MSc_ Mate_Torok _2016-June

I
Edinburgh Napier University
Master of Science
In
Hospitality and Tourism Management
By
Máté Zoltán Török
June, 2016
HIGH PERFORMANCE WORK PRACTICES
AND THEIR OUTCOME IN THE LUXURY
HOTEL INDUSTRY, THE CASE OF THE
RITZ-CARLTON BAL-HARBOUR, MIAMI

I
HIGH PERFORMANCE WORK PRACTICES
AND THEIR OUTCOME IN THE LUXURY
HOTEL INDUSTRY, THE CASE OF THE
RITZ-CARLTON BAL-HARBOUR, MIAMI
by
Máté Zoltán Török
Matriculation Number: 40185527
June, 2016
RESERCH PAPER SUBMITTED IN PARTIAL FULFILMENT FOR
THE DEGREE OF MSc (Hons.) HOSPITALITY AND TOURISM
MANAGEMENT,
UNIVERSITY OF ULSTER

II
Declaration
I agree to work within Edinburgh Napier University’s Academic Conduct
Regulations1 which require that any work that I submit is entirely my own2.
The regulations require me to use appropriate citations and references in
order to acknowledge where I have used any materials from any sources. I
understand the new Extenuating Circumstances Regulations and I am
declaring myself fit to submit this coursework/assessment/exam.
I am providing my student Matriculation Number (above) - in place of a
signed declaration – in order to comply with Edinburgh Napier University’s
assessment procedures.
1
These form part of the Student Disciplinary Regulations - A useful website on Academic
Conduct requirements and how you can ensure that you meet them may be accessed
through the Student Portal, via the Plagiarism icon. Please note that breaches of Student
Disciplinary Regulations, such as Plagiarism and Collusion, may be investigated and
penalised.
2
If the assignment brief specifies this is a group assignment, the Matriculation Numbers for
all group members must be included on this coversheet. The work must then be entirely the
work of the group members, who agree collectively to the statement in the declaration.

III
Abstract
The aim of the current study is to understand how a specific bundle of four
high performance work practices (such as training, open leader-employee
communication, empowerment and reward system) needs to be implemented
in order to ensure not only enhanced employee engagement –and
performance but greater organisational profit as well; in the specific case of
The Ritz-Carlton Bal-Harbour, Miami.
The present research draws on various existing academic literature and it
uncovers how the above mentioned performance enhancing practices are
applied in the hotel being analysed. Furthermore, the effectiveness of the
analysed HPWPs is put under the scope too from both the management’s
and the employees’ perspective in order to get more complex and precise
research results.
The constantly changing market and increasing competition in the luxury
hotel industry require companies to continuously seek new ways to attract
guests and to be able to exceed their expectations. Since employees can be
considered the company’s most important assets in establishing and
maintaining a solid position on the market, the investment in their
development and well-being is inevitable. The research findings have shown
that in today’s society the investment in various HPWPs is also expected by
most of the talented and motivated employees who are continuously eager to
embark upon a new stage of their professional development and ready to
outperform when managerial support along with a sound and motivating work
environment is provided.
The conclusion emphasizes the utmost importance of the constant
communication of the overall company goals with the proactive participation
of the management team. This way the excellent service performance of the
employees can be utilized in a way that the organisational goals are attained
and the whole company can increase profit in a long run.
Key words: HPWP, employee engagement, well-being work performance,
profit, training, effective communication, supportive leadership,
empowerment, reward system

IV
Acknowledgement
This dissertation is a partial fulfillment of the requirements for the degree of
Master of Science in Hospitality and Tourism Management of Edinburgh
Napier University. I would like to express my gratitude to every people who
have helped me on the way and made this research come to existance.
First of all, I would like to thank my whole family, my girlfriend and her family
too. They have supported me throughout my whole college education and
stood by me throughout the difficult times, too. I would like to express my
special gratitude to my mother whose knowledge and support helped to
accomplish the present research.
Moreover I would like to thank Mr. Martin Jost whose comments, feedbacks
and guidance helped me on my way to succeed finishing this study.
Finally, I would also like to thank for all the participants of my research who
provided me with all the rich and valuable data throughout the interviews.
Without their help I would never have been able to finalize my research.

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Table of Contents
Declaration ................................................................................................................ II
Abstract..................................................................................................................... III
Acknowledgement...................................................................................................IV
1.1. Background information........................................................................ - 1 -
1.2. Rational ................................................................................................... - 2 -
1.3. Research method outline...................................................................... - 5 -
1.4. Aim and objectives ................................................................................ - 6 -
Chapter 2. Literature review ............................................................................... - 7 -
2.1. Introduction................................................................................................ - 7 -
2.2 Theoretical overlook.................................................................................. - 8 -
2.2.1. Resource based View....................................................................... - 9 -
2.2.2. Job demand-resource model......................................................... - 10 -
2.2.3. Social-exchange theory.................................................................. - 12 -
2.2.4. Leader-member exchange theory ................................................ - 15 -
2.2.5. AMO model ...................................................................................... - 18 -
2.3. Review of existing empirical researches and defining the concept of
HPWPs............................................................................................................. - 19 -
2.3.1. From HPWPs to performance excellence................................ - 20 -
2.3.2. Excellent performance on the organisational level .................... - 21 -
2.3.3. Still existing debate ......................................................................... - 23 -
2.3.4. The research site............................................................................. - 24 -
2.4. Research model...................................................................................... - 25 -
Chapter 3. Methodology.................................................................................... - 27 -
3.1. Aim and objectives ................................................................................. - 27 -
3.2. The approach .......................................................................................... - 28 -
3.3. Sampling, data collection, and data analysis ..................................... - 29 -
3.4. Credibility and confirmability ................................................................. - 32 -
3.5 Dependability and Transferability.......................................................... - 34 -
3.6. Limitations................................................................................................ - 36 -
Chapter 4. Findings............................................................................................ - 37 -
4.1. Training and its effectiveness ............................................................... - 37 -
4.1.1. Company culture ............................................................................. - 37 -
4.1.2. Technical trainings .......................................................................... - 39 -
4.2. Leader-Member exchange (LMX)........................................................ - 40 -
4.2.1. Clarification of the expectations.................................................... - 40 -
4.2.2. Supportive leadership and coaching............................................ - 42 -

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4.2.3. Communication of the company goals......................................... - 43 -
4.3. Empowerment ......................................................................................... - 45 -
4.4. Reward system ....................................................................................... - 47 -
4.5. HPWPs and profit ................................................................................... - 48 -
Chapter 5: Discussion........................................................................................ - 51 -
5.1. Trainings .................................................................................................. - 51 -
5.2. Leader – Member exchange (LMX)..................................................... - 52 -
5.3. Empowerment ......................................................................................... - 53 -
5.4. Reward system ....................................................................................... - 55 -
5.5. Financial outcome .................................................................................. - 57 -
5.6. Summary.................................................................................................. - 58 -
Chapter 6. Conclusion and Recommendation............................................... - 59 -
6.1. Conclusion and recommendation ........................................................ - 59 -
6.2. Recommendations for further researches .......................................... - 64 -
References ............................................................................................................... 65
Appendices............................................................................................................... 70
Appendices 1. Interview scripts......................................................................... 70
Appendix 2. Interview transcribes..................................................................... 86
Respondent 1................................................................................................... 86
Respondent 2................................................................................................... 99
Respondent 3................................................................................................. 112
Respondent 4................................................................................................. 120
Respondent 5................................................................................................. 130
Respondent 6................................................................................................. 139
Respondent 7. (Trial interview) ................................................................... 148
Respondent 8................................................................................................. 158
Respondent 9................................................................................................. 165
Respondent 10. ............................................................................................. 175
Respondent 11. ............................................................................................. 184
Respondent 12. ............................................................................................. 191
Respondent 13. ............................................................................................. 200

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1.1. Background information
Service industry and hospitality industry are considered one of the most
labour-intensive and competitive businesses. Despite the significant
technological development, the biggest value for customers is still added by
the dedicated, well-educated, and trained employees (Agarwal, Rafat,
Sageer, 2012; Yoon & Young, 2013). Since, the long term success and profit
of the labour-intensive industries highly depend on the outstanding
performance of their employees, claimed by Szamosi and Serafini (2015),
service excellence is emphasised as an utmost priority.
As Mei Lu- et.al (2015) mention, to be able to reach the desired, service
orientated demeanour organisations have to implement a distinctive way of
human resource management (HRM) which is able to foster the performance
of the employees.
In today’s complex and continuously changing business environment, the
number of hotel businesses increases in a fast phase. On the one hand, due
to the growing competition hotels have to face an evolving pressure to work
more efficiently by using fewer resources, yet provide unique and excellent
service. On the other hand, it also enables people to make their travelling
decision based on their unique preferences.
This particular nature of competitiveness, the continuously changing
economic environment, the human capital intensiveness and the fast
escalation of guest demand increases the significance of the understanding
of effective performance enhancing HRM practices, called: high performance
work practices (HPWPs) (Kroon et. al, 2013) and their organisational
outcomes (Kroon, Van der Voorde, Timmers, 2012; Lee & Ok, 2014).
Karatepe (2013) postulates that hospitality employees have to face various
challenges during their everyday routine. To be able to overcome these
obstacles and to solve guest problems workers have to take ‘the extra mile’,
feel dedicated and happily absorbed in their work. Vestal (2012), in line with
Karatepe (2013), claims that excellent individual work performance and real
contribution to the overall organisational goals requires a positive work
related state of mind which is characterised by vigour, absorption, a high
level of dedication and loyalty (Karatepe, 2013).

