Abstract
Hotel companies must receive an evaluation of hotel ratings every three years based on the Tourism Promotion Act and also they are not able to dismiss employees deliberately from Korean Labour Law. Firstly, this study extracted which HRM practices were associated with the evaluation criteria of hotel ratings based on the Tourism Promotion Act and Korean Labour Act. Secondly, this study looked at the opinions of hotel employees towards HRM practices on their organisation. Therefore, the purpose of this study was to examine the relationship between HRM practices which were from Korean legislation and organisational effectiveness by ownership types. This study employed a structural equation modelling approach and demonstrated that training and job security had a positive influence on distributive and procedure justice in international chain hotels and Korean owned hotels otherwise selection did not significantly influence both justices in both hotels. The procedure justice had a positive influence on job satisfaction and turnover intention in international chain hotel only. This study will help practitioners when they revise the Act by understanding which HR practices are important from the view of employees and also help management to review what type of HR practices should be provided to maintain or upgrade their status.
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