The Role of Human Resource Systems and Competitive Strategies in Hospitality Organizational Performance in Kenya

Abstract

The past decade has witnessed increased scholarly interest in the effects of human resource systems on organizational performance. However, the focus has now shifted towards the nature and causes of these outcomes. Consequently, a consensus is emerging that informed understanding of the interaction between organizational strategy and human resources will be significant in accounting for these empirical outcomes. A cursory glance at the human resource practices in Kenyan hotels suggested limited evidence of the use of functional flexibility and greater reliance on numerical flexibility. In Kenya, there is no readily available record of empirical research done on choices of employment systems along criteria similar to functional and numerical flexibilities. This study is aimed at investigating the relationships between human resource systems, competitive strategies, and business performance in the Kenyan hotel industry. The research was conducted in Nairobi and Mombasa whereby the population mainly comprised managerial and non-managerial employees drawn from the hotels selected in the aforementioned cities. Purposive sampling was used to select hotels while stratified sampling was applied to obtain 160 participants to whom questionnaires were administered. Data was analyzed using chi-square goodness of fit test, Kruskal-Wallis one-way analysis of variance, and descriptive statistics. The research revealed that functionally flexible human resource systems in conjunction with differentiation strategies are associated with high organizational performance, whereas numerically flexible human resource systems and cost reduction strategies are linked with low organizational performance. Additionally, the research equally found out that independent hotels pursued numerically flexible human resource systems in conjunction with cost reduction strategies whereas chain hotels applied functionally flexible human resource systems and differentiation/focus strategies.