+ All Categories
Home > Documents > STRATEGIES FOR SUSTAINING COMPETITIVE … · 2017-01-01 · visit the Taj Mahal, ... significance...

STRATEGIES FOR SUSTAINING COMPETITIVE … · 2017-01-01 · visit the Taj Mahal, ... significance...

Date post: 22-Jun-2018
Category:
Upload: trannhan
View: 216 times
Download: 0 times
Share this document with a friend
22
International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS) ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88 www.ijaetmas.com Page 67 STRATEGIES FOR SUSTAINING COMPETITIVE ADVANTAGES IN HOTEL INDUSTRIES IN INDIA: A CASE STUDY ON SELECTED HOTELS Dr. Srinibash Dash MA (Political Science), LLB, MBA, Ph. D. Sr. Lecturer & Head, Department of Professional Courses, Gangadhar Meher University, Sambalpur, Odisha, & Professor (Dr.) Jyotirmaya Mahapatra, Professor and Dean, Faculty of Management Studies Sri Sri University, Cuttack, Odisha
Transcript

International Journal Of Advancement In Engineering Technology, Management and Applied

Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 67

STRATEGIES FOR SUSTAINING COMPETITIVE ADVANTAGES IN

HOTEL INDUSTRIES IN INDIA: A CASE STUDY ON SELECTED HOTELS

Dr. Srinibash Dash

MA (Political Science), LLB, MBA, Ph. D.

Sr. Lecturer & Head, Department of Professional Courses,

Gangadhar Meher University, Sambalpur, Odisha,

&

Professor (Dr.) Jyotirmaya Mahapatra,

Professor and Dean, Faculty of Management Studies

Sri Sri University, Cuttack, Odisha

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 68

ABSTRACT

Today, not only the acquisition but also the optimization of human resource has

improved its prominence on creating sustainable competitive advantages of modern firms.

The reason behind it may be the existence of highly volatile business environment both in

internal and external facets of the organizations. Hence, the success of any organization even

if unquestionably depends on various factors but the most essential factor affecting the

organizational performance is its employees and employees can become the integral players

in the success story if proper HR and market practices are adopted. The present study is an

attempt to identify and statistically prove the relevance of strategies in creating sustainable

competitive advantage in select hotels of India and also compare its impact vis-à-vis other

factors. In the study, ANOVA as an appropriate statistical technique has been adopted and it

has been proved that HR practices has significant effect on competitive advantage of the firm.

Keywords: Strategies, Sustainable Competitive Advantage, ANOVA, Hotel Industry,

Service Industry.

JEL Classification: M53, M51, L1, L8, L880

I. INTRODUCTION:

One of the major challenges faced by the Indian hotel and tourism industry is

procuring skilled manpower (Kashyap, 2014). At every level, whether managerial,

supervisory, skilled or semi-skilled; trained manpower/workforce is required in the hotel and

tourism industry in order to achieve sustainable growth (India skilled report, 2014). The

industry is facing challenges at each level in different manner. There is acute talent crunch at

the middle and senior management levels. In addition, due to the boom in other service

industries like banking, airline, retail and BPO there is a shortage in manpower at the front-

line staff level although adequate human resources are there. It is because of this only, in the

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 69

hotel, travel, tourism and hospitality industry of Indian, there is a demand-supply mismatch in

manpower. A recent study conducted by the Ministry of Tourism has identified that the

current supply of manpower is able to cater not even 40% of the demand. Consequently, the

industry is filling the void with untrained human resources because of which the quality of

services offered by the Indian hotel and tourism industry is getting significantly

compromised.

A few factors adversely affecting the hotel industry are attrition, shortage of qualified

trainers, training infrastructure, lack of appropriate strategies and policies etc., the problems

that needs to be addressed at the earliest. Apart from these, another noteworthy matter is that

the tourists visiting India interact with persons engaged in the Industry in various positions

that includes immigration staff at airports, staff at bus/railway station, ticketing/travel

agencies, taxi/coach operators, small hotels and restaurants, dhabas/outside eateries, tour

guides and staff at heritage sites among others. The service provided by these stakeholders of

the Industry plays vital role in determining the overall experience of tourists visiting India.

