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Journal of Human Resources in Hospitality & Tourism

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Human resource management practices and organizational commitment in four- and five-star hotels in Egypt

Mohamed A. Nassar

To cite this article: Mohamed A. Nassar (2018) Human resource management practices and organizational commitment in four- and five-star hotels in Egypt, Journal of Human Resources in Hospitality & Tourism, 17:1, 1-21, DOI: 10.1080/15332845.2017.1328258

To link to this article: https://doi.org/10.1080/15332845.2017.1328258

Published online: 06 Jun 2017.

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Human resource management practices and organizational commitment in four- and five-star hotels in Egypt

Mohamed A. Nassar

Faculty of Tourism and Hotels Department of Hotel Studies, University of Alexandria, Azarita, Alexandria, Egypt

ABSTRACT Previous studies have shown that human resource management practices affect hotel performance by influencing employees’ commitment to their organization. Organizational commitment, in turn, influences workforce turnover, organizational citizenship behavior, and job performance. This study analyzed the relationship between human resource management practices and organizational commitment in 257 employees in nine four- and five-star hotels in Cairo and Alexandria, using partial least squares structural equation modeling to test models predicting organizational commitment. Hiring, training and development, performance appraisals, remuneration, and communication were all positively and significantly related to affective commitment, but only communication affected continuance commitment.

KEYWORDS Egypt; hotels; human resource management practices; organizational commitment; partial least squares

Introduction

Many hotels today face competitive and rapidly changing operating environments because of changes in labor markets, advancement in technology, globalization, and regulation. They, therefore, need to find a way to gain a competitive advantage in these dynamic markets. Hotels’ success now depends on their ability to continu- ously improve their performance and, at the same time, reduce operating costs (Ahmad & Schroeder, 2003). Human resource management (HRM) has a role in generating new knowledge, motivating employees, and supporting the hotel to gain a sustainable competitive advantage over other firms (Bae & Lawler, 2000).

HRM practices provide a way for hotels to shape the attitudes and behaviors of their employees. Good HRM practices can create an environment that makes it easy for employees to become an integral part of the hotel’s operations and support the achieve- ment of organizational goals. HRM practices are also reflected in the way in which employer and employees relate. There is, therefore, a close relationship between HRM and organizational commitment in hotels (Ahmad& Schroeder, 2003).

CONTACT Mohamed A. Nassar [email protected] Faculty of Tourism and Hotels Department of Hotel Studies, University of Alexandria, Ali Moustafa Moshrfah St, Azarita, Alexandria, Egypt. © 2018 Taylor & Francis Group, LLC

JOURNAL OF HUMAN RESOURCES IN HOSPITALITY & TOURISM 2018, VOL. 17, NO. 1, 1–21 https://doi.org/10.1080/15332845.2017.1328258

Traditional competitive mechanisms have become less effective as business becomes more complex, and companies need to search for new sources of competitive advantage (Campbell, Coff, & Kryscynski, 2012). Research shows that many HRM practices have the potential to improve and sustain organiza- tional performance (Albrecht, Bakker, Gruman, Macey, & Saks, 2015; Alfes, Shantz, & Truss, 2012; Godard, 2001; Wright, Gardner, & Moynihan, 2003). Although many studies on the relationship between HRM practices and organizational commitment have concentrated on a single HRM practice, instituting multiple complementary HRM practices also enhances organiza- tional commitment (Bae & Lawler, 2000).

Organizational commitment is a good indicator of whether the HRM practices in an organization can foster psychological links between organizational and employee goals. This intangible result of an HRM system is vital to retain employ- ees and benefit from their full potential (Boselie, Dietz, & Boon, 2005).

The purpose of this study was to analyze the relationship between HRM practi- ces and organizational commitment in the hotel industry, and in particular in four- and five-star hotels in Cairo and Alexandria. The research objectives were:

1) To establish whether employee-reported HRM practices affect affective commitment;

2) To discover whether employee-reported HRM practices influence continu- ance commitment; and

3) To suggest ways in which HRM can be used to improve hotel performance.

Literature review

Organizational commitment

Many authors have attempted to define commitment to an employing organization (e.g., Meyer & Allen, 1997; Mowday, Porter, & Steers, 1982; Reichers, 1985). Gen- erally, commitment is the force that binds individuals to a course of action related to a given target (Meyer & Herscovitch, 2001). Organizational commitment can, therefore, be considered as the degree to which employees are willing to maintain their links to an organization because of close interest in and association with the organization’s goals and values (Godard, 2001; Guest, 1997; Guest, Michie, Conway, & Sheehan, 2003).

Organizational commitment is also characterized by the attitudes and behaviors of employees. Attitudes reflect feelings like attachment, identifica- tion, and loyalty to the organization (Guthrie, Spell, & Nyamori, 2002). Many employees who are committed to their organization engage in specific behav- iors because they believe it is morally correct rather than for their personal satisfaction (Guthrie et al., 2002). Organizational commitment can also include a state in which employees are bound by the actions and beliefs that sustain their activities and participation in the organization (Harter, Schmidt, & Hayes, 2002).

