International Journal of Marketing & Human Resource Management (IJMHRM)

Volume 1 Issue 1 May 2010 pp. 42-57

http://iaeme.com/ijmhrm.html

IJMHRM
IAEME

TRAINING AND DEVELOPMENT PRACTICES IN INDIAN

HOTEL INDUSTRY: AN EMPIRICAL INVESTIGATION
Mohinder Chand 1 , Ankush Ambardar 2
ABSTRACT
The aim of this paper is to investigate and report the importance and usage of
training and development practices used in Indian hotels and to identify whether this set
of training & development practices depends on the enterprises demographic
characteristics of Indian hotel enterprises. Based on a survey of 425 Indian hotel
organizations perceptions on training & development practices were assessed by 31
training & development practices and 5 demographic variables. Factor analysis was
performed to identify training & development practices, one-way ANOVA was employed
to test the association of the demographic variables with training & development
practices. The study provides a strong indication that there are significant differences on
usage and importance of training & development practices in Indian hotels. Further,
findings suggested that there is a positive relationship between training & development
practices variables and hotel category and type of enterprise; however the results are
somewhat different with regard to training & development practices variables and hotel
age and size (capital or employees).The study makes a modest attempt to add information
to the very little empirical knowledge available referring to the training and development
practices in Indian hotel industry.
Keywords: training & development practices, HRD, hotel industry, India,

Associate Professor,Department of Tourism and Hotel Management

Kurukshetra University, Kurukshetra, (HR) India
2

Assistant Professor,University Institute of Hotel Management and Tourism

Punjab University, Chandigarh, India

International Journal of Marketing & Human Resource Management

INTRODUCTION
Today, employees training & development has been recognized as a significant
determinant of both employee and organizational performance (Lucas, 2004; Mullins,
1998; Baum, 1995; Boella, 2000 and Mohinder and Katou, 2007). Managers in todays
organisations have placed great importance on the issue of training & development of
their employees because the trained employees, in return, are more likely to take pride in
organisational achievements; believe in the goals; committed to their organisations and
values of the organisation and, therefore, exhibit higher levels of performance (Arthur et
al., 2003). In fact, the implementations of various training& development programs
fosters learning and improve the overall competence of organizational members, and it is
believed that training implementation leads to higher organizational performance
(Blackburn,1995;Bolla,2000 and jones,2002). Therefore, the organization has to promote
the training and development of its workforce to broaden their knowledge and skills, reorient their culture and values, and encourage individuals to become idea champions.
Training and development is generally defined as a set of formal organizational and
individual practices that are designed to enhance the potential contribution of human
resources to the organization (Noe 2005; Wentland, 2003; ODwyer and Ryan, 2002).
Although the importance of training & development practices have been continuously
emphasized by academics and practitioners alike ( Bacon and Hoque 2005; Beaver and
Hutchings 2005; Garcia 2005), however studies regarding how these training programs
facilitate to improve the efficiency & performance of employees are still required (; Ng
and Siu 2004). Many scholars have pointed out that the significance of training &
development lies how effectively it is implemented (Kyriakidou and Marondas, 2010;
Krishnaveni and Sripirabaa, 2008; Montesino 2002). To enhance the significance and
importance of training & development practices, firms should pursue a better match
between their training needs and training implementation (Noe 2005).
The hotel industry is chosen as the industry for analysis of employee training, as it is
the critical industry accommodating the increasing number of visitors and is the second
largest foreign-exchange earner in India after manufacturing industry. Tourists arrivals
reached new records of 5.11 million in 2009, generating US$ 11.39 billion in tourism
receipts (Ministry of Tourism, 2009). Moreover, the hotel industry is projected to
generate total revenue of about 11.34 billion during the period of the 11th Indian Plan
(The Planning Commission, 2009). Hence, highly trained, satisfied and committed
employees in the hotel industry, delivering high service quality levels to the tourists, is of
paramount importance, whereby the employees are often seen as an integral part of the
service experience (Zheng and Ricardo, 2009; Weslay, 1999; Armstrong, 2000 and
Mohinder, 2010). Moreover, in hotel organizations, training & development is seen as
one part of a system designed to create intellectual capital, which includes not only
learning basic opportunities needed to perform the current job assignments, but also
stimulating creativity and innovation as well as motivating employees to acquire and
apply knowledge (Lucas, 2004; Mullins, 1998; Baum, 1995; Boella, 2000 Mohinder
,2010). Thus, as part of this process, hotels are now focusing on continuous cycles of
learning to capitalize on their organizational capabilities in achieving a sustained superior
performance-both guest satisfaction and profitability.

