Challenges faced by HR in Indian Hospitality Industry

This project talks about the challenges faced in Human Resource Management in the Indian Hospitality Industry. It talks about how to identify and rectify the problems which are faced by the Human Resource Department.

It also talks about the different problems which are faced in HRM.

Chapter 1


“I never teach my pupils; I only attempt to provide the conditions in which they can learn.”

Albert Einstein

Introduction to Human Resource Management:

Human Resource Management is an organizational function which helps in providing proper direction to the people working in an organization. It also helps in managing and recruiting man power.

It is a function which deals with issues related to training, administrating, employee motivation, benefits communication, wellness safety organizations development, performance management, hiring and compensation. Human Resource Management is a function that involves a lot of activities. But the main challenge arises during staffing.

You have to decide as in to use independent contractors or employees to fill the organizational needs. Recruiting and training the right employees, making sure they are high performers, dealing with their performance factors, and ensuring your personnel and management practices conform to various regulations. (Nikolis, 2009)

Importance of HRM in Organizations:

Each and every employee has to contribute individually and also cooperatively to the success of the organization. At the low level they have to contribute towards a goal. To make them contribute the human resource management team has to make them work harder. It is found that the contribution of an employee is low when they do not know what they are doing.

Lack of information on a particular process or technology; leads to low productivity in the organization. The human resource department should spot out such employees and train them in the necessary skills. They should also know how to deal with individuals and groups psychologically in the organization.

The HR management team should pull in the right talent to their organization, give apt compensation, retain them and also train them to meet current and future organizational goals. The HR management team is devoted to this work round the clock. Without them it is not possible to have the right team to execute the projects. They need to keep record of the skill required by the employees during their term in the organization and deploy them for the right projects.

The employees need to be properly trained and motivated by the human resource management team. The ethical policies should be communicated to them at the right time and the problems in an organization should be revealed to them to get a solution apt for it to be solved. Thus they make the employees work more efficiently to meet the organization’s goal. (Importance of human resource management in any organization, 2011)

Chapter 2

Challenges faced by HR in the Hospitality Industry:

The main challenges faced by the Human Resource in the Hospitality Industry are:

Managing Knowledge Workers

Managing Technological Challenges

Competence of HR Managers

Managing Change

Developing Leadership

Managing Knowledge Workers:

The globalization of work and continuing advances in technology are changing the nature of the workforce. Information specialists called knowledge workers are equipped to maintain and expand the technological leadership role in the next century are replacing the manual labour also known as the blue-collar workers. Knowledge workers are known for their special characteristics. They are people who can analyse, synthesize and evaluate information to solve various problems. Knowledge workers basically use their intellect to transform ideas, products services and processes. Their main value to an organization is their ability to gather and analyse information and make decisions that will benefit the company. Managing these set of employees plays a very important role in the growth of the organization. Because of their own hand experience they fail to obey the management principles. A knowledge worker’s personality is typically an achievement oriented one. These people focus on achieving their individual goals and not in the growth of the organization. For example when a new employee joins to an organization and he has less experience he doesn’t follow the management principles. These types of workers are called knowledge workers.

(Jyothi, 2010), (Bohlander G. a., 2009)

Managing Technological Changes:

Technology has had a positive effect on internal operations for an organization but also has changed the way human resource managers’ work. Some managers in the hospitality industry view the application of technology to operational issues as a problem. It is true because the technological systems used in the bar, front office, restaurants etc. are far more advanced and complicated today than those available only a short time ago, and these systems continue to advance rapidly. They take a lot of time to adjust to these new technologies. Preparing workforce to approve new technologies is very tough. Getting the approval of IT and other technologies by all levels in a company is a huge challenge face by hospitality organizations. For example when the systems are updated and new technology has been introduced the worker finds it difficult to adapt to it. He does not show a positive attitude towards it.

