case study analysis

C A S E S T U D Y A N A L Y S I S

The SoCo Hotel, Barbados

Shari Best, Chrispen Hackett, Kristy Morris Mersedeh Samei, Rhodni Skelton

TOUR 6150: Human Resource Management

Instructor: Dr. Akhentoolove Corbin

April 13, 2015

C a s e S t u d y A n a l y s i s : T h e S o C o H o t e l , B a r b a d o s 2

T a b l e o f C o n t e n t s

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C o m m u n i c a t i o n _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 7

R e w a r d i n g / M o t i v a t i n g E m p l o y e e s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 8

H u m a n R e s o u r c e R e s p o n s i b i l i t i e s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 9

M e t h o d o l o g y _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 1

S t u d y D e s i g n _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 1

D a t a C o l l e c t i o n a n d P r o c e d u r e s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 2

D a t a R e c o r d i n g P r o c e d u r e s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 2

D a t a A n a l y s i s a n d I n t e r p r e t a t i o n _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 3

E t h i c a l C o n s i d e r a t i o n s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 3

L i m i t a t i o n s a n d C h a l l e n g e s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 3

P r e s e n t a t i o n o f F i n d i n g s a n d A n a l y s i s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 4

T h e m a t i c A n a l y s i s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 4

C o m p a r a t i v e C a s e A n a l y s i s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 5

D i r e c t I n t e r p r e t a t i o n _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1 8

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R e f e r e n c e s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2 8

A p p e n d i c e s _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 3 0


E x e c u t i v e S u m m a r y

This case study of the SoCo Hotel, Barbados, will seek to consider some of the Human Resource

Management activities associated with a relatively small (boutique) style hotel/resort and ultimately

provide recommendations that can be implemented to increase opportunities, and address possible

challenges within the scope of SoCo’s available resources and organizational structure.

The literature review considers that in smaller structured hotels, such as SoCo, the administration

of Human Resources Management functions is not as centralized (a dedicated HR department or staff),

as with larger hotels. Simpson et al., (2004) states that small boutique hotels tend to rely on experience

and previous knowledge as opposed to formal training, and this is also the case with The SoCo Hotel.

However, small boutique hotels do inherently contain opportunities to develop themselves using their

strengths as small organisations with high levels of flexibility (Arunothaipipat 2013). These

opportunities are considered in the literature review.

The rationale behind this study is to understand the ways in which The SoCo Hotel is currently

able to improve and utilise its current non-traditional HRM approach in order to continue meeting and

exceeding guest expectations. The study will also examine current HR activities within the existing

organizational structure through qualitative interviews of employees, and provide practical

recommendations to improve them in a strategic manner.

The following HR activities were extracted from a thematic analysis of interviews that were conducted

within the SoCo Hotel:

Communication

Vision, Mission, Goals and Objectives

The vision of the hotel is clear to management levels staff, and improvements can

be made in communicating this with non-management staff. Improvements can


also be made in communicating goals and objectives in the form of descriptive job

descriptions.

Lodging complaints/concerns

Employees are able to voice any concern face to face with management. Open

communication can be further improved through providing suggestions boxes for

employees to voice concerns anonymously.

Reward Systems

The current motivation system is basic wages. Other non-monetary reward systems, such

as employee of the month, can be put into place to improve employee motivation.

HR Responsibilities

Currently staffs are unsure of whom to speak with on HR issues. Due to the small size of

the hotel the CEO can take up the role of HR, as the placement of an HR manager would

not be feasible. This would allow more structured and effectively

communicated recruitment, training, and retention programmes in place.

The following recommendations, as a result of this case study were made to address the

aforementioned HR activities with room for improvement:

Weekly departmental meetings & Monthly staff meetings

o To increase communication from ownership down through line staff

Placement of an anonymous suggestion box

Establish modes of non-monetary recognition/rewards based on performance

Dedicate Mr. Taylor or Assistant Manager to function as the HR Manager


I n t r o d u c t i o n

The SoCo Hotel located on the South Coast of the island nation of Barbados is a small boutique

hotel that has been in operation since 2013. With 24 rooms and under 40 members of staff the hotel

perfectly fits the generally recognized description of a traditional Small Boutique Hotel, even though

there is no single accepted definition of the term (Gupta, 2010). As is the norm with such small boutique

hotels, the administration of its Human Resource Management functions is not as clear cut, and

centralized, as with larger hotels, due to a number of factors. This study will seek to examine some of

those factors and consider the ideal Human Resource Management style for such a hotel.

Three specific human resource (HR) subjects were identified as most relevant to the case study.