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International Journal of Marketing & Human Resource Management

The purpose of this research is to determine the current training and development
experiences and the emerging best practices in hotel organisations in India. Specifically,
this paper aims to identify the significant training and development practices used in
Indian hotels and to investigate whether this set of training & development practices in
the Indian hotel enterprises depends on the enterprises demographic characteristics.
The remainder of the paper is organised as follows. The next section briefly examines
the review of literature and hypothesis development in the context of training &
development practices in Indian hotel enterprises. This is followed by details of empirical
design. The survey findings are then summaried, followed by a discussion of their
implications. The last section sets out the conclusions and further research.
THEORETICAL UNDERPINNINGS AND HYPOTHESIS DEVELOPMENT
Owing to the increasing importance of HRD practices to the competitive advantages of
firms in the rapidly changing knowledge- based economy, some scholars have paid
attentions to examine the usage and importance of HRD practices (e.g. Tannenbaum,
2002) and their effects on organizational outcomes, such as productivity and efficiency
(Youndt et al., 1996). The importance of training and development programs to overall
firm performance has been emphasized by several scholars (Mohinder and Katou, 2007
Smith, et.al. 2007). The human capital theory suggested that training can enhance
employees skills and competences, which in turn increase their productivity and
performance (Youndt, et al., 1996; Mertens, L.2004; Denins and Johnson, 2003; Salas
and Cannon, 2001).
There is burgeoning research literature that indicates the importance of training and
development practices such as Kyriakadou andMarondas, 2010; Mertens, 2004; Lucas,
2004; Matlay, 2002; Krishnavani and Sripirabaa, 2008; Kayode, 2001; Black and
Mendenhall, 1990). These researches found that extensive training and development is
used to improve the quality of employees which further enhances overall performance
of the organization through better customer satisfaction and attainment of individual
goals. Wesley, (1999) examined the attitude of U.S hotel employees after they received
training and found, training is consequential to the success of franchise lodging
organizations because it has not only a direct positive relationship with morale,
perception of supervisor quality, and awareness of rules but also a significant indirect
effect on organizational commitment. Similarly ,Armstrong, (2000) suggested that
training has direct relationship with the employees performance and defined training as a
formal & systematic modification of behavior through learning which occurs as result if
education, instruction, development, & planned experience. Further, Gamio and
Sneed,(1992) determined cross-cultural training (CCT) practices and needs in U.S.
hotel/motel companies. They found that most hotel companies did not provide crosscultural training to employees, although one third of their employees were culturally
diverse and that managers who understand values of cultural groups are more effective in
training employees. Thus, any positive effects gained from crorr cultural trainign
programmes, are ephemeral. Palo & Padhi (2003) highlighted the significance of total
quality management training for updating the knowledge, developing skills, bringing
about attitudinal and behavioural changes, and improving the ability of the trainee to
perform his/her tasks efficiently and effectively. Akinyele(2007) opined that training has
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International Journal of Marketing & Human Resource Management