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Organizational commitment models

Meyer and Allen (1997) proposed a three-component model of organizational commitment, covering affective commitment, continuance commitment, and nor- mative commitment. The three dimensions describe the way in which commit- ment develops and how this relates to behavior.

Affective commitment Affective commitment is the employee’s emotional attachment to, and identifica- tion and involvement with, the organization. Dedicated employees with greater affective commitment are more likely to continue working for the organization because they want to do so (Hoque, 1999), and because they believe their employ- ment by the organization is congruent with their goals and values (Harter et al., 2002).

This type of commitment is a work-related attitude with positive feelings towards the organization. Affective commitment also reflects the relative strength of an individual’s identification with and participation in a given organization. The extent to which employees’ needs and wants are matched by their work experien- ces affect the strength of their affective commitment.

Since affective commitment is based on employees identifying with and forming an attachment to the organization, organizations can foster it by establishing a rewarding relationship with their employees. The goals of the individuals and orga- nization should be congruent (Huselid & Becker, 1996).

Continuance commitment Continuance commitment is defined as the employee’s awareness of the costs of leaving the organization, including the risks that follow, and the economic benefits of staying. Employees showing continuance commitment remain for the positive extrinsic rewards, such as pay and pension benefits, and do not necessarily identify with the organization’s goals and objectives (Huselid & Becker, 1996). This com- mitment is often the weakest, especially when there are plenty of alternative employers available to provide similar extrinsic rewards (Huselid & Becker, 1996).

Normative commitment Normative commitment is the feeling of duty and responsibility that individuals have to continue with their current employment. In other words, employees stay with the organization because they believe that is the right thing to do. It becomes morally right to remain there despite any lack of satisfaction (Worsfold, 1999). Normative committment is affected by the employee’s beliefs surrounding the accepted norms of reciprocity between an employee and their employer. Employ- ees will, therefore, feel obliged to “pay back” the organization for its investment in them, for example, through training and development (Wood, 1999). Normative commitment has been found to be highly interrelated to affective commitment

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(Wang, Indridason, & Saunders, 2010). Only continuance and affective commit- ment were, therefore, analyzed in this study.

Levels of organizational commitment

Three different levels of organizational commitment have been identified

Higher levels of organizational commitment This level is characterized by acceptance of the organization’s values and willing- ness to put in more than is expected (discretionary effort) and remain employed there. Employees at this level of commitment stay because they want to do so (Wood, 1999).

Moderate levels of commitment This level is characterized by the logical acceptance of employees that they should put in effort to help achieve organizational goals. At this level, to remain employed, the employee’s moral commitment to the organization is associated with the nor- mative dimensions of commitment. They will stay because they feel they should, not necessarily because they want to do so (Way, 2002).

Lower level of commitment This level is characterized by lack of acceptance of the organization’s goals and val- ues, and by employees who are not willing to put any effort into achieving the organization’s goals and values. This type of employee is willing to leave at any time, and is often disillusioned with the organization (Wall & Wood, 2005).

Effects of organizational commitment

Negative effects of organizational commitment A negative effect may result from either low or excessively high organizational commitment, but usually results in low productivity (Kelliher & Johnson, 1997). Undercommitment is characterized by fear of failure, procrastination, negative cul- tural practices, and continuous under-performance. Overcommitted employees tend to “burn out,” become obsessed with patterns in jobs and use a lot of energy to produce very little (Kelliher & Johnson, 1997).

The rate of staff turnover and absenteeism can be very high in places character- ized by low commitment. The lack of commitment to an organization’s goals leads to employee absenteeism, reduced effort expenditure, and unwillingness to relocate (Baruch, 1998).

Positive effects of organizational commitment Organizational commitment is often seen as a predictor of job satisfaction (Huselid & Becker, 1996). When employees are committed, they contribute more positively to the organization than their less-committed colleagues (Glebbeek & Bax, 2004).

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Organizations with a high commitment level have better performance and increased productivity (Albrecht et al., 2015; Godard, 2001; Wright, Gardner, & Moynihan, 2003). This suggests that higher levels of commitment increase employee efforts to perform and invest their personal resources in the organization.

In hotels, employee commitment contributes to a stable and a productive work- force. It also enables employees to contribute fully to the development and achieve- ment of organization goals (Hoque, 1999; Worsfold, 1999). Price (1994) found that employees who are highly involved in their workplace rarely leave, and make efforts to improve their working conditions. These employees are obviously most likely to be retained, as they are goal-oriented and innovative.

In summary, when employees are committed, they feel affiliated and attached to their organization. Affectively and normatively committed employees are likely to remain employed and contribute to the success of the organization.

HRM practices and their relationship to organizational commitment in hotels

HRM practices have been identified as a major element for firms (Baum, 2015), especially hotels, in achieving sustainable success in competitive and dynamic mar- kets. HRM is a strategic approach for managing the assets that are most valued, the people, or “human resources,” who help to achieve the organization’s objectives. HRM is involved in decisions and practices that both directly and indirectly affect employees (Lengnick-Hall & Lengnick-Hall, 1988). It can, therefore, be defined as combinations of people-centered management activities that identify employees as assets to be developed and skillfully maintained so that they contribute to the achievement of the organization’s goals (Senyucel, 2009). HRM practices are the set of internally-consistent policies and practices designed to ensure that human capital contributes to the achievement of the organization’s objectives (Bartel, 2004; Delaney & Huselid, 1996).

