Case Study #__:

Three: Approaches to HRM in the hotel Sector

Jhoanna Mary E. Pescasio

1. In what ways does the environmental context of the two hotels constrain or present opportunities for

strategic choice? How do contextual factors account for the differences in approach to HRM?

Strategic Choice is a forces and variables in the external environment which are dynamic, and that business 

strategies are affected by the interactions between these factors. For the two hotel, their concept in hiring and keeping

employees are relative different, from the facts and figures of employment turnover up to its approach in handling such

kind of situation. Mercury Hotel is very much concern with the fact of high turnover rate compared to Luna Hotel whose

thinking are the availability and large component of labour market is a concrete fact not to hold and consider such issue.

2. From a ‘best fit’ perspective, which of these hotels would appear to have best tailored its HR policies and

practices to its competitive strategy?

For me, the best and a pro-labour approach is the one that implemented b y Mercury Hotel, wherein they are

after the fact of truism of any negligence in handling their people, they are advanced in thinking the possibilities of

retaining the employee, they offer good relationship in terms of work, interpersonal or even personal relationship

that will nurture the success of the company as a whole.

3. What elements of ‘best practice’ HRM has the Mercury Hotel adopted and why might it have done so?

In case of Mercury hotel, their best practice is in terms of expedient approaches in hiring new employees to fill

up vacancies that in return will not became an obstacles or delayed in its daily operations.

4. Drawing on the resource-based view, what elements of people resources could be exploited to create

competitive advantage in the hotel industry?

The resource-based view (RBV) as a basis for a competitive advantage of a firm lies primarily in the application

of the bundle of valuable interchangeable and intangible tangible resources at the firm's disposal. In the case, the 

fact that people needs a job to live make exploitation for those people who needs the job and go with the flow in 

order to landed a job for living. The oversupply and availability of labour market make it for the hotel industry a 

competitive advantage in term sof new hiring or even re hiring of labour.

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