Managing Diversity in Hospitality and Tourism Industry - Literature review Example

Managing Diversity in Hospitality and Tourism Industry Name Institution Introduction and a brief description of the organization Workforce diversity has become an important topic particularly in the tourism and hospitality sector which continue to receive more visitors across the globe (Zanoni, 2011, p.105). Increase in business and tourism activities has created an opportunity where different cultures meet and interact. Therefore, companies which operate in the tourism and hospitality sector are facing tough times where they must understand how to handle international customers and employees rather than just local ones. According to Gong (2008, p.9), Hilton Hotel is one such company which has put a lot of effort in managing diversity. However, a lot is still needed as the company faces criticism over issues like discrimination and high rates of employees’ turnover. Hilton is a chain of hotels with operations worldwide. According to the Hilton Hotels website, the company was first set up in 1919 by Conrad Hilton in Texas, US. The research has shown that Hilton Hotel and Resorts has since grown and has more than 4000 outlets operating within 90 nations, across 6 continents (Hilton Hotels & Resorts, 2016). Its presence in many nations means it gets customers and employees across the globe. Hilton Hotel is regarded one of the leading hotel brands internationally and the top management tries to maintain such image by displaying messages which shows equality and fairness to all (Hilton Hotels & Resorts 2016). Currently, the company employs more than 300,000 employees across the globe. This itself is diversity because these employees use different languages. Similarly, the company deals with more 50 suppliers across the globe that comes from different cultural backgrounds. Areas of diversity that is relevant to Hilton Hotel and Resorts Nkomo and Cox (1996, p.339) described workplace diversity as the disparities among individuals who are interacting or working in an organization such as employees or customers. In Hilton Hotel and Resorts or most of tourism and hospitality businesses, areas of diversity that are relevant to its operation include languages, ethnicities, cultures, sexual orientations, social classes, abilities, ages, sects and religion. A study done by The Herald Sun 2015 claimed that Australia received over 7.2 million tourists in the first quarter of 2015 which indicates a 12 percent increase. Actually, a research carried by Tourism Australia (2011) contended hospitality and tourism is expected to grow and be valued at $140 billion by 2025. On the other hand, a study conducted by The United States Department of Commerce projected that 59.8 million visitors from various parts of the globe toured the United State U.S. within 2010. As stated or shown by the two above researches, growing globalization and increase in tourism activities across the globe make hotels, resorts and restaurants to host managers, employees, suppliers and customers from other linguistic countries (Welch & Welch, 2008, p.343). People who speak different language and requiring different services find themselves interacting. Using Australia which also host Hilton in Melbourne as an example, a study by Strachan, French and Burgess (2010, p.49) showed that it is one of the diverse country based on languages and culture. Currently, over 23.5 million who comes from different cultural background lives in Australia. Europeans, Africans and Asians migrated and settled in Australia leading to evolvement of Australia. These people need customer service with mastery of language to serve them. Language therefore is relevant to the operation in tourism and hospitality and influences market players’ success. Piekkari and Tietze (2011, p.267) contended that language is one of the differences among employees and customers which, if not managed appropriately can affect the performance of the company. Language diversity obstructs effective communication. Normally, there are set official language used in a country and embraced in business transactions. This means that Hoteliers must be fluent in these languages for successful transactions. However, with the increase in globalization, hotel chains go extra miles to adopt universal language, particularly English, hence smooth communication between the hotel and international customers. Piekkari and Tietze (2011, p.269) went ahead to note that employees also need to have mastery of other major language used across the globe such French, Russian and Spanish to communicate with other employees and visitors who come from different countries. It means that hoteliers who are not fluent in the major language mostly used at the Hilton Hotel and Resorts could experience hardship in communicating and answering the request of the workmates and customers (Williams, 2007, p.596). Working in hotel entails having direct contact with clients and hoteliers with language problems could have a complication comprehending a customer’s query and offering inaccurate information. A client who is not able to understand the customer representatives due to lack command of the primary language could be upset. Williams (2007, p.601) urged that language is also relevant and major factor in customer’s self identity and makes them communicate their emotions, shared feelings, tell stories and express complex messages. Understanding of language is also relevant in Hilton Hotel supply chain management and contract negotiations. For example, a negotiation between a Canadian hotel manager with a Chinese supplier has different communication style. Ralston et al. (2008, p.9) asserted that a hotel manager with Canadian would require direct signing of a contract, while Chinese supplier would want to spend more time engaging in non-business talks, in creating a relationship towards contact signing. In a nutshell, language acts as mediator which enable public servants to relate with customers, suppliers and general society (Piekkari & Tietze, 2011, p.268). In addition, a study shows that the Chinese often greet one another while questions which can also be personal as a manner of showing concern for others. This is so different with Western culture where personal questions are asked as they believe in individual’s liberty and privacy. Ralston et al. (2008, p.12) stated that westerners find it as respectful and well-mannered, not to interfere in person’s affairs rather than business. Therefore, these rules of language are relevant in Hilton dealing with both customers and suppliers. An organization like Hilton Hotels & Resorts host people who belong to different social classes (Strachan, French & Burgess, 2010, p.64). Managers, employees, suppliers and customers belong to different classes, including lower, middle class and upper class. Rodriguez (2006) argued that in standard cases, social class is denoted by the amount of salary earns and ranks at the workplace. At Hilton Hotel which is a five star majority of its staffs and target customers belong to middle and upper with small number belonging to a lower class. People like gardeners and cleaners might belong lower at Hilton Hotels & Resorts. Customers in the upper class are sometimes treated better than their counterparts in middle and lower classes. The situation is attributed to the fact that rich people spend more money compared to other customers. Lower class is sometimes given poor services because they spend less money or purchase cheap products and services (Rodriguez, 2006). In nutshell, social class diversity can be used to determine how people interact and are served. Even at Hilton, employees who belong to upper class might not want to interact to their counterparts in the middle and lower class. However, social class diversity influences organization performance. Therefore, management of social class diversity is relevant to the operation of Hilton Hotels and Resort. Strachan, French and Burgess (2010, p.106) opined that if such diversity is not managed appropriately, the resulting situation might see increase of organizational conflict and division among top managers and employees. An organization where members lose social class and value equality efficiency, flow of tasks and better service to customers are achieved (Rice, 2010). In addition, Aoun (2007, p. 69) claimed that discrimination on the basis of social class is not often good for the hospitality and tourism company owing to the fact that it make customers to defect to competitors business when they feel they are not equally treated and valued. Another area of diversity which is relevant at Hilton is one which is based on generational difference or age. In 21st century companies have reduced retiring and now recruit young people. This means that more baby boomers are now compelled to retire whilst more generation called generation Y sometimes referred to as millennial are getting into the job market. In most cases, Youth’ are now considered to be people at the age of 15–24. Strachan, French and Burgess (2010) claimed that the majority are working in retail, recreational and hospitality industry. However, hospitality companies such as Hilton still retain baby boomers since the company wants them to offer training and guidance to generation Y. Existence of these two generations sometimes results to generational difference and conflict. Generation Y, are considered to take approach job in a different manner from baby boomers (Strachan, French & Burgess, 2010, p. 87). The older and younger generations have different culture, interests, goals, behavior and expectations. Research has shown that that most generation Y was born at the era of technology, and communication gadgets were advancing. The millennial are normally attracted and enthused by technology presence in the company and related ethos. Technology has led to change of modes of communication and has it encourage email, text messaging and the use of social networking (Wesolowski, 2014, p. 33). This is different with older generation which prefers face-to-face mode of communication within the organization. The employment of young people, therefore, to some extent is an advantage because marketing and reservation in hospitality and tourism sector now competes on technology. DelCampo (2012, p.32) also asserted that the generation Y do not like naturally to work for a longer duration and shifts like baby boomers. Instead, they prefer work