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The above mentioned attributes are shared by the engaged and highly
committed associates of the organisations who are eager to outperform,
deliver the demanded service excellence and create memorable experiences
for the guests (Bedark & Pandita, 2013; Cahill et. all, 2015; Clark, Loxton,
2012; Vestal, 2012). Karatepe and Vatankhah (2014) also argue that the
above positive work outcomes require a work environment where HPWPs
are present.
The existence of HPWPs in HRM is not a new paradigm. Patel and Conklin
(2012), cited by Timiyo (2014), explain the phenomenon as a set of
employee management practices that positively affect the attitude, and
performance of the employees. Aligned with the above mentioned
researchers, Huselid (1995) states that HPWPs are considered the most
effective performance enhancing HRM practices which are capable of
expanding the workers’ knowledge and increasing their work related
technical skills and abilities. In a work environment where HPWPs are
implemented workers are invited to embrace the organisational culture and
values, understand what professional service means and how to deliver it in
order to create guests for life and contribute to organisational success.
1.2. Rational
Although, various researchers claimed that HPWPs are able to positively
influence organisational performance outcomes (Johnson and Brown, 2014;
Karatepe, 2013; Applebaum et. al, 2000; Özralli, 2015; Kroom, Van De
Voorde, Timmers, 2012; Sparsam, Sung, 2005), researches can be found
which argue whether the above mentioned linkage can be indeed determined
(Neumark and Capelli, 1999; Kallenberg, 2006; Wright et al., 2005).
Revealing what exactly and how influences the connection between HPWPs
and the organisational outcomes been a focus of the academic researches
for decades. Emphasising the complexity of these researches, the above
mentioned linkage between the two variables (HPWPs and organisational
economic performance) is often addressed as ‘the holy grail’ or the so called
‘black box’ stage (Ruzic, 2015).

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While some of the researches have shed light on the intermediate part
between the two end point of the above linkage, and discovered that HPWPs
could majorly increase the employees’ job performance (Karatepe, 2013;
Sparham and Sung, Applebaum et. al, 2000; Özralli, 2015; Li, Sanders and
Frenkel, 2012), others (Neumark and Capelli, 1999; Liang et. al 2012) argue
that the application of various HPWPs is indeed able to change the
employees work performance in a certain manner that their contribution to
the organisational goals and economic performance becomes significant.
This study provides a contribution to the existing empirical researches
related to HRM literature with specific attention to the HPWPs. In the current
research, the author concentrates on the enhancing effect of a bundle of four
HPWPs on the performance of the employees. Moreover, throughout the
analyzation of rich qualitative data, he attempts to uncover how greater
organisational profit can be reached through the enhanced individual work
performance. These practices are: training, open leader-employee
communication, empowerment and reward system.
Although, within the existing literature researches can be found which aims
to provide valuable information about the HPWP- employee performance -
organisational profit linkage, only a limited amount of researches could be
found that have been conducted in a tourism setting (Karatepe, Vatankhah,
2014); and even smaller amount in the luxury hotel industry (Karatepe,
2013). This recognisable lack of theoretical researches on the HPWPs and
their outcomes requires the development of such theories which are
applicable for hotel businesses and which aim to reveal how HPWPs through
increased employee performance could help to ensure the long term survival
of the business (Ruzic, 2015).
By observing the existing academic literature, only a very limited amount of
qualitative researches has been identified which were conducted on the field
of HPWPs (Garman et al. 2014; McAlearney et al. 2013). Moreover, a lack of
empirical researches has been found, especially within the luxury hotel
industry, where the author was unable to find any. Based on the above
mentioned research gaps the author contemplates to add a fresh perspective
to the existing empirical data by providing rich qualitative information on the
observed HPWPs and on their outcomes within the luxury hotel industry.

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In order to achieve that, the present examination is focused on one of the
world’s most recognised luxury brands, The Ritz-Carlton. In the case of the
Ritz-Carlton brand the implementation of HPWPs are regulated and
delegated from the corporate headquarter. It is mandatory for each members
of the brand to implement and merge the observed practices into the hotel’s
philosophy and organisational culture. The Ritz – Carlton’s key success
factors and its organisational culture are built upon the effective application of
different HPWPs which are considered in the present research.
Thus, through the examination of certain HPWPs implemented by the Ritz-
Carlton Bal-Harbour, Miami, valuable information could be provide for other
customer service professionals especially in the hospitality and more
specifically in the luxury hotel industry. Moreover, the research results and
conclusions could give additional guidance for companies which freshly
joining the hospitality market and sought to understand how better profit
could be achieved by applying effective performance enhancing HRM
practices.
Finally, the present study by being focused on Miami, Florida in the United
States of America, attempts to deliver additional results to past researches
within the hospitality industry in another period of time and between other
geographical, demographical, socio-cultural and political settings.

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1.3. Research method outline
In order to gain the necessary information for the current research,
qualitative research method is used. This method allows the author to better
understand the researched phenomenon and to create new theories in the
case of the hotel being analysed (Cresswel, 2003; cited by Research
Rundown World press, 2014). According to Bailey, Hennik and Hutter (2011),
qualitative research methods enable the author to gather valuable, deep and
personal information from the study participants, identify issues from their
point of view and reveal their perception on the application of the researched
topic. Bailey, Hennik and Hutter (2011) claim, that qualitative researches are
useful to gain in-depth data on the participants’ beliefs, views, experiences
and behaviours. Moreover, this kind of research is also widely used, in order
to understand social interactions among people or to reveal and explain
complex business processes. Therefore, based on the above described
nature of the qualitative research method it can be stated that it is suitable for
the present study.
On the one hand, the current study is focusing on the perception and
feelings of employees regarding the researched four observed HPWPs and
their individual outomes (enhanced engagement, well-being and work
performance). On the other hand, through qualitative semi-structured
management interviews the author attempts to uncover how the high quality
employee performance could be leveraged in order to can increase
organisational profit based on the case of the Ritz-Carlton Bal-Harbour,
Miami.
In order to successfully gather the necessary qualitative data, twelve semi-
structured interviews have been conducted. First of all, the management of
the hotel have been interviewed, which has been followed by the interviews
of the line employees. Six interviews were conducted with the line hotel
employees and six leaders have been questioned.
As a sampling method for the current study, quota sampling has been
chosen, which, according to Explorable (2015) forms a part of the non-
probability sampling methods. Employees had to be selected from different

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age groups, marital status, educational background and department they
work at, in order to support the study in reaching its goal. Six member of the
hotel’s management has been questioned. Human resources, food and
beverage, rooms division and sales department were all represented in the
study by various managers or directors of the departments. As far as the line
employees concerned, numerous departments from the hotel were
represented (food and beverage, front office, guest relations, housekeeping)
as well during the research. By using quota sampling the author had the
chance to purposefully select the necessary number of participants who has
the required traits and characteristics to represent the whole ‘population’ of
the hotel the best and help to gain a valid overview on this complex research
topic (Laerd, 2012).
1.4. Aim and objectives
The aim of the present research is to understand how the observed bundle
of four high performance work practices (such as training, open leader-
employee communication, empowerment and reward system) needs to be
implemented in order to ensure not only enhanced employee engagement –
and performance but greater organisational profitability as well; in the specific
case of The Ritz-Carlton Bal-Harbour, Miami.
In order, to be able to achieve that goal, the author has set the following
objectives:
 Critically analyse the above bundle of HPWPs in order to be able to
conclude whether a strong connection between their implementation and an
elevated level of employee engagement as well-as well-being indeed exists.
 Determine, whether high level of employee engagement has a positive
motivating effect on excellent individual work performance.
 Find out, how the above superior performance of the individuals can
be leveraged in way that higher organisational profit is achieved in The Ritz –
Carlton Bal-Harbour, Miami.

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Chapter 2. Literature review
2.1. Introduction
In todays’ economic environment where the globalisation highly enhanced
the competition among businesses within the service industry, hotels and
especially their employees have to exceed the guests’ expectation and fulfil
even their unexpressed wishes and needs in order to stay on the market and
overcome their competitors (Li, Sanders and Frenkel, 2012).
This statement can be aligned with Grant’s (1991) resource-based view
framework (RBV). Grant (1991) cited by Akio (2005) postulates that individual
employees, with their specific knowledge, skills and abilities are crucial
resources of the companies especially in the luxury hotel industry. Akio
(2005) also states that the non-imitable human resources are key
determinants of the companies’ outstanding performance, therefore their
correct and efficient management must be held as a priority and their
engagement must be fostered.
HPWPs are effective tools to manage the human workforce of the
organisations and to build employee engagement. According to Timiyo
(2014) HPWPs received significant attention throughout the past decades.
Although some scholars refer the concept differently, such as Purcell (2006)
as high commitment management (HCM), Delaney and Huselid (1996) as
progressive HRM practices (PHRMPs) or Kallenberg et al. (2006) as high
performance work organisations (HPWOs), the objectives and core principles
behind these terminologies are the same.
Therefore, given the engagement –and commitment building as well as
performance enhancing nature of the HPWPs, the present study will build
upon the assumption that by implementing a bundle of four HPWPs, (through
the help of strong employee engagement), greater individual work
performance could be achieved; and by correctly leveraging that, greater
organisational profit can be reached in the examined hotel.

