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The Role of Human Resource Management in Hospitality Industry Performance in Nigeria

The Role of Human Resource Management in Hospitality Industry Performance in Nigeria

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DEDICATION

This research material, titled “The Role of Human Resource Management in Hospitality Industry Performance in Nigeria” is dedicated to God for His boundless grace and guidance. It is also a tribute to all computer enthusiasts whose contributions made my research journey smoother and enriched my documentation process, making the experience truly fulfilling.




ACKNOWLEDGEMENT

I am profoundly grateful to everyone who contributed to the successful completion of this project. I am especially grateful to my Supervisor (Name), the Head of Department (Name), and the Lecturers in the Department of Human Resource Management (HRM) for their invaluable guidance and support. I also acknowledge the contributions of authors and scholars whose works on The Role of Human Resource Management in Hospitality Industry Performance in Nigeria provided essential insights. Special thanks go to my study area (and any funding organizations, if applicable) for their financial assistance. I am equally thankful to stakeholders, including mentors, teachers, and colleagues, for their encouragement and support. Finally, I deeply appreciate my family and friends for their patience and unwavering support throughout this journey. Your contributions have been instrumental in making this research a reality.




PRELIMINARY PAGES


CHAPTER ONE

INTRODUCTION


    CHAPTER TWO

    LITERATURE REVIEW

    • 2.1 Introduction
    • 2.2 Conceptual Review
    • 2.3 Theoretical Framework
    • 2.4 Empirical Studies
    • 2.5 Research Gaps
    • 2.6 Summary of Literature Review

    CHAPTER THREE

    RESEARCH METHODOLOGY

    • 3.1 Introduction
    • 3.2 Research Design
    • 3.3 Population of Study
    • 3.4 Sampling and Sampling Technique
    • 3.5 Validation of Research Instrument
    • 3.6 Method of Data Collection
    • 3.7 Method of Data Analysis
    • 3.8 Questionnaire Administration
    • 3.9 Ethical Consideration
    • 3.10 Statistical Analysis

    CHAPTER FOUR

    DATA ANALYSIS, RESULT AND DISCUSSION

    • 4.1 Introduction
    • 4.2 Presentation and Analysis of Data
    • 4.3 Re-statement of Research Questions
    • 4.4 Test of Hypotheses
    • 4.5 Discussion of Findings

    CHAPTER FIVE

    SUMMARY, CONCLUSION AND RECOMMENDATION

    • 5.1 Introduction
    • 5.2 Summary of Findings
    • 5.3 Conclusion
    • 5.4 Recommendation
    • 5.5 Suggestion for Further Study

    REFERENCES

    APPENDIX A - “QUESTIONNAIRE”



    ABSTRACT

    This study explores the role of human resource management (HRM) in enhancing the performance of hospitality organizations in Nigeria, with emphasis on key HR functions such as recruitment and selection, training and development, motivation and compensation, and the challenges faced by HR managers in the industry. A quantitative approach was adopted using structured questionnaires administered to 150 respondents across various hospitality establishments. The findings revealed that 78.7% of the respondents agreed or strongly agreed that effective recruitment and selection significantly improve employee performance. Additionally, 81.4% confirmed that training and development positively influence service delivery, while 81.3% acknowledged that motivation and compensation enhance employee retention. Regarding challenges in HRM implementation, 80% of the respondents reported issues such as lack of funding, poor policy execution, and resistance to change. Furthermore, 81.3% of the participants affirmed a strong positive relationship between HRM practices and overall organizational performance. The results accent the strategic importance of HRM in driving operational efficiency, employee productivity, and customer satisfaction in Nigeria’s hospitality sector. The study concludes that hospitality organizations should prioritize strategic HRM implementation to sustain competitive advantage and long-term success. Based on the result obtained, it was recommended that hospitality organizations in Nigeria should prioritize the adoption of strategic human resource management practices to enhance overall performance.