The first theme is the opportunity to increase communications amongst management and other staff. For

example, roles and responsibilities could be described more effectively through provision of job

descriptions. In general increased communication and extending communication through different

channels would be beneficial to the SoCo Hotel. The second HR opportunity is the placement of

intrinsic non-monetary rewards, such as employee of the month, which can lead to higher employee

satisfaction (Bratton and Gold 2012). The final HR opportunity considered in the case of SoCo Hotel is

the possibility of appointing the CEO with an additional title of HR manager, so that the opportunities

discussed here and any that arise in the future can be appropriately managed.

This study will consider the above three opportunities in relation to the SoCo Hotel in Barbados

through the results of both primary and secondary analysis on the role of HR in small boutique hotels.


L i t e r a t u r e R e v i e w

Armstrong (2008:5) defines Human Resource Management (HRM) as a “strategic and coherent

approach to the management of an organisation’s most valued assets: the people working there, who

individually and collectively contribute to the achievement of its objectives.” Nakervis (2000) and

Townsend and Lee (2010) describe HRM as the functions of planning, hiring, training, and optimizing

talents according to the needs of the market place. HRM contains practices and processes that form the

behaviours and experiences of employees, and encourages higher levels of performance (Cabrera &

Bonache, 1999). Although HRM has evolved from a traditional integrative approach to a more strategic

approach, Hughes (2002) and Nankervis (2000) still embrace the need for systems and processes in

order to make HRM sustainable.

Few studies have examined the HRM practices utilised in small boutique hotels/resorts in the

Caribbean. As the hotel industry is service based, it relies heavily on human labour. As Arunothaipipat

(2013) indicates, service quality is directly related to employee quality. Larger hotels may have stronger

advantages in their human resource structures. Their resources allow them to benefit from HR

departments and staff, as well as offering advantages in recruitment and development due to succession

planning, clear organisational structures, and potentially higher levels of compensation and job security.

These resources help to make larger hotels more appealing for highly competent and skilled employees

to pursue their careers as opposed to smaller hotels. Relating to this study, HRM issues in small

boutique hotels are different compared to those of larger hotels. Peters (2005) asserts that difficulties in

communication, low motivation, and human resource planning are core issues in small tourism

enterprises. Based on field observations, three (3) general areas including communication, employee

motivation and human resource responsibilities are discussed in depth.


C o m m u n i c a t i o n

Drawing on a case study of human resource practices in small hotels in Thailand by

Arunothaipipat (2013), informal communication was used to voice employee concerns about issues at

work to the supervisor or hotel owner directly. This informal communication stems from the generally

open relationship between the employees, supervisors and the hotel owners. Authors such as Wilkinson

(1999) and Harris (2002) regard informal communication as the most appropriate approach to effective

working relationships in a small tourism business environment. On the other hand, DiFonza and Bordia

(1998) argue that informal communication has the potential to form into rumours and gossip, having a

negative effect on the organisation.

According to DiFonza and Bordia, (1998), rumours and gossip can exist when there is no clear

formal communication, and as a result employees tend to have discussions about situations within the

working environment in order to understand it. Gossip and rumours can result in insecurity, stress, and

being unproductive and unmotivated (DiFonza & Bordia, 1998). In this situation, employees develop

their own reality when they do not receive accurate information due to a lack of formal communication.

The more informal the communication is, the more employees will perceive reality as ambiguous, which

makes it challenging for an organisation to keep everyone on the same page (Elving, 2010).

Small tourism business employees often take on multiple roles with unclear boundaries

(Heneman & Berkley, 1999). Internal communication strategies within tourism businesses determine the

overall service quality provided by employees (Peter, 2005). It is therefore necessary for small hotel

owners and managers to carefully conceptualise and implement channels and instruments of effective

communication of human resource activities to ensure employees understand what is expected of them

(Peters and Buhalis, 2004).


R e w a r d i n g / M o t i v a t i n g E m p l o y e e s

Arunothaipipat (2013) highlighted that although hotel employees received low salaries, they

obtained more benefits and welfare than stipulated by law. Within small hotels, it was noted that hotel

owners treated their employees as if they were members of the same family, which resulted in

apparently good relationships between both parties, and increased employee motivation. The primacy of

money as a key motivator of employee behaviour is challenged by psychological and sociological

theories. Pfeffer (1998: 112) argues, “people do work for money, but they work even more for meaning

in their lives.” Other author’s state that changing the way employees are treated and creating dignity can

increase productivity more than changing the way they are paid (Kessler, 1995; Bolton, 2007).

Chiang and Jang (2007) note that the hotel industry has struggled with observing ways to keep

employees motivated and satisfied with their jobs due to high employee turnover. It is understood that

the nature of the work, low pay, and long working hours all contribute to high turnover rates. Therefore,

employee motivation could be an on-going and critical issue for managers in regards to hotel operations.

