Assessment of efficiency of manual and non-manual human resources for tourist hotel industry

Abstract

PurposeIn past literature, employee has been extensively utilized as input in most data envelopment analysis (DEA) studies, but different labor types are identically defined to be the same input factor without a specific assumption for their heterogeneity. The influence of manual and non-manual labor utilization on performance also has not been investigated in hotel efficiency analyses. The purpose of this study is to assess inefficiency indices derived from manual and non-manual labor, and analyze the influence of labor utilization on hotel’s operational efficiency.Design/methodology/approachBased on the different features of the two labor types, performance indicators are evaluated through the hybrid DEA model.FindingsMore than 32 per cent of tourist hotels are evaluated as efficient and more than half the hotels have an efficiency score lower than the average. The author evaluated the inefficiency caused by radial inputs that have a greater influence on efficiency. This finding indicates that most hotels are efficient in their utilization of non-manual labor. The investigation of external factors shows that excessive utilization of non-manual labor results in a slight influence on operational efficiency across many non-chain hotels. The author also found the efficiency of non-manual labor utilization to be lower at hotels located in resort areas.Originality/valueThis study used the hybrid DEA model, in which non-manual and manual labors are assumed as non-radial and radial inputs, respectively, to evaluate efficiency. Finding the significance of heterogeneous assumptions for manual and non-manual labor types is the main contribution to the theory of hotel efficiency measurement.