The Dedicated Human Resource Managements Role Commerce Essay


Dedicated Human Resource Management plays important role in any organisation in taking care of the human capital. Human Resource functions are responsible for the processes which allow any organisation to stay competitive on external market and internally efficient especially in Hotel Industry.

The reality of having designated HR function is well defined and can be very different from one organistion to the other. Having successful HR management is about trust, trust that is build among the management and staff. It also has to recognize time as to implement certain processes takes time in order to get perfect results. HR develops processes, tools and procedures for the management and supervisors to effectively manage their staff in their own departments.

This research will focus on understanding of what Human Resource Management is, the role that it plays in selected organisation i.e. Cassidys Hotel, the importance and recognition of having such department. Dedicated HR will also be linked to increased competition from domestic and overseas economies and the role that it can play in order to improve many aspects in the selected organisation. I will also focus on recession impact and what impact this will have on HR functions within organisation. I will also look at the training and development impact of credit crunch preventing my selected organisation to implement many HR functions. It is discussed in many articles and journals that the first thing to cut during difficult times is training budget, although many theorists believe that many HR departments make wrong decisions in order to cut that budget as the long term benefits of training outweigh the short term money savings. This research will also prove that HR department can be a strong player in the organisation with the significant impact on the overall results in the selected organisation.

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This chapter only provides basic understanding of aspects what the study research is aiming for.

Research Background

Having dedicated Human Resource Management instead of HR function given to all managers can play important role. The problem is also faced by Cassidys Hotel located in the hearth of European Capital - Dublin Ireland. The property is family run for over 14 years and owned by Cassidy Donnie well respected and known Leader of the Seanad, businessman and public representative. His property is a three star superior boutique hotel that is merely known in Dublin for its great city centre location, spectacular Georgian architecture and family friendly atmosphere that its guest can enjoy.

Cassidys Hotel however doesn't have designated HR department within the Hotel as the Human Resource functions are held by Head of Departments and Assistant Mangers within organisation. Cassidys Hotel have relatively big employee turnover due to lack of training and development, however during this recessionary times it seems that the turnover became quite small due to lack of job offers available on the market and unemployment.

Managers of Cassidys Hotel maintain HR functions work closely with General Manager Martin Cassidys with constantly updating new laws and regulations to the contracts of employment, implementing new ideas within the Hotel trying to fairly treat each individual within the organisation. The lack of training and development of workforce can be seen not only by top management within organisation but also among customers for whom the service is provided. The relation between need of designated HR Manager and functions of HR given to managers can clearly be visible within the organisation by its staff, management and customers. My research will try to clarify this relation and hopefully prove that designated HR Management within the Organisation can play big role in achieving good results, distinguish organisation from its competitors and give that unique name recognizable among its customers.

Research Aim

My research aims to examine consequences of having HR function given to Head of Departments and Managers instead of having designated HR department within the Hotel. This study will try to focus on the possible HR problems within organisation of having such as functions; will try to develop steps and procedures that could greatly improve performance, will focus on trying to implementing dedicated HR department within the Hotel and outline benefits of having dedicated HR department in this organisation.

Research Problem

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The problem of the research is to identify possible problems of having HR functions given to Managers and Head of Departments instead of dedicated Human Resource Department. This research will analyze manager's perceptions, attitude of Managers and Head of Departments towards employees within Cassidys Hotel, possible training and development practices that are crucial in any organisation and any other problems that may arise during this research helping with ways of reducing such problems.

Research Questions

Most professors and seasoned researchers will tell you that one essential item you need to have solid before beginning a research project is the research question. I have developed questions that will guide me through my research:

Dedicated HR department. Is it necessary to have in 3 star Cassidys Hotel in Dublin - Ireland, instead of having HR function given to Mangers and HOD?

Can Manager's and HOD execute HR policies within Cassidys Hotel or does it dilute the practice?

Do HR functions executed by Managers fully support their employees in Training and Development and any other function that designated HR department would look after?

