The Effect of Sustainable Human Resource Management Practices on Customer Satisfaction, Service Quality, and Institutional Performance in Hotel Businesses

Abstract

The purpose of the current research seeks to explore the influence of sustainable Human Resource Management (HRM) practices on customer satisfaction, service quality, and institutional performance in inner-city hotel businesses. The information was gathered by studying Cypriot inner-city hotels. A quantitative method was used to gather data from HRM managers, staff, and patrons at every inner-city hotel under study. The questionnaires were specifically employed by the researchers. Based on the findings of this study, human resource management techniques have a substantial effect on customer satisfaction. The most important relationship was discovered between customer satisfaction and institutional performance, which is an important result. This finding has tremendous importance since it is the first time that it has been demonstrated in a study pertaining to the inner-city hotel business. Customer satisfaction is influenced by both HRM and service quality practices. Ultimately, this research supports the close association between HRM practices and hotel performance. Both human resource management methods and service quality practices have shown their impact on client happiness. Lastly, the research provides evidence for the close relationship between hotel performance and HRM practices.