a high positive impact on employee and reduces the nature of hazards on the job in the
accomplishment of corporate objectives. Thus, effective training leads to acquisition of
skills and knowledge required for employee to perform effectively on the job. Further,
the importance of training& development practices has also been emphasized by both
academics and practitioners (Bacon and Hoque 2005; Heraty and Morlay, 1997; Herman
and Eller, 1991; Beaver and Hutchings 2005; Garcia 2005).
Al-Emadi (2007) stressed that participation in training activities helps employees
network, improve their job performance and make progress towards their personal
development (i.e. personal benefits of training). Heraty and Morley ,(1997) strongly
believed that training and development form a vital strategy in human resource
management, one of the factors that stimulate innovation, which in turn, steers the
companies toward gaining competitive advantage. Further, he stated that training and
development have become an important area for the firms as it helps to improve job
performance and to help the workforce acquire and improve their technical skills. Jones
et al. (2008) found that training & development is positively associated with job
satisfaction, and job performance. In similar vain, Nankervis (2010), and Nicholas et.al.,
(2010) stated that continuous development of employee potential is dependent on training
at every level to acquire improved skills which resulted into employee input on decisionmaking, influence on working practices and creativity on performance objectives.
Moreover, training and development programs can be thought of as a strategic intent to
ensure lasting competitiveness and consistent with the overall business strategy.
A review of all the studies mentioned and discussed above confirmed that training and
development of manpower is a prerequisite for any organization that wants to achieve
maximum productivity through the efficient and effective performance of employees. It
becomes more important for hotel industry where human resource is the biggest asset and
employees play a vital role in guest satisfaction as people are serving to people in hotel
industry.
Recently, the importance of the training & development practices has been addressed
in the context of services in general (Noe, 2005; Chen and Richard, 2007 and Lucas,
2004) and in the case of the hotel industry in particular (Kyriakidou et. al.; 2010;
Mohinder, 2010; Mohinder, 2007). Many studies have demonstrated the usage of various
training & development practices and their implications in the context of cost reductions,
resource savings, customer retention and loyalty, and improved employee morale. The
generalizability of these results, however, is limited by the case study or anecdotal nature
of the evidence they are based on. Therefore, there is a need for further empirical work to
identify the importance of usages of Training & development practices and their
relationship with some of demographic variables such as size, category, age, capital,
number of employees and type etc.
The study provides two hypotheses in order to analyse the importance of training &
development practices and to understand the difference in derived training &
development practices in relation to specific characteristics of hotel organisations.
H1: There is a positive relationship between the importance of training &development
practices and the adoption of training &development practices.
H2: There is a positive association between the control variables (demographic) of hotel
enterprises and the adoption of training &development practices.
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International Journal of Marketing & Human Resource Management

RESEARCH METHODOLOGY
Sample and data collection
Data were collected using mail questionnaires. The questionnaires were addressed to
Training Managers \HR managers of 425 hotel organizations (approved by the Ministry
of Tourism, Government of India, 2009) of which 200 (47.06%) returned the
questionnaires. The data were analysed using SPSS. The questionnaire was tested for
reliability and internal consistency using Cronbach . This test calculates the reliability
coefficient () if one variable is removed from the original set of variables in the
questionnaire. This test helps determine the set of variables with high reliability based on
the coefficient above 0.80.
Measures
Training & development Practices: We used existence of 31 training & development
practices based on literature review (see first column of Table I) and measured on a
Likert-type 5-point scale ranging from 1=never 5=very often in case of usage and 3-point
scale (1=not important, 2=moderately important, 3= important) for importance.
Table I presents the results from exploratory principal components factor analyses
with varimax rotation on the 31 individual training & development practices items
categorised into five groups. The training and development practices items were factored
into five factors explaining from 76.21 to 82.23 percent of total variation. The first factor,
we label as Induction Training (IT) that comprises adequate importance is given to
training, it is well planned, it is of sufficient duration, to enable gain self confidence and
perform better, it protects from costly mistakes; understand general objectives, scope,
programmes, problems, policies and structure of the organisation.
The second factor On- the job Training (OJT) includes to acquire technical
knowledge and skills through training, participate in determining the training needs, the
quality of in-company programmes in your organization is excellent, senior line
managers are eager to help their juniors develop through training, improved availability
& quality of staff, training takes place either on or off-the-job, satisfaction with
performance reviews, line managers provide the right kind of climate to implement new
ideas and methods acquired by their juniors during training. The third factor Off-thejob Training(OTJT)consists of enhanced confidence, commitment & motivation,
recognition, greater responsibility & pay improvements ,availability of training for
problem-solving ability, understanding of the skills and knowledge they are expected to
acquire from the training., employees returning from training are given adequate free
time to reflect and plan improvements in the organisation, external training programmes
are carefully chosen their quality and suitability, to change behaviour, attitudes or
opinions and off the job training is more preferred by the employees. The fourth factor
cross cultural Training (CCT) comprises. cross-cultural training is given high
importance in your company, there is no discrimination between any staff member in
regard to his/her culture, cross-cultural training improves team work, your organization is
not messed up with cross-cultural conflicts, feedback is collected about the effectiveness
of every T&D programme from each employee. Finally, the fifth factor Spiritual
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International Journal of Marketing & Human Resource Management

