Hospitality and Tourism Education and Training

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Hospitality and Tourism Education and Training

A Case Study of Scotland.

Geno Trapaidze

The Department of Hospitality and Tourism Management

University of Strathclyde

A thesis submitted in part of the requirements for the degree of

 MSc in International Hospitality Management

September, 2007.

ABSTRACT

The purpose of this study is to examine the role of education and training and its impact on labour supply to the Scotland hospitality and tourism industry; what are the current issues are there? And how those issues can be minimised? Its also seeks to identify the relation between the customer satisfaction and the service employees via service quality for maintain the growth of the hospitality and tourism industry. It also tries to identify the current labour market issues of the hospitality and tourism sector in Scotland, and how these issues can be minimised. Research will be conducted through five individual interviews. This research should help the hospitality and tourism managers/employers understand the importance of retaining staff. Also it will aim to make educational institutions aware of the gap between the content and the design of their hospitality and tourism courses/degree programmes in relation to industry demand, as highlighted in relation to current labour market issues such as staff turnover rate, retention problems, and the image of the hospitality and tourism industry in Scotland.

Key words: Service quality, staff turnover, poor image, education and training.  

 

ACKNOWLEDGEMENT

Firstly, I would like to thank my supervisor Professor Tom Baum for his continuous interests, efficient guidance, and constant encouragement throughout the preparation of this dissertation.

I would like to express my appreciation to the respondents who gave me their valuable time for interviews. Without their help the research would not have been completed.

Finally, I would like to dedicate this research paper to my family. Their unconditional love, support, and care have always been there.

Table of Contents

Abstract…………………………………………………………………………...i

Acknowledgement…………………………………………………………...…...ii

Table of Content…………………………………………………………...…….iii

Chapter One Introduction…………………………………………………...….1

  1. Dissertation outline………………………………………………...…..2

Chapter Two Literature review………………………………………………....5

2.1 Service quality, Consumer attitude and consumer satisfaction…….……..5

2.2 Human Resource management and Development…………..……………..9

2.3 Complexity of Service………………………………………………………15

2.4 Hospitality and tourism education and training………..………...………18

Chapter Three An Overview of Scotland………………………………...…...25

3.1 Geography and Demography………………………………………………25

3.2 Tourism in Scotland………………………………………………………...25

3.3 Scotland Tourism Employment……………………………………………29

3.4 Education of Scotland………………………………………...……….……31

3.5 Educational Institutions, Administration, Management………….……...32

     3.5.1 Pre-School and School education………………………………..……32

     3.5.2 Pre-School Education……………………………………...……..…....32

     3.5.3 Primary Education……………………………………...……………..33

     3.5.4 Secondary Education..............................................................................33

     3.5.5Tertiary level education……………….……………………………......34

     3.5.6 Vocational training and further education....…………………..…….34

     3.5.7 Universities and Higher Education………………..…………………..35

3.6 Current situation of Hospitality and -

-Tourism education and training of Scotland……………………………….... 35

Chapter Four Methodology……………………………………………………..38

4.1 Research method……………………………………………………………..38

4.2 Qualitative Vs Quantitative research method…………………………….39

      4.2.1 Quantitative research method….……………………………………39

      4.2.2 Qualitative research method…………………………………………39

4.3 Case Study as a research method…………………………………………..40

4.4 Questionnaire Vs Interview…………………………………………………41

      4.4.1 Questionnaire…………………………………………………………..41

      4.4.2 Interview…………………………………………………………….….41

4.5 Limitation…………………………………………………………………….44

Chapter Five Findings and Analysis……………………………………………46

5.1 Findings……………………………………………………………………….46

      5.1.1 Service Quality…………………………………………………………46

      5.1.2 Present issues of labour market……………………………………….49

      5.1.3 Role of education and training………………………………………...51

5.2 Analysis……………………………………………………………………….55

Chapter Six Conclusion and recommendation…………………………………57

Bibliography…………………………………………………………………..….58

Appendix………………………………………………………………………….71

Illustration

Structure of the dissertation……………………………………………………..4

Table 1: Forecast of Arrivals of Scotland: 2005-2025…………………………27

Table 2: Forecast of Expenditure in Scotland: 2005-2025…………………….28

Table 3: Employment in Scotland 2005………………………………………...30

Table 4: Tourism- related Employment 2004-2005……………………………30

Model: Relation to service quality & satisfaction…………………………..…56

CHAPTER ONE

Introduction

Tourism is one of the main economic activities at a global level. Tourism has grown at a rapid rate in the last five decades. Since World War Two, tourism has become one of the most important social economic activities, especially for those countries with less developed, modern, service-industry based economies (Dritsakis, 2004). According to the World Tourism and Travel Council, global spending on travel and tourism exceeded US$6trillion in 2005. The report also shows a 5.7% growth in tourism from 2004 to 2005. According to UNWTO in 2005 international tourists arrival worldwide exceeded 800 million compared to only 40 million in 1950 ().