HRM practices influence employee skills through the acquisition and develop- ment of the organization’s human capital (Lengnick-Hall & Lengnick-Hall, 1988). For example, its influence on recruitment and selection of new employees will deter- mine the quality and the type of skills of new employees. Services provided by hotels will, therefore, be determined by the efforts made by HRM in choosing new employees, and in training up existing ones (Kimpakorn & Tocquer, 2009; Roehl & Swerdlow, 1999; Worsfold, 1999). Failure to identify and develop skillful employees will lead to the hotels’ failing to meet revenue targets, as the human capital available will not be able to contribute effectively towards the achievement of organizational goals (Lengnick-Hall & Lengnick-Hall, 1988). Many clients in tourist hotels believe that the services they receive and the way in which employees interact with them is affected by HRM practices. This suggests that the service they receive has an obvious relationship with HRM practices, such as training (Roehl & Swerdlow, 1999).

Although not necessarily a part of formal HRM practices, organizations that share information, let their employees participate in decision-making, and treat

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them with respect find that employees are more involved in achievement of organi- zational goals. These practices also increase employee identification with the orga- nization, and, in turn, can increase their commitment to the organization (Michie & Sheehan-Quinn, 2001). Scholars agree that HRM practices are significant in whether organizations achieve a sustainable performance (Lucas, 1996; Mathieu & Zajac, 1990; Meyer & Allen, 1991; Meyer & Herscovitch, 2001; Meyer, Stanley, Herscovitch, & Topolnytsky, 2002). Systematic use of HRM practices tends to lead to more sustainable performance than relying on individual practices. Employee performance is greatest when HRM practices result in increased motivation, redundant processes are culled, and practices reinforce the same message. Rigorous selection and training of employees, for example, adds value to their existing skills, and increases their motivation and commitment (Lengnick-Hall & Lengnick-Hall, 1988).

While some scholars view certain HRM practices as superior, any practice that does not support others will reduce sustainable performance. However, sustainable success is usually rooted in the use of best practice. HRM practices vary widely between hotels (Lucas & Deery, 2004). Variation is particularly seen in perfor- mance-based compensation schemes that reward individuals for outstanding per- formance, and which make them more committed. Employee development and retention plans encourage long-term relationships in work environments, and reg- ular focused assignments impart specific knowledge of the hotel that makes the employees appear relevant. Both these also encourage commitment and improve motivation (Lucas, 1996; Lucas & Deery, 2004; Mathieu & Zajac, 1990; Meyer & Allen, 1991; Meyer & Herscovitch, 2001; Meyer et al., 2002).

It can, therefore, be concluded that HRM practices are theoretically and empiri- cally related to overall organizational performance (Delery & Doty, 1996). Although there is no commonly-accepted typology to classify HRM practices into specific domains, previous research has identified several human resource (HR) practices that can affect organizational commitment and contribute to overall organizational performance. Ulrich and Lake (1991) and Ulrich (1997) clustered HR services into six domains: staffing, training and development, appraisal, rewards, organizational governance, and communication.

Geringer, Freyne, and Milliman (2002) offered an alternative proposal. They identified five types of job-related factor that affected commitment: employment opportunities, personal attributes, work environment, relationships, and organiza- tional structure and management style. Hotel management has a significant influ- ence on job-related outcomes, such as turnover, absenteeism, effort put into the job, and job performance. Ambiguous jobs may lead to a lack of commitment or the promotional opportunities that enhance organizational commitment (Huselid & Becker, 1996). The level of responsibility and autonomy given to employees has a significant effect on commitment. When employees are given higher levels of responsibility and autonomy, the job becomes less repetitive and more engaging, in turn boosting their level of commitment.

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Employment opportunities Employment opportunities affect organizational commitment. This is seen when individuals who strongly believe they could get a better job elsewhere become less committed, as they weigh up the alternatives available (Richard & Johnson, 2001).

Personal characteristics Organizational commitment can be influenced by the employee’s personal charac- teristics, such as age, gender, and years of service. Those who have tenure and senior positions, or who are satisfied with their position tend to have a higher level of commitment. Other beliefs based on job characteristics and gender roles can also influence an individual’s level of commitment (Richard & Johnson, 2001).

Work environment The conditions in which people operate in the workplace can cause either positive or negative commitment.

Positive relationships Relationships with colleagues can affect organizational commitment either posi- tively or negatively. When individuals are supervised effectively, they tend to be more committed to the firm. Other relationships within a team are also significant in fostering organizational commitment. Employees tend to develop stronger com- mitment when they have good relationships in the workplace.

Organizational structure The organizational structure contributes significantly to employee commitment. For example, a bureaucratic structure reduces commitment. The removal of bureaucratic barriers and creation of simple procedures enhances employee perfor- mance and increases their commitment. It also increases their loyalty and attach- ment to the organization (Kelliher & Johnson, 1997).

