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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

GRADE / SCORE

87

Wiwien Meinur Edwinsari Batch 6 NIM: 1263620059

Human Resources Management in Hospitality & Tourism Prof. Syamsir Abduh

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 organizations profitability (Baydoun, Rose & Emperado, 2001) The quality of the front line managers impacts the success of organizations 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
Barsky & McDougal, 2007 Enz and Siguaw, 2000
Top hospitality companies are more focusing on recruitment and retention efforts on promotion from within

Found that high-performing hospitality companies that were known for their progressive human resources practices had leadership development programs, they were designed to help entry-level managers move into the general manager ranks.

Kline & Harris, 2008

Recruitment and retention strategies in Hospitality are being refocused in promotion within to combat quality labor issues, many top hospitality organizations, known for their efforts & excellence in employee relations, are implementing development programs based on inadequate and incomplete assessments, and without managerial accountability

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

Maurer et al, 2002

Employee development of new skills

Maurer et al, Employee 2002; Tanksy development & Cohen, 2001 activities

Hayes & Ninemeier, 2009

employee development process

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 candidates 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 employees 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 companys 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 organizations level of commitment to employee satisfaction also reflects the firms 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 Chinns 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. Chinns implemented an in-house English as a second language program for the restaurants 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. Chinns 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 restaurants employees turnover rate dropped to 38%.

EMPLOYEE DEVELOPMENT STRATEGIES THAT WORK


Example 2: Brinker International subsidiary, the Corner Bakery Caf, 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.

CONCLUSION
In order to be successful in todays 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 firms investment in employee development affects an employees 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.