Purpose Hotel labour costs in Malaysia are increasing. This paper aims to explore Langkawi hotel managers’ perceptions about reducing labour costs using various information and communication technology (ICT) innovations. Design/methodology/approach Semi-structured interviews were conducted with managers from 19 budget and boutique resorts on Langkawi Island, Malaysia. Qualitative data were recorded, transcribed and content analysed using latent coding. Findings All hotel managers reported using some form of ICT. The purpose for ICT adoption found was to increase productivity and efficiency. A hotel’s customer mix, the need of the organization and the technology budget available influenced the outcome of technological innovation. Langkawi hotels had successfully implemented Property Management Systems (PMSs), but self-check-in/out kiosks were not seen as important as they do not meet their customers’ service expectations. Research limitations/implications This study identifies some factors influencing uptake by hotels of technological innovations. This initial qualitative exploration of the technology adoption feasibility in Langkawi suggests that implementation to reduce labour cost is more likely for employee-operated devices rather than customer-operated devices. Practical implications This study contributes to the human resource (HR) management literature by providing insight into the reasons hotel managers introduce technology in a developing country context. Results suggests that hotels face challenges in reducing labour costs through technology. These insights may serve to guide policymakers and hotel managers in other developing countries that are planning to use technology to solve their HR issues. Luxury hotels can consider adopting ICT for back-of-the-house operations such as using a HR information system within the HR department and PMS for the hotel overall operation. Social implications These findings can increase the Malaysians awareness of ICT importance, especially in the hotel industry. Originality/value The Malaysian national minimum wage order policy was introduced in 2012. This policy has resulted in increased labour costs and suggests a need to adopt ICT. This paper is the first to examine the viewpoints of hotel practitioners as to the viability of this strategy. Whilst many studies on the adoption of ICT in the hotel industry focus on its impact on productivity and firm’s performance using quantitative methods, this study used qualitative methods to explore hotel managers’ perceptions on its feasibility to reduce dependence on labour.
Purpose-This paper explores the HR challenges faced by hotel managers in Langkawi due to the implementation of the Minimum Wage Order (MWO). Design/ methodology/ approach-This study collected qualitative data from twenty managers from nineteen hotels of various sizes and level of service including budget and boutique resorts on Langkawi Island, Malaysia. Semi structured interview is used to ask the question "What are the challenges faced by hotel managers due to the implementation of the MWO?" Findings-The challenges faced by the managers are: low employee productivity levels, many employees with a salary below the minimum wage rate, difficulty paying staff due to low revenue and issues related to the service charge. Research limitations/ implications-This study provides an initial qualitative exploration of an important current legal development impacting hotel managers in Malaysia. It provides some initial findings from Langkawi but the findings may not represent the attitudes of hotel managers in other parts of Malaysia. Practical implications-This study contributes to HR management literature by providing insight to challenges faced by four to five star hotel managers in a developing country. To the managers, the MWO guideline is a serious challenge as some of their employees are not productive enough to be paid at the minimum wage rate. To address increasing labour cost some have turned to the employment of foreign workers while others have increased their casual employee numbers. These insights may serve to guide policy makers and hotel managers in other developing countries that are planning to introduce a MWO. Social implications-For the MWO to be effective, it is crucial for the government to develop effective guidelines for its implementation, and for employees amongst the Langkawi community to increase their level of productivity. Originality/ value-The Malaysian MWO policy was introduced in 2012. The policy affects employees' remuneration and provides a challenge in implementation for the Malaysian hotel industry especially in Langkawi. While many studies on MWO implementation focus on unemployment this study provides the managers' perspective on the challenges faced due to the implementation of this policy and identifies reasons why the unemployment rate for local workers may increase after an MWO.
Purpose – This paper aims to examine the relationship between fringe benefits (FB) provided to hotel managerial employees as part of their compensation and managers’ organisational commitment (OC). Design/methodology/approach – This empirical study collected quantitative data from 104 managers from three-, four- and five-star hotels in Langkawi Island, Malaysia. Data collected included types of FBs received and three components of OC – affective commitment (AC), normative commitment (NC) and continuous commitment (CC). Findings – Significant relationships were found between types of FBs and component of OC. Relocation allowances, sports and social facilities, birthday celebrations and free laundry services have a greater correlation with AC compared to other types of FB. Most types of FBs have stronger correlation with AC compared to NC and CC. Research limitations/implications – The findings of this study are limited to hotels in Langkawi Island, Malaysia and to three-, four- and five-star hotels. Practical implications – Practitioners can use the information provided in this study to develop effective and competitive FB packages. Social implications – It is of utmost importance to ensure the well-being of all employees (managers and non-managers) in the provision of FB packages. Originality/value – Managers’ FBs are an important component of their salary, but there have been few studies of the effectiveness of FBs on hotel performance. This paper provides empirical evidence for the positive effect of FB on OC.
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