The relevance of human resource management theory on the management practices of hospitality providers on Phillip Island Victoria

Seasonal consumer demand fluctuations for small hospitality businesses create management challenges, with human resource management (HRM) being specifically identified as a 'problem'. In fact, the different academic and practitioner perspectives of HRM in this industry create a credibility gap, resulting in a combination of uninformed strategic planning and practice activities, to exacerbate the issue of market entry and firm sustainability. This study examines the management practices of businesses located on the popular Phillip Island destination in coastal Victoria, and explores the practical management strategies used as well as assessing the relevance of academic theory to these providers. The paper also reviews the relationship between the theory and practice of HRM that exists in the hospitality sector, particularly in relation to seasonal small businesses. Using a qualitative design, patterns of HRM strategies and operational responses were identified to reveal challenges for service quality and business success, that are linked with selecting, recruiting, and motivating talented people. The results reveal the employed staffing procedures use a combination of practical HRM approaches, including casual and flexible employment processes, but without an apparent academically based strategy, which can have implications for small hospitality business. A concluding observation is the planning of more informed strategic HRM approaches has potential to not only increase the effectiveness of the employee and employer relationship, but also recognise the welfare of employees is fundamental in the achievement of organisational objectives