Workplace learning and organisational performance in the hospitality industry

Anne Kleefstra Zuyd

University of Applied Sciences, Heerlen, The Netherlands

Michel Altan

Academy for Hotel and Facility Management, Breda University of Applied Sciences, Breda, The Netherlands, and Jol Stoffers

Research Centre for Employability, Zuyd University of Applied Sciences, Heerlen, The Netherlands; Open University of the Netherlands, Heerlen, The Netherlands and Research Centre for Education and the Labour Market, Maastricht University, Maastricht, The Netherlands

Abstract

Purpose - The hospitality industry creates a distinctive context in which learning takes place. The industry's international perspective and large globalisation play an important role in learning, as well as the operational and structural features that give meaning to learning and development in the hospitality industry. This explorative research therefore studies the relation between workplace learning and organisational performance in the Dutch hospitality industry.

Design/methodology/approach - The qualitative research is done through 15 in-depth interviews with general managers and HR managers of Dutch hotels with three or more stars and at least ten employees.

Findings - It can be concluded that there is a relation between workplace learning and organisational performance in the hospitality industry, as the participants in this research and the literature both mention workplace learning enhances organisational performance.

Originality/value - Little research has been done on learning and organisational performance specifically, in the (Western) hospitality industry. This research therefore focusses on HRD and studies the influence of workplace learning on organisational performance in the Dutch hospitality industry.

Keywords :Learning climate, Workplace learning, Organisational performance, Innovative work behaviour, Hospitality industry

Introduction

Organisational boundaries are softening and extending, and traditional jobs are changing as work becomes more focused on expertise, addressing specific problems and challenges based on projects, within or outside the organisation (Jennings, 2015). To succeed and survive in the 21st century, organizations need to develop the internal capacity to continuously

undergo new skill cycles to maintain their competitiveness (Gottfredson, 2014). Continuous learning and performance improvement therefore lie at the heart of any business (Hart, 2015).

Most organisations base this in a human resource development (HRD) department. The goal of HRD is to keep the human capital of the organisation up to date and future proof as Van Loo and De Grip (2003) define it. HRD focusses on facilitating a good learning climate and a mix of formal and informal learning in the organisation. However, as Arets et al. (2015) argue, HRD is stuck in the "training bubble", the belief that formal training will cure all ailments. They argue that the importance of informal learning processes, such as experimentation, learning through reflection or from colleagues, is often not seen, or ignored by the HRD department. However, daily work should facilitate the process of knowledge productivity and learning; work becomes

learning and vice versa; they are inseparable (Arets and Heijnen, 2011; Cornelissen and Soons, 2012; Jennings, 2015; Kessels and Keursten, 2001; Rabin, 2014).

According to MGI (2017), the hospitality industry has the largest automation potential of all industries: 73% of tasks can be taken over by technology. Also, WEF (2017) acknowledges that hospitality is highly susceptible to technology, which is already gaining ground in the industry (Alexis, 2017). This means tasks in the hospitality industry will change and different tasks will become more important. As employees' knowledge and skills are the most important assets in service organizations, especially in the hospitality industry, improvement of human capital has become a priority (Nieves et al., 2014). The success of hospitality businesses depends on the quality of its human capital, the education and development of skills that drive productivity and of labor and with that the organization's earnings (Davidson et al., 2010).

Li et al. (2013) argue that the hospitality industry creates a distinctive context in which learning takes place. The skill deficiency and high turnover in staff influence the performance of the organisation (Lashle 2010; Li et al., 2013). The pressure peaks and different working environment demand, however, that hospitality professionals priorities their work activities in different ways (Bernsen et al., 2009; Li et al., 2013). The work is characterized with high-pressure peaks and plateaus. Nonetheless, the hospitality industry shows a lack of knowledge about skills development for professionals and HRD (Li,et al., 2013). Little research has been done on learning and organisational performance specifically, in the (Western) hospitality industry.

This research therefore focusses on HRD and studies the influence of workplace learning on organisational performance in the Dutch hospitality industry. The foregoing results in the following main question: What is the relation between workplace learning and organisational performance in the hospitality industry in the Netherlands?

Literature review

When the hospitality business grows faster than the global economy, it may help create high-quality jobs (WEF, 2017). Yet, HRM concerns in the sector are also a worry (Solnetet al., 2015). For instance, automation requires employees to collaborate with technology and focus on the abilities technology struggles with (Stoffers, 2016; WEF, 2017). Hospitality performance is affected by skill inadequacy and significant personnel turnover (Lashley and Rowson, 2010; Liet al., 2013).