The Government of India has put many efforts to promote responsible tourism by way of

sensitising these key stakeholders through training and orientation so that they develop sense

of responsibility towards the visitors. “Atithi Devo Bhava” is one such campaign that has

changed the viewpoint of people towards tourists. However, in order to improve the degree of

service across the industry, more such efforts are required.

In this context, here in this paper we would like to discuss the importance of strategies

for sustaining competitive advantages in selected hotels of India based on empirical

evidences.

2. REVIEW OF LITERATURE

In the vision statement of Ministry of Tourism, Government of India; the hunar se

rozgar initiative has been clearly mentioned that focuses on the schemes to train persons in

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 70

specified areas of tourism. Mc Fetridge, 1995, in this context has stated it as a comparative

concept and say that the contemporary meaning of this term has extended to new dimensions.

According to another school of thought, competitiveness is uniformly applicable to all

businesses, government and non for profit organizations (Hillman, 1992). A sustained

competitive advantage is that which least for a considerable time period and here the

competitors includes the current firms in operation and potential firms those are planning to

enter the industry ( Panzar,& Willig 1982).

According to the Ministry of Finance, Government of India, the annual growth rate of

the economy of India is projected to increase by 7.2% in 2014-15 as compared to 6.9% in the

fiscal year 2013-14. The International Monetary Fund in one of its annual report forecast that

the economy of India would grow by 7.5% percent in the 2015-16. Now, since the tourism

industry of the country contributes significantly to India‟s GDP, it is noteworthy that the

country has attracted 6.85 million international tourists and $18.4 billion foreign exchange

earnings from tourism itself in 2013. Tourism in India has seen a stable growth, year on year,

that grown from 4.45 million tourist arrivals in 2006 to nearly 7 million arrivals in 2013. The

United States is the principal source of foreign tourists to India, while countries of European

Union and Japan are other main sources of foreign tourists. Less than 10% of foreign tourists

visit the Taj Mahal, with most of them visiting other cultural, thematic and vacation circuits.

There are over 12 million Indians who take international trips every year for tourism, while

domestic tourism insider India adds about 740 million Indians. In 2011, the combined

contribution of international and domestic tourism accounted for 5.92% of India‟s GDP and

9.3% to India‟s employment. The tourism industry of India has come up as one of the key

drivers of economic growth among the other service sectors. In an average it is contributing

6.23% of GDP and 8.78% of employment in the country. A few of the characteristics of this

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 71

industry being the constant transformation, improvement in standards and functional growth;

it has gained international approval.

Also, the India would need a supply of 700 million skilled workforces to meet the demands

of growing sectors in 2022 (India skilled report, 2014).

In this context, a study has been done by Ambardar, (2013) on “understanding the

importance of training practices”, with the objectives to identify, investigate and report the

significance and importance of training practices in Independent hotels. The survey was

based on 225 hotels of India and the questionnaire touched 31 training practices on 4

demographic variables. To identify the significance and importance of training practices,

descriptive statistics was used and it indicated significant differences of training practices in

Indian hotels. It also contributed to the contemporary facts in training practices in hotel

industry of India and also provided supplementary insights relating to factors influencing the

training practices. The author suggested that training in hotel industry of India may play vital

role in building human resource development practices.

In the same line, another study has been done by Peshave. A.M. et al (2013) on

“Impact of Employment Practices adopted by hotels on productivity of its employees”. In an

effort to do so, a survey was conducted among staffs of 100 hotels of India by the method of

personal interview and the information was recorded in the form of a structured

questionnaire. The responses of the survey were first represented graphically and then

analyzed by using statistical tools. The study found that although the Indian hotel industry

was concerned with the matter of employee productivity, the effectiveness of productivity

management was not in place. It has also been discovered that practices relating to monetary

benefits, work-life balance and training and development has the maximum favourable

impact on employee productivity.

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 72

Then, the study done by Chang, W. J. A. (2010) also identified that there are positive

influence of human resource capabilities on organizational effectiveness and internal

customer satisfaction. The findings revealed the significance of internal customers in

influencing organizational commitment, employee morale, turnover rate, employee

productivity and the organization‟s ability to attract talent.