Research Objective

Get reactions from Managers, HOD and rest of the staff and identify the HR functions and polices implemented by Cassidys Hotel really work and employees are happy.

To find out if there is a need of having designated HR department within the Hotel.

To analyze different perspectives, preferences, rationale, feelings and beliefs given by managers and staff towards HR.

To find out current practices implemented within Cassidys Hotel.

To identify possible errors and problems and ways that this errors and problems could be minimized.

To check if service qualities and performance of employees lead to customers satisfaction?

Research Hypothesis

"A hypothesis is a logical supposition, a reasonable guess, an educated conjecture. It provides a tentative explanation for a phenomenon under investigation." (Leedy and Ormrod, 2001)

Human Resource Functions being executed by Managers and HOD can influence Cassidys Hotel in many ways. The lack of communication between Managers and HOD on procedures and practices implemented can have big impact on our organisation in terms of productivity level etc. Training and Development may not be executed properly due to lack of time given, or lack of financial budget designated for this function due to credit crunch or understaffing of employees.

How do employees and Mangers feel about training and development given to them? How do they perceive HR functions? Do they differ from Manager to HOD?

Designated HR department can greatly reduce stress that lies on shoulders of Managers executing this function; can also greatly improve communication within Cassidys Hotel. HR department can lead to better understanding of practices by Managers and staff.

HR department can greatly reduce staff turnover within our Organisation, as loss of valuable employees lead to great financial loss to the company.

Area of Research

Is there a possibility of implementing designated HR department within the Hotel instead of giving HR function to all Mangers and HOD?

Is there possibility of giving at least HR function to one Manger within organisation?

What are possible problem arising from having functions of HR given to Manager and HOD?

Are there a ways of improving Training and Development of staff within the company?

Do HR functions have negative influences on staff within Cassidys Hotel?

Is there noticeable relation within the company between employee performance and HR functions implemented?

Could designated HR department or HR function given to only one Manager improve overall company performance, staff perception, training and development within the company and staff turnover? Could these functions be controlled?

Research Philosophy

Realists tend to believe that whatever we believe now is only an approximation of reality and that every new observation brings us closer to understanding reality. In philosophy, realism signifies the assertion of the existence of a reality independently of our thoughts or beliefs about it and believes in practical knowledge. Realism goes well with the data collection method and population sample I am going to choose for my study. I will be realistic in my data collection and I will try to use also interpretive philosophical perspective.

Research Approach

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I will be moving from my theories to data, collecting quantitative and quantitative research. Deductive method is highly structured approach which will have to have large sufficient data in order to generalise conclusion. If this emphasis will not confirm my previous assumptions from the research philosophy I will return and find the mistakes. My data collection method will stay the same as above through qualitative, quantitative and pluralistic collection. Deductive arguments are attempts to show that a conclusion necessarily follows from a set of premises or hypotheses.

Research - Reasons for selecting HR

First of all selecting HRM supports my HR Master degree. It gives me better understanding of HR functions and practices. Secondly HR departments are on the decline among smaller businesses and organizations. Many smaller companies because of recession and credit crunch closed down their dedicated HR departments giving those functions to Mangers and HOD. This leads to serious lack of Training and Development of staff within organisation, lack of time to implement and execute practices. This research will also help the Organisation I work for to identify possible gaps in T&D, give better understanding of problems and give possible recommendations to minimize such errors.

Suitability of Researcher

Auditory learning style is one of that is going to be used in my research as it is very relevant to my research. Most of the information's will be delivered to me orally while holding interviews.

Kinaesthetic Learning - is learning by doing. Most appropriate type of learning for my research as I am one of the Cassidy's Hotel staff. During my shifts I am responsible for every single department within Cassidys Hotel working with around 45 staff members while on shift. I am active at all time and I relay on what I can experience by doing or performing tasks. I will be realistic investigating reality, collecting available data and statistics.

