LABOUR PRODUCTIVITY MODEL FOR THE HOTEL INDUSTRY

The paper investigates the infl uence of selected human capital variables on labour productivity in the Croatian hotel industry. The research was performed by using a regression model based on the Cobb-Douglas production function with constant returns to scale (Bartel, 1992; Black and Lynch, 1997). The independent variables used explain 65% of the variation in labour productivity. Given the assumptions of the standard Gaussian regression model as the theoretical framework for model testing, the results of the performed research suggest the absence of autocorrelation, heteroscedasticity and multicollinearity. The authors elaborate the specific characteristics of labour productivity in the hotel industry and emphasize the necessity to introduce additional variables in the model in order to manage labour productivity. The paper aims to encourage the rethinking of productivity measurement and management systems with the goal of enabling hotel organizations to more effectively meet the changing demands and the challenges of the competitive environment.