(Bohlander G. a., 2009), (Hayes, 2009)

Competence of HR Managers:

The human capital in an organization plays a very important role in the successes of the organization. Human capital is an asset to the organization in recruiting the best people, managing them efficiently, inspiring them and retaining them. People who have strong data about the business and who understands the human resource management principles should be developed which is necessary for the organization. One of the most important roles is competence of human resource managers. Choosing the right people for the right job is the greatest challenge for a human resource manager. For example when recruiting new employees it’s important that the right person is adopted. (Bohlander G. a., 2009), (Nikolis, 2009)

Managing Change:

The business environment is highly unpredictable and introduction of change is essential for any organization in order to make progress. Globalization and Technology are the two major factors that have driven change in organizations today. Globalization has opened new doors for business opportunities. However it has also lead to many interventions such as reformation, turnaround, merges, downsizing, etc. In order to achieve success, the organizations have to manage these changes that have occurred along with the staff issues that arise. Thus managing change is vital in order for the organization to function smoothly.

For example when a new software is installed which is used to do company counts are installed the knowledge workers refuse to work on it. (Bohlander G. a., 2009)

Developing Leadership:

Business environment is changing at a faster rate than ever before. In this environment, organizations need to be self driven by effective leaders. They have to be dedicated, devoted, self driven inspire an image among the followers, be able to inspire and motivate junior colleagues to get the work done. They must be able to set strategic direction and keep the organization moving towards excellence. Organizations need leaders to understand the business scenario, plan actions and implement then to derive business goals. Everyone has some leadership potential that can be released for the benefit of society or business in an organization. For example when there is no unity amongst workers a leader is required to guide them. (Haldar, 2009)

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Challenges faced by HR in the Indian hotel industry:

The main challenges faced by the hotel industry in India are:

Challenges in recruitment:

The major challenges which are faced by the HR department in recruitment are:

Adaptability to globalization – The HR professionals are anticipated and required to keep accustomed with the changing times, i.e. the changing taking place across the globe. HR should maintain the appropriateness of the process. For example when a different kind of format is followed around the globe the organization should also adapt to the same. Many organizations in India fail to do this.

Lack of motivation – Recruitment is considered to be an unacknowledged job. Even if the organization is achieving results, the HR department are not thanked for recruiting the right employees and performers.

When an interview or a recruitment process is successfully completed by the HR department there is no one to congratulate them or motivate them. Proper motivation is required to ensure proper work in future.

Process Analysis – The closeness and the speed of the recruitment are the main concerns for the HR department in recruitment. The process should be flexible, adaptive and responsive to the instant requirements. The recruiting should also be cost effective.

If recruitment is to be taken place then a proper process should be set by the organization and what has to be followed, such as written tests, personal interviews and group discussions.

Strategic Prioritization – The up – coming new systems are both an opportunity as well as a challenge for the HR professionals. Therefore, reviewing staffing needs and prioritizing the responsibilities to meet the changes in the market has become a challenge for the recruitment professionals.

(Anonymous, 2011)

Workplace diversity

The future accomplishments of any organizations rely on the ability to manage a diverse body of talent that can bring original ideas, perspectives and views to their work. The challenge and problems faced of workplace diversity can be turned into a tactical organizational asset if an organization is able to take advantage of on this melting pot of various talents. With the mixture of talents of different cultural backgrounds, genders, ages and lifestyles, an organization can respond to business opportunities more swiftly and resourcefully, especially in the global arena which must be one of the essential organizational goals to be attained. More importantly, if the organizational situation does not support diversity broadly, one risks losing talent to their competitors.

One of the main reasons for ineffective workplace diversity management is the predisposition to class employees, placing them in a different silo based on their diversity profile. In the real world, diversity cannot be simply categorized and those organizations that act in response to human complication by leveraging the talents of a broad workforce will be the most successful in growing their businesses and their consumer base.

(Anonymous, Human Resources/challenges of cultural diversity in HRM, 2011)

Shortage of Skilled Employees:

One of the most essential requirements of the hotel industry is to have skilled labour force which can help in achieving the various goals and objectives set by the organization. For the functioning of any hotel, quality workforce having various skills is required. Shortage of skilled workforce affects the industry, and it is not surprising that one of the greatest challenges faced by the HR in the hospitality industry is the unavailability of skilled workforce in the different skill levels. Also retaining this workforce is necessary.