Reasons for choosing Cassidys Hotel

Cassidys Hotel has been chosen by my in my research. There are many reason for choosing this institution. First of all I am employed in Cassidys Hotel since February 2006. Cassidys Hotel also support me with my dissertation giving me time off when needed and looking after me in terms of collecting necessary data for my study. During all these years I have been working in Cassidys Hotel I have seen many changes implemented by my general Manager Mr. Martin Cassidy. At the beginning when I started I was employed by my general manager but before that I have had two interviews with dedicated HR department that was implemented in the Hotel. When the recession started around two years ago in 2009 designated HR department was demolished and HR department functions were given to all Managers and HOD. No training was provided form Managers in order to successfully implement those changes therefore there are many problems within the Hotel. I expect that this research will help me in my personal life to get the Master Degree, but most importantly will help Cassidys Hotel to see the big picture, identify problems and errors and to implement possible changes to minimize these errors.

I also feel strongly that this research will give me more understanding of the role in Cassidys Hotel, Managers and staff perceptions and beliefs. I feel that I could improve HR functions through my research and possibly encourage Mr. Martin Cassidy to go back to the traditional way of having designated HR department within the Hotel or give that function to one Manger instead to all.

Thesis content outline

This study will examine the following chapters:

Introduction to the study: Brief explanation of area of research,, research aims, research question, objectives, hypothesis, philosophy chosen and reasons for selecting my organisation.

Literature Review: this will explain Human Resource Management in practice, give detail explanation of advantages of having such as dedicated department within your organisation and differences between dedicated HR department to functions of HR given to Managers or HOD.

Research Mythology: this research will explain recipient full and comprehensive study of having designated HR department within organisation in order to help Managers and HOD manage their workforce more efficiently and effectively. I will examine the past experience of the Management where they had designated HR department within the Hotel and the present situation in the Organisation which I will personally gather from my previous experience working in Cassidys Hotel and in depth interviews during my data collection. I will be moving from my theories to data collecting quantitative and quantitative research. Deductive method is highly structured approach which will have to have large sufficient data in order to generalize conclusion. If this emphasis will not confirm my previous assumptions from the research philosophy I will return and find the mistakes. My data collection method will stay the same as above through qualitative, quantitative and pluralistic collection.

Analyze data and research results: I will be analyzing primary data collected through my research interviews, questionnaires and performance appraisals. I will be comparing research find, analyzing and measuring to my theories from Literature Review.

Conclusion: basically speaking it will be the last chapter in the research done concluding the research found during the study, it will provide findings and give good recommendations.

Conclusion to chapter one

Chapter one provides basic and general information to the research topic chosen. It gives clear but basic understanding of patch chosen by researcher in conducting entire study.

Literature Review

Human Resource Management looks at managing organisation employees. There are many functions in Human Resource that can be applied to Organisation. In Managing Human Resources: Personnel Management in Transition, Stephen Bach (2005:3) argues that, compared to a last decade, much of the controversy about the definition of HRM has dissipated. He considers that, in part, this may be due to the use of a broader and more encompassing definition of HRM. However, Bach (p.4) shows that the debate has not vanished by disagreeing with Boxall and Purcell's (2003:1) statement that HRM refers to:

"... all those activities associated with the management of the employment relationship in the firm. The term 'employee relations' will be used as an equivalent terms as will the term 'labor management'."

Before HR scholars have argued that in service organizations quality improvement must be focused on the selection, training, development and pay package (Lovelock 1985; Schneider 1994; Mohinder 2004; Chand and Katou 2007). It is also true that in a labor-intensive industry, the effective utilization of human resources can give an organization its competitive edge (Schneider and Bowen 1993; Mohinder 2004). Schneider (1994) found that perception of employees on HRM practices were significantly related to customer perception of service quality. Similarly, Hartline and Jones (1996) suggested that hotel contract employees should receive the necessary training in order to deliver high quality service.

A firm's human resources have an asset value that corresponds to the present value of future net cash flows that are derived from the skills, motivation, and adaptability of the firm's workforce (Becker et al., 1997), and companies are increasingly relying on their human assets as a source of competitive advantage.

