Vous êtes sur la page 1sur 16

University of Brighton School of Service Management BA (Hons) International Hospitality Management

Implications of Managerial Skills Shortages in the Hospitality Industry Thomas D. Crowley


HH300u: Contemporary Issues in Hospitality For: Ken Woodward 09/12/2010

Word count: 2,814. Disclaimer: I confirm that this essay is all my own work.

Table of Contents Table of Contents Introduction Hire for Attitude, Train for Skill One Step Back... A Negative Image Managers, but not Leaders Implications for the Industry Conclusion Bibliography Table of Figures Figure A: The Unbroken Circle

Page i 1 1 2 3 4 5 8 10

Introduction Due to the people-orientated nature of the hospitality industry (Cooper, 2010; Glancy, 2010) and the impact this can have on the success of the company (Collins, 2007; Cutler, 2010; Mattila & Cranage, 2005; Sparks & Fredline, 2007), there have been many articles published emphasising the importance of hiring people with the right attitude, and then training or developing skills (Cooper, 2010; Cutler, 2010; Kusluvan et al., 2010). The hospitality industry should be at the forefront of skills development and should be benefiting from a highly trained workforce, who have the desire to work to the best of their abilities, and who are supervised by some of the best leaders in management today. However this is not the case, and has not been for many years (Torrington et al., 2009). Human resource policies were recognised as being underdeveloped in 1976 (Price, 1994), yet in over 30 years, little has changed. This is because managers are still failing to maximise both their own performance and that of their employees (Glancy, 2010). Hire for Attitude, Train for Skill Within the airline industry, Herb Kelleher, one time CEO of Southwest Airlines because famous for his Hire for attitude, train for skill philosophy (Carbonara, 1996: 73). recruitment was (Kelleher, 1998: 77): We would rather have someone with less education and experience but with a great attitude. If it comes down to a choice between the two, well take the attitude over the education and the experience and provide those ourselves. This attitude has been adopted somewhat by some of the larger hospitality organisations. Companies such as Marriott or InterContinental carry a similar ethos proudly. Personality is behind our success headlines the InterContinental recruitment page of their website (IHG, 2010: 1) and Marriott are looking for people from any industry background who have a passion for people and a spirit to serve (Marriott, 2010: 1). His attitude towards

Kellehers investment in people and training saw Southwest Airlines turn profits when every other domestic American airline was struggling, and gave him an almost cult-like status (Gibson & Blackwell, 1999; Kelleher, 1998). Similarly, Marriott and InterContinental boast highly developed training and graduate fast-track schemes (Bloomberg, 2009; IHG, 2010; Marriott, 2010) and rank 12 and 19 respectively in the Sunday Times Best 100 Companies (Best 25 Big Companies) (Sunday Times, 2010). According to Freed (2010), many hospitality graduates enter the job market armed with management skills but willing to perform myriad duties at entry level pay (Freed, 2010: 32). This is beneficial to the industry, she argues, and that it is just a case of taking [one] step back to take two steps forward (Freed, 2010: 32], yet in the UK, management and leadership is still one of the key areas lacking skills (Glancy, 2010). One step back... This could mean that graduates are taking a step back (Freed, 2010: 32), but are not able to take the two steps forward into management positions. This indicates problems with graduate development within the industry (Ingram et al., 2000) which shows that the attitudes are there, but the training is not (Baum, 2006). What is potentially worse is that in many cases, both skills and attitude are there, but the development, investment, and even recognition are not. This could be due to a mismatch (Jameson & Hargraves, 1990: 25) between the skills that graduates acquire over the course of their degree, and those desired by employers (Barron, 2008; Raybould & Wilkins, 2006; Watson, 2008). It is argued that employers within the industry focus on practical skills (Raybould & Wilkins, 2005) and claim graduates lack the operational experience. The opposing point of view is that employers without educational experience do not understand the skills and knowledge graduates bring (Barron, 2008). This shows that the problems discussed by Ingram et al. in 2000 are still prevalent within the sector (Ingram et al, 2000). One justification for the lack of development is that training makes people more employable (Torrington et al., 2009: 66), and thus more attractive to other employers. The CIPD (2010) reports 2