So many countries seek to develop tourism for its various economic and social benefits such as income, foreign currency earnings, cross cultural exchange and employment (Dritsakis, 2004). Scotland is no exception. The tourism industry is of significant economic importance to Scotland. In 2004, over 21 million overseas and domestic tourists visited Scotland bringing about £4.5 billion to the economy, accounting for 5 percent of national gross domestic product. Tourism ranked as the country’s fourth-largest employer, accounting for 8 percent of the Scottish total employment (Scottish Executive, 2004). Yet the tourism industry faces the persistent challenge of recruiting and retaining a skilled labour force. Labour turnover is nearly double that of other industries and the skills gaps among tourism staff, skill shortages in particularly managerial/supervisory staff, are greater than in any other industry.(Martin, Mactaggart, and Bowden, 2006). Mullins (2001) suggests that a high level of labour turnover is problematic for all organisations. Rowley (1998) highlights the importance of human resources by pointing out that business success stems from human resources and their management, including development. This understanding helps to set the aim of this research to investigate the key issues on the labour market of Scotland’s hospitality and tourism industry, and how these issues can be minimised. Also this research paper will examine the role of educational institutions in seeking to supply skilled people to the Scottish hospitality and tourism industry. Through this, paper will explore how services employees create quality service to make customer satisfy for maintain the growth of the industry.

1.1 Dissertation outline

The dissertation is broken down into six chapters.

Chapter one

This chapter seeks to highlights the structure and contents of the dissertation, as well as introducing the objectives and the approaches of this research paper. This paper sets out to investigate issues in the current labour market in the Scotland and how these issues can be minimised to maintain the growth of the industry via service quality.

Chapter Two

This chapter of this research paper will be a review of the literature and the theory related to the topic. This literature is drawn from a wide range of sources that explore:

1) The characteristics of service to link with service quality; and their impact on customer satisfaction.

2) Importance of the service employees and their development to maintain service quality.

3) Importance of hospitality and tourism education and training to maintain service quality to achieve customer satisfaction.

Chapter Three

This chapter will provide an overview of information on Scotland; such as geographic and demographic information, current hospitality and tourism trends, and the current employment situation in Scotland.

Chapter Four

This chapter examines the methodology and the techniques adopted to achieve the research goal.

Chapter Five

This chapter will analysis the research findings. The primary data was collected through interviews. Five individual experts in the related subject area were interviewed to collect the primary data in order to find out the current skills situation in Scotland.

Chapter Six

This is a conclusion chapter; this chapter concludes with a summery of the findings and is based on primary, secondary and the tertiary data. Recommendations are made.

   

Structure of the dissertation is given below:    

