The purpose of this paper is to establish a new model of managing human resources in the service industry. The authors aim to raise awareness of the failing effects of human resource management (HRM) so far and indicate possible solutions to long-lasting labour issues.
The authors aim to outgrow the current personnel management concepts by approaching the employment management problem requisitely holistically. By combining the concepts of systems thinking, requisite well-being and social responsibility, the authors aim to introduce a new model for managing human resources. An analysis of the relevant HRM models and a perusal of identified issues concerning labour enabled the development of the new HRM model.
Under-investment in human capital in service industries has resulted in high staff turnover and negative attitudes towards service occupations. Recognition of the need for an improved approach to human resources management brings about substantial changes in the strategic management both on the industry- and the organizational levels.
Research is theoretical with indirect empirical impact. The proposed model will meet the requirements of systems thinking principles as well as socially responsible corporate behaviour.
Improved understanding that human talent and their well-being should be in the centre of business strategies.
The value of the paper is in the raised awareness of the need for more innovative and flexible labour market policies. The proposed model is in accordance with the formal corporate pledge to act socially responsible and can be applied in tourism and hospitality organizations.
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