Training (ST) comprises your organization participates in spiritual trainings, adequacy of

continuing training, it enhances self confidence and it decreases tension /stress as
compared any other form of training
Table I Factor analysis results for the Training & Development Practices items in Indian hotel
industry
Factor 1
Factor 2
Factor 3
Factor 4
Factor 5
Explained variation (per cent)
Eigen values
1. Induction Training
Adequate importance is given
It is well planned.
It is of sufficient duration.
To enable gain self confidence
and perform better
It protects from costly mistakes
Understand general objectives,
scope, programmes ,problems,
policies and structure of the
organisation
2. On- the job Training
To acquire technical
knowledge and skills through
training.
participate in determining the
training they need.
The quality of in-company
programmes in your
organization is excellent.
Senior line managers are eager
to help their juniors develop
through training.
Improved availability &
quality of staff
Satisfaction with performance
reviews
Line managers provide the
right kind of climate to
implement new ideas and
methods acquired by their
juniors during training
3. Off-the- job Training
Enhanced confidence,
commitment & motivation
Recognition, greater
responsibility & pay
improvements
Availability of training for
problem-solving ability
Understanding of the skills and
knowledge they are expected
to acquire from the training.

78.32
1.87

82.23
2.40

81.10
2.65

79.12
1.56

76.21
1.47

0.65
0.79
0.70
0.65
0.82

0.86

0.89
0.70
0.80

0.85

0.90
0.77
0.79

0.82
0.80

0.90
0.80

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Employees returning from

training are given adequate
free time to reflect and plan
improvements in the
organisation.
External training programmes
are carefully chosen their
quality and suitability.
To change behaviour, attitudes
or opinions
Off the job training is more
preferred by the employees.
4. Cross cultural Training
Cross-cultural training is given
high importance in your
company.
There is no discrimination
between any staff member in
regard to his/her culture.
Your organization is not messed
up with cross-cultural conflicts
Cross-cultural training
improves team work
Feedback is collected about the
effectiveness of every T&D
programme from each
employee
5. Spiritual Training
Your organization participates
in spiritual trainings
Adequacy of continuing
training
It enhances self confidence
It decreases tension /stress as
compared any other form of
training
Cronbach alpha

0.75

0.72

0.70
0.60

0.80

0.73

0.67
0.76
0.74

0.65
0.67
0.55
0.79

0.80

0.82

0.81

0.79

0.78

Table 2 presents the distribution of the sample organisations according to the controls
used in the study. The vast majority of the sample was 4 star & 3star hotels (52.50%), and
48.5% of the sample hotels were established in the last 15 years. With respect to the size
of the organisations, 66% of the sample organisations were rather medium organisations
with less than 50 million Rs in operating capital, and 59% of the sample hotels were also
medium organisations with less than 300 employees. Finally, nearly 35% of the sample
hotels were individual enterprises.

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International Journal of Marketing & Human Resource Management

Table 2 Distribution of sample according to Demographic characteristics (N=200)

Number
Percentage
Category of hotels
5 star deluxe & 5star
20
10.00
4 star & 3star
105
52.50
Others
75
37.50
Age (in years)
5
5
2.50
6 10
20
10.00
11 15
97
48.50
16 20
63
31.50
21
15
7.50
Capital (in million Rs)
10
5
2.50
11 30
30
15.00
31 50
59
29.50
51 70
31
15.50
71
10
5.00
Employees (numbers)
100
10
5.00
101 300
70
35.00
301 500
50
30.00
501 700
20
10.00
701
10
5.00
Type of enterprise
Individual
70
35.00
Others (joint, partnership)
130
65.00

RESULTS AND DISCUSSION

To find out the extent to which Indian hotels applied training and development
practices, respondents were asked to indicate importance and usage of training and
development practices. Further to structure the discussion of the findings we ranked the
31 training and development practices according to their usage and importance in table 3.
The respondents strongly believed that training and development is a vital for an
organisation. There are a number of reasons cited in the survey as to why training and
development is important, and these are shown in Table 3. From the array of responses
mentioned, it is the value of improved availability of staff and quality of staff (90%)
that tops the list. The other more frequently identified values of the importance of
training from a bigger bulk of the firms are: employees returning from training are given
adequate free time to reflect and plan improvements in the organisation (79%); followed
by adequate importance is given to induction training (76%) problem-solving ability
(67%); understand general objectives, scope, programmes ,problems, policies and
structure of the organisation(75%) and enhanced confidence, commitment &
motivation(80%).

