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International Journal of Management (IJM) Volume 7, Issue 6, September–October 2016, pp.116–122, Article ID: IJM_07_06_013 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=7&IType=6 Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 © IAEME Publication ROLE OF HR PRACTICES IN EMPLOYEES’ SATISFACTION: A CASE STUDY ON 3-STAR HOTELS OF AHMEDABAD, GUJARAT Neela Multani Assistant Professor, Department of Science & Humanities, SVBIT, Unava, Gujarat, India. ABSTRACT Human Resource Management is an integral part of any organization and when it is about hospitality industry HR department plays a crucial role in organization’s growth, because only satisfied employees can serve better to the customers. Human resource department not only recruit the best employees but also guide their career map. The purpose of this study is to find out that how and which HR practices play an important role in increasing employees’ satisfaction in hotel industry. This study focuses on lower level employees of 3-star hotels in Ahmedabad, Gujarat. A pilot study was conducted first and HR executives/managers of hotels were interviewed. On the basis of these interviews, factors which affect employees’ satisfaction were identified and questionnaire was designed for employees. Responses were taken from the lower level employees of the hotels. This study shows that employees are satisfied with working conditions and somewhat with the salary and other benefits they are receiving. The employee turnover rate observed in hotel industry is relatively high. Key words: Employee Satisfaction, Hotel Industry, HR Practices. Cite this Article: Neela Multani, Role of HR Practices in Employees’ Satisfaction: A Case Study on 3-Star Hotels of Ahmedabad, Gujarat. International Journal of Management, 7(6), 2016, pp. 116– 122. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=7&IType=6 1. INTRODUCTION Hotel industry is one of the fastest growing sectors of the economy. Due to globalization, business opportunities between countries have increased. Now a day, people tend to travel more across countries for business, tourism and other purposes and the need for good places to stay during visits gave boost to the requirement of good hotels across the globe. Indian hospitality has a great image since very early times in the history of travel and tourism. But in modern concept of mass tourism, Indian hotel industry started very late compared to the hotel industry elsewhere in Europe and America and evolved at a snail’s pace. Though our hotel industry is small in size yet qualitatively we are not only at par with the best hotel industry in the world but the best in some respect. Some of the Indian hotel groups are outstanding in providing hospitality and the best services and facilities to the tourist. As we know that hotel industry is a service industry and only best service can give satisfaction to the customer which helps in the growth of any hotel [1]. http://www.iaeme.com/IJM/index.asp 116 editor@iaeme.com Role of HR Practices in Employees’ Satisfaction: A Case Study on 3-Star Hotels of Ahmedabad, Gujarat 2. BRIEF HISTORY OF AHMEDABAD HOTELS Ahmedabad the city ruled by Ahmed Shah Abdali, during the 13th century was also famous as Manchester of India for its clothing. The city has owned a name and fame to the various sectors and then started including towards the hotel industry. The first modern hotel in Ahmedabad was ‘CAMA’ started in 1960. After seeing the success of CAMA the revolution came in the market and then KARNAVATI and NATRAJ hotel started. After this it has been boom period of (ITDC) revolution in India. They took over operations of hotel Karnavati and Karnavati Ashok came into limelight. The “Quality Inn” was the first international hotel brand entering into the city and with the launching of ‘Quality Inn’ suites ‘SHALIN’ Ahmedabad found place on world hoteliering map. They started the first revolving restaurant in city and were the first one to introduce the concept of International cuisine, but after few years Quality Inn and SHALIN a parted. Hotel Ummed which was owned by Ummed Singh was doing average business which was given to Trident a mid-market brand of Oberoi hotels and then again to SOFITEL group and then to Taj group of hotels to be re-launched as “TAJ UMMED” in year 2000 on management franchised basis. Balwas hotel which is located near Nehru Bridge was second hotel in city to take International brand and was re-launched as “HOLIDAY INN”. After successful operations for few years and with a good market standing the promoter terminated the agreement with HOLIDAY INN and re-launched them as another International brand “LE MERIDIAN”. Even finest hotel of the Ahmedabad CAMA also replicated this new trend by re-launching in market with Sarovar Park Plaza in year 2000 and was renamed as Cama Park Plaza [1]. 