Previous HRM researches have addressed "that in service industry, there is a positive relationship between employee perceptions of organizational HR practices and customer ratings of organizational service effectiveness" (Gilbert 1991; Tornow and Wiley 1991; Hoque 2000a, b; Hung 2006).

2.1 Dedicated HR department within organisation

Human Resource Management practices are positively related to improvement of service quality in hotels. There is a clear relationship between service quality and customer satisfaction and the significance has been widely discussed in much literature (Gro¨nroos 1990; Cronin and Taylor 1992; Parasuraman et al. 1985; Parasuraman, Zeithaml and Berry 1988; Fornell 1992).

Anderson, Fornell and Lehmann (1994) argues that the customer satisfaction requires experience with service provided and is greatly influenced by perceived service quality. Oliver (1980) argues that customers compare their perceptions of service performance the received in past to expectation prior to purchase or consumption. It is proven that when service performance exceeds their perceptions and expectations, overall satisfaction increases. Thus, customer satisfaction can be concluded to affect a customer's assessment of service quality and customer loyalty (LaBarbera and Mazursky 1983).

Chung (2002) stated that getting and properly maintaining high level of customer satisfaction benefits business organisation in many ways. That's why is so important to have that high level of customer satisfaction provided to your customers through your employees as satisfied customers will not only become your loyal customers but also will come back to do the business with you and spread the word-of-mouth of the company.

The relation between HR Practices and organizational performance plays big role in any organisation. Harrington and Akehurst (1996) and Gilbert and Guerrier (1997) argue that there is a positive correlation between service quality and business performance in the UK hospitality industry which is very similar to Irish Hospitality industry. Chain type hotels in Ireland and UK in order to improve thir performance have dedicated Human Resource Departments at cost reduced having big emphasis on service quality according to Hogue (2000). Smaller hotels mainly owned and family run have difficulties in implementing HR practices or having to have dedicated HR department as the cost plays the big and major issue within the organisation in order to stay competitive on the market. Indeed they tend to have policies and practices put in place but given to Managers and HOD. Many authors argue that dedicated HR department implementing good practices within organisation has a profound impact on performance, the service quality delivered, proper training and development of workforce and client satisfaction according to (Harrington and Akehurst 1996; Hoque 2000a, Nolan 2002; Garavan, Morley, Gunningle and McGuire 2002)

Human Resource department deals with management of the people within organisation. It also hiring members of staff which will involve attracting employees, training and developing, ensuring they will keep their positions, minimizing turnover, and ensuring that they perform to the expectations stated by the company. Is there a time dedicated for Managers or HOD within Cassidys Hotel to perform such actions? Do managers within chosen organisation have had enough training to perform such as functions?

Difficulties in communication and planning as well as low motivation and insufficient career options are mentioned as core problems in hotels that not having dedicated HR departments (Peters, 2005).

2.2 HR department - Key Responsibilities

Human resource management is concerned with the development of both individuals and the organization in which they operate. HR, then, is engaged not only in securing and developing the talents of individual workers, but also in implementing programs that enhance communication and cooperation between those individual workers in order to nurture organizational development.

Primary responsibilities that are included by HR would include:

Job analysis


Organisation and utilization of workforce

Measurement of work performance through i.e. 360 degree feedback

Performance appraisals of workforce

Training and development of workforce

Reward system in the organisation

Successful maintaining of workforce

Job analysis consists of determining-often with the help of other company areas-the nature and responsibilities of various employment positions.

This can encompass:

determination of the skills and experiences necessary to adequately perform in a position

identification of job and industry trends

Anticipation of future employment levels and skill requirements.

"Job analysis is the cornerstone of HRM practice because it provides valid information about jobs that is used to hire and promote people, establish wages, determine training needs, and make other important HRM decisions," stated (Thomas S. Bateman and Carl P. Zeithaml in Management: Function and Strategy). Staffing, meanwhile, is the actual process of managing the flow of personnel into, within (through transfers and promotions), and out of an organization. Once the recruiting part of the staffing process has been completed, selection is accomplished through job postings, interviews, reference checks, testing, and other tools.