The study done by Chen, S. J. (2009) shown that offering of flexible rewards like

bonus on the basis of performance increases the job satisfaction of casual employees in the

hotel industry. The study also revealed a significant positive relationship between

productivity and internal employment modes. Further, according the Chand, M. (2007) in his

study, hotel performance is positively correlated with hotel category and type of hotel (chain

or individual). Furthermore, hotel performance is positively correlated to the HRM systems

of recruitment and selection, job design, manpower planning, quality circle, training and

development and pay systems.

Subsequently, the study conducted (Hazra,et.al 2013) on impact of HR Policies on

Employee‟s Performance: An Empirical Study of Selected Hospitality Organizations and the

researchers came to conclusion that employee‟s performance is crucial for the organization

as it is closely linked to guest satisfaction. It is therefore in the best interest of an organization

to devote a substantial amount of effort examining ways to improve as well as to maximize

the employee‟s performance in their workplace. The majority of the studies agreed that HR

policies are vital for better performance and also to solve an organizations turnover problem.

Many of the studies recommended that when creating a HR policies, hospitality organizations

must make sure their total HR policies are competitive not only within the industry. Results

of this study indicated that many employees satisfied on HR Policies at three star hotels in

Kolkata, West Bengal (WB) only on few attributes; but there is need to improve the rest

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 73

attributes related with financial and non financial HR Policies (e.g. Good physical working

condition, Balance between work and person life, Satisfactory working enthusiasm, Company

valued their employee etc.).

Healthy economic growth recorded in past few years, especially in the services

industry, has led to increase in business travel. Higher disposable income and affordability

have increased domestic leisure travel in India. Foreign tourist arrivals in India have also

grown. The industry‟s performance was hit in 2009 due to the global economic slowdown,

terror attacks in Mumbai (November 2008) and H1N1 virus. However, the industry has

shown signs of recovery in the first half of 2010. This is a clear indicator that the long-term

prospects for the Indian travel and tourism industry are bright. India is expected to witness

increased tourist activity both in the business and leisure segments in the coming years.

International inbound traffic is expected to grow rapidly with increasing investment and trade

activity. India has been identified as one of the fastest-growing countries in terms of tourism

demand.

At last, it has been revealed by the report published in an Indian Travel, Tourism and

Hospitality Industry‟ under the „D&B Sect oral Round Table Conferences, 2014 that travel

and tourism sector demand is expected to reach US$ 266.1 bn (14,601.7 bn) by 2019.

In this context, according to the World Travel and Tourism Council (WTTC), the US$ 7 trillion travel

and tourism sector’s contribution to world GDP increased in 2013 to 9.5 per cent, creating 4.7

million new jobs. This resulted in total employment in this sector of nearly 266 million, that is one in

eleven jobs in the world. This sector is estimated to grow by 4.3 per cent in 2014 and generate 6.5

million new jobs. The latest World Tourism Barometer of the United Nation’s World Tourism

Organization (UNWTO) also shows that international tourist arrivals reached 1.1 billion in 2014, a 4.7

per cent increase over the previous year and for 2015 the forecast is a 3 to 4 per cent increase due

to new competitive strategies for hotel industries as per the economic vision of the concern

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 74

country. (Economic survey, 2014-15, volume-II). At last, the contribution of tourism to total income

and employment of the country during 2012-13 was 6.9 per cent and 12.5 per cent respectively. In

2014, foreign tourist arrivals and foreign exchange earnings increased by 7.1 per cent and 6.6 per

cent respectively..

Hence, I come to conclusion that to boost of the new economic of the country, it is

required to streamline of the important hotel industries with procure skill manpower through

smart HR policies so that country can attract more and more foreign tourist in different places

for the country.

3. STRATEGIES OF HOTEL INDUSTRIES IN INDIA

The case study in the present study has considered four top hotels of India i.e.

1. Hotel Taj

2. Asian Hotels

3. Indian Hotels Company

4. The Country Club

A narration of the brief description on HR practices in these hotels has been

provided below.

3.1. Hotel Taj:

The Taj Hotel focuses on long-term rehabilitation initiatives like support for micro-

enterprise or to impart a vocational skill whereby the affected family can become self-

sustainable. Apart from this, ongoing support with monthly sustenance, education and

medical assistance continues to be provided for maintain its brand value to compete in the

changing market scenario. Training of the Hotel Taj is the important HR practice for

increasing the customer satisfaction. In this context, training is the process of altering

employee behaviour and attitudes in a way that increase the probability of goal attainment.