life balance practices like flex time. In his study, Wesolowski (2014, p.34) stated that the differences between the generation and age often fuels organization conflicts leading to disjointed labor force who cannot offer better services to the visitors. The diversity can also be transferred to the customer whereby a crop of generation Y can favour serving people as opposed to the elder which they consider “outdated and cold”. Ethnic diversity is another area of diversity that is relevant to the Hilton Hotel & Resort. Employees who show their ethnicity in the workplace might have a problem with other people’s culture. In particular, Fiske and Lee (2008, p.34) posited that ethnic diversity affects the minorities in the organization. For example, when ethnicity is practiced at Hilton, dominant group will want their opinion to dominate in decision making and meetings. In most cases, people belonging in the ethnic majority tend to think that their way is the right one, and it is this practice which results to misunderstandings, disagreement and then conflict. Strachan, French and Burgess (2010, p.51) posited that ethnic favoritism is still high in hospitality and tourism industry as people managers and employees are hired based on nepotism and ethnicity. In some instances, the appointed managers tend to bring more staffs from his ethnicity to the department they head. With this practice, decisions favour an ethnic group as opposed to having a decision which favour every ethnicity represented in the hospitality and tourism market. Gender and sex is another area of diversity that is relevant to operation of Hilton Hotel & Resort. According to Strachan, French and Burgess (2010, p.73), gender is defined as the feelings, behaviors and attitude that a particular culture relates with an individual’s biological sex. Despite the early steps forward that followed after enactment of equal opportunity legislation, the female still stay engrossed in lower levels of management particularly in Australia. Australian Census of Women in Leadership conducted in 2008 showed that women just held 2 percent of Chief Executive Officer positions, while just 8.4 percent women held Directorships positions (Strachan, French & Burgess, 2010, p.115). The research in hospitality, tourism, food and accommodation services show it as one of the industry, which women hold significant number of positions in leadership. Podsiadlowski et al. (2013, p.161) claimed that the hospitality and tourism sector globally demonstrates the call to take advantage of the role of the female gender as a major factor of talent pool and attraction in the industry. Ozbilgin and Tatli (2008) affirmed that despite the increase of women into the hospitality industry, women still face challenges such as sexual harassment and low salary. Research conducted in Australia about labour force indicates that women still receive low salary compared to their male counterparts as shown in the figure 1 below. In the hospitality sector, employees also undergoing sexual harassment as some customers or fellow employees take their welcoming nature for weakness hence suggestive jokes or comments (Schwabenland & Tomlinson, 2008, p.326). Figure 1: Salary diversities based on gender Source: (Strachan, French & Burgess, 2010) Exploration of approach currently taken by Hilton Hotels & Resorts in managing diversity Workplace diversity has turned out to be a critical issue not only in Australia, but across the global hospitality and tourism industry (Strachan, French & Burgess, 2010, p.7). The intensification of globalization has made Hilton management to cross borders and settles in new markets. Gong (2008, p.11) argued that as Hilton Hotels & Resorts expands some of its employees are prompted to move into new countries to work there. Foreign employees have to interact with colleagues and customers in new target markets who have a diverse cultural background. As companies expand, having culturally-aware employees has become a dream of every management. To achieve this dream, companies have come up with different ways to managing diversity. According to Oxford’s Dictionary of Human Resource Management, managing diversity is defined as ‘a process of determining the wide range of qualities owned by members of the organization’ (Strachan, French & Burgess, 2010, p.121). Managing diversity focuses on the employees and significance of valuing every individual for their unique competence, skills, knowledge, traits, personality and attributes. Hilton Hotels & Resorts understand the importance of managing diversity and has put up various measures to reduce problem which normally due to lack of it. The company shows commitment to valuing diversity by displaying such message on its website and post pined at the organization. The message read, “Hilton Hotels & Resorts is a corporation with diverse culture as its serves diverse visitors with over 40 languages spoken by employees” (Hilton Hotels & Resorts, 2016). The company also acknowledges that they have a diverse workforce of over 300,000 employees who work at over 4,000 Hilton’s outlets across 90 nations. Different approaches have been used by Hilton Hotels & Resort in managing workplace diversity ranging from managerial, pragmatic