Organization, utilization, and maintenance of a company's work force are another key function of HRM. This involves designing an organizational framework that makes maximum use of an enterprise's HR and establishing systems of communication that help the organization operate in a unified manner. Other responsibilities in this area include safety and health and worker-management relations. Human resource maintenance activities related to safety and health usually entail compliance with federal laws that protect employees from hazards in the workplace. Maintenance tasks related to worker-management relations primarily entail: working with labor unions; handling grievances related to misconduct, such as theft or sexual harassment; and devising communication systems to foster cooperation and a shared sense of mission among employees.

Performance appraisal is the practice of assessing employee job performance and providing feedback to those employees about both positive and negative aspects of their performance. Performance measurements are very important both for the organization and the individual, for they are the primary data used in determining salary increases, promotions, and, in the case of workers who perform unsatisfactorily, dismissal. For best HR practice is believed that Performance Appraisals should be conducted within the organisation every 3-6 months.

Reward systems are typically managed by HR areas as well. This aspect of human resource management is very important, for it is the mechanism by which organizations provide their workers with rewards for past achievements and incentives for high performance in the future. It is also the mechanism by which organizations address problems within their work force, through institution of disciplinary measures. Aligning the work force with company goals, stated (Gubman) "requires offering workers an employment relationship that motivates them to take ownership of the business plan."

Employee development and training is another vital responsibility of HR personnel. HR is responsible for researching an organization's training needs, and for initiating and evaluating employee development programs designed to address those needs. These training programs can range from orientation programs, which are designed to a new hires to the company, to ambitious education programs intended to familiarize workers with a new software system.

"After getting the right talent into the organization," by (Gubman) "the second traditional challenge to human resources is to align the workforce with the business-to constantly build the capacity of the workforce to execute the business plan." This is done through performance appraisals, training, and other activities. In the realm of performance appraisal, HRM professionals must devise uniform appraisal standards, develop review techniques, train managers to administer the appraisals, and then evaluate and follow up on the effectiveness of performance reviews. They must also tie the appraisal process into compensation and incentive strategies.

Responsibilities associated with training and development activities, meanwhile, include the determination, design, execution, and analysis of educational programs. The HRM professional should be aware of the fundamentals of learning and motivation, and must carefully design and monitor training and development programs that benefit the overall organization as well as the individual. The importance of this aspect of a business's operation can hardly be over-stated. As Roberts, Seldon, and Roberts indicated in Human Resources Management, "the quality of employees and their development through training and education are major factors in determining long-term profitability of a small business…. Research has shown specific benefits that a small business receives from training and developing its workers, including: increased productivity; reduced employee turnover; increased efficiency resulting in financial gains and decreased need for supervision."

Meaningful contributions to business processes are increasingly recognized as within the purview of active human resource management practices. Of course, human resource managers have always contributed to overall business processes in certain respects-by disseminating guidelines for and monitoring employee behavior, for instance, or ensuring that the organization is obeying worker-related regulatory guidelines-but increasing numbers of businesses are incorporating human resource managers into other business processes as well. In the past, human resource managers were cast in a support role in which their thoughts on cost/benefit justifications and other operational aspects of the business were rarely solicited. But as Johnston noted, the changing character of business structures and the marketplace are making it increasingly necessary for business owners and executives to pay greater attention to the human resource aspects of operation: Tasks that were once neatly slotted into well-defined and narrow job descriptions have given way to broad job descriptions or role definitions. In some cases, completely new work relationships have developed; telecommuting, permanent part-time roles and outsourcing major non-strategic functions are becoming more frequent. All of these changes, which human resource managers are heavily involved in, are important factors in shaping business performance.

"Human resource management (HRM) is responsible for how people are treated in organizations. It is responsible for bringing people into the organization, helping them perform their work, compensating them for their labours, and solving problems that arise" (Cherrington, 1995, p. 5).