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Five factors of training and development practices items have been identified based on
exploratory principal components factor analysis and are indisputably widely used and
important in the Indian hotel organisations such as induction training, on- the job
training, off- the job training ,cross cultural training, and spiritual training. Ranking
these practices high in terms of their importance and adoption, improve availability of
staff and quality of staff ranked first out of 31 training and development practices
(TDP). While, this variable ranked second in case of adoption, indicating that hotels are
using training and development practices to attract talents and to improve quality of staff.
Importance to induction training is ranked 3rd where as cross cultural and team work
practices accorded 4th place. On looking the usages training for problem-solving ability
and recognition, greater responsibility & pay improvements ranked 3rd and 4th place
respectively. Looking first for the extreme position apparent from the table 3, it is found
that Indian hotels have adopted (according to first five ranks) enhanced confidence,
commitment & motivation, Improved availability & quality of staff, Availability of
training for problem-solving ability, Recognition, greater responsibility & pay
improvements and understand general objectives, scope, programmes ,problems, policies
and structure of the organisation. On the other side these hotel enterprises gave
importance (according to first five ranks) to improve availability of staff and quality of
staff; Employees returning from training are given adequate free time to reflect and plan
improvements in the organisation; adequate importance is given to induction training,
cross-cultural training improves team work and well planned induction training
Results reveal that except improved availability of staff & quality of staff, there is no
uniformity between usage and importance of training & development practices in Indian
hotels. The variations in ranking and lack of uniformity in usage and importance of
training & development practices indicating that Indian hotel organisations are
fragmented and they gave low priority to training and development practices (TDP).
Thus, the analysis provides a strong indication that there is significantly difference on
usage and importance of training & development practices in Indian hotels (rejecting
H1).
Table 3: Ranking and descriptive statistics of Training and Development Practices in
Indian hotels
Importance*
Usage**
Training & Development Practices

Mean SD

Rank

Mean SD

Rank

1. Induction Training
Adequate importance is given

4.76

0.67

3.18

0.79

25

It is well planned.

4.60

0.70

3.11

0.78

30

It is of sufficient duration.

4.05

0.75

16

3.95

0.76

To enable gain self confidence and perform

better
It protects from costly mistakes
Understand general objectives, scope,
programmes ,problems, policies and structure
of the organisation

3.14

0.79

30

4.00

0.75

4.20
4.00

0.73

12
18

3.14
4.20

0.77

0.75

29
5

0.75

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International Journal of Marketing & Human Resource Management

2. On- the job Training

To acquire technical knowledge and skills
through training.
Participate in determining the training they
need.
The quality of in-company programmes in
your organization is excellent.
Senior line managers are eager to help their
juniors develop through training.
Improved availability & quality of staff

4.42

0.71

3.82

0.77

13

4.38

0.70

3.61

0.79

27

4.40

0.71

3.68

0.77

15

4.36

0.70

10

3.64

0.75

19

4.96

0.77

4.70

0.71

Training takes place either on or off-the-job

4.09

0.75

15

3.13

0.79

28

Satisfaction with performance reviews

4.40

0.71

3.15

0.81

26

Line managers provide the right kind of

climate to implement new ideas and methods
acquired by their juniors during training
3. Off-the- job Training
Enhanced confidence, commitment &
motivation
Recognition, greater responsibility & pay
improvements

3.45

0.66

28

3.95

0.76

11

4.10

0.72

14

4.75

0.70

3.18

0.79

29

4.42

0.70

Availability of training for problem-solving

ability
Understanding of the skills and knowledge
they are expected to acquire from the training.
Employees returning from training are given
adequate free time to reflect and plan
improvements in the organisation.
External training programmes are carefully
chosen their quality and suitability.
To change behaviour, attitudes or opinions
Off the job training is more preferred by the
employees.
4. Cross cultural Training
Cross-cultural training is given high
importance in your company.
There is no discrimination between any staff
member in regard to his/her culture.
Your organization is not messed up with
cross-cultural conflicts
Cross-cultural training improves team work