to legalistic strategies (Knippenberg, de Dreu & Homan, 2004). In addition to inclusion, managerial approaches take the approach of using models, paradigms and theories and in managing diversity at Hilton Hotels & Resorts. Hilton Hotels & Resorts (2016) stated that the company practices inclusion by involving several stakeholders in various decision-making. The company briefs and seeks the opinion of employees before taking them to work in a new country. In this way, the employees can prepare psychologically for the new environment. The company also employs several women in all three levels of management including top level, middle level and lower level of management. For instance, out of eight directors, there are two women (Hilton Hotels & Resorts, 2016). However, inclusion is not considered in making strategic and tactical decision which gives the company its competitive advantages. Hilton Hotels & Resorts also use Thomas and Ely Paradigms which comprises of discrimination and fairness paradigm, learning and effectiveness paradigm and access and legitimacy paradigm to manage diversity (Williams & O’ Reilly, 1998, p.82). Discrimination and fairness paradigm normally highlights the needs for fair treatment, equal opportunity and compliance to the national equal opportunity and employment requirement. Hilton Hotels & Resorts which operate under this approach often institute career-development and mentoring initiatives purposely for the minorities, women and people of diverse races in their ranks, and train and advise other personnel to be aware of their cultural diversities. Alternatively, Williams & O’ Reilly (1998, p.86) claimed that Access and Legitimacy Paradigm believes in celebration and acceptance of employees’ diversities. Williams & O’ Reilly (1998, p.87) stated that Hilton Hotels & Resorts is one of the hospitality firms which also subscribed to this paradigm in the early 2000 and developed a more inclusive work climate in which every employee feel valued. Hilton has also been highlighting months of the calendar which recognizes diverse groups. In addition, Hilton Hotel and Resorts have conformed and integrated to equal opportunity laws into their organization policies so as to ensure its offers equal job opportunities for all qualified people (Hilton Hotels & Resorts, 2016). The laid down policies give an opportunity for the victims of prejudice to complain. Presentation of at least two strategies the business could implement to improve their diversity practices The research conducted by the report has established that diversity impacts relationship, teamwork and recruitment policy thus reducing the efficiency of employees in foreign nations. Therefore, this report recommends at least two strategies in which Hilton Hotel and Resorts could implement to improve their diversity practice. These strategies include Polycentric Staffing, training. Polycentric Staffing Polycentric Staffing can be considered one of best strategies which can be used by Hilton Hotels & Resorts to in managing diversity. This practice entails hiring of nationals from target-market for lower levels of management up to the top level with only a few slots for expatriates. Since Hilton Hotels & Resorts operates in another foreign market, the process will reduce the negative effects of cultural diversity. Developing a committee to oversee diversity Staff acceptance is crucial to attaining the diversity program goals. A way to realize this practice is by creating forming an impartial diversity committee which represents all cultural diversity of Hilton Hotels & Resorts. The top leadership should play a role in empowering the committee to create the diversity statement. The statement should be consistent with the company vision. The committee should be there to guide the employees. Training Hilton Hotels & Resorts needs to invest funds on training of employees. Training has a positive effect in helping diverse employees drop their cultural difference and fit into new organizational culture. Training inspires cultural intelligence on staffs and creates global citizens. Conclusion In conclusion, a diversified organization like that of Hilton Hotel and Resorts reflects an industry that is ever-changing. From the research, it is apparent that advantages of diversity prompt managers to consider managing diversities. In the present business arena, competition and globalization currently desires that a company must have a policy for recruiting staffs from diverse background in order to increase empowerment, global market adaption, customer satisfaction, increase of productivity, improvement of firm’s image and reduction in lawsuits. Therefore, the success of Hilton Hotel and Resorts is a true reflection of a company which has put more efforts in managing diversity. References Aoun, G. (2007). Report of an international forum on managing diversity. Equal Opportunities International, 26(1), 67 – 70 DelCampo, R. (2012). Managing the Multigenerational Workforce: From the GI Generation to the Millennial. Human Resource Management International Digest, 20 (2), 23-45 Fiske, S. T., & Lee, T. L. (2008). Stereotypes and prejudice create workplace discrimination. In A. P. 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