School of Hotel and Restaurant Management Oxford Brookes University

ARE THE SELECTION METHODS USED BY THE HOSPITALITY INDUSTRY CULTURALLY SENSITIVE?

Guillermo Herrera Pinilla

2002

This dissertation is submitted in part fulfilment of the requirements for the Masters Degree in International Hotel and Tourism Management.

DECLARATION

This dissertation is the result of my own independent work. Where material other than my own work has been used it is appropriately attributed and referenced in the text.

I agree that this dissertation may be made available for reference and photocopying at discretion of the Head of School, who will only give permission for such reproduction to the extent which s/he considers fair and reasonable

Guillermo Herrera Pinilla

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ACKNOWLEDGEMENTS

I would like to thank all those who provided me support to carry out this project. Sincere thanks go to my supervisory Liz Doherty, Principal Lecturer of the School of Hotel and Restaurant Management. She gave me the vision to develop the spirit of this project and focus my efforts on the right direction. I am especially appreciative of the Fundacin Para el Futuro de Colombia - COLFUTURO, which made possible my stay in the U.K. My thanks also go to my family and friends who despite the distance were always here providing me with daily encouragement. Their permanent support and interest were definitive to achieve my goal. Finally, I want to dedicate this work to all Colombians who day-to-day, with their tenacity and dedication, construct a better country.

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ABSTRACT

The Hospitality industry has become a central player within the global economy. The increasing mobility of the workforce and the globalisation process of the industry are a reality. Organisations moving abroad are facing, more than ever, the challenge of managing a culturally diverse workforce. Hence, the importance of developing culturally sensitive selection methods in a cross-cultural environment represents a great challenge for the industry. The first part comprises the review of literature. It highlights key issues: the globalisation process; international labour markets; the concept of culture; human resource practices; cultural diversity; discriminatory practices; validity and cultural sensitivity of selection methods and candidates reactions to selection process. A model is suggested in the interest of understanding the interaction of these elements. The second part describes empirical research carried out in three international hospitality groups based in the U.K. The conclusions advise that 'new individuals coming into the hospitality industry are challenging traditional organisational practices. There is a lack of cultural awareness of the industry in terms of selection methods. The challenge of selecting cross-cultural employees effectively has not been achieved by the industry yet. Recommendations point out it might be the time to revaluate, review and, where necessary, change the industry practices. Talent should become more important than nationality when recruiters select applicants from different ethnic origins. Applicants themselves also may need to develop a different approach to the selection process. Finally, it is evident that there is a lack of research focused on staffing in a cross-cultural environment. Further studies should be addressed to identify the dimensions of the cultural differences impacting the selection methods as well as to measure their objectivity and cultural sensitivity. The design of a consistent conceptual model, which attempts to understand the interaction of internal and external factors affecting the selection process, is also suggested.

Keywords: Hospitality industry, selection methods, globalisation, culture, diversity, discrimination, workforce, labour markets.

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CONTENTS

Page Declaration Acknowledgements Abstract List of Tables List of Figures Appendices Introduction Part I LITERATURE REVIEW Introduction Chapter No.1 - Internationalisation of Markets 1.1. Introduction 1.2. Globalisation of the hospitality industry 1.2.1. Causes 1.2.2. Process 1.2.3. Facts 1.3. International Labour Markets 1.3.1. Definition 1.3.2. Demographic changes 1.3.3. Shortages of skilled staff 1.3.4. Migration of the workforce (i) Causes (ii) Facts (iii) Consequences 1.4. Conclusions Chapter No.2 The influence of the culture at diverse levels 2.1. Introduction 2.2. Concept of culture 2.2.1. Definition 2.2.2. National culture vs. corporate culture 2.2.3. Previous studies 2.3. Concept of centricity 2.4. Personnel Management vs. Human Resource Management 2.5. Conclusions Chapter No.3 Managing cultural diversity 3.1. Introduction 3.2. Positive or negative effects? 3.3. Discrimination in the hospitality industry ii iii iv viii x xi xii 1 2 3 3 4 4 5 5 7 7 7 10 12 12 13 14 15 16 16 16 16 17 20 21 23 25 26 26 26 28

3.4. Different approaches to cultural diversity 3.5. A new challenge for the hospitality industry 3.6. Conclusions Chapter No.4 Integrating the elements Chapter No.5 Selecting within a cultural diversity 5.1. Introduction 5.2. Selection methods used by the hospitality industry 5.3. Fair or unfair selection methods? 5.4. Selection criteria and job description 5.5. Increasing validity in the selection methods 5.5.1. Personality Test 5.5.2. Interview 5.5.3. Assessment Centres 5.6. Candidates reactions 5.6.1. Interviewing 5.6.2. Assessment Centres 5.7. Conclusions Summary of part I Literature Review

30 32 33 35 38 38 39 41 43 44 44 45 46 46 46 47 48 49

Part II RESEARCH Introduction Chapter No.6 Research Methods 6.1. Introduction 6.2. Objectives 6.2.1. General objective 6.2.2. Specific objectives 6.3. Research approach 6.4. Methodology 6.4.1. Instruments (i) In-depth interview (ii) Participant observation 6.4.2. Sample 6.4.3. Participants profile 6.4.4. Data collection procedure (i) In-depth interview (ii) Participant observation 6.5. Limitations Chapter No.7 Research Findings 7.1. Introduction 7.2. Case studies 7.2.1. Global Hospitality Company (i) Overview (ii) History

50 51 52 52 52 52 52 53 55 55 56 57 58 59 59 59 61 62 63 63 63 63 63 64

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(iii) Structure and strategy (iv) Interviewee background (v) Interview findings 7.2.2. International Hotel Co. (i) Overview and structure (ii) History (iii) Strategy (iv) Interviewee background (v) Interview findings 7.2.3. Contract Catering Co. (i) Overview (ii) History and strategy (iii) Structure (iv) Interviewee background (v) Interview findings (vi) Participant observation findings AC (vii) Participant observation findings Structured interview

65 65 65 68 68 68 69 69 69 71 71 72 73 73 74 76 79

Part III ANALYSIS Introduction Chapter No.8 Analysis of the research findings 8.1. Introduction 8.2. Implementation of the model 8.2.1. Functionality and limitations of the model 8.3. Centricity approach 8.4. Human Resource Management or Personnel Management 8.5. Equal Opportunities or Managing Diversity 8.6. Labour market perception 8.7. Selection methods 8.8. Fair or unfair selection methods? Chapter No.9 Assembling the puzzle 9.1. Introduction 9.2. Discussion 9.3. Conclusions 9.4. Recommendations 9.5. Further studies 9.6. Final reflections

80 81 82 82 82 83 85 85 86 87 87 88 90 90 90 93 94 95 95

Bibliography

97

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LIST OF TABLES

Page Chapter No.1 Table No 1.1 World-wide statistics for the hotel industry by global regions 1996 Table No 1.2 Estimates of world and continental population 2000 / 2001 Table No 1.3 Population by age (U.K.) 1991 / 2011 Table No 1.4 Demographic composition of the workforce (U.S.) 1988 / 2000 Table No 1.5 Demographic composition of whites and blacks in selected occupations (U.S.) 1994 Table No 1.6 New workers entering the workforce (U.S.) - 1985 / 2000 Table No 1.7 Percentage of employment by ethnicity in the hospitality industry (U.K.) 1998 Chapter No.2 Table No 2.1 A hierarchy of cultures Table No 2.2 The nature of culture differences, the national, occupational and organisational levels Table No 2.3 The concept of centricity applied to recruitment Chapter No.3 Table No 3.1 Equal Opportunities vs. Managing Diversity 30 21 19 18 14 13 11 9 9 8 6

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Chapter No.5 Table No 5.1 Selection methods used by foreign-owned hotel groups based in the U.K. Table No 5.2 Managerial selection in the U.S. restaurant sector Table No 5.3 The predictive accuracy of selection methods Chapter No.6 Table No 6.1 Strengths and weaknesses of research philosophy Table No 6.2 Relationship between interview structure and research objectives Table No 6.3 Profile of the organisations researched Chapter No.8 Table No 8.1 Indicators of internationalisation of the organisations researched 83 60 57 54 42 40 39

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LIST OF FIGURES

Chapter No.4 Figure No 4.1 Model: Evolution of the corporate HR practices within a multicultural context Chapter No.7 Figure No 7.1. Markets targeted by Contract Catering Co. Chapter No.8 Figure No 8.1 Model applied to the sample 84 72 36

APPENDICES

Page Appendix No.1 Selection methods Definitions Appendix No.2 Cultural limitations and potential bias of selection methods Appendix No.3 Strengths and weaknesses of the research methods Appendix No.4 In-depth interview structure Appendix No.5 Letter of invitation to participate in the research Appendix No.6 Information sheet Appendix No.7 Consent form Appendix No.8 Transcript of audio-recorded interview Appendix No.9 Report of phone interviews Appendix No.10 Application forms used by the companies researched Appendix No.11 Letter of invitation to the Contract Catering Co.s Open Day Appendix No.12 Letter of invitation to the Graduate Management Assessment Centre Appendix No.13 Letter of invitation to the structured interview 159 156 154 145 138 126 124 122 120 117 114 108 103

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INTRODUCTION

The hospitality industry is considered to be the worlds fastest growing industry contributing for nearly 10% of the worlds GDP (Boella, 2000). This increasing importance is the result of a vigorous process of expansion undertaken in the last decades. As a consequence, hospitality organisations expanding to a global market have started to face the challenge of selecting and managing an increasingly multicultural workforce. The fact that people from dissimilar cultural backgrounds, values, beliefs, behaviours and expectations are joining the industry demands a new approach to the selection process. Hence, the use of effective and culturally sensitive selection methods are more important than ever. It becomes a key factor of success for hospitality organisations in their process of internationalisation and an important issue for academics and practitioners at the beginning of the new millennium. On the one side, a brief literature review demonstrates the increasing importance of this issue. David Wood, ex-Chief Executive Officer (CEO) of the Hotel and Catering International Management Association (HCIMA), advises that the entire recruitment process is a time bomb for the industry (Powell, 1999) while other authors stress the necessity of shifting towards a more sophisticated Human Resource Management approach that takes into account the selection of staff from diverse cultural backgrounds (Fish, 1999; Commission of Racial Equality [CRE], 1991). Equally, MacHatton, Dyke and Steiner (1997), supporting this concern, identify selection process as the most important challenge facing the hospitality industry whereas Bowen (1996) designates employee recruitment as a leading sub-theme of study in hospitality research. On the other side, I particularly interested on the cultural sensitivity of the selection methods after observing the inconsistency between theory and practice within the industry. In other words, the approach adopted by international hospitality recruiters during selection processes and the literature review undertaken during the Master programme led me to question whether or not the industry is really aware about the importance of this issue.

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Thus, the aim of this dissertation is to explore the extent to which the selection methods used by the hospitality industry are culturally sensitive. In this process, three main objectives have been defined: First, to discuss relevant arguments and previous research findings in connection with the aim of this study. Second, to provide new evidence about current practices in relation to the selection methods used by the industry. Third, to suggest a conceptual model integrating central factors associated to the evolution of human resource practices within a multicultural context. The dissertation has been structured in three parts. The first part focuses on review of literature in order to analyse key topics strongly related to the aim of this study. The second part describes the details of an exploratory research conducted with the purpose of identifying current practices regarding selection methods. The third part includes both a systematic analysis of the research findings and the final discussion regarding links between theory and findings. Literature review represents the first part of the dissertation. The first Chapter concentrates on the globalisation process of hospitality organisations and the changes experienced by international labour markets as key trends affecting the industry. The second Chapter explores the concept of culture at different levels and analyses human resource practices as element of the corporate culture. The third Chapter discusses the effects of a culturally diverse workforce on organisations and examines the evidence about discriminatory practices within the industry. Finally, Equal Opportunity and Managing Diversity are described as two different approaches to this issue. The fourth Chapter suggests a conceptual model in an attempt to integrate and understand the interaction of all elements influencing the evolution of human resource practices within a multicultural context. The fifth Chapter analyses the state-of-art of most common selection methods used by the hospitality industry in terms of validity and cultural sensitivity. Some practices to reduce cultural bias and candidates reactions to selection process are also reviewed in this section. The second part of this study describes the details of the empirical research carried out in three international hospitality groups based in the U.K. As mentioned previously, this aimed to identify current selection practices and cultural awareness of international hospitality groups. The Chapter sixth concentrates on the research methods in connection
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with objectives, research approach, methodology and limitations of the investigation. The Chapter seventh presents the research findings by means of three different case studies. Analysis of the research findings and final discussion comprise the third part of this dissertation. The Chapter eighth examines the research findings through both a systematic analysis in direct connection with the review of literature and the implementation of the conceptual model as suggested in Chapter four. The Chapter ninth puts arguments and findings together in order to construct the whole picture of the phenomenon while attempting to respond the research enquiry. Conclusions, recommendations to candidates and practitioners, themes of further studies and a retrospective analysis are provided in the last part of this Chapter.

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PART I LITERATURE REVIEW

All people are the same. It is only their habits that are so different Confucious

LITERATURE REVIEW

The review of literature is a key process of any research project as it allows research to be placed in context. Equally, it does not only become familiar concepts, theories and arguments associated to the research topic but also identify any gaps in the audiences knowledge (Veal, 1997; Finn, Elliot-White and Walton, 2000). Particularly, this literature review comprises of an assortment of interesting topics in direct connection with the aim of the dissertation. Social factors, psychological issues and economic tendencies, among others, were placed in context to account with all elements associated to this phenomenon. The data collected during this process was extracted from a variety of sources. Some of them included: electronic databases (e.g.: Emerald Library, Articles in Hospitality & Tourism, Mintel, Worldwide Hospitality and Tourism Trends-WHATT), journals (e.g.: Employee Relations, Cornell Hotel and Restaurant Administration Quarterly, Human Resource Management Journal, Industrial Relation Journal, International Journal of Contemporary Hospitality Management, International Journal of Hospitality Management, International Journal of Human Resource Management, Journal of International Business Studies, Personnel Review), books, reports, conferences and websites (see bibliography). Most of these sources were consulted from computer rooms and the different libraries of the Oxford Brookes University (OBU). As mentioned in the introduction, the following literature review consists of four Chapters, which develop same number of key concepts: globalisation (Chapter one), culture (Chapter two), cultural diversity (Chapter three) and selection methods (Chapter five) within the hospitality industry. Chapter four integrates these elements within a conceptual model.

CHAPTER No 1 Internationalisation of Markets

1.1.

Introduction

The hospitality industry is affected by the internationalisation of markets. It is visible both in the increasing number of hospitality corporations moving abroad and fast changes in the international labour markets. To understand how these trends affect the industry in general, and its potential influence on human resource management (HRM) practices in particular, represents the main aim of this chapter. On the one hand, the globalisation of the hospitality industry is analysed in terms of its contribution to the global economy and its importance as a significant employer. Economic growth, among other mega-forces, is pointed out as the major cause of this trend. On the other hand, the internationalisation of the labour markets is examined from three interrelated perspectives: global demographic changes, labour shortages and migration of the workforce. The discussion points out that the two main demographic changes affecting the hospitality industry are the uneven distribution of the worlds population and the aging phenomenon of workforce in the industrialised countries. As a consequence, labour shortages occur in certain geographic regions and economic sectors. Possible solutions are suggested to deal with this reality. Lastly, migration of the workforce at geographic and industry level is also analysed, highlighting the role of the information systems and the increasing participation of immigrants in the total population and the workforce of the developed countries.

1.2.

Globalisation of the hospitality industry

1.2.1. Causes The process of globalisation in the hospitality industry is a consequence of diverse factors. The steady growth of the industry in the last decades and the merging of mega-forces transforming the global economy in the 1980s, have been pointed out as the major causes of this phenomenon. On the one hand, different authors (Powell, 1999; Pine and Go, 1996; Boella, 2000) have suggested a variety of factors attempting to explain the steady growth in the industry. Boella (2000) argues that this growth is related to the increased disposable incomes, more time for leisure, easier and cheaper travel and increased longevity. Similarly, David Wood ex-Chief Executive Officer (CEO) of the Hotel and Catering International Management Association (HCIMA) claims that economic growth, greater affluence, increased leisure time, and earlier retirement for many have led hospitality to be the biggest growth industry in the UK and many other economies (Powell, 1999: p1). Interestingly, the slow growth of the industrialised economies and the attractive opportunities of growth in other regions of the world, have also encouraged hospitality firms to expand abroad. Pine and Go (1996) suggest that the potential growth in other countries is caused by the role of the new business centres around the world, the incentives given by some governments to the industry and the internationalisation of trade and manufacturing activities. The latter factor generates simultaneously a great potential market for hotel accommodation and other facilities in developing countries. On the other hand, Pine and Go (1996) consider that the concept of global hospitality corporation was also a consequence of a variety of mega-forces affecting the world economy in the last decades. They include the snow ball effect of the information technologies (IT), the development and importance of the media at a global scale, the ability of capital markets to move resources rapidly to more profitable destinations, and a strong focus on mass markets and global brands, among other factors.

1.2.2. Process Regarding the process of globalisation in the hospitality industry, Pine and Go (1996) identify four sequential steps employed by trans-national hotel corporations moving overseas. These corporations start the process by investing in the new project, continue consolidating operations and introducing brand-marketing practices, and evolve developing or seeking affiliation with global distributions systems (GDSs).

1.2.3. Facts The hospitality industry has considerably increased its participation in the global economy during the last decade. However, the importance of this process cannot be analysed only regarding the economic contribution to the global and national Gross Domestic Product (GDP) but also in terms of the workforce concentrated in the industry. According to Boella (2000), the hospitality industry is considered to be the worlds fastest growing industry, contributing nearly 10% of the worlds and UKs GDP. Similarly, Baum (1995) remarks the importance of the hospitality industry in Western and Eastern European countries, arguing that this is a major contributor to foreign exchange earnings (particularly in France, Italy and the UK) and a vital platform within the economic reconstruction of the former USSR. In terms of workforce, the importance of the hospitality industry as a major employer is evident. In fact, the industry employs 10% of the global population, concentrated mainly in the American continent. In the U.K., for instance, the hospitality industry employs nearly 1.9 million people and it is responsible for one in five new jobs in the U.K. Also, it is estimated that one job is created per every new hotel room (see Table No 1.1) (Powell, 1999; Hospitality Training Foundation [HTF] 1999; Choi, Woods and Murrman, 2000; Bonn and Forbringer, 1992; Boella, 2000). To summarise, it has been suggested that technological, economic, demographic and political factors have led the hospitality industry to explore global markets. However, this process seems to be more a reaction to these factors than a planned action to grow at a
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global scale. In any case, there is no doubt about the importance of the hospitality industry in terms of its economic contribution to the global economy. And despite recent setbacks international facts (the September the eleventh events, invasion in Afghanistan and potential new terrorist attacks), it may be suggested that this steady growth will maintain in the long term.

Table No 1.1 - World-wide statistics for the hotel industry by global regions - 1996 _________________________________________________________________________ Number of Number of Region Rooms Employees ________________________________________________________________________ Africa 343.347 1.259.019 Caribbean 155.253 277.614 Central America 41.221 232.180 North America 3.738.977 2.268.256 South America 487.787 1.283.917 Northeast Asia 719.480 1.120.339 Southeast Asia 453.657 730.585 South Asia 159.417 472.092 Australia and Pacific Islands 229.319 539.286 Middle East 162.178 455.432 European Free Trade Association 4.060.549 1.729.258 Other Europe 782.017 826.440 Grand Total 11.333.199 11.194.418 _________________________________________________________________________ Source: IHA White Report Adapted From: Choi et al. (2000)

Equally, the importance of the hospitality industry as a significant employer merits special attention. Social concern needs to be considered as all external and internal factors affecting the industry may have enormous economic and social effects on a considerable proportion of the global population.

1.3.

International labour markets

1.3.1. Definition Suggesting a definition, Baum (1995) describes the labour markets as the total working environments at local, regional, national or trans-national level, which include all industry sectors, skills needs and personnel requirements. Additionally, they comprise all those individuals who are unemployed or unable to work as a result of training programs, illness, injury or simply because they are attending the traditional educational systems.

1.3.2. Demographic Changes Demographic changes in the last 20 years have caused alarm among academics and practitioners in terms of their potential effects on the hospitality industry workforce. The unevenly distributed population in the world, which has generated a labour shortage in particular geographic regions and economic sectors, and the aging phenomenon of workforce in the industrialised countries, are two major demographic factors affecting the hospitality industry. Indeed, the first factor, the uneven distribution of the worlds population, has been pointed out as an increasing social problem for both developed and developing countries. According to the Population and Vital Statistics Report published by the United Nations (U.N.) in 2001, the world population was expected to be 6.1 billion by the year 2001 and is projected to be 8.5 billion by the year 2050. Interestingly, most of this increase will occur in the developing countries, with Asia being home to 66% of total population (see Table No 1.2) (U.N., 2002a; Choi et al, 2000). What is more, ten out of the worlds nearly 240 countries account for two-thirds of the worlds population. Six out of the top ten are located in Asia and it is in this region where the largest absolute increase is expected (Choi et al, 2000).

The second demographic factor refers to the decline in the youth population of the industrialised countries and, in turn, the increasing proportion older people making up the industry workforce in this part of the world. This phenomenon implies a potential problem for the hospitality industry as it has traditionally depended upon teenagers for covering new vacancies (Bonn and Forbringer, 1992; Boella, 2000; Baum, 1995).

Table No 1.2 - Estimates of world and continental population - 2000 / 2001 _________________________________________________________________________ 2000 2001 (Millions) (Millions) _________________________________________________________________________ World total 6.057 6.134 Africa 794 813 North America 487 493 South America 346 351 Asia 3.672 3.721 Europe 727 726 Oceania 31 31 _________________________________________________________________________ Source: Population and Vital Statistics Report U.N. (2001) Adapted From: United Nations website (2002)

Supporting this argument, Kossek and Lobel (1996) indicate that whereas the overall U.S. population growth reached 15 % between 1986 and the year 2000, some segments of the population grew to higher rates. As mentioned by Bonn and Forbringer (1992: p47): for the first time in U.S. history, there are now more Americans [U.S. natives] over 65 years of age than there are teenagers. Similarly to the U.S., Baum (1995) claims that in the Western European countries the demographic structure is already a key factor affecting the composition of the industry workforce. As Baum (1995: p141) suggests: the decline in the youth population means that the competition for labour is likely to intensify on a national and European union level. In the U.K., for instance, the decline of the youth population in the last decade is progressive according to the Central Statistical Office projections for the period 1991-2011 (see Table No 1.3) (Boella, 2000).

Table No 1.3 - Population by age (U.K.) 1991 / 2011 (Millions) _________________________________________________________________________ Year Under 16 16-34 35-54 55-64 65-74 Over 74 Total _________________________________________________________________________ 1991 20 29 25 10 9 7 57.8 1995 21 27 26 10 9 7 58.6 2001 20 25 29 10 8 7 59.5 2011 18 24 29 12 9 7 60.5 _________________________________________________________________________ Source: Central Statistical Office Adapted from: Boella (2000)

Other issues associated to these trends include an increasing participation of women and minorities (immigrants) in the U.S. workforce. In fact, it was expected that by the year 2000, 61% of the female population were employed at any type of work, making up approximately 47% of the total work force (see Table No 1.4) (Kossek and Lobel, 1996). The participation of minorities will be discussed in detail later on this chapter (see section 1.3.4.).

Table No 1.4 - Demographic composition of the work force (U.S.) - 1988 / 2000 _________________________________________________________________________ Year 1988 2000 _________________________________________________________________________ Total in thousands 121.669 141.134 Sex (%) Male Female 55 45 53 47

Race (%) White (1) 86 84 Black (1) 11 12 Asian and other 3 4 Hispanic (2) 7 10 _________________________________________________________________________ Source: Barnum (1991) Adapted From: Kossek and Lobel (1996) (1) Includes Hispanics (2) Hispanics can be of any race

As mentioned by Bonn and Forbringer (1992), the demographic trends that shaped the hospitality industry during the 1990s and that will continue influencing it in the next decades, should lead the industry to re-evaluate tactics for meeting the different needs of these age groups in terms of recruitment and retention. In short, an uneven distribution of the global population (with two thirds living in Asia), an increasing presence of minorities and women participating of the workforce and a decline of the youth population in the developed countries, represent a reality affecting the hospitality industry. As a result, staffing vacancies in the next decades will become a greater challenge to the hospitality industry in this part of the world. Academics and practitioners need to realise that the industry requires long-term strategies to deal with this phenomenon, if the industry is to continue growing successfully in this global demographic scenario.