The expectancy theory of motivation, developed by Vroom (1964), considers the processes

individuals employ to make decisions on various behavioural alternatives. The motivational force for a

behaviour, action, or task is a function of three distinct perceptions: expectancy, instrumentality, and

valence. Expectancy is the perceived probability that effort will result in good performance; variables

affecting the individuals’ expectancy perception include self-efficacy, goal difficulty, and perceived

control (Chiang and Jang, 2007). Expectancy that one’s effort will lead to a desired performance

outcome is based on past experience, self-confidence, and the perceived difficulty of the performance

goal. Instrumentality is the perceived probability that good performance will result in desired outcomes.

Trust, control, and policies are variables affecting the individual’s instrumentality perception (Chiang

and Jang, 2007). Thus, the instrumentality is the belief that if an individual does achieve performance


expectations, he or she will receive a greater reward. Valence refers to the value the individual

personally places on rewards: the function of needs, goals, values and preferences (Chiang and Jang,

2007).

Although expectancy theory lacks external validity (Van Erde and Thierry 1996), it is still one of

the most commonly used theories of motivation in the workplace (Campbell and Pritchard, 1976) as it

offers a general framework for assessing, interpreting, and evaluating employee behaviours in learning,

decision-making, attitude formation, and motivation (Chen and Lou, 2002). Motivation factors including

pay, monetary rewards, opportunity for advancement and promotion, job responsibility, recognition, job

challenge, feelings of accomplishment, and developments of self-esteem were identified as important

factors for hotel employees (Siu et al., 1997). In their study of employee motivation in small hotels

across US Western states, Chiang and Jang (2007) revealed that intrinsic variables (both instrumentality

and valence) contributed more to employee motivation than extrinsic variables. However, pay usually

ranks first in motivating hotel employees in previous studies (Mitchell and Albright, 1974). Generally,

hotel employees receive lower pay than employees in other industries; therefore motivating employees

through monetary or non-monetary means is important (Chiang and Jang, 2007).

H u m a n R e s o u r c e R e s p o n s i b i l i t i e s

Human Resource Management and its functions are not readily available in small hotels.

Arunothaipipat (2013) considered that 93 percent of small independent hotels in Thailand had no human

resource department, and hotel owners were responsible for HRM activities. It was observed that hotel

owners recruited and selected staff using both internal and external sources, such as word of mouth from

existing employees and through the local media, and would interview candidates personally

(Arunothaipipat, 2013). In a similar case study of small hotels in Sweden, it was recognized that the

C a s e S t u d y A n a l y s i s : T h e S o C o H o t e l , B a r b a d o s 1 0

hotel industry operates in a labour market where there are limited qualified candidates, along with strong

competition (Young-Thelin and Boluk, 2012). Therefore, it is challenging for smaller hotels to compete

with larger hotels that have access to more resources. The shortage of quality applicants due to the

generally perceived poor image of employers forces smaller hotels to use more informal methods in

recruiting people (Young-Thelin and Boluk, 2012).

A case study of HRM in small hotels in Ireland considered that in the majority of small hotels the

owners took sole responsibility of the management of human resources (Hornsby and Kuratko, 1990;

MacMahon and Murphy, 1999). Ker and McDougall (1999) explain that the tendency to engage in

human resource development is dependent on the attitude of the owner and senior managers of small

hotels, as they determine the ethos and strategic direction for the organisation. It was also observed that

HRM in small hotels takes place in an ad hoc approach, where training for example, involves learning

from others on the job during the course of normal daily activities (Ker and McDougall, 1999).

HRM is not actively planned in small hotels and often occurs in response to a specific skills gap

(Vickerstaff, 1992). Nolan (2002) notes that human resource practices are frequently addressed as a

reactive concern, and are rarely planned in a proactive sense in small hotels. Limited resources in terms

of time and money are considered challenges facing continuous and systematic HRM in small hotels

(Marshall et al., 1995; Vickterstaff, 1992). With a small workforce, the scope for releasing staff for

training and simultaneously providing cover can be difficult (Nolan, 2002). In addition, the “real” cost

of training is higher in smaller organizations (real cost = cost of course + cost of unproductive labour)

(Westhead and Storey, 1996). As a result, informal human resource practices on the job tend to be more

applicable in small hotels (Nolan, 2002).


M e t h o d o l o g y

To better understand the role of Human Resource Management in small boutique hotels, this

study will examine HR activities at The SoCo Hotel in Barbados. A review of literature on HRM

operations on small island nations and in small hotels worldwide will guide the study. A qualitative

method in the form of interviews will be conducted from managers, and staff, to examine how HR

activities are carried out in The SoCo Hotel and how they translate into service quality. The following

research questions guided interviews.