Britain as averaging a median rate of labour turnover of 13.5%. According to People 1st (2010), the hospitality industry is experiencing 31%, which dissuades companies from running development courses (Watson, 2008). Also, traditional views of management development see it as unimportant and ineffective, believing a form of natural selection will reveal those suited to managerial positions (Armstrong, 1984). These assumptions miss the true aim of management development, which is to ensure that management succession within the organisation is provided for (Armstrong, 1984: 314). Employee development is something Hilton practise to great benefit, as employees are encouraged to use Hiltons award winning OnQ Hilton University, a training system open to all, which has courses from management skills to foreign languages (HU, 2010). Employees are trained on Hiltons unique systems and to operate within Hiltons parameters. This does make them employable elsewhere, but continued development and investment gives them a reason to remain with Hilton, thus through internal promotion, loyal and well trained employees are able to remain and progress within the company to the benefit of both parties (Hilton Worldwide, 2010). Marriott claims that 93% of entrants onto the graduate development scheme in 2008 were from hospitality degree majors (Bloomberg, 2009). A demonstration of Goss-Turners theory of recession driven efficiencies (Goss-Turner, 1999) comes through Marriotts heavier focus on rehiring undergraduate interns (Bloomberg, 2009). While companies such as Hilton scaled back on fast-track programmes (Druce, 2009), Marriott are hiring those familiar with the company already. This has seen Marriott boast the best graduate new-hire retention, with 35% remaining after 5 years (Bloomberg, 2009). However, it is argued that after four years of studying (Jameson & Hargraves, 1990), often supplemented by part-time work (Barron, 2008), graduates are less willing to step back before being able to progress (Jameson & Hargraves, 1990). Though the number of graduate managers is

allegedly rising (Collins, 2007), People 1st (2010) believe that 12% of hotel managers still have no qualifications at all, including the basic food hygiene certificate. government training initiatives for SME managers have had little effect. Morrison (2003) claims that

A Negative Image This reinforces the theory that hospitality graduates and even other professionals are no longer attracted by the industry (Barron, 2008; Baum, 2006; Glancy, 2010; Raybould & Wilkins, 2005) and are looking for employment somewhere their talents will be recognised and reimbursed immediately (Jameson & Hargraves, 1990). As between 80% and 98% of UK hospitality businesses are classed as SMEs (Kusluvan, 2003; Morrison, 2003), while the large chains boast about their training and development schemes, the real bulk of the industry suffers as smaller chains and companies without strong brand images struggle to attract, retain, and develop graduates (Ingram et al., 2000; Morrison, 2003; Watson, 2008). Much of this is due to an unbroken circle of poor image (Baum, 2006: 131; Figure A; Watson, 2008). This makes maximising employee potential much more difficult, and limits scope for in-house promotion. The idea has been put forward, however, that this image may not have been completely accidental.

Figure A: The Unbroken Circle Long Hours, Low Pay, Poor Working Conditions

Poor Image

Job Vacancies Are Filled By Under Qualified, Under Motivated Applicants

Qualified and Talented Individuals Seek Work Elsewhere

Industry has many job vacancies and positions unfilled Source: Adapted from Baum, 2006

Mullins and Davies (1991) claim that the industry was attempting to attract the wrong sort of people (Mullins & Davies, 1991: 22). Managers saw their own positions as threatened by the rising

generation of graduates (Mullins & Davies, 1991) and so claimed that hospitality graduates were too academic, lacking practical knowledge and skills. Though this research is now twenty years old, and that managerial perceptions of graduates may have changed, the effects are still being felt throughout the industry, and the conflict between academia and industry is highlighted once again (Watson, 2008). Managers, but not Leaders This ties in with schools of thought believing that managers graduate or other are just managers, and not leaders, who are able to perform the tasks set, but not to lead a team of other people to do so (Cutler, 2010; Glancy, 2010). In spite of the claims of companies like Marriott and IHG, SMEs are not the only organisations that have difficulty in developing graduate employees. There are training gaps in strategically pivotal stages (Goss-Turner, 1999: 52) within the large chains too. This could also be a result of plug-gap promotion (Baum, 2006: 290) where managers are promoted to fill vacant positions as companies react to environmental changes (Baum, 2006; Cutler, 2010). On the assumption that because a manager can successfully run one unit, he can manage a number of units with the same efficiency, managers are promoted, yet skills are not developed (Goss-Turner, 1999). This weakens the organisation, and strengthens Druckers (1955) argument that management development is not just about promotion. Collins (2007) believes a rise in graduate managers is a positive sign; however college and university courses marketed as management courses in order to attract students, but in reality teach entry level operational skills damage the industry. Baum (2006: 232) states: [Management] is a term frequently used within the tourism, hospitality and leisure industry to describe education and training at a level where it would not be applicable or admissible in other economic sectors.