1.3.3. Shortages of skilled staff Demographic changes, as mentioned early on this chapter (see section 1.3.2.), have created an inevitable shortage of workforce sources in the hospitality industry, mainly of skilled staff. Choi et al (2000), quoting Lockwood and Guerrier (1990), claim that the hospitality industry in the developed world is currently experiencing labour shortages and will face even greater shortages in the future. Hence, finding the best way to balance supply and demand in the international labour markets represents a critical issue challenging the industry. David Wood of the HCIMA perfectly illustrates this trend by arguing that while currently between 8.000 and 9.000 prepared people are coming into the hospitality industry at management level, the industry needs 30.000 employees (Powell, 1999). The Labour Market Intelligence Report of H.T.F. (1999) also reiterates this tendency. A survey of hospitality employers in the U.K. regarding the extent of skills shortages and recruitment difficulties in the industry indicates that not only hard-to-fill vacancies attract few or no candidates but also skilled applicants are difficult to find.
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In the U.S., the labour markets seem to reflect a similar pattern. A study carried out by Kossek and Lobel (1996: p57), which analysed the demographic composition of whites and blacks in selected occupations (see Table No 1.5), concluded that it certainly appears that there is a relative shortage of diverse workers with professional skills and knowledge.

Table No 1.5 - National demographic composition of whites and blacks in selected occupations (U.S.) - 1994 _________________________________________________________________________ Executive/ Machine Occupation Managerial Professional Service Operator Labourer _________________________________________________________________________ Race White (%) 90.2 88.6 78.7 80.6 9.5 Black (%) 6.2 6.9 17.3 14.8 15.9 _________________________________________________________________________ Source: Bureau of Labour statistics, U.S. Department of Labour Adapted From: Kossek and Lobel (1996)

Regarding the structure of the hospitality industry workforce, it consists of 36% of skilled jobs and 64% of semi-skilled or unskilled jobs (Baum, 1995). However, despite the fact that most of staff employed is unskilled, the evidence indicates that the industry is been particularly affected by a shortage of skilled employees (Choi et al, 2000). In support of this argument, Kossek and Lobel (1996) suggest that, in the next few decades, the demographic trends will create a considerable graying of the domestic workforce in countries such as the U.S., Germany and even Japan where the shortage of skilled employees is projected to be more severe. But, are there viable solutions to deal with this shortage? The answer seems to be affirmative. According to Kossek and Lobel (1996), three main options exist to overcome the labour shortages in the developed world. Firstly, relaxing the immigration policies in order to allow skilled and educated immigrants to enter in key sectors of the economy. Secondly, developing an effective Equal Employment Opportunity (EEO) legislation that takes advantage of large segments of the population with important skills and abilities. Thirdly, in the case of the U.S., assimilating the domestic labour market into a supranational labour market like the E.U. did.

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According to Choi et al (2000), only skilled and educated workers are welcomed in the world labour markets and become targets of labour immigration by the hospitality industry. In fact, it is suggested that: recruiting those skilled but unemployed workers in one part of the world would provide a solution for skilled labour shortage in the other part of the world (Choi et al, 2000: p4). In summary, the demographic changes experienced in the last decades have been identified as the main causes of labour shortage in some geographic regions (developed world) and in particular economic sectors (skilled jobs within the hospitality industry). These factors are also encouraging the international migration of skilled employees from peripheral areas (developing countries) to core areas (developed countries) generating unpredictable consequences for importers and exporters of workforce.

1.3.4. Migration of the workforce (i) Causes The increasing migration of the workforce around the world due to a complex process, as mentioned earlier in this chapter, is affecting hospitality industry on a scale previously unknown. Interestingly, this migration occurs not only at industry level but also at geographic level. Supporting the first statement, Choi et al (2000) claim that the migration to and from the hospitality industry is caused by push and pull factors. Push factors include poor image and conditions, and long and unsociable hours that cause, in turn, a continuous brain drain towards other economic sectors. Among the pull factors are mentioned flexible hours and career progression, particularly for the increasing labour market of women and minorities. However, most of these opportunities are restricted to unskilled and semiskilled jobs (Powell, 1999; HTF, 1999; Choi et al, 2000; Baum, 1995). The geographic migration of workforce also responds to external factors including personal motivations, social conditions and politic decisions. Baum (1995) suggests that migration of labour force to new locations is caused by globalisation of markets and business structures, which, subsequently, not only remove the barriers to trade and labour
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mobility but also build truly global labour markets. Similarly, Choi et al (2000) argue that while some individuals are pushed by personal motivations, others move to new destinations seeking better-paying jobs and searching for better lives. It also should be mentioned that education and training are often the keys used by skilled and educated employees to move abroad. Ironically, these skilled and educated immigrants often remain unemployed in developing countries despite, or because of, their high level of education. Baum (1995) and Moran, Harris and Stripp (1993) support this argument stating that millions of people have moved to the U.S. and Canada, both legally and illegally, as a consequence of poverty and unemployment in their countries, and shortage of employees with some specific skills in this part of the world. With reference to the European hospitality industry, Baum (1995) notes that the annual seasonality of the hospitality services generates high levels of fluctuations in job offers, which in turn stimulates workforce mobility. (ii) Facts In 1985, immigrants represented 7% of the total U.S. labour force. However, recent studies indicate that they are expected to represent 22% while ethnic minorities are projected to be 40% of the new employees in next years (see Table No 1.6) (Christensen-Hughes, 1992; Choi et al 2000). In the same way, the U.S. Census Bureau revealed that in 1990 not only white majority fell to the lowest level (80.3%) but also Asian population grew 9 times faster than the white population since 1980 (Moran et al, 1993).

Table No 1.6 - New workers entering the work force (U.S.) - 1985 / 2000 _________________________________________________________________________ U.S. workers Labour force (%) 1985 Net new workers 19852000 (%) _________________________________________________________________________ Native white men 47 15 Native white women 36 42 Native non-white men 5 7 Native non-white women 5 13 Immigrant men 4 13 Immigrant women 3 9 _________________________________________________________________________ Source: Hudson Institute Adapted From: Choi et al (2000)
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The scenario in other regions of the world seems to maintain similar patterns. For instance, by year 2001 it was expected that about 15% of the total Canadian population would be immigrants. The same phenomenon occurs in the U.K., where non-white population reach 4.9% (see Table No 1.7). Belgium, Switzerland, France, Luxembourg and Monaco, among other European countries are been affected by the same trend (Moran et al, 1993; H.T.F., 1999; Baum, 1995).

Table No 1.7 - Percentage of employment by ethnicity in the hospitality industry (U.K.) - 1998 _________________________________________________________________________ White % Non-white % _________________________________________________________________________ Total U.K. work force 95.1 4.9 Hospitality work force 89.2 10.8 Managers and proprietors 92.5 7.5 Hotel & accommodation managers 100.0 0.0 Restaurant and catering managers 84.2 15.9 Publicans, club stewards, etc 97.7 2.3 Chefs / cooks 87.5 12.5 Waiters, waitresses 92.3 7.8 Bar staff 98.1 1.9 Housekeepers (non-domestic) 95.6 4.4 Hotel porters 92.3 7.7 Kitchen porters 91.2 8.8 Catering assistants 90.5 9.5 _________________________________________________________________________ Source: Labour Force Survey (1998) Adapted From: H.T.F. report (1999)

(iii) Consequences Positive and negative effects are attributable to the international migration in the hospitality industry. On the one hand, Choi et al (2000) claim that the appointment of skilled and educated immigrants seems to have a great economic impact on the host countries. Indeed, a study carried out by Sorensen in the U.S. (1992) concluded that if highly skilled and educated immigrants are selected in a preferential immigration process, they can not only add value to the host economy creating new job opportunities, but relieve unemployment and under-employment, be a source of foreign exchange and, in general, provide material welfare by increasing per capita national income.

14

On the other hand, negative consequences associated to the migration process include legal matters, difficulties experienced by immigrants to incorporate into the new culture and the economic impact affecting the home countries. In relation to this point, Choi et al (2000) mention that each year the income transferred in human capital from the Third World countries to the developed world represents billions of dollars, generating great benefits for the importing countries and enormous losses for the exporters. Additionally, it is expected that the advanced IT will support and accelerate dramatically the international migration in the near future. IT will facilitate an effective and efficient global contact between the organisations (supply) and individuals (demand) (Powell, 1999; Choi et al, 2000).

1.4.

Conclusions

The importance of the hospitality industry in the global economy and the fast changes experienced by the international labour markets are a reality that cannot be ignored. Equally, due to the central role that immigration has played supplying the developed worlds hospitality labour market during the last decades, it could be expected that this trend continues in the near future. Though, the increasing mobility of this educated workforce from peripheral regions to core areas of the world is also creating an inevitable interaction of cultures. As a result, a number of enquiries emerge from this scene: what will the cultural effects of this process be on host and home countries, in general, and on the hospitality industry, in particular? What will the impact be in workplaces? And how have the employers responded to this multiculturalism of the labour force? The responses to these enquiries seem to be complex. However, given this context of internationalisation, the discussion will attempt to explore these enquiries in the next Chapters. They will examine the influence of culture at national, industry and organisational level; analyse the approaches used by employers to deal with this cultural diversity and focus on understanding how these elements interact and affect the selection process of graduates from diverse cultural backgrounds.
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CHAPTER No 2 The influence of the culture at diverse levels

2.1.

Introduction

Concern about the influence of culture at diverse levels of society is increasing rapidly due to globalisation. The different levels of culture affect both the organisations management style and the human resource (HR) practices of hospitality organisations. Therefore, to understand how companys management predisposition influences HR policies represents a leading theme in the internationalisation process of the industry. On the one hand, the concept of culture is reviewed at national, industry and corporate level, discussing different theories and studies regarding the extent to which these cultures influence each other. Then, the organisational management orientation is analysed as a key element influencing HR practices. Ethnocentric, polycentric and geocentric approaches are suggested as different perceptions of the same concept. Lastly, potential conflicts between host and home cultures are discussed in the light of western values. On the other hand, the concepts of Personnel Management (PM) and Human Resource Management (HRM) are analysed as two sides of the same coin. Arguments and evidence are examined in order to identify the level of sophistication adopted by the hospitality industry in its process of moving abroad.

2.2.

Concept of Culture

2.2.1. Definition Although academics have attempted to suggest a definition of culture for the last decades (Terpstra and David, 1985; Schein, 1990; Kroeber and Kluckhon, 1952; Hofstede, 1984;
16

Ajiferuke and Boddewyn, 1970), there seems to exist a lack of total consensus about the meaning of this concept. Hosftede and Pizam, two of the most important cross-cultural researchers, have their own interpretation of what culture means. On the one hand, the most quoted author, Hofstede (1984; p21), defined culture as: the collective programming of the mind that distinguishes the members of one group or category of people from another. On the other hand, Pizam, Pine, Mok and Shin (1997) state that: Culture is a social mechanism that shapes and guides peoples thoughts, values and beliefs and ultimately controls their behaviour. Culture exists at various levels of society, supranational, national and ethnic. It also could be applied to other social units such as occupational groups, corporations and even industries. (Pizam et al, 1997: p128) As mentioned previously, despite these and others attempts to define the concept of culture, a total consensus on it has not been reached yet. However, Grschl and Doherty (2000), conducting a review of the different proposed definitions of culture, argue that it is possible to identify some common elements (implicit and explicit) encompassing the concept of culture. Assuming the elements of culture as the layers of an onion, these authors suggest that the external layer consists of behaviours (explicit culture) whereas values represent the second layer (implicit culture) and basic assumptions form the core of culture.

2.2.2. National culture vs. corporate culture As quoted in the last section, culture exists at different levels of society (see Table No 2.1). Hence, understanding the interaction between national, industry and corporate cultures represents the first step to decipher how they affect the corporate management style and in turn, the HRM practices. Reviewing literature, it is possible to argue that national and organisational cultures consist of specific values and beliefs that, in turn affect behaviour. In fact, whereas the national culture is defined as those unique values or specific collective mental programming that condition behaviour of members of a given culture (Hofstede, 1991: p180), the
17

organisational culture has been described as those norms, dominant values, behavioural regularities and stable beliefs, within the organisations, that identify their uniqueness. In short, it is the way do things around here (Pizam, 1993; Mwaura, Sutton and Roberts, 1998).

Table No 2.1 - A hierarchy of cultures National cultures Industry cultures Occupational cultures

Corporate cultures Organisational structure, managerial practices, work attitudes Adapted From: Beardwell and Holden (2001)

However, according to Hofstede (1991), a difference exists between national and organisational cultures. It refers to the different roles played by values and practices in terms of their level of influence on diverse places of socialisation such as family, school and workplace (see Table No 2.2). In this process, Mwaura et al (1998) state that while employees 'temporally share the practices rather than values of the organisation (partial membership), their membership to the unique values of the nation is permanent. So, although the latter cannot be changed, the practices of the organisational culture may be in effect modified. Given these arguments and as mentioned by Pizam (1993), it is essential to question the extent to which the hospitality industry culture depends on or is influenced by national cultures. Three different approaches, convergence, divergence and, more recently, a cross-

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vergence theory, have been suggested in order to understand how national, industry and organisational cultures influence one to each other.

Table No 2.2 - The nature of cultural differences: the national, occupational and organisational levels Level Nation Occupation Practices Organisation Workplace Adapted From: Hofstede (1991) Values Place of socialisation Family School

On the one hand, the convergence school claims that as societies become more similar, organisational characteristics become more similar across nations. Hence, regardless the locations, they are free of national culture influence. So, following this argument, the hospitality organisations are influenced more by other factors such as market segment, geographical diversification, size and technological development than by national culture (Pizam et al, 1997; Pizam, 1993; Mwaura et al, 1998; Brewster and Tyson, 1991). On the contrary, the divergence school argues that societies have deep-rooted cultural differences, which do not change rapidly over time. Therefore, organizations will always be bound by the national culture, affecting management styles and practices (Pizam, 1993; Mwaura et al, 1998; Brewster and Tyson, 1991). Finally, the cross-vergence approach suggests that work ideology and national culture interact to create a new and unique value system (Mwaura et al, 1998).

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2.2.3. Previous studies Few studies have been conducted regarding the influence of national cultures on organisations. As mentioned by Grschl and Doherty (2000: p16), it might be a consequence of the thin and unclear borderlines between the different layers of culture. The findings of Pizam et als study (1997), regarding the effect of national and industry culture on managerial behaviour, indicates that industry culture has a lesser influence on managerial behaviour than national culture, supporting Hofstedes statement that values have an effect on attitudes, which in turn affect behaviour. Another study conducted by Mwaura et al (1998) analysing the extent to which the Chinese culture influences the corporate culture of international (western) hotel companies based in China, seems to support this argument. The findings suggest that the higher the differences between the host culture (national) and the home culture (organisational), the greater the possibility of emerging conflicts. In other words, it might be pointed out that some kind of resistance of home employees may arise against the adoption of a foreign management style, as a consequence of national culture influence. Similarly, Brewster and Tyson (1991) claim that corporate culture and, in turn, HR practices are strongly influenced by national culture. These authors argue that national culture affects not only staffs attitudes and values but also policies, relationships between people, decision-making processes and structure of organisations. Concluding, it might be suggested that the national and ethnic cultures influence strongly peoples behaviour. Hence, when the corporate culture implements foreign managerial practices, which are incompatible with the national culture, the effect may be a failure. The consequences resulting from these cultural differences might be numerous and significant (Pizam et al., 1997; Hofstede, 1984; Grschl and Doherty, 2000). So, the impact of the national cultures on the hospitality industry needs to be widely discussed and researched as it represents a key element of success in an increasingly competitive industry that is moving rapidly to a global scale within a multicultural environment.
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2.3.

Concept of centricity

The concept of centricity has been described as an approach to international management style of organisations and a key element of success within the industry. So, three different types have been suggested: ethnocentric (home country-oriented), polycentric (host country-oriented) and geocentric (world-oriented) (see Table No 2.3). However, the development of one or another style depends not only on the senior executives (mind set) and the process of expansion (associated to stages of internationalisation), but also on the national culture of the country of origin (Roper, Brookes, Price and Hampton, 1997).

Table No 2.3 - The concept of Centricity applied to recruitment _________________________________________________________________________ Approach Characteristics _________________________________________________________________________ Ethnocentric Recruitment based on nationality before ability Expatriates in key host-country positions Polycentric Geocentric Recruitment in host country for host country Minimal or no use of expatriates

Recruitment based on ability rather than nationality Recruits drawn from a range of different countries to core positions _________________________________________________________________________ Adapted From: Roper et al. (1997)

Particularly, the adoption of one these management styles in relation to the HR practices is strongly associated to specific circumstances. As mentioned by Roper et al (1997), the ethnocentric approach (characterised by the use of expatriates) can be suitable mainly in those cases requiring a high level of standardisation or when there is a lack of skilled employees in the local labour market. By comparison, a polycentric approach develops the potential of the local staff (core position, autonomy) but with opportunities of progression limited at home level. Finally, the geocentric approach gives more importance to employees capabilities rather than their nationality. It also attempts to integrate multicultural teams, design corporate strategies across nations and achieve global goals whereas satisfy the units needs. Though, adopting this ideal approach is difficult, if not impossible, to put into practice. It demands

21

a great effort and investment on developing sophisticated policies and procedures, and training cross-cultural management teams (Roper et al, 1997; Hofstede, 1991). So, if the geocentric approach to HR practices seems to integrate the advantages of the ethnocentric and polycentric approaches (Roper et al, 1997), it should be questioned which approach has been adopted by the hospitality industry in its process of internationalisation? And, if the geocentric approach is in fact the best choice, has the hospitality industry the capacity to design, develop and implement such demanding strategy in a global scenario? (Doherty, 1998) What is more, if there is little evidence of national convergence over time (Hofstede, 1991: p238), should it be developed tailoring each different culture? Unfortunately, little research has been conducted in this direction (Roper et al, 1997; Doherty, 1998). However, those carried out focusing on the HR strategies developed by multinational hotel companies reveal interesting findings. An interdisciplinary project conducted in Oxford Brookes University (Doherty, 1998) including two international hotel groups based in the same country, concluded that groups researched were relatively successful in implementing different HR strategies from two dissimilar management styles. On the one hand, Group B, with a single continent scope and a weak corporate culture, designed a HR strategy associated to both PM practices and a polycentric management style. On the other hand, Group A, with a strong company culture, appears to have developed a more sophisticated HR approach (clear selection scheme and a big HR team at global, regional and national level) and an on-the-surface geocentric management style. But, as mentioned by this author, Group A lost in Asia in its process of implementing Anglo-centric values among staff (Doherty, 1998: p128). This fact seems to reinforce the argument that international hotel groups tend to maintain their ethnocentric management style when moving abroad by replicating home practices. To reiterate, the encounter of host and home cultures may create difficulties in the work place. In other words, cultural differences may lead to disadvantages for host employees in ethnocentric international companies, where the adoption of a foreign management style may also generate some kind of resistance.
22

It might therefore be concluded that the management style adopted by organisations in the hospitality industry is strongly influenced by national cultures. Hence, the fact that western companies own most of the large international hotel chains and implement western-values oriented management styles when moving abroad might create certain cultural resistance. As explained by Brewster and Tyson (1991), the western values, mainly characterised by high individualism and low power distance and uncertainty avoidance among the members (Hofstede, 1984), have gained great influence because of colonial power, trade and multinational corporations. Though, there is an increasing concern that other cultures might be not accepting or sharing these values and styles (Doherty, 1998). Consequently, the evidence seems to suggest that the hospitality industry has supported the process of exporting western-values by implementing an ethnocentric management style when expanding overseas. Hence, this strategy might need to be reviewed if the industry is to be successful in other areas of the world, which are culturally different.

2.4.

Personnel Management vs. Human Resource Management

The concepts of PM and HRM could be described as two sides of the same coin. While PM has been always associated to old practices, HRM represents a modern and fashionable trend to the process of managing people. But, the extent to which PM has moved towards HRM as well as the relation between PM / HRM and organisations ownership / size (and in turn, management style) is a great debate. Diverse academics (Worsfold, 1999; McGunnigle and Jameson, 2000; Kelliher and Johnson, 1997) have carried out research in the interest of investigating how PM or HRM are conducted in the hospitality industry. Two different studies (McGunnigle and Jameson, 2000; Kelliher and Johnson, 1997) regarding this phenomenon in the UK hotel industry suggest similar results. They found that despite the U.K. hotel industry is taking a more sophisticated approach to personnel management, there was little evidence of a qualitative shift to innovative HR practices (HRM philosophy). Interestingly, these studies also suggest that foreign-owned hotels have a higher predisposition to adopt this movement in
23

comparison to small / independent organisations. However, it seems to be a consequence of general trends and market needs rather than a deliberate strategy. Supporting these arguments, Kelliher and Johnsons study (1997) suggests that ownership of the hotel organisations represents an important factor regarding the adoption of sophisticated HR practices. Multinational foreign-owned firms tend to take a more enlightened approach to personnel management than others. In fact, Worsfold (1999) claims that there is a strong correlation between size and the presence of HRM practices in the industry. But, if there is some kind of movement towards HRM practices, what are its main features and aims? According to Kelliher and Johnson (1997), the HRM approach aims to be more proactive and less functional, playing a key role in supporting the total strategy of the company. Additionally, the HRM approach seeks to integrate HR policies with business strategy, develop employees commitment and initiative, and encourage a shift to individualism in terms of managing staff relationships. HRM is also linked to the implementation of sophisticated recruitment and selection methods, where skills and abilities are as important as a proactive attitude and consistent personality. However, if the HRM approach aims to develop more sophisticated HR practices, are they being effective in facing the increasing multiculturalism of the workforce? And particularly, are the selection methods used by the hospitality industry culturally sensitive? In this process, a study carried out by Roper, Doherty, Brookes and Hampton (2001), found that despite the attempt to implement a HRM approach, the selection methods adopted by international hotel groups may not be necessarily culturally sensitivity. These authors claim that there is still a dominance of Anglo-Saxon culture on selection processes, which have been designed (by Anglo-Saxons) taking into account dimensions based on western values. This issue, which will be discussed in detail in Chapter five of this study, need to be brought to the forefront of the discussion as the increasing multiculturalism of the hospitality industry workforce is a fact that cannot be ignored.

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2.5.

Conclusions

National culture influences strongly corporate culture and, in turn, management style. Companies adopting an ethnocentric approach are more reluctant to incorporate other perceptions of the same reality into their corporate culture. This effect becomes more complex when the level of cultural exposure of organisations gets higher. In the same way, PM and HRM seems to be linked to this level of expansion as more complex organisations demand more sophisticated HR practices. Similarly, hospitality organisations adopting an ethnocentric approach might be replicating abroad home practices in terms of selection processes. Consequently, candidates from diverse cultural backgrounds joining the hospitality industry might be being selected according to alien criteria as the selection techniques have been designed based on home (western) values and beliefs. The result might be a discriminatory process of staffing that does not take into consideration the cultural differences. In short, an accurate conclusion about the influence of culture on HR practices, might be summarised in the following example: It is difficult to see how people from other countries [] are to break into the track of becoming a GM because so much is stacked against them. Although the development avenues appear to be open the world, the criteria set for success derive from groups vision of what is international, already demonstrated to be culture-bound, and based on characteristics of a groups of male western managers. These criteria have an indirect discriminatory effect on national groups Roper et al (2001: pp23-24)

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CHAPTER No 3 Managing cultural diversity

3.1.