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In the next part of the current study the author will firstly, focus on
introducing important theories and models which will form a strong theoretical
background for the present paper. Therefore, firstly the resource based view
theory (RBV) and the Job Demand – Resource model (JD-R) will be
introduced, which will be followed by the Social Exchange Theory (SET) and
the Leader-Member Exchange theory (LMX). Finally, the Ability-Motivation-
Opportunity model (AMO) will be explained.
While the RBV will shed light on the specific importance of the human
labour force in today’s business environment, the JD-R model will provide a
great overview of the specific job characteristics which can strongly affect the
well-being and engagement of the workers. Secondly, the SET will be
introduced to provide a better understanding, why employee engagement
can be achieved by facilitating different HPWPs. Furthermore, the leader-
member exchange theory (LMX) will be unveiled to specify the general view
of the SET in a hotel business setting. Furthermore, the ability-motivation-
opportunity (AMO) model will be explained alongside with the service-profit
chain which together will uncover the positive effects of employee
engagement on the organisational performance and financial return.
Finally, after having thoroughly studied various concepts and theories which
attempt to explain how the facilitation of HPWPs can lead to organisational
profit, various existing empirical researches will be examined.
2.2 Theoretical overlook
In the next part of the current paper the author aims to provide a broader
theoretical overlook of the HPWPs and to introduce other linking theories in
order to reveal the HPWPs’ possible effects on employee engagement -and
and work performance as well as on the overall organisational profit. First of
all, the Resource Based View (RBV) and the Job Demand-Resource model
(JD-R) will be brought out.

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2.2.1. Resource based View
Although, the history of this organisational resource theory goes back
decades its importance in today’s global and demanding market cannot be
questioned (Bučiūnien & Kazlauskaité, 2008). Companies nowadays have to
withstand strong competition and overcome various obstacles such as
increasing organisational capabilities, continuously renewing, implementing
modern technology and increasing profit in order to be able respond to the
changes of a strongly volatile market, satisfy the constantly evolving needs of
the customers and to reach competitive advantage. (Bučiūnien &
Kazlauskaité, 2008).
The Resource-based View (RBV) investigates how competitive advantage
can be can be achieved by using various resources which stand at the
organisations’ disposal (Almarri & Gardiner, 2014). These resources from a
broad perspective can be considered as any assets of a company which can
be utilized to attain organisational goals and to ensure high performance on
the company’s critical success factors (Barrutia & Echebarria, 2015).
According to Barney (1991) cited by Ruzic (2015) companies can gain and
maintain competitive advantages over their rivals, by applying their most
valuable, key resources. These resources are peculiar for each organisation.
They cannot be copied or imitated by other companies and they are
considered as core sources of business success (Ruzic, 2015). Barrutia and
Echebarria (2015), claim that the key role of the companies’ leaders is to
identify these resources and handle them as sheer priorities of the firm. In
addition, they also postulate that the long-term applicability of these unique
assets, throughout continuous investment, has to be secured.
But why the RBV is used as one of the frameworks of the current research?
Which assets of the companies can be considered as key elements for the
achievement of sustainable competitive advantage? The integration of the
RBV into the realm of strategical studies legitimized the Human Resource
literature’s allegation which identifies the educated, well-trained and
motivated employees as particularly important source of competitive
advantage in every organisation (Wright et al., 2001). Bučiūnien and
Kazlauskaité (2008) in their study attempts to explain what really makes

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employees a true source of competitive advantage. They postulate that
individuals with high cognitive ability are able to effectively participate in
socially complex human interactions. Moreover due to the above listed
potentials their capability to be transferred between technologies or markets
is undeniable. The above statements are further reinforced by Wright et al.
(2011) who claim that human resources, referred as “human capital pool”, of
the companies, due to their knowledge, skills and abilities, have the potential
to contribute to achieve the organisational goals. Ruzic (2015) also adds that
throughout their outstanding performance sustainable competitive advantage
can be reached and a strong position on the market can be secured (Ruzic,
2015).
In spite of the ongoing argument whether human resources or their
management provides more value to the organisations and helps them to
maintain long term success (Wright et al. 1994; Lado & Wilson, 1994) the
author will accept the proposal of Dunford, Snell and Wright (2001) and
Boxall and Purcell (2003) who state that human resources and their
management brings the greates result together. Althaugh, individuals can be
viewed as key sources of competitive value without proper management and
continous development of their knowledge, skills and abilities they sustained
competitive advantage cannot be reached. Therefore in the following part of
the current paper the author will focus on different theories frameworks and
models which help to understand how the employees can be successfull
managed and how their engagement and performance can be fostered.
2.2.2. Job demand-resource model
The next theory has been chosen to be introduced in the current paper is
the Job Demand-Resources (JD-R) model. As it has been already discussed
in the present paper, competitive advantage and financial growth can be
gained through the utilization of engaged, well-educated, knowledgeable and
high performing human labour (Ruzic, 2015). The JD-R model, introduced by
Bakker’s and Demerouti (2006) provides a broad overlook of how different
job characteristics can profoundly affect the above mentioned characteristics
of the employees. Therefore, its more detailed analysis is inevitable. Bakker’s

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and Demerouti’s (2006) model not only can be taken as a great starting point
for various other theories which will be discussed in the present study, but
due to its framework nature it can be implemented in numerous occupations,
thus also in the hospitality business.
The JD-R model is not the first which puts different job characteristics under
the scope. Hertzberg’s (1968) Two-Factor model or the Effort-Reward
Imbalance model of Siegrist (1996), are good examples of other scholar’s
theories which examined the effects of a limited amount of job characteristics
on employees. However, the JD-R model in order to overcome some of the
limitations of these previous theories allows examining a wide variety of job
characteristics and their effects on individuals (Van den Broeck, 2012).
According to Demeatouri et al. (2001) job-demands refer to different
psychological, physical, organisational and social aspects of the job which
demand continuous effort from the employees, thus they are linked to
different emotional and cognitive costs. As they claimed, unfavourable work
environment, high work pressure or the overload of emotionally exacting
guest interactions can possible lead to exhaustion, burnout or impaired
health.
Based on the above statements it is vital that employees are provided the
necessary support in order to successfully recoup from the negative effects
of the job demands. This support by Bakker and Demerouti (2006) is referred
as job resources. Job resources are different physical, psychological, social,
or organisational aspects of the job which not only able to provide functional
help in achieving organisational goals but can effectively foster personal
growth and decrease the various costs associated with the job demands.
Job demands and resources can be found throughout every level (task,
social relations and organisational level) of the organisation. For decades
workload and autonomy were in the focus of researches. Therefore, today
they are considered as general characteristics which can be found across
jobs. Besides the above mentioned classical job demand -and resource the
JD-R model aims to include other job characteristics in the research context
which became also general in contemporary jobs. Work-home interference
and emotional demand alongside with the home demands –and resources
are also taken into account. Therefore, it can be stated that the JD-R model

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offers a solution for the observation of the broad context of the workers’ job
both within and outside of the organisation. Moreover, it also creates a bridge
which connects various job demands –and resources to different outcomes
through the concept of burnout and employee engagement (Van den Broeck,
2012).
It has been mentioned earlier in the current paper that in the hospitality
industry the expectations towards the performance of the employees are not
less than perfect, moreover, they often have to work long hours under high
pressure. Accordingly, the risk of negative job demands is severe. In order to
reduce the negative impacts of these job demands employees have to be
both extrinsically and intrinsically motivated. Workers have to be granted the
required resources on the organisational level (competitive monetary
compensation, career opportunities), on the interpersonal level (managerial
support), on the work level (task clarity and involvement in the decision
making process), and on the task level (authority, empowerment, and
feedback) too (Bakker and Demeatouri, 2006). That way their engagement,
commitment and well-being can be fostered.
In order to gain a better insight how these negative effects can be avoided
different theories and models will be introduced in the following sections of
the current paper. Since hospitality employees undergo several interpersonal
interactions daily (with the guests, managers and their peers) a deeper
analysis of the nature of these social interactions will be undertaken.
2.2.3. Social-exchange theory
As Lee et al. (2014) claim, the SET aims to uncover the nature of the
relationships among individuals. However, according to Emmerson (1976),
SET should rather be considered as a framework than simply as a theory.
Since SET is strongly focused on the exchange of valued resources between
participants, this theory is well applicable in the hospitality industry.
Moreover, it provides important contribution to the HPWPs -and engagement
literature. Based on the above facts, it can be stated that the contribution of

