CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Human resource management (HRM) is one of the key functions of any organisation. It covers the recruitment of qualified employees with the competencies the organisation needs, their training and development, and the retention of those employees over time. Done well, it strengthens corporate image, reduces labour turnover and raises productivity. Adagbabiri and Okolie (2020) describe HRM as the formal system through which organisations manage their people, and note that organisations now compete increasingly through their people. Their study of Nigeria's oil and gas industry found that HRM practices have a positive and statistically significant impact on organisational performance.

The purpose of HRM is to prepare employees to work to the best of their ability in the present environment and to equip them for future challenges. Training and development programmes help employees keep pace with new technology and working methods. For this to benefit the organisation, learning must translate into changed behaviour and better performance on the job. Organisations therefore need to build the skills and capabilities of their employees by encouraging individual development and creating an environment in which knowledge is generated, shared and applied.

These concerns are especially pressing in the hospitality industry, where service quality depends directly on the people who deliver it. Edeh and Dialoke (2020) examined the effect of human resource planning on the organisational performance of selected hotels in Ebonyi State, Nigeria, and drew attention to the need to consider the competence and cultural orientation of prospective employees when planning staffing.

Retention is a related concern. Ohunakin et al. (2020) surveyed 312 frontline employees in five-star hotels in Nigeria and found that retention strategies, namely training and development and job security, play a significant role in employees' job performance and commitment. Adeyefa et al. (2023) similarly found that most of the green HRM practices they tested had a significant positive influence on employee retention in Nigerian hotels. Matazu (2017) found that employee selection and training and development influence how well the hospitality industry in North-West Nigeria retains graduate employees, and that employed graduates showed low levels of the motivation needed to stay.

HRM also bears on how an organisation is perceived. Michael et al. (2022) found that the HR practices of four- and five-star hotels in Dubai, which are aimed at motivating, engaging and retaining employees, fall within employer branding and internal branding and are directed at enhancing hotel and destination brand image. Zografou and Galanaki (2024), studying small and medium-sized hotels, highlighted the need for practitioners to invest in HRM practices, especially training and rewards, while paying due attention to employer branding. Taken together, this evidence suggests that any hospitality organisation that wishes to get the best from its employees should operate sound HRM programmes, which in turn improve the effectiveness and efficiency of the work assigned.

1.2 Statement of the Problem

Ineffective HRM can lead to a range of problems: employees become less able to develop and apply new skills, staff productivity declines, labour turnover rises and organisational performance suffers. Such problems arise when HRM programmes fail to address the needs of the organisation and its staff. Properly implemented, HRM activities can raise performance and reduce losses, strikes, service disruption and employee turnover. HRM is therefore a vital tool for improving job-related performance and organisational effectiveness.

The situation at Sheraton Hotel, Abuja, Nigeria illustrates the problem. The formal education system does not adequately teach the specific skills required for a position in a particular organisation, so non-technical employees often lack the skills, knowledge, abilities and competencies needed for their jobs. HRM activities are needed to improve their performance so that they can contribute meaningfully to the organisation's growth. Yet these employees have been largely overlooked. Staff who wished to pursue university degrees were refused paid study leave, or had their applications turned down, and those who persisted were advised to resign. Employees who enrolled in part-time programmes were disengaged after graduating because management considered their new qualifications irrelevant to the job. The few who were retained were not promoted despite their added skills and competencies.

Existing studies have tended to treat HRM in general terms, which leaves a gap in understanding the specific effects of HRM on competencies, recruitment, retention and corporate image in the hospitality industry. This study seeks to address that gap by determining the effect of HRM on organisational performance in the Nigerian hospitality industry.

1.3 Objectives of the Study

1.3.1 General Objective

The general objective of the study is to establish the effect of HRM on organisational performance in the Nigerian hospitality industry.

1.3.2 Specific Objectives

The specific objectives are to:

1. determine the effect of HRM on competencies in the hospitality industry;
2. examine the effect of HRM on recruitment in the hospitality industry;
3. investigate the effect of HRM on employee retention in the hospitality industry; and
4. examine the effect of HRM on corporate image in the hospitality industry.

1.4 Research Questions

The study is guided by the following research questions:

1. How does HRM affect competencies in the hospitality industry?
2. In what ways does HRM affect corporate image in the hospitality industry?
3. What is the effect of HRM on recruitment in the hospitality industry?
4. How does HRM affect employee retention in the hospitality industry?

1.5 Significance of the Study

The management of Sheraton Hotel, Abuja, Nigeria will find the study useful because it draws attention to existing problems, and the employees who are its focus will benefit if its recommendations are implemented. For students and researchers, the findings offer information and a source of reference for future research.

1.6 Scope of the Study

The study was conducted at Sheraton Hotel in Abuja, Nigeria. Data were collected from employees in the accounts, finance and procurement departments. Fifty respondents were selected from a target population of 300, and the research was carried out between May and June 2019.

References

Adagbabiri, M. M., & Okolie, U. C. (2020). Human resource management practices and organizational performance: An empirical study of oil and gas industry in Nigeria. RUDN Journal of Public Administration, 7(1), 53–69.

Adeyefa, A. E., Adedipe, A., Adebayo, I. N., & Adesuyan, A. J. (2023). Influence of green human resource management practices on employee retention in the hotel industry. African Journal of Hospitality, Tourism and Leisure, 12(1), 114–130. https://doi.org/10.46222/ajhtl.19770720.357

Edeh, F. O., & Dialoke, I. (2020). Effect of human resource planning on organizational performance of the hospitality sector in Nigeria. Business Perspective Review, 2(1).

Matazu, M. A. (2017). Factors influencing employee retention in the hospitality industry in North-West region of Nigeria [Doctoral dissertation, Kenyatta University]. Kenyatta University Institutional Repository.

Michael, N., Michael, I., & Fotiadis, A. K. (2022). The role of human resources practices and branding in the hotel industry in Dubai. Journal of Human Resources in Hospitality & Tourism. Advance online publication.

Ohunakin, F., Adeniji, A. A., Ogunlusi, G., Igbadumhe, F., Salau, O. P., & Sodeinde, A. G. (2020). Talent retention strategies and employees' behavioural outcomes: Empirical evidence from hospitality industry. Business: Theory and Practice, 21(1), 192–199.

Zografou, I., & Galanaki, E. (2024). To “talk the walk” or to “walk the talk”? Employer branding and HRM synergies in small and medium-sized hotels. EuroMed Journal of Business, 20(5). https://doi.org/10.1108/EMJB-09-2023-0259