An investigation into the impacts outsourcing has on job satisfaction within the Splendid Hospitality Group in Edinburgh.
(2016) An investigation into the impacts outsourcing has on job satisfaction within the Splendid Hospitality Group in Edinburgh., no. 69.
The aim of this dissertation is to investigate why the Splendid Hospitality Group (SHG) has introduced outsourcing to their two hotels in Edinburgh and to identify what effects outsourcing is having on the job satisfaction of both insourced and outsourced employees as well as managers. The paper also seeks to gain a full perspective of the differing employee attitudes towards the outsourcing strategy. Firstly, secondary research was carried out in order to define the term "outsourcing" and to recognize the pros and cons that the outsourcing strategy can have on an organisation and especially, the hotel industry. Following this, primary research was conducted which focused on the experiences and opinions from both insourced and outsourced employees as well as managers in regards to outsourcing within the Splendid Hospitality Group. A qualitative research method was used where six semi-structured, face-to-face interviews were conducted which involved two insourced employees, two outsourced employees as well as two managers of the Splendid Hospitality Group. The data was later transcribed from recordings which were then manually coded where the researcher identified main themes. The themes included the reason to outsource, job performance, conflict between insourced and outsourced employees and the benefits of outsourcing. Moreover, the data was critically discussed which gave an insight into how outsourcing is affecting job satisfaction and the impact this has on a hotel as an organisation within a competitive market. Interestingly, all but one of the interviewees agreed that outsourcing only impacts negatively on a hotel which has resulted in these participants experiencing challenges such as poor job performance and communication barriers between departments. Moreover, both outsourced employees confirmed feelings of dissatisfaction within their employment which further added to the poor performance of the SHG hotels. Therefore, a set of recommendations were applied where the Splendid Hospitality Group can continue using the outsourcing strategy in a way that will allow job satisfaction amongst employees in order to prevent danger to the organisation's reputation.