3. INTRODUCTION TO HR DEPARTMENT OF HOTEL INDUSTRY In hotel industry employees come in direct contact with the customers, so they need well trained and satisfied workforce and this led the need for human resource department in hotel industry. The various functions performed by the HR department are Manpower Planning, Recruitment, Training and Development Programs, Performance Appraisal, Industrial Relations, Wage and Salary Administration [2]. In all large hotels, there is well established training division of the personnel department. Its objectives are to increase output and sales, to improve employee’s knowledge, skill and attributes to work, to improve recruitment, to improve employee’s loyalty and to improve image of the company. The purpose of this study is to identify the HR Practices in hotels and their role in employees’ satisfaction. 4. EMPLOYEE SATISFACTION Employee satisfaction simply means employees are how much happy and content with their job [3]. Satisfied employees are more productive for any organization. There is a direct relationship between employee attitude and customer satisfaction. In spite of their best efforts, unhappy and dissatisfied employees cannot conceal their dissatisfaction during interaction with customers. For any organization, it is important to evaluate employee satisfaction level to identify and resolve the problems related to dissatisfaction before they impact on customers. In addition to this, other benefits of measuring and improving employee satisfaction are reduced turnover, training need assessment, streamlined communication, and reduction in absenteeism, etc. It also helps in attracting quality employees. 5. LITERATURE REVIEW Good Human Resource Management (HRM) practices create positive environment within the organization which in result encourages positive employee behavior and thus enhanced service quality (Sheng-Hshiung Tsaur & Yi-Chun Lin 2004) [4]. Mohinder Chand, Anastasia A. Katou (2007) studies about identification of various HRM practices and its effect on organization performance in Indian hotel industry and they find out that there is a positive relation between hotel performance and various HR practices like recruitment and selection, manpower planning, training and development and pay systems[5]. S. C. Bagri, Suresh Babu & Mohit Kukreti (2010) on their study on Taiwan hotel industry concluded that employee turnover rate is relatively high in hotels because employees are not satisfied with the working conditions in spite of getting good salary [6]. Mohinder Chand (2010) investigates the effects of HRM practices on service quality, http://www.iaeme.com/IJM/index.asp 117 editor@iaeme.com Neela Multani customer satisfaction and performance in the hotel industry and he conclude that good HRM practices have positive influence on service quality of the hotel which leads to customer satisfaction and hence the better hotel performance[7]. 6. PROBLEM STATEMENT In the era of hotel industry HR department presence was not felt in the past. However, in the late ‘90’s service industry started booming and hotel industry started showing its colors. The various categories of hotels like 3, 4, 5 stars came into existence which provided varied numbers of services and luxuries to their customers. The basic aim of service industry is customer satisfaction and to maintain customer satisfaction it is very important to maintain employee satisfaction. Therefore, HR department came into existence that can look after the employee related activities for employee satisfaction. This study is to know about various HR practices carried out in hotel industry for employee satisfaction. 7. OBJECTIVES OF THE STUDY The objectives of the study are: • • • To study about various HR practices carried out in hotels To identify the factors leading employee satisfaction To assess the lower level employees’ satisfaction level 8. RESEARCH HYPOTHESES • H0: There is association of rewards & recognition with respect to tenure of work H1: There is no association of rewards & recognition with respect to tenure of work • H0: There is association between education qualification & salary range H1: There is no association between education qualification & salary range • H0: There is association between performance appraisal & salary range H1: There is no association between performance appraisal & salary range 9. RESEARCH METHODOLOGY Twelve three star hotels of Ahmedabad city were approached for the purpose of the study. The degree of satisfaction of employees on the parameters was quantified by using a 5 - point Likert’s scale. A pilot study was conducted in which HR Executives/Managers of the hotels were interviewed. This pilot study helped for designing questionnaire with relevant factors which affect employee satisfaction. For data collection 145 respondents were contacted by convenient random sampling method. The exploratory cum descriptive research design was adopted for this study. After the field work data was analyzed by using statistical software SPSS 15.0. 