An investigation on managing human resources among small and medium scale hotel operators in Sabah

The rapid growth of the hotel industry in Sabah during the boom period between the years 1996 and 1998 has resulted in a high supply of hotel rooms, therefore causing a scarcity of human resources in this industry. The issue of managing hotels is directly related to human resources and has bccame a critical issue among the hotel operators especially for the budget, one star and two star hotels in Sabah. This empirical study examines issues on training and development, compensation and benefits, and motivation that are important human resource activities with regards to managing human resources among the small and medium scale hotel operators in Sabah. There is no human resource department existing in all small and medium scale hotels. The majority of the hotel operators in small and medium scale have no previous experience in managing human resources in the hotel industry. Lack ofknowlcdge, skills and resources, especially pertaining to employees training and development and motivation, are apparent amongst the small and medium scale hotel operators. This lack of experience becomes a challenge to them in managing the hotel property in Sabah. A significant relationship was found between compensation and motivation in managing hotel employees. This study concluded that ways in which hotel operators can improve in managing human resources included upgrading themselves through relevant training and education; and the provision of competitive compensation and a conducive work enviroment. These improvements will increase employee satisfaction and motivation