Business strategy and approaches to HRM ‐ A case study of new developments in the United Kingdom restaurant industry
| DOI | https://doi.org/10.1108/00483480110393303 |
| Published date | 01 August 2001 |
| Pages | 421-437 |
| Date | 01 August 2001 |
| Author | Clare Kelliher,Gilly Perrett |
| Subject Matter | HR & organizational behaviour |
Business strategy
and approaches
to HRM
421
Personnel Review,
Vol. 30 No. 4, 2001, pp. 421-437.
#MCB University Press, 0048-3486
Received September
1999
Revised August 2000
Accepted August 2000
Business strategy and
approaches to HRM
A case study of new developments in the
United Kingdom restaurant industry
Clare Kelliher
University of Surrey, Guildford, Surrey, UK, and
Gilly Perrett
Thames Valley University, Ealing, London, UK
Keywords Business strategy, Human resource management, Restaurants, United Kingdom
Abstract Considers the relationship between business strategy and approaches to HRM. Theory
suggests that certain approaches to HRM align more appropriately with different business
strategies. Hence a new approach to business might suggest the need for a new approach to
managing HR. Examines this relationship in more depth in the context of a new market
development within the UK restaurant industry, the emergence of the so-called ``Designer
restaurants''. Reports the findings on the conduct of HRM from a case study of three designer
restaurants. Whilst some evidence of a move away from traditional (for the restaurant industry)
approaches to HRM is presented, the findings do not indicate a clear relationship between
business strategy and the approach to HRM. Discusses the implications for our understanding of
the relationship.
Introduction
This paper is concerned with the relationship between business strategy and
approaches to human resource management (HRM). There has been much
debate in the literature about the nature of this relationship. A number of
authors have attempted to match appropriate human resource (HR) practices to
different business strategies (see for example, Miles and Snow, 1984; Schuler
and Jackson, 1987; Schuler, 1989). The notion of a ``best fit' between business
strategy and HRM implies that a change in business strategy may require a
change in approach to HRM in order to maintain the ``fit''. This paper attempts
to examine the relationship between business strategy and HRM further, in the
context of a new approach to business in the UK restaurant industry, the
emergence of so-called ``designer restaurants''.
In the UK, the restaurant industry has traditionally been seen as a poor
employer. Work in the commercial sectors of the hospitality industry has been
characterised by long hours, low pay and arbitrary supervision (for an
overview see Lucas, 1995; Wood, 1992). A number of studies have examined
approaches to managing HR in the hospitality industry. These studies, in the
main, indicate a rather unsophisticated approach to the management of human
resources and one that does not generally reflect established notions of ``good
practice'' (Kelliher and Johnson, 1987, 1997; Price, 1994). The aim of this workis
to examine the extent to which a new approach to business in the restaurant
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Personnel
Review
30,4
422
industry brings about a new approach to HRM, as implied by contingency
models (Miles and Snow, 1984; Schuler, 1989). The first section of the paper
gives a brief description of these new style restaurants. Second, an overview of
the literature which examines HRM and the relationship between approaches to
business and to HRM is presented. Third, findings are presented from a case
study of HR practice in a group of three ``designer restaurants''. Finally, these
results are discussed and the implications for our understanding of the
relationship explored.
Recent years have seen some radical developments taking place in the UK
restaurant industry, signified by the emergence of the ``celebrity chef'' and the
``designer restaurant''. Gill (1996) argues that ``Britain has become a
gastronomic destination'' with ``large new restaurants designed for the twenty-
first century''. A new kind of restaurant has emerged, where traditional
approaches to food, service and design have been challenged. These so-called
``designer restaurants'' display innovation, defy traditional standards of service
and focus on coherent, contemporary design. They are distinct from the mid-
spend, chain establishments like TGI Friday's, Dome and Hard Rock Cafe, that
reproduce identical themes at each outlet, with emphasis on fun and family
(Lillie, 1996, p. 26; McDermid, 1996, p. 14). In contrast, they aim to be
sophisticated, high profile, high spend, unique restaurants. They provide an
up-market, adult dinning experience, removed from the traditional formality
associated with fine dining. Instead, they combine high quality, sophisticated
food, with a relaxed style of service. Design is central to the experience.
Renowned architects, designers and artists have been commissioned to reflect
contemporary design and culture. For example, Ron Arad designed the
entrance at Belgo; an Allen Jones sculpture is in the reception at Mezzo
(Melhuish, 1995); Marc Newson was the interior designer for Coast (Lyons,
1995). Lyons (1995, p. 82) has remarked that Atlantic Bar and Grille, ``received
more column inches in last year's style journals than Madonna''! Sims (1993,
p. 52) suggests they create a ``spell so total'' where designers are more noted in
the media than the chefs. With reference to The Avenue, Harmer (1996, p. 38)
remarks,
With Rick Mether as the architect and fashion guru Nicole Farhi designing the staff uniforms,
The Avenue's menu is having to compete with the surrounding visuals for attention.
The majority of these restaurants are privately owned, often by flamboyant
entrepreneurs. Many operate on a big scale (Mezzo, for example, can cater for
750 people at one sitting) and are located in prime sites, some being conversions
of famous venues.
To summarise, these establishments do not fit with established categories of
restaurants as identified by Lilicrap and Cousins (1993, p. 4), but represent a
new approach to the restaurant business. The relaxed service method compares
with a ``bistro'' style, but the ``sophistication of the system'' (Jones, 1988) and the
prices are more in keeping with formal ``haute cuisine''. As such, they do not
communicate a traditional set of expectations to the customer. The approach is
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