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The Valuation of Skill and the Configuration of HRM

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  • Michael Riley
  • Edith Szivas

Abstract

This paper looks at the way skills and knowledge are valued by management in tourism and hospitality firms and at how that valuation is reflected in the configuration of human resources management (HRM) and the structure of labour markets. Based on a resource view of the firm and using the concepts of human resource architecture, it is argued that tourism and hospitality are not just examples of the internal spot-market mode in which acquisition dominates employment strategy, but rather constitute a special case in which the nature of labour productivity intervenes. The authors argue that labour is, in the main, separated from quantitative concepts of productivity and adds value only in qualitative terms. This sets up a dichotomy for human resource strategy between economic imperatives and the desire for quality. The resolution of that dichotomy, it is argued, is aggravated by the way individuals value their human capital, which has the effect of segmenting a general unskilled labour market and creating rigid occupational identities. This is the background against which modern ideas of HRM, such as employment flexibility, have to contend.

Suggested Citation

  • Michael Riley & Edith Szivas, 2009. "The Valuation of Skill and the Configuration of HRM," Tourism Economics, , vol. 15(1), pages 105-120, March.
    • Handle: RePEc:sae:toueco:v:15:y:2009:i:1:p:105-120
    DOI: 10.5367/000000009787536771
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    References listed on IDEAS

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    1. Deborah LEVISON & Joseph A. RITTER & Rosamund STOCK & Richard ANKER, 2002. "Distribution of income and job opportunities: Normative judgements from four continents," International Labour Review, International Labour Organization, vol. 141(4), pages 385-411, December.
    2. Wiji Arulampalam & Alison L. Booth, 1998. "Training and Labour Market Flexibility: Is There a Trade-off?," British Journal of Industrial Relations, London School of Economics, vol. 36(4), pages 521-536, December.
    3. Cully, M, 2002. "The cleaner, the waiter, the computer operator: Job change, 1986-2001," Australian Bulletin of Labour, National Institute of Labour Studies, vol. 28(3), pages 141-162.
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    2. Tchai Tavor & Limor Dina Gonen & Uriel Spiegel, 2022. "The Double-Peaked Shape of the Laffer Curve in the Case of the Inverted S-Shaped Labor Supply Curve," Mathematics, MDPI, vol. 10(6), pages 1-19, March.
    3. Jeroen Klijs & Jack Peerlings & Wim Heijman, 2017. "Introducing labour productivity changes into models used for economic impact analysis in tourism," Tourism Economics, , vol. 23(3), pages 561-576, May.
    4. Fikru Kefyalew Alemayehu & Sigbjørn Landazuri Tveteraas, 2020. "Long-run labour flexibility in hospitality: A dynamic common correlated effects approach," Tourism Economics, , vol. 26(4), pages 704-718, June.

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