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This article is titled as “The impact of hotel management contracting on IHRM practices-Understanding the bricks and brains split” authored by Judie Gannon, Angela Roper and Liz Doherty in year 2009. It was published in International Journal of Contemporary Hospitality Management Vol. 22 No. 5.
Research question of this article is to identify and evaluate the market entry modes of international hotels in a market by using management contracting methods and its impact on the IHRM practices of such hotels.
These market entry modes are low risk modes and they do not involve investment in heavy assets like recruiting and hiring a large work force. Many international hotel chains adopted this method because it enables them to rapidly enter a market and expand. This research study has both primary and secondary research approaches involved in it and sample population was senior HR executives of 8 such international hotel chain companies. Method for data collection was semi structured interview and literature review for secondary data. Results of this research study demonstrated that management contracts as “asset light” options for international market entry not only provide valuable equity and strategic opportunities but also limit IHCs’ chances of developing and sustaining human resource competitive advantage. Only where companies leverage their specific market entry expertise and develop mutually supportive relationships with their property-owning partners can the challenges of managing human resources in these complex and diversely owned arrangements be surmounted. On critical evaluation it is observed that entire focus of this research paper is tilted towards the perspective of HR executives and top management towards light asset entry mode in market. However a balanced research paper should have perspectives from both sides of a market entry approach. Further researches can be done which will include perspectives of HR managers, employees who are direct and indirectly impacted by these decisions and contracting agencies which are involved in such transactions.
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