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the SET to the current research is unquestionable and its introduction and
analysis is required.
Set provides a theoretical explanation why the discussed HPWPs could
positively influence the engagement and well-being of the employees. It has
been stated by Blau (1964), cited by Lee et al. (2014) that during any social
exchange, whether physical-material goods are being transferred or not,
various feelings, such as satisfaction, anger, happiness and other immaterial
elements can be exchanged between the parties. Blau (1964) also claims
that the different levels of satisfaction, dependence, independence and
interdependence can significantly influence the strength of the relationship
between the participants. The above statements is further reinforced by
Cropanzo and Mitchell (2005), who postulate that interdependent
transactions have the ability to build strong, high-quality relationship among
individuals.
Just as its name suggests, the SET originates from sociology and social
psychology, however it shows significant similarities with economic and
business theories as well, such as the rational choice or the expected- and
maximum utility (Lee et al., 2014). In spite of the fact that there are distinctive
views regarding the subtleties of SET, the majority of the academics agree
on the fact that individuals throughout their decision making process undergo
a particular cost-benefits evaluation. They tend to weight their alternatives
and the possible outcomes of their decisions in order to be able to make a
better and more beneficial one. Therefore, it can be concluded that a valued
resource will only be transferred to the other party when another similarly
valued resource is offered in-exchange (Emmerson, 1976). This mutually
beneficial exchange is often addressed as reciprocity.
Although, different social-exchange rules have been discovered, reciprocity
especially in the business world is an often cited norm which governs the
behaviour of the exchanging parties. However, it is important to take into
account that reciprocity can only be applied when interdependence between
the participants exists (Coulson et al. 2014). Most basic human interactions
are based on mutual reciprocation, since individuals tend to respond in a
manner similar to the manner acted upon them. Essentially, the theory of

- 14 -
reciprocation, states that while positive actions lead to positive responses,
negative actions trigger negative counter actions (Lee et al., 2014).
When an exchange takes place between two parties there are always costs
and benefits between the participating individuals, which can also be
categorised as gains and losses. On the one hand, costs are considered as
the negative aftereffects of the exchange and are manifested in the form of
valuable resources such as, time, energy or money. On the other hand,
benefits or rewards are the positive outcomes of the transactions and usually
appear in the form of status, money, love, goods or services (Coulson et al.
2014).
In the present research context the organisational outcomes of a bundle of
four HPWPs are observed. SET is closely related to the literature HPWPs.
When a high-quality relationship is maintained between employees and
managers, moreover, when they are communicated the companies’ goals
and empowered to strive towards them in their own way, workers tend to
invest more effort and time in their jobs.
SET, just like numerous other social, behavioural theories has its limitations
and critics. In spite of the arguments and theoretical disagreement regardin
this theory, the importance of the SET in the organisational and behavioural
science is non-questionable. As Cropanzano and Mitchell (2005) claim, SET
predicts a positive relationship between the parties, which is strengthened
over time, by sharing values, building trust and a constantly maintaining a
high level of satisfaction. When this balance between the participants exists,
there is a possibility for a high-quality relationship.
This high-quality relationship between leaders and line employees in the
hotel industry is considered as an utmost priority. It has been stated when a
high-quality relationship between managers and subordinates exists, which is
characterised by mutual respect and emotional support, employee
engagement can be fostered. Therefore, the next important theory which will
be examined in the current paper Leader-member exchange (LMX) theory.
LMX is rooted in SET and explains how a greater level of employee
engagement can be achieved through a high quality relationship between the
management and line employees. This theory is well applicable in a
hospitality setting and therefore its more in depth observation is required.

- 15 -
2.2.4. Leader-member exchange theory
As it has been already discussed in the present research, contemporary
businesses and their employees in the hotel industry have to face various
challenges on a daily basis. High guest expectations towards immaculate
service require enthusiasm, sensitivity, flexibility and patience among many
other skills from the hotel workers. In order to keep employees motivated,
committed and make them able to provide the desired high quality
performance they have to be provided the necessary resources and have to
be supported (Li, Sanders and Frenkel, 2012; Bilgin, Demirerb, 2012; Ruzic,
2015; Bakker & Demerouti’s, 2006).
The LMX theory claims that managers and supervisors have an important
role in shaping the performance and attitudes of the workers. Linden et al.
(1997) found that through their everyday work routine, managers and their
employees undergo various social exchanges and these exchanges highly
affect the attitude and work performance of the workers.
According to Scandura and Lancau (1996) while a high quality relationship
between leaders and subordinates leads to organisational commitment,
loyalty and total engagement, a low quality relationship could cause higher
turnover and dissatisfaction. Truckenbrodt (2000) claims that low quality LMX
is rooted in the lack of interaction between leaders and members and it fails
to motivate employees to contribute to the organisational goals beyond the
demands of their job description. However, when leaders succeed to
maintain a positive relationship with their employees and support them
emotionally and socially too, the general sense of well-being and the
engagement of the workers will be enhanced; moreover, a high level of
mutual respect can be noted (Li, Sander and Frenkel, 2012).
In the luxury hotel industry support from the leadership tends to be
delivered in different forms. Empowerment, coaching, performance
appraisals or individual face to face feedbacks are effective managerial tools,
which are able to increase the knowledge and professional skills of the
employees. However, supporting leaders often go beyond the application of
the above mentioned tools and tends to provide emotional – and social
support for all their subordinates (Li, Sander and Frenkel, 2012). When the

- 16 -
above discussed resources are given for the employees, their positive
perception towards the leadership can be increased. Thus, based on the
rules of the already mentioned reciprocation they tend repay the support by
becoming more engaged and committed with the company and going beyond
their described responsibilities (Altinoz, Cakiroglu, Cop, 2012).
Wu and Chen (2015) in their research draw attention to another important
factor which can foster high quality LMX, employee engagement and work
excellence. They state, to understand how the perception of the employees
vary in a degree they perceive the above discussed managerial support and
resources; and how it can affect their engagement and performance is vital.
In their research they emphasise the importance of the fulfilment of
employees’ psychological contract, with specific attention to the hotel
industry. As they describe the phenomenon, based on Rousseau’s definition
(1995), employees’ psychological contract can be explained as a set of
beliefs, which is shaped by the organisation and lays down the terms of an
exchange agreement between workers and their employers. This special
contract represents an agreement between the firm and its employees which
includes their mutual obligations in their work relationship Wu and Chen
(2015).
Therefore, it can be stated that if both parties agree, the fulfilment of the
psychological contract can be successfully fulfilled. When employees are
able to perceive the expected supervisory support, adequate payment,
opportunity for development, empowerment, future promotion or job security,
they are more likely willing to outperform, become engaged and strive for a
high quality LMX and contribute to the organisational goals (Wu and Chen
2015).
High quality leader-member relationship and empowerment form an
important part of the current paper’s focus and they play a major role in the
building employee engagement, aid greater work performance and foster
greater organisational profit. However, it is a difficult and time-consuming
task to build high quality relationship between leaders and line members
where effective open communication and mutual support exist. The
Leadership making model (LMM) describes the building of high quality LMX
as a life cycle.

- 17 -
According to LMM at the beginning of their encounter, leaders and
employees come together as strangers. At this moment their relationship and
exchanges are formal and contractual. None of the parties strive to perform
better, provide more support or show more constructive behaviour than it is
prescribed in their job description (Graen and Uhl Bien, 1995). Secondly, in
order to elevate the relationship to the second, so called acquaintance stage,
an offer for an enhanced working relationship has to be made by the
managers and it has to be accepted by the employees. In that stage of the
relationship maturity, the parties tend to overstep the barriers appointed by
their independent organisational roles. Therefore, information is shared more
effectively and a greater level of support is noted between the leaders and
subordinates both on work -and personal level (Graen and Uhl Bien, 1995).
Finally, through the continuous equitable return of favours and the
maintenance of mutual respect, the relationship between the parties enters to
the final stage, which is classified as mature partnership exchange. At this
final point the exchanges between the participants are exceedingly
developed which may form a strong base for a long term reciprocity, high
performance and future organisational success (Graen and Uhl Bien, 1995).
However, As Li, Sander and Frankel (2012) claim, high level LMX
accompanied with employee reciprocity may not evidently beneficial for the
whole organisation. Reciprocity tends to be rather interpersonal than
organisational. They also postulate that reciprocation not necessarily
comprehend the obligation towards the organisation. Therefore, a high
quality LMX not always succeed to influence the employees’ behaviour and
performance in a manner that it can contribute to the higher goals and to be
valued by the organisation. In order to fill the above identified research gap
the examination of further models, theories and existing empirical researches
is required.
Since the main goal of this research is to find out how different HPWPs can
increase organisational profit, through the positive effects of employee
engagement, the review of such models which aims to uncover and explain
the nature of this linkage is essential. Therefore, firstly the ability-motivation-
opportunity (AMO) model will be put under the scope which later will be
followed by the examination of various existing empirical researches.

