Organizational DNA and human resource practices: Its implication towards hotel performance - Theory and Practice in Hospitality and Tourism Research - page 67

named them as an organizational DNA alignment
model. This alignment model helps the organiza-
tion to discern their DNA type by looking at the
organizational practices carefully and considering
the alignment of DNA types in order to develop
the organization in the most effective manner. In
this alignment model, the type of DNA is identi-
fied through core organizational practices like
leadership, management, and everyday cultural
and human resource practices. The alignment for
each of the practices and the tools/instruments
has been developed in determining the company's
organizational DNA. The understanding on the
organizational DNA types is critical to undertake
resolution of the organizational problems, as well
as in selecting the appropriate consultants and
other resources for organizational improvement.

performance measures may occur depending on
the strategy used, structure selected, and the rela-
tive competitive strength from which the firm
implements its strategy (Tse, 1991).
In the hotel industry, Haktanir and Harris (2005)
explored performance measurement practices in
the context of independent hotels. Six measure-
ments are: (1) business dynamics—concerned
with decision-making and information flow in the
departments of the hotel; (2) overall performance
measures—identified the performance measures
utilized by different departments in order to sum-
marize the performance of the whole establishment;
(3) employee performance measures—revealed the
important role of human resources in providing
rooms, food and beverage, and leisure services; (4)
customer satisfaction measures—reflected the sig-
nificance of understanding customer requirements
and developing systems accordingly; (5) financial
performance measures—identified the financial
performance that is measured and utilized at dif-
ferent levels of the business and the rationale for
utilizing such measures, and (6) innovative activ-
ity measures—identified the new activities, prod-
ucts and different ways of delivering service to
customers and the measurement of their outcome.
Bai (2001), Cho (2004) and Chand (2010) strongly
emphasized the impact of HRP on hotel perform-
ance as it helping organization to achieve its goal
fasters, to compete with competitor successfully,
and to survive in the long run in an unpredictable
business environment. There are two outcomes
implemented for organizational performance. The
first relates to an organization's behavioral per-
formance and the other relates to an organization's
financial performance.
Behavioral performance refers to the perform-
ance in job-related tasks and its measurement is
appropriate for situations in which performance
results are hard to measure and in which there is
a clear cause-effect connection between activities
and results (Botten & McManus, 1999). Dona-
van, Brown, and Mowen (2004) asserted that it is
important for the motivational well-being of the
service workers (e.g. satisfaction and commitment)
because their willingness to commit to the organi-
zation, satisfy with their job will improve the busi-
ness performance.
Bridoux (1997) views financial performance as
“profit in excess of the cost of capital, depends
upon the attractiveness of the industry in which
the firm operates (industry-effect on performance)
and the firm's competitive advantage.” Financial
performance indicators such as return on invest-
ment, total sales, profit before tax, net profit, and
total asset have been widely used as a method for
evaluating business performance and for compar-
ing a firm with others in an industry.

2.3 Human Resource Practice (HRP)
Due to the importance in helping organizations
to achieve its goal faster, to compete with com-
petitor effectively, and to survive in the long run
in an unpredictable today's business environment,
scholars have emphasized the impact of human
resource practice of organizational performance
(Chand, 2010; Tavitiyaman, 2009). A number of
researchers have attempted to measure the effect of
HR practices (HRP) on an organization's perform-
ance from its employees' satisfaction with its mar-
ket value (Bamberger & Meshoulam, 2000; Becker,
Huselid, Becker & Huselid, 1998).
Some have suggested several domains of human
resource managements (HRM) practices in terms
of influencing an organization's performance,
including the hotel industry (Ulrich & Lake, 1990).
In the hotel industry, Ulrich and Lake (1990) named
six domains for effective HRM which are staffed,
training and development, employee performance
appraisal, employee performance rewards, organi-
zation design and communication. HR practices
or functions include recruitment and selection,
training and development, performance manage-
ment and compensation management. When these
functions are integrated into a system, it is identi-
fied as an HR practices system.

2.4 Organizational performance
Organizational performance is the outcome of the
strategy that an organization implements. After
managers implement strategic management to
firms, managers must measure the organizational
effectiveness by measuring performance data
(Crook, Ketchen & Snow, 2003). Performance may
vary depending on whether it is the customers' or
stakeholders' viewpoints or during different time
periods (Tse, 1991). Important trade-offs between