CHAPTER TWO

Literature Review

2.1 Service quality, Consumer attitude and consumer satisfaction

Customer orientation lies at the heart of the marketing concept (Bateson and Hoffman, 1999). The purpose of a business is to create and maintain satisfied and profitable customers (Levitt, 1986). Customers are attracted and retained when their needs are met. So businesses are required to understand the customers and to build the organisation around them. This requirement is particularly important for service, which in many instances still tends to be operations dominated rather than customer oriented (Bateson and Hoffman, 2006). Customer satisfaction depends on a product’s perceived performance in delivering value relative to a buyer’s expectations. If the product’s performance falls short of the customer’s expectation, the buyer is dissatisfied. If performance matches expectation the buyer is satisfied. Thus, customer delight creates an emotional tie to a product or service, not just a rational preference and this creates high customer loyalty. Satisfied customers make repeat purchases, are less sensitive, and talk favourably to others about the company and its products. So businesses need to realize the importance of creating satisfied customers. (Kotler, 2003).and this is possible when business know much about customers and their attitudes. Such as, how they make decisions, how they choose among alternatives and how they evaluate these service once they are received. Customer attitudes are important because they reflect what consumers think and feel. They also can be used to explain what consumers intend to do. This understanding helps to describe how consumers make choices. This involves a consumer’s overall, enduring evaluation of a concept or object, such as a person, a brand, a service (Arnould, Price and Zinkhan, 2002). Customer attitudes can be different from customer to customer. These attitudes normally differ by customers’ age, group, gender, family structure, social class and income, race and ethnicity and culture. People have attitudes about almost everything- religion, politics, clothes, music and food. An attitude describes a person’s relatively consistent evaluation, feelings and tendencies toward an object or an idea. Attitudes put people into a frame of mind for liking or disliking things and moving towards or away from them (Kotler, 2003). A regular customer of a restaurant who receives a bad meal may begin to believe the food quality of that particular restaurant is decreasing. If that customer again receives a bad meal so then a negative belief may be permanently fixed and they will stop purchasing from that restaurant. So it is important for the business to develop the customer beliefs or attitudes toward the product or service of the business.

 Allport (1997) says the concept of attitude helps to explain the consistency of a person, since a single attitude may underline many different actions. Psychologists define attitude as the relatively enduring orientations that individuals develop towards the various objects and issues they encounter during their lives (Fontana, 1981). An attitude is not fleeting; it is an orientation that lasts over time. An attitude is general in that it summarizes evaluations over a wide range of situations. Attitudes are product of information acquisition. That is attitudes are learned beliefs, feelings, and reaction tendencies. Beliefs are thoughts, linking an object to some feature or characteristic (Sternthal and Craig, 1982). Actually attitudes help consumers to make choices whether minor or important, such as consumers have attitudes towards a restaurant and attitudes towards a university. A consumer’s overall evaluation of a product sometimes accounts for the bulk of his or her attitudes toward it. When a business or manager wants to assess attitudes of a customer, it can often be sufficient for them to simply ask the customer “How do you feel about the Carlsberg?” By doing this a business or manager can understand the customer’s needs and feelings toward the product or service. So, based on that, they can deliver the product or service to the customer for meet their requirements to make them satisfied.

Satisfaction can be defined as “A judgement that a product, or service feature, or the product or service itself, provides a pleasurable level of consumption- related fulfilment, including levels of under or over fulfilment” (Oliver, 1997). Customer satisfaction has been noted as a major element needed to create and sustain a competitive business (Ueltschy, Laroche, Tamila, & Yannopoulos, 2002). Customers will be satisfied if the services they receive are at least as good as they were supposed to be, ‘‘a consumer is considered satisfied when his weighted sum total of experiences shows a feeling of gratification when compared with his expectations. On the other hand, a consumer is considered dissatisfied when his actual experience shows a feeling of displeasure when compared with his expectation’’ (Choi & Chu, 2001). So there is a need to provide the quality of product or service to the customer, to meet their expectations. This is because service quality leads to customer satisfaction. Service quality offers a way of achieving success among competing services and service quality differentiation can generate increased market share and ultimately mean the difference between financial success and failure. Ample evidence suggests that the provision of quality can retain the customer. Repeat customers yield many benefits to the service organization. The cost of marketing to them is lower than that of marketing to new customers. (Bateson and Hoffman, 2006). Also regular customers are familiar with the script so the level of risk for them is reduced. The true quality is said to be evaluated by the customer during and after the service encounter. Customers will tend to compare their pre-service expectation with the perceived or actual performance. Differences between expected and perceived performance will have an influence on the customers’ perception of the organisation- either positive or negative. This appears to be the main theoretical underpinning of the service quality model (Gronoos, 1983).

The importance of service quality in service organizations has been proven as a critical determinant of competitiveness (Lewis, 1989). However, despite the increasing importance of the service industry and quality service as a critical success factor, service quality concepts are not well developed within the service sector. In the context of this review, it was found that the service sector is still behind the manufacturing sector in terms of embracing philosophies such as Total Quality management (TQM) (Wilkinson, et al 1991).Dale and Cooper (1992) describes Total Quality Management (TQM) as the involvement of every member of the organisation co-operating to furnish products and services that meet their customers’ needs and expectations. Linking to this, Wilkinson and Witcher (1991) further state quality in service organisation goes beyond the mere application of quality management into the whole organisation. Quality becomes the way of life that inspires every part of the organisation.