What is some of the HR activities, and associated challenges, that small boutique hotels

participate in and face?

How do employees perceive the effectiveness of The SoCo Hotel’s HRM structure (or in this

case: management structure)?

How can a small boutique hotel improve activities through HR?

S t u d y D e s i g n

Through a case study approach the explorations of HR activities in The SoCo Hotel were

considered through multiple perspectives, which allows a more in depth exploration of activities and

processes (Baxter and Jack 2008). The descriptive case study approach is appropriate in the exploration

of real life activities (Baxter and Jack 2008). The case study approach originally came forth as a method

to counter the bias caused through relying on one perspective by combining multiple researchers’

perspectives on a general phenomenon (Stake 1995, and Yin 2003).


D a t a C o l l e c t i o n P r o c e d u r e s

Based on Miles and Huberman’s (1994) consideration of qualitative studies, the setting, actors,

events, and process of research will be discussed. The case study took place in The SoCo Hotel, and a

number of employees both from managerial and non-managerial positions were interviewed. Group

members made three visits to the hotel. Communication was also conducted over email.

Due to the small nature of the hotel, with fewer than 40 members of staff who are often busy

with many different tasks, a total number of five (5) members of staff were interviewed. It is standard

for case studies to include four (4) to five (5) participants (Creswell 2014).

The type of collection procedure used here was qualitative interviews, where researchers

conducted face-to-face, and email interviews. These interviews were guided by the initial research

questions, and involved unstructured and open ended questions. Qualitative interviews are useful as

participants can provide detailed history into issues that otherwise may be difficult to observe (Creswell

2014). Some limitations of qualitative interviews include individual perceptions, bias of both researchers

and participants, removal of natural settings, and the ability of some to articulate themselves better than

others.

D a t a R e c o r d i n g P r o c e d u r e s

The case study was conducted over a period of two (2) months. A plan was developed with

specific HR related topics that guided researchers in interviewing the participants. At Least three

researchers were present during interviews so that a range of interpretations can be captured. The

interviews were recorded, and notes were taken to support audio recordings. In the event of participants

not being comfortable with recording, researchers only recorded notes on paper. The interview questions

that were used during research are provided in appendix A.


D a t a A n a l y s i s a n d I n t e r p r e t a t i o n

In analyzing qualitative data it is important to note that unlike quantitative research, the opinions

and conclusions that researchers make in the process of research will influence and are part of the report

(Creswell 2014). Therefore, direct interpretation will be considered in analyzing interviews, which has

been considered appropriate for a case study approach (Stake 1995). In addition to direct interpretation,

a within-case thematic analysis will consider patterns within interviews using themes and word tablets in

spreadsheets (Yin 2003). This qualitative approach will allow the identification of activities and

challenges most discussed by participants (Yin 2003). The findings will then be considered in relation to

the conducted literature review for a cross examination with other case studies, followed by a situational

analysis based on findings.

E t h i c a l C o n s i d e r a t i o n s

During the research and data collection process strict ethical principles were conformed to. The

interview participants were adequately informed about the purpose of the research study and were

assured that all information will be used for academic purposes only. Additionally, the interview

participants were informed of their right to withdraw from participation at any time during the research

process. Participants were assured that their identities would not be disclosed.

L i m i t a t i o n s a n d C h a l l e n g e s

A number of limitations and challenges were met during the case study. Firstly, the busy

schedules of staff only allowed three visits to the hotel, however researchers interviewed five (5)

participants, which is a fairly large sample for a qualitative case study design. The second limitation was


the use of only qualitative methods. Qualitative analysis does not capture the full scope of information

that the combination of quantitative and qualitative analysis can capture together (Neuman 2006). The

third limitation is lack of resources to conduct a larger study, were multiple small boutique hotels could

have been considered and cross-examined. The fourth limitation was lack of data and previous research

on the role of HR in small boutique hotels in the Caribbean.

P r e s e n t a t i o n o f F i n d i n g s a n d A n a l y s i s

T h e m a t i c A n a l y s i s

Thematic analysis is one of the most common forms of analyzing qualitative data, and is used in

spotting the most relevant themes that emerge in raw qualitative data (Guest et al. 2012). Based on a

thematic analysis of interview data in relation to HR challenges and activities within the SoCo Hotel

expressed in the first research question, three major themes emerged: (1) Management of HR related

activities, (2) Communication, and (3) Rewarding/motivating employees.

In relation to “Communication”, which was identified by three of five respondents, who had

encountered a number of challenges in regards to their roles and responsibilities, inconsistent

conceptions of duties, and need for improvement of general communication between management and

non-management staff. This theme comprised of experiences ranging from not being aware of

responsibilities until on the job, only having employee meetings once a year, and not being sure who to

voice concerns to. For example, one respondent noted that: “When we were hired, they did not tell us

about the number of duties we would have to perform.”, and another respondent noted that: “We try to

communicate to managers in scheduled meetings. We only have employee general meetings once a

year.”


