Table of Content

Page Number

1.0 Introduction………………………………………………………………………………...2

2.0 Literature Review…………………………………………………………………………..2

2.1 HRM in the Hotel Industry………………………………………………………………...2

2.2 The Attributes of Gen-Y…………………………………………………………………...3

2.3 The Practice of Recruitment……………………………………………………………….3

2.4 The Practice of Selection…………………………………………………………………..4

2.5 Business Strategy…………………………………………………………………………..4

2.6 Human Resource Management Model……………………………………………………..4

3.0 S.W.O.T and Pestle Analysis………………………………………………………………5

3.1 Opportunity………………………………………………………………………………...5

3.2 Threats……………………………………………………………………………………...5

3.3 Political…………………………………………………………………………………….6

3.4 Economy…………………………………………………………………………………...6

3.5 Business Strategy Selection………………………………………………………………..7

4.0 Recommendations on Recruitment Practice……………………………………………….7

5.0 Recommendations on Selection Practice…………………………………………………..8

6.0 Conclusion…………………………………………………………………………………9

7.0 References………………………………………………………………………………...10

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1.0 Introduction
The objective of this report is to analyse the practice of human resource management by
focusing on the aspect of recruitment and selection. This report address the literature reviews
concerning the hotel industry, the attributes of Gen-Y, the practice of recruitment and
selection, business strategy, and the human resource management model. Furthermore, in
order to provide a concrete understanding on the subject of recruitment and selection in the
hotel industry, a case study on the Grand Hotel is analyse based on the SWOT and Pestle
analysis. This final part of this report focus on the recommendations and conclusion.

2.0 Literature Review

Literature review is significant in providing information concerning the practice of human
resource management and the hotel industry. Nevertheless, a thorough study is conducted on
aspects concerning the hotel industry within the context of Malaysia, the attributes of Gen-Y,
and the strategy and model related to the practice of recruitment and selection.

2.1 HRM in the Hotel Industry

In managing a hotel, it is crucial for the management of the company to find the perfect fit
between company’s vision, society needs and market preferences (Boxall and Purcell, 2011).
A hotel that manage to identify the right society fit tend to triumph in the markets as
consumers feel more comfortable to visit and stay at the hotel. Therefore, despite the success
growth of a hotel chain, it is always critical for the management to analyse the culture and
identity of the location of each hotel. The hotel industry is considered as a highly-labour
intensive which is classified under the service sector (Chand and Katou, 2012). Nevertheless,
human capital represents a major resource and is considered as the key competitive advantage
for the growth of the hotel operation.

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2.2 The Attributes of Gen-Y
Currently, in the employment sector, the age cohort can be divided to three (3) categories
which are the Baby Boomers Generation, Gen-X and the Gen-Y (Cathy, 2011). Employees
that belong to the cohort of Gen-Y are the persons who born from the year of 1981 to current
year (Jeromy, 2011). These individuals tend to have a different work ethics compares to
previous generation. They are the people, who have a high level of familiarisation with the
technology, prefer to work independently, believe in equality and freedom among people
(Solnet and Hood, 2008).

This different attributes influence the nature of working environment. Managers need to be
aware with the characteristic of this generation and formulate policies that can help to unleash
the potential of this generation. In relating to the service sector, Gen-Y is the people who
select employment opportunity based on personal interest rather than the offer of salary. For
the Gen-Y, job satisfaction is the primary motivation factor for them to continue serves a
particular organisation.

2.3 The Practice of Recruitment

The manager of the human resource department is the key person to conduct the recruitment
process (Tang and Tang, 2012). The strategic role of the manager in planning and developing
the right team of employees for the growth and expansion of the company is significant. The
practice of recruitment can be done via two approaches which is the internal and external
practice. A normal process of external recruitment is often conducted through advertisement
in the local newspaper and internet (Hayes and Ninemeier, 2009). The concept of word-of-
mouth is also linked to the external approach of recruitment. The management of the hotel
encourages existing employees to spread the news on availability of job to their close
associates. This process helps in reducing the cost of promoting job advertisement through the
media.

The practice of recruitment is an ongoing process particularly for labour intensive sector. Due
to a high rate of employee turnover, most hotels tend to conduct a continuous recruitment
process (Alleyne, et. al., 2013). Therefore, advertisement and postings on the employment
opportunity associates with the hotel industry is easily tracked through the online and offline
media. However, for the managerial post, the recruitment of employees with high

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performance level is considered as the most viable method. This is known as the internal
approach (Ahmad and Zainol, 2011). Commonly, the human resource manager tends to
promote existing staff that have experienced in specific line of duty for the managerial posts
such as supervisor, leader and manager.

