Are you being served? The how and the why of HR in practice in hospitality SMEs

Rationale SMEs make a significant contribution to the economy and employment but remain largely ignored by HR research. The uniqueness of HRM issues in the context of SMEs as recognised by Atkinson (2008) and others provides... [ view full abstract ]

Rationale

SMEs make a significant contribution to the economy and employment but remain largely ignored by HR research. The uniqueness of HRM issues in the context of SMEs as recognised by Atkinson (2008) and others provides a clear rationale for why the implementation of HR practices in an SME environment merits separate analysis. Attempts to explore SMEs as a homogeneous sector have been recognised as unhelpful and an over-simplification of the facts (Wilkinson 1999). Ram and Edwards (2003), Marlow (2006), Tsai et al., (2007) and Sheehan (2013) have all highlighted the importance of sector when considering HR practices in SME firms. Following from the work of Tsai (2010), this paper seeks to investigate HR practices within sector-specific SME firms. Recognising both the impact of sector and the heterogeneity of SMEs the unique context of the hospitality service environment provides the location for this study of HR practices in SMEs. In this service context it is recognised that HR interventions will take on added significance (Bowen 2016). although the likely nature and precise impact of HR practices remains uncertain. Previous work on HRM in SMEs demonstrates a broad consensus that informality typically dominates (Marlow et al., 2010) with Cassell et al., (2002) noting that the approach to HRM is “fairly piecemeal and reactive, rather than proactive, holistic or systemic” (2002:689). In contrast to this, Tsai’s (2010) findings challenge the view that HRM in SMEs is predominantly ad hoc and informal.

Methodology

In seeking to achieve a deeper understanding of the nature and key determinants of HR practices in existence a qualitative approach has been adopted. Using in-depth interviews with both employees and management as a primary source of data, it has been possible to achieve a richer perspective which goes some way to advancing the research agenda relating to the reality of HR practices in operation in an SME context. Holding both size and sector constant in this study allows for a fuller consideration of the impact of a range of both structural and internal elements on the reality of HR practices in operation, thus advancing our understanding of why HR practices operate as they do in an SME context. Furthering the basis for comparison data has been collected from a distinct range of independently-owned hotels of varying quality.

Findings

Data analysis is currently in progress. Headline findings to date include the impact of the market segment focus of the hotel (over and above generic quality ratings), the significant and imprinting role of various owner manager styles and ownership arrangements, and the use of technology and customer ranking as a means of socialisation and/or as basis of control. These findings lay the foundation for a greater understanding of the nature and determinants of HR practice and the potential outcomes for both employers and employees.