Impact of the HRM content (i.e. practices) and process (i.e. strength) on individual and organizational outcomes, in the hotel industry

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

This study aims to explore the impact of the HRM content (i.e. HRM practices) on individual (proximal) and organizational (distal) outcomes, in the hotel industry context, as well as the influence of the HRM process (i.e. HRM strength) as a mediator in the link between HRM practices and individual and organizational outcomes. A total of 202 responses from non-supervisory employees and 38 from supervisors, from 7 hotels in Algarve, were collected and analysed. HRM practices were grouped into three HRM bundles, through an exploratory factor analysis – Internal Labour Market, Employee Involvement and Meritocracy and Security. These HRM bundles were found to have a significant association with both proximal and distal outcomes. Specifically, Internal Labour Market was associated with Job Satisfaction, Organizational Citizenship Behaviour, Work Engagement and Innovative Behaviour; Employee Involvement was associated with Job Satisfaction, Organizational Commitment towards the Organization, Organizational Citizenship Behaviour, Work Engagement and Innovative Behaviour; and Meritocracy and Security was only significant with Organizational Commitment towards the Organization, Organizational Citizenship Behaviour and Innovative Behaviour. Both Internal Labour Market and Meritocracy and Security positively affect Organizational Innovation. Some of the relationships obtained were mediated by Strength of the HRM system, but not all. Strength of the HRM system reveals itself as a signalling mechanism to increase visibility and relevance of some bundles of HRM practices. Implications of these findings are also discussed.