The main objective in the training is to help the organisation to achieve its purpose by adding

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 75

value to its key resource like people. Hence, Taj has been giving three sorts of training to

their employs such that 1. Taj management Training Programme 2. Hotel Management

Trainee. 3. Hotel operation Management trainee having following objectives to get

sustainable competitive advantages

Prepare young people as through professionals with the Taj.

Comparable to an MBA in hospitality that mould young budding hotel

professional into future business managers.

Career path could include joining as Taj Management Trainee and attaining

the position of a general manager of a hotel by lateral movements through

various movements through various functions such as human resources, sales,

food, and front office.

Different methods have been used to giving right training for right employees

i.e.; demonstration, coaching, job rotation, projects,

In this study, Taj motivational programmes are incomparable with others because of

its 1. Taj people philosophy 2. Balance score card 3. STAR system training programmes.4.

Feedback system to measure the real performer.

Taj people philosophy: This strategy has developed in the year 1999 for the fowling

purpose. e.i.

For womb to tomb approach

Every employee would be an member in the Taj family

Measure the value of under performers

Balance score card strategies: It is one of the most important strategies have been using of

the esteem hotel having four important parameters of BSS

Financial Internal business process learning and growth.

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 76

Customer learning and growth

Employer turnover

Job satisfaction and learning opportunities

In addition to the above, the employee of Taj is viewed as an asset and real profit

centre for the hotel. The Taj group does not focus only on the right people but also the right

attitude for employees for its organisation which is the important sustainable strategies. It has

been probed that employee retention rate of the of the Taj group is the highest because of its

employee oriented initiates and better opportunities to its employees.

3.2. Asian Hotels (North):

Asian Hotels (North) Limited is an India-based company, which is engaged in

operating hospitality/hotel business. The Company is also engaged in power generation and

offshore project consultancy operations. It has two wind turbine generators (WTGs) operating

in Maharashtra. The Company operates through its subsidiaries, which include Fine line

Hospitality & Consultancy Pte Ltd., an overseas subsidiary in Mauritius, which provides

offshore project consultancy services; Lexon Hotel Ventures Limited in Mauritius, which

also provides offshore project consultancy services; Leading Hotels Limited in India, which

is engaged in developing an all Villa Hotel Complex, including residential villas and an 18

hole, 72 pars championship golf course in Goa (India), and Newtown Hospitality Private

Limited incorporated in India, which provides hospitality business. The Company operates a

five-star deluxe hotel namely Hyatt Regency Delhi located at Bhikaiji Cama Place, M. G.

Marg, New Delhi.

The success of any organization depends largely on its human resources, its

management and good industrial relations. The Company has always viewed human resource

development as a critical activity for achieving its business goals.

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 77

The Company enjoys harmonious relationship with its employees. The employee

strength of the Company, as on 31st March, 2010 was 1067. The hotel has given the various

benefits to employees as under:-

Defined contribution plans/– Provident fund

Contribution to Gratuity funds

Compensated absences - Earned leave

The Company is associated with various charitable, social, religious and

philanthropic activities and thereby playing a pro-active role in the socioeconomic

growth.

Adequate internal controls have been laid down by the Company to safeguard

and protect its assets as well as to improve the overall productivity of its

operations. The Company has a prominent firm of Chartered Accountants as its

internal auditors. The firm carries out in-depth internal audits for each department

of Hotel Hyatt Regency Kolkata. The detailed process of review not only ensures

reliability of control systems and legal compliances with applicable legislation,

defined policies and processes, but also reviews efficiency of systems and ensures

safeguarding of tangible and intangible assets. The Audit Committee of the Board

reviews the findings of the internal auditor and closely monitors the

implementation of their commendations, by reviewing the compliance reports

furnished.

