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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
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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].
Role of HR Practices in Employees’ Satisfaction: A Case Study on 3-Star Hotels of Ahmedabad, Gujarat
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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,
Neela Multani
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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.
Role of HR Practices in Employees’ Satisfaction: A Case Study on 3-Star Hotels of Ahmedabad, Gujarat
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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
Factors 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%
Employee's Role 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%
Neela Multani
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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
64.136
a
46 .040
53.296 46 .214
1.459 1 .227
145
Pearson Chi-Square
Likelihood Ratio
Linear-by-Linear
Association
N of Valid Cases
Value df
Asymp. Sig.
(2-sided)
63 cells (87.5%) have expected count less than 5. The
minimum expected count is .07.
a.
Symmetric Measures Value
Approx.
Sig.
Nominal by
Nominal
Phi .665 .040
Cramer's V .470 .040
Contingency
Coefficient .554 .040
N of Valid Cases 145