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An investigation of the impact of internal labour markets in the hotel industry

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  • Leo Jago
  • Margaret Deery

Abstract

Maintaining a stable and competitive workforce is a key element of the role of management, and there has emerged a barrage of ‘recipes’ to achieve this. All too frequently, however, these new concepts replace the old, with little justification other than being innovative. This article investigates the concept of an internal labour market [ILM] as a strategic management tool. Past studies by labour market researchers have confirmed the value of the components of an ILM, yet none has investigated the concept of an ILM as a coherent whole. This paper investigates the impact of the components of an ILM -- training, promotional opportunity and job security -- on the key employee attitudes of job satisfaction, organisational commitment and employee intention to leave. It then examines the impact of this concept as a single variable on the employee attitudes. The study is conducted in the service industry, in particular, the hotel sector, and examines the responses of 297 non-supervisory hotel employees. The findings suggest that the use of a holistic ILM strategy could provide a new means for management to retain and develop a stable and satisfied workforce.

Suggested Citation

  • Leo Jago & Margaret Deery, 2004. "An investigation of the impact of internal labour markets in the hotel industry," The Service Industries Journal, Taylor & Francis Journals, vol. 24(2), pages 118-129, March.
    • Handle: RePEc:taf:servic:v:24:y:2004:i:2:p:118-129
    DOI: 10.1080/02642060412331301292
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    Cited by:

    1. Damian GRIMSHAW, 2009. "Can more inclusive wage-setting institutions improve low-wage work? Pay trends in the United Kingdom's public-sector hospitals," International Labour Review, International Labour Organization, vol. 148(4), pages 439-459, December.
    2. Maheshwari, Sunil Kumar & Bhat Ramesh & Dhiman Amit, 2007. "Implications of Human Resource Practices and Other Structural Factors on Commitment of Public Medical Professionals in India," IIMA Working Papers WP2007-08-04, Indian Institute of Management Ahmedabad, Research and Publication Department.
    3. Farha Naz Khan & Neeraj Sehrawat & Sumanjeet Singh, 2021. "The Impact of HR Practices on Perceived Gender Sensitivity and Gender Bias: A Multilevel Analysis of Hotel Industry," Jindal Journal of Business Research, , vol. 10(1), pages 90-106, June.
    4. Chand, Mohinder & Katou, Anastasia A., 2012. "Strategic determinants for the selection of partner alliances in the Indian tour operator industry: A cross-national study," Journal of World Business, Elsevier, vol. 47(2), pages 167-177.
    5. Sparvero, Emily & Chalip, Laurence, 2007. "Professional Teams as Leverageable Assets: Strategic Creation of Community Value," Sport Management Review, Elsevier, vol. 10(1), pages 1-30, May.

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