When a hotel starts nearby offering higher salary the quality workforce shifts towards that hotel. The HR has to retain these employees. (Karan, Challenges faced by HR in the hotel industry, 2009)

Lack of Quality Service:

Due to the shortage of employees in the industry and the overflowing of customers the quality of the service I affected. When the work load increases the performance of the employees goes down. Due to too much work pressure, the job performance of the employee falls and in turn it affects the quality of service. Thus the HR department has to take the blame for the damage caused to the hotel brand name. When a hotel is overbooked and there is lot of guests in the hotel the quality of service reduces which affects the hotel’s brand name. (Karan, Challenges faced by HR in the hotel industry, 2009)

Retention of Employees:

Many a times, employees work in hotels on short-term basis as it is not their ending professional goal to work in the hospitality sector. Hence after a certain time, these employees leave their jobs. On the other hand, certain employees have to be let go due to their low-grade job performance or other job related issues. Thus retention of employees is a major problem faced by HR in hotels.

When an employee gets into a hotel to work because he dint get any other job his main goals are based on his private life and will not like to stay in the hotel industry for a long time. (Karan, Challenges faced by HR in the hotel industry, 2009)

Chapter 3

3.1 Critiques on Challenges:

It is utmost important to overcome the various challenges that are faced by the organization to achieve success. Company’s now a days are developing the function of human resource because the importance of HRM have been felt in the very strong market competition that exists today. In today’s time competition has increased on the local as well as global scale. In order to attain success companies have become stronger, more elastic and customer oriented. In order Hr also has to adjust according to these shifting trends in the market. Thus the HR must be able to comprehend the overall picture of the business of the company and put all the policies and decisions into practice.

Preserving strategic personnel and promoting employee talent are the basics setbacks that HR has to face today. In order to rise above these obstacles, the HR personnel are required to plan progressions of the business and provide supervision to the staff members in order to stimulate them to perform better and earn their loyalty for the company. Their help is also required in order to uphold and put into practice values and beliefs within the diverse work environment that exists in every organization.

Strategies to overcome challenges faced by HR in Hospitality:

Managing Knowledge Worker:

Workers who are sensitive to change in an organization are called knowledge workers. They keep changing according to the changes happening in the surroundings and organization and responds to them by collecting information and they arranging their work according to the information gathered. All knowledge workers have very important roles in the organization. If they don’t respond to the lively environment the organization might face difficulties. Many a time’s managers do not manage these types of people because they feel if they have so much knowledge they must know how to do their job.


Knowledge workers can be managed in the following ways-

Job Design-

The jobs should be designed in a way that is depicts the behavioral element of the workers instead of the organization. The jobs should be based on factors such as feedback, job significance, identifying tasks and skills. These elements should be taken into thought while preparing the job design in order to create dynamic and satisfying jobs for the workers.

Increased independence and authority-

While performing a work knowledge workers have the liberty and judgment to choose the method of performing the job. The workers are provided with the desired outcomes in advance and the decisions which have to be completed in order to attain results are left upon the workers. This gives them more liberty to work upon the ‘how to achieve’ the outcomes. When a certain level of autonomy is provided it gives them liberty to work. But if total autonomy is provided it results to a lot of liberty and leads to chaos.

Loyalty towards organization-

The role of a good human resource manager is to develop a sense of faithfulness towards the organization among the workers. When the faithfulness of the workers as well as sense of belongingness towards the organization increases, their dedication towards the job also increases. So the performance standards of the employee increase. The best way to develop faithfulness among workers is by trusting them to the maximum which helps to boost their confidence and helps them perform better.

Extensive training and development

Training and development is one of the things that can differentiate a smoothly functioning organization and an unorganized one. The efficiency of knowledge workers has always been low. The only way by which efficiency can be increased is by capitalizing on their strengths and knowledge instead of forcing them to do some work. A superior training session or a workshop for knowledge workers should consist of of classroom learning and workstation classes.


Knowledge workers can only perform well if they are motivated. When challenging tasks are assigned to these employees they get motivated. These employees should be occupied in decision making and planning which creates a sense of belongingness. Motivation is the key way to accomplishment.

