Factors that impede the tight integration between business strategy and Human Resource strategies in the hospitality
Factors that impede the tight integration between business strategy and Human Resource strategies in the hospitality industry. The integration of corporate and human resource strategy is one of the much-debated topics within the concept of strategic human resource management. Truss and Gratton (1994) describe strategic human resource management as "the linking of HRM (Human Resource Management) with strategic goals and objectives in order to improve business performance and develop organizational cultures that foster innovation and flexibility." Thus, Strategic HR means integrating the HR function of an organisation with the companys strategy through HR activities such as recruitment, selection, training and rewards and any other HR activities specific to the hospitality organisation. The necessity of this integration is demonstrated by Miles and Snow (1994) who suggest that, "without human resource strategies and policies linked into strategic business objectives, high levels of organisational performance are not likely." There are, however a number of problems that arise in the process of this integration both within the concepts demonstrated by Hoque (1999) as "internal fit" and "external fit."External fit being the HR strategy "meshed with the business strategy such that there should be a consistency between the values and aims within each. ... It is to be argued that one of the main barriers to the successful integration of business and human resource strategy is the lack of commitment and understanding of management (both corporate and line management) to the cause of HRM integration. ... Whilst, Tyson (1997) portrays the "attitude of line managers towards human resource activities" as one of the "key organisational features for successful HRM." Due to management at a “floor” level being at the source of HRM in terms of its implementation at an operational level, line managers can been viewed as a major barrier to impede the integration of corporate and HR strategies. It is therefore suggested that if the integration is to be achieved to its utmost potential, management on all levels must realise the effectiveness of HRM policies and procedures and how to sucessfully immplement them into the organisation. Taking all this information into account, the research undertaken by Hoque (1999) into Human Resource Management and Performance in the UK Hotel Industry, takes a different stance suggesting that for corporate management to impede the integration of strategies, it is done so indirectly through "taking a focus [within the business strategy] on cost reduction or on price factors [which] leads to sup-optimal performance within the industry. ... Schuler and Jackson (1987) reinforce this issue by arguing organisations that have a quality enhancement or innovation approach within its business strategy will make effective use of HRM. Thus leading to suggest that if the organisation has to priortise cost reduction within its strategy, the "logical approach" to deal with the issue would be to emphasise "numerical flexibility and cost control.