The management has been taking extra care for employee selection, training

and motivation. Employees are provided opportunity to grow and prosper. The

authority and responsibility chain is clearly defined and the employees are free to

convey their ideas and suggestions to their superiors. Team meetings are held at

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 78

frequent intervals to improve communication and interactions between the

employees. Industrial relations remained stable throughout the financial year

3.3. Indian Hotels Company:

The Indian Hotels Company (IHCL) and its subsidiaries, collectively known as Taj

Group, is one of Asia's largest and finest group of hotels. Incorporated by the founder of the

Tata group, Jamsetji Tata, the company opened its first property, the Taj Mahal Palace, in

Bombay in 1903. The Taj, a symbol of Indian hospitality, completed its centenary year in

2003.

Employee perception on about HR climate and its strategies of Hotel:

Good work culture, Good employee programmes, Career growth planned,

decision making capabilities.

Sometimes need to work extra hours during hotel season, otherwise we don‟t

find any issues working there. This is a good company.

Well customers tip and having adequate environment for earning money.

Having huge insurance for employees and great company values.

The company is just beginning to develop its hotels in the US market. They

are aggressive with their promotions of younger leaders; you will find a great

deal of the junior management is under the age of 28. This is promising for

hospitality professionals eager to get a jump start on their careers. There are

also numerous possibilities to transfer and visit their properties they own

abroad.

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 79

Senior Manager eagerly listens to the line managers. They contact to guests on

a daily basis and give new ideas, thoughts towards positive business. Invest

huge capital for employee‟s customer relations training.

Employee oriented and very nice facilities has been providing to their

employees and guests.

3.4. The country club:

Employee perception on about country club climate:

Daily work with customer's to enjoy their golf facility. Instruct, manage employees,

work within budgets, and create new revenue streams. Having very pleasant work

force and the hardest part of the job is balancing all the demands.

Working in the pool area is always enjoyable. You can connect with the members

when you sign them in and you are on stand as much as you are off stand so you don't

get heat exhaustion.

I like my job because customer can appreciate my work. I enjoy all phases of my job

except for the pay! The most enjoyable part of my job is when I am able to help

someone with something or teach someone a better way of doing things.

It has been a good experience to work in this company. I learned many things like talk

to strangers, to ask question, to deal with rejection, and here, co-workers are very

supportive.

It‟s a top company, learned everything here about work and management

I have learned to give my best to the company for which I am working.

Handling Sales Team of 10 Members, Training the Marketing Executives, Motivating

sales for people generate revenues through adding Club Membership. Achieving

targets as Per Company Requirements.( Sr. Marketing Executive)

Professionalism is important for good team members.

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 80

4. NEED OF THE STUDY

Today the Indian service industry is facing multiple challenges and the tourism and

hotel sector of Indian is not an exception in it. Barney (1991) argues that the organizations

are said to have competitive advantage when they implement a value creating strategy that is

not followed by any of the current or future competitors and it becomes a sustainable

competitive advantage if other firms are unable to duplicate this strategy.

Hence, a study on the relevance of HR practices for bringing competitive advantage in

hotel industry is unquestionable.

5 RESEARCH DESIGN

Tourism industry has become significantly important in India. According to World

Travel & Tourism Council, the tourism industry of India is likely to generate US $121.4 bn of

economic activity in the year 2015, and the hospitality sector of India has the capability to

earn US $24 bn in foreign exchange in the year 2015. The booming nature of tourism

industry has had a cascading impact on the hospitality sector with an increment in the

occupancy ratios and average room rates. In the year 2014, the occupancy ratio was around

57%, up 1% from the previous year. The average room rate declined over the last one year by

about 3.4% due to general slowdown in the economy and supply pressures. The long term

outlook for the Indian hospitality industry continues to be positive, even for the business and

leisure segments with the capability for economic growth, increment in disposable income

and burgeoning middle class. With the Indian Government increasing spending on

advertising campaigns (including for the campaigns 'Incredible India' and 'Athithi Devo

Bhava' - Visitors are like God) to reinforce the loaded variety of tourism in India; the whole

nation is optimistic about it. As per reports of Cushman & Wakefield (C&W), Indian

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 81

hospitality sector is expecting to achieve better infrastructure growth and approximately

4,304 new hotel rooms are projected to open in 2014, of which 36% would be for Mid-scale,

13% would be in upscale segment, 17% would be for Budget segment, 13% would be for

Upper Upscale, and 20% would be for Luxury segment.