In regards to “Rewarding/Motivating Employees”, which was identified by four of five

respondents, who acknowledged the need for improvement of reward systems to motivate staff,

especially in the form of recognition and appreciation. This theme comprised of experiences ranging

from understanding the need for improving rewards systems, and generally feeling unappreciated and

dissatisfied. For example, one respondent noted that: “You don’t get a thank you or any verbal

appreciation.” and another respondent noted that: “They must show the staff more appreciation to ensure

that we last here.” In this theme management noted that: “We are aware that we need to motivate staff.”

In terms of “Management of HR activities”, which was identified by three of five respondents,

especially in relation to managing employee shifts, and hiring and retaining staff. This theme comprised

of experiences ranging from uncertainty on managing staff shifts and tasks, to dissatisfaction with

placement in certain roles, division of responsibilities, and staff retention. For example, one respondent

noted that: “managing employee shifts… and activities” are one of the main challenges facing a small

hotel. Another employee explained, “The turnover rate is high. I hope to leave this job. I do not enjoy

interacting with the guests.”

In general, the thematic analysis identified room for improvement in the management of HR

activities, increased communications, and provision of some form of rewards to show appreciation.

These themes will be further analyzed through a comparative analysis with case studies using secondary

sources, direct interpretations of these themes based on interviews, and a situational analysis.

C o m p a r a t i v e C a s e A n a l y s i s

In analysing the case studies highlighted in the literature, there were several observations that

complied with the primary research findings of this study. As it relates to the “Communication”

challenge described by employees regarding the ambiguity of their roles and responsibilities, it is an


ongoing challenge in small hotels around the globe. The aforementioned literature illustrates several

examples where clarity of roles and responsibilities is needed in small hotels. For example, Heneman &

Berkley (1999) state that in small tourism businesses, employees often take on multiple roles with

unclear boundaries. Additionally, at the SoCo Hotel it was observed that there is a lack of written job

descriptions provided to candidates, where instead they are expressed verbally in person during the

interview. Employees as a result are not completely clear with what is expected of them, and are often

overwhelmed when they start working.

Moreover, in the case study of small hotels in Thailand by Arunothaipapat (2013), it was realized

that most often small hotels adopt similar informal communication practices as the SoCo Hotel. This is

demonstrated by using informal communication to voice employee concerns about issues at work to the

supervisor or hotel owner directly. Similarly, it was observed that the SoCo Hotel employees voice their

concerns to management occasionally during casual face-to-face encounters. Therefore, it is standard

within smaller hotels to conduct informal one-on-one meetings. On the other hand, there is room to

increase upwards communications, which are communications from non-management staff to

management staff (Petcharak 2002). These types of communications include suggestion boxes,

employee general meetings, and employee satisfaction surveys.

In analysing the “Rewarding/Motivating Employees” issue, it is observed that employees at the

SoCo Hotel desire a more effective rewards system, more specifically in relation to recognition and

appreciation, also described as intrinsic (instrumentality and valence) rewards. Similarly, based on a

case study of employee motivation in small hotels across US Western states, Chiang and Jang (2007)

revealed that intrinsic variables (both instrumentality and valence) contributed more to employee

motivation than extrinsic variables. This is also closely aligned with Herzberg’s (1959) two factor theory

that demonstrates that not only are people motivated through tangible rewards such as pay and physical


working conditions, but intangible rewards such as recognition and achievement can also have a strong

impact on one’s motivation. Based on these observations, top management at the SoCo Hotel can

develop a non-monetary awards system to increase employee motivation.

As it relates to the “Management of HR activities”, it was noted that some general HR activities

such as managing employee shifts, hiring and retaining staff were seen as challenges for the SoCo Hotel.

As mentioned previously in the case by Arunothaipapat (2013) where it was revealed that 93 percent of

small hotels in Thailand had no HR department and had the hotel owners responsible for HRM.

Additionally, in the case of small hotels in Ireland, it was also observed that HRM took place in an ad

hoc approach where HR practices were more of a reactive rather than a planned proactive approach (Ker

and McDougall, 1999). Therefore, the findings of this component of the study are consistent with the

existing literature in that small hotels do not require HR departments, however appointing an HR

manager can help in managing employee shifts, hiring, retaining staff, and any other HR issues that may

become apparent in the organization at any time.