Yet Watson (2008) warns that as hospitality courses incorporate more managerial elements within the program, it is losing identity and becoming subsumed within general management education (Watson, 2008: 764). Management degree courses must fulfil not only the needs of the student and the institution, but also of the industry (Raybould & Wilkins, 2006). Yet in basic text books, the focus is on skills lacked by the staff, and not the managers (Torrington et al., 2009). Manager selection and training begins, or should begin, before a management course starts. Brownell (2010) believes that candidates for education need to be screened better to ensure that students are serious about the degree and the industry. Implications for the Industry The skills shortage is a fundamental key issue (Torrington et al., 2009: 67) in the industry. Torrington et al. (2009), in debating this, discuss the demand for graduates, the skills the employers desire, and the potential the UK has for becoming overqualified (Torrington et al., 2009: 70) yet they fail to mention the existing managers and employers in the industry, and skills deficiencies they themselves may have, and the effect this has on the industry, the workforce, and the graduates who are so in demand. Due to the nature of the work, it is has been suggested that hotel managers are different from other managers (Morrison, 2003; Mullins & Davies, 1991). Research by Ladkin (1999) found that

managers are typically viewed as being sociable, flexible and committed to their jobs, and working long hours and makes no mention of any other skills needed. Management style within the industry is characterised as being authoritarian, hierarchical, and even despotic (Kusluvan et al., 2010: 196) which is an issue, as the workforce in a hospitality establishment is directly influenced by the management (Brownell, 2010; Kusluvan et al., 2010; Torrington et al., 2009). The ISHC identified labour and skills shortage as the number one concern for the industry (HMM, 2007: 4), however they also fail to mention the role managers play.

In the mid 1900s, one of Chicagos biggest hoteliers, Ernie Byfield, stated that (Turkel, 2010): A hotelman must be a master of opposites. He needs to be a greeter and a bouncer, pious but ribald, an interior decorator and bartender; he must understand the arrangement of flowers and the disposal of garbage; he may be forced into the acquaintanceship with accouchment and embalming; he should appreciate swing music but encourage quiet, be noted as a connoisseur and competent as a plumber; he must walk with beauty, but only walk with it Only a man of very loose moral character should accept the job. While Byfields words are a tongue-in-cheek description based upon experience, it also highlights the breadth of skills needed at that time to succeed in hotels. Mullins and Davies (1991) echo this by stating that a hotel manager needs technical competence, social and human skills, and a conceptual ability to be able to plan for and view the whole operation. This ability to be able to work with and get the best out of people (Mullins & Davies, 1991) is still needed and in short supply today. There is a need for more humane and people orientated managers in the industry (Kusluvan et al., 2010: 197). Druckers (1955) vision that management must put economic performance first and employees last (Drucker, 1955: 7) worked in the manufacturing industries of Cold-War America. However, managers in hospitality appear to be clinging to this idea, and neglecting the evolution of service and hospitality management. Economic performance,

Druckers first function of management (Drucker, 1955: 7) can still be accomplished, but the focus needs to include employees as more than a final function or lowest priority (Drucker, 1955: 13). The need for people orientated managers is more urgent than it ever has been given the current economic climate (Baum, 2006; Brownell, 2010; Ching-Yick Tse & Jogaratnam, 2008; Cutler, 2010). Drucker claimed that no other decisions are so long lasting in their consequences than those pertaining to people (Drucker 1985: 33), yet Lucas believes that managers in hospitality are still disposed to effecting changes within the business without consulting employees (Lucas, 2004). This affects the employee view of management which influences the way they treat the customers (Brownell, 2010; Cutler, 2010; Kelleher, 1998). Also the employees are the first and often only point 7

of human contact a customer has with a company, and so in individual units they often have a better knowledge of the customers wants and needs than the management (Kelleher, 1998). There is an increasing need in the industry for leadership rather than control and supervision (Cutler, 2010; Raybould & Wilkins, 2005). Brownell (2010) identifies a need for more servant leaders (Brownell, 2010: 366) who are motivated by the desire to serve and empower employees, or in other words, who practise leadership as hospitality (Brownell, 2010). Successful companies such as