   

2.2 Human Resource Management and Development

Customer expectations for quality are increasing, presenting the industry with a double-edged sword; at the same time that qualified labour is becoming harder to find and keep, customers are demanding increasingly high levels of service excellence (Hughes 2002; D’Annunzio-Green et al, 2002). Linking this issue with seasonality, a common characteristic of tourism enterprise, Baum and Hagan (1999) discuss that the lack of sustained employment, which is characteristic of seasonal operations, undermines the ability of operators to deliver quality, which the marketplace, increasingly, expects.

Wiley (1990) has included customer satisfaction as a correlate of employee attitude and performance, stressing the importance of quality service to organisational achievements.

The behaviour and skills of the ‘service employees’ are a most crucial part of the customers’ evaluation of the quality. The behaviour of service providers could directly influence the customers’ judgement of the nature of the service (Goodwin and Ross, 1990). Service quality has since emerged as an irrepressible, globally pervasive strategic fact. Firms that are being able to produce and maintain quality in their services are more likely to gain competitive advantage. However, quality service is not easy to achieve, because not everyone can perform well during the service delivery (Powel, 1995). Consistency of quality service is difficult to ensure due to the variability of the human element. Kamdampully(1997) spells out the directions of this variability and the centre stage part played by employees in quality service:

- The quality of service performance varies from one service organization to another.

- The quality of service performance varies from one service performance to another.

- The quality of service performance varies for the same performer from one occasion to another.

This internal logic is already becoming clear: capable workers who are well trained and fairly compensated provide better service, need less supervision and are much more likely to stay on the job. As a result their customers are likely to be more satisfied, return more often and perhaps purchase more than they otherwise would (Schlesinger and Hesket, 1991). Berry et al (1989) suggest that, in an organisation that has the culture of providing quality service, they could motivate their employees through challenging them to perform to their potential and give rewards for what they do. In today’s competitive marketplace, organisational effectiveness depends on understanding customer’s values and communicating this understanding to employees in the form of employee-performance goals and expectations (Heskett et al, 1994).

The smaller the labour market from which an organisation has to generate a pool of potential employees, the more challenging the staffing function. Frequently, tourism businesses are located in remote or peripheral areas and can be particularly challenged to attract a quality workforce. The unemployment rate can also dramatically affect the availability of labour. Within developed countries, expanding economies have resulted in a significant reduction in the number of people seeking jobs in the tourism industry. (Hughes 2002; D’Annunzio-Green et al, 2002).  Demographic trends are also important, typically young people (under 24) dominate the hotel workforce, choosing this type of work for reasons of ease of entry, travel, opportunities, variety and friendliness (Timo and Davidson, 1990). Riley and Szivas (2003) describe tourism as a sector ‘‘where easily acquired, transferable skills co-exist and engender weak internal labour markets in organisations that economically are bound to a rate of throughput.’’ Riley (1996) points to the features of employment in these conditions in terms of recruitment, training and professional status and, unsurprisingly, notes that many areas of tourism work typify weak internal labour market characteristics.(Baum, 2007). So there are pressures to accept unskilled employees, which can be reduce the service quality to the customer.

For many hospitality and tourism operators, expansion opportunities in local, domestic markets have recently been limited by intense competition. At the same time, there are attractive and often lucrative opportunities for business growth in foreign markets (Go and Pine, 1996). Expanding international travel, technologies advances and the emergence of seamless organizations have further fuelled the rapid expansion of hospitality and tourism organizations (Kriegl, 2000). The global economy and globalization has become a fundamental part – even a priority- of business operations for many hospitality and tourism organizations, irrespective of the size. The challenges for organizations operating in international markets present something of a new frontier in term of employee issues (Luthans et al, 1997).

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Historically, one of the biggest challenges facing the industry is human resource management (Olsen et al, 1990). Human resource management will continue to be one of the challenges faced by managers throughout the foreseeable future (Berman, 2004). The challenge to find and nurture employees in a tightening labour market is especially important in the hospitality industry. Even though, in today’s environment where technological advancements have revolutionized the concept of hospitality services, it is impossible to offer superior guest experiences to customers without well-trained and knowledgeable employees (MacVicar and Rodger, 1996). Pringle and Kroll (1997) state that intangible knowledge based ...

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