Davidson et al. (2010) found that significant worker turnover puts pressure on hospitality training to maintain service levels. Investment in HRD and an organizational learning climate improves employee capability, employability, and organizational success (Huselid, 2013;). Learning improved organizational performance in the Spanish hotel business, according to Celem n-Pedroche et al. (2017). Workplace learning has been shown to help organizations. As Nolan (2002) notes, many hotel employers are still skeptical about workplace learning, and Baum (2002) reports that the hospitality industry spends the least on performance improvement and HRD.

Learning

First, define learning and its forms. Learning has several definitions in literature. "Learning is defined as the process whereby knowledge is acquired," says Eraut (2000, p. 114) in the simplest way. Learning is complicated. Many definitions of learning share similar components. Shuell (1986) includes: "Learning is an enduring change in behavior, or the capacity to behave in a specific manner, which arises from practice or other forms of experience" (p. 2). Learning is a process and an outcome, according to Ropes (2011). Learning is the process of acquiring knowledge that transforms thinking or behavior, according to Eraut (2000) and Shuell (1986).

Kessels and Keursten (2001) define a learning landscape as a transformation of the daily workplace into a rich and varied setting that stimulates and supports the necessary learning process. Based on a literature analysis, Nikolova et al. (2014b, p. 259) describe a learning atmosphere as "employees' impressions of organisational policies, and practices targeted at promoting, rewarding and supporting employee learning behavior". Nikolova et al. (2014b) measure organizational learning climates using facilitation, appreciation, and error avoidance. Kessels and Keursten (2001) focus on informal learning, however Nikolova et al. (2014b) include formal and informal learning opportunities in the workplace and encourage both.

The literature discusses several types of learning, including formal and informal learning (Van Der Heijden et al., 2009). Formal learning is curriculum-based, takes place at a set time, place, and material, and ends with an examination or certification (Brown and Duguid, 1991). Formal learning is a goal-oriented event (Vermeulen and Versloot, 2016). De Laat (2012, p. 9) defines formal learning as "planned education and training activities offered by specialists, resulting in a diploma or certificate."

Eraut (2000) defines informal learning as any learning outside of a formal program or event. Informal learning is hard to characterize, according to Arets (2009). Despite several attempts, informal learning has not been defined in literature. However, there is conformity in the characteristics of informal learning, and they are described as follows by Hager and Halliday (2009):

(1) Informal learning is indefinite, there is no definite learning goal.

(2) Informal learning aims to achieve external and internal benefits. Informal learning offers more opportunities for internal benefits, such as developing personal enhancements, values and social skills.

(3) Informal learning is opportunistic and does not happen at a specific time or place.

Learning happens at the moment it is needed (personally or professionally).

Organisational performance

Performance must be viewed holistically to govern the organization. Organizational performance should be measured holistically. Learning improves non-financial performance of businesses, according to Prieto and Revilla (2006). Organizational learning can lead to growth and innovation (Janssen, 2000, 2001; Noe et al., 2014). This study will examine how learning affects subjective organizational performance and innovation variables.

Delaney and Huselid's (1996) two-variable theory of organizational performance measures perceived performance. Delaney and Huselid (1996) analyze subjective organisational performance using two variables. The first variable compares respondents' views of their firm's performance over the past three years to similar businesses (perceived organisational performance). The second variable asks respondents how their firm has performed over the previous three years compared to product market competitors (perceived market performance). It shows the organization's objective performance and stakeholders' perceptions of it. In a world and industry highly susceptible to technology and change (MGI, 2017; WEF, 2017), organizational performance is likewise highly dependent on innovation and growth, especially in the medium and long term (Campo et al., 2014).

Organizational performance and competitive advantage depend on innovation. According to Zopiatis and Theocharous (2018, p. 15) "the hospitality industry must strive to attract and retain creative risk-takers who are willing and able to challenge long-standing and deeply rooted paradigms, mentalities, and norms which have guided the industry's operations for the past 50 years". Further research on hospitality innovation is needed because staff are essential to a good guest experience. In the medium and long term, organizational performance depends on innovation and employee innovation.

Methodology

This study employed qualitative research to address the theoretical gap of the relation between workplace learning and organizational performance in the Dutch hospitality sector, to hypothesize and research the variables in the correct context, and to build on the existing theory in the hospitality industry.

