Employment Modes, High-Performance Work Practices, and Organizational Performance in the Hospitality Industry

High-performance working practices in the hospitality industry have different applications for internal (full-time) employees and external (part-time, casual) workers and different outcomes for organizational performance. High-performance work practices include empowering the employee with higher task autonomy, reducing job titles and layers of management, implementing various extensive training programs and high employee selectivity, encouraging information-sharing programs, using performance-based pay, and implementing gain-sharing programs. Based on a study of 157 properties in Taiwan, hotels were more likely to apply control-based systems for their external employees, while commitment-based HR practices generally applied to internal employees. Of all the practices tested, the findings indicated that job satisfaction for casual employees in the hospitality industry might well be increased when employers offer flexible rewards such as bonuses paid according to performance. In keeping with other research, the study also found that hospitality organizations tend to have lower staff turnover if the organization employs more internal employees. The study also found a significant positive relationship between internal employment modes and productivity.