Impact Of Human Capital Management On Organizational Performance In Hospitality Industry

This study was carried out on the impact of human capital management on organizational performance in hospitality industry using some selected hotels in Awka, Anambra State as a case study. The study was focused on key HCM practices which includes; recruitment & selection, training & development, performance appraisal and career development. The survey design was adopted and the simple random sampling techniques were employed in this study. The population size comprised of employees of some selected hotels in Awka, Anambra State. In determining the sample size, the researcher conveniently selected 57 respondents and 50 were validated. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables, and mean scores.The hypotheses was tested using Pearson Correlation Statistical tool. The result of the findings reveals that human resource management promotes organizational commitment in the hospitality industry. The study reveals that recruitment & selection, training & development, performance appraisal and career development. Therefore, it is recommended that training and development programmes should be prioritized in the hospitality industries and workers should be made to develop their careers by ensuring their job security and not just being used for the organizational growth; but later abandoned being useless and unproductive. To mention but few.

Introduction

1.1 Background of the Study

One of the vital factors contributing to the success of an organization is human capital, which drives path breaking changes and creates a learning environment. Human capital resources are considered a specific resource in an organization which influences a company"s success and its competitive position (Becker and Huselid, 2006; Wright et al., 2001). Such resources take on special relevance when dealing with labour-intensive service industries especially, the hospitality industry where the human factor holds the ultimate balance in the organization"s success because of the important interaction between employees and guests at the service interface (Kandampully et al., 2011). Human resources (HR) remain an important determinant of tourism production and affects destination competitiveness (Murphy and Price, 2005), hence ensuring adequate human capital management is paramount.
Human capital management is an integrated effort to manage and develop human capabilities to achieve significantly high level of performance. Human capital management practices are set of practices that are focused on organizational needs to provide specific competencies. It is an approach to employee staffing that perceives people as assets (human capital) whose current value can be measured and whose future value can be enhanced through investment. According to Gartner (2015), it is a "set of practices related to people resource management," specifically in the categories of workforce acquisition, management and optimization. In addition to the traditional administrative tasks, it includes workforce planning and strategy, recruitment on boarding, employee training, reporting and analytics. What then is the purpose of human capital existence and management? It is for the purpose of working in an organization for optimum performance.

Literature shows that the role of human capital in increasing organizational performance is very important. It is the key element in improving productivity, performance as well as competitiveness. Undoubtedly, skilled and efficient manpower is one of the most important tools to achieve organizational goals because it has an important role in the strategic planning and increasing or decreasing the organization"s productivity. Literature also reveals that human capital management is measured by using different methodologies; but scholars from across the disciplines have not been able to have a universal frame work for the measurement of human capital management to ensure effective organizational performance. Bassi & McMurrer (2007) developed a system for assessing human capital management in predicting organizational performance and guiding organizations" investments in people. The empirical research conducted by them has revealed a core set of human capital management drivers that predict performance across a broad array of organizations and operations. These drivers fall into five major categories: leadership practices, employee engagement, knowledge accessibility, workforce optimization and organizational learning capacity. On this note, the study seek to examine the impact of human capital management on organizational performance in hospitality industry.

1.2 Statement of the Problem

Human Capital Management is a key business activity in the present globalized commercial center. Without knowledge into workforce and ability needs, authoritative execution endures. To line up with basic and rising business objectives and measurements, the saving money industry needs to guarantee that Human Resource has a solid comprehension of the association"s rising and center business issues and key measurements and execution pointers to figure out what Human Resource related information will be most helpful in adjusting and driving business execution (Bozbura, et al., 2007). People, associations and countries progressively perceive that large amounts of aptitude and ability are basic to future security and achievement.

Individuals, organizations and nations increasingly recognize that high levels of skill and competence are essential to future security and success. It is common knowledge that as individuals acquire more education and training during a lifetime, human capital drives the production of goods and services, as well as new innovations in the marketplace. While the economic value of human capital cannot be questioned, an important concern among scholars is if there is any relationship between human capital development and organization performance. On the bases of the above this study seek to determine the impact of human capital management practices(recruitment & selection, training & development, performance appraisal, and career development) on the performance of hospitality industry.

1.3 Objectives of the Study

The man purpose of the study is to examine the impact of human capital management on organizational performance in hospitality industry. Specifically, the study will;

Ascertain the impact of recruitment & selection on the performance of the hospitality industry.

Ascertain the impact of training & development on the performance of the hospitality industry.

Ascertain the impact of performance appraisal on the performance of the hospitality industry.

Ascertain the impact of career development on the performance of the hospitality industry.

1.4 Research Questions

Evolving from the objectives of the study, the researcher attempt to find answer to the following questions:

Does recruitment & selection have a significant impact on the performance of the hospitality industry?

What is the impact of training & development on the performance of the hospitality industry?

Does performance appraisal contribute positively to the performance of the hospitality industry?

What is the impact of career development on the performance of the hospitality industry?

1.5 Research Hypothesis

Ho: There is no significant relationship between human capital management practices and organization performance of the hospitality industry.

Ha: There is a significant relationship between human capital management practices and organization performance of the hospitality industry.

1.6 Significance of the Study

At the end of the study, the study will specifically explain and tackle the impacts of human capital management in the hospitality industry, how human capital management can directly and indirectly affect organizational performance and take effect on hotel profit maximization. The study is expected to be of great use to managers, CEOs, directors, supervisors in providing a guide to them on how useful the human resource department is to the hotel industry.

1.7 Scope of the Study

The scope of this study dwells on the impact of human capital management on organizational performance in hospitality industry. The study will be delimited to some selected hotels in Awka, Anambra State.

1.8 Limitation of the Study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. However, the researcher were able to manage these just to ensure the success of this study.

Moreover, the case study method utilized in the study posed some challenges to the investigator including the possibility of biases and poor judgment of issues. However, the investigator relied on respect for the general principles of procedures, justice, fairness, objectivity in observation and recording, and weighing of evidence to overcome the challenges.

1.9 Definitions of Terms

Human Capital

Human capital is a gathering of assets, all the information, gifts, aptitudes, capacities, encounter, insight, preparing, judgment and astuteness had independently and all things considered by people in a populace.

Human Capital Management

Human capital management is an integrated effort to manage and develop human capabilities to achieve significantly high level of performance. Human capital management practices are set of practices that are focused on organizational needs to provide specific competencies. It is an approach to employee staffing that perceives people as assets (human capital) whose current value can be measured and whose future value can be enhanced through investment.

1.10 Organization of the Studies

The study is categorized into five chapters. The first chapter presents the background of the study, statement of the problem, objective of the study, research questions and hypothesis, the significance of the study, scope/limitations of the study, and definition of terms. The chapter two covers the review of literature with emphasis on conceptual framework, theoretical framework, and empirical review. Likewise, the chapter three which is the research methodology, specifically covers the research design, population of the study, sample size determination, sample size, and selection technique and procedure, research instrument and administration, method of data collection, method of data analysis, validity and reliability of the study, and ethical consideration. The second to last chapter being the chapter four presents the data presentation and analysis, while the last chapter(chapter five) contains the summary, conclusion and recommendation.

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