Hotel business in modern times cannot develop and sustain itself unless it adapt to the functional change of hotel according to the rapid economic growth and the transition into mass society, and also to the changes in the taste of the customers. As f...
Hotel business in modern times cannot develop and sustain itself unless it adapt to the functional change of hotel according to the rapid economic growth and the transition into mass society, and also to the changes in the taste of the customers. As for the hotel business major part of which is services by the human as well as material services, the management of human resources is most critical in order to keep itself afloat and progress in this radically changing social environment.
This study, which focuses to the management of human resources for the performance in hotel business, adopts the logics of the perception of procedural justice theory and the psychological contract theory. These two theories are about the tacit relations of employees and company where employees provide their services while expecting rewards from their employer. When the employees feel that procedural justice and psychological contract have worked out in theirdue course, they show a positive attitude towards their company, and in the opposite case, they might have negative attitudes towards their company, which could affect their company in undesirable ways.
Employees perceive whether the procedural justice and psychological contract are rightfully observed or not through human resource management activity of the hotel. Therefore, I tried to find out the effect of these theories, seeing that it is the implementation of the procedural justice and psychological contract that can significantly affect the management-labor relations, not the content of personnel management itself.
Generally, financial outputs, sales or return on asset for example, have been used as indexes of the performance. But, since there have been criticisms that this performance index has failed in identifying the relations with the human resources and also simplifies the performance mechanism too much. In response, more outputs have begun to be used, such as workplace outputs (productivity, growth rate, quality, efficiency, customer satisfaction, etc) or market outputs (variables relevant with the stock market), which also failed in identifying the effect of the personnel management system through measuring the factors directly affected by that.
This study aimed at verifying how the procedural justice and the psychological contract between the company (hotel) and individual employees can affect the relations with the company in terms of Human Resources Management (HRM), Turnover Intention and Organizational Citizenship Behavior (participation, loyalty, and assistance). In other words, the purpose of this study is by identifying the relations of HRM of hotel with the procedural justice and the psychological contract in affecting the performance of hotel business, to provide an insight with which the hotel business can efficiently improve performance, thereby enabling ultimate success in business performance.
In this research, 256 employees from 10 five-star hotels in Seoul were questioned. And the questionnaire is composed of six major spheres : Personnel Management of Hotel, the Perception of Procedural Justice, Psychological Contract, Organizational Citizenship Behavior, Turnover Intention, and General Character of individual replier.
As a result of Frequency Analysis, Cronbach's α, T-test & ANOVA analysis, Correlation analysis, partial correlation analysis, etc., on a total of 11 sub-hypothesis, four hypothesis were adopted ; hypothesis 2-1(The procedural justice will control the relations between the Hotel's HRM and Turnover Intention.) and hypothesis 2-4 (The distributive procedural justice will control the relations between the Hotel's HRM and Organizational Citizenship Behavior.) among ones for the verification of the control mechanism of the perception of procedural justice, and hypothesis 3-1 (Transactional contract will control the relations between the Hotel's HRM and Turnover Intention.) and hypothesis 3-4 (Relational contract will control the relations between the Hotel's HRM and Organizational Citizenship Behavior.) among four hypothesis-testings related with the psychological contract.
Following are the implications deducted from this hypothesis testing.
First, the perception of the procedural justice by employees is an important factor for reduced Turnover Intention.
Second, fair and impartial distribution has a positive effect on the Organizational Citizenship Behavior (participation, loyalty, and assistance), a non-normative role- behavior in the organization, which can be used as a basis on which the contribution of the fair and equitable HRM to the improvement of organizational culture are proved.
Third, the transactional contract and psychological expectation are inversely proportional to the Turnover Intention.
Four, the more factors of Relational contract exist, the more active Organizational Citizenship Behaviors which are the non-normative role-behaviors in the organization take place. Though it requires further study if it is because someone has a friendly feeling toward other person and hope to give positive impression to that person and want that feeling to last, it can be concluded that Organizational Citizenship Behaviors, which are autonomous and pro-organizational behaviors, get brisk and active.