Communication channels-

Communication is very much connected with teamwork in case of knowledge work. There should be no communication barriers within co-workers. Knowledge work requires communication as association with the co-workers. The tasks are multifaceted and require knowledge for completion which often makes it unfeasible for a single person to understand or be able to achieve everything single handed. These tasks can only be completed through teamwork. Thus the organizations should be able to develop methodical processes in order to make and manage this knowledge. If the organizations are able to split the knowledge held by the employees, then they can gain intellectual assets as well as contend effectively in the marketplace.

Monitoring and evaluation-

The work carried out by knowledge workers is mostly resourceful. They do not follow a specific technique or does not function according to a fixed standard. Because of these reasons, knowledge workers don’t like being continuously observed. Due to the lack of a standard it becomes hard for measuring job performance through monitoring. The work performed by these types of workers is not result oriented. Hence it is essential to make use of special systems in order to confirm that the staffs are positively contributing to the organization.

Work life balance-

The work being performed the knowledge worker is very challenging in character and it requires a lot of time for completion of the tasks. The knowledge workers always tend to give up their friends and family for completion of their work. This causes a lot of interruption in his work life balance. So a knowledge work should maintain a proper balance between his work life and family life in order to deal with time efficiently.

(Husain, 2010)

Managing Change:

The employees working in an organization knows that the work done today is completely different from work done 5 years ago. Responsibilities and job assignments all keeps changing. But employees resist accepting this transformation because it will change their functioning patterns and change their type of working. There are 2 types of changes, reactive change which results from the outcome of peripheral forces on the organizations performance; proactive change which is initiated by the manager in order to take gain of the targeted opportunities.

Managing change in an organization is only possible by the HR by following these steps

1) Creating urgency for the situation.

2) Creating a strong collation in order to guide the efforts.

3) Communicating towards the staff regarding leader’s goals.

4) Link change to business strategy.

5) Motivation of employees.

6) Creating and planning for short term returns as well as quantifiable benefits.

7) Invest to implement and sustain change.

(Bohlander G. a., Managing Human Resources, 2009)

Managing Technology:

In many organizations hiring process use a software package to sustain human resource. Sales, training and performance assessment of HR activities can be tracked by machine. Many companies, information about health care benefits, human resources development and stipulation of proposed changes also have an internet site easy to begin to communicate easily with employees. All these changes have been made with the arrival of technology is advantageous to the organization.

However, in a particular way of older employees in the organization, has been used to bring in new technology to work to bring about a complete change in their flapping their work. Therefore, they are unwilling to agree to this change. So in order, you will need to provide training programs to become accustomed to changes in technology which have brought within the organization. Also, due to computerization and use of machines in a labor intensive country like India, many people are left unemployed. Hence it is necessary to plan before installing any machinery.

(Bohlander G. a., Managing Human Resources, 2009)

Developing Leadership:

The main purpose of leadership development is to shift of potential leaders of the organization. A good leader has the right attitude towards his work and his men.

The gap between the workers and organization to improve the work of subordinate organization and channel the efforts of his subordinates to improve efficiency by using fewer resources from the gateway, which is beneficial to the organization. Correctly identified that people who have such qualities, the others must be motivated to take responsibilities in the organization.

(Bohlander G. a., Managing Human Resources, 2009)

Competence of HR Managers:

Human Resources Manager, the role of host organizations, as well as changes in the competitive market must evolve to meet the changing needs of the organization. HR professionals not only focus on employee retention and human resource development, and led by a lawyer, connect to motivate employees in your organization for continuity planners is to be able to teach. Administrators plan to organize and carry out effective monitoring of human resources will be able to have enough knowledge on new trends in employee training and development.

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(Bohlander G. a., Managing Human Resources, 2009)

Strategies to overcome challenges faced by HR in hotels:


Prioritizing and identifying jobs

Necessity for job arises at all levels in the organization regularly. It is not possible to meet these requirements right away. Therefore an alternative has to be identified to go with the requirement

Recruiting candidates according to the target

The recruitment process can only be doing well if only the organization understands its requirements. The candidates should be selected according to the requirements of the organization. Different strategies are required for focusing on hiring high performers and average performers. The strategy has to be clear about the amount of experience they require. It can range from an experienced senior professional to a new fresher. It should also describe as in from which industry they require the employee. That is from the same industry, different industry, employed or unemployed professionals.