Nolan (2002) suggests that informal HR practices on the job may be more applicable for small

hotels due to lack of resources compared to larger hotels. However to help reduce the HRM challenges

at the SoCo Hotel, adopting a more proactive approach to HRM can be considered. Based on previous

discussions with the owner, there are steps being taken to completely implement this kind of approach

through the use of talent testing during the recruitment and selection process. This will help top

management understand how potential employees will perform on the job. It also aids in reducing

overall turnover and improves the effectiveness of hiring and placement decisions (Horizon Hospitality

Associates Inc., 2014).


D i r e c t I n t e r p r e t a t i o n

The management of the HR activities in any scale hotel is important and relates not only to the

system as a whole but its vital individual components. Therefore one can expect that HR activities

would impact directly on the functional activities of the staff such as the management of their shifts, as

identified by most respondents. While management of these activities would have been initiated at the

point where individuals were introduced to and incorporated within the system, a point at which there

was noted to be dissatisfaction with placement, one must acknowledge the tendency of small hotels to

have an ad hoc and reactive approach with respect to the elements of HRM (Nolan 2002). The hotel’s

management is in an ideal situation as the skilled labour force within the island can easily translate into

staff which complement the business’ strategy if HR management is employed to attract and retain the

best candidates. There are systems in place to do such and therefore it highlights that there is a challenge

of perception of HRM activities.

It is also worth mentioning that although there is management of some human resource activities

such as managing employee shifts and hiring and retaining staff, it was observed that the owner has the

final say on any hiring decisions made. In small hotels around the world this practice is considered

normal due to the small nature of the organization and the hands on nature of owners and CEOs

(Arunothaipipat, 2013; Hornsby and Kuratko, 1990; MacMahon and Murphy, 1999).

A hindrance to the perception of efficient HR management would have been the noted challenges

of communication. These challenges identified by the staff mainly pertained to the misunderstanding of

their responsibilities until they were required to take them up. A major factor which exacerbates the


issue is the fact that staff were unsure about who they could approach with this issue or any other issues

they would have. The current practice whereby the vision of the hotel is only clear to management,

coupled with the fact that there is only one employee meeting a year has also played a role in the

prominence of this uncertainty experienced by staff. This environment does not facilitate sharing of

knowledge among the various cohorts and reduces its ability to develop a distinctive product, which

places firms in a position to maintain high levels of performance (Kim et al. 2013). It is therefore vital

for these misperceptions to be addressed as they regard not only tasks but more importantly staff’s

feelings about their development within the company, the processes they were taking part in from the

time they were recruited, to the steps that are taken to retain their services. While it is common practice

for a small firm to employ various informal HRM practices such as on-the-job training (Nolan, 2002)

the issue is that the staff did not appear to know what was occurring.

It is relatively easy for one to link the main issues highlighted by the staff and thus it creates

some difficulty in identifying a main one. However, the fact that most respondents identified the area of

rewards and motivation is a cause for some attention. As previously alluded to, the manner in which

staff carries out their duties translates to quality of service and as such it is necessary for staff to reap

benefits from their job activities. These benefits need not be monetary but, as noted by the staff, they can

be incentivized by gaining some form or recognition or appreciation for their contribution to the above

average performance of the establishment. According to Siegrist (1996 cited in Kinman & Jones 2008),

the three ways in which employees may be rewarded for their contributions to a successful business are

an appropriate salary, adequate respect and support, and a sense of job security or career opportunities.

The perception of suitable compensation is necessary due to the fact that as one refers to the Effort-

Reward Imbalance (ERI) model, employees’ attitude to work decreases as they perceive an imbalance

between their level of effort and how they are rewarded for it, which tends to be more prevalent in those


who are excessively committed to their work (Kinman & Jones 2008). It should be noted however that

both management and staff have seen room for improvement where this area is concerned.

S i t u a t i o n a l A n a l y s i s

Based on observations of this case study through interviews, and the results of multiple analyses,

a situational analysis in the form of a SWOT is presented here. A SWOT analysis will allow the

strengthening of opportunities, reduction of weaknesses and minimization of the effects of threats

(Kotler et al. 2010).

S t r e n g t h s

Excellent Customer Service

The hotel has received excellent reviews and ratings on TripAdvisor.com (2015). Guests

are mostly satisfied and quality of service is high.

This is also translated into a positive public image, especially resulting from the relative

number of excellent reviews in comparison to other reviews.

Opportunity for Developing Skills and Learning Through Experience

Employees have the opportunity to learn on the job through personal encounters and

experiences. Opportunity is given to possible employees who may not have a lot of

experience but show potential for learning. Recently college graduated employees with

little to no experience, or skilled workers with no formal education are given the chance to

strengthen their skills in the hotel environment.