Management style When employees feel like they are active participants and even part-owners in their workplace, they develop a sense of importance and feel part of the decision-making process. This feeling can be developed through a management style that encour- ages employees to be actively involved in work and shows them how their work helps to achieve organizational goals. A more flexible and involved management style can encourage increased commitment (Kelliher & Johnson, 1997).

The following research hypotheses were, therefore, formulated:

Hypothesis 1: There is a significant, positive relationship between HRM practices in hotels and affective commitment.

Hypothesis 2: There is a significant, positive relationship between HRM practices in hotels and continuance commitment.

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Methods

Study subjects and data collection

Data were collected from staff in 22 selected four- and five-star hotels in two major cities in Egypt. The hotels were chosen from the Egyptian Hotel Association. This website also provided data about the size, star rating, ownership and contact details, and indicated that these hotels represented a substantial part of the upscale hotel industry in Egypt. It was expected that HRM practices in these hotels would be substantially influenced by large hotel chains and hotel companies, in a way that would not be seen in smaller hotels with a lower star rating. Both chain and non-chain hotels were included, but any with lower rates, including economy, floating and resort hotels, were excluded on the basis that these would not have a dedicated HRM department/manager. As a result, all the sampled hotels were upscale full commercial hotels. The sample included more four-star than five-star hotels to reflect the distribution of hotels across the two cities, as identified from the database. The two cities were selected on a convenience basis, since both were an acceptable traveling distance from the research base.

The HR managers in the selected hotels were contacted by letter, setting out the purpose of the research, and asking for their help. The letter included a copy of the questionnaire. Nine HR managers responded favorably, and agreed to participate in the study. They specified the number of staff who had worked in the hotel for at least 2 years, and were sent sufficient copies of the questionnaire to distribute to all employees with more than 2 years of service. They were given clear instructions to distribute across all departments and then collect and return the questionnaires within 4 weeks. A total of 885 questionnaires were distributed.

Instrument

HRM practices Geringer et al.’s (2002) scale was used to measure HRM practice. There are 50 items in the modified scale, which measures HRM practices in terms of attitude towards HR department, practices relating to hiring, training and development, performance appraisal and pay, and communication on a Likert-type scale from 1 to 5 (with 1 means “not at all” and 5 means “to very large extend”). Each subscale was assessed using Cronbach’s alpha score to evaluate internal consistency, and a score of 0.7 or more was considered to be sufficient.

Organizational commitment Meyer and Allen’s (1997) 24-item instrument was used for this study. This instru- ment was designed to assess the three components of organizational commitment, with eight items per subscale using a Likert scale from 1 to 5 (with 1 means “strongly disagree” and 5 means “strongly agree”). Since normative commitment is closely related to affective commitment (Wang et al., 2010), only the continuance

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and affective commitment scales were used in this study. Cronbach’s alpha scores were computed for each subscale to evaluate internal consistency and a score of 0.7 or more was considered to be sufficient. After testing, one item was dropped from the affective commitment scale (“I do not feel a strong sense of belonging to my organization”) to increase internal consistency.

Data analysis

Demographic variables and internal consistency measures were calculated using SPSS 20.0 (IBM), and partial confirmatory factor analyses were also attempted using SPSS. Data were subjected to partial least squares (PLS) structural equation modeling (SEM) if a positive definite matrix could not be obtained using confirma- tory factor analysis. Following the methods of Wong (2013), the PLS SEM was car- ried out using SmartPLS 2.0.

Two separate models were built using HRM variables, one predicting affective commitment and the other continuance commitment. The inner model consisted of the latent HRM and commitment factors. The outer model indicators consisted of each scale’s individual items and were constructed using reflective measurement scales. The following settings were used in the PLS SEM analysis: Weighting Scheme: Path Weighting Scheme; Data Metric: Mean 0, Variance 1;Maximum Iter- ations: 300; Abort Criterion: 1.0E-5; Initial Weights: 1.0. The values examined were endogenous variable variance, path coefficient sizes and significance, outer model indicator loadings, and convergent and discriminant validity. The bootstrapping procedure in SmartPLS was used to perform significance tests (t-tests) on struc- tural path coefficients and outside loadings, using the “No Sign Changes” method with 400 cases and 5,000 bootstrapped samples for each model.

Reliability was assessed by evaluating internal consistency with Cronbach’s alpha scores and with composite reliability in PLS (Bagozzi & Yi, 1988). Conver- gent validity for each model was assessed by evaluating the average variance extracted (AVE) for each latent variable, with an ideal value of 0.50 or higher (Bagozzi & Yi, 1988). Discriminant validity was assessed by comparing the square root of the AVE value with the latent variable correlations. Fornell and Larcker (1981) suggested that discriminant validity can be established if the square roots of the AVE values are greater than the latent variable correlations.

Results

Questionnaires were sent out to 885 individuals and 257 were returned, giving a response rate of about 29%. Approximately the same number of usable question- naires was received from each hotel. Among the respondents, 194 were male and 61 female. Table 1 summarizes their demographic information.