Sources of recruitment

The strategies should also include the source of recruitment. That is internal or external. An individual from the organization can be promoted or transferred to meet the required who in internal or an individual from outside can be selected which is internal.

Trained recruiters

The recruiters who conduct and organize the recruitment process should be well qualified and experienced. The recruiters should be well trained and should be aware about the various parameters.

How to evaluate the candidates-

The recruitment process should be planned in advance. The various parameters in which the candidate has to be judged should be pre planned.

(Anonymous, Recruitment Strategies)

Workplace Diversity:

Individual strategies-

Organization consists of various things an individual can do. Therefore understanding the individuals is the starting point and it is very important. Although it is necessary to treat each staff member equally, it is important that the manager understands that each individual is different from the other. Hence it is necessary to keep in mind all the fundamental human differences in order to treat everyone equally. Each staff member should make an initiative to understand the thinking of others. It is basic human nature to disagree to another person’s behavior even if they make an effort to understand the person. Hence tolerance and communication are crucial. For example when a young person in the organization makes fun of an elder person in the organization without meaning any harm the elder person might consider it offensive which may lead to a conflict in the organization. (Bohlander, 2009)

Organizational strategies-

It ensures that company policy has been adopted with a direct or indirect effect on staff. In addition, these policies deal with the hotel, how to accommodate a variety of problems arising from differences among people influencing the diversity of the organization. For example, consider a manager’s sexual harassment complaint. The hotel’s policy is, if the burden proved too much harassment and individually, the administrator reported that only a clear signal about the importance of such matters raises a minor sanction. However, the hotel is not just diversity, balanced set of policies to deal with issues such as sexual harassment is sending a message to employees the importance of individual rights and privileges .The hotel must have an attitude of flexibility in the nature of different practices and continuous process. (Bohlander G. a., Managing Human Resources, 2009)

Shortage of skilled workers:

The only way to overcome this challenge is to inspire and motivate the skilled employees in order to keep hold of them. At times, the skilled employees find it hard to adjust to the existing staff. As a result conflicts arise and these workers have to be let go. This problem has to be dealt with extreme care. Only these employees should be recruited who are suitable for the job and who can easily adapt to the existing work environment. (Karan, Challenges faced by HR in the hotel industry, 2009)

Lack of quality service:

The main aim of the hotel industry is to offer guests with quality service. For example a guest would be willing to go to a hotel which has good interiors as well as good level of service. On the other hand the guest would be dissatisfied if only the hotel interiors were good and the staff would be deficient in extending good quality of service. Thus quality is of utmost in the hotel industry. In order that the guests are served well, the HR has to ensure that the staff serving the guests is not discontented. Thus the HR has to follow both, the guest as well as employee in order to maintain healthy environment for management. (Karan, Challenges faced by HR in the hotel industry, 2009)


The human resource managers has to think of new ways to catch the attention of the staff members to keep their jobs and keep them fascinated in their jobs in order to retain them for longer period of time. Managers can provide staff members with training programs and also by providing the employees with a clear sequence plan in order to create attentiveness amongst them for their advancement to higher levels of service which may cause them to stick around for longer period of time. (Karan, Challenges faced by HR in the hotel industry, 2009)

Recommendations and Suggestions:

The main task of human resource management is to deal with bloodthirsty market environment and human resource management and it should play a tactical role in the success of the organization. Organization which fails in bringing in new talent into the organization may result in dire consequences because their competitors may outplay them in the tactical employment of human resource. The main focus on present day human resource managers is strategic personnel retention and talents development.

If an organization has to be managed properly by a HR manager he should do away with the thinking that his way is the best way and instead include a variety of ways. The famous quotation “Think globally, act locally” should be followed. Especially in a country like India where there are a lot of cultural diversities the manager should act very wisely. Mangers should learn to respect their cultures.

Chapter 4


This essay describes about a variety of information regarding importance of human resources management. The challenges that are faced and strategies adopted to overcome these strategies have been analysed and described in the project with appropriate examples. All these challenges have to be overcome by some strategies which will help in strengthening the HR department and the organization. HR managers along with all the HR professionals have to manage these challenges efficiently.

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