- 18 -
2.2.5. AMO model
According to Kroon, Van De Voorde and Timmers (2012) the three letters
(AMO) stands for three elements or practices, which together construct
sustainable high level employee performance and aids organisational profit.
In the acronym of AMO, A, refers to workers individuall ability, that they are
able to deliver high quality performance. Since abilities directly correlate with
the employees’ performance their improvement must be taken into account,
through the implementation of different HPWPs. Thus specific recruitment
system and extensive trainings are strongly suggested (Kroon, Van De
Voorde and Timmers, 2012).
Secondly, M, stands for the motivation of the employees, both intrinlsically
and extrinsically. This statement can be alligned with Hertzberg’s (1957) cited
by Stello well-know and widely applied theory. Based on his, two factors
motivational theory, there are two distinctive factors which affect employees,
satisfaction, engagement and therefore, their performance. These are the
motivation – and hygiene factors. According to his results, hygiene
(extrensic), factors, such as financial rewards, raises or other factors which
aim to establish a more favourable work environment, are fail to provide real
motivation for the workers. Although, they are effective tools to prevent
arising job-dissatisfaction, they are unable to contribute to employee
satisfaction or engagement. On the other hand, motivation factors, such as
promotion, involvement and empowerment can motivate workers intrinsically,
thus are able to elevate the level of their satisfaction and foster engagement
(Yusoff, Kian, Idris, 2013). By applying these motivation factors the employee
engagement level emerges and the obligation of the employees to pay back
the recieved benefits and support for the organisation through eminent
performance, is strengthened.
Finally, the O component of the AMO modell represents the given
opportunity for the workers to perform. This element strongly connected to
the empowerment literature. Empowering leaders, tend share their power
with the subordinates. They involve them in the decision making
process,(involvement, communication) and give higher level of authonomy
(authority, empowerment). Furthermore, more meaningfull jobs alongside

- 19 -
with more responsibilities, are offered. Throughout all the above support,
empowering leaders are able to influence the psychological empowerment of
the workers, therefore trigger a greater level of engagement and positivelly
affect the profit realisation of the business (Özaralli, 2015; Quińones, Van
den Broeck, Hans de Vitte, 2013).
It can be concluded that every single element of the AMO bundle, in
connection with HPWPs, serves a specific goal: (A), high employee
performance, (M), high employee commitment, (O), high employee
empowerment (Kroom, Van De Voorde, Timmers 2012). Therefore, it can be
stated that the correct implementation of the model supports the achieving
greater employee engagement –and work performance. Moreover it supports
the achievement of the organisational goals and contributes to the
companies’ profit.
As Ruzic (2015) postulates higher organisational profit is stimulated by the
loyalty of the customers. In order to make guests in the hotel businesses
satisfied and in a long-term loyal, high performance from the dedicated
employees is expected. Therefore by combining the discussed theories and
models, the assumption can be made that if employee engagement is
reached, through the implementation of an effective bundle of HPWPs, and
the maintenance of a high level LMX, together with HRM contingency, guest
loyalty could be reached and thus higher financial return for the hotel could
be accounted (Ruzic, 2015; McCracken and Watson, 2008).
2.3. Review of existing empirical researches and defining the concept of
HPWPs
As it is already established in the existing literature, human resources are
the vital yet expensive commodities within organisations. Therefore, for all
organisations especially for such labour intensive businesses as hotels the
biggest challenge is to be able to amplify efficiency and to aid creativity, while
keeping costs under control to can produce financial growth for the whole
company and for the shareholders. To be able to understand how effective
HRM practices can positively influence organisation-wide outcomes a vast

- 20 -
body of theoretical research, called Strategic Human Resources
Management (SHRM) has been formed (Combs et al., 2006). The varieties of
performance enhancing HRM practices which are considered by SHMR
researchers are called HPWPs.
2.3.1. From HPWPs to performance excellence
In the following part of the present chapter the author will focus on
introducing previously conducted empirical researches and their findings on
the different outcomes of HPWPs. Firstly the focus will be put on the
examination how HPWPs affect outcomes on the level individuals.
Afterwards, it will be examined, based on the existing research material,
whether the assumed positive outcomes of the examined practices on the
employees’ engagement and individual performance could lead to
organisational success.
HPWPs are found to be associated with performance excellence. It has
been claimed that throughout a proper implementation of these practices
motivates employees to increase their performance. But how is this excellent
performance achieved on the personal -and also on the organisational level?
Why employees tend outperform in an environment where HPWPs are
present. This question has been the focus of various researches. Ramoo,
Abdullah and Piaw (2013), after studying the employees of Malaysian
hospitals concluded that throughout the effective use of HRM practices
stronger organisational commitment can be built Binoy, J. (2012), Innovative
human resources past also found a linkage between innovative human
resource practices and organisational citizenship behaviour (OCB). In his
research an Indian software developing firm has been examined. The
conclusions of this research are important in terms of the present paper. Both
in hospitality and in the software industry business success is highly lays on
the performance of the talented, creative, energetic and well-educated
employees; and in order to ensure their high performance their well-being
and engagement have to be fostered (Barrutia & Echebarria, 2015; Ruzic,
2015; Wright et al., 2001). Besides the above studies another empirical
research which presents a relationship between HPWPs and greater

- 21 -
employee performance was conducted by Kuvaas (2007). Through the
analyzation of multiple national banks in Norway he revealed that when a
work environment is created where opportunities for employees are given to
improve their skills, knowledge and attitude they tend to become more
motivated engaged and committed.
2.3.2. Excellent performance on the organisational level
So far numerous empirical researches have been presented which sought
explain the linkage between HPWPs and employee engagement. However,
in order to get a step closer to the aim of the present research researches,
studies which aimed to reveal whether engagement can be realized in
greater individual and organisational performance has to be examined. There
are numerous organisational outcomes which can be observed
One of the most complex and comprehensive empirical research has ever
been done was conducted by the Corporate Leadership Council (2004). They
draw results by analysing the engagement surveys of over fifty-thousand
respondents from all over the globe, who worked in ten different industries.
They identified a vast amount of levers which simultaneously affect the
commitment of the workers. In conjunction with the SET (Emmerson, 1976;
Lee et al., 2014) they revealed that employees in return for the received
support (HPWPs) tend go above and beyond, improve their performance and
stay with the company.
The above introduced findings can be aligned with the main theory of the
SHRM which claims that by applying HPWPs the work related knowledge,
skills and abilities (KSAs) of the employees can be enhanced thus better
work performance can be noted. These practices include for example
selective recruitment, employee training opportunities, empowerment,
participation and ownership, comparatively high wages, employment-security
or incentive payment based on performance. In addition, it has also been
claimed that when employees are provided the above job resources they
tend to become more engaged, deliver outstanding work performance and

- 22 -
stay loyal to the company (Applebaum et. al, 2000, Combs et al., 2006;
Kroom, Van de Voorde, Timmers, 2013; Karatepe, Vatankhah, 2014).
The HPWPs examined in the present research are closely related to the
above mentioned ones. Thus, the author assumes that employee trainings,
empowerment and a performance based reward system will be able to
enhance employee engagement and higher work performance. However to
be able to meet the aim of the present paper, the connection between
HPWPs and organisational performance outcomes, in the specific case of
this paper the organisational profit, has to be uncovered. The question how
the individuals’ excellent performance throughout the aiding effect of
engagement could result greater organisational profit still has to be
answered.
High level exchange, mutual respect and reciprocity between leaders and
line employees is one of the most crucial and effective ways to build
employee engagement and foster individual -and organisational
performance. However, as above it has already been explained, high level
LMX on its own cannot doubtlessly guarantee greater organisational profit as
a result due to its interpersonal nature.
Buller and Mcevoy (2011) postulates, that if the aggregated discretional
employee behaviours, rooted in reciprocity, could be utilised in order to
achieve organisational goals, they could increase the performance of the
workers in a certain way that the whole company could profit. Naqvi and
Nadeem’s (2011), defines HPWPs as a bundle of effective performance
enhancing tools used by companies’ human resources management team,
which by operating in a complex system and supported by additional HRM
practices can lead to a ‘win-win’ situation where employees, such as
businesses can profit.
By combining the thoughts of the two above researchers, the author
speculates that in order to ensure the success of the LMX and to fruitfully
apply the examined HPWPs on the organisational level, the company goals,
values and procedures have to be effectively and continuously
communicated towards all employees.
The key system which delivers this information is the human resource
management (HRM) of the companies. The application of HPWPs (extensive

- 23 -
trainings, effective leader-member communication) alongside with the
consistent and continuous communication of the organisational goals help
employees to understand how high performance can be achieved and how it
is defined by the organisation. Moreover, through empowerment, the workers
have the chance to apply their incremental KSAs, gained through the
trainings. Finally, upon successfully accomplishing their assigned tasks and
contributing to the overall business goals they can be rewarded. Thereby,
further motivated to stay engaged and keep up their excellent performance
(Li, Frankel and Sanders 2012).
2.3.3. Still existing debate
There are various reasons why the confusion around this phenomenon still
exists and why some of the researchers still uncertain about the effects of
different adapted HPWPs on employees and on the organisations. Despite
the vast amount of existing researches in this topic, the results are still
inconsistent and the universal, significant and positive effects of the
performance enhancing work practices on employee engagement and
especially on organisational profit is still not unquestionably proven (Neumark
and Capelli, 1999).
Neumark and Capelli (1999) examined not only the organisational
productivity but labour cost as well. Thereby, the comparison between the
gained benefits of the employees and the organisation become possible. In
spite of the fact that a positive correlation between the usages of innovative
work practices and employee benefits (higher involvement, higher
compensation) has been noted, the positive effect of the HPWPs on the
overall financial growth has not been significant. Moreover, in many cases
the increased labour cost tends to offset any increase in productivity that may
occur (Neumark and Capelli, 1999).
In another research, carried out by Wright et al. (2005), cited by Timiyo
(2014), the authors claim that by applying HPWPs derived from ‘effective’
HRM practices the individual KSAs of each employee can be increased,
therefore, could lead to surplus organisational performance. However, ‘good’