This explorative qualitative research used semi-structured, in-depth expert interviews with Dutch hotel general managers or HRM/HRD managers (ten or more employees). Experts were interviewed on-site or by phone. Recorded interviews were transcribed. Study variables were labeled and organized using descriptive coding. Mapping determined how variables relate. Memos were employed for spontaneous data suggestions during pattern coding and mapping (Miles and Huberman, 1994). The following table shows that the in-depth interview topics were based on the literature review theories.

Dutch hotel general managers or HRM/HRD managers (depending on size) were interviewed between January and July 2018. Once 10 experts participated, no data saturation was attained, thus five further interviews were scheduled until data saturation was reached. Snowball sampling chose experts. The researcher's network was used to choose a high-quality, variable sample depending on availability. Interviews were conducted between March and June 2018 over the 17-month research period.

Coding based on Strauss and Corbin's model analyzed data (1990). Open coding involves breaking down, evaluating, comparing, conceptualizing, and categorizing data. This generates thoughts for axial coding's second stage. Axial coding links categories to contexts, effects, patterns, and causes (Bryman and Bell, 2015). According to Strauss and Corbin, the third and final stage of selective coding selects the core category and validates its links with other categories to form the tale (1990).

The literature review focused on Western service industry research to reduce coincidence. As it focused on the service business and is reproducible, the research is more dependable. To reduce researcher bias, the literature review encompasses academic theories. Expert interviews are also subjective. The researcher tried to reduce subjectivity and make the research visible by filming, transcribing, coding, and analyzing.

Results

A total of 15 in-depth interviews have been conducted with human resource (HR) or general managers of different hotels, 14 of which are commercial and one a teaching hotel connected to a hotel school. Eight hotels are located in Limburg, four of which are located in Maastricht. Four hotels are located in Amsterdam and one each in Nijmegen, Leiden and Rotterdam. The hotel size ranges from 40 rooms to over 400 rooms; the number of stars ranges from three to five

All interviews emphasize workplace learning. Participants emphasize that labor market supply and demand are out of balance and organizations must take care of their personnel. "Human Resources becomes increasingly vital, it is about our future, we need good people to perform." Learning can make the industry more appealing to these workers.

Learning helps new hires adjust to their brand's standards. Organizations know this about employee onboarding, which often involves substantial formal and informal learning. The mismatch between education and practice is a third reason participants emphasize hospitality learning. One attendee said, "We need fewer and fewer individuals at the administrative high level, we need more and more professionals." Hospitality needs workers who love their job. Participants say school should teach the basics and work can expand on them.

Every organization interviewed encourages learning. "Our hotel culture embraces it." Yet, smaller hotels say that due to work pressure from labor shortages, learning, especially formal learning, is one of the first things to be dropped. Participants agree that learning can extend employees' perspectives, give them responsibilities, push them, and reward them for effective work.

All participants say mistakes are okay. "Done is better than perfect," they say. "We want people to make decisions, but it's also really important that individuals can make mistakes," says another participant. Nonetheless, the employee must learn from the error and not make it again.

Formal learning options differ by organization. Many chain hotels offer training. These trainings usually award certificates. "Standardized training is not a waste of money, but the exact needs and whether it matches truly has to be scrutinized critically," says one participant.

Many chain hotels offer substantial online learning. Whether the average hotel worker learns online is a concern.

Hotels recognized many informal learning methods. Depending on size and grandeur, hotels differed greatly. It's harder to experiment and maintain service quality in larger, more luxury hotels.

All hotels believe that communication during daily, weekly, and monthly meetings is essential while conducting trials. In one smaller hotel, the general manager gave each staff a responsibility to learn about the wine menu, interior, safety, kitchen planning, and so on. Monthly team meetings presented the plans. Employees liked this idea and said they learnt a lot about a topic and from each other.

Informal learning includes reflection. Morning briefings are crucial to contemplation. The morning briefing covers the previous day, the next day, and the biggest events. "We discuss the day and yesterday in morning briefings." Organizations reflect through their error-handling process.

Participants emphasize generational differences in learning from coworkers. "Older personnel are proud to offer their experience and give something to the younger colleagues". Another participant notes that elderly workers learn technology from younger workers.

Colleague learning is crucial during onboarding. Inter-departmental or cross-trainings allow hotel personnel to share their knowledge. "Sometimes it's good when a kid comes with new fresh ideas that you can learn from," says one participant.