Possibility of Talent Testing in the Future


The CEO of The SoCo Hotel has expressed that in the future the hotel may possibly use

talent testing for hiring purposes. These include a range of psychometric tests what will

allow the employer to identify certain traits needed for a particular job. This would allow

the hotel to find the right person for the right job, and therefore increase performance, and

improve productivity (Grobler and Diedericks 2009, Bratton and Gold 2012).

W e a k n e s s e s

Limited Staff

Due to the hotels small size it is not feasible to hire too many employees. This has had a

negative impact on some staff where they complain that the workload is too high for them.

For example one employee explained, “They need to hire more staff. [They] think that only

one waitress is able to handle this entire area”, and another employee explained that

although she enjoys working in the hotels atmosphere, the work “gets overwhelming”.

Managing Employee Shifts

This was directly identified by one of the managers as one of the biggest challenges that

the hotel is facing. Although there is a system in place where employees work shifts and

may change shifts to their convenience, often management faces difficulties in managing

employee shifts.

Vague Job Descriptions, and Job Titles

The SoCo Hotel requires employees to engage in cross-functional activities, where multi-

tasking abilities are required. The weakness stems from the consideration that employees

are not aware of these multiple responsibilities when being hired, and must respond quickly


to what their job entails while working. Three of five employees interviewed explained that

their responsibilities were not clearly explained before hiring.

Capacity for Reward Systems

Being a small boutique hotel does not allow The SoCo Hotel to reward its employees

through bonuses, promotions, and increased pay, as limited resources would not allow this.

On the other hand, there is some capacity for improvement. Rewarding employees through

non-monetary means such as employee of the month programs can increase productivity of

employees (Simons and Enz 1995). It is important to note that such programs can also

foster unnecessary competition and friction amongst employees if not managed properly.

Capacity for Increased Communications

Through the thematic analysis, communication emerged as one of the main themes in need

of improvement in the hotel. Although employees have the opportunity to engage in one-

on-one meetings with management regarding any issues, often there is miscommunication

within the organizational structure. However, there is room for improvement through

simple and inexpensive means such as placement of a suggestion box so that employees

can voice concerns freely. Other improvements include increasing yearly meetings to

quarterly meetings, so that management can engage with employees and identify issues in a

more effective manner.


O p p o r t u n i t i e s

Quality and Quantity of Available Labour

The Barbados workforce if generally highly skilled and trained, especially in the hospitality

industry (Worrell and Lowe 2014). Therefore, although some employees explained that the

turnover rate is high, quality of service in the hotel is not affected. The quality and quantity

of the workforce in Barbados creates an opportunity for The SoCo Hotel to constantly be

able to hire highly competent employees.

Marketability of the Destination

In 2014 the marketing budget of Barbados as a destination was U.S. $50 million (Ernst and

Young 2013). The Barbados Tourism Marketing, Inc. also promotes and develops tourism

on the island. In general the Barbados government places emphasis on marketing tourism,

and the destination is highly marketable. This opportunity allows small hotels such as

SoCo to take advantage of the strengths of the destination in marketing.

Expansion of the “SoCo” Brand

The CEO has expressed interest in the possibility of expanding operations to other

locations within the Caribbean. Therefore, the Barbados branch is a great opportunity to


improve HR functions and activities within the hotel to pave the way for possible future

expansions.

Establishment of Online Bookings

Currently bookings are not done directly through the website, and travel agents in the U.K.

are one of the only means to booking the hotel. Although this provides exclusivity, the

establishment of online bookings is an opportunity that can be taken advantage of in the

future if operations were to expand.

T h r e a t s

Competition

The Barbados tourism product is now considered to be in its mature phase based on

Butler’s (1980) Tourism Area Life Cycle (TALC) model (Government of Barbados, 2012).

The hotels continue to control the accommodation available on the south coast with villas

dominating the market share on the west coast in recent years. The SoCo Hotel is located

on the south coast of the island, and competition is high as there are a high number of

hotels and beds available.

Changes in Policy Regulations

According to Transparency International (2014), Barbados is ranked second, after Canada,

as the least corrupt country in the Americas. However, “Insufficient government

bureaucracy” has been considered as the second biggest challenge facing the growth of

business in Barbados (The Central Bank of Barbados 2014) (Appendix B). If there were

any changes in policy regulations in regards to hotels, the insufficiency of the bureaucratic

system would pose a threat to the hotel sector.


Increase in prices

Due to any number of economic reasons, prices of water, electricity, food and many other

services and resoruces can increase, and pose a threat in the Caribbean in general.

Climate Change

The possible impacts of rising sea levels, and the occurrence of natural disasters are a

threat to tourism across the region.