- 24 -
HRM practices, such as motivation or development cannot necessarily aid a
change in employees’ behaviour and therefore, they might fail to positively
exert organisational outcomes.
To sum up, from the above presented discussion the author concludes that
the examination of the effectiveness of HPWPs is challenging. There are still
unresolved issues related to this phenomenon which provides room for the
present paper and also for future researches. Moreover, the positive
connection between HPWPs engagement and organisational performance is
not yet undebatable. In addition, other distraction arises from the fact that so
far, studies failed to prove the universal applicability of HPWPs regardless of
the business sector or field where the companies are operating in.
In spite of these confusing facts which still encircle the concept of HPWPs,
the above discussed studies have shown the existence of a strong
relationship between bundles of performance enhancing practices employee
engagement and greater employee performance. Based on the above
statement and the positive reinforcing effects of HRM contingency, the author
contemplates to reveal whether through the application of HPWPs plus the
consistant communication of the company goals greater profit can be
achieved.
2.3.4. The research site
The Ritz Carlton Bal-Harbour, Miami, is a small sized boutique hotel (95
hotel rooms) which has recently become a part of the prestigious brand
portfolio. In the case of the observed hotel a bundle of four HPWPs
(employee trainings, effective leader-member communication, empowerment
and reward system) have been recently implemented, alongside with other
HRM practices, in order to increase employee engagement and ensure
organisational profit.
Since the researched property just became a member of an already
established and worldwide well-famed company in October, 2014 the
expectations of the guests towards the hotel instantly increased. Nothing
less, than excellence is accepted. The key of survival on the highly

- 25 -
competitive luxury hotel market is to deliver implacable guest service and
perfect high-end products. In order to achieve that, as the existing literature
suggest, the hotel has customize the corporate HPWP bundle and ensure
that it indeed can effectively increase employee engagement, improve guest
service and contribute to greater organisational profit.
2.4. Research model
In this previous part of the current study the author’s attempt was to
introduce important and often cited frameworks, theories, models and
empirical researches, which aims to explain how employee engagement can
be reached by implementing different HPWPs and how it can positively affect
the individuals work performance, moreover how the work performance can
be enhanced in a certain manner that the outcome would be profitable for the
whole organisation.
This research, as it has been already stated, focuses on a bundle of four
effective performance enhancing work practices. These are: training,
communication, empowerment and reward system. As the LMX theory, the
RBV or AMO model claim, by applying these practices employee
engagement can be fostered, the individual work performance can be
increased and possibly greater profit can be realised.
Firstly, even if managers hire promising candidates, through selective
recruitment system, without the necessary organisational culture oriented
and task specific trainings they will not be able to deliver the expected
service excellence. Therefore, an excessive training system is highly
recommended.
Secondly, after having the necessary KSAs of the employees, through
effective and open communication a high quality relationship between
workers and managers have to be established (LMX). This high quality
relationship is considered as the foundation of reciprocity.
Thirdly, as the theory of the employees’ psychological contract, such as the
AMO model states, workers have to be given the chance for autonomy.
Letting them to work towards the organisational goals in their individual,
effective way can increase their self-efficacy and strengthen OCB such as

- 26 -
increase the level of their engagement. Therefore, empowerment should be
handled as sheer priority.
Finally, when organisational goals are achieved or when exceeding
performance is recognised according to Hertzberg’s two-factor theory on
work motivation and the AMO model, workers have to be rewarded and
further motivated by financial benefits (hygiene factor) or more importantly by
intrinsic motivators (promotion, involvement in decision making, giving more
responsibility).
Based on the previously explained logic, the author assumes, that this
bundle of four HPWPs have a positive effect on employee engagement,
higher engagement triggers better work performance which is finally being
resulted in greater organisational profit when the 0

- 27 -
Chapter 3. Methodology
3.1. Aim and objectives
The aim of the present research is to understand how the observed bundle
of four high performance work practices (such as training, open leader-
employee communication, empowerment and reward system) needs to be
implemented in order to ensure not only enhanced employee engagement –
and performance but greater organisational profit as well; in the specific case
of The Ritz-Carlton Bal-Harbour, Miami.
In order, to be able to achieve that goal, the author has set the following
objectives:
 Critically analyse the above bundle of HPWPs in order to be able to
conclude whether a strong connection between their implementation and an
elevated level of employee engagement as well-as well-being indeed exists.
 Determine, whether high level of employee engagement has a positive
motivating affect on excellent individual work performance.
 Find out, how the above superior performance of the individuals can
be leveraged in way that higher organisational profit is achieved in The Ritz –
Carlton Bal-Harbour, Miami.

- 28 -
3.2. The approach
Given the complexity of the present study it is required to obtain rich data
about the researched phenomenon. As Bricki and Green (2007) mention,
qualitative research method is appropriate when a topic is attempted to be
observed deeply and when the experience and perspectives of the research
participants aimed to be unveiled. Mason (2002), claims that in order to
successfully gather deep, personal data which helps to understand the
complex social reality of individuals, groups or institutions, qualitative
research is beneficial to be undertaken. Bell, Burmaran and Mills’s (2010)
claim ca be aligned with the above statement. They claim that by uncovering
what individuals think and feel, as well as why they arrived to their current
mind-set could help to develop a well-rounded conceptual understanding of
researched phenomenon.
As it has already been explained above, the present paper focuses on the
individual and organisational outcomes of HPWPs with specific focus on the
luxury hotel businesses. Firstly, on the individual level it attempts to reveal
how these practices affect the engagement and work performance of the
workers. Secondly, on the organisational level it is aimed to be uncovered
how better work performance could be utilized in a certain manner that the
organisational profit is strengthened.
Mason (2002) also postulates that qualitative researches can be
approached differently. A critical approach uses qualitative research method
to be able to analyse a research phenomenon, uncover its possible existing
issues and to find out how it could be made better (Elliott & Timulak, 2005).
Based on the above discussed nature of qualitative research method and the
objectives of the present research, the author have decided on the
application of qualitative research method, which can facilitate the critical
analysation of the researched HPWP phaenomenon.
In order to be able to achieve the above research objectives both the
employees’ and the leadership’s perception about the research topic have to
be uncovered. Silverman (1993) in his study introduces a variety of
qualitative research methods. He states that observation is a crucial part of
qualitative researches. Throughout observation authors have the chance to

- 29 -
immerse in a new culture and to better understand the researched
phaenomena. Qualitative studies, unlikely to the quantitative ones prefer to
use interviews with open-ended questions on a smaller sample, in order to
accesses and rich data.
Moreover as Silverman (1993) states that transcripts and audio recordings,
which are mostly used in qualitative researches can form a reliable source of
information which through critical analysation can be used to develop new
theories.
In the case of the present paper the above introduced methodological steps
were followed. The author spent a whole year in the Ritz-Carlton Bal-
Harbour. Throughout this period of time he had to chance to understand and
embrace its organisational culture which is built upon the effective
implementation of HPWPs. In addition, the observation phase was followed
by the conduct of face to face, semi structured interviews. The population of
the study was carefully, purposively selected and bear significant traits and
characteristics which makes them an appropriate ‘subjects’ for the research
(Bricki and Green, 2007). During the above mentioned interviews the
participants had the chance to express their experiences, opinion and
feelings on the topic being researched. The above interviews have been
recorded and transcribed. Throughout the later stages of the research these
transcribes and recordings assisted the researcher in his attempt to achieve
the aim of his research.
3.3. Sampling, data collection, and data analysis
Qualitative and quantitative researches have different purposes. Therefore,
their sampling strategies differ too. Quantitative researches seek to involve a
wide range of people in the study so the results can be generalised for the
whole population. On the other hand, in qualitative studies, winning
population-wide and generalizable information is not the most important
research driving factor. These researches seek to deeply understand a
certain phaenomenon and this in-depth analysation requires not only a
smaller amount of participants but a highly different recruitment approach
(Bailey, Hennik and Hutter, 2012).