Means, standard deviations, and outer model loadings are given for each item within a subscale (see the appendix). For both models, all items entered as outer model indicators were significant at the p � 0.05 level, with the exception of one

JOURNAL OF HUMAN RESOURCES IN HOSPITALITY & TOURISM 9

item from the communication scale. For Model 1, all but two items entered as outer loadings for the affective commitment scale were significant at the p � 0.05 level. For Model 2, all but one item entered as outer loadings for the continuance commitment scale were significant at the p � 0.05 level.

Model reliability and validity

Ten items were used to assess employee perceptions of hiring decisions. The Cron- bach’s alpha score was 0.95. The 10 items for training and development had a D 0.91. The 11 items for use of performance appraisals, and nine for remuneration practices had a D 0.88 and 0.93, respectively. Finally, communication was assessed through 10 items with a D 0.90. Reliability of measures was deemed sufficient as all measures of composite reliability were 0.66 or higher (see Table 2) and all Cron- bach’s alpha scores were 0.70 or more. For affective commitment, once one item had been dropped, the scale showed sufficient internal consistency with a D 0.72. The continuance commitment scale also showed sufficient internal consistency with a D 0.71.

For Model 1, convergent validity was relatively weak for affective commitment (AVE D 0.40) and performance appraisals (AVE D 0.45). All other variables showed sufficient convergent validity (see Table 2). For Model 2, convergent valid- ity was very weak for continuance commitment (AVE D 0.24) and relatively weak for performance appraisals (AVE D 0.44).

Table 1. Demographics of the 257 respondents.

Number Percent

Gender Male 204 79.4 Female 53 20.6

Age 21–23 yrs. 193 75.1 36–55 yrs. 52 20.2 Over 55 yrs. 12 4.7

Experience 0–5 yrs. 117 45.5 6–10 yrs. 69 26.8 Over 10 yrs. 71 27.6

Years in current position 2–5 yrs.* 192 74.7 6–10 yrs. 40 15.6 Over 10 yrs. 25 9.7

Education High school 12 4.7 Diploma 61 23.7 Bachelor degree 177 68.9 Post graduate 7 2.7

Status Management 54 21 Non-management 203 79

Hotel category Five-star 90 35 Four-star 167 65

�The questionnaire was only given to staff who had worked at least 2 years in their current position.

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Table 3 shows square root AVE values and latent variable correlation coeffi- cients. For Model 1, affective commitment showed relatively weak discriminant validity. For Model 2, discriminant validity was confirmed for all latent variables except for performance appraisals.

Hypothesis testing

Hypothesis 1: There is a significant, positive relationship between HRM practices and affective commitment.

Model 1 predicted affective commitment from HRM practice variables. PLS SEM analysis revealed that the five HRM practice variables accounted for 57.69%

Table 3. Discriminant validity statistics: AVE square root values and latent variable correlation coefficients.

Model 1

1 2 3 4 5 6

1. Affective commitment 0.63 2. Communication 0.63 0.76 3. Hiring practices 0.69 0.69 0.85 4. Performance appraisals 0.68 0.68 0.74 0.67 5. Remuneration 0.67 0.82 0.74 0.74 0.79 6. Training and development 0.68 0.59 0.83 0.79 0.67 0.75

Model 2

1 2 3 4 5 6

1. Continuance commitment 0.49 2. Communication 0.46 0.75 3. Hiring practices 0.43 0.70 0.85 4. Performance appraisals 0.40 0.73 0.75 0.66 5. Remuneration 0.39 0.81 0.73 0.78 0.79 6. Training and development 0.40 0.62 0.81 0.75 0.66 0.75

Note. Bold entries are square root AVE values; all other values are latent variable correlation coefficients. Discriminant validity was considered sufficient if AVE square root values were larger than correlation values (shown across rows and columns; Fornell & Larcker, 1981).

Table 2. Latent variables and path coefficient statistics.

Scale AVE Composite reliability Path coefficient SE T

Model 1 Affective commitment 0.40 0.78 — — — Hiring practices 0.72 0.96 0.166 0.07 2.51*

Training and development 0.57 0.93 0.222 0.06 3.42*

Performance appraisals 0.45 0.90 0.175 0.07 2.56*

Remuneration practices 0.63 0.94 0.153 0.07 2.33*

Communication 0.57 0.92 0.141 0.05 2.65*

Model 2 Continuance commitment 0.24 0.66 — — — Hiring practices 0.72 0.96 0.147 0.09 1.60 Training and development 0.56 0.92 0.095 0.07 1.27 Performance appraisals 0.44 0.89 0.042 0.10 0.43 Remuneration practices 0.63 0.94 ¡0.100 0.14 0.73 Communication 0.56 0.92 0.352 0.12 2.95*

Note. AVED average variance extracted; SE D standard error. �p < 0.05.

JOURNAL OF HUMAN RESOURCES IN HOSPITALITY & TOURISM 11

of the variance in affective commitment, with the model converging in seven itera- tions. Upon examining individual path coefficients, all five HRM variables were positively and significantly related to employees’ affective commitment to their organization, supporting Hypothesis 1. Table 2 summarizes the model statistics and shows that training and development practices contributed most to affective commitment, followed by performance appraisals, then hiring practices, remuner- ation practices, and finally communication. Figure 1 shows path analysis of the latent variables tested in Model 1.

