together, but

what I mean to say is that HR is central to all these department because when we talk HR we

talk style. So basically if you want to succeed, all the information need s to come back to HR,

it is an area of convergence, it is there where all info are gathered are collected, and where

decision are made, not all decisions, but when it comes to staffing, management should be

seen as an advisor, HR should be seen as consultant. This is our job. What I do mean is

whatever we express in our opinions and ideas should be totally objective and detached from

the operation. We need to get that approach, ohh you do not like it and I will show you why

and you will have to respect it because the HR is here to help you. I think that the relationship

needs to be a very strong relationship between the other service and functions that promote

this type of strategy in the hotel.



I would say to line managers, I think we need to provide them training because it is also a

question of intellectual capacity. Has the person sufficient room in his mind to gather all

these info or to understand why we do this or why we want this. I feel we need to provide

them with the right food so that they deliver the right work.



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Does the line function come to you in terms of manning requirements or in terms of

competencies or talent base?

They talk in terms of manning huh they say manpower is really affecting my job, I am

really suffering I need 2 guys. You tell me to recruit 2 guys, you want a headwaiter, an

assistant headwaiter, what do you want? This is a piece of information that might seem really

ridiculous but which is very important because we are talking competencies here. Somebody

who is there to assist senior jobs as restaurant managers, this should be the first thing that you

should request the HR, I need somebody with that typical profile with such abilities, can you

find me someone? Unfortunately it is not formulated that way because its crisis management

unfortunately. If you invest on somebody, the money gets out of your payroll why not make

sure that the money you are investing in that person can be for future time, let us make sure

the money that you are investing now will bring back some ROI. Again it is a question of

perception, on commenting on how we want the strategy to go but again the basic factor is

time; let us take some time to do it.



It is true if you look at the records you would see in September it is time for honeymooners

and we can predict for 2009 in September that would be the honeymoon time or vacation for

children. It is seasonal, it is not only seasonal but it is coherently seasonal as every year it is

nearly the same pattern. We can generate statistics.

I think before giving a heuhhh in this kind of collection of data, there are 2 levels, the first

level is definitely the front liners to work on, am I saying something coherent here?. I think

first of all you need to know the profile of the customer, let us take an example, the example

of the honeymooners, getting married a second time. Lets say the couple is coming in now,

say with us for 10 days, very much enjoyed their stay and had a fantastic wedding because we

offered fantastic incentives or extras and the guy comes back again in four years let us say

2012 and wants to marry again, how would we, I have absolutely no clue, logically I would

say that we would go according to his early profile right, try to offer the same thing, that

would be silly, then I do not think we can answer this question though. The rooms division

will work on that profile to get things straight, the HR would only comment for creative

issues, innovative thinking. So the first level would be the rooms division department

generating info so that the HR can work on it and come up with new strategies in terms of

training and development so as to train the staff. Well what kind of staff HR could provide to



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these front liners? I really do not know!! I think that we need to work on it since it is more of

a kind of agreement between different partners. We have to improve we cannot offer the

same thing but I have absolutely no clue, I cannot answer this question though.





A very common thing is that we have team meetings, we have surveys that we do and we

have suggestions box. Now, team meetings are like a committee with the General Manager,

the HR and a few people, normal staff between five to seven, we try to pick up different

people every month and we have a very broad perspective of what is really happening and we

also give the chance to everybody to share what their likings are. So team meetings are very

very important because then they feel praised, there is a hope that our wish will be considered

and surely we HR try our best if it is within budget and if it is reasonable and if it is not then

we give feedback that well it is with regards to these constraints that we cannot.

The second thing that I said is the suggestions box, but it is true that over time people forget

about the suggestions box and so they have to be reminded. So today itself at 3 o‘clock we

are having a canteen committee because we are changing the food, the menu, and the chef

phoned me and said hey hey hey you know, I have that objective that I have to sell up so

could you do a survey for me. I said no problem, I got something for you online, just

download it and then you can sell it, and then work it down, questions bla bla bla and I think

that the questionnaire is also very resourceful because it provides us with information that we

can work on you know and huhhh so this is also very very important.

Now commitment, with this new project that we are starting we also trying to get quality

service, because with management by objectives, we are setting objective, we are getting in a

pattern of total quality improvement kind of framework where quality is obviously at the

forefront and the idea would be to have a work improvement team. It can be cross

departmental or departmental it depends -we want our lower level, line managers and

supervisory to be in a position and capable of showing responsibilities and saying ohhh ok lets

work on one particular project.



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I think you already mentioned about six of them, I will not go into details on it, I think you

already answered on that aspect and how the systems contribute to the strategy of the hotel.

Let us move to question 11.





Once again, I will go to the basic system, recruitment processes, which lead to a system, and

how to make this happen, how to encourage this alignment is not solely the responsibility of

the HR, because then that it would be a impossible. I think again we should look at the HR as

a business partner, we should get the whole of the executives not only involved but also

committed to this great activity.

We come to the other question, I will use your word; you mentioned about a ―structured

manner, a systematic manner‖ you were talking about performance appraisal, performance

management, you mentioned you need a ―structured process‖ in place and formalizing a

structure. Do you have a structured process in place, and secondly if you do not have a

structured process in place, how do you envisage such a process integrating the core elements

or the fundamentals of HR practices?