- 30 -
While through quantitative data collection, authors often use the method of
random sampling without paying special attention to certain traits of the
recruited people, qualitative research methodology stresses the importance
of purposeful recruitment, a so called non-probability sampling method. Here,
the author picks participants based on their special characteristics and traits,
in order to ensure that by interviewing them the researched phenomena can
be addressed the best (Bailey, Hennik and Hutter, 2012; Mays & Pope,
1995). This special kind of purposive sampling practice is often addressed as
a deliberate and also flexible data collecting method (Mays, Pope, 1995;
Bailey, Hennik & Hutter, 2012; Bricki & Green, 2007).
Through non-probability sampling, research participants are selected
deliberately, ‘on purpose’, in order to be able to provide rich information
about the examined topic. In addition, a diverse variety of people are
selected for the qualitative studies, who can deliver a wide range of
information, to cover the observed phenomena to the fullest. Moreover, non-
probability sampling is considered flexible too, since through the data
collection process, researchers have the chance to refine their selecting
criteria to gain better final results (Bailey, Hennik and Hutter, 2012).
Based on the above information, for the current study the author has
chosen his research participant through purposive sampling method. First of
all, the author, In order to can obtain a complex overview on the researched
topic, differentiated the employees based on the level of their position in the
hotel. Six managers and and six line employees have been interviewed.
Within the each category participants were carefully selected to represent
different department of the hotel; and thereby fostering the development of a
complex understanding. Managers and directors from the Food and
Beverage, Sales, Human Resources, Housekeeping as well as the manager
of the hotel have been questioned.
As far as the line employees concerned their occupied positions, their
backgrounds as well as their future plans were taken into account when they
were selected for the interviews. Guest Relations, Front Desk,
Housekeeping-Butler Service and different outlets within the Food and
Beverage department were represented within the research population.

- 31 -
As a method of primary data collection face to face interviews have been
chosen with all the selected line employees and leaders. Interviews, although
resemble an everyday interaction, due to their concentrated and focused
nature, allow the interviewer to gain the required research data he or she
needs (Bricki and Green, 2007). Throughout twelve semi structured
interviews the author had the chance to successfully obtain the necessary
data to reach the objectives and aim of the research.
According to Bailey, Hennik and Hutter, (2012), the number of participants
in qualitative researches is determined by the principle of saturation. They
claim that a study reaches its point of saturation when the newly collected
data starts becoming repetitive. Qualitative researches aim to identify a
variation of feelings, opinions and experiences of a smaller number of
individuals, instead of finding a vast amount of participants with the same
feelings and opinions. Thus, after this point further data collection could not
bring anymore new and useful information which could support the study.
Given the small number of line employees, such as leaders in the case of
the researched hotel, the author states that after interviewing six-six
purposefully selected people from each group, additional data collecting
effort would not bring new information and the results would become
redundant.
After having the qualitative data successfully gathered, it has to be
analysed. The author in order to minimise the bias of the research, has
selected thematic data analysis, where by identifying common issues and
perceptions, different themes can be set which allow the author to carry out a
fully comprehensive analysis. Thematic data analyses helps to identify, and
analyse patterns within the rich research data. With its support the author
was able to organise and better understand the gathered information. A
theme within the research data can be defined as a set of patterned
responses which captures important information about the research data
related to the research topic. The flexibility of the thematic research analyses
allowed the author to identify themes which were the most beneficial to assist
him in reaching the aim of his research.

- 32 -
3.4. Credibility and confirmability
Qualitative studies are often criticised that the internal validity and reliability
of these researches cannot be addressed in the same way as in quantitative
researches. In spite of this criticism, qualitative researchers showed several
times that trustworthy data can also be gained through qualitative research
method (Shenton, 2004).
Although, qualitative studies are also able to present data which can
respond to the issues of validity and reliability, researchers in their qualitative
work prefer a distinguishing terminology. Guba (1985), cited by Shenton
(2004), claims that there are four major criteria which have to be taken into
account by researchers in order to conduct a trustworthy study. These four
criteria can be aligned with the ones followed by the quantitative studies.
While, credibility and confirmability correspond with internal validity and
objectivity, transferability and dependability represents the preference to
generalisability and objectivity (Guba, 1981). In this following section all these
four criteria will be taken into account in connection with the current study.
First of all, the credibility and confirmability is discussed.
Anney (2014) states credibility ensures that the information presented in the
research findings is plausible, correctly represents the original perspectives
and opinion of the participants; moreover, it is gained from their original data.
She also claims that there are various applicable strategies in qualitative
studies which aim to help the researcher to increase credibility. If the
researcher succeeds to establish a prolonged engagement in the field of
study he or she can gain a better insight into the research context and
minimise the bias of the collected data. During a prolonged stay the author is
able to overcome the possible distortions which emerge due to his or her
presence (Guba, 1981). Furthermore, throughout a persistent observation
extended time spent on the research site enables the researcher to embrace
the culture and milieu around him. Moreover, by better understanding the
research phaenomena the author is able to learn to only focus on aspects
which are valuable and crucial regarding his or her study and eliminate
others (Guba, 1981). In addition building a higher level of trust with the
participants and provide deeper and more credible information about the

- 33 -
respondents culture such as the whole phenomenon. In order to ensure the
above mentioned prolonged engagement and persistent observation the
researcher has spent a whole year on the field of research. During the first
six months the author observed and sought to understand the organisational
culture and the applied HPWPs in the Ritz-Carlton Bal-Harbour. This initial
research period was followed by another six months when the primary
qualitative data was collected and critically analysed.
On the other hand, the researcher also reached out for academic help and
consulted with other researchers in order to be able to gain other peoples’
perception and to can draw a more accurate and reliable research conclusion
(Anney, 2014).
Another strategy which all qualitative researchers should apply is the so
called member check. Through this process, the researcher aims to improve
the credibility of the data collected during the in-depth interviews (Cole &
Harper, 2012). By restating and summarising the gathered information for the
interviewees the interviewer was able to determine their accuracy and
therefore improve the credibility of the findings (Cole & Harper, 2012).
After discussing various strategies used in the current paper in order to
increase credibility, another requirement of a reliable qualitative researches
have to be mentioned. Along the process to affirm confirmability the author
aims to assure that the research findings are true representations of the
responders’ experiences, perceptions and ideas rather than the researcher’s
preferences. As Shenton (2004) states, in order to ensure confirmability and
reduce researchers’ bias, the author has to admit his own predilection
regarding the decisions have been made and methods have been chosen
during the research process. Therefore, the reasons why one method over
another has been chosen must be explained, moreover the weaknesses and
limitations of the technique actually applied must be revealed and admitted.
This way the connection between the research findings and its source is
shown to the readers, thus the direct linkage between the research
conclusion and data can be established. As a consequence, readers are
ensured that the research findings are resulted from the qualitative
examination itself and not from prior assumptions or predictions (Daymon
and Holloway, 2002).

- 34 -
In order to support confirmability the author in the current study, has already
documented his decisions about the method of the research; furthermore, the
explanation and reasons of his decisions are presented, too. In addition, the
limitation of the present study and its research method are admitted as well.
Finally, to ensure a confirmable study, all information collected during the
data gathering process is carefully and accurately recorded. Audio records
and notes have been taken during the interviews and they have been saved
and submitted together with the research findings. Thus the origin of the
research conclusions is established and can be inspected.
3.5 Dependability and Transferability
As Anney (2014) claim, Dependability refers to consistency of the findings
over time. Moreover, according to Daymon and Holloway (2001)
dependability shows strong linkage with credibility. As it has been described
already, credibility is mend to ensure the plausibility of the research and that
the gathered information is a true representation of the participants’ opinion.
However, in order to reinforce credibility the author has to make sure that the
present research is dependable as well. In order to secure dependability
readers continuously evaluate the research context and the adequacy of the
research. Therefore, to allow and support this evaluation the author of the
present study aims to reveal the decision making process has been used
throughout the research and present an audit trails where the data gathering
process alongside with the interpretation of the gained data can be followed.
During the audit trail light is shed on the data collecting process, furthermore,
it shows how the data were recorded and analysed. Through these audit
trails dependability can be secured such as the consistency and plausibility of
the current research can be increased (Daymon and Holloway, 2001).
Finally, the fourth criteria of the qualitative researches have to be explained
too. Transferability, as Anney (2014) claims refers to the extent to which the
findings of the qualitative research can be replaced to a different context,
different environment with different respondents. On the other hand, it can be
stated that transferability can be considered as the exchanged version of
external validity, such as the interpretive equivalent of theory based

- 35 -
generalisability. Since qualitative researchers work with a smaller sample the
quantitative ones their results are very specific to the researched area and to
the certain groups or individuals have been studied. Therefore, an additional
guidance from the author regarding the applicability of these specific findings
in another business setting is required (Daymon and Holloway, 2001). In
order to ensure and demonstrate the salience of the current research the
author has used purposive, non-probability sampling. This method was
proved to be effective in selecting certain key informants who has an in-depth
knowledge and experience in the question being investigated (Teddlie & Yu,
2007), cited by Anney (2014). In the present research the author, after
purposefully choosing his respondents to further reinforce transferability,
aims to provide extra guidance about the possible implementation the current
research finding in a different business environment.

- 36 -
3.6. Limitations
During the data gathering process the author encountered various
obstacles and limitations. Firstly, that the English language was not the
native tongue of all the interviewees, therefore, even though they had no
problem understanding the questions they have been asked the actual
deepness of some their answers can slightly questioned. Secondly, the
author had to face the tightness of the hospitality employees’ schedule. The
questioned managers and line employees tend to work long hours and most
them by constantly being in the front of the house, between guests were
hardly accessible. Thus some of the interviews had to be conducted at their
actual work places instead of a calm room. Thirdly, as the author has already
mentioned, the examined property being only over one year old is a difficult
location to provide far-reaching results. Moreover, the observed hotel is
considered a small, boutique resort hotel, thus its operation can be severely
distinctive to other either bigger or business oriented hotels. Finally, its
location, being situated in Miami also determines various factors such as the
high number of South-American and American origin both within the guests
and employees.

