Implementation

of Strategic Human
Resource
Management on Improving Employee Retention within
The
Leisure
Industry.

CHAPTER ONE: INTRODUCTION

1.1 BACKGROUND OF THE STUDY
Strategic Human Resource Management is an important
component of any business and management.
Organization who operate in turbulent environment are
an open system, which can be conceived as complex
networks of relationships between managers and
workers of different levels between and within the team
(Wetland, 20031)
Managers and organization face real challenges in
recruiting, developing and maintaining a motivated,
committed and competent workforce in leisure industry
for offering high-quality product to the increasingly
discerning customer. This research shall make an
attempt to find how Strategic HRM can improve
employee retention within an organization in leisure
industry. This work also include the emergence of
Strategic Human Resource Management and how it
differentiates from traditional personal management
which is extensively used in an organization.

1 Wetland, D. (2003). The strategic training of employees model: balancing

organisational constraints and training content. S.A.M Advanced Management
Journal, 68

1.2 STATEMENT OF THE PROBLEM

Human resource is undoubtedly the backbone of
organization all over the world and the most important
resource. It helps to ensure that organization achieve
competitive advantage and also provide innovative
solutions if it is strategically placed. Many industry
including leisure industry today finds it difficult to
retain their valued employees because of increasing
globalization (Yamamoto, 20112).
Leisure industry is growing but the employee turnover
continues to be a problem within the industry. Industry
leaders in leisure industry report motivating, retaining,
recruiting and developing the workforce as human
capital challenges which keep them awake at night (Enz,
20013). The service firm in leisure industry rely on
employees to create memorable experience in order to
develop a loyal customer base which ultimately carry
the firms strategic initiatives. Hence, the decision
maker face twofold challenge in strategic human
2 Yamamoto, H. (2011). The relationship between employee benefit management
and employee retention. The International Journal of Human Resource
Management. 1-15, iFirst ISSN 0958-5192 print/ISSN 1466-4399 online.
3 http://scholarship.sha.cornell.edu/cgi/viewcontent.cgi?
article=1244&context=articles

resource management. First one is the value associated

with organizations human capital and second is the
decision to manage the associated investments. The
employee behavior is difficult to observe, predict and
measure, hence they need to be strategically managed.
This study thus investigates the implementation of
strategic human resource management on improving
employee retention problem in leisure industry.
1.3 RESEARCH AIM AND OBJECTIVES
The major aim of this study to understand the role of
strategic HRM on improving employee retention in
leisure industry.
Following objectives were recognized for supporting the
aim of this study to build up the research study.
1. To analyze the approach of strategic human resource
management
2. To investigate the effect of strategic HRM on
employee retention.
3. To establish the relationship between strategic
planning and employee retention.

1.4 RESEARCH QUESTION

1. What are the strategic Human Resource Management
approach in the leisure industry?
2. How career management practice effect the retention
of employee?
3. What are relationship between HRM and employee
retention in leisure industry?
1.5 SIGNIFICANCE OF THE STUDY
This research provide workable solution to real issue
within almost all the organization especially in leisure
industry employee retention. This study benefits key
stakeholder generally the organization related to leisure
industry. The HR managers of these industry may find
the result of this research work quite valuable since it
provide and explain comprehensive HRM practices
which affects the employee retention process. Further
this study might also help to shape Human Resource
policies of the leisure industry.

1.6 RATIONALE OF THE RESEARCH

Many researches have been conducted in the past regarding
the role of strategic HRM in various industry like
multinational organization, banking industry, government
agencies etc, however its impact on the retention of
employee in Leisure industry is discussed by few
researchers. Hence, this research is based on role of strategic
management on improving the retention of employee in
leisure industry.

CHAPTER TWO: LITERATURE REVIEW

3.1 INTRODUCTION
The implementation of the system which an
organization adopt and through the development
and implementation of high performance culture
can lead to the sustained high performance. In
todays globalized world, organization must
consider HRM which can create values to the
business. This chapter focus on strategic human
resource practice which have major contribution in
employee retention. The various literature
concerning the strategic human resource
management practice and their impact on employee
retention are critically analyzed.
3.2 THEORITICAL FRAMEWORK
The foundation where the entire project is based
and where the major concepts and theories exists on
tackling the problem are explained is theoretical
framework (Mathooko, 20074).
4 Mathooko.J and Mathooko, P (2011) Academic proposal writing 2 nd edition. Nairobi:
Global research Akademik & mentoring Services.

3.2.1 Universal or best practice school

Strategic management consists of single set of
HR practices and policies which is suitable for
the organization in various circumstance. This
model take different forms which says that there
is consensus on the correct bundle of HR policies
and practice. It is due to this reason that it is
difficult to demonstrate the link between best
HRM practice and employee retention.
Organization who operate in more than one
country should decide whether organizational
HRM practice and policies should be coherent in
all its operation (Storcy, 20095). Samuel (20096)
argues that it is advantageous to adopt best
practice because application of these practice
appear to promise high return regardless of the
location of subsidiary.

5 Storcy, J., 7 Sissim, K. (2000). The realities of human resources management. Milton
Keynes: open university press.

6 Samuel, O., & Chipunta, C. (2009). Employee retention and turnover; using
motivational variables as a panacea. African Journal of Business Management, 3
(8), 39-43.

