An Exploratory Study of Human Resource Management Practices and Business Strategy in Multi-Unit Restaurant Firms

Abstract

This paper provides exploratory evidence for the linkage among human resource management (HRM) practices, business strategy, and performance effectiveness. It proposes that high performing firms will have similar HRM practices, and that those firms whose HRM practices closely match its business strategy will have higher performance. Data were collected from 14 publicly-traded multi-unit restaurant firms. A case study approach was taken to provide an in-depth examination of each firm. The results indicated that restaurant firms do have similar HRM practices' emphasis. Some of those practices were found to support the firm's business strategy. Preliminary evidence suggests that the strategy a firm develops and implements for its restaurant managers will have a significant impact on the successful implementation of the firm's business strategy. An analysis of the qualitative data indicate that although the HRM executives are involved in the firms' strategic planning process, the current acute labor shortage and high turnover problems demand them to focus on administrative issues instead. This study addresses the critical need for empirical research that examines HRM practices in restaurant firms.

Keywords

Business strategy strategy typology human resource management practices performance effectiveness

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