Effects of human resource management practices on supply chain performance: evidence from Tanzanian Medium and Large Tourist Hotels

Effects of human resource management practices on supply chain performance: evidence from Tanzanian Medium and Large Tourist Hotels Gerald Bernard Magova PhD (Business Administration) University of Dar es Salaam, Business School, 2020 Supply chain performance in the hotel and tourism businesses is very important. It enables the provision of services properly and at the required speed, time and place. This is critical for ensuring customer satisfaction which has been a long cry of hotel customers and tourist in general. This study was designed to address supply chain performance from human resource management perspectives. The specific objectives of the study were to determine the managers’ perceptions of human resource management practices (participation, selective hiring, compensation, job security and teamwork) in their hotels and how they influence supply chain performance dimensions (supply chain responsiveness, supply chain flexibility and supply chain reliability). The study involved 228 hotel managers from medium and large tourist hotels in Unguja Island, Dar es Salaam, Arusha and Kilimanjaro. Data were analysed with the help of Statistical Package for Social Science and analysis of a Moment Structure for descriptive analysis and structural Equation Modeling respectively. Building on Resource-based view, Ability, Motivation and Opportunity to participate and Supply Chain Operation Reference Model, this study suggested that different human resources management practices implemented by organizations are associated with different ways manager and their employees contribute to the supply chain performance. The study proposed theoretical linkages between participation, selective hiring, compensation, job security, and teamwork practices and supply chain performance dimensions (supply chain responsiveness, flexibility and reliability). The study findings show that tourist hotels in Tanzania implement human resource management practices (participation, selective hiring, compensation and job security teamwork practices) to a lesser degree. The study found further that participation practices in the hotel sector had an insignificant positive relationship with supply chain responsiveness and supply chain flexibility but significant positive relationship with supply chain reliability. Similarly, the results demonstrated that selective hiring; compensation and job security practices had a significant positive relationship with supply chain responsiveness, flexibility and reliability. However, it was found that teamwork practices have no significant positive relationship with supply chain responsiveness, flexibility and reliability. The findings have implications for managers, academia and policymakers. The study urge managers to appreciate the importance of human resource management-supply chain management interface in their day to day activities. Academicians are urged to develop learning materials and impart skills to students on the link between human resource management and supply chain management interface. These are very important aspects in ensuring supply chain performance and customer satisfaction. Policymakers are urged to design and enforce appropriate policies, laws and regulations to govern the relationship between human resources management practices and supply chain performance to ensure that only qualified employees work in the hotel sector.