Huhhh, to answer this question which is extremely important, just to get really focused on

what we are approaching, the four dimensions which are very important at the very spiral of

business activities would be finance, customer, people and process. If I have to consider the

tendency that The Residence had over the past, I would say I do not believe there has been an

equilibrium between these four different dimensions - balanced scorecard approach. There has

been some kind of really more weight on people, and customer, then finance and process.

And I think that among the four here, the one that really suffered is process.

How would you describe the structure or platform that would allow a full integration of

HR activities to your service strategy? Is the balanced scorecard the structure?

No that is part of the structure and I think that the structure is much more bigger that this, its

huge, its process wise, I think that the more difficult part of any organization is to get the

standard operating procedures right but also implement it and follow it. So the standard



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operating procedures which are bits and parts of the whole thing, its just ‘une chaine dans le

maillon’ and there is much more to do and where to start, and I think we have to be honest

with ourselves and this is what we have been doing so far, now that we have got the mission

right, now that we have got the values and beliefs right, now that we know about our

improvement strategy, where we want to go and when, we said three years, to get the process

part through, I would say 25% quality circles, getting teams being involved to display their

human capacity or management helping line supervisors.

So if you have to sketch your structure, what would you draw? Would it be the four

aspects, customer, people, finance…?

Yeah, I think yes…

But then as just mentioned that‘s not enough, so that would be part of something.

I think the key result areas for us would definitely be these four and I think for a lot of

companies would be these four because they really calculate the core dimensions and the

basics. If I have to draft, I would take these and would also try to have some benchmark from

leading hotels of the world but that would be very difficult to obtain. With international

benchmarks, I am sure we can reach a point where the drafting of procedures is achieved so

that we end offwith some concrete things. Zjamil, this question is so tough and it needs

anticipation because we are translating something from theory into practice to make it become

an integrated system. Is it going to happen? But again it depends on a lot of factors. I would

be very honest, the structure is not very clear cut and that is why we need the support of our

consultant.

I think you have answered questions 12and 13 already. Let us move to question 14.






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14. What is the difference between the Service Strategy of a luxury hotel compared to

that of a lower category hotel?

I do not think there is a difference - all hotels strive for superior service but some can aim

higher than others.


I do not think the HR function should be different. HR remains HR.


Very interesting, challenging- was a great experience.

Thank you Farad.

Respondent Five



Firstly staff turnover, this is a huge issue. In terms of recruitment there is a lack of qualified

people – with the opening of international markets a lot of young people are now going to

work abroad on cruises. Another challenge is the retention strategy.


Yes and No. Actually no. Not anymore.


challenges?

I think on training by conducting proper training analysis. Also need to have emphasis on

performance management system.


We provide a personalised service and we want our guests to say:―I will have o come back.‖



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I would say HR acts as a support role. We are here to analyse and give sufficient training,

knowledge and skills. The role of HR is to create the right environment – cater for individual

and organisational needs.



If the line managers require additional labour, this should be clearly revised when we do our

budget but if they need additional labour due to lack of competency, then there is something

in the existing team that is not performing at the maximum level.

Does the line function talk in terms of manning headcount or in terms of desired

competencies or talent?

Mainly headcount. Competencies are only addressed through training and not at the time of

recruitment. We focus on productivity, for the time being noone has come to me for this. If it

happens that someone does not offer the services we are expecting may be he requires more

training.



As a support team, we are not really focused on guest but this is a very good question. Like

two years back there has been a change in flights, so there is a lot of early departures, so we

have adjust our transport and also of our shift for workers, we altered it vis a vis the arrival

and departure time. In terms of the needs we have introduced the extra services, Spa and also

the villa, we opened in 2004.

But do you participate in identifying the needs of the clientele?



Not really but may be at times on guest questionnaire it might be that someone may say that a

team member has a problem for speaking a language…and in this case we have introduced a

flag tag, if the guy speaks Italian, he has a Italian flag tag.



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For the customers HR is not really involved. We do have a suggestion box in the hotel and

we are also an open door policy. This is mainly focused through our Executive Assistant

Manager who is responsible for all services that is rendered at the hotel to the guests.



We do a lot. If we do not have people we do not have a company. It is about recognition.

We do have recognition and benefit. In terms of recognition we have our monthly award and

this monthly award is based on services, we have our guests questionnaires, the names that

often repeat on them are our legends so we do organise our monthly award. So based on this

we have our meeting and we give them a certificate of recognition. We also have our long

year service awards.



I would say training and performance management.

Let us move to question 11.



It is mainly performance and training; performance and benefits; performance and career.

The performance appraisal is normally once or twice a year. With the existing system that

we have the main focus is on the performance management.


???? Integrated, not really.

There are two scenarios in this. Mainly the management system and also it depends on the

needs of the hotel as well. As I said when de do recruitment, it is not only for the hotel, it is

for the group and here all the policies are based on group policy and if tomorrow I require a

management position, it will be based on the company, giving opportunity to everyone in the

company and not only at hotel five. This is the reason we mainly focus on the performance

development review as our main source because it is mainly the same system that is used

throughout the company.



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Especially with the financial crisis..haha may be the competency to view team members to all

round to face this situation. The HR manager has to be able to cope with the organizational

needs and be a partner.

14. What is the difference between the Service Strategy of a luxury hotel compared to a

lower category hotel?

Service strategy would be different in a lower category hotel since the product is not the same.

The service is more refined in a luxury hotel.


HR would be the same.


Very interesting.

aligning human resources practices to service...

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