The Development of Quality Managers in the Hospitality Industry:

Do Employee Development Programs Make Cents?

Wanda M. Costen, Misty M. Johanson & Donetta K. Poisson (2010)

Journal oh Human Resources in Hospitality & Tourism, 9:2, 131-141

Wiwien Meinur Edwinsari Batch 6NIM: 1263620059

Human Resources Management in

Hospitality & Tourism

Prof. Syamsir Abduh

GRADE /

SCORE :

87

Content

Introduction

Understanding the Facets of Employee Development

Recognizing the Value in Development and the Perceived Investment

Employee Development Strategies that Work

Conclusion

INTRODUCTION

This reports is designed:

✪ to provide industry with information about the many facets of employee development relevant today

✪ to reveal the value and perceived investment placed on employee development programs and activities

✪ to discuss the successful strategies hospitality organizations use to develop employees into quality managers

INTRODUCTION

One of the most critical assets of any hospitality operation is Employee, they determine the quality of customer service delivered, which in turn has an impact on the organization’s profitability (Baydoun, Rose & Emperado, 2001)

The quality of the front line managers impacts the success of organization’s service delivery, customer and employee satisfaction and ultimately, the overall profitability of the entire organization.

Estimated turnover rates statistic between 2005 and 2007: - In the foodservice industry at 114% (Papaleo, 2007) - Over 65% in the lodging industry (Meyers, 2005)

Management turnover in the foodservice industry was positively related to hourly employee turnover, indicating that as managers leave a company, so do frontline employee (Kacmar, Andrews, Van Rooy, Steilberg and Cerrone, 2006)

INTRODUCTION

UNDERSTANDING THE FACETS OF EMPLOYEE DEVELOPMENT

(Tansky & Cohen, 2001)

Employee development is the long term personal and professional growth of individuals in an organization

(Maurer, Pierce & Shore, 2002): The organization is responsible for providing

opportunities for development The supervisor is responsible for assessing the

employee’s development needs and progress The employee is responsible for fully committing to

participate in the development activities and achieving the desired outcomes

UNDERSTANDING THE FACETS OF EMPLOYEE DEVELOPMENT

Tansky & Cohen, 2001

Employee development programs

are intended to provide employees with new skills, knowledge or abilities in order to prepare them for positions with increased duties, responsibilities, power and authority

Maurer et al, 2002

Employee development of new skills

is essential in order for learning tasks to be classified as employee development which can also include applying old knowledge and skills in new ways

Maurer et al, 2002; Tanksy & Cohen, 2001

Employee development activities

are focused on new learning opportunities and result in true employee growth by helping the employee develop the confidence and ability to engage in more complex and challenging job tasks

Hayes & Ninemeier, 2009

employee development process

involves identifying developmental goals, determining how to best accomplish those goals and evaluating the results

UNDERSTANDING THE FACETS OF EMPLOYEE DEVELOPMENT

In many companies, employee development programs are part of the career management process, where key executives engage in employee succession planning for future openings in key management positions (Noe, 1998)

By tracking employee developmental activities, managers are better able to access an internal candidate’s readiness for a position (Tansky & Cohen, 2001; Birdie et al, 1997)

RECOGNIZING THE VALUE IN DEVELOPMENT AND THE PERCEIVED

INVESTMENT

Employee development is one of the most noteworthy practices of human resource development (Lee and Bruvold, 2003)

Employee development can help organizations reduce turnover and related expenses through the increased morale that typically occurs when employees are given opportunity to growth (Lee & Bruvold, 2003)

Labor and other costs associated with absenteeism and turnover are sometimes difficult to quantify, they are real and significant (Hayes & Ninemeier, 2009)

The mentoring, counseling and encouragement provided by upper level management during development can significantly influence an employee’s plans, aspirations and the energy levels required for advancement within the organization (Tansky & Cohen, 2001)

RECOGNIZING THE VALUE IN DEVELOPMENT AND THE PERCEIVED

INVESTMENT

From the employees’ perspective, this investment indicates how much organization supports its employees (Wayne, Shore & Liden, 1997)

Research suggests that when employees perceives that their employer is committed to and supportive of them, they have a greater degree of trust and commitment towards the organization (Whitener, 2001)

Perceived investment in employee development (PIED) is cultivated through the employees’ assessment of the company’s commitment to help them learn new skills and competencies that will allow the employees to move to new positions, whether inside or outside the company (Lee & Bruvold, 2003)

RECOGNIZING THE VALUE IN DEVELOPMENT AND THE PERCEIVED

INVESTMENT

The improved employee behaviors and attitudes brought on by PIED have been found to positively impact organizational commitment and contribute to job satisfaction and job longevity (Lee & Bruvold, 2003)

Satisfied employees render a higher quality of service to the guest. Additionally the organization’s level of commitment to employee satisfaction also reflects the firm’s commitment to continuous improvement and development, which could increase organization profitability (Kim, Leong and Lee, 2005)

EMPLOYEE DEVELOPMENT STRATEGIES THAT WORK

By implementing new development programs, organizations are benefiting from engaged and emotionally-connected work teams comprised of dedicated workers, who are advocates for their company (Barsky & McDougal, 2007)

EMPLOYEE DEVELOPMENT STRATEGIES THAT WORK

Example 1:

Bob Chinn’s Crab House in Wheeling, Ill implemented a new development program that influenced its turnover rate.

Its cultural diversity creating challenge in delivering the high level of customer service.

Chinn’s implemented an in-house English as a second language program for the restaurant’s employees who half of them were immigrant from Mexico and Central America. This program was funded by Chicago BizLink, the member of the nationwide Welfare to Work Partnership.

Chinn’s Human Resources manager commented that the program instilled a lot of pride in the employees while simultaneously increasing morale and teamwork which also caused the restaurant’s employees turnover rate dropped to 38%.

EMPLOYEE DEVELOPMENT STRATEGIES THAT WORK

Example 2:

Brinker International subsidiary, the Corner Bakery Café, recently were rewarded for their strong focus on employee development and promotion from within strategy.

The organization allows its employees to build their own careers within the company, and encourages employees to take advantage of targeted growth plans, which guide workers up the corporate ladder (Barrier, 2005)

Example 2:

QHotel is a lodging organization that has demonstrated how much they value their employees through a new HR program aimed at improving employee development and satisfaction level (Brewer & Platt, 2005) 

There is evidence to suggest that employees value the development opportunities provided by their employers.

CONCLUSIONIn order to be successful in today’s challenging economic environment, hospitality organizations must demonstrate a commitment to helping their employees learn and develop new skills. This is essential if organizations hope to increase retention and create career growth by promoting from within (Lee & Bruvold, 2003)

A firm’s investment in employee development affects an employee’s commitment to the organization, which may benefit both the company and the employee (Ichnowski, Shaw & Prennushi, 1997)

Therefore, the development programs that the organization invested in the employees is really worth a lot for both parties. With no doubt, the employee will be loyal to the organization because they get the benefit from the development program that the organization invested on them.