Abstract
This research was funded by Kemenristek DIKTI in 2019 Abstract This study aims to examine the strategic Human Resource Management (HRM) on organizational performance and enrich the scientific field of organizational performance. There is still not much research on organizational performance in the hospitality industry. Research locations in Malang Raya include Malang City, Malang District and Batu City (Indonesia). The research design is quantitative experimental. Research respondents were hotel personnel managers or assistant managers who worked for more than one year. Each hotel is represented by one respondent. The study population was 117 hotels. The method of determining the sample is a census. Questionnaire as an instrument to collect data. Data analysis techniques using description analysis and linear regression. The results of the research prove that strategic HRM has a significant effect on organizational performance and a rewards system is highly needed by employees when an industry is in a highly competitive position. Keywords: strategic HRM, organizational performance, reward system, productivity, hospitality DOI : 10.7176/EJBM/11-36-04 Publication date: December 31 st 2019
Highlights
In the current decade, hotel organizations face a complicated situation and high competition, so that the role of human resources remains a mainstay of a hotel (Madera et al, 2017), the marketing activities of the hospitality industry are highly dependent on communication technology
HR Management of the hotel industry in Malang Raya according to managers' perceptions is still not full toward the target point of an organization's performance
Hotel managers agree that the key to the success of a hotel is the knowledge of employees, the reward system and communication between employees
Summary
Hotel organizations face a complicated situation and high competition, so that the role of human resources remains a mainstay of a hotel (Madera et al, 2017), the marketing activities of the hospitality industry are highly dependent on communication technology. Face-to-face interactions between employees and customers in terms of (1) service quality, (2) maintaining customer loyalty, and (3) satisfaction (Baum, 2015; Tracey, 2014) being a strategic activity for the hotel industry. These three points show that human resources are the key to the success of a hotel business. Hotels need a strategy to create and maintain service quality, customer loyalty, and satisfaction in order to win the competition. The explanation of how strategic HRM to create organizational performance in the hospitality and tourism industry is still not much (Madera et al, 2017). Strategic HRM focuses on implementing the company's HRM system and organizational performance (Huselid and Becker, 2010)
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