Introduction

As mentioned previously, new labour and economic contexts have led the hospitality industry to face an increasingly culturally diverse work force. However, the extent to which this heterogeneity is affecting organisations at management and operative level is not clear yet. So, analysing preliminary evidence and then discussing different approaches to this phenomenon represent the aim of this chapter. First, positive and negative effects of a culturally diverse work force are analysed from different perspectives. Disparate arguments and evidence are discussed in terms of the way they influence the performance of organisations. Second, discrimination in the industry is explored as a reality that cannot be ignored. The unbalanced participation of the minority groups in the work force at management and operative levels and the use of potentially unfair selection methods are suggested as part of the problem. Third, Managing Diversity (MD) approach and Equal Opportunities Policy (EOP) are described as two organisational responses to this phenomenon while organisational changes are analysed in the light of managing cultural diversity.

3.2.

Positive or negative effects?

Whether the cultural diversity of the workforce has a positive or negative effect on the hospitality industry is currently a great debate. On the one hand, some academics (Woods and Sciarini, 1995; Thomas and Ely, 1996; Baum, 1995) claim that multiculturalism in the workforce produces a positive effect on the industry. These benefits include an increase of organisational effectiveness and productivity, access to new niche markets, effective team building, enhancement of customer service quality, reduction of costs and improvement of

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recruiting efforts. This analysis is based on the assumption that each individual can contribute in a different way to achieve organisational goals. On the other hand, Gmez-Meja and Palichs study (1997) analyzing the potential impact of cultural diversity on organisations performance suggests a different conclusion. This research carried out among 228 large international firms over a ten-year period (1985-94) found that cultural diversity of the workforce has no effect on corporate performance. However, as mentioned by these authors, the positive side of these findings is that cultural diversity has no negative effects either. Finally, a third group of researchers (Grschl and Doherty, 1999) claim that the issue of diversity is still too young to demand proof of its effectiveness and efficiency. It is due to both the unclear relationships between cause and effect and the poor development of mechanisms to measure the diversity of the workforce. Unfortunately, few studies have been conducted analysing the impact of cultural diversity on the workplace. A study undertaken by Christensen-Hughes (1992) in Torontos hotels, found that cultural diversity of the workforce has simultaneously positive and negative effects on the workplace. The positive effects mentioned by the HR managers researched point out that the work environment is enriched by multiple cultures, the hotels are better able to meet the needs of increasingly cross-cultural customers and new markets niches are attracted to culturally diverse hotels. The negative effects relate to concentration of ethnic groups in some hotel departments and communication problems associated to the variety of languages and cultures. As recognised by the respondents, permitting this concentration affects not only the employees performance but also hotels effectiveness in the long term, which in turn, creates problems of motivation, image, co-ordination, comfort and communication among staff. In the same way, Gmez-Meja and Palich (1997), analysing the incidence of cultural heterogeneity on the nature and effectiveness of operational HR programmes, suggest a positive correlation between these two elements. These authors argue that given the

27

assumption that HR programmes must be adapted to different cultural contexts, the increasing heterogeneity push organisations to develop more sophisticated practices. However, as the organisations expand more and more to new and different locations, this process of tailoring becomes more and more complex to maintain. The costs associated to this differentiation of HR programmes (development, implementation, co-ordination, monitoring and periodic adjustment) and the difficulty to use reliable hard data (information) across different cultural conditions makes it almost impossible to develop theses practices indefinitely. As mentioned by these authors: despite the best intentions, cultural adaptation of HR programmes is subject to many (often unknown) pitfalls, and the associated risks are likely to increase as cultural diversification rises (Gmez-Meja and Palich, 1997: p314) Thus, there is no doubt that the workforce diversity is a factor, which has an effect on organizations. Though, the extent to which this phenomenon affects the industry as a whole is not clear yet, therefore it needs to be analysed in order to deal effectively with the potential consequences on corporate culture, performance and profitability.

3.3.

Discrimination in the hospitality industry

The outcomes of the cultural workforce diversity can also be discussed in terms of the approach given by the employers to this fact and particularly, the extent to which the minority groups have been affected in this process. According to HCIMA (Boella, 2000), common barriers for ethnic minorities are evident in the hospitality industry. Racial stereotyping, unsophisticated selection methods and underrepresentation in skilled and management posts are pointed out as major obstacles faced by minority groups within the industry. In support of these arguments, different academics have extensively documented this history of discrimination (Torrington and Hall, 2000; Lucas, 1995). The increasing
28

overrepresentation of ethnic minority groups in those industries with high levels of unskilled jobs is evident. In the U.K., for example, about 29% of male workers belonging to minority groups are employed in hotel, catering, repairs and distribution sectors (traditionally unskilled industries) compared with 17% of white males. What is more, the Department for Education and Employment (1995) reports that some minorities groups are paid 10% on average less than white workers. In other words, this evidence suggests that minorities have been concentrated in unskilled sectors and paid lower salaries in comparison to white employees. Similarly, between 1987 and 1989, the Commission of Racial Equality (CRE) (1991) undertook an extensive formal investigation into the recruitment and selection processes of the 20 largest hotel groups based in the U.K. This study showed that despite the fact that most groups had EOP, no company kept records of the ethnic origins of staff or job applicants. Additionally, whereas no ethnic minorities general managers were found in this study, 70% of male and 76% of female of all ethnic minority employees were employed in unskilled posts (cleaners, waiters and porters) in comparison with 43% of all white males and 55% of all white females. Finally, even though CREs recommendations for action at group and unit level, no important progress seems to have been achieved afterwards. Other studies have also documented discriminatory practices in the selection methods. Noon (1993), in an interesting study, compared the level of response given to two unreal candidates by 100 different large employers offering graduates training programmes. The researcher sent speculative letters including identical information about candidates with the only difference of their ethnic origin (one white candidate and other non-white candidate). Although there was no difference in reply rate to each candidate, the quality of it in terms of information and encouragement given was always in favour of the white candidate (Torrington and Hall, 2000), As pointed out by the HCIMA (Boella, 2000), the HR policies adopted by the industry need to include a review of selection and other procedures in order to identify and remove direct and indirect discrimination. It also needs to develop the potential of ethnic minority employees being able to work in management posts. In support of these changes, a new legal framework and more action at company level need to be developed to protect effectively disadvantaged minority groups. However, according to Torrington and Hall
29

(2000), neither legislation nor the industry is moving in that direction, limiting the possibility to reduce the level of discrimination practised by the industry against these disadvantaged groups. The hospitality industry also needs to realise that global economic and demographic changes and the increasing mobility of a skilled and culturally diverse workforce are greater than ever. These employees are joining the industry with their cultural baggage, demanding new approaches and actions from the industry at different levels. Hence, successfully managing cultural diversity represents a key element of the business and a great challenge to the industry in the XXI century.

3.4.

Different approaches to cultural diversity

The discussion about ensuring a fair treatment to ethnic minorities faces two conceptual models of organisational response. Whereas EOP seeks to make use of legislation to protect disadvantaged minority groups, the MD approach focuses on the potential of individuals rather than groups (see Table No 3.1) (Kandola and Fullerton, 1994 Torrington, Hall and Taylor, 2002).

Table No 3.1 - Equal Opportunities vs. Managing Diversity ________________________________________________________________________ Aspect Equal opportunities Managing Diversity ________________________________________________________________________ Purpose *Reduce discrimination *Utilise employee potential to maximum advantage Case argued *Moral and ethical *Business case improve profitability Responsibility *Personnel department *All managers Focus on *Groups and recruitment *Individuals and managing Perspective *Dealing with different needs of *Integrated different groups Benefits for *Opportunities improved for *Opportunities improved for all employees disadvantaged groups, primarily employees through setting targets Remedies *Changing systems and practices *Changing the culture _________________________________________________________________ Adapted From: Torrington and Hall (2000)

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On the one hand, the Equal opportunities (EO) approach was born as a result of the Civil Rights evolution and the evident discriminatory practices on diverse groups of the society (Kossek and Lobel, 1996). This approach focuses on the ideal of reducing discrimination as a moral and ethical obligation providing the targeted groups a fair playing field or a starting line (Torrington et al, 2002; Kandola and Fullerton, 1994). However, evidence suggests that this practice has not been as successful as believed. Kossek and Lobel (1996) claim that Affirmative Action (AA) not only had a low effect on the economic level of the black people in the U.S. but also has created negative connotations such as stigmatisation of the minorities. It is mainly due to the use of quotas in favour of minorities but against other groups. Kandola and Fullerton (1994) go so far as to say that AA has helped neither organisations nor individuals. In the same way, citing Price (1994), Lucas (1995) argues that although EOP are more likely to be present in large hotel and restaurants chains, they often meet neither the requirements nor the spirit of the legislation. EOP is seen as too simplistic, focusing on symptoms rather than causes (Torrington et al, 2002). On the other hand, the MD approach emphasises the importance of workforce differences in terms of its potential contribution to the organisation. Kandola and Fullerton (1994: p47) suggest that MD symbolises the next step to the process of approaching cultural diversity. According to these authors, diversity consists of visible and non-visible differences which include factors such as sex, age, background, race, disability, personality and work style. In essence, this approach aims to create a heterogeneous workforce where each individual feels valued and his talents are recognised and fully utilised, and where any group neither has an special disadvantage / advantage nor is excluded (Woods and Sciarini, 1995; Torrington et al, 2002; Kandola and Fullerton, 1994) Nevertheless, Torrington et al (2002) identifies some potential limitations of the MD approach. MD means managing rather than expanding diversity and it concentrates only on the phenomenon at corporate level rather than at industry level. Finally, this approach focuses on business (profitable jobs) generating potential exclusion of cross-cultural employees.

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Then, which of these approaches offers the best perspective? Although the literature seems to suggest that MD approach is superior to EOP, the best answer might include a combination of both of them. MD and EOP should be viewed as complementary and supportive rather than alternative practices (Torrington and Hall, 2000; Grschl and Doherty, 1999). According to Torrington and Hall (2000: p377), it is possible to design a model which can incorporate difference and diversity in its individualised and collective sense facilitating the link between organisational strategy and labour markets. Similarly, Grschl and Doherty (1999) claim that whereas EOP can be useful in recruitment process, MD approach can be used in ongoing management.

3.5.

A new challenge for the hospitality industry

As mentioned previously, the cultural diversity of the workforce is a reality. However, how should the hospitality industry deal with it? What is the ideal organisational environment to develop an effective approach to manage cultural diversity? What are the skills required to the new managers coming into the industry? Disparate suggestions and proposals have been put forward by academics to face these issues despite the discouraging evidence (Thomas and Ely, 1996; Kandola and Fullerton, 1994; Gmez-Meja and Palich, 1997). Thomas and Ely (1996) claim that this shift towards managing cultural diversity is only possible if there is a change in the attitudes and behaviours of an organisations leadership. This change needs to recognise that diversity embodies different perspectives and approaches to work, learning opportunities and challenges for an organisation. Similarly, Kandola and Fullerton (1994) argue that managing successfully cultural diversity is the result of developing a clear mission and values, objective and fair procedures, and individual focus and empowerment culture, among other factors. Nevertheless, the evidence suggests that some sectors of the industry have not yet taken diversity seriously (Woods and Sciarini, 1995). In fact, a study conducted by Grschl and Doherty (1999: p266) found poor practices and development of a cultural diversity approach among the hotels researched. They seem to implement a reactive diversification

32

strategy that, as mentioned by these authors, does not value the diversity of a workforce to the extent that theorists do. In the same process, cultural diversity also demands new abilities from those new crossborder managers coming into the hospitality industry. Fish (1999) claims that these critical skills should include the ability to understand the interaction of a multicultural workforce in and across different business settings, the capability to deal with different employees needs in different locations and the talent to move business from mono-cultural (ethnocentric) management styles towards a more sophisticated geocentric approach. These new skills and abilities are essential if these new managers are to be successful outside of the traditional frames of reference Supporting this argument, a study of the HCIMA and the University of Surrey identifies language skills, people management, communication skills and managing cultural differences as key requirements for those managers coming into the industry. They will allow the hospitality industry to respond to fast-changing needs and expectations of customers while integrating the values, norms and beliefs of a multi-ethnic workforce, serving multicultural guests under multinational ownership (Battersby, 1996: p111).

3.6.

Conclusions

The cultural diversity of the workforce has positive and negative effects on organisations and the hospitality industry. The organisational response to this new challenge has been the implementation of the EOP and MD as two different approaches to the same reality. However, despite they embody innovative perspectives, they have not been able to the remove direct and indirect discrimination against the disadvantaged groups. A new legal framework and more action at company level are suggested as two key tools to face this issue Academics and practitioners need to be conscious that mismanagement of a multicultural, multinational and ethnical diverse environment in the hospitality industry has the potential to be very destructive. Leading to inevitable tensions and a situation
33

where all management decisions are assessed and questioned against different cultural values (Baum, 1995: p182).

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CHAPTER No 4 Integrating the elements

To this point, the concepts of HRM / PM and MD / EOP have been discussed in terms of the organisational response to both corporate growth and cultural diversity. So, according to the evidence provided, it might be possible to argue that large hospitality companies moving abroad, tend to evolve from an ethnocentric approach, characterised by basic HR policies and discriminatory practices, towards a geocentric mind-set, including sophisticated HR practices and the development of an individualist approach to managing cultural diversity. Given this context, a model is suggested in an attempt to integrate and understand the interaction of all these elements. This model aims to explore the evolution of the hospitality organisations in their geographic and cultural process of expansion. Two dimensions: the level of geographic expansion and the level of cultural exposure have been selected to build this model as they embody accurately the process of internationalisation (see Figure No 4.1). The first dimension, the level of expansion, aims to identify the international corporate scope. It is possible establishing the percentage of foreign units / turnover of each organisation. The higher the level of international expansion the higher the necessity to develop more sophisticated HR practices as the size of organisation and managerial complexity maintain a positive relation. The second dimension, the cultural exposure, symbolises the level of contact of the corporate culture with other cultures / values (national cultures). This indicator is obtained from comparing the number of countries where companys units are located and the total number of countries in the world. This indicator assumes the premise of one country, one culture. In the same way, four zones have been considered in order to describe the level of organisational evolution. The first zone is associated to an early stage of international
35

expansion where a mono-cultural structure is predominant. This zone is characterised by an ethnocentric approach, basic HR polices and discriminatory practices. As discussed previously, it could be attributable to both a weak corporate culture and the fact that a mono-cultural workforce (dominant group) does not demand complex HR practices.

Figure No 4.1 Model: Evolution of Corporate HR Practices within a Multicultural Context

Low (National scope) Zone 1

Ethnocentric Basic HR policy Discriminatory practices

Zone 2 Level of Cultural Exposure High (Multi-Culture) Low (Mono-culture)

Ethnocentric Developing PM policy Potentially discriminatory practices

Zone 3
Polycentric / Geocentric Sophisticated PM policy Formal EO policy

Zone 4
Geocentric / Polycentric HRM policy MD approach

High (Global scope) Level of Expansion

The second zone represents an increase of the cultural and geographic expansion. However, despite it develops an incipient PM policy attempting to reduce potentially discriminatory practices, this expansion maintains an ethnocentric approach in terms of management style.
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The third zone embodies a higher level of cultural integration associated to a regional and even global scope. This stage includes a sophisticated PM policy and the development of a legal approach (EOP) to managing cultural diversity. The fourth zone of this model suggests that large hospitality organisations achieve a superior level of cultural interaction at global scale. This process simultaneously leads them to develop sophisticated HR practices (moving towards a HRM policy) while seeking to integrate their multicultural workforce by implementing a MD approach. This model will be applied to those organisations participating in this research and discussed later in this study (see Section No 8.2) in order to analyse both its functionality and limitations.

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CHAPTER No 5 Selecting within a cultural diversity

5.1.

Introduction

The purpose of the selection process is to select the right people to the right position. However, this is only possible if the selection methods offer high validity (as predictor of future job performance) and total cultural sensitivity (selecting the right candidate regardless not only age and gender but also ethnic origin and nationality). Particularly, the design of culturally fair selection processes must aim to develop techniques free of adverse effects on minority groups. As multiculturalism of workforce increases, the development of effective and culturally sensitive selection methods becomes more than ever valuable and important for the hospitality industry. Hence, this chapter aims to explore the evidence and discuss the arguments related to this issue. First, the selection methods used by the hospitality industry are analysed in terms of their variety, level of validity and cultural sensitivity. Equally, some practices and procedures are suggested in the interest of reducing potential bias while emphasising selection criteria and job description as starting points and key elements of the selection process. Then, the candidates reactions are explored as a function of the cultural differences and the elements influencing recruiter and candidates perceptions are discussed in the light of recent studies. Finally, overall reflections are mentioned remarking that the development of culturally sensitive selection methods represents a great challenge for the hospitality industry within an increasing multicultural context.

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5.2.

Selection methods used by the hospitality industry

Given the increase of cultural diversity of the workforce, to select the right people, to the right position is becoming a key factor of success within the hospitality industry. Traditional and, more recently, an assortment of sophisticated selection methods have been developed to deal with this issue (see Appendix No 1). However, studies conducted in the industry suggest that it has not implemented a wide range of techniques as far as academics, candidates and practitioners believe. Among the selection methods used by the industry to select staff, the traditional approaches seem to maintain their predominance over more sophisticated techniques. In fact, according to the CREs investigation (1991) and Kelliher and Johnsons study (1997) carried out in the U.K. hospitality industry, interviewing continues to be the preferred selection method (see Table No 5.1). Particularly, the research findings indicate the industry tends to use interviewing as unique selection method at operative level, even despite the fact it is considered one of the least valid techniques (Dickinson and Ineson, 1993). In relation to the selection of skilled employees (management trainees / graduates), these studies report an increase in the use of psychological tests and Assessment Centres (ACs).

Table No 5.1 - Selection methods used by foreign-owned hotel groups based in the U.K. - Postal survey _________________________________________________________________________ Operative (%) Management (%) _________________________________________________________________________ Interview 97 97 Practical tests 36 21 Assessment Centres 9 22 Psychological tests 7 40 Others 1 1 _________________________________________________________________________ Adapted From: Kelliher and Johnson (1997)

Other studies undertaken in the industry regarding this issue confirm the previous findings. An extensive survey in the U.S. restaurant sector conducted by MacHatton, Van Dyke and

39

Steiner (1997) indicates that reference checks of prior employers, structured and unstructured interviews are the preferred methods to select management staff. Conversely, some of the most well-know methods such as biodata, psychometric and honest tests reach the lowest ratings (see Table No 5.2).

Table No 5.2 - Managerial selection in the U.S. restaurant sector - Survey _________________________________________________________________________ Frequency Effectiveness Selection procedure of use (%) rating ________________________________________________________________________ Reference checks 61.6 6.04 Structured interviews 57.1 6.61 Unstructured interviews 30.4 6.00 Police records 22.3 7.36 Credit check 20.5 7.39 _________________________________________________________________________ Adapted From: MacHatton, Van Dyke and Steiner (1997)

This evidence corroborates Berger and Gheis study (1995: p29) indicating that tests are not commonly used by hospitality operations and the Dickinson and Inesons statement (1993: p17) that biodata has been employed [mainly] as a screening device to distinguish between potential long and short-stay staff for a new hotel. In fact, recent studies indicate that testing and biodata are much more popular in the U.K. than in the U.S. (MacHatton et al, 1997) In terms of effectiveness (as predictor of future job performance), this study also found that structured and unstructured interviews, and reference checks achieved the highest ratings. Again, Psychometric and honesty tests reach low rates (MacHatton et al, 1997). Other study conducted by Waryszak and Bauer (1993) regarding the selection techniques used by accommodation establishments in Australia found that application forms, standard interviews, and references from previous employers are the most frequently used selection methods. To highlight, the findings of these two studies indicate that there is a positive correlation between size of the establishment and the use of sophisticated selection methods. In other

40

words: the larger the establishment, the higher the probability of using this kind of techniques. Comparing restaurants chains and independent restaurants, the usage of more sophisticated selection methods by the first group is also attributable to the presence of corporate HR offices and larger budgets in this area (Waryszak and Bauer, 1993; MacHatton et al., 1997). Finally, the Paraskevas study (2000) conducted in the Greek hotel sector reports that behavioural and situational interviews, reference checking and, surprisingly, biodata are the preferred selection techniques used by recruiters in this country. According to this study, interviews (behavioural and situational), biodata and ACs offer the highest records of validity and usefulness. Other techniques used by practitioners within the industry include telephone screening and work sampling / portfolios. Non-traditional approaches to selection process comprise graphology, astrology, physiognomy, phrenology, palmistry and body language. In summary, these studies seem to confirm the arguments discussed in the chapter number two and three. Although the movement of the hospitality industry, particularly large organisations, towards more sophisticated HR practices, the variety of methods used to select staff continues being limited and with a debatable level of validity. More sophisticated techniques are starting to be used at management level despite the fact that, as it will be discussed later in this chapter, validity and cultural sensitivity of some of them are also questionable.

5.3.

Fair or unfair selection methods?

A fair selection process needs to include an assortment of methods providing high validity and cultural sensitivity. However, none of them can offer either total validity as predictor of future job performance or complete cultural sensitivity (see Table No 5.3). This fact plays more than ever against ethnic minority groups, as selection methods used by the hospitality industry have not demonstrated completely to be culturally fair. As mentioned

41

by Kossek and Lobel (1996), candidates from diverse cultural backgrounds face barriers to favourable assessment in each stage of the selection process.

Table No 5.3 - The predictive accuracy of selection methods

1.0

Perfect prediction (1.0)

Assessment Centres promotion (0.68) Structured interviews (0.62) Work sample (0.55) Ability tests (0.54) Assessment Centres performance (0.41) Biodata (0.40) Personality tests (0.38) Unstructured interviews (0.31) References (0.13) Astrology (0.00), Graphology (0.00) Source: Anderson and Shackleton (1993) Adapted From: Beardwell and Holden (2001)

0.5

0.0

Culture differences, as discussed in chapter number two, can influence the performance and, in turn, the assessment of candidates from ethnic minority groups participating in selection processes. In other words, the recruiter and candidates behaviours are a function of cultural differences. Hence, disregarding cultural differences in the selection process of individuals from diverse ethnic origin may lead to potentially discriminatory practices. Unfortunately, the evidence provided by previous studies reveals that the development of selection methods culturally sensitive is not a priority for the industry yet. The findings of the CREs study (1991) exemplify this statement. This formal and extensive investigation undertaken in the U.K. hotel industry found that none of the surveyed hotel companies had evaluated potential effects of the selection criteria on ethnic minority candidates and only one checked possible bias on its psychological test.
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In particular, Cultural limitations and potential bias against disadvantaged groups are associated to the implementation and use of different selection methods such as application form, tests, interviews, assessment centres and biodata (see Appendix No 2).

5.4.

Selection criteria and job description

Potential bias of selection methods used by the hospitality industry to select candidates from diverse cultural background may be reduced through the implementation of some basic practices. In this process, different academics (Torrington and Hall, 2000; Newton and Kleiner, 1999; Emenheiser, Clay and Palakurthi, 1998) claim that the first stage to increase validity is the design of cultural-fair selection criteria, which it should be reflected clearly and explicitly in the job description. As mentioned by Newton and Kleiner (1999), a well-written and updated job description can provide the necessary information to understand what criteria are required to perform a job. Similarly, citing the Race Relations Act, Torrington and Hall (2000) claim that a fair job description should not be designed unjustifiably demanding but distinguishing between attainment and potential when considering individuals from different racial groups Emenheiser et als research findings (1998) support these arguments concluding that it is necessary to develop a systematic and disciplined approach to management selection. This needs to identify the personal attributes, attitudes, and values needed for success in the position and within the corporate culture while being fair and consistent. In fact, most managers do not fail in a position because of incompetence. Rather, they fail because they do not fit the style of job, the personality of the peer group, or the management philosophy (Emenheiser et al, 1998: p57) Other findings of this study undertaken in the U.S. restaurant sector suggest that, when dissimilar jobs are considered, the same criteria may be used while weighting differently each attributes. The level of importance allocated by recruiters to key attributes of the ideal managers, indicate that while there is no significant difference between the mean component scores, there are some significant differences in their rank ordering in terms of
43

their importance. Nevertheless, the study does not analyse the same circumstance when cultural differences between selection criteria and candidate appear. Similarly, little research has been conducted comparing criteria employed to select individuals from different cultures. A study carried out by Peppas, Peppas and Jin (1999) analysed the perception of U.S. and Chinese recruiters in relation to different job attributes. The results suggest that there are significant differences between the means of the attributes. While Chinese culture places more importance on job attributes that could directly benefit the organisation, U.S. culture places more importance on job attributes that are interpersonal in nature. In other words, Western (individualist) and Eastern (collective) cultures seem to have developed different selection criteria according to their cultural background. In short, the evidence indicates that individuals from different cultures may not use the same criteria when hiring. Hence, the implementation of a culturally fair job description may reduce bias and discrimination against candidates in terms of their ethnic origin. However, more studies are needed to track changes in importance ratings allocated to job attributes and determine if these variations are related to changes in cultural values.