Supervisors teach formally and informally. At the end of the day, mistakes are discussed on the work floor. One participant says they are "truly providing them feedback on how they are performing" in evaluation interviews.

Discussion

MGI (2017) and WEF (2017) report that automation will revolutionize the hotel business and make certain functions more vital. Only one interview stated, "We need fewer and fewer individuals at the administrative high level, we need more and more professionals."

The research participants stated that dealing with experimental learning in the workplace is tough when asked about informal learning. While discussing innovative work behavior, participants say they are open to suggestions. These principles are experiential learning. Guest ratings and complaints force companies to adapt and learn. Experimental learning is employed in hospitality, even though the phrase is not used.

Hospitality organizations also reflect. Employee mistakes are reflected on by participants. Morning briefings evaluate the previous day and guest reviews. Hence, reflection is a unique learning method in hospitality organizations.

Research demonstrates that while 80% of learning is innately informal, organizations spend 80% of their budget on formal learning, which accounts for less than 20% of organizational learning (Arets and Heijnen, 2011). In hospitality, numerous informal learning processes happen spontaneously and formal learning opportunities, especially in larger hotels, are prioritized.

As the literature reveals (Aslander and Witteveen, 2015), one participant states that any sort of learning is essential for hospitality organizations to thrive in this period of constant change.

The research participants agree that investing in HRD and a learning climate improves employee capability, employability, and organizational success (Kusluvan et al., 2010;). The better an organization treats its staff, the better they treat guests, enhancing service and quality. Learning is also crucial for an organization to stay inventive in this ever-changing world, according to participants and literature.

Conclusion

This research acknowledges that HRD in hospitality is more important than ever before and only becomes more important as the industry needs good people to perform.

Hotels focus mostly on informal learning. The larger hotels, often part of a chain, also offer a lot of opportunities for formal learning, for example, in academies. Learning through reflection and learning from colleagues and leaders is recognized by all participants. Learning through experimentation happens when ideas from employees are presented or to solve complaints of guests.

With respect to organizational performance, all hotels emphasize the importance of measuring performance. This is done every day and discussed in daily, weekly and monthly meetings. Hospitality organizations measure organizational performance, such as financial performance, quality measures, guest reviews and marketing.

The participants could not answer the questions about perceived organizational performance according to the theory of Delaney and Huselid (1996). Participants, however, do recognize innovative work behavior as organizational performance and confirm that learning is an important factor for the organization to remain innovative.

Overall, employees are stimulated to use the many learning opportunities hotels offer, as the participants believe firmly that learning and development enhance organizational performance. An excellent HR package, including learning and development, tempts employees to work in hospitality and stay with the organization. The participants in the research and the literature therefor conclude that learning is important to improve organizational performance.

Limitations to the research

Next to a literature review, this study used qualitative research methods, and therefore, its subjectivity should be considered. Endeavors were made to limit subjectivity as much as possible by the method of analysis and the interview schedules.

Another limitation is that the interviews were held with general managers and HR managers, rather than employees. The research participants' subjectivity should therefore also be considered.

Since these interviews were done at a time when the economy was thriving, the organizations had money, time and a need for learning. However, as Arets and Heijnen (2011) mention, when money gets tight, the first thing to be cut is the budget for training and development. It is therefore difficult to say whether learning enhances organizational performance or whether organizational performance enhances learning in the workplace.

Another limitation is that the participants could not answer the questions about perceived organizational performance according to the theory of Delaney and Huselid (1996). Therefore, not the entire conceptual model could be answered. Follow-up research could be done into perceived organizational performance in the Dutch hospitality industry.

Question:

Please read the Journal article below (specifically the intro, lit review, and discussion/conclusion. From the abstract "This explorative research therefore studies the relation between workplace learning and organizational performance in the Dutch hospitality industry." Please critique the articleusing this format

1) Introduction

The name of the author and title of the article.

The core idea of the author.

A clear thesis that reflects the direction of your critique.

2) Summary

The main idea of the article.

The main arguments presented in the article.

The conclusion of the article.

3) Critique

Highlight the strong and weak sides of the article.

Express an educated opinion regarding the article's relevancy, clarity, and accuracy, and back up your claims with direct examples from the piece.

4) Conclusion

Summary of the key points of the article.

Finalization of your conclusion with your comments on the relevancy of the research.

If you claim the research is relevant, explain why further study in this field can be useful.

Please follow the format and make it comprehensive