Hospitality Human Capital process model in crisis management: Managing human capital and revealing employees’ hidden capabilities

Abstract

As the hospitality industry is highly human-dependent, proper Human Capital management is crucial for responding to these challenges and becoming resilient in the long-term perspective. This study aims to verify the Value-Driven Process Model of Hospitality Human Capital management in the context of Crisis Management in restaurant SMEs, which is an under-researched part of the industry. The authors adjust the model by Young et al. (2005) concerning two phases of a crisis – crisis event and post-crisis phases. Additionally, we aimed to expand the model by showing what values for businesses emerge from Human Capital management practices. As a methodology, we used semi-structured interviews conducted with restaurant owners or managers who experienced the COVID-19 pandemic crisis. The obtained results were analyzed using content analysis. Our findings revealed that some managerial actions concerning Human Capital may result in quick and successful adaptation to new and unknown conditions. Moreover, we uncovered hidden and unique capabilities of restaurant employees that, if properly managed, may become a substantial additional value for businesses and enhance their competitive advantage and resilience. The study may be food for thought for all practitioners in the hospitality industry, especially in restaurant SMEs that are an under-researched part of the industry. Our findings also fill the gap concerning Human Capital and Crisis Management frameworks in hospitality. This study delivers new knowledge in the field of Human Capital management in hospitality during a crisis.