5.5.

Increasing validity of the selection methods

5.5.1. Personality test In terms of validity, personality tests have demonstrated low confidence and moderate value to predict future job performance (Dakin, Nilakant and Jensen, 1994). But based on recent research that defined five basic building blocks of personality, it is suggested that personality tests can increase validity when matching with those variables significantly related to job requirements. Additionally, if personality test is to be an important selection method it should not only allocate greater weight on those job-related variables (that is rarely done in practice) but also be used as a complement of other selection methods (Torrington et al, 2002; Dakin et al., 1994; Berger and Ghei, 1995)
44

Similarly, Moran et al (1993) claim that although sometimes tests can discriminate against certain groups, testing can be a useful selection method within a multicultural work environment. As suggested by these authors, tests should focus on registering attributes that make foreign or multicultural applicants potentially valuable employees rather than limiting to evaluate employees attributes into the existing work environment.

5.5.2. Interview Interviewing continues being used by most organisations, particularly because of its social function and the fact that interviewees and interviewers still consider it as a fair method to selecting people (Fletcher, 1992). Though, some limitations associated to this technique reduce its validity as predictor of future job performance. According to the CRE and the EO Commission (Fletcher, 1992) recruiters need to set out basic principles in order to increase validity of this technique. Particularly, their recommendations point out the interviews questions should be consistent, relevant and cultural fair. Consistency relates to the use of the same kind of questions across different racial groups. Relevancy refers to the direct relation between interview questions and job-description whereas avoiding stereotypes and generalisations. Finally, interview questions should be aware of genuine culturally based needs, such as religious observance. Other main issues associated to interviewing technique relate to scoring methods and the use of panels in the process. On the one hand, an average or a sum of the score given to individual question is considered the best approach to situational interviews while in the case of behavioural interviews, predetermined dimensions should be scored based on interviewer judgement of the information (Simons, 1995). The use of this approach reduces subjectivity in decision-making and improves the validity of the result (Barclay, 2001) On the other hand, the use of panel allows saving time, sharing judgement, reducing personal bias and increasing validity (Fletcher, 1992; Torrington et al., 2002). In particular, validity will be higher if the format used by panellists is flexible or unstructured, otherwise

45

the same result will be achieved if using behavioural or situational questions (Simons, 1995).

5.5.3. Assessment Centres (ACs) The discussion about validity of ACs includes disparate points of views as mentioned in the previous section of this chapter. However, there seems to be consensus that the increase of ACs validity depends on type of assessor, number and type of exercises and the assessee-assessor acquaintance among others factors. Then, it might be concluded that despite there are some practices allowing to improve partially the validity and cultural sensitivity of selection methods, it is necessary to carry out more research focusing on the impact of the traditional techniques on candidates of diverse ethnic origins in order to become this process both unbiased and culturally fair.

5.6.

Candidates reactions

Several academics (Thornton and Byham, 1982; Smith and Robertson, 1989, 1993; Dreher and Sackett, 1983) have claimed for more studies regarding the psychological impact of selection methods on candidates, though few studies have been conducted in that direction. The studies carried out reveal that each selection method not only generates psychological effects on participants but also influences their perception of the process as a whole. Interviewing and ACs represent two examples of this phenomenon.

5.6.1. Interviewing Recent research indicates that interviewing is the favourite selection method of candidates. This perception is due to the belief that interview allows them to present themselves more favourably than others techniques (e.g.: psychometric tests). Hence, the industry needs to

46

realise that in the light of EOP, candidates of ethnic minority groups may need previous information and training in order to familiarise with this technique (Barclay, 2001). Interviewer and interviewees perceptions of each other can affect either or both of the interview process and the outcomes. Papadopoulou, Ineson and Williamss study (1996), exploring the impact of interpersonal and communication factors on the candidates decision-making process, found that personal conduct during the interview and the information supplied are important factors in candidates final perceptions. Similarly, interviewees impressions of the recruiter (e.g.: interested, talkative, good communicator) and interviewers personality (empathy and confidence) also influence strongly candidates perception of the process and their willingness to accept a potential job offer.

5.6.2. Assessment Centres (ACs) In the case of ACs, Lievenss (2002) and Stansfield and Days study (1998) found that procedures used in ACs have an important psychological effect on participants, which can be either positive or negative. Overall reactions seem to be positive despite the anger, annoyance, stress, anxiety and worry about performance experienced by the participants and the fact that rejected candidates are usually less positive. This study also reports that positive reactions are associated to the inclusion of work sample and simulation exercises, both of them perceived by candidates as job-related. Interestingly, this study did not find support for the relationship between increased anxiety and poor AC performance, as opposed to a previous study carried out by Fletcher and Kerslake (1993). The latter indicated that candidates experiencing high levels of anxiety usually receive lower ratings from recruiters. Negative comments are related not only to the experience itself but also to the organisation of the event as indicator of quality. Stansfield and Days research (1998) indicates that negative perceptions are associated to the atmosphere of the process and the feedback received. The atmosphere relates whether or not participants find the process as supportive, constructive and fair whereas the quality of feedback and feedback giver are interpreted as indicators of the degree of importance given by the organisation to the
47

participants. A final finding of this study reveals that despite the process is regarded as fair, it is considered extremely clinical (Stansfield and Day, 1998). In short, the organisation of the event, recruiters attitudes and behaviours, and the quality of information provided by recruiters seem to be determinant in the candidates final perception of the process in terms of its fairness and usefulness. However, regardless this opinion and the psychological effects generated by the process, the validity and cultural sensitivity of selection methods need to be constantly monitored, refined and adapted when necessary, as they comprise complex technical procedures habitually incomprehensible for candidates. Additionally, special attention merits the effect that cultural baggage causes on candidates behaviour during the selection process. Particularly, this topic needs more attention of the cross-cultural researchers as it represents the core of potential cultural misunderstandings and in turn, the allocation of low scores and the perception of poor performance.

5.7.

Conclusions

Within a cross-cultural context like the current one, there is a strong probability that those new individuals coming into the industry challenge traditional organisational practices, accepted truths and long held values. Hence, a new HR approach reflecting cultural limitations of the selection methods used by the industry to select candidates from dissimilar backgrounds and identifying potential adverse effects on the ethnic minorities groups must become in the main concern of the hospitality organisations. Just doing this, they may ensure to select the right candidates regardless nationality or ethnic origin. As mentioned by Berger and Ghei : The emphasis of hospitality organisations should be on analysing the complete selection process, with the aim of making it as valid and as fair as possible. The use of [] a complete selection package [] should help employers to hire the best employees and reduce turnover thereby building a high quality workforce. Berger and Ghei (1995: p35)

48

Summary of Part I Literature Review

The hospitality has become an important industry in the global economy. It has occurred as a consequence of an assortment of economic, social and politic factors, which have led the industry to a process of internationalisation. It is visible both in the movement of the hospitality organisations towards other locations and the increasing mobility of the workforce from peripheral regions to core areas of the world. This encounter of people from different backgrounds has created an inevitable interaction of cultures at organisational level. In this process, the influence of national culture on corporate culture has been decisive in terms of the adoption of a management style. However, the higher the differences between host and home cultures, the more the possibility of raising problems at organisational level. On the one hand, multicultural organisations seem to demand more sophisticated HR practices. The PM and HRM approaches appear linked to this geographic expansion and cultural exposure where organisational responses to managing cultural diversity also constitute an important element of organisational sophistication. Unfortunately, the evidence suggests that some sectors of the industry have not yet taken diversity seriously. The discrimination of minority groups within the industry is a reality that cannot be ignored. On the other hand, new cross-cultural employees coming into the industry are affecting the performance of organisations in the way of challenging traditional practices, truths and values. Hence, the methods used to select this culturally diverse workforce serving to multinational companies and multicultural customers, need to be revaluated as a whole and modified, if necessary, in order to make it as effective and fair as possible. Finally, culturally fair selection methods need to offer high validity and total cultural sensitivity. Just doing this, the industry may ensure to select the right candidates regardless nationality or ethnic origin while reducing turnover and build a high quality multicultural workforce.
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PART II RESEARCH

On ne connat jamais un tre, mais on cesse parfois de sentir quon lignore Malraux You can never really know someone, But sometimes you stop feeling like complete strangers

50

RESEARCH

Citing Elias (1986: p20), Veal (1997) states: The aim [of research], as far as I can see, is the same in all sciences. Put simply and cursorily, the aim is to make known something previously unknown to human beings. It is to advance human knowledge, to make it more certain or better fittingthe aim isdiscovery. Veal (1997: p2) Researching intends to deal with the solution of specifics problems or phenomenon. However, more important than responding what is happening, research aims to establish why. This approach to applied research, which is commonly expected at Masters level, includes not only the evaluation of the process but also the results of particular actions (Easterby-Smith, 1991). Therefore, the second part of this study seeks to provide reader with the necessary elements to approach systematically the phenomenon researched. It has been organised in two Chapters in the interest of presenting the design and findings of research separately. While Chapter number 6 explains the overall structure of the research methods selected and implemented in this study, Chapter number 7 reveals the research findings in the way of case studies. The final analysis of theory (Part I - Literature review) and investigation findings (Part II Research) will be presented in the third part of this study.

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CHAPTER No 6 Research Methods

6.1.

Introduction

The overall structure of the research conducted in this study represents the core of this Chapter. This is divided in four sections that include same number of key topics related to the design and implementation of the research. Firstly, objectives of the research are established in direct connection with the review of literature. Secondly, diverse research approaches are discussed in order to identify the most suitable one regarding the phenomenon. Thirdly, methodology is described as central element of the investigation. Finally, limitations are mentioned in the interest of placing clearly the scope of the research.

6.2.

Objectives

6.2.1. General Objective The general objective of the primary research is to identify the level of cultural sensitivity of the selection methods used by the hospitality industry to recruit graduates from diverse ethnic origins. Particularly, the primary research aims to analyse this phenomenon in the light of the increasing multiculturalism of the workforce and the internationalisation of the hospitality organisations.

6.2.2. Specific Objectives In connection with the review of literature, the specific objectives of this research intend not only to identify the current practices in relation to the selection methods but also to

52

compare them with arguments, theories and previous research discussed in the Part I of this study. Hence, links to Chapters one to five are presented in each case: 1. To explore the recruiters perception with reference to the global labour markets at industry and corporate level (Linked to demographic changes, internationalisation of markets and shortages of skilled employees - Chapter one). 2. To identify the sources of candidates, in terms of nationality and ethnic origin, to fulfil companys labour needs (Linked to migration of the workforce - Chapter one). 3. To determine the corporate management style of organisations researched (Linked to concept of centricity Chapter two). 4. To establish the extent to which national culture influences corporate management style and, in turn, HR practices (Linked to national and corporate cultures and PM vs. HRM approaches - Chapter two). 5. To examine the corporate HR policy regarding multiculturalism of workforce (Linked to different approaches to cultural diversity Chapter three). 6. To establish the participation of ethnic minorities at different levels of the organisation (Linked to discrimination in the hospitality industry Chapter three). 7. To identify both the methods used by organisations researched to select graduates from different cultural backgrounds and the level of success of these candidates when taking part in selection process (Linked to selecting within a cultural diversity Chapter five). 8. To explore the cultural sensitivity of the selection methods used by these hospitality organisations (Linked to fair or unfair selection methods? Chapter five).

6.3.

Research approach

Given the fact that the central topic of this study is immersed in a complex social environment, phenomenology was selected as the research philosophy of this study. As mentioned by Saunders, Lewis and Thornhill (2000), this allows researcher to explore the complexity of the phenomenon and its potential causes while discovering the reality working behind the reality. A reality described as socially constructed, subjective, divergent, interrelated and focused on meanings (Finn, Elliot-White and Walton, 2000; Easterby-Smith, Thorpe and Lowe, 2002). An evaluation of strengths and weaknesses of
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the chosen research philosophy and its potential effects on the research findings are provided in Table No 6.1. In particular, understanding this complex reality is especially relevant to this study and of personal interest for researcher because of its potential and direct consequences on both the hospitality industry, as employer, and labour markets, personified in broad sectors of the worlds population.

Table No 6.1 - Strengths and weaknesses of research philosophy - Phenomenology Strengths Potential effects on the study Look at change processes over Permit to analyse the interaction between national time. cultures and ongoing economic and social trends. Allow to understand peoples Allow researcher to explore the cause-effect link meanings / humans interpretation between values (culture) and practices (management of social world. theories. style). adopting a new approach to the selection process of employees from diverse cultural backgrounds. Provide a way of gathering data, Participant observation may not only facilitate which is seen as natural. Weaknesses deal of time and resources. following studies to this issue but also evaluate the evolution of corporate practices over the time. Potential effect on the study available to collect and analyse information is considerably short. Analysis and interpretation of data The complexity of selection process may make may be very difficult. considerably difficult to understand the phenomenon as a whole. It is due to the simultaneous interaction of several forces and factors on it. Sources: Veal (1997); Saunders et al (2000); Easterby-Smith et al (2002) Data collection can take up a great May limit overall research success, as the time Contribute to the evolution of new Results may be used to reflect on the necessity of

54

In the same process, Positivism, the opposite philosophical position, was rejected, as it perceives social phenomenon as objective and external to the researcher while aims to divide social reality into parts. They are isolated in order to be explained, predicted, controlled and measured through objective methods (Finn et al, 2000; Easterby-Smith et al, 2002). This plays particularly against the objectives of this study as they intend, in essence, to identify organisational practices, which are in direct relation with human values, behaviours and beliefs. In other words, culture is composed and influenced by a variety of interrelated and simultaneous factors and forces, which are not ruled for theories or laws developed by researchers. Hence, it cannot be approached focusing on isolated elements. Finally, induction was chosen as research approach because it allows researcher both to understand the cause-effect link and to analyse the data and context in which the phenomenon takes place (Saunders et al., 2000). Research approach was selected despite the fact that initial deduction were done from models, empirical evidence and theories discussed during the first part of the Masters coursework. They allowed researcher to identify key concepts and issues that later led to the formulation of the research inquiry.

6.4.

Methodology

6.4.1. Instruments Several data selection techniques were evaluated in order to achieve the objectives established (see Section No 6.2). The necessity of exploring a complex social phenomenon and determine particular behaviours and values, led the researcher to consider a variety of instruments. They were analysed taken into account that they needed to allow the researcher to collect valuable information from both participants and process itself. Similarly, strengths and weaknesses of each one of them were compared and evaluated in relation to potential bias and level of validity and effectiveness (see Appendix No 3). As a result and despite in-depth interviews, participant observation and questionnaires were initially chosen, the first two were selected as instruments to collect data.

55

The intention of conducting a survey (using questionnaires) with individuals from dissimilar ethnic origins who had participated in selection processes was rejected. As indicated by previous research, it was concluded that responses gathered might not be objective but subjective according to participants own experiences. In fact, Stanfield and Days study (1998: p254) claims it has proved difficult to study the participants feelings about assessment techniques without negative bias created by the decision to reject. Similar conclusions of the research conducted by Papadopoulou et al (1996) point out final candidates perceptions are associated strongly to circumstantial factors of selection process and not to objective analysis (see section 5.5.2.). (i) In-depth Interview This data collection technique was selected because of its convenience in achieving the objectives of this research. As mentioned by Easterby-Smith et al (2002: pp72-73) in-depth interview: is often claimed to be the best method of gathering information as it represents the opportunity for the researcher to probe deeply to uncover new clues, open up new dimensions of a problem and secure vivid, accurate inclusive accounts that are based on personal experiences. In particular, developing this approach to the selection methods is important for this study because it assists in the understanding of the general trends of the industry while building explanations about the relationship between national culture and corporate management style. In short, this technique allows the researcher to explore in depth a general field of his particular interest whereas attempting to understand human behaviours and development of ongoing events and trends. In terms of the design of the interview questionnaire, (see Appendix No 4) it covered five general fields, which were considered vital after reviewing literature. They were linked to the objectives of this study in order to allow the researcher the comparison between theory and practice in the same process. The relationship linking interview schedule and specific objectives, as listed previously, are shown in Table No 6.2. In the same way, open and close questions were employed in the design of the interview questionnaire. Open questions were used to encourage participants to argue freely on each one of the topics suggested (i.e.: How is the HR team structured at national level?), while close questions aimed to generate yes / no answers when pointing out was important for the final result of research (i.e.: Is there some kind of adaptation across nations?). Both,
56

open and close questions were carefully worded so that answers would be neither vague nor conducted.

Table No 6.2 Relationship between interview structure and research objectives _________________________________________________________________________ Interview schedule Specific objectives linked _________________________________________________________________________ Corporate management style Numbers three, four and five Selection methods Number seven Selection process and ethnic minorities Numbers six and eight Role of minorities at corporate level Number two and six Perception of labour markets Number one _________________________________________________________________________

Finally, two pilot interviews were carried out with two friendly managers in an early stage of this research. A General Manager with experience in five-stars hotels and a senior HR Manager with responsibility for graduate recruitment were interviewed with the aim of piloting the interview questionnaire and recommending the researcher suitable strategies to conduct successfully this stage of the research. Both of them have significant experience in selecting management staff from dissimilar cultural backgrounds. As a result of the pilot interviews, changes were introduced to the questionnaire in order to make it more clear and accurate. Although, managers considered the interview questionnaire to be well designed (flowing from general to specific concepts), some words needed to be changed, as they sounded too technical or academic. (ii) Participant Observation As mentioned by different researchers (Veal, 1997; Easterby-Smith et al, 1991), participant observation is an effective method to study groups practices and customs. To reiterate, in the light of the research objectives, this data collection technique was selected as it represented the only way to research key issues of this study (i.e.: participants reactions to selection methods) and corroborate information given during in-depth interviews (i.e.: type of selection methods used by the company).

57

Exploring candidates reactions and recruiters attitudes during the process and identifying the level of sophistication of the selection methods used by these companies were essential in the purpose of building the whole picture of the phenomenon. However, as called by Veal (1997) and will be mentioned later in the next Chapter, practical and tactical problems were associated to the use of participant observation as data collection technique. Particularly, the implementation of this method was possible as the researcher had the opportunity to participate and go throughout the selection process established by Contract Catering Co. to recruit graduates. No ethical issues were involved in this process as the researcher had previously applied to this graduate programme in the interest of joining this company after graduating and not to carry out this research.

6.4.2.

Sample

Seven hospitality organisations based on the U.K. were invited to take part in this study (Appendix No 5). They were explained the aims and objectives of research arguing that cultural diversity of workforce and internationalisation of the organisations are generating significant impacts on the hospitality industry which merit to be investigated. Particularly, regional demographic changes and shortages of skilled employees were mentioned as two key factors affecting directly the industry. The group of organisations invited to participate in this research comprised a wide range of sectors within the hospitality industry. One of the firms belongs to the hotel & restaurant sector, other to the consultant sector while three are concentrated on operating hotels, health clubs and resorts, and two in the contract catering service and facilities management. In terms of the classification, this is considered as a non-probability sampling as not all hospitality organisations were included in this sample and, consequently, they did not have an equal chance of being selected. According to Finn et al (2000) this non-probability sampling can be sub-categorised as a convenience or availability sample because of the particular and convenient reasons argued by the researcher (i.e. easy accessibility) to select participants. However, the main limitation associated to this type of sampling is that no
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research findings can be generalised to the entire population, as neither the degree of error can be determined or the level of confidence can be stated. These organisations were approached because of their leading role within the industry and strong relationship with the Oxford Brookes University (OBU). First, innovative polices, strong presence in diverse markets, fast growth and high level of cultural exposure were used as criteria to identify the international leading role of the companies. They led the researcher to assume that organisations had significant experience in recruiting graduates from diverse ethnic origins. Second, the fact that in the past all of these organisations had presented their Graduate Management Programmes in the School of Hotel and Restaurant Management at OBU became in a second reason to approach them. Again, this circumstance was expected to facilitate the access at senior level of the organisation.

6.4.3. Participants profile From the sample mentioned, three organisations accepted to take part in this research. The sectors represented by the organisations included: hotels, restaurants & pubs (1), contract catering (1), and hotels, health clubs & resorts (1) (see Table No 6.3). This signified a participation rate of 42,8% of the sample previously selected. Real names of the organisations have been changed to protect their identities. Hence, three nicknames will be used in order to identify them throughout this study. They are Global Hotel Company, Contract Catering Co. and International Hotel Co, respectively.

6.4.4. Data collection procedure (i) In-depth Interviews In-depth interviews were held with senior managers in charge of the graduate / skilled employee recruitment within each organisation. They were explained about the research development in order to make clear its aims and objectives as well as the way in which the information collected would be stored and handled. Similarly, an executive report of the

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main research findings was offered to participants as final stage of this study (see Appendix No 6).

Table No 6.3 - Profile of the Organisations researched Company Global Hospitality Company Contract Catering Co. Sector Hotels, Restaurants & Pubs. Foodservice & Hospitality International Hotel Co. Hotel, & Resorts Description This Multi-brand hotel organisation operates and franchises in excess of 3,200 hotels in more than hundred countries and territories as well as more than 2,000 restaurants and bars. This Global organisation provides a wide range of hospitality services owning or managing renowned brand-concept units and operating in different regions and cultural environments (more than ninety countries). This international hotel company administrates and seventy countries world-wide. Source: Companies websites and brochures (2002) Health Clubs owns more than 380 hotels and health clubs in almost

One interview was conducted face-to-face in the companys headquarters. This interview was audio recorded and the respective consent form was signed (see Appendix No 7 and No 8). The other two interviews were undertaken by phone and the data was recorded by means of notes following strictly the interview questionnaire (see Appendix No 9). Interviews went well despite the initial tension caused by the discussion of some sensible issues. A good level of rapport and a pleasant conversational atmosphere were reached during the three interviews, while the researcher avoided engaging in debate or conducting responses. While interviews conducted with senior HR Managers of Contract Catering Co. and International Hotel Co. were formal and followed the structure previously planned, the one carried out with the Global Hospitality Companys manager acquired other dimensions. This manager was particularly interested in the topic discussed, as she had never considered neither the potential bias that selection methods could produce on
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culturally diverse candidates nor the implementation of some innovative techniques (i.e.: biodata). Perceptions and points of view related to these interviews will be presented in Chapter number seven of this study. (ii) Participant Observation Participant observation was conducted according to the schedule provided by the company. The first stage of the process consisted of filling in the respective application form (see Appendix No 10). Then, applicant was invited by Contact Catering Co. to attend an Open Day at Heathrow Airport (London) in the interest of providing an introduction to the Graduate Programme and company itself (see Appendix No 11). In doing so, the candidate was shown ten different units managed by this organisation while were explained in detail basic procedures and duties of the job. The third step included the participation in the companys Graduate AC at Gatwick Airport (London), which comprised an assortment of diverse techniques applied in a one-day session (see Appendix No 12). A twenty-five-minutes interview at Luton Airport (north London) was the last stage of the selection process. There, companys Regional HR director and a Unit General Manager participated as members of a panel (see Appendix No 13). Details related to this phase of the research will be discussed in Section No 7.2.3 vi/vii of this study. It should be noted that the usage of participant observation as a data collection technique, became a challenge for researcher. This experience involved difficulties associated to separate researchers role as candidate and as investigator. When possible, information was recorded by taking notes during the process, when impossible, it was written down immediately after events. In all cases, researcher aimed to be impartial and objective.

