Human Resource Management Department is one that is significant in the management of a number of concerns related to the human capital development within an organization. In the paper ‘Hospitality HRM: past, present and the future’ current trends of HRM are discussed. Some HRM management practices involve outsourcing of this critical function. Others have delegated HRM handling to line managers, completely negating the need for a HR department. In this context, the trends of casualization (as opposed to specialization) of the workforce and its impact on the service quality, labour turnover and customer contact begs investigation. This literature review will investigate staff casualization trends of HRM in Hospitality Industry in current times, as opposed to trends in the past and will evaluate the impact the trends have had in the past, the present and in the future.
Outsourcing is defined as the process where a business will make use of external vendors to carry out a part of its work functions. Raiborn et al, (2009) state that traditional internal functions such as HRM and accounting are being outsourced by companies. Most Australian Hotels are now focused on cost controlling and HRM management is not an exception to this cost control initiative. In the early 2000’s as Knox & Walsh (2005) the trend of using external employment agencies to hire workers for the hotels was already a trend. Hotel managers preferred this, as it was easier to contain cost and also it was easier to dismiss them when needed. Greater flexibility was given to the hotel management with the employees, and with the exception of luxury hotels, others started following this trend. This trend as reported by Davidson & Wang (2011) was in a way the precursor to outsourcing.