3.2.2 Contingency or best-fit school theory

Porter (20087) said that an organization need to
decide the relevant and particular strategic and
operational requirements. Organization internal
as well as external environment influence HR
choices where knowledge of the HRM
professionals should be considered to make any
strategic definition (Boxall, 20038). The
economic factor that influence management
choice in human resource strategy include nature
of the firm and stage in the industry life cycle,
choice of competitive strategy and general
economic conditions (Purcell, 20039).
Balancing external and internal environments
may create tension because especially in the
competitive labor markets organization seek to
meet the objectives and need to combine

7 Porter; M.E. (2008). On Competition, updated and expanded edition. Boston:

Harvard business school publishing
8 Boxall, P., & Purcell, J. (2003). Strategy and Human Resource Management.
London: MacMillan
9 Purcell, J., And Swart, J (2003) People and performance: how people
management impacts on organizational performance, London : CIPD,

organizational and employee needs (Brown &

Benson, 200510).
But, Purcell (200311) contend that this theory
lacks determinism and sophistication in its
description of generic competitive strategies.
According to Wilkinson (200112) this theory lack
emphasis on the internal context of individual
business within the same sector.

3.3 CONCEPTUAL FRAMEWORK

The interconnection among the different variables
and the description of such variables which address
the issue of why or how we expect relationship to
exist is described by conceptual framework
(Mathooko, 201113). The independent variable in
10 Brown, M., & Benson, J. (2005). Managing to Overload? Group & Organisation
Management, 30(1), 99-124.
11 Purcell, J., And Swart, J (2003) People and performance: how people
management impacts on organizational performance, London : CIPD,
12 Wilkinson, A., (2001) Contemporary Human Resource Management; Harlow,
FT/prentice hall.
13 Mathooko.J and Mathooko, P (2011) Academic proposal writing 2 nd edition.
Nairobi: Global research Akademik & mentoring Services.

this research are strategic HRM technique like

strategic
training,
strategic
performance
management and dependent variable is employee
retention.

Strategic HRM
pracitce
(Strategic training,
Strategic performance
management)

Independent Variable

Employee retention

Dependent Variable

Fig: Conceptual Framework

CHAPTER THREE: RESEARCH METHODOLY

3.1 INTRODUCTION
This chapter describes the research methodology
used in this chapter. The systematic approach for
the application of certain procedure by using
different tools and technique is called Research
Methodology (Walliman, 201514).
3.2 RESEARCH PHILOSOPHY
14 Walliman, N. (2015) Research Methods: The Basics. Routledge.

The way of collecting data is called research

philosophy (Bryman, 201515). There are two types
of Research philosophy in research study, they are
Positivism research philosophy and Interpretivism
research
philosophy.
Positivism
research
philosophy is used to describe the objective view
point and interpretivism philosophy is used to
describe the subjective nature of the subject.
This research study uses positivism philosophy
because this work need factual data on the subject
matter. This philosophy provides quantifiable
finding for the role of strategic HRM on employee
retention in leisure industry. Because of the
objective nature of the study this research use
positivism philosophy.
3.3 RESEARCH APPROACH
The type of data required and the process of data
collection is influenced by the research approach
(Bryman, 201516). Inductive approach is used to
create new theory whereas deductive approach is
used to prove hypothesis right or wrong.
15 Bryman, A. & Bell, E. (2015) Business Research Methods. 4th editio. OUP Oxford.
16 Bryman, A. (2015a) Business Research Methods. 3rd editio. OUP Oxford

Deductive approach is used in this study to analyze

the implementation of strategic HRM on employee
retention in leisure industry. Since, this research
work is interested in doing quantitative analysis on
the implementation of strategic HRM, deductive
approach is useful.
3.4 RESEARCH DESIGN
It is an overall strategy used to integrate several
components of research study. It is based upon a
type of study, data collection methods, research
question and design of variables. This research use
descriptive design to evaluate the answer regarding
the desired research questions.
3.5 DATA COLLECTION
This research study uses both primary and
secondary source of data which are two different
sources of data collection used in research. Primary
data is collected by using survey method. The
survey is conducted among 25 management and
employees of Virgin Active and 20 employees and
management of Total fitness. Survey questionnaire
is designed to fulfill the aim and objectives of the

study and send to the respondents through emails.

Secondary data is collected through publication,
websites and journals relating to the strategic HRM
practice on employee retention.
3.6 POPULATION AND SAMPLING
It was not possible to collect information from each
employee of Virgin active and Total fitness because
of limitation and budget and time. Hence, only a
certain portion referred as sample population are
selected by using simple random sampling
technique. Total of 45 employees were selected in
which 25 from Virgin active and 20 from Total
fitness are selected as respondents.
3.7 RESEARCH ETHICS
Research ethics need to be followed to guide the
researcher in a correct direction. The permission is
acquired from the management of Total active and
Virgin fitness is acquired to conduct this research.
The data collected is safely kept in identities of
various employees working in the leisure industry.

3.8 VALIDITY AND FINDINGS

Validity and finding of the research is important to
ensure the finding of the research work free from
bias and error (Walliman, 201517). The source of
evidence such as pat literature and survey are used
to ensure the validity of the research. The reliability
and validity of the data are hence meticulously
ensured.

17

Walliman, N. (2015) Research Methods: The Basics. Routledge.