Many service providing companies, especially five-star and seven-star hotel chains have to face severe competition with foreign chain of hotels. The globalisation of companies and continuous advancement in technology have further changed the nature of workforce. Knowledgeable workers are known for their special characteristic and are the ones who evaluates information, synthesis and analyse various issues of the organisations. However, managing such workforce have become very difficult in hotel industries due to problem with global adaptation and diversified culture, lack of motivation and team spirit among staff. On the other hand, organisations HR management face troubles like recruitment policies, strategic prioritization, lack of quality service and most importantly, retention of knowledgeable workers ( Lub, Bijvank, Bal,, Blomme, & Schalk, 2012). In regards to all the issues observed, this research report will evaluate hospitality, culture and people elements in Shangri La chain of hotels and resorts company to find out issues in hospitality management sector. For the research, primary and secondary sources like company reports, credible sources from internet and scholarly articles will be used to apply theoretical concepts and gain knowledge through its practical application.
The Shagari La hotel brand got its name in 1971 with establishing the hotel in Singapore. Now, there are over 95 resorts and hotels spread across North America, Asa Pacific, Europe and The Middle East. The company’s headquarters is based in Hongkong and new venture of the hotel company are developing in countries like Saudi Arabia, Malaysia, Indonesia, and many more. The company’s overall capitalization value is around USD 5.1 billion and Shangri la is considered as one of the strong leaders in hospitality management and luxury hotels (Appendix B). Although Shangri La has vast expanse of business, the hospitality sector of the company faces many issues in employee retention due to lack of motivation and culture differences.
The most significant challenge faced by hotel chain industry is constant change in customer preferences and workplace setting. The task is challenging not only due to size and diversified locations of Shangri La hotels and resorts company, but also due to difference in culture and customs in various locations. Some hotels implement hotel chain standards best practices through franchise agreements. However, the relationship with employees and franchisees responsibilities still becomes doubtful. According to Ladkin (2011), the reason behind shortfall in labour in hotel industry proves challenging for both expansion and diversification strategy in tourism industry. Furthermore, the lack of employment data and definition of problems makes research more necessary to develop strategic recommendation for the improvement of people and culture element in hospitality industry.
From management perspectives, comprehensive texts explore employment and human resource issues within hospitality industry. Issues like job satisfaction, pay, organisational structure, working conditions, skills and service quality are typically focussed by business firms in services industry (Wang, 2015). However, it is to be noted that most of the organisations faces issues from the above-mentioned list in human resource context. Therefore, people and culture in hotel industry are the most researched term while recognising organisational structure of hotels and tourism companies.
The tourism and hospitality industry operate round the clock and due to extended work hours, seasonal fluctuations in work criteria and work intensive jobs, human resource management of Shangri La have to face unique challenges. According to Pearlman & Scaffer (2013), there will be severe changes in demographic shifts and work culture in upcoming years also as the baby boom period is about to retire. The workforce growth is also expected to decline while the labour supply will be more diversified. This force in labour challenges have made many international hotel companies think about future and restructuring of labour force in their employee management strategies.
Temporary service employee agency is taking over the hospitality sectors where large firms are getting depended upon. By appointing temporary employees, companies even save training and recruitment expenses along with future risk bearings of employees. However, this solution also does not seem very effective as they bring in quality and security issues in hotel operations ( Droulers & Heffernan ).
Contemporary hospitality and hotel industry environment experiences everchanging international and globalisation processes that impacts developments of the industry. Influence of technological and communicational advancement leads to exposure to different cultures in society. As more and more people travel, they form an integrated global marketplace that leads to culturally and socially different societies emergence. These causes creation of differences in social communication and workforce in across border management. Hospitality organisations work in a very complex multicultural environment where they need to comprehend culture and role of people along with impact of employees and tourist behaviours ( Khaing & Phongtaveewut, 2016).
Culture can be expressed through country traditions and beliefs where its purpose lies behind giving guidelines to people about behaving in socially accepted manner. People in hospitality sector belongs to those part of society who shares traditions and expectations (Korjala, 2012). Fundamentally, people and culture combine to provide organisations with employee’s abilities, traditions, effective communication, skills and workforce (Debrah, 2016). Since this research has identified a major issue in Shangri La’s people management, making further analysis will help in formulating recommendations through theoretical framework. Individual attitude is crucial to understand and to change diversified understanding in workplace, individual need to understand their work environment and organisational structure. On the other hand, employee recruitment and retention programs must be undertaken by management to eliminate shortage of labour and services issues in hotel industry as seen in Shangri La case.