Hypothesis 2: There is a significant, positive relationship between HRM practices and continuance commitment.

Model 2 predicted continuance commitment from HRM practice variables. PLS SEM analysis revealed that the five HRM practice variables accounted for 24.28% of the variance in continuance commitment, with the model converging in 12

Figure 1. PLS path analysis predicting affective commitment from HRM practices. HRM variables accounted for a combined 57.69% of the variance in employees’ affective commitment to their organization. All five HRM latent variables were significantly associated with affective commitment (all t values � 2.33, all p values < 0.05).

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iterations. Upon examining individual path coefficients, only communication was positively and significantly related to employees’ continuance commitment to their organization, offering only partial support for Hypothesis 2. Table 2 summarizes the model statistics and shows that communication contributed most to continu- ance commitment, followed by hiring practices, remuneration practices (negative coefficient), training and development, and, finally, performance appraisals, although none of these was significant. Figure 2 shows path analysis of the latent variables tested in Model 2.

Discussion

This study found that HRM practices in four- and five-star hotels had positive effects on both affective and continuance commitment in employees.

Figure 2. PLS path analysis predicting continuance commitment from HRM practices. HRM varia- bles accounted for a combined 24.28% of the variance in employees’ continuance commitment to their organization. Communication was the only latent variable significantly related to continuance commitment (t D 2.95, p < 0.05).

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Affective commitment

Hotel employees who rated their organization positively for both hiring and train- ing and development practices also showed positive and significant affective com- mitment towards their organizations. Training and development practices contributed most to affective commitment, followed by performance appraisals, then hiring practices and communication. This fits with previous findings that good use of training ensures that hotel employees have the relevant skills to per- form essential operational hotel activities and this, in turn, fosters feelings of attachment in the employees towards the organization (Lucas, 1996). However, it is not consistent with studies on the importance of recruitment (for example, Leng- nick-Hall & Lengnick-Hall, 1988). It may be that employees who had worked at that hotel for at least 2 years felt that recruitment practices were less important than subsequent training, because they did not remember their level of skill on joining.

Huselid and Becker (1996) suggested that to develop and foster affective com- mitment, the goals of organizations and individuals should be congruent. The find- ings in this study confirm that training and development may support this congruence, and also develop a sense of being valued by the organization. Effective performance appraisals seem likely to enhance this sense, along with performance bonuses and remuneration, but to a much less extent.

McGunnigle and Jameson (2000) found that provision of feedback and encour- agement to employees can help to develop desired behaviors. Used successfully, these practices can encourage employees to do more than their required duties which, in turn, can positively affect organizational effectiveness and also discour- age any negative behaviors (McGunnigle & Jameson, 2000). HRM practices can also foster increasing teamwork between managers and workers, and so increase workers’ attachment and commitment to the organization (Michie & Sheehan- Quinn, 2001). This suggests why communication was significant in determining levels of affective commitment in this study.

Continuance commitment

The analysis showed that only communication was positively and significantly related to employees’ continuance commitment to their organization. The model showed that a contribution was made by hiring practices, remuneration practices (negative coefficient), training and development, and performance appraisals, but that these were not significant.

This is interesting, because it is not consistent with previous research, such as Huselid and Becker (1996), who found that employees showing continuance commitment remain for the positive extrinsic rewards, such as pay and pen- sion benefits. They do not necessarily identify with the organization’s goals and objectives, which would suggest that communication should be less important.

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Other previous studies, however, have shown that consistent organizational support like incentives and other rewards for better performance may not influ- ence continuance commitment unless salaries are at such a level that employees would lose money if they left (McGunnigle & Jameson, 2000). This may be influ- encing the results of this study, although further research on this might be beneficial.

This study found a negative correlation between intention to leave the employer and organizational commitment. Previous studies have also shown that the corre- lation varies for the different elements of organizational commitment. The greatest correlation is shown for affective commitment, followed by normative and contin- uance (Price, 1994).

Conclusion and implications

The findings of this study suggest that HRM practices can influence organizational commitment of employees in four- and five-star hotels in Egypt. The effect is par- ticularly strong for affective commitment, although some elements of HRM prac- tice also affected continuance commitment. Price (1994) also found a larger correlation for affective commitment, followed by normative and continuance. Previous studies, however, have suggested that continuance commitment is often weaker (Huselid & Becker, 1996). The strong implication is, therefore, that manag- ers in the hotel industry should focus on practices that influence affective commit- ment if they wish to improve commitment, and therefore, employee retention. While this study confirms previous work, it also makes an attempt to quantify the value of HRM practices, giving managers an empirical basis for their actions and selection of particular priority areas.