5.1. RESEARCH OBJECTIVES

Based on the review of extant literature, the present study has been undertaken on the

following research objectives;

1. To identify and statistically prove the relevance of different competitive strategies are

creating sustainable competitive advantage in selected hotels of India.

2. To identify the significant role of strategic practices vis-à-vis other factors in creating

sustainable competitive advantage.

5.2. RESEARCH HYPOTHESIS

Based on the review of extant literature, the following research hypothesis has been

formed to be tested under the study;

H0: There is no significant impact of strategies on competitive advantage.

H1: There is significant impact of HR practices and other marketing strategies on

competitive advantage.

5.3. RESEARCH METHODOLOGY

The main objective of the study is to identify the impact of HR and marketing

practices on competitive advantage; hence the methodology of research is of causal in

nature. Causal research is another kind of conclusive research design. These studies

establish the why and the how of a phenomenon. Causal Research explores the effect of one

thing on another and more specifically, the effect of one variable on another. They are

highly structured and require sequential approach to sampling, data collection and data

analysis. To establish a reliable and testable relationship between two or more constructs or

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 82

variables, the other influencing variables must be controlled so that their impact on the

effect can be eliminated or minimized.

There are four hotels that have been selected under this study and the objective been

the measurement of impact of HR practices on their competitive advantage, the independent

variable is taken as the HR practices and the dependent variable has been taken as the

competitive advantage. Now, the task is to denote the data related to these variables. The

four hotels so selected have as such different HR practices and the competitive advantage of

these hotels can be represented by the net sales. Hence, the functional relationship that can

be established here is that, the net sales is dependent on HR practices of the organizations.

By applying suitable statistical tools, the first objectives of the study i.e. identify and

statistically prove the relevance of HR practices in creating sustainable competitive

advantage can be satisfied. Then for satisfying the second objective, i.e. identify the

significant role of HR practices vis-à-vis other factors in creating sustainable competitive

advantage, all other variables has to be taken into consideration. Here, all other variables

that affect favourably the competitive advantage of an organisation are assumed to be

dependent on time and consequently the competitive advantage of the organizations are

dependent on time. Hence, the functional relationship is that the competitive advantage of

any organization is dependent on time that is to be compared with the impact of HR

practices in this study.

5.4. SAMPLING DESIGN:

Sampling is a process of selecting an adequate number of elements from the

population so that study of the sample will not only help in understanding the characteristics

of the population but will also enables us to generalize the result.

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 83

This research paper has included of 36 observations regarding the net sales of the

hotels under consideration. The data includes quarterly net sales of these hotels from 2006 to

2014.

5.4. DATA COLLECTION:

The data collected in this paper is of secondary in nature. The data in this research has

been collected from the link: https://www.equitymaster.com/research-it/sector-

info/hotels/Hotels-Sector.

6 ANALYSIS & FINDINGS:

For satisfying the objectives of the study, Analysis of Variance (ANOVA) has been

chosen as the most suitable statistical tool. In the ANOVA setting, the observed variance in a

particular variable is partitioned into components attributable to different sources of variation.

In its simplest form, ANOVA provides a statistical test of whether or not the means of several

groups are equal, and therefore generalizes the t-test to more than two groups. ANOVA can

be categorised as one-way and two-way. As the name suggest, in one-way ANOVA a single

variable or factor is taken into consideration while in two-way ANOVA two variables or

factors are taken into consideration. Here, one way ANOVA has been computed to study the

relationship of HR and marketing practices on competitive advantage in the form of net sales

and the two way ANOVA has been computed to study whether the HR and marketing

practices or other factors in the form of time has got significant impact on competitive

advantage. The following are the tables (Table 1 and Table 2) describing the results of the

two tests.