Shangri La hotel is recognised for its quality service and enhanced hospitality management. The chain of hotel supports its mission declaration that states, “customers should be delighted each and every time” (Shangri-La International Hotel Management Ltd., 2018). The company focuses on offering its customers with, lively and blended culture experience with development of humility, respect, helpfulness and courtesy. These principles of Shangri La have made it expand its wings in several countries where customers identify the company as trustworthy and high-quality in services and hospitality sector. The constant pressure of competitors and rival companies competing in hotel industry have always created strong force on Shangri La. Along with it, threat of new entrants and competition with other substitutes in market have also made difficult for the company to keep up with the pace (Debrah, 2016).
Cultural struggles in Asian and Australian countries such as language barriers, societal beliefs, difference in business attitudes and pattern of behaviour shows implications in the role human resources for gaining quality service in tourism and hospitality industry. Other Asian countries where Shangri La operates in like China, Sri Lanka and Bhutan also have many cultural barriers due to which the success of the company becomes largely depended on labour force. Consequently, culture and human management have impacted the operations and businesses of hotel industry and since Shangri La rests on its fundamental values, it has to struggle with shortage of desired labour (Debrah, 2016).
In literature, it is found that company structure and hierarchy are responsible to some extent for the development of firm’s internal management and employee retention schemes. Shangri La hospitality management in Asian countries therefore differs that from Australian regions where the change is reflected through new cultural mix encompassing strengths and weaknesses in employee retention (Appendix A). Shangri La although have responded to these challenges while entering new market and has remained flexible, unless its core values are exploited.
Using Hofstede’s Framework, significant changes were observed in value system of Shangri La’s management in different countries (Bedi, 2016). While making analysis of Shangri La’s marketing and human resource strategies, the company staff reported that they were very proud of their management due to serenity and peace in the workplace. While there were others who expected much more from the company and showed discontentment. Although they were willing to serve the company, but showed uncomfortableness while dealing with different cultured guests. The ongoing discomfort among staff in Shangri La management shows that the company follows mechanistic and organic organisational structure where there is tight control over present activities while new undertakings are not taken much care of. The distance between employees and mangers affected the staff retention where the staff line strictly followed inverted service triangle. This made frontline staff never reach to top management and discuss their issues. On the other hand, the top management remains unaware of issues from employees’ point of view due to disengagement with frontline staffs ( Khaing & Phongtaveewut, 2016).
As stated above, due to insufficient labours, Shangri La has to hire people from foreign countries especially from those where cost per labour is minimum so that company’s overall costing does not get affected. This turns out to be adding another issue with maintenance and operational qualities due to poor quality of labour. For example, golf course, clubhouse, commercial laundry, property or swimming pools if not maintained by professionals, they get damaged. On the other hand, any bad review made in social media about these damages can further impact company’s reputation ( Martin Roll , 2017).
Although Shangri La is doing excellent in-service industry there are few issues that were observed while making close analysis of the company. All these issues are connected with labour shortfall that needs to be improved by the company. The insufficient manpower has affected the service quality of Shangri La while conducting its day to day operations. In Malaysian country branches, the lack of worker had made the company import workers from foreign nations. More people bring faster errands or even completion of tasks in lesser time whereas inadequate staffing can prevent businesses from giving desired quality of work. The lack of productivity due to inadequate staff had even reduced revenues of Shangri La which means to remain sustainable in business, it has to undertake severe measures (Appendix C). The increasing challenge in hotel industry and escalating demands of tourists for service creates urgency in offering high quality performance to survive (Debrah, 2016).
Insufficient manpower poses significant issue in productivity of Shangri La. To overcome this issue, the company needs to promote its line of requirement in front of general public while making job look more interesting and attractive. Shangri La can even make advertisements and put on hoardings about job vacancy. This will not only give initiative in recognising labour force but also add in company’s promotion. Besides, in job description, Shangri La can offer bonuses, incentives and health benefit programs that will attract more people (P, 2013).
Merely attracting people will not solve quality issue completely for which Shangri La can make arrangement for training and educating its staff through career development programs. Upgradation schemes will also enhance work performance and skills in hospitality line. Shangri La can even approach hospitality management colleges to hire fresh talent who possess advance knowledge as compared to immigrants who have little to no knowledge. Motivational classes for employees can improve standard and morale of internal staff who lacks motivation to work more. There are many motivational theories present in literature like Maslow’s hierarchy of needs, Frederick Herzberg’s Motivation-Hygiene Theory, Vroom’s Expectancy Theory, etc. that can be undertaken by the firm to motivate work force in its internal management (Lam & Ho, 2015).
