Abstract

The relationship between specific ‘bundles’ of human resource management (HRM) policies and practices and organizational performance in the hospitality industry is not well understood. This essay will discuss that there have been a significant number of studies over the last decade investigating the links between HRM and organizational performance. These have focused on the extent to which – if at all – high commitment or best practice HRM may lead to improvements in worker or organizational performance. Basically, the idea is that a particular bundle of HR practices has the potential to contribute improved employee attitudes and behaviors, lower levels of absenteeism and labor turnover, and higher levels of productivity, quality and customer service. This, it is argued, has the ultimate effect of generating higher levels of profitability. Since the HR practices that supposedly contribute to an improved bottom line performance are generally perceived as ‘good’ for workers.

Keywords : HRM Bundles, Customer Satisfaction, Organizational Performance