This gives it strong practical implications for the hotel industry in Egypt. The models suggest that managers should focus in particular on creating and providing strong training and development programs for all staff. These programs should include elements of both skill development and information provision. In other words, managers should provide two sorts of training. The first covers the goals and aims of the hotel, and about policies within the hotel or chain, to ensure that employees understand them. This should be provided by managers themselves, to surface and enable sharing of tacit knowledge. The second type of training is to improve specific skills identified as important. Training may therefore need to be tailored to the specific hotel, as well as to the individual concerned, rather than generic, and managers may need to discuss this with training providers. Managers should also consider developing and providing the hotel’s training programs them- selves, rather than using external providers, to increase sharing of tacit information and knowledge. Internal provision may be both cheaper and more cost-effective than using external training providers. On-the-job training, using a combination of shadowing, job rotations and a formal mentoring and/or coaching program, can also offer very cost-effective training for specific groups of employees. This type of

JOURNAL OF HUMAN RESOURCES IN HOSPITALITY & TOURISM 15

program is used, for example, by the Hyatt Hotel Group to train and support those identified as future managers (Hyatt Hotel Group, 2012). The Marriott Group has a youth employment scheme which combines on-the-job and classroom training (Marriott Group, 2007). If resources are limited for HRM, training will have the greatest influence on organizational commitment, and will also ensure that cus- tomer service remains effective. It would, therefore, be better to put more money into focused and specific staff training, especially combined or on-the-job training, rather than into pay increases.

At the same time, the importance of communication to organizational com- mitment suggests that it is also vital for managers to ensure that staff under- stand these trade-offs. If choices must be made between areas for investment in HRM, managers should ensure that staff understand why, and are aware that the business is making an investment in them. This may be a part of for- mal training sessions, but should also be incorporated into staff communica- tions more generally.

Another key finding was the importance of appropriate delegation, that is, giv- ing subordinates appropriate responsibilities. Delegation is widely acknowledged as an essential element to foster mutual trust, respect, and loyalty between manag- ers and subordinates, as it allows staff to use their training and develop their skills. This, in turn, helps them to feel valued by the organization, boosting organiza- tional commitment. Delegation was part of the communication construct in this study, which may explain why communication was so strongly associated with all forms of commitment.

It is generally accepted that it is important in delegating that all those involved understand the boundaries. In practical terms, this might mean, for example, that HR managers in hotel chains should develop guidelines for empowerment and del- egation, to provide a common framework for all employees. For example, the Ritz-Carlton hotel chain allows every employee to commit up to $2,000 of the hotel’s resources without upward referral to solve a customer’s immediate problem (Lampton, 2003). The framework of guidelines might also include details of how delegation should be monitored and managed, which may require training for managers, as well as other employees.

Limitations

This study offers information about HRM practices that influence employee com- mitment, but it does have several limitations, primarily its generalizability. First, the sample was from a relatively limited geographical area, because data were col- lected from just two cities. The results may not reflect hotel employees more gener- ally, because only those from four- and five-star hotels were sampled. Future studies could build on this current work by using wider samples within the hotel industry to include greater geographical diversity and a wider range of types of hotel.

16 M. A. NASSAR

Normative commitment was not used in the analyses because it has been found to be highly correlated with affective commitment (Wang et al., 2010). However, future investigations may benefit from analyzing variation in normative commit- ment across hotel market segments and geographically diverse markets.

The study analyzed only staff who had been in their current posts for more than 2 years. The results might have been different if newly recruited staff had also been included since tenure has been shown to be important to organizational commitment (Richard & Johnson, 2001). For example, recruitment practices might have shown as more important. Further work would be necessary to establish whether staff tenure plays any part in which factors are important to organizational commitment.

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Appendix

Descriptive statistics of responses and outer model loading Mean SD Loading Model 1

Loading Model 2

Hiring Practices Hiring decisions here are influenced by: A person’s ability to perform the requirements of the job. 3.67 0.98 0.899 0.979 Having the right connections (e.g., family, friends, political). 3.60 0.96 0.967 0.977 Proven work experience in a similar job. 3.69 1.11 0.812 0.921 A person’s potential to do a good job, even if the person is not that

good when he or she first starts. 3.28 1.27 0.736 0.808

An employment test in which the person needs to demonstrate his or her skills.

3.29 1.01 0.577 0.523

A personal interview. 3.61 0.95 0.962 0.974 A person’s ability to get along well with others already working here. 3.26 1.04 0.573 0.518 The organization’s belief that the person will stay with the company

(e.g., for 5 years and longer). 3.61 0.94 0.968 0.979

How well the person will fit in with the organizational values and ways of doing things.

3.59 0.92 0.903 0.896

Future co-workers opinion about whether the person should be hired. 3.61 0.94 0.968 0.737 Training and Development The purpose of training and development is to: Provide a reward to employees. 3.25 1.30 0.867 0.910 Improve employee’s job abilities. 3.28 1.07 0.862 0.906 Remedy employees past poor performances. 3.18 1.11 0.697 0.615 Prepare employees for future job assignments. 3.57 0.96 0.570 0.442 Build teamwork within the organization. 3.26 1.29 0.722 0.751 Improve employee’s interpersonal abilities (e.g., how well they relate

to others). 3.29 1.05 0.867 0.910

Provide substantial training when employees first start working in the organization.

3.19 1.10 0.696 0.616

Help employees understand the business (e.g., knowledge of competitors, new technology).

3.55 0.96 0.564 0.435

Provide employees with skills needed to do a number of different jobs, not just one particular job.

3.27 1.28 0.723 0.753

Teach employees about the organization’s values and ways of doing things.

