The practice of HRM in relation to employee motivation and job performance by HR managers in the hospitality industry in Lao PDR
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Citation:Douangphichit, N. (2015). The practice of HRM in relation to employee motivation and job performance by HR managers in the hospitality industry in Lao PDR. An unpublished thesis submitted in partial fulfilment of the requirements for the degree of Master of Business, Unitec Institute of Technology, New Zealand.
Permanent link to Research Bank record:https://hdl.handle.net/10652/3056
In a hotel, which is a service business, it is crucial to identify the factors that increase business performance, profit and productivity. The study of HRM practices is one of a hotel’s crucial management functions that allow the hotel business to maintain its competitive advantage and improve both employee performance and organizational effectiveness. In order to guarantee that the hotel organization has good quality management, it is vital to have effective HRM practices that result in a high level of productivity, a high level of service quality, effective and efficient resource exploitation, and improvement of employee performance. Recently, the Lao government considered the tourism and hospitality industry as one of the top priority development sectors because the tourism industry has earned revenue from foreign countries and has greatly contributed to social and economic development in Lao PDR. Due to an increase in the importance of tourism and the support from the government, the hospitality business such as the hotels and restaurants grew significantly in 1995 and has increased dramatically compared to the other main sectors in the Lao economy. However, it seems that these businesses in Laos still underperform in HR development and training. Therefore they do not have the capability to operate effectively and efficiently. As a result, this can hinder a hospitality business and the tourism industry in Laos which is planned to grow considerably over coming years. Therefore, in this research paper, the main research aim is to discover the approaches that the hotel industry should implement to improve employee job performance and help the hotel industry maintain its competitive advantage and sustain profitability in the increasingly competitive business environment in Laos. This research project will mainly focus on overall HRM functions such as (1) recruitment and selection, (2) employee training and development, (3) employee motivation and satisfaction, and (4) employee retention which are practised by HR managers in hotels in Laos. With regard to methodology, this research applies mixed methods in order to better explore and experience the research problem. Findings from the research demonstrate that there are some weaknesses in relation to the current HRM practices in Lao hotels. In the area of employee selection, most HR managers are not likely to recognize the importance of employee selection. In the area of employee training, even if most HR managers acknowledge the importance of training activities, half of the employees did not receive training and most of them still need more training. In the area of motivation and satisfaction factors, results from the questionnaire survey show that money, opportunity for growth and fairness are the most influential factors that motivate employees to work and satisfy them at workplace.