Marriott place leadership skills as highest on the list of desired qualities, above work experience (Bloomberg, 2009). Hospitality is extremely sensitive to political, economic, natural and epidemic crises (Yu, 2008: 65). Recession-caused redundancies should lead companies to seek new levels of efficiency (Goss-Turner, 1999), however the fluctuating demand often just creates short-termism (Baum, 2006: 241). It has been found that industry conditions account for less than 20% of a companys success, and it is more dependent on the ability of the manager to develop a competitive strategy (Ching-Yick Tse & Jogaratnam, 2008). Managers currently have to focus on short term profit because they react to environmental change instead of anticipating and planning for it (Baum, 2006). Management

development is not about filling positions (Armstrong, 1985), but about trained management succession. Drucker identified the need for the development of managers equal to the tasks of tomorrow, not the tasks of yesterday (Drucker, 1955: 180). Conclusion In reading around reports and research it is evident that there is a skills shortage within hospitality that still needs addressing, but the focus needs to be on the employers rather than the staff. Given the high rate of labour turnover within the industry, it would make more sense to focus on graduate and manager development, as one good manager can influence and train a whole workforce for good. Having managers who can work with and inspire a constantly changing staff will help companies more than trying to train every member of staff who enters the company. As graduates and managers feel more valued and confident, they will pass this on to those they supervise, who will in turn relay 8

this onto the customers. As customer satisfaction rises, company performance will rise. This will increase the wellbeing of the personnel, which will reverse the unbroken circle discussed earlier. However, as discussed earlier, the problem is not limited to a negative image, there are other factors acting upon the industry. If there is still a mismatch in what academia provides and what industry wants, it is leading to a mismatch in talent and recruitment, and this needs to be addressed At the moment, there are two

major problems facing the industry: the first is that many graduates are unable or unwilling to accede to managerial positions, the second is that many unqualified and unskilled managers are occupying these roles. Current studies and research thus far fail to give a unanimous, satisfactory answer why this is, or how to resolve it (Watson, 2008). While more trade bodies are pushing training and development schemes, and more companies are claiming to value staff more, there is still an issue which is not going to be solved until the majority of companies make an effort, instead of just a few exceptions. Traditional views of skills and development are no longer relevant, and short-term strategies can only work in the short term. If hospitality firms are to survive, they must let go of the past and prepare for the future.

Bibliography Armstrong, M., (1984). Handbook of Personnel Management Practice, 2nd ed. London: Kogan Page. Barron, P., (2008). Education and Talent Management: Implications for the Hospitality Industry. International Journal of Contemporary Hospitality Management, 20 (7), pp. 730 742. Baum, T., (2006). Human Resource Management for Tourism, Hospitality and Leisure: An International Perspective. London: Thompson Learning. Bloomberg, (2009). Marriott International, [online]. Available from: http://www.businessweek.com/careers/first_jobs/2009/34.htm, [accessed on 03/12/2010] Brownell, J., (2010). Leadership in the Service of Hospitality. Cornell Hospitality Quarterly, 61 (3), pp. 363 378. Carbonara, P., (1996). Hire for Attitude, Train for Skill. Fast Company, 4, pp. 73 76. Ching-Yick Tse, E., & Jogaratnam, G., (2008). From the Top Down: Strategic Management in the Hospitality Industry. In: Brotherton, B., & Wood, R. C., eds. The SAGE Handbook of Hospitality Management. London: SAGE Publications, pp. 166 191. CIPD, (2010). Resourcing and Talent Planning. London: Chartered Institute of Personal and Development. Collins, A. B., (2007). Human Resources: A Hidden Advantage?. International Journal of Contemporary Hospitality Management, 19 (1), pp. 78 84. Cooper, C., (2010). Do You Recruit Hospitality Staff on Attitude or Aptitude?, [online]. Available from: http://www.zealcoaching.com/2010/07, [accessed on 10/11/2010]. Cutler, A., (2010). Aspire to Inspire. Coventry: Hospitality Leadership.

10

Druce, C., (2009). Marriott to Re-Run Management Development Scheme, [online]. Available from: http://www.caterersearch.com/Articles/2009/01/08/325555/marriott-to-re-run-managementdevelopment-scheme.htm, [accessed on 03/12/2010]. Drucker, P. F., (1955). The Practise of Management. Oxford: Heinemann Professional. Drucker, P. F., (1985) How to Make People Decisions. In: Drucker, P. F., ed. Peter Drucker on the Profession of Management. Boston, MA: Harvard Business School Publishing, pp. 33 42. Freed, J. Q.,(2010). Industry Needs Flexible Graduates. Hotel & Motel Management, 225 (2), pp. 1, 32. Gibson, J. W., & Blackwell, C. W., (1999). Flying High with Herb Kelleher: A Profile in Charismatic Leadership. The Journal of Leadership Studies, 6 (3/4), pp. 120 137. Glancy, S., (2010). Are Good Leaders Born or Made?. Caterer & Hotelkeeper, 200 (4644), pp. 58 59. Goss-Turner, S., (1999). The Role of the Multi-Unit Manager in Branded Hospitality Chains. Human Resource Management Journal, 9 (4), pp. 39 57. Hilton Worldwide, (2010). Careers, [online]. Available from: http://www.hiltonworldwide.com/careers/index.htm, [accessed on 29/11/2010]. HMM, (2007). Labour Concerns Head ISHCs 2007 Top 10 List. Hotel &MotelManagement, 222 (1), pp. 4, 70. HU, (2010). Hilton University, [online]. Available from: http://www.careersathilton.com/hiltonuniversity.php, [accessed on 18/12/2010]. IHG, (2010). Careers, [online]. Available from: http://www.ihgplc.com/index.asp?pageid=7, [accessed on 10/11/2010].