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6.5.

Limitations

As mentioned and expected in the dissertation proposal, the use of in-depth interviews can introduce some sources of bias into the research and thereby undermine the validity of this research instrument. This is due to the validity of data collected depends mainly on interviewees disposition to supply relevant and accurate information about the topics discussed. Similarly, data recording, misunderstandings, wrong attitudes and opinions of interviewer during the interview also represent potential limitations associated to this instrument (Finn, Elliott-White and Walton, 2000; Easterby-Smith et al, 2002). Firstly, it was impossible to corroborate part of the information provided by managers, as the access to other sources was limited. This represents an important restriction of this part of the research. Interviewees point of views rather than companies policy statements might have been predominant in some responses, affecting general validity of research findings. Secondly, the researcher was unsuccessful in obtaining company documentation. Job description, personal specification and EO policy statements were not provided by participants despite the fact the researcher emphasised their importance for the final success of the study. Similarly, statistics related to participation of ethnic minorities at different levels of these organisations were no available. Manager might have acted so as a result of considering selection process and ethnic composition of their workforce as sensitive issues for organisations. Thereby, brochures and websites constituted the main source of background information to analyse research findings. Finally, as mentioned previously, research findings of this study should not be generalised to the hospitality industry as a whole. Despite participants include leading and global players within the industry, the small size and convenience of the sample as well as the lack of representation of other sectors and small/independent organisations (which are the majority in some regions of the world) do not make possible to universalise these results.

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CHAPTER No 7 Research Findings

7.1.

Introduction

Findings of this research were obtained from corporate brochures, companies websites, participant observation and in-depth interviews with the senior HR Managers of. Global Hospitality Company, Contract Catering Co. and International Hotel Co. The research findings are presented as three different case studies in the interest of comparing corporate cultural exposure, HR practices and management styles of these three hospitality organisations. Firstly, corporate brochures and websites were used to construct a comprehensible companys profile, in which overview, history, structure and strategy were summarised and presented in order to establish the evolution and scope of each organisation. Secondly, indepth interviews, which formed the main source of findings, allowed researcher to collect relevant information from interviewees regarding different topics as identified in the literature review. Lastly, participant observation was also employed as data collection technique. An interesting experience throughout the selection process of the Contract Catering Co.s Graduate Programme is described from the researchers point of view. In particular, this represented a great challenge for investigator because of the difficulties associated to recording information while participating undercover in the process.

7.2.

Case studies

7.2.1. Global Hospitality Company. (i) Overview Global Hospitality Company comprise two divisions: hotel and retail. The first one, as defined in its website, is The Worlds leading and Most Global Hotel Company. It owns

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(108), operates (328) or franchises (2,678) more than 3,270 hotels and over 512,000 guest rooms in close to 100 countries and territories. All this operation is possible thanks to a workforce of nearly 95,000 employees. Global Hospitality Company owns in excess of eight different hotel brands, which cover the most important niche markets. Four of its leading and more recognised brands concentrate on upper/upscale, mid-scale and budget segments. Its two upper-/upscale brands: A and B, operate hotels and resorts around the world. Brand A targets at business travellers (upper-upscale market) in 134 hotels while Brand B focus on experienced travellers (up-scale market). This brand operates in 40 countries and includes 152 hotels in its portfolio. The mid-scale segment is covered by brand C, which targets at business and leisure travellers. Its more than 1,500 hotels are spread world-wide and located in small towns, major cities, highways and airports. Finally, Brand D has been designed for value-orientated travellers in the budget segment, operating 1,173 modern hotels around the globe (Global Hospitality Companys website and brochure, 2002). The retail division owns and manages a network of over 2,000 outlets of which over 900 are branded. This is the leading U.K. operator of managed restaurants, pubs & bars and has also entered the European continental market. The business is organised into two groups. The Restaurant Group comprises over 500 branded suburban restaurants and food-led high-street outlets, whilst the Pubs & Bars Group includes over 350 branded outlets and approximately 1,000 unbranded pubs located in small and major cities around the U.K. (Global Hospitality Companys website and brochure, 2002). (ii) History The origins of Global Hospitality Company can be traced back to the XVIII century with the development of a brewery in the U.K. This business grew rapidly during the following centuries and expanded all over the country. In the meantime, the company acquired a small hotel group, which later became in the core of the business with the purchase of the
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hotel brand C in the 80s. During the 90s, Global Hospitality Company acquired and developed other brands allowing company to expand its portfolio internationally and build a global strong infrastructure bringing considerable synergies and cost savings. (iii) Structure and strategy As mentioned previously, the organisational structure of Global Hospitality Company comprises two divisions: hotel and retail. The first one has a global scope while the second one is developed at national level. The administrative distribution of this organisation includes one global and three regional headquarters. The first one is located in the U.K. while regional headquarters cover the Americas (based in the U.S.A.), Europe, The Middle East and Africa (based in the U.K.), and Asia Pacific (based in Singapore). English is used as the corporate language. The corporate strategy is founded on creating a long-term sustainable growth through developing and strengthening the leading brands. A strong management, global infrastructure and substantial financial resources are the key elements behind this strategy. (iv) Interviewee background The phone interview was conducted with the Recruitment Co-ordinator of the Global Hospitality Company. This position reports to HR Vice-president for the Europe, The Middle East and Africa division and is in charge of the entire selection process of graduates and unskilled candidates in the U.K. She has occupied this position during the last two years after a 25-years career within the hospitality industry. Interviewees background includes a great experience at managerial level as Front Desk Manager and Personnel and Training Manager. (v) Interview findings The structure of Global Hospitality Companys HR department consists of five hierarchical levels. At the bottom of the structure are the HR Officers, in charge of 3-4 units, and HR Managers, responsible for 6-10 units. Then, Regional HR Managers at national level and Regional Directors at continent level embody the next level of hierarchy. In the U.K., for instance, the operation is divided in three regions: North, South and London area. Finally, at the top of the scale, three different HR Vice-presidents (one per each regional headquarter) lead the department and report to the global senior HR Vice-president.
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Some adaptations to this structure have been introduced in order to tailor brands needs. While one HR Manager is in charge of the HR department in each upscale-brand unit due to the large size of them, the HR practices in the budget segment is not under control of the firm as these units are franchises. In relation to the companys approach to managing cultural diversity of the workforce, Global Hospitality Company claims to use an EO policy at corporate level. Particularly, this policy is developed through the application form by requiring personal information from candidates. According to the HR Manager, this data allows the company to monitor applicants ethnic origin, marital status, disabilities and gender. In fact, a committed-to-achieving-equal-opportunities logo is included on the last part of application form (see Appendix No 10). However, as questioned about the use of these statistics, the interviewee did not know whether or not this was compiled, analysed and used in some way. In her opinion, this data could be used effectively at regional level as significant concentration of some ethnic minorities have been detected in specific regions of the U.K. For instance, she comments, according to my experience Birmingham counts with an important concentration of Asian population, while in the London area Afro-Caribbean immigrants are the majority The selection methods used by Global Hospitality Company to fulfil their labour needs are applied according to the type of post. In the U.K., candidates applying for operative jobs are selected by means of a single interview while a short personality test is also used for some posts such as waiter and barman. Applicants to management posts are interviewed by the HR Officer or Manager (using face-to-face or phone interview) and invited to attend a two-days AC. In relation to other regions of the world, it was impossible to establish whether this practice is replicated at global level or tailored across nations, as the HR Manager interviewed was not familiar with the policies implemented by her colleagues. Regarding the effectiveness of these selection methods to select graduates from different ethnic origins, the senior HR Manager claims that everybody is evaluated with the same rules during the process. According to her, the techniques implemented allow the
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company to select the right people under the same conditions and equal treatment. This approach is considered to be the most 'fear' with all candidates. Questioned about the cultural diversity of candidates, she stated that new graduates joining the company represent a great variety of nationalities. In fact -she said- during 2001 fourteen graduates, all of them non-U.K. citizens, were selected to attend its graduate management programme. Though, after asking for clarification, she indicated that only one of them was non-European. With reference to performance of these foreign graduate candidates (most of them European), she argued that this is sometimes better than performance of local applicants. This perception about the quality of candidates in general was stressed when she claimed that graduates coming into the industry do not have the calibre [] that the company is looking for. What is more, she said, unfortunately few U.K. students are attending hospitality degrees making more difficult to fulfil vacancies of skilled jobs. As a result, the company has explored other European labour markets such as the French market where an AC was recently programmed. In connection with this issue, she argues that as long as the difficulties associated to the work permit issue continue as so far, the company wont be able to move abroad in order to fulfil its labour needs. While government provides an 18-months work permit to nonEuropean employees, the companys training programmes last 24 months. This represents a limitation for those non-European graduates willing to join the company. Finally, after interviewing this Manager, the researcher had the opportunity of discussing informally with her about different topics related to this study. In particular, this senior Manager was interested in the potential cultural bias of traditional selection methods, as she had never considered that performance of candidates might be affected by the lack of cultural sensitivity of the selection techniques. In this process, the researcher recommended both some practices in order to reduce bias during selection process and the use of innovative selection techniques, as discussed on Chapter five of this study. Interestingly both of them sounded unknown and unfamiliar to this HR Manager

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7.2.2. International Hotel Co. (i) Overview and structure International Hotel Co is the largest division of a major holding company based on the U.K. This division owns the rights of an international family of hotel brands outside the U.S.A. International Hotel Co. has a market value of approximately 3.5 billion, a turnover of around 4 billion, employs more than 53,000 people and currently develops, owns, manages or franchises over 380 hotels, resorts and vacation ownership properties in almost 70 countries world-wide. This family includes nine of the world's best known and most highly regarded hotel brands. Its portfolio offers guests and customers the finest accommodations, services, amenities and value for business or leisure in the widest variety of hotel experiences, including four-star city centre hotels, convention properties, all-suite hotels, extended stay, mid-priced focused service, destination resorts, vacation ownership, airport hotels and conference centres (International Hotel Co.s website, 2002). (ii) History The holding group acquired International Hotel Co., a brand with more than 80 years of tradition, in the late 80s. At that time this owned or managed only 92 hotels. During the last twenty years, the company has completed the acquisition of different small hotel groups, which added a great number of new units to its portfolio. At the end of the 90s, International Hotel Co. and the owner of the brand rights within the U.S.A. announced the signing of a world-wide alliance that reunited this hotel brand for the first time in forty years. Under the terms of the alliance, these two hospitality organisations are co-operating on sales and marketing, loyalty programmes, central reservation systems and other operational matters.

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The structure of International Hotel Co. includes four regional divisions: The U.K. & Ireland; Europe, Middle East & Africa; Asia & Austral-Asia and Americas. Its global headquarters are located in London (U.K.) and English is used as corporate language. (iii) Strategy International Hotel Co, as claimed on its website, is committed to expanding globally, to bring the worlds most powerful hotel brand to first-class hotels, convention centres and serviced apartments in city centre locations, at international airports and in prime resorts identified as key to its customers (International Hotel Co, 2002). This strategy is based on two major objectives. Achieving a leading position in the European full service hotels sector by the acquisition of an increasing number of hotels, and developing its global strategic alliance with the owner of the brand in order to offer customers access to 2,000 hotels in more than 50 countries throughout the world. This vision of aggressive expansion efforts and cutting-edge innovation has been implemented through a interesting variety of tactics such as business travel programmes, quality service, strategic performance management system, upgrading hotels, franchise review, satisfaction guarantee, marketing programmes, guest reward programmes and innovation. (iv) Interviewee background The International Hotel Co.s senior HR executive interviewed during this research is the Resourcing and Graduate Recruitment Manager. She is based in London reporting to the HR Director for the U.K. & Ireland Division and is in charge of the selection process of skilled employees in this region. Her extensive work experience within the industry includes senior positions as HR Manager in Hotels and Casinos of the International Hotel Co. Recently the researcher was informed that she has been promoted to a new executive position within the company. (v) Interview findings In the U.K. & Ireland Division, the HR department of International Hotel Co. includes five hierarchical levels: The first two, HR Administrators and HR/Training Managers are in
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charge of the HR procedures in a specific number of units that, though, can vary depending on the size of each property. HR Directors at national level (three in the case of this Division, e.g.: North, Midlands and South,) represent the next hierarchical level, while one Regional HR Director exists per each Division. Finally, a HR Vice-president, who is part of the companys executive board, leads the department at global scale. Unfortunately, the interviewee could not provide information about structure in the other Divisions (i.e.: Europe, Middle East & Africa; Asia & Austral-Asia and Americas). On the topic of managing cultural diversity, International Hotel Co claims to have an EOP approach. In connection with the selection process, this policy has been implemented through the design of a handout, which includes instructions related to the interview process. Advice about type of questions that must not be used during selection interviews is included in this document. The application form also includes an EO section in the interest of monitoring ethnic origin, marital status, disabilities and gender. However, despite International Hotel Co.s workforce includes individuals from more than 70 different nationalities neither instruments nor records are used to measure the effectiveness of this policy or the selection process, as recognised by the interviewee. She pointed out that the HR Director is responsible for monitoring them together with consultant firms, which are regularly hired to evaluate these practices. In the same way, International Hotel Co. has designed a complex selection procedure for its Graduate Programme as part of a global strategy that, though, is tailored according to the local labour market conditions. Open days and work trials, and a structured application form represent the first two stages of this process. Then, short-listing candidates are invited to take two ability tests (verbal reasoning and numerical ability) and attend a two-days AC. Finally, candidates' language ability is tested and references are checked during the last part of the process. Conversely, operative staff is selected by means of a single interview.

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In terms of the ethnic origin / nationalities of those candidates selected in the U.K. & Ireland Division, it is clear the difference between operative employees and graduates. While most of candidates selected to join the graduate programme in 2001 were European citizens (no amount was specified), 14 of out 175 new unskilled employees were domestic minorities (i.e.: Indians, Pakistanis and Africans). Interestingly, according to the HR Manager, these ethnic minorities occasionally experiment some kind of constraints in terms of managing time when participating in the selection process. However, she said, this factor is no relevant in the overall performance of these groups in comparison to the Anglo-Saxons candidates. Evidence of this statement, she claims, it is the fact that participation of ethnic minorities at different levels of the organisation is considerable (as mentioned previously, no statistics or figures were provided to the researcher). With reference to perception of labour markets, a shortage of skilled employees and the necessity of updating graduates skills embody the main concern of International Hotel Co. On the one side, this HR Manager indicated that the shortage of skilled employee has led the company to design new strategies in order to meet employees expectations and, in turn, increase both motivation and retention of the core staff. These long-term strategies include offering accommodation, organising social activities and providing language courses, among others. On the other hand, updating professional skills and academic qualifications of graduates coming into the industry also represent a challenge for the industry. A lack of cultural awareness, communication skills, training in selection methods, and enthusiastic attitude were pointed out as characteristics to be improved by graduates if they are to be successful within the industry.

7.2.3. Contract Catering Co. (i) Overview According to the companys Chairman, Contract Catering Co. is the world's leading foodservice and hospitality organisation, employing over 360,000 people in more than 90 countries (see Figure No 7.1). This organisation provides foodservice for customers at a range of locations such as offices, factories, railway stations, airports, universities, schools,
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healthcare institutions, offshore and remote sites, retail stores and shopping malls (Contract Catering Co.s website, 2002). This operation is developed in different market sectors, cultures and environments across the world. Business & industry sector is the core of the business despite other emerging markets such as healthcare, education, fine dining, specialist service, sports & events, vending, and travel, retail & leisure have increased in size and importance in the last ten years (Contract Catering Co.s website, 2002).

Figure No 7.1 Markets targeted by Contract Catering Co.

Key For Map:

Core Markets

Developing Markets

Source: Contract Catering Co.s website (2002)

(ii) History and strategy Contract Catering Co. was founded in 1941 to provide food to British munitions workers. Since, it has grown both organically and through acquisitions. Most of the companies

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joined the Group in the 90's bringing a combination of strength of heritage and in-depth market awareness. The strategy is based on a long-term growth and focuses on five key areas: client & customer satisfaction, market leadership, operational excellence, financial performance and being a preferred employer. An essential part of this is an interesting approach to the market place through sector focused operating companies, which in turn have access to the portfolio of foodservice brands. "Our aim is to be the world's most profitable and highest quality foodservice and hospitality group, claims the Contract Catering Co.s Chief Executive. (iii) Structure The administrative structure of this organisation comprises five divisions: Western Europe; Central Europe; Southern Europe, South America & Asia Pacific; U.K. & Ireland and North America. This structure is a response to both new corporate priorities and market realities. In fact, while in 1992 Contract Catering Co. was concentrated on two markets: the U.K. (99% of total turnover) and North America (1%), in 2001 corporate income was obtained from seven different markets: the U.K. (33% of total turnover), North America (32%), Rest of the world (19%), France (8%), Germany (4%), Netherlands (2%) and Spain (2%). According to a senior executive, this international network has allowed the company to share ideas within the sectors and implement them with a local flavour. Finally, English is claimed to be the corporate language. (iv) Interviewee background The senior executive interviewed during this research is the U.K. HR Development Manager. He reports to the HR Director of the UK & Ireland Division and is in charge of the corporate graduate programme and training scheme in the U.K. Previous experience of the interviewee includes management positions within the organisation in different countries. Further this interview, which was conducted in the Contract Catering Co.s Headquarters in London, the researcher was informed that this Manager was promoted to a new position: Corporate Affairs Co-ordinator.

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(v) Interview findings Each division of Contract Catering Co. has a HR department. Though, one division can cover one or more countries, it depends on how developed the market is said the interviewee. This structure, which is replicated around the world, consists of HR Officers, HR Administrators, HR/Training Managers, HR Directors (one per market sector, e.g.: education, retail, hotels, healthcare, etc), Divisional HR Directors and a World-wide Group HR Director. In relation to managing cultural diversity, this executive argues that the company develops an EOP approach as part of the corporate mission. In fact, the Contract Catering Co.s commitment and responsibilities with the world-wide communities in which it operates are to provide equal opportunities for all our people, actively encouraging equal employment, training and career development regardless of background (Contract Catering Co.s website, 2002). Reinforcing this statement, the interviewee claims that the corporate has designed a EOP characterised by carrying out a fair selection process. Evidence of this approach to EO, he argued, it is a recent global forum of HR Directors in which was discussed the commonalities of a diverse workforce such as values, objectives and motivation. In relation to this corporate policy and the selection methods, the application form used by this firm includes an Equal-Opportunity section where ethnic origin and disability-related issues are asked to applicants. Unfortunately, this senior Manager did not know how these statistics were managed by the company to develop this policy. As mentioned by him: I need to find out where [] it is. Other selection methods used by Contract Catering Co. include interviewing, work trials, testing and AC. While a single interview is employed to select operative staff, management posts are fulfilled through sophisticated techniques. As mentioned by the interviewee, this is part of a global strategy that though is adapted according to the local labour market conditions. On the one hand, open days and work trials constitute the initial stage of the selection process. According to this HR Manager, they provide recruiters and applicants with valuable information and experience about the suitability of potential employees to the job.
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During the second phase, candidates need to fill in and submit either a structured application form provided by the company (see Appendix No 10) or the format that best suits to applicants convenience. These two steps are the same for operative and managerial aspirants. On the other hand, candidates participating in the Contract Catering Co.s Graduate Programme are invited to attend a one-day AC, which comprises an assortment of different selection techniques. Then, those successful candidates are interviewed at the Units where company needs to fulfil the vacancies (see Section No 7.2.2. vi and vii). Employment and educational or personal references are checked as last phase of this procedure. Interestingly, this HR Manager stated that no differences, regarding performance, have been observed among candidates during the selection process. Ethnic origin seems not to be a factor affecting final results, according to the interviewee. From these graduates selected, Asians, South Americans and Europeans are claimed to be the main sources of Contract Catering Co. at global level. This is possible despite the fact that limitations arise in some areas of the world in relation to the work permit required to employees. In particular, the interviewee claimed company is currently lobbying the U.K. government in order to relax immigration rules. In the meantime, the company has

developed an innovative approach to this issue. An international graduate programme has been implemented in the last years in which non-European graduates are appointed and trained in this part of the world and then sent back to their home countries. For instance, he says, some years ago we would not have thought to appoint graduates from the former U.S.S.R., now we have a large number of them. In relation to the concept of culture and its influence on the business, this HR Manager argued that company is conscious about globalisation process. Hence, operations need to reflect the cultural diversity that multicultural customers and clients are looking for.
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According to him, the understanding of cultural differences has recently gained more importance under the new global politic and economic circumstances. As an example of the previous approach, the interviewee recognises that years ago this organisation decided to establish some units in the former U.S.S.R but they failed. Despite company sent an experienced English team, the results were negatives. Now, it is different, we prefer to take over a local company, identify what peoples needs are and how the market works [] Definitely, the business can be operatively the same everywhere, consistent and standardised. However, the way in which the business is developed must reflect the cultural reality of market. Thats the unique reason why we grew from one to ninety countries in just ten years HR Manager, Contract Catering Co. (2002) (vi) Participant observation findings - AC As explained previously, participant observation was also used in this research as data collection technique (see Section 6.3.4- ii). The researcher participated throughout the entire selection process of the Contract Catering Co.s Graduate Programme, which consisted of a one-day AC and a structured interview. In the first part, the researcher was invited to attend an AC in the Conference Centre at Gatwick Airport (London). This invitation included a timetable, which explained types of selection methods to be applied (two ability tests: verbal reasoning and numerical ability, two group exercises, one personality questionnaire and an individual discussion) and the schedule of the whole process (see Appendix No 12). Six of out seven candidates attended the AC. This group consisted of four women of different nationalities (Jamaica, France, U.K. and Australia) and two men (U.K. and Colombia). In terms of ethnic origins, this group included one Black-Caribbean candidate, two Black-African, two white and one Latin American, respectively (this classification use the terminology as found in the EOsection of the Contract Catering Co.s application form). The initial atmosphere was tense. While waiting for the HR Administrator, all candidates looked nervous and stressed. No one wanted to talk or introduce him/herself. The stress increased when starting the process. A HR Manager introduced her colleagues, who were
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supporting the process: one HR Officer, one HR Administrator, one HR Manager and the Regional Operations Director (all of them Anglo-Saxon). After a brief introduction of the process, the first group exercise was conducted. Certain amount of money and bricks of different colours were allocated to the three couple of participants. Each group was asked to design a strategy to construct a building using bricks of the same colour while obtaining the largest amount of money. This involved negotiating with other groups and/or with the bank, which was represented by the HR Administrator. Ten minutes were allocated to complete the task. Each one of the members of the HR team was assigned to observe and take notes about the participants behaviours and comments. The anxiety increased as each one wanted to perform well and show its analytical capacity and ability to convince his/her partner and other players. It was clear that Black African and Caribbean participants looked more stressed and anxious, while the white candidates (who coincidentally worked in the same team) seem more relaxed and confident. Language difficulties also arose as three of them were not native speakers and the task required great ability to communicate to each other. As a result, white candidates got the highest marks. They finished the task first while made the largest amount of money. After a short break, participants were explained the next group exercise. Groups of three candidates were asked to visit one of the Units managed by Contract Catering Co. (located in the Airport) in order to analyse marketing strategies, quality of products and service. Later, members of each group were required to present their conclusions and recommendations to the HR team and other participants. Forty-five minutes were assigned to this task and one HR Manager followed each group. One group consisted of the Anglo-Saxon, Black African and Latin American candidates; the second one included the Black Caribbean and Anglo-Saxon (two of them) candidates. This time, experience and training were more important than communication skills, allowing recruiters to find out who were more suitable to the job. The five-minutes presentations were dominated for those candidates with the best managerial profile and despite language continued being a limitation black candidates were particularly

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successful in presenting their findings and suggesting creative recommendations to the business. Verbal reasoning (40 questions) and numerical ability tests (60 questions), and a personality questionnaire (240 questions) embodied the next stage of this Graduate AC. The participants were asked to fill in the tests in a predetermined time (20 and 30 minutes, respectively), whereas the questionnaire required unlimited time to be answered. All candidates seemed to be stressed, as the questions were demanding. Time allocated was always too short to respond to all enquiries, making the atmosphere even more tense. Participants did not wanted to make comments after submitting the forms and preferred to go immediately to the final step of the process. An individual discussion was conducted with each one of the candidates. Rather than an interview, this was a relaxed and informal conversation in the interest of offering additional information of the graduate programme and exploring candidate feelings and perceptions about both career expectations and the AC. Finally, no feedback was provided by the HR Managers. In general, it might be mentioned that location and facilities used to carry out the AC were ideal, and the HR team had a positive and supportive attitude with all the participants. However, the researcher could perceive the presence of the halo syndrome (see Section No 5.3.3.) during the process. This was evident in the familiar way as HR team approached white candidates and gave encouraging responses to all their comments. Whether or not this positive rapport could have influenced the final assessment, it was impossible to establish. After leaving the conferences room, the researcher discussed briefly with other candidates about the AC experience. All of them pointed out that felt observed and analysed all the time, generating more tension and anxiety. The AC was also considered demanding and

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stressful despite supportive attitude of the HR team. This circumstance might have caused, in their opinion, that their performance was not the best. (vii) Participant observation findings Structured interview In relation to the second and last stage of this selection process, the researcher was invited to attend a structured interview at Luton Airport (north London). The Regional HR Officer (Anglo-Saxon) and the Luton Airport General Manager (Indian) conducted a twenty-fiveminutes interview. The interview atmosphere was formal but friendly. The HR officer summarised in detail the selection process so far and explained the next steps following the interview. All questions were related to candidates previous work experience, academic background, and present and future projects. Researcher was asked no personal questions during the interview. Interestingly, although there was a good rapport with the HR Officer, interviewee felt more affinity with the General Manager, as he seemed to perceive when questions were no sufficiently clear. When necessary, he always provided clarification to the interviewee while using a familiar and encouraging language, which was important for the interviewing process. The HR Officers attitude was also supportive and friendly, demonstrating interest on candidates responses. After interview, the General Manager invited candidate to visit different Units administrated by Contract Catering Co. at this location.