3.10

0.80

31

4.62

0.69

3.95

0.73

19

4.63

0.70

24

4.90

0.66

3.51

0.76

22

3.73

0.77

24

4.10

0.70

4.30
3.90

0.74
0.80

11
21

3.85
3.66

0.79
0.80

12
17

3.92

0.79

20

3.62

0.71

20

3.70

0.72

25

3.18

0.70

23

3.80

0.67

22

3.10

0.77

31

4.75

0.77

3.95

0.75

4.45

0.74

27

4.90

0.71

10

4.12

0.70

13

3.80

0.79

14

4.02
3.75

0.67
0.72

17
23

3.65
3.67

0.80
0.79

18
16

3.42

0.74

26

3.60

0.80

21s

Feedback is collected about the effectiveness

of every T&D programme from each
employee
5. Spiritual Training
Your organization participates in spiritual
trainings
Adequacy of continuing training
It enhances self confidence

It decreases tension /stress as compared any

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International Journal of Marketing & Human Resource Management

other form of training

* Based on 3-point scale (1= not important, 2=moderately important, 3= important)

** Based on 5-point scale (1=never, 2=rarely, 3=sometimes, 4=often, 5=very often)

In order to assess the relationship between some of the controls (or demographic
variables) and application of training & development practices, or in other words to be
able to test Hypothesis 2, one-way ANOVAS were performed. The results of this analysis
are summarised in table 4, which presents the corresponding F-values. The findings in
this table are informative. In column mean scores the average scores of the
corresponding control variables are reported. It is seen that all means are above 3 in the
5-level Likert scale.
The dimensions of hotel category and type of enterprise found to be statistically
significant on all training & development variables, except cross cultural training and
spiritual training for the type of enterprise dimension. Moreover, it is found that hotels
were using training and development practices when they were belonging in a large size.
On the contrary, the dimensions of age, size in capital and size in employees did
not produce statistically significant results with respect to the training & development
practices variables.
In the light of these results, regarding Hypothesis 2, we found that there is a positive
relationship between training & development practices variables and hotel category and
type of enterprise, and there is no relationship between training & development practices
variables and hotel age and size (capital or employees). In other words, if hotels are to
attract & retain talent employees and compete in hospitality marketplace, they should
preferably increase the application of training & development practices.
F-values from the one-way ANOVA on Training & Development practices
Control variables
Training & Development
Mean Categor
Age
Size in Size in Type of
practices
scores y of
capital emplo enterpris
hotels
yees
e
3.59
3.454** 2.123
2.589
3.518 2.431**
Induction training
3.32
3.100** 2.781
2.423
2.176 2.702**
On-the Job Training
4.19
3.749** 2.512
2.324
1.083 2.921**
Off-the Job Training
3.75
2.585
2.787
2.740
1.780 2.728**
Cross Cultural Training
3.68
2.360
2.296
0.538
1.730 2.350
Spiritual Training
Significance at level * p< (0,1),** p< (0,05),*** p<(0,01), **** p<(0,001),
Table 4

CONCLUSIONS AND RECOMMENDATIONS

The study contributed to the current knowledge in training & development practices in
Indian hotel industry. It has provided additional insights into areas relating to factors
influencing the adoption of best training & development practices. This research found
significant differences in the usage and importance of training & development practices
among the Indian hotels. The results indicates that there is a positive relationship between
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International Journal of Marketing & Human Resource Management

training & development practices variables and hotel category and type of enterprise,
however the results are somewhat different with regard to training & development
practices variables and hotel age and size (capital or employees).
In some cases this is leading to the development of a more integrated strategic approach
to the usage and importance of training & development. However, this research is only
indicative, much remains to be examined. The research has suggested that training &
development may play a more prominent role in the bundling of human resource
development practices than hitherto realised. These results, simply suggest the usage and
adoption of training & development practices that can be used for employee development
as a guiding principle in human resource development. The changes discovered in this
research appear to have come about from the usage & adoption of recognised training and
development practices in Indian hotels. Thus, it appears that, after years of relative
organizational marginality, training & development is now coming to play an
increasingly central role in the human resource development strategies of many Indian
hotel organisations.
Future research should consider incorporating other important items that have not been
considered or omitted from other studies and are likely to influence the adoption of
training & development practices in Indian hotels such as management support,
employees satisfaction and attitudes, quality of information perceived, training &
development needs, perceived benefits and problems in implementation and the crosscomparison.

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