Legge (1995) has a pessimistic viewpoint that HRM is merely a new rhetoric concerned with masking the labour intensification and commoditisation required by the enterprise culture. (Keenoy & Anothony, 1992).

One of the beautiful but frustrating things about working, teaching or researching in the hospitality area in the range of contradictions that are faced on a daily bases, born out of the diverse nature of the industry in terms of pure size, geographical location, culture, business purpose and varied customer expectations. (Baum & Nickson, 1998). The authors Baum and Nickson also say the hospitality sector defies generalization in almost every aspect of its operation and this defiance is, undoubtedly, one of the root causes of contraction.

Within the hospitality industry, a debate still continues as to the definition and nature of HRM and the extent to which it has been adopted by the Industry. (Hoque, 1999; Worsfold, 1999). Lashley (1997) has suggested that there might be four ideal types of HRM strategy matched to different combinations of service features based on two dimensions, external versus internal control, and standardized versus customised service offers. Lashleys work challenges the very essence of universality and reinforces the legitimacy of the command and control approach. (Christensen, 2002)

Getting the Big picture is on of the major steps in developing effective HR department. It is very important to draw the key forces needed to achieve success. Depending on business they could differ from: technology, competition, distribution or markets.

Human resource management is a complex process which is constantly evolving and being studied and discussed by academics and commentators. Its definition and relationships with other aspects of business planning and strategy is not absolute and opinion varies between writers.

Guest (1987) evaluated applications of HRM and argues that companies will be more successful if they pursue four key HRM goals.

A useful mechanism for the subsequent translation of high level HRM objectives into meaningful HR action plans is the human resource planning (HRP) process. The key purpose of HRP is to ensure that the organisation has the appropriate level and quality of human resources that it needs in the context of its business objectives. There are four key stages in this process:

1. Stock take existing resource and skills levels in the context of the requirements of business strategy. This process is influenced by external factors which are outside the control of the organisation, including labour market trends and central recruitment processes. Nonetheless the impact of a range of internal factors, including, staff turnover trends, absenteeism and skills levels should be identified.

2. Forecast likely future resource levels by reference to projected flows in and out of the organisation, e.g. based on likely promotion, resignation, recruitment levels.

3. Next, there is a need to critically evaluate existing HR policies to establish what needs to change if the organisation is to be appropriately resourced and equipped. Ulrich (1998) outlines a useful framework (see Appendix 1) which enables an organisation to both identify desired plans and critically assess existing activities in the light of its strategic objectives.

4. Following this evaluation, specific plans for a range of HRM activities should be developed, and drawn together into a formal HR strategy. While its specific content will vary from organisation to organisation, plans should be developed for a range of areas, including recruitment, training, rewards and performance management.

Many Irish and British writers have focused on the difference between the Harvard ''commitment'' concept of HRM and the strategic HRM concept.

In theory, soft HRM fulfils employee needs as an end in itself, and the favourable attitudes generated from the use of "appropriate" HRM practices (Guest, 1997) together with "communication, motivation and leadership" (Storey, 1987, p. 6), result in commitment to the organisation and improved performance. Hard HRM is only concerned with the effective utilisation of employees (Guest, 2002) and emphasises the quantitative, calculative and business strategic aspects of managing the head count resource in as "natural" a way as for any other economic factor (Storey, 1987, p. 6). Hendry and Pettigrew (1986), have similar statements being that "soft" HRM emphasises fostering commitment, improving quality and developing human resource. They define "hard" HRM as contingent and calculating in its utilization of the human resource. Truss et al (1997) has defined the hard model is based on notions of tight strategic control.

By looking at Hospitality Industry Human resource management has its similarities and differences with organisations that are in the AIS industry, although both operate with a hard HRM approach they both vary extensively. Lucas umbrellas that within HI industries an extremely Hard HRM ideal is in operation, which in other words means that there is a stronger onus on control and employees have very little freedom and right to express initiative in the workplace which in turn is due to the factor that there is a large lack of union representation with HI organisations. Even though within most AIS industries there is a hard HRM strategy in place, management is much more individualized and control based within HI industries, promoting a very extreme managerial approach and is only due to the element of disposable labour.