    The Role of Human Resource Management in Hospitality Industry Performance in Nigeria


    1.0 Introduction

    1.1 Background of Study

    The hospitality industry is a significant contributor to global and national economies, offering employment opportunities and fostering economic development through tourism, accommodation, and food services. In Nigeria, the sector has experienced remarkable growth in response to increasing urbanization, international business activity, and a rising demand for leisure and tourism services. Despite its potential, the Nigerian hospitality industry is confronted with several operational challenges, including inefficient service delivery, inadequate infrastructure, high employee turnover, and inconsistent customer satisfaction (Umar & Abdullahi, 2021).

    According to Nickson (2013), human Resource Management, as a discipline and practice, plays a pivotal role in the recruitment, training, development, and retention of employees. It ensures that individuals are not only competent in their roles but are also aligned with the strategic goals of the organization. In service-oriented industries like hospitality, the performance of employees directly influences customer experience and organizational success (Nickson, 2013).

    In the Nigerian context, HRM within the hospitality industry faces unique challenges. Many hospitality establishments, particularly small and medium-sized enterprises (SMEs), do not prioritize formal HR structures due to limited financial resources, lack of awareness, or informal business operations. As a result, there is often a lack of standardized recruitment processes, inadequate employee training, poor working conditions, and weak performance appraisal systems (Okpara & Wynn, 2008).

    According to Okpara & Wynn (2008), human resource management (HRM) practices in the hospitality sector are often influenced by cultural, economic, and institutional factors. Many organizations in this sector face issues such as high staff turnover, inadequate training, and limited career development opportunities, which can negatively impact performance (Okpara & Wynn, 2008).

    Human Resource Management (HRM) according to Armstrong (2014) refers to the strategic and coherent approach to the management of an organization's most valued assets the people working there who individually and collectively contribute to the achievement of its objectives (Armstrong, 2014). in the context of the hospitality industry, HRM involves a wide range of functions such as recruitment, training, employee relations, compensation, performance management, and compliance with labor laws. The hospitality industry, which includes hotels, restaurants, tourism, and travel services, is highly dependent on human interaction and service delivery, making effective human resource practices vital for its success.

    Ogunyomi & Bruning (2016) reported that the Nigerian hospitality industry has witnessed significant growth in recent years, driven by increased tourism, business travel, urbanization, and a growing middle class. However, this growth has brought numerous challenges in terms of staffing, training, employee retention, and service quality. The ability of hospitality firms to attract, train, and retain qualified personnel is central to maintaining a competitive edge and ensuring customer satisfaction (Ogunyomi & Bruning, 2016). Therefore, strategic HRM becomes essential in ensuring that human resources are well-managed, aligned with organizational goals, and equipped to deliver quality services that meet and exceed customer expectations.


    1.2 Statement of Problems

    Investigation revealed that there is the inadequate prioritization of HRM by many hospitality business owners and managers. In numerous establishments especially small and medium-sized enterprises HR departments are either non-existent or poorly structured, leading to uncoordinated recruitment processes, insufficient training programs, and a general lack of workforce planning (Okpara & Wynn, 2008).

    Workers often leave due to low wages, poor working conditions, and limited career growth opportunities. In a service-driven industry like hospitality, where customer experience depends largely on employee engagement and consistency, these issues are particularly damaging (Ogunyomi & Bruning, 2016).

    Khan et al. (2015) asserted that, many hospitality workers are employed without proper orientation or skills development, which results in substandard service delivery. While some high-end hotels invest in employee training, a significant portion of the industry still neglects this critical aspect of human resource management. The absence of continuous professional development programs means that many employees remain stagnant in their skills and knowledge, which negatively affects organizational innovation and competitiveness (Khan et al., 2015).