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PART III ANALYSIS

Let my house not be walled on four sides, Let all the windows be open, Let all the cultures blow in, But let no culture me off my feet Mahatma Gandhi

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ANALYSIS

After collecting information, the analysis and interpretation of data represent the most challenging step of any study. The analysis of qualitative data, as it is the case of this research, has been approached by the use of content analysis. As mentioned by Finn et al: It is a technique that is applied to non-statistical material and that it allows [researcher] to analyse such material in a systematic way. Content analysis is thus a quantitative means of analysing qualitative data. Finn et al (2000: p134) Supporting this argument, Krippendorf (Finn et al, 2000: p 135) states that this is a research technique for making replicable and valid inferences from data to their context. However, care needs to be taken when using this approach, as researcher [] will be unlikely to understand why the ideas occur and why individuals interpret things or issues in their different ways (Easterby-Smith et al, 1991: p108). This occurs despite the researcher understands what the concepts associated to the research enquiry are. Particularly, the analysis of the information collected throughout this study included a methodical procedure in direct connection with review of literature. This consisted of two Chapters that pretended to extract the meanings and trends of the phenomenon researched. While Chapter number 8 focuses on analysing the research findings in relation to theory discussed on the Part I of this study, Chapter number 9 put all elements together in an attempt to construct the whole picture of the phenomenon.

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CHAPTER No 8 Analysis of research findings

8.1.

Introduction

The analysis of the research findings has been carried out systematically in direct relation to the theory discussed in the review of literature. Five fields were chosen in order to analysis the organisations, as they represent fundamental concepts associated to the research enquiry. They are management style, HR approach, organisational response to cultural diversity, labour markets and cultural sensitivity of the selection methods. Though, the first step of this analysis includes the implementation of the model previously suggested (see Chapter number four). This aims to place the organisations researched within the conceptual map before comparing it with the research findings.

8.2.

Implementation of the model

The model previously suggested and described in Chapter number four of this study was applied to the three organisations researched. The two dimensions of this model (e.g.: levels of expansion and cultural exposure) were measured by using two indicators: the Percentage of Foreign Bedrooms (PFB) / Turnover (PFT) and the Factor of Cultural Diversity (FCD). The data required to obtain these indicators and the index of internationalisation were extracted from both the companies websites and previous research (U.N., 2002b; Roper et al, 2001). The FCD, designed specifically for the purpose of this research, results from comparing the number of countries where companys units are located and the total number of countries in the world on the premise of one country, one culture. Finally, a scale from 0.0 to1.0 was used to measure the level of cultural exposure, while the level of expansion was calculated as a percentage of total units / turnover (see Table No 8.1).
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Table No 8.1 Indicators of internationalisation of the organisations researched Number of Company Global Hospitality Company Contract Catering Co. International Hotel Co. * FCD = Factor of Cultural Diversity ** PFB = Percentage of Foreign Bedrooms *** PFT = Percentage of Foreign Turnover Once data was collected and indicators were calculated, the three companies researched were placed on the conceptual map. As a result, this indicated that all organisations of the sample positioned in zone three where, as mentioned in Chapter number four, organisations develop a polycentric / geocentric management style, a sophisticated PM policy and a formal EO Policy as organisational response to managing cultural diversity (see Figure No 8.1). Countries = NOC 100 90 70 FCD* = NOC/240 0.416 0.375 0.291 PFB** / PFT*** 78%** 66%*** 84%**

Source: Roper et al (2001), Companies websites (2002)

8.2.1. Functionality and limitations of the model The model seems to confirm the research findings regarding HR practices but is unsuccessful identifying the corporate management style and the cultural diversity approach of all organisations researched. Despite all participants claimed to develop a global scope and implement an EOP in relation to their workforce, which coincide with the model, the evidence indicate a different reality (see Sections No 8.3 to 8.8). To establish the extent to which one single culture or group of cultures influence organisations in relation to the adoption of one or another approach to HR practices appears to be more complex than expected. Similarly, identify the limits between the different zones or the moment in which companies switch to a more enlightened approach, does not depend on objective but subjective factors. The influence of corporate subcultures, the particular conditions of labour markets and the local legislation, among

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others, also affect in a different way the internal evolution of companies in terms of HR practices. Each case study seems to be particular and unique and merits a specific analysis.

Figure No 8.1 - Model applied to the sample

0%

Zone 1
Ethnocentric Basic HR policy Discriminatory practices

Level of Cultural Exposure (Factor of Cultural Diversity)

Zone 2
Ethnocentric Developing PM policy Potentially discriminatory practices

1.0

0.0

Zone 3
Polycentric / Geocentric Sophisticated PM policy Formal EO policy [1] [2]

Zone 4
Geocentric / Polycentric HRM policy MD approach 100%

[3]

Level of Expansion (Percentage of Foreign Turnover / Bedrooms) [1] Global Hospitality Company [2] Contract Catering Co. [3] International Hotel Co.

Despite these limitations, this might be used as a conceptual map rather than a mathematic model. The possibility of analysing the transition of organisations from one zone to another while expanding abroad might be possible by refining the dimensions described or identifying new elements that explain accurately this corporate behaviour. Then, this model might become a starting point in the process of understanding the evolution of organisations within a multicultural context.
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8.3.

Centricity approach

The evolution of the organisations researched has common elements that merit to be evaluated. These companies started as small businesses that grew up rapidly through the acquisition of other organisations. This take-over strategy added a great number of units that, subsequently, were absorbed by the corporate culture. In this process, the three organisations researched (all of them are western-oriented) continue implementing home practices abroad, demonstrating the strong influence of the national culture of their country of origin. This corroborates previous research discussed in the first part of this study. The ethnocentric approach developed by these companies, particularly in connection with the HR practices, has not changed despite a large number of employees from dissimilar cultural values are joining massively them around the world. In other words, senior executives seem not to be conscious that cultural differences cannot be approached effectively by replicating an ethnocentric management style.

8.4.

Human Resource Management or Personnel Management

Organisations researched seem to be adopting more sophisticated HR practices. This is visible in the way they have allocated large budgets and assigned a great number of professionals to their HR departments at all levels as well as the importance given to issues such as selection, training, career progression, communication, motivation, welfare and staffs commitment. In an industry where en-suite facilities and marketing strategies tend to be more similar than ever and hospitality services are promoted as experiences rather than products, the human factor seems to be able to make the difference. However, it might be suggested that despite these firms claim to be conscious about the importance of HR as one major element of the business success, the reality behind this approach is different. The pressure for improving financial results that allow companies to stay alive in a competitive market, the shortages of skilled employees in the first world

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and the increasing expansion beyond the home borders and subsequently the diversity and complexity of the business, appear to be the real reasons to adopt these practices. In short, this more enlightened approach to HR is a reaction to companies marketing and financial needs rather than a new perspective to the human factor. Additionally, constructing a coherent and strategic policy in the long-term regarding their workforce has not achieved yet, as ownership and in turn corporate culture have changed frequently over the time. This take over strategy has been predominant so far in these organisations making more difficult to link HR practices and corporate goals.

8.5.

Equal Opportunities or Managing Diversity

The data obtained during this research indicate a high level of geographic expansion and culture exposure of the companies researched. This latter factor is evident in the large number of cultures and nationalities represented in the sample. In this process, the organisational response to this multiculturalism has been the adoption of an EO policy in all of the case studies. However, there was no evidence of consistent or articulate procedures supporting the spirit of this policy. Designing handouts of fair practices and discussing commonalities of the workforce reflect a reactive approach to cultural diversity, which is strongly influenced by a legal frame rather than a deliberated interest in valuing cultural differences in connection with strategic goals of the company. Neither adopting a genuine approach to EOP nor linking labour markets cultural diversity to corporate strategy appear to be the approach adopted by these companies. In fact, no participant could explain or comment whether or not monitoring data provided on application form was used for the purpose of ensuring a fair process or achieving quotas of ethnic minority groups in their workforce. Similarly, no one of the companies seems to manage statistics regarding the participation of ethnic minorities in the organisational structure. What is more, no instruments seem to exist to measure the effectiveness of this

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EO policy. This picture coincides with the findings of the CREs study despite it was carried out more than a decade ago. The concept of Cultural Diversity for these three firms is limited to repeat a number of nationalities represented in their workforce. This approach seems to be enough to demonstrate the companys concern and effectiveness of their policies on this issue. However, neither the ethnic minorities role within organisations nor cultural differences of an increasingly diverse workforce are priorities for these hospitality organisations yet.

8.6.

Labour market perception

There seems to be a consensus among the participants about labour markets. Attracting graduates from peripheral areas, relaxing legislation regarding immigration and improving candidates skills were pointed out as major factors affecting the industry. However, these concerns are predominantly associated to the business needs rather than a long-term plan to build a better and diverse workforce. In fact, while the first two concerns aim to deal with shortages of skilled employees, the last one focuses on financial matters (decrease of turnover). In summary, organisations researched are not interested on assimilating national cultures in their process of expansion, conversely they seem to be driven by economic opportunities that allow them to grow rapidly while succeeding in diverse geographic locations.

8.7.

Selection methods

As analysed in the previous section, companies researched have developed neither a coherent EOP nor a basic MD approach regarding cultural diversity. Supporting this statement, no evidence of cultural sensitivity of the selection methods was found during this research. Ethnic origin is not taken into account when candidates from diverse cultural backgrounds go through the selection process. A traditional approach to select operative

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staff (using a single interview) and the use of sophisticated methods to select skilled employees were predominant in the sample However, the use of more sophisticated selection methods does not mean necessarily more cultural sensitivity. Evidence of this situation is that selection methods are not adapted or evaluated according to candidates cultural background. What is more, in terms of validity, no instruments exist to measure effectiveness of these methods when selecting candidates from diverse cultural background. They are accepted unquestionable as totally reliable and fair, despite one of the Managers recognised difficulties experimented by some ethnic minorities in relation to managing time during the selection process. The concept of cultural sensitivity of selection methods is still approached by implementing the same method under the same conditions to all applicants, regardless nationality or cultural backgrounds. This reflects a complete disregard for this issue, which seem to be understood as equality rather than diversity. Similarly, interviewees claimed that all applicants perform in a similar way, though previous research and the data provided by them indicate most of the successful skilled candidates are Anglo-Saxon. This lack of cultural sensitivity of the selection methods plays against all those who do not share these values making harder the access of ethnic minorities to management posts.

8.8.

Fair or unfair selection methods?

To this point, the arguments discussed in the review of literature and the findings of this research provide important elements in order to answer the central enquiry of this study. Putting together all the pieces of this puzzle, it might be possible to argue that despite there is not a deliberate policy to select candidates from a particular ethnic origin, the selection methods used by these organisations are clearly discriminatory against non-Anglo-Saxon candidates. The selection methods are not culturally sensitive, as organisations have not developed a real and coherent approach to managing cultural diversity. This seems to be a fashionable concept rather than an explicit corporate policy. In doing so, it might be also suggested that
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some type of negligence is evident, as these firms have not adopted most the CREs recommendations on this issue yet. The recurrent use of a single interview to select operative staff, the limited use of panels during interviews, the absence of instruments to measure the effectiveness of selection methods, a lack of adaptation and assessment of results according to the candidates cultural background, the use of no monitoring data for practical purposes together with an ethnocentric management style, embody a disappointing picture of the practices developed by these hospitality organisations regarding selection methods. Similarly, the participants overall positive perception about the selection methods cannot hide the fact that they clearly favour one cultural group. Selection methods designed according to Anglo-Saxon values and applied by western ethnocentric companies can only lead to accentuate the predominance of Anglo-Saxon candidates.

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CHAPTER No 9 Assembling the puzzle

9.1.

Introduction

In the last stage of this study, a discussion is offered in attempt to bring theory and research findings together. Arguments, previous research and trends are placed in the same scenario in order to assemble this puzzle. This is followed by the respective conclusions in connection with the research enquiry and recommendations suggested to practitioners and potential candidates willing to join the hospitality industry. Then, topics of further studies are put forward in the interest of encouraging other researchers to explore this interesting theme. In the end, final reflections are presented as a retrospective analysis of this study as a whole.

9.2.

Discussion

The hospitality industry has become into a central player within the global economy because of its strong contribution to the global GDP and importance as large employer. This sequential process of internationalisation, which seems to be more a reaction to favourable economic and politic conditions rather than a planned action to grow at a global scale, is also associated to fast changes in the global labour markets. They include demographic factors, an increasingly global migration and shortages of skilled employees in the developed countries. This new multicultural context is challenging traditional practices. Therefore, industry seems to have started to move towards the development of more sophisticated approaches capable of facing and succeed within a global market while managing a workforce culturally more and more diverse.

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However, even more refined practices are bounded by national culture. The evidence discussed in this study is clear in supporting the argument that national and ethnic cultures influence strongly not only peoples behaviour but also management style, which in turn affects corporate practices. Large hospitality organisations moving overseas usually claim to adopt a global strategy regarding their corporate practices (as the participants of this research), though the evidence indicates they have opted to replicate home practices in their process of geographic expansion. Implementing home practices in other parts of the world might be creating certain cultural resistance because of the incompatibility between home (corporate) and host (workforce) cultures. The fact that western groups own most of the large international hospitality organisations (as it is the case of all companies researched) and consequently implement Anglo-Saxon values when expanding abroad embody potential discriminatory practices against those non-Anglo-Saxon candidates willing to join the industry at different geographic locations. Interestingly, the support given for the hospitality industry to this process of exporting western-values, has been carried out using an undercover ethnocentric approach. Indeed, the predominance of the Anglo-Saxon culture (values) at corporate level was a constant element across this research. Examples of this situation are the use of English as corporate language, the under-representation of ethnic minorities at managerial level and the overrepresentation of Anglo-Saxons selected to join the graduate programmes of the companies researched. In the long term, the consequence of this policy could lead to a short circuit in the process of expansion as the encounter of more dissimilar cultures increases the risk of failure. In the same way, not only the industry is expanding overseas. Well-educated and skilled employees are also moving with their cultural baggage from peripheral areas to core regions of the world because of social and economic reasons. This process that has generated an unbalanced and millionaire drain of human capital between exporting and importing countries, makes more complex this phenomenon. Organisational response to cultural diversity, enfolded within the two traditional approaches (e.g.: EOP and MD), has not evolved in a coherent direction, as this has neither completely understood nor effectively developed. In fact, despite all companies researched
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claimed to develop an EO policy as part of their corporate mission, they seem to be still in the journey to cross the grey line between implementing and developing a formal policy regarding this issue. Managing cultural diversity seems to be a fashionable topic for practitioners that, though, have not approached this issue successfully to the extent that academics and graduates coming to the industry believe. As mentioned previously, hospitality organisations are approaching cultural diversity from a legal perspective (personified in an EOP) instead of a positive attitude to value cultural differences. Unfortunately, MD, which is considered to be a more sophisticated approach to manage cultural diversity and claimed to be predominant in large hospitality groups, also reinforces the individualism as central dimension of western culture. Paradoxically, despite ethnic minorities have traditionally constituted the main source of the industry to fulfil its labour needs; they are being affected by both an unsuccessful approach to cultural diversity and a widespread ethnocentric management style. The predominance of economic interests have not allowed hospitality organisations to recognise that this culturally diverse workforce needs to be linked to corporate strategies. Large hospitality organisations are concentrated on growing rapidly through both acquisitions of other firms and the expansion to new and profitable markets while disregarding completely this issue. In this process, ethnic minority groups joining the industry around the world are currently recruited by ethnocentric hospitality organisations through more sophisticated selection methods. In fact, the literature review and findings of this research seem to confirm the movement of the industry (particularly large international hospitality organisations) towards more sophisticated selection methods. However, more refined selection methods are not necessarily more culturally sensitive. Previous research discussed in this study point out that despite the implementation of some basic practices can assist in reducing potential cultural bias of selection methods, discrimination against ethnic minority groups is a reality in the hospitality industry. These more enlightened selection methods continue to be limited in use and with a questionable level of validity regarding selection of candidates from diverse cultural backgrounds. What is more, non-Anglo-Saxon candidates

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seem to experiment negative reactions when participating in the selection process, causing a direct effect on their performance and in turn on the final assessment. This phenomenon continues while the industry seems not to be conscious about the cultural limitations of their selection methods. This new approach to use more sophisticated techniques clearly symbolises a response to market needs rather than an innovative approach to the human factor

9.3.

Conclusions

The arguments and evidence discussed in this study address to conclude there is a lack of cultural sensitivity of the selection methods used by the hospitality industry. This is embodied in the predominance of Anglo-Saxon values in the design and implementation of the selection process. The challenge of selecting effectively cross-cultural employees have not to been achieved by the industry yet. What is worst, the development of selection methods culturally sensitive is not included in the industrys priorities. The industry seems not to be conscious about the cultural limitations of their selection methods. The hospitality organisations continue replicating home practices (ethnocentrism) abroad, though the use of selection methods in the way they do at home may not be effective in other locations (cultures). The fact that in this multicultural context recruiters and candidates may not share the same values and, in turn, approach the selection process in a different way, support the argument that disregarding cultural differences lead to discriminatory practices. Inexperienced cross-cultural Managers applying home practices overseas and non-AngloSaxon candidates affected by alien selection techniques, represent a clear encounter of two cultures that inevitably has an effect on effectiveness of selection process. As highlighted previously in this study, the industry may be selecting those candidates who are closer to corporate (national) culture and no necessarily the right candidates.
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The jump from theory to practice has not taken yet, deepening the problem of discrimination against the ethnic minorities, who paradoxically, are becoming the main source to fulfil the hospitality industrys labour needs. As long as this reality does not change, ethnic minority groups will continue being relegated to secondary roles.

9.4.

Recommendations

Despite none of the selection methods can ensure total effectiveness and validity in terms of cultural sensitivity and as predictor of future job performance, the hospitality industry needs to update their techniques and procedures to deal with this new reality. The development of fair methods to select candidates from dissimilar cultural backgrounds needs to be part of the industry agenda. Only implementing programmes and initiatives according to the recommendations offered by previous research (CRE) will be possible to recover the lost time. In this process, the industry also needs to realise that within a multicultural context traditional organisational practices, accepted truths and long held values are been challenged by new individuals coming into the hospitality industry. Hence, it might be the time to re-evaluate, review and, where necessary, change the industry practices. Just doing this, the industry may ensure to select the right candidates regardless nationality or ethnic origin. Equally, talent, personal qualities and professional skills need to become more important than nationality when recruiters select candidates from different cultural backgrounds. Thus, selection methods offering high validity and cultural sensitivity are not only desirable but also necessary if the industry is to be successful within this global and multicultural labour market. Finally, not only hospitality organisations but also candidates from diverse cultural backgrounds willing to join the industry may need to develop a new approach to the selection process. A proactive attitude might be leaving their cultural baggage behind and bringing to the forefront the qualities that prospective employers with a dissimilar cultural
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background and not necessarily sharing the same values, are looking for. Emphasising the unimportant attributes and not stressing those qualities valued by recruiters and possessed by applicants may not be the best approach to this process.

9.5.

Further studies

It is evident that there is a lack of research focused on staffing in a cross-cultural environment. Hence, further studies should be addressed both to identify how the dimensions of the cultural differences impact on the selection methods and to evaluate objectivity and cultural sensitivity of the techniques used by the hospitality industry to select candidates from dissimilar ethnic origins. The design of a consistent conceptual model attempting to understand the interaction of internal and external factors affecting the selection process, is also necessary if the hospitality industry is to meet the expectations of an increasing multicultural workforce and maintain its leading role in the global economy.

9.6.

Final reflections

The retrospective analysis includes strengths and weaknesses of techniques and procedures used to carry out this study. On the one hand, the use of participant observation constituted an innovative approach to the research enquiry. The challenge of exploring candidates reactions and fillings within a real scenario allowed researcher to understand accurately the extent to which the phenomenon researched can affect individuals. This worked well despite the number of difficulties associated to the process itself. On the other hand, the convenient selection and small size of the sample, and the unsuccessful strategy to access key companies information represented the weaknesses of this study. The inclusion in the sample of no independent hospitality companies nor other sectors of the industry limit considerably the findings of this study, as size and ownership
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of hospitality organisations are directly associated to the adoption of more sophisticated practices. In connection to this, it is not possible to establish the degree of precision and the level of confidence provided by sample size, as the entire population was not taken in account. Finally, researcher was unsuccessful on collecting key information from the companies researched. Contacting other levels of the organisations and assuming a more persistent attitude to interviewees could have assisted to improve the quality of findings and in turn discussion of this study. However, limitations in terms of time and access were fundamental in this case.

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 Hospitality Training Foundation HTF (1996), Facing the Future - Report 1996: Catering and Hospitality Industry, London: International House. Hospitality Training Foundation HTF (1999), Key fact and Figures- Labour Market intelligence: Hospitality Industry, London: International House. Ineson, E. and Brown, S. (1992), The Use of Biodata for Hotel Employee Selection, International Journal of Contemporary Hospitality Management, Vol.4, No.2, pp8-12. Johnson, D. and Kleiner, B. (2000), A Comparative View of Employment Testing, Management Research News, Vol.23, No.7/8, pp99-102. Kandola, R. and Fullerton, J. (1994), Diversity: More than just an Empty Slogan, Personnel Management, November, pp46-50. Kelliher, C. and Johnson, K. (1997), Personnel Management in Hotels-An Update: A move to Human Resource Management?, Progress in Tourism and Hospitality Research, Vol.3, pp321-331. Kossek, E. and Lobel, S. (1996), Managing Diversity, Oxford: Blackwell Publishers. Lievens, F. (2002), An examination of the accuracy of slogans related to assessment centres, Personnel Review, Vol.31, No.1, pp86-102. Lucas, R. (1995), Managing Employee Relations in the Hotel and Catering Industry, London: Cassel. MacHatton, M., Van Dyke, T., Steiner, R. (1997), Selection and retention of managers in the U.S. restaurant sector, International Journal of Contemporary Hospitality Management, Vol.9, No.4, pp155-160. McGunnigle, P. and Jameson, S (2000), HRM in UK Hotels: a focus on commitment, in: Gennard, J. (ed), Employee Relations, Bradford: MCB University Press, pp403-422. McHenry, R. (1997), Tried and tested, People Management, Vol.23, January, pp32-37. Melamed, T. and Jackson, D. (1995), Psychometric instruments: potential benefits and practical use, Industrial and Commercial Training, Vol.27, No.4, pp11-16. Moran, R., Harris, P. and Stripp, W. (1993), Developing the Global Organisation, Houston: Gulf Publishing Co., pp160-169. Mwaura, G., Sutton, J. And Roberts, D. (1998), Corporate and national culture an irreconcilable dilemma for the hospitality manager?, International Journal of Contemporary Hospitality Management, Vol.10, No.6, pp212-220. Newton, D. and Kleiner, B. (1999), How To Hire Employees Effectively, Management Research News, Vol.22, No.5, pp15-21.

