Human Resource Management and Performance in the Hospitality Industry: Methodological Issues

Introduction

Although there is evidence of an increased interest of research with respect to human resource management (HRM) and performance in the hospitality industry, systematic tests investigating the relationship between HRM and performance are yet to be conducted (Hoque, 1999). The development of the link between the adoption of HRM and performance in the hospitality industry has its origins on the manufacturing sector and much of the literature reflects this orientation (Worsfold, 1999). However, over the last 20 years, this point of reference is based on the following three key broad areas in strategic human resource management (SHRM), or the so-called HRM-performance linkage models, that outline the way in which HR practices contribute to business performance (Delery & Doty, 1996; Mohinder & Katou, 2007):

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  Universalistic or Best Practice Model of HRM: This model requires firstly, important strategic HR practices to be identified, and secondly, arguments that relate the individual practices to business performance, maximizing thus internal, or horizontal, fit. This model indicates that there exists a linear relationship between HR practices and business performance, expressed by zero-order interactions between the variables that predict business performance. This means that no products of any HR practices exist among the explanatory variables (Brewster, 1999; Claus, 2003; Huselid, 1995; Osterman, 1994; Pfeffer, 1994).

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  Contingency or Strategic Fit Model of HRM: This model requires firstly, to select a theory of business strategy, and secondly, to specify how individual HR practices interact with business strategy to result in business performance, maximizing thus external or vertical fit. This model indicates that there exists a non-linear relationship between HR practices and business performance, expressed by first-order interactions between the variables that predict business performance. This means that products of two HR practices exist among the explanatory variables (Gomez-Meija & Balkin, 1992; Huselid, 1995; Schuler & Jackson, 1987; Youndt, Snell, Dean, & Lepak, 1996).

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  Configurational or Bundles Model of HRM: This model requires firstly, to theoretically derive internally consistent configurations of HR practices, that maximize horizontal fit, secondly, to select a strategic configuration theory, and thirdly, to link these HR practices to alternative strategic configurations to maximize vertical fit. This model indicates that there exists a non-linear relationship between HR practices configurations, or unique patterns of factors, and business performance, expressed by high-order interactions between the variables that predict business performance (Arthur, 1994; Guest & Hoque, 1994; Huselid & Becker, 1996; Ichniowski, Shaw, & Prennushi, 1997; MacDuffie, 1995).