Raub, Alvarez and Khanna make similar points and identify with Lucas that the hospitality industry is extremely labour intensive and includes very average working conditions with a level of education between labour which is widely diverse. They have also identified that reasons for issues within HI firms is because the lack of involvement of HR managers play with the decision making process and a gap which proceeds with line management, basically HR managers are getting caught up with administrative tasks with a lesser importance than the general achievement and success of the organisations goals in the long run.(Lucas, 2000, Raub et al, 2006)

In short, HRM in the hospitality industry provides an extreme example of the "retaining control/cost control" approach to management identified by Cully et al. (1999), and a graphic illustration of very "hard" HRM in practice.

Tracey and Nathan (2002) find that despite its widely recognised importance, the HR function in the hospitality industry is oddly disconnected from the line function.

However Lucas (2002) also found that some of the HRM practices are not designed to foster constructive relations with employees or to represent a managerial approach that enables developing and drawing out the full potential of people, even though employees may be broadly satisfied with many aspects of their work. It is therefore tempting to suggest that their might be benefits into taking a more "soft " approach to HRM in the hospitality industry as it might yield greater benefits.

In specific areas within the hospitality industry such as hotel and restaurants, human resource management has a very unfulfilling role. Kelliher and Klausen signpost that within the smaller hotels the main role for HR practices is recruitment, selection and once again the handling of small administrative tasks that have no relevance to the organisations performance in the overall scheme of things. Price undercover the issue of employment practices contrasting with large and small organisations within the hotel area.

He identifies that within larger firms employers understand the need for a corporate culture, formality and the training of their employees while in the smaller firms where the owner is the manager there is a steep tilt towards informality and professionalism

Like Lucas, Kelliher and Johnson make the same argument and present us with the fact that there is little freedom and the chance to use their initiative given to the human resource managers despite the expansion of the personnel function with larger hotels. However, the managers involvement has increased somewhat, they are now finding themselves in a position where they are being correlated with the firms decision making process and that HR tasks are being highlighted as having significant role within the business plan.(Price, 1994, Kelliher and Johnson 1997)

Nepotism, the phenomenon that provides merely to the family members or close friends can be seen extensively in small hotels. This paralyses human resource practices and affects the level of satisfaction among employees. If nepotism is felt intensively, the HRM practices cannot work independently, employees may not be sufficiently motivated. (Arasli et al, 2006). This view is supported by results (Pare et al, 2001) study which suggests that HRM boosts JSAT and organisational performance if HRM works properly. Otherwise employees will demonstrate negative word of mouth.

Tracey and Nathan (2002) call for a decentralised HRM model, comes in line with these desires. Their approach that "all decision- making authority, responsibility and accountability should be vested in the person who supervises the employee" links with Raub et al (2006) findings.

Recent study results have strongly suggested there may be a universally superior approach to HRM, regardless of business strategy followed. ( Bamberger and Meshoulam, 2000). Yet Bamberger and Missoula (2000) studies where support was shown was modest. Instead, equal or more powerful relationships have been found to exist between one specific type of HR approach (in high commitment) and organisational performance. (Christensen 2000).

Arasli et al (2006) suggests that in order to enhance employee performance and loyalty they must improve there human resource practices. Hotels need to use professional working systems and organise training programs by there human resource or personnel department management. (Arasli et al, 2006)

How the organisation treats their employees will also affect customers. Whether a company follow more of an autocratic form of management or lasser - fair who will provide them with more responsibilities in expanding the business. If your human resources strategy is working, you won't need a customer service training program to teach workers to smile.  On the other hand, employees in uncomfortable situations will generally tend to be ruder to guests and one another.  Employee turnover, absenteeism, attitude surveys, and accident rates are all indicators for measuring employee satisfaction. Group dynamics and group think is one of the most important issues in building successful work place and achieving goals determined. HR in organisation should help organisation to form successful groups in selecting people to departments with different skills but same perspectives. (Hoque, K. 2000), (Lucas, R. 2004)