- 37 -
Chapter 4. Findings
The next chapter of the current research is committed to the presentation of
the data gained from the twelve in-depth interviews conducted with the
leadership team of the hotel as well as with various line employees working
in different departments. The findings are based on the audio recordings and
transcripts of the interviews and enliven numerous theories and models
examined in the present study. The information gathered from the
respondents are categorised into five different themes. These are divided into
different sub-sections. The semi-structured interviews allowed the
respondents and also the author to follow the flow of the conversation.
Moreover, by the help of the pre-set structure deep and valuable information
on the opinion and feelings of the interviewees’, regarding the four HPWPs
and their outcomes, have been gathered.
4.1. Training and its effectiveness
4.1.1. Company culture
According to the majority of the respondents trainings form a crucial part of
the Ritz-Carlton culture and can provide valuable contribution to effectively
increase the employees’ individual knowledge and help them to gain new
skill. The majority of the employees are also agreed that trainings provide an
effective help in terms of increasing their performance and providing better
guest service. In order to better understand the way how employees are
trained in the Ritz-Carlton, a two tiers training system has been revealed by
most members of the leadership team and its existence has been reinforced
by some of the line employees as well.
As the hotel manager explained it, throughout the first level of the trainings
the new hires are introduced to the Ritz-Carlton philosophy and core values.
In order to preserve the strong organisational culture and maintain service
quality it is vital to ensure that all newcomers understand the philosophy of
the company and embrace its culture.

- 38 -
“We really tend to focus on the initial trainings of our ladies and gentleman
and these trainings are more about the cultural aspects of the company. So
actually we focus a whole lot less on the technical training” (Respondent 1;
34).
On the other hand, as it was claimed by the assistant director of food and
beverage, the aggressive teaching of the company’s culture helps workers to
understand the higher mission and overall goals of the hotel. Moreover, the
more training the employees go through, the better they will understand their
own role in the achieving of the above goals. They will be able to see the
importance of their job beyond the level of tasks. Therefore their job becomes
more purposeful and they tend to become more engaged.
“We train them and we also would like to think that if we did a great job
implementing the Ritz-Carlton culture they will not leave. It is not a
brainwash; literally people say that my blood is blue. I truly believe that my
blood is blue too; all I believe is Ritz-Carlton. Once you have that vision,
regardless how bad a guest is or a situation or the pressure is, for example, I
would never consider leaving the company” ( Respondent 2; 385).
While all the managers shared the view about the utmost importance of the
initial, on-boarding trainings, between the line employees it was not
considered as priority compared to other- technical trainings. However, as
the concierge of the property admitted, trainings in general help to maximize
your performance. However, in order for the trainings to exploit its potential to
the fullest a certain service oriented personality and talent are preferred.
“I am very empathetic with the guest” (Respondent 9; 48)!
“I have always loved to take care of people, in my family as well. So I decided
to use that as a career path and actually get payed for taking care of people.
Now I can be a nice guy and get payed for it (Respondent 9; 167).
“I think to be completely honest with you, the trainings can definitely help, but
again, every situation is different and also important the personality and
talent. Talent is something what cannot be thought. Either you have it or not.
However, what the training does and what the actual experience does, they
bring the best out of people (Respondent 9; 175).

- 39 -
4.1.2. Technical trainings
The majority of the line-employees stated that especially technical trainings
help them to become more professional build more confidence and handle
issues more effectively. Although, they all agreed that trainings can
effectively increase their performance, most of them pointed out the lack of
consistency in technical trainings.
“The only trainings we received were about the company core values. They
do not really train you on your job and there were no cross trainings to other
positions or trainings to do effectively lateral service or even work in my own
position” (Respondent 12; 85).
They accepted the importance of embracing the culture however, the majority
of them experienced a huge imbalance between the culture oriented and
actual service oriented technical trainings.
“I think overall there is a little bit of panic all the time, which means that there
is a lack of something. There is a lack of training, lack of knowledge, lack of
experience or something” (Respondent 12; 134).
This issue has been reflected in some of the management interviews too.
Despite that some of them specifically highlighted the importance of the daily
line-ups as routinely conducted, department focused, service oriented, short,
reinforcing technical trainings; they admitted that the hotel still suffers from
many technical and service related defects.
“There is no practice. So line –ups are a little bit like how you practice during
the game” (Respondent 6; 162)”.
“We noticed something here in this hotel, if we look at our key emotional
drivers, like sense of well-being, personalized service, genuine care, using
guest name and all of these what we call emotional drivers we do really great
at this hotel” (Respondent 1; 333).
As far as the author postulates, this statement can be aligned with the
excessive initial company culture -and value oriented trainings. Although, as
far as the technicalities and functional details are concerned, the hotels still
not always succeeds to meet the expectations of the guests.
“The functional key drivers are a little bit weaker. We are trying to balance out
a little but more. The employees are warm and sweet, people love us and

- 40 -
they think that we are great, but then the drinks took ten minutes. We are
missing the balance” (Respondent 1; 333).
4.2. Leader-Member exchange (LMX)
The following section is devoted to present the findings about
communication, expectations, support and relationship between leaders and
employees. Based on the above specifications this section will be divided into
four sub-sections.
4.2.1. Clarification of the expectations
The Ritz- Carlton being one of the most recognised luxurious brands has
high expectations towards their employees and strong service standards.
The management team stressed the importance of universalised
expectations towards the employees in order to ensure high quality service
throughout the whole company.
“The expectations are the same throughout the whole company. You cannot
lower the expectations whether they come from a different background or
from a different company the expectations have to be same. The amount
time to get there might be different for different people but the expectations
are the same, especially at the luxury level, at The Ritz- Carlton”
(Respondent 6; 108).
Although, not only the hotel has high expectations towards the employees,
but the workers expect a lot from the company as well. The majority of the
leadership team granted that according to their experience the two most
expected things by the employees are the highest luxury and the support in
personal growth.
“Well experience is a big one. Having Ritz-Carton in your resume is
something what no one overlooks anywhere at any company. It is not even
hotels, it is any company. They know, if you worked for the Ritz-Carlton you
understand luxury” (Respondent 6; 117).

- 41 -
Most of the managers also acknowledged the significance of honesty and
clarification of the hotel’s and also the employees’ expectations, since it can
highly affect the workers’ -as well as the guest’s engagement, which in a long
run determines whether the is profitable or not.
“Yes! Engagement is definitely important. But not just that, it is better for the
guests too. If a guest goes to Ritz-Carlton Dallas and then here if there are
different expectations towards the employees than there is going to be
different standards which will create guest disloyalty and disengagement.
Which means the whole company will lose its interpretation and reputation.
Moreover, it is bad for the staff because at the end of the day if we do not
have guests than we do not have pay checks” (Respondent 6; 131).
Although, they strongly believe in the brand, it was also admitted that the
hotel being analysed is a very new property and sometimes disappoint the
employees on the technical, the luxury end.
“I think the expectations are extremely high and sometimes we might
disappoint the ladies and gentleman when we hire them. Especially, when
some properties are new, just like this property” (Respondent 2; 145).
The same expectations were stated by the majority of the line employees as
well. High luxury is expected just as much as the opportunity for personal
growth. Half of the interviewees’ felt that the hotel met with their initial
expectations; however the other three respondents gave voice to their
dissatisfaction regarding the consistency of the technical- and cross trainings.
“I think if we invested more in staffing who would be trained better the guests
opportunities would be less, which means we spend less on these issues,
would be less free things, free upgrades, comped food and all these things
we spend money on” (Respondent 13; 150).

- 42 -
4.2.2. Supportive leadership and coaching
It has been found that all the questioned leaders consider employee support
as one of the key element of their leadership. It has been claimed that it is
vital to create a supportive, sound and stress-free environment where
employees feel free to come and ask for support and feedbacks and where
coaching is provided on a regular basis.
“You always try to create an environment where all employees feel
supported.” (Respondent 1; 204)
It has also been revealed if the relationship between the managers and
employees is solid, authentic and characterised by mutual respect a higher
level of engagement can be noted. Moreover, the interviews have uncovered
the performance enhancing nature of the supportive leadership too.
“I think it is very important that there is a solid and authentic relationship
within the managers and the ladies and gentleman. First of all each
employee want to be respected just like you and me, wants to honoured in
every way” (Respondent 5; 139).
“If you know them personally and support them, you will get more out of
them.” (Respondent 6; 205)
The positive, engagement driving effect of supportive leadership have been
supported by the majority of the line employees as well. Moreover, most of
them have emphasized the positive performance enhancing effect of the
performance evaluations as well when they are delivered in a positive and
supportive manner.
“That is great. That is a learning process that is how I see it. This is a growing
process. Was it more positive or negative the feedback what you received?
For me it was more positive”. (Respondent 10; 119)
Even though, that all the line employees stated that they work in a safe
environment where they feel comfortable talking to their managers or ask for
their help not all of them felt that they receive the necessary or expected
support from them. They were simple hard to be available, as one of the
employees mentioned.
“I feel like that the managers are always in the offices and there is not
enough time when they are out on the floor. At food and beverage I see them

MSc_ Mate_Torok _2016-June

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