The effects of Human Resource Management Practices on Supply Chain Flexibility Evidence from Tourist Hotels in Tanzania

Abstract

This paper examined the effects of Human Resources Management practices on supply chain flexibility. Specifically paper determined the relationships between participation practices, selective hiring practices, compensation practices, job security practices and teamwork practices on supply chain flexibility of tourist hotels in Tanzania. The study adopted cross-sectional survey approach, where 228 respondents were involved in the study. Hypotheses linking Human Resources Management practices and supply chain flexibility were developed and tested using structural equation modeling (SEM) technique. The findings indicated that selective hiring practices, job security practices and teamwork practices have significant positive relationship with supply chain flexibility. The findings imply that employees with appropriate skills, knowledge, abilities and cultural fit, who are highly motivated through job security and compensation practices are important in ensuring supply chain flexibility in hotel settings. Therefore, policy makers, directors and managers in the hotel industry are urged to manipulate human resources management practices as strategies to increase supply chain flexibility as strategic measures to satisfy customers and win their loyalty. However, despite its importance, the study suffers from several limitations such as only five Human Resources Management practices were considered, use of cross-sectional survey strategy and self-reported data from hotel managers. The study calls future studies to examine Human Resources Management practices in relation to supply chain flexibility in other service industries such as banks, schools, etc to compare the results. Again future studies can use other Human Resources Management practices to bring more insight on the Human Resources Management /Supply Chain Management interface.