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 Papadopoulou, A., Ineson, E. and Williams, D. (1996), The graduate management trainee preselection interview, Personnel Review, Vol.25, No.4, pp21-37. Paraskevas, A. J. (2000), Management selection practices in Greece: are the hospitality recruiters any different?, Hospitality Management, Vol.19, pp241-259. Peppas, S., Peppas, S., Jin, K. (1999), Choosing the right employee: Chinese vs. US preferences, Management Decision, Vol.37, No.1, pp7-13. Pine, R. and Go, F. (1996), Globalisation in the hotel industry, in Kotas, R., Teare, R., Logie, J. Jayawardena, C. and Bowen, J. (eds), The International Hospitality Business, London: Cassel. Pizam, A. (1993), The International Hospitality Industry: organisational and operational issues, London: Pitman. Pizam, A., Pine, R., Mok, C. and Shin, J. (1997), Nationality vs. industry cultures: which has a greater effect on managerial behaviour?, International Journal of Hospitality Management, Vol.6, No.2, pp127-147. Powell, S. and Wood, D. (1999), Is recruitment the millennium time bomb for the industry worldwide, International Journal of Contemporary Hospitality Management, Vol.11, No.4, pp138-141. Roper, A., Doherty, L., Brookes, M. and Hampton, A. (2001), Company Man meets International Hotel Customer, in, Roper, A. and Guerrier, Y. (eds), A decade of hospitality management research, Newbury: CHME Threshold Press, pp14-36. Roper, A., Brookes, M., Price, L and Hampton, A. (1997), Towards an Understanding of Centricity: Profiling International Hotel Groups, Progress in Tourism and Hospitality Research, Vol.3, pp199-211. Sanders, M., Lewis, P. and Thornhill A. (1997), Research methods for business students. London: Pitman Publishing. Schneider, S. and Barsoux, J. (1997), Managing Across Cultures, Essex: Prentice Hall Europe. Simons, T. (1995), Interviewing Job Applicants How to Get beyond First Impressions, The Cornell Hotel and Restaurant Administration Quarterly, December, pp21-27. Stansfield, M. and Day, J. (1998), A rewarding experience or just sheer torture? A study of participant experience of advanced selection techniques, Career Development International, Vol.3, No6, pp252-259. Thomas, D. and Ely, R. (1996), Making Differences Matter: A New Paradigm for Managing Diversity, Harvard Business Review, September-October, pp79-90.

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 Torrington, D., and Hall, L., (2000), Human Resource Management, Harlow: Prentice Hall. Torrington, D., Hall, L., Taylor, S. (2002), Human Resource Management, Essex: Pearson Education. Veal, A.J. (1992), Research Methods for Leisure and Tourism A Practical Guide, 2nd ed. London: Pearson Education Limited. Waryszak, R. and Bauer, T. (1993), Front-office staff Selection Techniques, International Journal of Contemporary Hospitality Management, Vol.5, No.4, pp25-28. Woods, R. and Sciarini, M. (1995), Diversity Programs in Chain Restaurants, The Cornell Hotel and Restaurant Administration Quarterly, June, pp18-23. Worsfold, P. (1999), HRM, performance, commitment and service quality in the hotel industry, International Journal of Hospitality Management, Vol.11, No.7, pp340-348.

Websites references Contact Catering Co.s Web Site (2002), About Us, Retrieved on 15th July 2002 from the World Wide Web: http://www.contract-catering-co.com/company-mission.cfm Global Hospitality Companys Web site (2002), Corporate Information, Retrieved on 22nd July 2002 from the World Wide Web: http://www.global-hospitality-company.com/corporate.cfm International Hotel Co.s Web Site (2002), Company Background, Retrieved on 19th July 2002 from the World Wide Web: http://www.international-hotel-co.com/index.htm United Nations (2002a), 2000 and 2001 estimates of world and continental population Population and Vital Statistics Report - 2001, Retrieved on 3rd May 2002 from the World Wide Web: http://www.esa.un.org/unsd/seriesa/introduction.asp United Nations (2002b), Report on the world social situation - 2001, Retrieved on 6th May 2002 from the World Wide Web: http://www.un.org/esa/socdev/rwss/overview.html

Personal communication Recruitment Co-ordinator of Global Hospitality Company (2002), Personal communication, 31 May.

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 Resourcing and Graduate Recruitment Manager of International hotel Co. (2002), Personal communication, 7 June. U.K. HR Development Manager of Contract Catering Co. (2002), Personal communication, 21 May.

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APPENDIX No 1 SELECTION METHODS - DEFINITIONS

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APPENDIX No 1 SELECTION METHODS - DEFINITIONS

1.

Assessment Centres (ACs)

According to Garavan and Morley (1998) Assessment Centres are structured combinations of assessment techniques that are used to provide a wide-ranging, holistic assessment of each participant. This method evaluates during one, two or even three days to candidates using a mixture of selection techniques such as interviews, in-basket exercises, situational exercises, group discussions, presentations and a variety of tests (verbal reasoning, critical thinking, general intelligence, spatial reasoning and personality) (MacHatton et al., 1997; Torrington et al., 2002). The aim of this method, used by Germany, UK and US during the second World War for selecting agents and operatives, is to come to an agreement of rating along each dimension / competency (Torrington et al. 2002; Garavan and Morley, 1998).

2.

Biodata

MacHatton et al (1997) defines this selection method as a technique that uses the biographical information provided by candidate in order to predict future performance. This information is usually extracted from application forms. However, a more complex version of this method indicates that organisations could take a large sample of successful employees in a specific post and try to establish those common characteristics to all of them. Then candidate bibliographical information is compared with the profile of good performers in the interest to detect some correlations (Torrington et al., 2002). A more detailed definition describes Biodata as: a systematic method for assessing job applicants on the basis of personal biographical history factors, for example, past behaviour, interests, attitudes and demographic background. The process involves giving each of a group of selected items of information pertaining to an applicants personal history a numerical
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weighting to produce a score for an individual. Personal history factors that most predict future job success for the job in question have the most weight in the scoring process. Ineson and Brown (1992: p8)

3.

Interview

Interview is a selection method used by nearly all organisations (Hodgetts and Luthans, 1997). In fact, a study carried out by MacHatton et al (1997) indicated that 90% of surveyed organisations used interview as selection method. It remains popular especially because of its moderate cost, less time consuming (in comparison to assessment centres), social function and high acceptability to interviewees and interviewers (Barclay, 2001; Berger and Ghei, 1995). Traditional and structured interviews are two different approaches to the same issue. On one hand, traditional (unstructured) interviews have been used extensively by organisations due to they are considered to be flexible and natural. However, some evidence suggests that unstructured interviews are less effective as predictor of future job performance because of their low validity coefficient (Garavan and Morley, 1998). On the other hand, structured interviews have been suggested to be more reliable than traditional interviews if they are planned and conducted properly. Well-structured questions taking into account job description are important in improving interviews in terms of content while the use of multiple and anchorade scales, training for interviewers and rating in a one-by-one basis are relevant when evaluation is regarded. Both content and evaluation increase dramatically the capacity of structured interviews to predict future job performance as well as reduce bias (Bonn and Forbringer, 1992; Simons, 1995; Barclay, 2001). Situational and past behaviour questions have been designed in order to structure interviews. Situational interview aims to identify potential actions based on hypothetical scenarios. Behavioural questions seek to know reactions to previous experiences based on the statement that the best prophet of the future is the past (Barclay, 2001). Previous
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researches indicate there is a slight difference between both of them as predictors of future behaviour. Past behaviour seems to be better predictor than future intentions (Simons, 1995).

4.

Self-assessment or Realistic Job Previous RJP

This method aims to provide candidates with more information about job requirements. It can include videos, written descriptions, question sessions and some kind of pre-work (site visits). In the process the candidate can evaluate his own suitability to the work while the company is able to evaluate how candidate fit into the organisation and what is his potential perform (Bonn and Forbringer, 1992; Torrington et al., 2002; MacHatton et al, 1997)

5.

Test

Other well-known selection method is testing. According to Berger and Ghei (1995) testing is defined as systematic procedures for examining employment candidates and drawing methodical inferences, based on objective criteria, about their suitability for employment. The most important types of tests include psychometric test and personality test. A brief description of them is provided as follows: 5.1. Personality Test

This type of test aims to assess candidates skills and to understand his thoughts and reactions in different scenarios and environments (Johnson and Kleiner, 2000). It also attempts to identify personal predisposition and traits affecting not only his own behaviour but also his ability to influence the behaviour of others (Berger and Ghei, 1995). 5.2. Psychometric Test

Within this concept it is included those tests aiming to measure candidate potential to develop general mental abilities (i.e. mental tests) or specific abilities (i.e.: special aptitude test, trainability test, attainment test) (Torrington et al., 2002; Melamed and Jackson, 1995). Some authors claim that psychometric tests are useful in identifying candidates
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personal development, weaknesses and strengths in relation to job requirements and the ability to build teams (Melamed and Jackson, 1995).

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APPENDIX No 2 CULTURAL LIMITATIONS AND POTENTIAL BIAS OF SELECTION METHODS

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APPENDIX No 2 CULTURAL LIMITATIONS AND POTENTIAL BIAS OF SELECTION METHODS

1.

Application Form

Habitually the first stage in the selection process, the application form embodies the information bias syndrome. This is the difficulty of the candidates to provide great amount of information to decision makers, in the way they require it and they are accustomed to interpret it. This is particularly evident when recruiter does not share the same cultural background (Kossek and Lobel, 1996). Similarly, Torrington and Hall (2000), citing the Race Relations Act, suggest that in some cases application forms require a level of English in excess of job requirement, constituting unfair discrimination against those whose mother tongue is not English and yet who may be suitable employees.

2.

Test

This popular method of selection used in China for more than two thousand years and later during the World War I and II in the U.S. army recruits, is surrounded by criticism because of the overall low validity, time consuming in terms of validation procedures and potential bias (Torrington et al, 2002; Kossek and Lobel, 1996; Johnson and Kleiner, 2000). Tests normed or standardised in one country and implemented in other country / culture may be not only ineffective but also culturally unfair with candidates. This is mainly due to three factors: the ethos of testing measures aptitudes from a different perspective (values), may be more alien to other cultures and is based on unrepresentative populations. As confirmed by McHenrys study (1997), variations between answers to the same personality tests in different countries can appear as a result of cultural differences if individuals answers are not compared against the right norm.

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Interestingly, this study also recognises that ability test used in recruitment were not developed with ethnic minorities in mind. Reinforcing this argument, Kossek and Lobel (1996) claim that the use of cognitive ability tests has potential adverse impacts on minority groups. As a consequence, different academics (Torrington and Hall, 2000; Moran et al, 1993; Berger and Ghei, 1995) have suggested that in a multicultural work environment, written tests need to be prepared differently and considered in the appropriate context. Low context and high context cultures interpret the meaning of questions in a different way and certain cultures may be more successful in written tests as opposed to being successful on the job. Even the best selection methods work well only on average. A candidate who does poorly on a test may not necessarily make a less effective employee than one who does well (Bergher and Ghei, 1995: p31). So, according to these authors, testing can offer high validity and be a fair method to select people regardless race, religion or cultural background if they are designed meeting the cultural differences. Finally, the potential of litigation has led to some sectors of the Hospitality Industry to be cautious when using tests as a selection method. In fact, some HR professionals surveyed by Berger and Ghei (1995) consider testing to be able to send wrong signals to candidates, especially because of the adverse impact on some groups of the society. Hence, if it is used, it should not be employed as a unique method of selection.

3.

Interviews

Interviewing is one of the selection methods preferred by the hospitality industry. It is a fact, despite some academics (Dickinson and Ineson, 1993; Berger and Ghei, 1995) have reported that reliability for interviews in general, and unstructured interviews in particular is poor and questionable. Limitations and potentially discriminatory practices associated to interviews include the halo syndrome and stereotyping. According to Simons (1995) when an interviewer likes
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a candidate (halo), he behaves and conducts the interview in a different way. Recruiter tends to confirm his first impression by giving a positive assessment to the interviewee and generalising candidates abilities from one to other areas. In support of this statement, Torrington et al (2002) suggest that during the first five minutes interviewer usually accept or reject an interviewee. Then, he only looks for evidence that supports his early analysis. Kossek and Lobel (1996) go so far as to say that the pre-interview impressions, affects interviewers final evaluation. In the same way, stereotypes also influence perception of interviewer. Despite candidates capacity and abilities, the interviewer having a stereotype will see in the light of the stereotypy held (Torrington et al, 2002). However, it is virtually impossible to avoid stereotype-based assumptions because they come naturally (Schneider and Barsoux, 1997, Simons, 1995). As suggested by Hofstede (1991: p253):stereotypes are half-truths and as such they are undesirable in intercultural communication: half the truth is not enough. Finally, some recent research indicates that the use of panels including members of similar background to the candidates tends to give more positive assessment than individuals do (Simons, 1995). Hence, continuing with the traditional approach (one-to-one interview) represents a potential discriminatory practice, which contradicts the CREs principles on this issue.

4.

Assessment Centres (ACs)

Cultural differences also need to be taken into account when designing and evaluating candidates performances during ACs process. Lievens (2002: p90), citing Goldstein et als study (1998), claims that in the case of ACs, whites candidates can score higher on average than other ethnic groups as a result of the type of exercise employed in this technique: differences varied by the cognitive component of the exercise: ACs exhibited more race bias, if they consisted of a larger number of exercises with a cognitive component. This study supports the findings of Doherty (1998) and Roper et als research (2001) in relation to the reluctance of Asian candidates (and students) to participate in-group exercises during selection process.
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Conversely, Lievens (2002) states that in terms of racial bias ACs are reasonably unbiased providing high validity not only for job potential but also for job performance. MacHatton et al (1997) and Appelbaum, Harel and Shapiro (1998) also support the assumption of moderate to high validity coefficients of the ACs as predictors of managerial success despite that content validity, and construct validity has not been demonstrated by previous researches yet. Finally, some academics (Garavan and Morley, 1997) are more cautious and suggest that predictive validity of ACs is variable and go so far as to define this method as an elaborate charade. Similarly, Torrington et al (2002) claims that more than high validity of the AC, which is considered not very consistent, there is a high face validity. It means a feeling that AC is a fair method to select.

5.

Biodata

Although biodata is an innovative selection method with an interesting future within the hospitality industry, its potential has not been developed fully. Ineson and Brown (1992), citing Studies of Reiley and Chao (1982) and Muchinsky (1983), suggest that biodata has a high level of accuracy, validity and reliability. However, these authors also recognize that this method has been neither developed fully nor statistically validated. Therefore, it should be implemented in parallel with other techniques in order to test its predictive validity while screened and refined carefully to ensure no bias occurs against ethnic minority groups In conclusion, the evidence addresses to reinforce the argument that selection methods used by the hospitality industry have been designed and implemented according to recruiters values and not to candidates. As recruiter and candidate do not necessarily share same cultural background (values), this practice could result in using wrong selection criteria, which could not be selecting the right people, but the people who is closer to the corporate values (home national culture).

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This discussion should also lead practitioners and employers to realise they may need to modify, adapt or combine the selection methods in order to ensure their culturally sensitivity when recruiting applicants from dissimilar cultural backgrounds.

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APPENDIX No 3 STRENGTHS AND WEAKNESSES OF THE RESEARCH METHODS

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APPENDIX No 3 STRENGTHS AND WEAKNESSES OF RESEARCH METHODS

QUESTIONNAIRES Strengths Weaknesses 9 Allow to collect responses from a o Offer only one chance information. large sample to collect

9 Require less skill and sensitivity to o It is a time-consuming technique (planning, designing and analysing data). administer in comparison to semi / in-depth interview o It is not a good technique for explanatory or researches involving large number of 9 Useful for either descriptive or open-ended questions. explanatory purposes PARTICIPANT OBSERVATION Strengths Weaknesses 9 Allow researcher to feel the o Observer bias may appear. experience rather than just observe o Ethical considerations may appear in terms it. of revealing the identity of the researcher. 9 All data collected are virtually o To be an observer and an element of useful observation at the same time may lead to difficulties in terms of recording / collecting data. o The role of participant as observer may be very time-consuming. o Gaining access to processes may be Assessment Centres). IN-DEPTH INTERVIEW Strengths Weaknesses 9 Useful to explore in depth a general o Validity and reliability depend mainly on area of researchers interest. interviewees disposition to supply relevant information. o Record data / information may be difficult. o Involves a sort of complex logistical and resources issues.
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information and complex (e.g.:

NON-PARTICIPANT OBSERVATION Strengths Weaknesses o This method just covers a part of the data 9 Reveal information, which most collection process because it focuses on participants ignore because to them quantifying behaviour (how often rather it is too mundane or irrelevant. than why). o Data are slow to collect and timeconsuming. o Access to the organisational process may be difficult. o Reliability (further replicability) depends partially on internal HRM practices (organisational culture). Veal (1997); Saunders et al (2000); Easterby-Smith et al (2002)

Sources:

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APPENDIX No 4 IN-DEPTH INTERVIEW STRUCTURE

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APPENDIX No 4 IN-DEPTH INTERVIEW STRUCTURE

Research Process In-depth interview structure

Aims 1. Identify the corporate HR policy regarding cultural diversity of work force. 2. Identify the methods used by the hospitality industry to select graduates from different cultural backgrounds and level of success when taking part in the selection process. 3. Identify the sources of candidates (nationality, ethnic origin) to fulfil companys labour needs. 4. Establish the participation of ethnic minorities in the organisation structure at different levels (percentage, kind of job). 5. Analyse the perception of labour markets at industry and corporate level. Questions A. Corporate management style 1. How is the Human Resource team structured at national level? (Regional, global) 2. What is the corporate language? (Relation units-headquarters) 3. What is the companys approach to managing work force diversity? 4. How is this approach structured / developed? (Affirmative Action, Equal Opportunities, Managing Diversity) 5. Is there some instrument or mechanism to measure the results of this policy / approach? If any, how do you consider these results? B. Selection methods 1. What are the selection methods used by the company to fulfil its labour needs at different levels?

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2. Is there any difference between the methods used to select graduates and nongraduates? 3. Is this selection process part of a corporate global / regional / national strategy? 4. Is there some kind of adaptation across nations? C. Selection process and ethnic minorities 1. What is the percentage of graduate candidates (of ethnic minority groups), participating in selection process? What is the rate of success? 2. What are the nationalities / ethnic origin of these candidates? What proportion are domestic ethnic minorities? How many are immigrants? 3. How do you consider the effectiveness of the selection methods to select graduates of different cultural backgrounds? How is this effectiveness measured? 4. How do you consider the performance of candidates of Anglo-Saxon cultures in comparison with candidates of other cultures? Is there any difference? If so, who are the most successful? D. Role of minorities at corporate level 1. What is the percentage of ethnic minorities at different levels of the organisation (in the U.K., region, world)? How do you consider these figures? 2. What are the nationalities / ethnic origin of these employees? E. Perception of labour markets 1. What are, in your opinion, the main current trends regarding the labour markets in the hospitality industry? 2. How do you consider that Hospitality Industry should deal with the multiculturalism of the work force? (Policies, strategies, actions) 3. Do you consider that labour markets supplies the labour needs of your company at all levels? If not, what do you think it is the reason? F. Documents required 1. Job / personal specification (Graduate Programme) 2. Application Forms 3. Policy statements
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APPENDIX No 5 LETTER OF INVITATION TO PARTICIPATE IN THE RESEARCH

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APPENDIX No 5 LETTER OF INVITATION

Guillermo Herrera Cotuit Hall, Room ML18 Pullens Lane, Headington, Oxford, UK OX3 ODA 3rd May 2002

Mr. XXXXX UK HR Development Manager

Contract Catering Co.

Dear Mr. XXXX I am international student attending the MSc International Hotel and Tourism Management Programme at Oxford Brookes University (OBU). As a Masters student, I am now involved in the research for my final dissertation. This project focuses on the increasing importance of the multicultural workforce within the hospitality industry as a key factor of success. Specifically, this dissertation concentrates on the selection methods used by the industry to appoint graduates from diverse cultural backgrounds. As part of this project, I am conducting a research involving diverse international groups based on the United Kingdom. In depth-interviews have been selected as my main research method. Hence, I would like to interview a human resource manager with responsibility for graduate/skilled employee recruitment in your company. I am approaching you because your company already has a strong relationship with Oxford Brookes University and I hope my findings will be of interest to you. The findings, conclusions and recommendations of this study will be shared with you and the information provided will be managed in strict confidentiality. I would welcome the opportunity to discuss this project with you in more detail and I will follow this letter up with a phone call in the next few days. Yours sincerely,

GUILLERMO HERRERA PINILLA

MSc in International Hotel and Tourism Management Programme School of Hotel and Restaurant Management Oxford Brookes University - UK E-mail: 01263601@brookes.ac.uk / guillermhp@hotmail.com

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APPENDIX No 6 INFORMATION SHEET

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APPENDIX No 6 INFORMATION SHEET

Dissertation Are the selection methods used by the Hospitality Industry culturally sensitive? Mr. XXXXXXXXX UK HR Development Manager

Contract Catering Co.

Dear Mr. XXXXXXXX You are being invited to take part in a research study. Before you decide it is important for you to understand why the research is being done and what it will involve. Please take time to read the following information carefully This study is carried out in the interest of analysing the increasing importance of the multicultural work force within the hospitality industry. Specifically, this dissertation concentrates on the selection methods used by the industry to appoint graduates from diverse cultural backgrounds. You are being invited to participate in this study because of the leading role of Compass Group within the industry and the strong relationship with Oxford Brookes University (OBU). The participation consists of an in-depth interview with the human resource manager in charge of graduate/skilled employee recruitment in your company. Other participants in this study include international hotel groups and contract catering service companies. This research has been approved by one of the Research Ethics Officer for the School of Hotel and Restaurant Management at OBU. All information collected during this research will be kept strictly confidential and the privacy and anonymity will be ensured in the collection, storage and publication of research material. The data collected will be used only for the academic purpose of this dissertation. The findings, conclusions and recommendations of this study will be shared with you. The results of this study will be published on July and an executive report will be sent to all companies participating in this project. As required, researcher and supervisor of this study will provide further and ongoing information and will welcome the opportunity to discuss the results in more detail. Contact phone numbers are provided in the consent form. Finally, I would like to thank you for taking part in this study and support my effort and interest to build up new approaches to the cultural diversity of the labour force within the hospitality industry as a key factor of success. Sincerely, Guillermo Herrera Pinilla MSc H&TM Programme School of Hotel and Restaurant Management Oxford Brookes University.

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APPENDIX No 7 CONSENT FORM

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APPENDIX No 7 CONSENT FORM

Dissertation

Are the selection methods used by the Hospitality Industry culturally sensitive?