By seeking greater involvement from employees the emphasis is on offering autonomy, creativity, co-operation and self-control in work processes. The use of educative and participative mechanisms, such as team briefings and quality circles are allied to changes in the organization of work which support an 'empowered' environment. (Baum, T, 1995)

Key Human Resource areas are given in appendix 1. They are the most common functions of the HR. Also, the HRM practices used in this study are supposedly best practice; however, there is still insufficient evidence available to confirm that they are indeed best practice. Finally, Gibb (2001) suggests effective HRM is about implementing best practice.

2.3 Financial factors and limitations

HR departments are run on relatively low cost in chain operated Hotels as they would have one dedicated HR department. This department would in most cases cover large are of Hotels. In example done through my research Jurys Hotels "Doyle Collection" would have dedicated HR department that hires, trains and develop employees within Dublin area. They also conclude meetings with employees apprise them on 6 months bases and monitor their performance. Smaller Hotels usually have HR functions given to Managers as they don't have necessary financial sources to have such department, where Cassidys Hotel is one of those Hotels.

The relationship between size and HRM bas received considerable attention. In example, in a study done in the UK, Hogue (1999 b) found larger hotels were more likely to adopt HRM practices than smaller hotels because of better financial stability. Overall, Hogue found that a majority of hotels bad adopted HRM practices because of lack training and development given to Managers and HOD. Thus, Hogue (2000, p. 74) argued that "it seems that as managers have accepted the importance of service quality.

The initial cost of implementing dedicated HR department within the hotel could be quite expensive however the money could be made on it in the long run:

Initial implementation of HR could cost the owner good bit of money given that the person responsible of such as department "if one only" have to have proper training given, possibly CIPD Qualified and in some cases having good record of doing such function in past. This job requires good knowledge of employment laws and regulations. People that are CIPD Qualified with good past records are generally expensive to employ.

Saves of personal administration of employees within the organisation

Training and development practices implemented within the hotel are less expensive to those where employees are sent for training.

Nonetheless, "most small business employers have no formal training in how to make hiring decisions," noted Jill A. Rossiter in "Human Resources: Mastering Your Small Business. " Most have no real sense of the time it takes nor the costs involved.

2.4 Changing field of Human Resource

The Development of Human Resource Departments now days become a major aspect within organizations. Recent development of more specialized companies (small firms) who provide HR practices it's also huge and common.

Without effective Human Resource Department Company is able to achieve success but now days becoming harder as peoples change their attitudes towards organization by demanding more from their employers.

''The management of people has become a critical issue for the hotel industry in recent years, as more emphasis has been placed on quality. The hotel industry is necessarily labour intensive and this makes it particularly important that it develops effective human resource practices, policies and strategies to achieve competitive success'' (Pfeffer, 1998).

The interaction between customers and employees in the Hotel industry depends on HR practices both personal and psychological.

Since the mid 1990s, CIPD and others have been generating evidence for the impact of people management practices on business performance. Much emphasis has been put on the importance of 'fit'. In other words it is argued that HR strategies must fit both with each other and with other organisational strategies for maximum impact. The main areas of practice which all the researchers agreed have an impact on performance are around job design and skills development.

However, CIPD work found that practices alone do not create business performance. They can create 'human capital' or a set of individuals who are highly skilled, highly motivated and have the opportunity to participate in organisational life by being given jobs to do. However, this will only feed through into higher levels of business performance if these individuals have positive management relationships with their superiors in a supportive environment with strong values.

In recent years most business trends have had significant impact on broad field of HR. New technologies were a major issue facing HR department's especially electronic communication methods. Satellite communications, telecommunicating, computer networking have all facilitate big change in which business interact with each other and their workers.

Accelerating marketing and global communication have another big impact on ways that HR departments must face these days. This phenomenon has served to increase competition for both customers and jobs. The latter development enabled some businesses to demand higher performances from their employees while holding the line on compensation.