R e c o m m e n d a t i o n s

The following recommendations as a result of this case study were made to address the

possibility of improvement of HR activities within The SoCo Hotel:

Communication

Weekly departmental meetings and Monthly staff meetings

To increase communication from ownership down through line staff. This would allow

roles and responsibilities to be further communicated, and justified through the CEO’s

vision. It would also allow an avenue for line staff to voice concerns or provide

suggestions, and in general can create an organization based on communication where

improvements are made accordingly.

Placement of an anonymous suggestion box

To further increase communication, and allow management to get to the core of challenges

that may arise in the organization. Employees may be more open to voicing concerns if

they may be allowed to do this anonymously.


Rewarding/Motivating Employees

Establish modes of non-monetary recognition/rewards based on performance

Programs such as employees of the Month, and Guest’s Stars Recognition (voted on by

guests) can show employees that they are appreciated and valuable to the organization.

Increase in shared service charge/tips collected across staff

o One participant explained, “We don’t get tips and service charge. Guests give

tips to the managers expecting them to give it to us but they don’t.

Management of HR Activities

Dedicate CEO or Assistant Manager to also function as the HR Manager

To allow HR activities to more formally take place in the organization without the need for

hiring an HR manager. This way the duties will be extended to the CEO. Duties to include,

recruitment, providing job descriptions, and measurable objectives such as resolving

employee disputes, and reviewing modes of recognition.

There is room in the future for the hotel to create a Performance Management Programme.

The CEO/HR Manager can conduct this task.

The implementation of these recommendations is relatively easy in The SoCo Hotel due to the

flexibility that characterizes small boutique hotels/resorts. The goal of these recommendations is to

allow the company to better address HR issues in a timely manner and ensure that its Human Resources

are seen as the most valuable asset to the hotel/resort. This will give the hotel a sustainable competitive

advantage in the industry and ensure that its guest continue to receive excellent service.


C o n c l u s i o n s

In conclusion, while it is understood that one of the major challenges facing small boutique

hotels are limited resources, the human resources aspect must still be carefully managed. The results of

multiple analyses, and a review of the literature considered three themes as crucial to the management of

human resources in small boutique hotels. Communication was identified as an area that shows room for

potential growth in The SoCo Hotel, and was shown to be an important aspect of the health of the

organization. Increased communications through quarterly meetings, and suggestion boxes can allow the

hotel to create a strong team. Communication is also one of the foundations of good human resource

management and a method to align all employees with the vision and mission of the company. The

second theme considered was that of rewards and motivation of staff. The small size of the hotel and the

limited resources were considered, and so only non-monetary rewards were recommended for the

purposes of showing appreciation to staff. The third theme explored was the management of HR

activities. Again, the size and nature of the hotel were considered in recommending the appointment of


the CEO as HR manager. This can allow the hotel to further its efforts in hiring the right employees,

retaining valuable staff, increasing communications, and in general being better equipped to tackle HR

challenges. The results of this report, and the recommendations that followed could potentially

strengthen The SoCo Hotel’s internal structure, which could result in the resort gaining a competitive

advantage within the hotel industry in Barbados.

A p p e n d i c e s

Appendix A: Interview Questions

Interview Questions

Question for Management

Current HR and Organizational Structure.1. In which Human Resource activities does the hotel participate?

a. Why is this specific strategy chosen?2. What are some difficulties and challenges faced in applying HRM in a small boutique hotel?3. How are jobs and responsibilities shared amongst employees?4. How is fluidity of job responsibilities translated on job descriptions?5. Do employees have increased accountability?

a. If so, in your opinion, does this increase motivation?6. How are HRM functions shares within managers?

Recruitment and Selection1. What competencies do you look for in recruitment?2. What recruitment channels are used?3. What are the selection techniques used?4. What is the turnover rate?

Leadership, and Learning1. Do everyday activities involve learning and leadership opportunities?2. What are some leadership and learning activities that take place in the hotel?

Employee Relationships and Communication


1. Are there employee reward programs?a. Are such programs possible in SME’s?b. If so, what type of rewards can employees receive?

2. How do employees perceive the effectiveness of these reward programs?3. How can employees voice their concerns to management?4. How are the ethics of the workplace communicated to employees?5. In what ways does the hotel built employee engagement and commitment?6. Is there a string relationship between employees and trade unions?

Other Questions1. General comments on employee empowerment?2. Is there any room for growth and advancement?3. What do you propose moving forward?

Questions for Non-Management

1. Tell us about your work experience here.2. Is management approachable?3. How do you feel about management?4. What is keeping you here now?5. Do you see yourself moving up in the company?6. If there were one thing that needs to be changed about your work environment, what would it be?

Appendix B: Most Problematic Factors in Doing Business in Barbados

Source: Worrell and Lowe 2014 (originally from Global Competitiveness Report 2013-2014)


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