2.4 The Practice of Selection

Based on the recruitment process, a list of future employees is prepared for the interview
session. This is considered as part of the selection procedure (Ballantyne, 2009). Candidates
will be interviewed by the top management of a company in order to determine the suitability
of the position with the qualification and experience of the candidates (Hayes and Ninemeier,
2009). Among other approaches under the selection procedure is the tests, health and
reference check. A thorough selection process is significant in selecting the right personnel for
the right scope of work. Moreover, through selection process, employer will be able to
determine the right candidates that suits with the expansion plan of the company.

2.5 Business Strategy

One of the prominent business strategies is the classical approach which focuses on the
development of strategy according to the internal resources and the external environment of
the business. This strategy aims in developing competitive advantage based on cost
leadership, differentiation, and focus on the development of HR policies for the delivery of
added value to consumers. Differentiation strategy focuses on the delivery of “added value”
through softer human resources approach.

2.6 Human Resource Management Model

The contingency theory also recognized as the best-fit model is one of the prominent HRM
model which focuses on interlink between the human resource and organisation strategies.
According to this theory, it is significant for company to readjust and restructure human
resource management strategy based on the context of culture, technology, structure and
employee’s behaviour.

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The best-fit model is also correlated with the lifecycle model which specified business
development into four categories that is start-up, growth, mature and decline. Each stage of
development is significant as it require the management of the company to plan and execute
strategies in line with the direction of the company.

3.0 S.W.O.T and Pestle Analysis

In order to determine the most suitable practice of recruitment and selection for the Grand
Hotel, the S.W.O.T and Pestle analysis is conducted. However, the analysis is conducted on
selected aspect which is in terms of the opportunity, threat, political and economy.

3.1 Opportunity
According to the Eleventh Malaysia Plan, 2016-2020, the government of Malaysia projected a
total of 36 million tourists to arrive in the country by the year of 2020. This numbers is an
opportunity for the Grand Hotel to continue flourish in the market place of the East Malaysia.
This is because; the East Malaysia is regarded as one of the country’s main tourism
attractions. With the presence of three (3) branches, the Grand Hotel will have opportunity to
tap the potential consumers to visit and stay at the hotels.

3.2 Threats
One of the threats that the Grand Hotel might face is the increase of competition from other
hoteliers. The variation among products and amenities offered by hotels are marginal and
therefore with the increase number of hotels in a region, the level of competitiveness tend to
increase significantly (Maroudas, et. al., 2008). Therefore, it is vital for the Grand Hotel to
ensure the provision of the service quality offer by the company is at excellent level.

Furthermore, East Malaysia is considered as a new region for the Grand Hotel and its
management team. East Malaysia is a region that consists of people from numerous ethnicities
and it is different compared to the Peninsular Malaysia. As stated by Ekiz, et. al., (2012), the
hotel industry is a people business which the management of the human resources is a critical
agenda in ensuring the success of the company. As a new company, it is expected that the
company will face numerous internal issues due to the differences in term of the practice of

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culture and social interactions between staffs. Therefore, the inexperience of the management
team in managing a culture diversity group of employee is perceived as a threat for the growth
of the company.

3.3 Political
Political scenario in the East Malaysia is similar to the Peninsular Malaysia. Since
independence in 1957, Malaysia is a country that is well known for its political stability. This
stability is significant as it helps numerous businesses to continue flourish and develop in
Malaysia. Moreover, political stability in Malaysia has helped to attract higher Foreign Direct
Investments (FDIs) to numerous sectors such as the hotel industry. Nevertheless, this is
considered as a factor that is important for businesses to consider on expansion in Malaysia.

3.4 Economy
The economy of Malaysia is on the verge of expansion in reaching the developed nation
status. One of the aspects concerning the economy of Malaysia is the income level of the
people. In relating to the hotel industry in Malaysia, one of the key challenges is the lack of
attraction in attracting highly skilled workforce (Hecker, 2011). The primary reason for this
issue is due to the unattractive salary package offer by the industry. The average salary of the
hotel sector in Malaysia is RM1, 092.00 which is relatively low compared to other industries
such as the oil and gas sector (RM2, 521.00) and the finance sector (RM2, 123.00) (Eleventh
Malaysia Plan, 2016-2020). Moreover, for the same position neighboring countries such as
Singapore tend to offer higher remuneration package. Therefore, it is important for the
hoteliers to consider a higher salary in attracting and retaining the best talents.

