Human resources, service quality and performance: a case study

The relationship between specific “bundles” of human resource management (HRM) policies and practices and organisational performance in the hospitality industry is not well understood. Based on open‐ended interviews with managerial staff, and examination of management documents, the human resource management policies and practices adopted by a luxury hotel in support of a strategic decision to enhance quality are considered in order to shed light on the nature of the relationship between HRM bundles and effectiveness in a quality‐focused service context. The main features of the HRM policy and practice changes are outlined, along with associated changes to work design and organisation structure. The changes adopted are shown to have measurable positive effects on the key indicators of service used by the organisation. Support for the most commonly discussed models of HRM in the service sector is found.