    Furthermore, HRM in the Nigerian hospitality industry is affected by systemic and environmental factors such as limited access to skilled labor, outdated HR policies, and poor enforcement of labor laws. Cultural influences and nepotism often interfere with merit-based recruitment and promotions, weakening the morale of deserving staff and reducing the overall effectiveness of the workforce. Additionally, hospitality businesses struggle with retaining competent professionals due to the lure of better-paying opportunities abroad or in other sectors (Umar & Abdullahi, 2021). It is against the backdrop that this study seeks to explore the role of Human Resource Management in improving the performance of the hospitality industry in Nigeria.


    1.3 Aim and Objectives of Study

    The aim of this study is to examine the role of Human Resource Management (HRM) in enhancing the performance of the hospitality industry in Nigeria.

    The specific objectives include:

    1. To assess the impact of recruitment and selection practices on employee performance in the hospitality industry.
    2. To evaluate the influence of training and development on service quality in hospitality establishments.
    3. To examine the role of employee motivation and compensation in staff retention.
    4. To identify the challenges faced by HR managers in the hospitality industry.
    5. To determine the relationship between HRM practices and overall organizational performance in selected hospitality firms.

    1.4 Research Questions

    Based on the stated objectives, the study will address the following research questions:

    • How does recruitment and selection affect employee performance in the hospitality industry?
    • In what ways does training and development influence service delivery in hospitality establishments?
    • What is the impact of motivation and compensation on employee retention in the hospitality sector?
    • What challenges are HR managers encountering in implementing HRM strategies in the industry?
    • What relationship exists between HRM practices and the performance of hospitality organizations in Nigeria?

    1.5 Significance of Study

    The outcome of this research study will serve as a reference for academic research in human resource and hospitality management. More so, customers will experience improved service delivery due to more competent and motivated staff.

    The study will also provide practical guidance for hospitality managers seeking to improve performance through strategic human resource (HR) practices. Additionally, Government and policymakers will use the findings to enhance labor policy frameworks and improve labor market conditions in the hospitality sector.

    Furthermore, policymakers will benefit from the findings in formulating labor regulations specific to service industries. It will also contribute to existing literature and open avenues for further research.


    1.6 Scope of Study

    This study will focus on the role of HRM in hospitality industry performance using Transcorp Hilton Hotel, Abuja as a case study. The selection of this hotel is due to its prominence in Nigeria’s hospitality landscape and its structured Human Resource Management (HRM) system, which makes it ideal for examining the relationship between HR practices and organizational performance.


    1.7 Limitations of the Study

    A study of this nature is bound to experience certain problems as such the constraints imposed on the research include:

    1. Time Constraints: A study of this nature needs relatively long time during which information for accurate or at least near accurate inference could be drawn. The period of the study was short, time posed as constraints to the research.
    2. Financial Constraints: The research would have extended the survey to other area at the empirical level, but limitation as included cost of transportation to the source of material and the cost of time setting of the already completed work.
    3. Lack of Cooperation: Many of the respondents are usually aggressive on issue that border cooperation among the respondents border.
    4. Response Bias: The study will involve surveys and interviews with cooperative managers and members. Response bias may occur if respondents provide socially desirable answers or if there is reluctance to disclose negative financial information due to privacy concerns or fear of repercussions.

    1.8 Definition of Terms

    Human Resource Management (HRM): This refers to a set of organizational activities aimed at effectively managing employee recruitment, training, motivation, and development to achieve business goals (Armstrong, 2014).

    Hospitality Industry: A broad category of fields within the service industry that includes lodging, food and beverage service, event planning, theme parks, travel, and tourism. It is heavily dependent on the availability and performance of human resources (Nickson, 2013).

    Performance: in the context of this study, performance refers to the efficiency and effectiveness of hospitality organizations in delivering quality services that satisfy customers and meet business goals (Khan & Rasheed, 2015).

    Employee Retention: The ability of a hospitality organization to retain its employees over time by implementing practices that increase job satisfaction and reduce turnover (Ogunyomi & Bruning, 2016).


    CHAPTER TWO

    2.0 Literature Review

    2.1 Introduction

    This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the conceputal review, theoretical framework, the review of related literature …

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