11

Ingram, A., Jamieson, R., Lynch, P., & Bent, R., (2000). Questioning the Impact of the Graduatization of the Managerial Labour Force upon the Management of Human Resources in the Scottish Hotel Industry. Consumer Studies & Home Economics, 24 (4), pp. 212 222. Jameson, S. M., & Hargraves, S., (1990). A Comparative Analysis of the Job Opportunities Offered to Hotel and Catering Graduates. Personnel Review, 19 (6), pp. 25 32. Kelleher, H., ( 1998). Customer service: It Starts at Home. Journal of Lending & Credit Risk Management, 80 (6), pp. 74-78. Kusluvan, S., (2003). Characteristics of Employment and Human Resource Management in the Tourism and Hospitality Industry. In: Kusluvan, S., (ed). Managing Employee Attitudes and Behaviours in the Tourism and Hospitality Industry. Hauppauge, NY: Nova Science Publishers. Kusluvan, S., Kusluvan, K., Ilhan, I., & Buyruk, L., (2010). The Human Dimension. Cornell Hospitality Quarterly, 51 (2), pp. 171 214. Ladkin, A., (1999). Hotel General Managers: A Review of Prominent Research Themes. International Journal of Tourism Research, 1, pp. 167 193. Lucas, R. E., (2004). Employment Relations in the Hospitality and Tourism Industries. London: Routledge. Marriott, (2010). Discover our World, [online]. Available from: http://www.marriott.com/careers/discover-our-world.mi, [accessed on 10/11/2010]. Mattila, A. S., & Cranage, D., (2005). The Impact of Choice on Fairness in the Context of Service Recovery. Journal of Service Marketing, 19 (5), pp. 271 279. Morrison, A., (2003). SME Management and Leadership Development: Market Reorientation. Journal of Management Development, 22 (9), pp. 796 808.

12

Mullins, L., & Davies, I., (1991). What Makes for an Effective Hotel Manager?. International Journal of Contemporary Hotel Management, 3 (1), pp. 22 25. People 1st, (2010). Key Facts and Figures 2010, [online]. Available from: http://www.people1st.co.uk/research, [accessed on 26/11/2010]. Price, L., (1994). Poor Personnel Practice in the Hotel and Catering Industry. Human Resource Management Journal, 4 (4), pp. 44 62. Raybould, M., & Wilkins, H., (2005). Over Qualified and Under Experienced. International Journal of Contemporary Management, 17 (3), pp. 203 216. Raybould, M., & Wilkins, H., (2006). Generic Skills for Hospitality Management: A Comparitive Study of Management Expectations and Student Perceptions. Journal of Hospitality and Tourism Management, 13 (2), pp. 177 188. Sparks, B. A., (1994). Communicative Aspects of the Service Encounter. Journal of Hospitality and Tourism Research, 17 (2), pp. 39 50. Sunday Times, (2010). The Sunday Times 100 Best Companies 2010, [online]. Available from: http://business.timesonline.co.uk/tol/business/career_and_jobs/best_100_companies/best_100_tables/, [accessed on 01/12/2010]. Torrington, D., Hall, L., Taylor, S., & Atkinson, C., (2009). Fundamentals of Human Resource Management. Harlow: Pearson Education. Turkel, S., (2010). Nobody Asked Me, But, [online]. Available from http://www.htrends.com/trends-detail-sid-45399-tNobody_Asked_Me__But____No_______By_Stanley_Turkel__MHS__ISHC.html, [accessed on 29/11/2010].

13

Watson, S., (2008). Where are We Now? A Review of Management Development Issues in the Hospitality and Tourism Sector. International Journal of Contemporary Hospitality Management, 20 (7), pp. 758 780. Yu, L., (2008). The Structure and Nature of the International Hospitality Industry. In: Brotherton, B., & Wood, R. C., eds. The SAGE Handbook of Hospitality Management. London: SAGE Publications, pp. 62 89.

14

Vous aimerez peut-être aussi