9.1. Research Approach The structured questionnaire was prepared on the basis of objectives of the study. Employees were contacted directly with the permission of their supervisor for data collection. 9.2. Research Instrument The structured questionnaire consists of multiple choice questions was used to collect data. The questionnaire was prepared in such a way that it includes all the relevant information needed for the study. http://www.iaeme.com/IJM/index.asp 118 editor@iaeme.com Role of HR Practices in Employees’ Satisfaction: A Case Study on 3-Star Hotels of Ahmedabad, Gujarat 10. DATA COLLECTION The data were collected both from the primary and secondary sources. For primary data collection structured questionnaire was used with close ended questions on the 5 points Likert’s Scale. The secondary data were collected from books, articles, research papers, journals and hotel management institute. 11. DATA ANALYSIS For analyzing the data, proper tools and techniques were used. As the questionnaire was already classified in different heads, it becomes easy to classify the raw data which comes under heads like corporate culture, communication, career development, training program, employee’s role in the organization, working conditions, employee’s immediate manager, benefits/compensation packages, about top management, work itself, rewards/recognition, performance management and other policies. Questionnaire contains two parts: part A contains close ended questions and theses data are analyzed with the help of charts. Hypotheses tested with the help of chi-square test on the parts B. Statistical Package for social sciences (SPSS) has been used to analyze and interpret the data collected with the help of the tool via Chi-square test. Table 1 Satisfaction level of employees Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Corporate Culture 30% 48% 21% 0.50% 0.50% Communication 31% 52% 16% 1% 0% Training & Career Development Program 30% 51% 18% 0.50% 0.50% 26.50% 57% 16.50% 0% 0% Teamwork & Cooperation 28% 55% 17% 0% 0% Working Conditions 27% 53% 19.50% 0.50% 0% Employee's Immediate Manager 27% 54% 18% 1% 0% Benefits/ Compensation package 24% 58% 17% 1% 0% Top Management 27% 56% 14.50% 2.50% 0% Work Itself 34% 48% 17% 1% 0% Rewards/ Recognition 31% 57.50% 11% 0.50% 0% Performance Management 22% 57% 19% 2% 0% Other Policies 27% 50% 20% 2% 1% Average 28% 53.6% 17.2% 1% 0.2% Factors Employee's Role http://www.iaeme.com/IJM/index.asp 119 editor@iaeme.com Neela Multani Figure 1 Employees’ satisfaction level From the above table and graph, we can say that most of the employees in hotels are satisfied with the HR practices followed in their hotels. On an average 28% employees are highly satisfied, 53.6% satisfied, 17.2% neutral, 1% dissatisfied and 0.2% highly dissatisfied with hotel’s HR practices. Association between various factors like rewards & recognition, tenure of work, educational qualifications, performance appraisal and salary range were also tested as below. 11.1. Hypothesis Testing: [Chi-Square] 11.1.1. Hypothesis 1 H0: There is association of rewards & recognition with respect to tenure of work H1: There is no association of rewards & recognition with respect to tenure of work Chi-Square Tests Symmetric Measures Nominal by Phi Nominal Cramer's V Contingency Coefficient N of Valid Cases Value Approx. Sig. .665 .040 .470 .040 .554 .040 Value Pearson Chi-Square 64.136a Likelihood Ratio 53.296 Linear-by-Linear 1.459 Association N of Valid Cases 145 145 Asymp. Sig. df (2-sided) 46 .040 46 .214 1 .227 a.63 cells (87.5%) have expected count less than 5. T minimum expected count is .07. http://www.iaeme.com/IJM/index.asp 120 editor@iaeme.com Role of HR Practices in Employees’ Satisfaction: A Case Study on 3-Star Hotels of Ahmedabad, Gujarat The above result shows that the Chi-Square value is less than 0.05, so H1 is not rejected. So we can say that there is no association of rewards & recognition with respect to tenure of work & phi value shows that there is stronger relationship of non-association. 