Table 1 One Way ANOVA

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 84

Source of

Variation SS df MS F F crit

Between Groups 311687297.7 3 103895765.9 168.4596089 2.669256

Within Groups 86343588.94 140 616739.921

Total 398030886.6 143

Table 2 Two Way ANOVA

Source of

Variation SS df MS F F crit

Rows 311687297.7 3 103895765.9 189.8636342 2.691133

Columns 28886269.81 35 825321.9946 1.508229252 1.535178

Error 57457319.13 105 547212.5631

Total 398030886.6 143

While the one way ANOVA has been conducted, the impact of strategic practices as

an independent variable on competitive advantage of the firms has been analyzed. From

Table 1, it can be observed that the calculated value of F is more than the tabulated value and

that is why it can be concluded that the null hypothesis is rejected and alternative hypothesis

is accepted. It means that it is statistically proved that the type of HR practices has significant

impact on competitive advantage of the firms in the form of net sales. Then the impact of HR

and marketing practices vis-à-vis other variables or factors has been analyzed. From the

Table 2, it can be observed that the calculated value of F for rows is more than the tabulated

value and calculated value of F for columns is less than tabulated value. It means that the

impact of strategic practices is significant and that of other factors in the form of variable is

not.

8. MANAGERIAL IMPLICATIONS

The study said that time is not at all a important factor for the turnover the hotel

industries which has been proved by using AVOVA and it gives direction to the manager and

top level authority of the hierarchy that HR and marketing factors are the key area for

enhancing the revenue as well as brand image of the hotels simultaneously attract more

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 85

tourist for the country. Hence, HR and marketing strategies can be used not only for

attracting best talents from the industry but also to motivate them. Secondly, it is strongly

believed by the employees and recommended that there should be policies and system which

should designed formulated and implemented as per the govt. vision so that it will help

economic of the country as well as organisational interest to retain the best talent. In the same

line HR and marketing competitive strategies should not only be done instead it should be

communicated to interested stake holders both in internal and external periphery of the

organization and country.

9. CONCLUSION AND SUGGESTION:

The above discussion, it is giving us important information about the hotel industries

and its sustainable strategies for beat the competition at current situation; also take care for

future growth using the right and proper strategies. In this juncture, we have found that

growth of the hotel industries is based on its strategies i.e., brand, customer satisfaction,

facilities for the customer, internal customer satisfaction, transport facilities etc. Here, also,

we assessed that time is not at all an important influencing factors for the increasing the sales

volumes of the company. In this context, we referred that on the changing of time, the

company would like to change its strategies (HR, marketing, corporate and social

responsibility) to sustain market shares.

As per the discussion konwar, 2015 said that domestic tourism markets are

potentially important generators of income and jobs for the host state. Hence, recently the

govt. policy already liberalised for foreign tourist so that tourism contribution will increase

positively for GDP and harness number of job opportunity for the young population in the

country. So the growth of the tourism sector is purely depending on the strategies of hotel

industries. Needless to say that HR strategies such that training, balance scorecard, employee

satisfaction tracking systems would like to implement as soon as possible where promotion or

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 86

recognition or increscent of salary is purely linked to the promotion of the employees. So that

we will get right people having right attitude. At last, it is also suggested to the appropriate

government to verify the facilities according to the charges and give direction to implement

smart HR for match the demand and supply in future.

10. LIMITATIONS OF THE STUDY:

The present study is based on data gathered from a few Indian hotels. Hence,

the findings of the study may not be properly generalized to other service sector across the

country. Secondly, the present research based on only secondary financial data collected from

the balance sheet of the respected company which compare it to the HR practices. In this

context, the results may change if primary data (Employees and tourist) will collect and

involves it to the study, the result may be more reliable and trustworthy. However, findings of

the present study can serve as a conduit for further conclusive researches.

10. SCOPE FOR FURTHER STUDY:

The result of this study is mainly focused for hotel industries only, but in general it

can also be applied to the other service in India and abroad considering and depending on the

organizational structure, cultures and size of the organisation. However, this research study

has substantial scope for extension – both in terms of breadth as well as depth.

The present study attempts to find out the influencing strategies for beat the

competition. From this study, it clearly reveals that there is considerable scope for the

development and implementation of appropriate HR programmes for create and awareness of

the proposed study. By doing this, we can ensure enhancement of employee competencies,

dynamism, motivation and effectiveness in a systematic and planned way including the other

areas like brand, hotel facilities, transportation, quality food. In the same way, existing

employees should be derived to learn more about the impact of HR strategies for

understanding sustaining competitive advantages.

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 87

REFERENCE

Ambardar, A. (2013). Understanding the importance of training practices in Indian

independent hotels, IJRMBSS, Vol. 1 I Issue 2 I July. 2013,

Asian hotel Annual Report, 2010-11, 2011-12, 2012-13, 2014, www.asianhotels north. com/

annual- report.asp.

