HRM Practices on Organisational Performance

Question: Discuss about the HRM Practices on Organisational Performance. Answer: Introduction: The essay focuses on the importance and challenges faced by the hospitality sector of Australia. The hospitality industry around the world faces major challenges today which could be seen I their escalation in operating costs globally, rising energy cost, major shifts in labor conditions etc. Thus it would be important to discuss the challenges in the hospitality industry worldwide and especially the challenges faced by the Australian hospitality industry. All the necessary relevant statistics has been mentioned. Important facts improving the employment status of Australia in regards to the hospitality sector have been mentioned. The issues and challenges faced by the hospitality sector of Australia have also been highlighted. The economy of Australia is greatly affected by the hospitality industry. Sydney is considered to be the heart of Australia. According to a job survey done in Australia in the year 2005, 61,000 new job posts were created for hotels, restaurants and cafes. Annual growth of 2.2 % over the following five years was also predicted by the survey. The hospitality sector is considered to be the main player in Australias economy. The hospitality sector provides employment opportunities to more than 2, 70,000 across the country. The local goods and services are consumed by the hotels in Australia (Kusluvan et al, 2010). A research was conducted into the importance of hotel industry in Australia by price water house coopers in the year 2009 and it stated that 88 % of the pubs are independently owned. 34.7 people have been appointed by the average hotels of Australia. In order to keep the venues safe, the hotels in Australia spends about $515.6 million annually (Nadiri et al, 2010). The sporting and community organizations of Australia are supported by the hotels. The hotels in Australia provide more than $ 75 million annually to support these organizations. More than $ 70 million is spent by the hotels of Australia to provide proper training to the staffs and for their development. 21.9 % of the total hotel expenses are kept for spending on the wages and salaries. More than 2, 50,000 live music performances are hosted by the hotels of Australia. This also provides opportunities for the development of the local music talent (Adhari, 2009). The hospitality industry of Australia faces the biggest technology issue to make an agreement with the payment card industry data security standards. Based on payment card industry data security standards, the hotel industry mainly faces five issues and these are: There is a presence of broad attack surface in the networks environments and ecosystems. The hotel sectors face an excess of systems including food, sales, accommodation, reservations, services, etc. hotels are also considered to be the mixture of retail merchant operations across traditional hospitality services (Chand et al, 2007). Opportunities are provided to hackers to enter the business and gain some profit percentage by knowing all the informations regarding credit card data. There is a presence of poor IT security support. In this competitive world, the hotel chains often open their franchise in new locations quickly in order to expand the business without thinking about the support from IT security (Chand, 2007). Absence of information security awareness is there in the hospitality sector. The employees are considered to be the weakest link in the field of data security. 87 percent of the employees, experienced breaching of information, did not have any security policies (Chen et al, 2010). Educating the employees with all the necessary security details is very essential. Only 32 percent of the employees claimed that they received proper training on the organizations security details (Kusluvan et al, 2010). The hospitality sector hosts complex IT environments. The hotel sector mainly faces complexity in order to accommodate various systems which need to interact with each other, for example point of sale systems, central reservation system, etc. The hotel sector lacks network segmentation. Absence of network segmentation amongst the individual operators is considered to be one of the most difficult challenges faced by the hotel sector. Manpower is an important challenge for the hospitality industry all around the world and especially in Australia. The changing labor conditions globally make it difficult for the hospitality industry to acquire and retain manpower. The changing demographics has been a major cause of the shortage of skilled labor in the hospitality industry. The hospitality sector faces shortage of qualified and skilled employees. The hospitality sector faces huge renovation costs which are not affordable by maximum of the owners of the hotels. Demographic changes are also considered to be one of the issues. The Hospitality sector finds it difficult to keep up with the rapidly changing environment (Ladhari R 2009). The hotels need to develop proper management team in order to train and enhance the employee management. The changing behavior and attitude of the customers also affects the hospitality sector. The hospitality sector finds it very difficult to appoint the appropriate candidate in order to bear the cost of employee training. The hospitality sector must bring employment contracts up to date. Employment agreements are absent in 75 percent of businesses in hospitality. In order to have a pleasant working environment, the hospitality sector must ensure to have safe employment agreements. The hospitality sector must keep reviewing and implementing all the necessary social media policies (Kusluvan et al, 2010). Hospitality industry must keep a look out for any essential industry updates. The hospitality sector must build a strong and effective system of managing human resource. One of the biggest problems in the hotel industry of Australia is the problem of staff turnover. The hotels of Australia lose around half of them employees and workers every year. All the businesses taking place in the hospitality sector must observe all the changes taking place in the business environment. All the necessary points have been mentioned by which the hospitality sector can improve their system of working. Hiring of appropriate employees and workers is essential in the sector of hospitality. 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