3.26 1.28 0.866 0.910

Performance Appraisals Possible purposes of performance appraisals include to: Determine appropriate remuneration. 3.28 1.06 0.672 0.765 Document employee’s performance. 3.18 1.09 0.678 0.560 Plan development activities for employees (e.g., training, new duties). 3.55 0.96 0.712 0.732 Support salary administration. 3.40 1.03 0.761 0.739 Recognize employees for things done well. 3.40 1.23 0.777 0.680 Lay out specific ways in which employees can improve performance. 3.39 1.01 0.600 0.548 Discuss employee’s views. 3.42 1.32 0.508 0.389 Evaluate employee’s goals achievements. 3.87 1.11 0.621 0.584 Identify employee’s strengths and weaknesses. 4.01 0.89 0.648 0.641 Allow employees to express feelings. 3.95 0.93 0.655 0.770 Determine employee’s potential for promotion. 3.67 0.99 0.734 0.762 Remuneration Practices How accurately do the following statements describe your

organization’s remuneration practices? Remuneration incentives like bonuses or profit sharing are an

important part of the compensation strategy in our organization. 3.85 1.06 0.672 0.677

The benefits are the important part of the total remuneration package. 3.46 1.13 0.858 0.846 In this organization, a portion of an employee’s earnings is related to

group or organizational performance goals being achieved. 3.35 1.11 0.838 0.831

Our remuneration policies recognize that long-term results are more important than short-term ones.

3.46 1.11 0.810 0.802

An employee’s seniority does enter remuneration decisions. 3.35 1.05 0.821 0.825 Remuneration incentives are designed to provide a significant amount

of an employee’s total earnings in our organization. 3.54 0.91 0.785 0.775

(Continued on next page )

20 M. A. NASSAR

Descriptive statistics of responses and outer model loading Mean SD Loading Model 1

Loading Model 2

The employee benefit package is very generous compared to what it could be.

3.54 0.96 0.715 0.723

The remuneration system in our organization has a futuristic orientation. It focuses employees’ attention on the long-term (2 or more years).

3.68 0.92 0.803 0.811

In our organization, pay rises are determined mainly by an employee’s job performance. There is a large spread between low performers and high performers in a given job.

3.58 0.90 0.821 0.829

Communication How accurately do the following statements describe your

organization’s communication practices? Informal communication works better here than formal

communication. 3.47 1.10 0.820 0.708

My immediate supervisor appreciates my work. 3.67 1.04 0.893 0.865 My immediate supervisor shows confidence in me. 3.51 0.98 0.767 0.745 Too many people need to be consulted before you can do anything

here. 3.47 1.17 0.891 0.868

My immediate supervisor often asks for my opinions or feedback. 3.63 1.03 0.871 0.869 My immediate supervisor often gives information, suggestions or

feedback. 3.43 1.02 0.632 0.619

Objectives are clearly communicated and understood. 3.77 0.99 0.784 0.779 I am allowed to make some decisions that are usually made at higher

levels. 3.71 1.08 0.818 0.850

Good cross-departmental communication exists here. 3.18 1.19 0.061 0.788 Participative management exists here. 3.46 0.97 0.645 0.036#

Affective Commitment I would be very happy to spend the rest of my career with this

organization. 3.53 0.90 0.753 —

I enjoy discussing my organization with people outside it. 3.72 0.98 0.765 — I really feel as if this organization’s problems are my own. 3.24 0.92 0.808 — I think that I could easily become as attached to another organization

as I am to this one.y 2.99 0.83 0.731 —

I do not feel like ‘part of the family’ at my organization.y 3.42 0.84 0.685 — I do not feel ‘emotionally attached’ to this organization.y 3.33 0.86 0.012# — This organization has a great deal of personal meaning for me. 3.13 0.80 0.060# — I do not feel a ‘strong’ sense of belonging to my organization.y 2.95 0.84 * — Continuance Commitment I am not afraid of what might happen if I quit my job without having

another one lined up.y 3.17 0.88 — 0.862

It would be very hard for me to leave my organization right now, even if I wanted to.

3.44 0.97 — 0.774

Too much in my life would be disrupted if I decided to leave my organization now.

3.16 0.92 — 0.226

It wouldn’t be too costly for me to leave my organization now. 3.21 0.88 — 0.423 Right now, staying with my organization is a matter of necessity as

much as desire. 3.33 0.92 — 0.154

I feel that I have very few options to consider leaving this organization.

3.26 0.91 — 0.412

One of the few serious consequences of leaving this organization would be the scarcity of available alternatives.

3.19 0.92 — 0.242

One of the major reasons I continue to work for this organization is that leaving would require considerable personal sacrifice— another organization may not match the overall benefits I have here.

3.20 0.86 — 0.326

Note. N D 257; Model 1 predicted affective commitment from HRM variables; Model 2 predicted continuance commit- ment from HRM variables;

�Excluded from Model 1 due to low internal consistency. #t < 1.00, p > 0.05; all other p values < 0.05. yReverse coded.

JOURNAL OF HUMAN RESOURCES IN HOSPITALITY & TOURISM 21