11.1.2. Hypothesis 2 H0: There is association between education qualification & salary range H1: There is no association between education qualification & salary range Symmetric Measures Chi-Square Tests Value Pearson Chi-Square42.586a Likelihood Ratio 41.007 Linear-by-Linear 42.199 Association N of Valid Cases 145 df Asymp. Sig. (2-sided) 2 .000 2 .000 1 Nominal by Nominal Phi Cramer's V N of Valid Cases .000 Value Approx. Sig. .542 .000 .542 .000 145 a.Not assuming the null hypothesis. a. 2 cells (33.3%) have expected count less than 5. The b.Using the asymptotic standard error assuming the null hypothesis. minimum expected count is 1.21. The above result shows that the Chi-Square value is more than 0.05, so H0 is not rejected. So we can say that there is no association between education qualification & salary range & phi value shows that there is strong relationship of non-association. 11.1.3. Hypothesis 3 H0: There is association between performance appraisal & salary range H1: There is no association between performance appraisal & salary range Symmetric Measures Chi-Square Tests Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases Value 7.406a 6.879 2.656 6 6 Asymp. Sig. (2-sided) .285 .332 1 .103 df 145 a. 6 cells (50.0%) have expected count less than 5. The minimum expected count is .10. Nominal by Nominal Phi Cramer's V N of Valid Cases Value Approx. Sig. .226 .285 .160 .285 145 a.Not assuming the null hypothesis. b.Using the asymptotic standard error assuming the nu hypothesis. The above result shows that the Chi-Square value is more than 0.05, so H0 is not rejected. So we can say that there is association between performance appraisal & salary range & phi value shows that there is stronger relationship in association of performance appraisal & salary range. 12. CONCLUSION Basically employee satisfaction is dependent on benefits package, training and development, relationship with supervisor, working conditions, teamwork and cooperation, recognition and rewards, empowerment and communication. Companies should be mindful of these variables of satisfaction. From the Chi-Square analysis we can say that association is not possible between the tenure of work, performance appraisal & http://www.iaeme.com/IJM/index.asp 121 editor@iaeme.com Neela Multani rewards/recognition as the turnover ratio is very high in Hotel Industry. Performance appraisal is linked with the salary range & both have a strong association. In most of the surveyed hotels we can conclude that education is not related to the salary range as it is a service industry, it is totally skilled based as the person appointed as senior Chef is an undergraduate & his salary range is between 8000 and 12000 rupees. RECOMMENDATIONS • • • • • There is a hike in salary but it is very low, so it should be raised to some extent. The turnover ratio is found to be high in this industry, however, the management tries to curb it through giving increments & counseling but apart from that they can provide job enrichment for the employees who are potential and are leaving the hotel. It is also found that most of the hotels complained about absenteeism, so management should come up with initiative like rewarding the employees who have not taken any leaves or minimum leaves during last three to six months. Hotels have HR department but they don’t carry out proper HR activities like training, performance management, employee welfare etc. So the management needs to think about redeveloping HR department who looks after all major activities of HR. To increase the job satisfaction level of the employees, the hotels should concentrate mainly on the incentive and reward structure & the motivational session. REFERENCES [1] Reports of Institute of Hotel Management, Gandhinagar. [2] Human Resource Practices in Hotel Industry. http://www.slideshare.net/hemanthcrpatna/a-project-reporton-hr-practice-in-hotel-industry [3] Employee Satisfaction.http://www.custominsight.com/employee-engagement-survey/what-is-employeesatisfaction.asp [4] Linb Yi-Chun, Tsaura Sjeng-Hshiung. Promoting service quality in tourist hotels: the role of HRM practices and service behavior. Journal of Tourism Management. 25(4), 2004, pp. 471–481 [5] Chand Mohinder, Katou Anastasia A. The impact of HRM practices on organizational performace in the Indian hotel industry. Journal of Employee Relations. 29(6), 2007, pp. 576-594. [6] Dr. Bidyut Jyoti Gogoi, Antecedents of Drivers of Satisfaction in Hotel Industry and Its Impact on Customer Loyalty. International Journal of Management (IJM), 6(8), 2015, pp.31-41. [7] Bagri S. C., Babu S. & Kukreti M. Human Resource Practices in Hotels: A Study from the Tourist State of Uttrakhand, India. Journal of human resources in hospitality & tourism, 9(3), 2010, pp. 286-299. [8] Chand Mohinder. The impact of HRM practices on service quality, customer satisfaction and performance in the Indian hotel industry. The international journal of human resource management. 21(4), 2010, pp. 551-566. [9] Gaurav Gupta and Urvashi Singh, A Study of ERP System for Employee Satisfaction in an IT Organization. International Journal of Management (IJM), 5(10), 2014, pp.25-32 http://www.iaeme.com/IJM/index.asp 122 editor@iaeme.com