Chand, M.et.all. (2007). The impact of HRM practices on organisational performance in the

Indian hotel industry, Employee Relations, Vol. 29 , 576 – 594, DOI

http://dx.doi.org/10.1108/01425450710826096

Dash, S., & Mohapatra, J. (2012). Human Resource Development Climate in Rourkela Steel

Plant: study on. (published doctoral thesis), Sambalpur University,Jyotivihar, Burla,

sambalpur, Odisha, 186-189.

Dash, S., & Mohapatra, J. (2015). Human Resource Development Practices: A newPerceptive

for Steel industry. New Delhi, Kunal books publishers and distributors, 200-236.

Gupta, S.C. (2011). Fundamentals of Statistics. Mumbai, Himalaya Publishing, House, 15.29,

16. 26 - 16.33.

Hazra, K.et.all. (2013). Impact of HR Policies on Employee‟s Performance: An Empirical

Study of Selected Hospitality Organizations, SIT Journal of Management Vol. 3.

No. 2, 674, 74.

Kashyap, G. (2014). Challenges faced by the Hotel Industry: a review of Indian Scenario.

IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X,

ISSN: 2319-7668. Volume 16, Issue 9.Ver, 69-73, www.iosrjournals.org

www.iosrjournals.org

Konwar, J., et al. (2015). Tourism and its Association Aspects in the river island majuli,

Assam: A study from the perceptive of visitors Prabandhan: The Journal of

Management, Vol:-8, 42.

Kothari, C.R. (2005). Research Methodology. New Delhi, New Age International, 260-271.

Krishnaveni, R. (2009). Human Resource Development – A Researcher’s Perspective,Excel

Books, New Delhi, 94-99.

Malhotra. N.K. (2005). Marketing Research - An Applied Orientation, 5th Edition,Noida,

Pearson Education Inc, 343-347.

International Journal Of Advancement In Engineering Technology, Management and Applied Science (IJAETMAS)

ISSN: 2349-3224 || www.ijaetmas.com || Volume 03 - Issue 12 || December - 2016 || PP. 67-88

www.ijaetmas.com Page 88

Milind, A. P. et.all. (2013). Impact of Employment Practices Adopted by Hotels on

Productivity of Its Employees on International Journal of Business and

Management Invention (Online):www.ijbmi.org Volume 2 Issue 10, 27-38

Sachar, A. (2010). Organisational Climate and Managerial Effectiveness, New

Delhi,Himalaya Publishing House, 49-50.

Subramanian, A. (2014). Chief Economic Adviser Ministry of Finance Government of India

Economic survey, government of india, ministry of finance, department of

economic affairs,2014-15, 27, 116, 117, 121,

The Taj Hotel Annual Report, 2010-11, 2011-12,2012-13, 2014 and http: /

/www.tajhotels.com/ about-taj / investor-relations/ annual-reports.html.

Wan, J.C. (2010). The impact of human resource capabilities on internal customer

Satisfaction and organizational effectiveness. Total Quality Management &

Business Excellence, Vol. 21 Issue 6, 633-648, and 16.

Web site:

https://www.equitymaster.com/research-it/company-info/latest-sector.

http://info.shine.com/industry/hotels-hospitality/12.html.

https://www.equitymaster.com/research-it/sector-info/Hotels/archives.asp.

https://www.equitymaster.com/research-it/sector-info/hotels/Hotels-Sector-Analysis-

Report.asp.

http://www.glassdoor.com/Reviews/Indian-Hotels-Company-Reviews-E35562.htm.

http://www.indeed.co.in/cmp/Country-Club-India-Ltd/reviews.

http://info.shine.com/industry/hotels-hospitality/12.html.

https://wheebox.com/wheebox/resources/IndiaSkillsReport.pdf.,Indiaskilled report,2014, A-

10, Infocity, 1st Floor, Sector 34, Gurgaon, Haryana 122001, 7,49.

https://www.dnb.co.in/Travel_Tourism/Chapter_3_Challenges.asp.

results.asp?sector=hotels&pr=0&currqtr=3/31/2006&prevqtr=3/31/2005.


Recommended