In countries where professional of special field proves expensive to the firm, Shangri La can outsource its functions to other resources instead of hiring full time staff. Since hotel and tourism business is seasonal based, this recommendation can prove important without hampering service quality ( Brien, Thomas, & Hussei, 2015).
As stated in the analysis, Shangri La also faces issues within its internal management where labours follow strict guideline and are unable to reach top executives for discussing their issues. This issue can be sorted by enhancing employment relationship in the company with employee participation in management of the company. The communication gap between employer and employees shall be reduced so that retaining competent staff becomes easier for the company in this short skilled labour market ( Tseng & Chen, 2014).
Conclusion:
The above report describes about various information regarding importance of hospitality, culture and people in tourism and hotel management. The challenges faced and strategies adopted in hospitality sector has been identified while giving a suitable example of Shangri La. The employee management deficiency in the company has been evaluated while providing with recommendations that can assist managers of Shangri La in development of its employee work force for future development.
References:
Brien, A., Thomas, N., & Hussei, A. S. (2015). Turnover Intention and Commitment as Part of Organizational Social Capital in the Hotel Industry. Journal of Human Resources in Hospitality & Tourism, 357-381. Retrieved from https://sabilfeb.lecture.ub.ac.id/files/2014/07/Scopus-2.pdf
Droulers, M., & Heffernan , T. (n.d.). CULTURAL TRANSFORMATION AT SHANGRI-LA, SYDNEY. Retrieved from https://www.anzam.org/wp-content/uploads/pdf-manager/1824_HEFFERNANTROY_132.PDF
Khaing, I., & Phongtaveewut, T. (2016). A Study of Customers Satisfaction and Customer Loyalty of Sule Shangri-La, Yangon. International Journal of Thesis Projects and Dissertations (IJTPD), 04(02), 167-175.
Lub, X., Bijvank, M. N., Bal,, P. M., Blomme, R., & Schalk, R. (2012). Emerald Article: Different or alike?: Exploring the psychological contract and commitment of different generations of hospitality workers. International Journal of Contemporary Hospitality Management, 24(04), 553-573. Retrieved from https://matthijsbal.com/articles/Lub_etal_2012_IJCHM.pdf
Martin Roll . (2017). Shangri-La Hotels and Resorts – Bringing Asian Hospitality To The World. Retrieved from https://martinroll.com/resources/articles/asia/shangri-la-hotels-resorts-bringing-asian-hospitality-to-the-world/
Pearlman, D. M., & Schaffer, D. (2013). Labor Issues within the Hospitality and Tourism Industry: A Study of Louisiana’s Attempted Solutions. Journal of Human Resources inHospitality & Tourism, 12(03), 217-242. Retrieved from https://www.researchgate.net/publication/271568007_Labor_Issues_within_the_Hospitality_and_Tourism_Industry_A_Study_of_Louisiana’s_Attempted_Solutions
Tseng, C. Y., & Chen, C. L. (2014). Employability and Employment in the Hotel Industry: A Review of the Literature. Business and Economics Journal.
Bedi, A. S. (2016). Hofstede’s Model: Cultural Differences in Hospitality Sector and Experiences of a Migrant. Journal of Tourism & Hospitality, 01(05), 01-03.
Debrah, Y. A. (2016). Management of Operative Staff in a Labour-scarce Economy: The Views of Human Resource Managers in the Hotel Industry in Singapore. Asia Pacific Journal of Human Resources, 32(01), 41-60.
Korjala, V. (2012). Cultural Diversity in Hospitality Management. Retrieved from https://www.theseus.fi/bitstream/handle/10024/55331/Korjala_Veera.pdf
Ladkin, A. (2011). EXPLORING TOURISM LABOR. Annals of Tourism Research, 38(03), 1135-1155. Retrieved from https://eprints.bournemouth.ac.uk/18434/1/Ladkin.pdf
Lam, C., & Ho, B. K. (2015). How can Asian hotel companies remain internationally competitive? International Journal of Contemporary Hospitality Management, 27(05), 827-852.
P, U. (2013). HUMAN RESOURCES PRACTICES IN TOURISM AND HOSPITALITY INDUSTRIES IN SELECTED COUNTRIES. Asia Pacific Journal of Marketing & Management Review, 02(05), 01-16.
Shangri-La International Hotel Management Ltd. (2018). Shangri La-MISSION STATEMENT. Retrieved from https://www.shangri-la.com/corporate/about-us/corporate-social-responsibility/sustainability/mission-statement/
Turtle Trader. (2012). Shangri La Hotels-Solid Investment but no Rush. Retrieved from https://turtleinvestor888.blogspot.com/2012/01/
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