The Impact of Globalisation on Human Resource Management in the Tourism Sector

Abstract

Globalisation is having a significant impact upon human resource management in tourism. To cope with the international intensity of competition brought about by globalisation, a knowledge-based economy has emerged to replace the previously dominant ‘Fordist’ mode of production. This knowledge-based economy utilises the skills of the workforce to the full, so creating a new way of thinking about human resource management and demanding a response on behalf of human resource managers. The driving forces of globalisation have impacted upon human resource management in a variety of ways. For example, on ‘the supply-side’, the penetration of technology and particularly use of the Internet in tourism has demanded different skills and competencies on behalf of employees and also impacted upon education and training needs. As company mergers and strategic alliances have become the medium for internationalisation so this has demanded a response on behalf of human resource managers to deal with employment-related consequences. In particular, larger companies are developing HRM policies and plans to take into account the need for relocation of employees and both social and cultural sensitivities for those working away from the home base. On ‘the demand-side’ the emergence of the ‘new tourist’ also has implications for human resource management. For example, a more discerning and experienced consumer is demanding higher quality products and service, so impacting upon training, both in-company and also in pre-job preparation in colleges. With globalisation too, have come new forms of tourism that utilise both the natural and cultural environments as a base for their product. This too impacts upon human resource management—for example in terms of the encouragement of the local involvement of indigenous peoples in employment, or the increased importance of guiding and communication competencies amongst eco-tourism employees. The thrust of this paper is to analyse the implications of globalisation for human resource management in tourism. Given the driving forces of globalisation outlined above, it is clear that the nature of employment in tourism is changing. The paper provides evidence of this in terms of the response of the private sector, governments and the trade unions. The paper also shows that response to globalisation varies across the tourism sector from the trans-national companies where international personnel policies are demanded to the small enterprise where the impact of globalisation is demanding a policy response by both national and international agencies.