The main purpose of this study is to examine the relationship between HRM practices and the productivity level and the process through which these HRM practices affect service performance in hotel operations in Sharm El-Sheikh. Questionnaire forms were distributed to hotel employees in addition to pre-planned interviews with a sample of five and four star hotel companies in Sharm El-Sheikh. Data were analyzed by using "Statistical Packages for Social Science" - SPSS software version 21. The findings of this study state that although the industry is concerned with the issues related to employee productivity, the implementation of the productivity management system is not very effective. In addition; there is a positive impact of employment practices on employee productivity. The study suggests some strategies that may provide human resource professionals with useful information to decide what human resource practices should be effectively implemented in their organizations.