Furthermore, the Malaysian government aims to receive a total of 36 million tourists by the
year of 2020 as stated in the Eleventh Malaysia Plan, 2016-2020. The tourism industry is
regarded as one of the main economic contributors in Malaysia. Moreover, East Malaysia is
regarded as one of the main region that attracts both local and international tourists due to its
unique cultural attributes, rain forest, beautiful beaches and islands. Therefore, it is significant
for businesses that involve with the tourism industry such as the hotel sector to focus on
expansion in line with the growth of the tourism industry in Malaysia.

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3.5 Business Strategy Selection
Based on the analysis of opportunity, threat, political and economy, the Grand Hotel should
adapt the classical approach strategy by focusing on the differentiation strategy. This approach
is significant due to the fact that the company is on the verge of growth at new region and
with minimum knowledge on the local cultural and attributes. Through this approach, the
Grand Hotel would be able to cope with the threat of business competitiveness and capture the
economic opportunity of the region. However, the main limitation in adapting this approach is
in terms of the employee’s behaviour. It is important to ensure that the selected employees
perform their duties at their best capability in line with the company’s vision and mission of
establishment. This softer approach of Human Resources can cause lower degree of teamwork
and low quality of service if not monitor closely by the management of the Grand Hotel.

4.0 Recommendations on Recruitment Practice

It is critical for the manager of the human resource department to identify the right talent for
the right position in penetrating the new markets of the East Malaysia. The management of
the Grand Hotel needs to be aware with the attributes of prospective employees based on the
category of the generation. In relating to the service industry, as of 2017 generation Y is the
cohort of generation that tends to fill in the employment opportunity. For the Gen-Y, job
satisfaction is the primary motivation factor for them to continue serves a particular
organisation.

Moreover, in the hotel industry, recruiting too few numbers of employees can affect the level
of service quality while hiring too many full-time staffs is a risk since the cost of labour is
regarded as the largest segment of the operation cost (Nankervis, 2010). Therefore, in relating
to the Grand Hotel, it is suggested that the company follow the classical approach which
focuses on the development of strategy according to the internal resources and the external
environment of the business. This is due to the fact that this strategy aims in developing
competitive advantage based on cost leadership, differentiation, and focus on the development
of HR policies for the delivery of added value to consumers.

It is suggested for the Grand Hotel to conduct an external approach in recruiting staffs for the
East Malaysia branches. As a new region for the company, it is significant for the Grand Hotel
to ensure a certain percentage of its labor force is equipped with the local people. Therefore, it

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is mandatory for the company to conduct job advertisement in the region. In line with the
issues face by the hotel industry in Malaysia on the shortage of talented employees, it is
important for the Grand Hotel to offer an attractive salary package in attracting the talented
workforce. It is possible through an attractive offer, the talented employees from the
Peninsular and the East Malaysia whom currently working with the other hotels are lure to
join the Grand Hotel workforce and therefore this can help to ensure a success practice of
recruitment by the Grand Hotel.

5.0 Recommendations on Selection Practice

It is important for the management of the Grand Hotel to determine the right number of
personnel needed to operate at the three (3) new branches in the East Malaysia. Moreover, as
a newly established branch, it is significant for the Grand Hotel to attract the talented and
experienced workers in managing the hotels (Yang, 2011). Therefore, the best-fit model is
suggested for adaptation by the Grand Hotel. According to this theory, it is significant for
company to readjust and restructure human resource management strategy based on the
context of culture, technology, structure and employee’s behaviour.

As a company that currently on the verge of growth, the life-cycle model suggests on the
importance to select employee that have the ability to perform their duty according to the
needs of the company. It is significant for the company to selects individuals with innovative
ideas, willing to perform better and have keen interest with the hotel industry. Thus, it is
important to conduct the selection approach in as systematic manner that starts with the
interview process. A face to face interview can help to provide the management with more
detailed perspective on the prospective employees. The selected staffs would need to undergo
the screening tests in order to determine the capability and suitability of their experience with
the responsibility of the job.

6.0 Conclusion

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As a conclusion, the expansion of the Grand Hotel to the East Malaysia can become a
successful idea through an effective planning in recruiting and selecting future staffs of the
company. The Grand Hotel must adhere to the local culture and the attributes of the people in
order to ensure market acceptance. Based on the literatures of past studies and researches, it is
suggested that the Grand Hotel to conduct a methodical approach in recruiting and selecting
staffs for the newly established branches in the East Malaysia. It is suggested for the company
to follow the classical approach strategy and the contingency model in executing the
recruitment and selection process. It is suggested to conduct recruitment process via the
internal and external approaches. Through an effective process, it is projected that the
company can achieve an unprecedented growth in the East Malaysia region.

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