Managing Change and Workforce Challenges in Luxury Hotels: An HR Perspective.

Abstract

The hospitality industry is a dynamic environment characterised by constant shifting circumstances and change, which requires the commitment of staff. This paper explores the critical issues in change management in the luxury hotel sector. The purpose of this paper is to identify the organisational change management strategies that should be considered in change management in hotels to achieve successful operational performance. The focus is on how human resource management may contribute to implementing change and developing an accepting environment to reduce resistance. For the purpose of this paper, a qualitative research approach was used, as 12 in-depth semi-structured interviews were conducted with HR managers, departmental managers in a luxury hotel in London. The findings suggest that leaders sometimes struggle to deal with resistance to change in hotels, due to the labourintensive culture in the sector. Although, leaders trust their teams, they prefer to have more autonomy in the decision-making. Poor communication, limited staff engagement and staff involvement in the decision-making were found to be key issues in implementing change. This paper proposes that HR practices such as leadership development (transformational leadership) programmes, staff rotation, staff rewards, appreciation schemes, and effective communication may lead to effective change management. Applications of these challenges may provide some strategies on addressing the psychological impact of organisational change and therefore knowledge of ways to empower managers to deal with change and resistance to change.