Researcher:

Guillermo Herrera Pinilla Master Student MSc in International Hotel & Tourism Management Programme School of Hotel & Restaurant Management Oxford Brookes University Cotuit Hall ML18 Pullens Lane, Headington Oxford, OX3 0DA United Kingdom Telephone +44 (0) 1865 462921 01263601@brookes.ac.uk

Supervisor:

Liz Doherty Principal Lecturer in Human Resource Management School of Hotel & Restaurant Management Oxford Brookes University Gipsy Lane Campus Oxford, OX3 0BP United Kingdom Telephone +44 (0) 1865 483810 ejdoherty@brookes.ac.uk

Please initial below 1. I confirm that I have read and understand the information sheet for the above study and have had the opportunity to ask questions. 2. I understand that my participation is voluntary and that I am free to withdraw at any time, without giving reason. 3. I agree to take part in the above study. 4. I agree to interview being audio recorded.

_________________________________ Name of Participant

_______________ Date

____________________ Signature

_________________________________ Name Researcher

_______________ Date

____________________ Signature

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APPENDIX No 8 TRANSCRIPT OF AUDIO-RECORDED INTERVIEW

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APPENDIX No 8 TRANSCRIPT OF AUDIO-RECORDED INTERVIEW

Interviewee: U.K. HR Development Manager Contract Catering Co. Personal communication, 21st May 2002

Researcher: How is the human resource team structured at national level? Interviewee: within Compass we have atCompass is in 90 countries ok, the 90 countries are divided into divisions ok, sometimes those divisions are discrete to one country other times these divisions are discrete to a number of countries. For example U.K. & Ireland is one division, U.S.A. is one division, but then another division is something like Southern Europe, South America and Austral-Asia is a division. It depends how developed the market is within the division as whether is subscripted to a country or to more than one country. In U.K., your specific question, we have a U.K. HR Director ok, who reports to the worldwide HR Director who is part of the executive board ok, reporting to the U.K. HR Director are divisional HR Directors who represent the different parts of the business. So for example, part of our business is education, healthcare, retails, hotels so each one of these have a HR Director and as HR Directors, report to the U.K. HR Director, who is part of the U.K board. It is terribly complex I hope that simplifies it. Within each divisionwithin the U.K. is an HR infrastructure. So we would have an HR Administrator, an HR Officer, HR Managers, they report to the HR Director together with the Training Managers. Those divisional HR Directors report to the U.K. HR Director. Does that make sense? ok. R: A big team I: Right, so thats how we organise it. Try to keep as simple as possible! R: The structure is the same across the nations or
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I: Yes, ok yeah that model is replicated around the world R: The second question iswhat is the corporate language in Compass group? I: Corporate language? OK, English. R: Yes I: English It is the commonality that we can find in terms of language across 90 countries. So the corporate language is Englishpartly also fuelled by the fact that our operating system is Microsoft. So it is a British based company operating a computer system on Microsoft and the easiest common language denominator across 90 countries. R: What is the company approach to managing workforce diversity? There is a specific policy about this issue? I: Could you repeat me the first part of the question again? R: What is the company approach or policy to managing workforce diversity? I: The fact that we trade in 90 countries makes it very, very important that we have the most diverse workforce. People simply because Compass looks at the world-wide workforce which is 300,000 people, as being interchangeable logistically and also looks at its policy towards employment to have people for careers rather than through employment opportunities. The idea is if you join from cradle to the grave all you do is move around the world and between or different operating companies as your career develops, that is the goal. In terms of that we want the most diverse workforce we can but in terms of sex, gender, religion, race and skills. So we trade in ninety countries then couldnt be a sufficiently diverse workforce for us really looking for the most diverse force we can find. R: How is this policy developed across nations? Or it is a really complex process?

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I: Yes, it is extremely complex, first thing is that we try to link our operating systems together wherever we can. We try to link the operation systems such as finance, marketing, HR and procurement and operations together into a common first-of-all computer operating company but with a series of common policies and objectives, ok. Also were developing international communications structures with the view that anybody can access, anybody elses information with a view to adopting the best practices themselves. Evidence of that for example is that in two weeks time weve got a conference in Vienna, 450 of the senior Compass executives from around the world. Every single country will be represented with the view of discussing commonalties on a whole range of issues but particularly we are going to refer to our vision and values so trying get the whole of Compass world-wide senior executives chiefs. So our vision values, what are our objectives, how we want to structure the strategy surrounding these objectives and how do we harness the motivations of the workforce towards achieving those objectives: and how we can communicate into them. That is pretty much the strategy. There is lots and lots of evidence of people moving around the world with Compass. You know, the guy who runs the American operation is British. The guy who runs Southern European, South American and Australian Division is Spanish. The guy who runs our Central European operation is French and so on. The idea is we got highly mobile diverse and culturally [] group of people within the business. Thats the idea. We trade in 90 countries you need such a linguistic, cultural and yes advice you can get ultimately mobility of the workforce as well. R: There is some specific policy in terms of Equal Opportunity Policy? I: There is! I cant quote it to you word for word but certainly there is and that it is stated in our mission of the balance scorecard let me find it for you. If you look at that, we work through an operation called the [] scorecard where we have four key missions that should be depicted around the room. We got three, one is balanced performance, one is operation excellence, one is being preferred employer and I am trying to find the other benefit point Its focused on being preferred employer why be employer of choice and so on there are, there are someyou know there are strategies, competencies, developing people, [] satisfaction, focus in training and promoting from within. The promotion from within is particularly important to the moment because you know what is going on in terms of the worldwide workforce. Recruiting quality people is difficult enough, retaining them is the key mission. One, to reduce cost stop inventing the wheel, reduce cost but also be
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able to provide consistency in terms of standard and service. So its about recruiting good people, developing them and maintain them are our key strategies world-wide and the retention issue is important. But so to give an example of that, we have Graduate Management Developing Programme in England., We would recruit to that at least 40% if not 60% of those will be non-U.K. nationals. We will validate work permits for them to undertake the training in the U.K. or with the idea that when once the work permit expires we can move those people back to their mother countriesto undertake promoting roles or senior roles for us or alternatively move them into other countries where they are comfortable but we can also achieve bonafide work permit status for them. Next door we have an Indian national, we validated today two-years permit for her to undertake the Graduate Management Programme with plan of the end of the two-year programme to move [] back to India or Asia within our business, thats the plan. R: Are there some instruments or mechanisms to measure the results of this policy? In terms of percentage of participation of minorities or I: There is, but I am trying to wonder where I would access it. You are asking me to substantiate with some statistics are you? I just need to do a little bit of work that sort of stuff will exist in our business, I need to find out where because I am not particularly dealing with these things but my boss knows where it is. R: Which are the selection methods used by the company to fulfil its labour needs at different levels? I: Thats extremely complex, how many days have you got? Very clearly we have selection, we have assessment and selection process is that vary dramatically from the junior levels to extremely senior levels. Certainly always an interview process, you are asking me for mechanisms? ok, certainly always an interview process, certainly always follow up with references, in some technical positions trial, ok, trail days, trail periods. Certainly from junior management upwards we start to move through assessment centre where we test to pick up a range of skills up to interview techniques and we also subscribe psychometric testing.

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R: You mean, AC, psychometric testing for junior and senior level? And at operative level interview I: Yeah, interview, very often trial and followed up with trial. Trial days, interview and follow through with references, check up references. R: Is this selection process part of a corporate global strategy or there is some adaptations across nations? I: There is some adaptation across nations. It depends entirely on the complexity of the labour market and the availability in the labour market as well. In Asia, for instance, the labour market isnt so difficult as it is in the western world. In terms of numbers of people, who regard the hospitality as a good career. What is the attitude to hospitality as a good career in western world is somewhat different as is in the eastern world, which makes recruitment a little easier in east as is in the west and that reflects the complexity of the selection procedures. R: In that particular case, what kind of methods do you use? I: Because Ive never been involved in selection processes in the East I am finding it difficult to comment. I repeat again, to go back to a colleague of mine or you know and so on to later come back to you. R: Which are the nationalities or ethnic origins of those candidates, specifically in the U.K., applying to the Graduate Programme. You mentioned that 40%, 60% they are nonU.K. residents. But the nationality of this percentage or ethnic origin I: What is the percentage? Again difficult to quote that, let me try and think through this years or last years. Specifically, what country or origins or just classify them around the world? R: Around the world, for example, if most of them are European, or come from Asian countries

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I: So we can classify them: European, Asian, South American and so on? Asian, South American, European thats North, Central and South, the U.K., Ireland and pretty much thats! R: Most of them are domestic ethnic minorities or immigrants? I: Both, yeah. R: How do you consider the effectiveness of the selection methods to select graduates from different cultural backgrounds? I: Whilemost of the countries in which we are recruiting are multicultural anyway and our clients are multicultural. So it is bitit is very similar to our catering, you know, being the contractor for the Olympic games. One of the reason why we were selected to be the contractor for the Olympic games is we were able to represent in our workforce most of the cultures that actually were competing in the Olympic games that is seen as a big plus. So, for example, if you are a Russian athlete and who was gonna be in Sidney and you are expecting that Russian athlete perform typically to the best yet you are moving athlete from Russia, from Russian food, from Russian culture from their own language and you are putting him into a huge disadvantage. Lets say, to an Australian athlete it is important what we could provide. Lets say among our workforce [] in 90 facilities management provisions for them, people who came from Russia, which we did. So we moved, and this was one of the huge advantagesOne of the few examples of what actually does it. We moved 70 people from England to Sidney to give comfort to the British participants We our moved people from our Russian business, South American business, North American business and European and Asian business to Sidney little pockets of 70, 80 hundred at a time with the view we would have a truly multicultural and diverse workforce to provide for a multicultural and diverse people within the Sidney Olympics. And we did exactly the same thing again in the Salt Lake City winter Olympics in the U.S.A., this winter just gone. We were specifically selected for some of these reasons as a contractor for that. And that generally is our policy.

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The world is a multicultural environment and therefore we need to provide a multicultural workforce to be able to provide this to clients. This is one of the unique selling propositions in marketing terms we as company actually have. You know, day before yesterday I was in one of our clients in the city here, which boasts its got 38 nationalities working within the building, 5,500 employees, 38 nationalities, well, our workforce there has got 20 nationalities. So we truly reflect the cultures so when these clients saying you know we want South American food, we want Chilean food, we want European food, we want ethnic food, the expertise is there to be able to do it! It is the fact that were employing the Asian Oriental Cookery School in Hackney at the moment to do on-site training in authentic Asian, cuisine for us. Not cuisine Indian but Indian, Thai, Chinese, Japanese and so on, it is an attempt by us to try all these skills across the workforce to suit a multicultural client base. But also transfer some multicultural skills within the company across the company, it that makes sense to you? R: Particularly, how this effectiveness of the selection methods is measured in the company? I: I need to talk to the people that are doing the selection but we are trying to be equitable. So then, as representative across the business as we can... There are restrictions like always in that respect. We preclude to appoint somebody for whom we know we cant get the work permit. Actually, they and if it is tell us we are not going to be able to get the work permit for that person then that makes a decision for you. However, we are currently involved in lobbying of the immigration service and we are currently in negotiations with the immigration service regarding the relaxation of certain immigration rules and regulations. We attended a meeting at that respect last week to relax immigration regulations to allow us to be able to provide a workforce. But ordinarily-perhaps it might not be considered for work permit [] R: Students and graduates who want to stay and acquire some international experience I: Yes, sure

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R: It is a limitation How do you consider the performance of the candidates so far of Anglo-Saxon cultures in comparison to candidates from other cultures? I mean, in the selection process I: When you talking about selection process you specifically refer to graduates? R: yes I: Okmost of the graduates that we employ in the UK are graduates that are studying at U.K. centres. OK, for example weve interviewed a number of candidates from Oxford Brookes this year and whilst they might not work have work permits designated for the U.K. but they have been studying in the U.K. for the last 2, 3 years. Well, if a student who has been studying in the U.K. at a fairly high level for 2, 3 years, one is reasonable reassured that their linguistic skills are fairly sophisticated. That tends to level the playing field. So you havent got to devise a separate mechanism for non U.K. nationals to do case studies analysis or presentation analysis, one can turn round and say, ok youve all been studying in same universities at a level playing field therefore they wont gonna happening disparity in the application process. The application process is psychometric testing, individual and panel interviews, a presentation and possibly a trial and everybody will go through that. R: Do you consider that there is no difference between the performances of I: Sure, never. None what so ever R: What is the percentage, again it is a little detailed, butof ethnic minorities at different levels of the organisation, I mean at operative level, management level? I: What is the percentage of the total work populationI dont know! Again, I need to look at the statistics. I couldnt even hazard a guess because I have been in the business a lot I would say to you its amount of ethnic minority groups that we employ within the business whether the immigrants whether they are first and subsequent generations are groups within the country. It is strongly representative but specific percentages I need to consult colleagues who deal with that sort of thing.
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Well, we got a 100,000 in the payroll in England but down into about 30 different grades of employees and one just needs to look at the actual statistics, I could give you a quite misleading picture there on the basis of what I think rather than what I know. R: What are the nationalities in the case of U.K. ethnic minorities of these employees? Which in these moments are employees of Compass group? I: Give me the question again Repeat the first part R: What are the nationalities or ethnic origins of the employees here in the U.K.? The structure of the workforce in the U.K I know in this moment percentages are difficult to access but what is the participation of minorities at administrative and operative level? I: Right through out company, one of the most exciting things about working for Compass is literally the ethnic diversity within the business. And you know, I am meeting tomorrow for example, not only am I in the Asian and Oriental Cookery School in Hackney but when I actually think of the people within that meeting there are Indians, Malaysians, Chinese, South Americans, Europeans, Irish and the U.K., Africans. And some of those people are agents of ours. Just to give you some idea of the sheer diversity. It is one of the exciting to work for the company. R: Which are in your opinion the main current trends regarding the labour markets within the hospitality industry in general? I: Well, One is sheer of volume of people, the labour market is extremely short low birth rate over the last 20 years the fact that retirement age is getting shorter, shorter and shorter or younger, younger and younger. For example, in Compass you can retire at certain time, you make the decision, you have got to retire at 63, you can retire at 55, you make the decision when you retire according to how well you have provided for yourself financially. The problem with shooting yourself on the foot, to be competitive and to get the best quality labour you have to offer one of the most attractive benefits packages. One part of the benefits package is the retirement issue and the pensions issue. So we devise a programme where people can retire between the age of 55 and 63. So we recruit you of your Master Programme of Oxford Brookes. We can have you within the company for the
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next 25 years coming from junior manager to senior executives and when you become one of the best senior executives close 45 if you like, when the experience starts to pay off ten years later you retire. Ok, its like shooting yourself on the foot because we could have you for other eight years with other investment. Which is one of the arguments. Now, the difficult within this is there are more people jumping off at an earlier age and now they are joining at the bottom end as a result of 20 years low birth rate track. So, the key issue in the hospitality workforce at the moment is firstly a shortage of labour and shortage skills ok; and secondly retention. Retaining the workforce. If it is to be very competitive! Giving an example, we have a very large [] at Heathrow Airport. 65,000 people work in Heathrow Airport. People change jobs for 10 pence an hour. So it is doing a circle. For 10-pence an hour job changes, you dont change places you work, you dont necessary change the type of work youre doing youve just changing employers. So we dont want that happen otherwise there is spiral of valuable resources being spent on training and retraining and induction rather than on developing and taking services to new clients and it just makes consistency of quality and standards extremely difficult. So we would much rather work very hard work on retention, and thats one of the key issues in our HR strategy at the moment is retention. R: Retention How do you consider that the hospitality industry should deal with these multiculturalism of the labour market? I: How do we deal with it? In which way? In terms of what? R: The multiculturalism of the labour market is a fact. What kind of strategies needs to be developed by the hospitality industry to deal with this situation, regardless nationalities. You mentioned retention I: Yeah! R: But additionally there are some limitations in terms of age, in terms of demographic changes, for example in developed countries.

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I: Ok, one of the interesting things, it is that I think that the hospitality industry personally has to wake up to the fact that it needs to have a longer term view towards employment. The hospitality industry seems to look at the employment as cannon fodder. You understand the term cannon fodder? Whatyou know, somebody believes because weve done something wrong or that they dont like them and they need somebody to replace them. There isnt somebody to replace them. So, if we are trying to provide a quality of service and consistency, youve got to work very hard or being a little bit more consistent. So think longer term, I think is one of the key issues. Secondly, it is be more culturally friendly. Realise that people often have a cultural and linguistics disadvantage and make some provisions to overcome it. For example we teach languages within our business with the view to providing greater equality among our ethnic minorities that are disadvantaged by not being able to speak the language well and therefore have additional hurdles in their career. But, there is a two-fold effect here. One, we want to teach people languages with the view that they have a better career for with us and therefore stay with us. As part of the retention strategy but also very keen to develop languages so that they can communicate with our clients better and provide a better quality of service. So it is those sort of things, recognising the difficulties that the ethnic workforce will have and helping them to overcome it, both from their perspective and but also by providing the quality and consistency that we need

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APPENDIX No 9 REPORT OF PHONE INTERVIEWS

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APPENDIX No 9 REPORT OF PHONE INTERVIEWS

1. Global Hospitality Company Interviewee: Recruitment Co-ordinator. Personal communication, 31st May 2002.

1.1.

Corporate management style

Global Hospitality Companys HR department consists of HR Officers (in charge of 3-4 units), HR Managers (6-10 units), Regional HR Managers at national level (i.e.: in the U.K. is divided in three regions: north, south and London area), Regional Directors at continent level and a HR Vice-president for each region of the world (i.e.: Americas; Europe, Middle East and Africa; and Asia Pacific). Two brands within the company replicate this structure. However, adaptations exist to tailor to the needs of other two brands. While one of them has one HR Manager per unit because of the large size of its units, the other is a franchise. This means that the company does not control HR department directly. In terms of the companys approach to managing work force diversity, Global Hospitality Company uses an EOP at corporate level, which is particularly applied to the selection process. This policy is reflected in the information required to candidates on the application form in terms of ethnic origin, marital status, disabilities and gender. Interviewee did not know whether or not this statistics were collected, analysed and used in somehow at national or regional level. Global Hospitality Company uses English as corporate language.

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1.2.

Selection methods

Global Hospitality Company employs several sources to contact candidates. Job centres, local advertisements, company website, recruitment agencies (exclusively to appoint management staff) and a provider of Internet are used to attract candidates. In terms of selection process, applicants to operative jobs are selected by means of a single interview and, for some posts (i.e.: waiters, barman) a short personality test is also used. Candidates to management posts are interviewed (face-to-face or by phone) and invited to an AC. Interviewee did not know whether other companys divisions replicate these practices. However, interviewee reiterates AC, for instance, is a method extensively used in the U.K.

1.3.

Selection process and ethnic minorities

Everybody is evaluated with the same rules said the senior HR manager of Global Hospitality Company when she was asked about the effectiveness of the selection methods to select graduates from different cultural backgrounds. According to her, the techniques implemented by this company allow to select the right people under the same conditions, equal treatment and no concessions. In relation to the number of participants from minority groups, interviewee mentions that, for instance, during 2001 one of out fourteen graduates selected to join the company was non-European (Brazilian). It was also pointed out that despite performance of these candidates was sometimes better than local applicants performance, the difficulties associated to the work permit limited their opportunities to join the company.

1.4.

Role of minorities at corporate level

In relation to this issue, interviewee excused to not provide this information, as this was not available to that moment. Though, interviewee considers, according to her experience, that the level of participation of minorities depends on the geographic area. For instance,
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she said, areas such as Birmingham present a strong presence of Asians employees because of the concentration of this type of immigrants in that region of the U.K.

1.5.

Perception of labour markets

A shortage of skilled employees such as kitchen staff, in general, and chefs, in particular, represent a great problem for Global Hospitality Company. The necessity of relaxing legal requirements (work permit) and the importance of updating candidates skills become in major factors affecting the industry. On the other side, low quality of the current candidates is pointed out a characteristic of current labour markets. As mentioned by interviewee, Company is not finding the calibre of people that we are looking for... Additionally, she mentions, while the company priority is to select potential General Managers (GMs), just 40% of candidates are interested to become GM. The remaining 60% of candidates want to specialise in one area of the business (marketing and HR, particularly). Finally, interviewee stresses the role of new professionals coming into the industry is changing. Hence, graduates needs to update their skills if they are to be successful in the industry. HR Manager of Global Hospitality Company recognises that company should move abroad in order to fulfil companys labour needs. However, if the restriction continues (work permit) will be more difficult to cover vacancies in the future. Similarly, interviewee states that company should be able to provide training to new managers and then send them back to their home countries, but while the programme lasts 24 months, the work permit offers just 18 months to immigrants. Finally, HR Manager highlights that few U.K. students are willing to take a degree in this subject (i.e.: hospitality, hotel, tourism, catering). As a consequence, company has tried to attract candidates from other European countries such as France.

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2.

International Hotel Co.

Interviewee: Resourcing and Graduate Recruitment Manager. Personal communication, 7th June 2002.

2.1.

Corporate management style

In the U.K. & Ireland Division, the HR department of International Hotel Co. includes five hierarchical levels: The first two, HR Administrators and HR/Training Managers are in charge of the HR procedures in a specific number of units that, though, can vary depending on the size of each property. HR Directors at national level (three in the case of this Division, e.g.: North, Midlands and South,) represent the next hierarchical level, while one Regional HR Director exists per each Division. Finally, a HR Vice-president, who is part of the companys executive board, leads the department at global scale. Unfortunately, the interviewee could not provide information about structure in the other Divisions (i.e.: Europe, Middle East & Africa; Asia & Austral-Asia and Americas).

2.2.

Managing cultural diversity

International Hotel Co claims to have an EOP approach. In connection with the selection process, this policy has been implemented through the design of a handout, which includes instructions related to the interview process. Advice about type of questions that must not be used during selection interviews is included in this document. The application form also includes an EO section in the interest of monitoring ethnic origin, marital status, disabilities and gender. The International Hotel Co.s workforce includes individuals from more than 70 different nationalities. However, neither instruments nor records are used to measure the effectiveness of this policy or the selection process. HR Director is responsible for monitoring them together with consultant firms, which are regularly hired to evaluate these practices.

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2.3.

Selection methods

The selection procedures of the International Hotel Co.s Graduate Programme are part of a global strategy that, though, is tailored according to the local labour market conditions. Open days and work trials, and a structured application form represent the first two stages of this process. Then, short-listing candidates are invited to take two ability tests (verbal reasoning and numerical ability) and attend a two-days AC. Finally, candidates' language ability is tested and references are checked during the last part of the process. Operative staff is selected by means of a single interview.

2.4.

Selection process and ethnic minorities

In terms of the ethnic origin / nationalities of those candidates selected in the U.K. & Ireland Division, there is a difference between operative employees and graduates. While most of candidates selected to join the graduate programme in 2001 were European citizens (no amount was specified), 14 of out 175 new unskilled employees were domestic minorities (i.e.: Indians, Pakistanis and Africans). The ethnic minorities occasionally experiment some kind of constraints in terms of managing time when participating in the selection process. However, this factor is no relevant in the overall performance of these groups in comparison to the Anglo-Saxons candidates. Evidence of this statement, it is the fact that participation of ethnic minorities at different levels of the organisation is considerable

2.5.

Role of minorities at corporate level

No information was provided regarding this issue.

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2.6.

Perception of labour markets

With reference to perception of labour markets, a shortage of skilled employees and the necessity of updating graduates skills embody the main concern of International Hotel Co. On the one side, the shortage of skilled employee has led the company to design new strategies in order to meet employees expectations and, in turn, increase both motivation and retention of the core staff. These long-term strategies include offering accommodation, organising social activities and providing language courses, among others. On the other hand, updating professional skills and academic qualifications of graduates coming into the industry also represent a challenge for the industry. A lack of cultural awareness, communication skills, training in selection methods and enthusiastic attitude were pointed out as characteristics to be improved by graduates if they are to be successful within the industry.

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APPENDIX No 10 APPLICATION FORMS USED BY COMPANIES RESEARCHED

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APPENDIX No 11 LETTER OF INVITATION TO THE CONTRACT CATERING CO.S OPEN DAY

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APPENDIX No 12 LETTER OF INVITATION TO THE CONTRACT CATERING CO.S GRADUATE MANAGEMENT ASSESSMENT CENTRE

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APPENDIX No 13 LETTER OF INVITATION TO THE STRUCTURED INTERVIEW

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