Introduction to HRM - Introduction to HRM - Factors Influencing the Factors Influencing the

Nature of Work in HotelsNature of Work in Hotels

Human Resource Human Resource Management - SManagement - Session 1ession 1

Suhel KhanSuhel Khan

AimsAims

By the end of the session students will By the end of the session students will be able to:be able to:

1)     Demonstrate an understanding 1)     Demonstrate an understanding role of role of HR within the industryHR within the industry..

2)     2)     Understand Understand the factors the factors influencing the influencing the changing nature of changing nature of hotel workhotel work..

What is HR?What is HR?

Human Resources is the part of the Human Resources is the part of the organization that deals with peopleorganization that deals with people

Managing the human resourceManaging the human resource

This means acquiring developing and This means acquiring developing and supporting staff as well as ensuring supporting staff as well as ensuring they fulfill their role at workthey fulfill their role at work

Define HRMDefine HRM

Torrington et al “ It is a series of Torrington et al “ It is a series of activities which; first enables working activities which; first enables working people and the organisation which people and the organisation which uses their skills to agree about the uses their skills to agree about the objective and nature of their working objective and nature of their working relationship and secondly, ensure relationship and secondly, ensure that the agreement is fullfilled.” that the agreement is fullfilled.”

HRMHRM

The Policies and practices in carrying out The Policies and practices in carrying out the “people” or human resource aspects of the “people” or human resource aspects of a management position including, a management position including, recruiting, screening, training, rewarding recruiting, screening, training, rewarding and appraising. (Dessler G)and appraising. (Dessler G)

The Charted Institute of Personnel The Charted Institute of Personnel Management “ The design, implementation Management “ The design, implementation and maintenance of strategies to manage and maintenance of strategies to manage people for optimum business performance people for optimum business performance including the development of policies and including the development of policies and process to support these strategies”process to support these strategies”

ContinueContinue

So the Human Resource Manager job includes: So the Human Resource Manager job includes: Conducting Job analysis ( determining the nature of Conducting Job analysis ( determining the nature of

each job)each job) Planning labour needs and recruiting job candidated Planning labour needs and recruiting job candidated Selecting Job candidates Selecting Job candidates Orienting and training new employeesOrienting and training new employees Managing wages and salaries (compensating Managing wages and salaries (compensating

employees)employees) Providing incentives and benefitsProviding incentives and benefits Appraising performanceAppraising performance Communicating ( interviewing, counselling, Communicating ( interviewing, counselling,

disciplining)disciplining) Training and developmentTraining and development

Cont.Cont.

Training and Developing managersTraining and Developing managersBuilding employee commitmentBuilding employee commitment

And what a HRM Manger should know And what a HRM Manger should know aboutabout

Equal opportunity and affirmative actionEqual opportunity and affirmative action

Employee health and safetyEmployee health and safety

Handling grievances and labour relationsHandling grievances and labour relations

Personnel Management V Resource Personnel Management V Resource ManagementManagement

Personnel Management is ‘workforce’ centredPersonnel Management is ‘workforce’ centred HR is resource centredHR is resource centred Does not identify with Management interestsDoes not identify with Management interests Directed at management needs for deploymentDirected at management needs for deployment People have the right to proper ‘treatment’People have the right to proper ‘treatment’ Focus is on individuals and needs and potentialFocus is on individuals and needs and potential Intervene between manager - subordinate Intervene between manager - subordinate

relationshipsrelationships Planning, monitoring and control rather than Planning, monitoring and control rather than

mediationmediation

Introduction to HR Introduction to HR The 1980’s and 90’s saw ‘Human Resource The 1980’s and 90’s saw ‘Human Resource

Management’(HRM) replace ‘Personnel Management’(HRM) replace ‘Personnel Management’Management’ fashionable termfashionable term re-organisation of work of personnel departmentre-organisation of work of personnel department distinctively different with new management approachdistinctively different with new management approach

Long term rather than short term perspectiveLong term rather than short term perspective Psychological contract of commitmentPsychological contract of commitment Self-control rather than external controlsSelf-control rather than external controls Management integrationManagement integration Maximum utilisation of resourceMaximum utilisation of resource

Why is it Important?Why is it Important?

Staff are the largest revenue cost of any Staff are the largest revenue cost of any organisation. organisation.

Staff are a volatile resource, they can leave you Staff are a volatile resource, they can leave you any time.any time.

Staff are a store of corporate knowledge and the Staff are a store of corporate knowledge and the means of service delivery.means of service delivery.

Retaining and developing good staff allows you to Retaining and developing good staff allows you to use skills and develop as a business.use skills and develop as a business.

Individuals should contribute more than they cost.Individuals should contribute more than they cost. In the industry customer care critical and In the industry customer care critical and

delivered by staff as representatives.delivered by staff as representatives.

Introduction to HR Introduction to HR The 1980’s and 90’s saw ‘Human Resource The 1980’s and 90’s saw ‘Human Resource

Management’(HRM) replace ‘Personnel Management’(HRM) replace ‘Personnel Management’Management’ fashionable termfashionable term re-organisation of work of personnel departmentre-organisation of work of personnel department distinctively different with new management approachdistinctively different with new management approach

Long term rather than short term perspectiveLong term rather than short term perspective Psychological contract of commitmentPsychological contract of commitment Self-control rather than external controlsSelf-control rather than external controls Management integrationManagement integration Maximum utilisation of resourceMaximum utilisation of resource

Hard and Soft HRM Hard and Soft HRM

'Storey (1989) has distinguished between hard and 'Storey (1989) has distinguished between hard and soft forms of HRM, typified by the Michigan and soft forms of HRM, typified by the Michigan and Harvard models respectively. 'Hard' HRM focuses on Harvard models respectively. 'Hard' HRM focuses on the resource side of human resources. It emphasizes the resource side of human resources. It emphasizes costs in the form of 'headcounts' and places control costs in the form of 'headcounts' and places control firmly in the hands of management. Their role is to firmly in the hands of management. Their role is to manage numbers effectively, keeping the workforce manage numbers effectively, keeping the workforce closely matched with requirements in terms of both closely matched with requirements in terms of both bodies and behaviour. 'Soft' HRM, on the other hand, bodies and behaviour. 'Soft' HRM, on the other hand, stresses the 'human' aspects of HRM. Its concerns stresses the 'human' aspects of HRM. Its concerns are with communication and motivation. People are are with communication and motivation. People are led rather than managed. They are involved in led rather than managed. They are involved in determining and realizing strategic objectives.'determining and realizing strategic objectives.'

Hard and Soft HRMHard and Soft HRM

Hard HRM: A different view of HRM is Hard HRM: A different view of HRM is associated with the Michigan Business associated with the Michigan Business School (Fombrun, Tichy and Devanna, School (Fombrun, Tichy and Devanna, 1984). There are many similarities with the 1984). There are many similarities with the Harvard 'map' but the Michigan model has Harvard 'map' but the Michigan model has a harder, less humanistic edge, holding a harder, less humanistic edge, holding that employees are resources in the same that employees are resources in the same way as any other business resource. way as any other business resource. People have to be managed in a similar People have to be managed in a similar manner to equipment and raw materials. manner to equipment and raw materials. Thay must be obtained as cheaply as Thay must be obtained as cheaply as possible, used sparingly, and developed possible, used sparingly, and developed and exploited as much as possible.and exploited as much as possible.

The Michigan model is also known as The Michigan model is also known as the 'matching model' or 'best-fit' the 'matching model' or 'best-fit' approach to human resource approach to human resource management. In essence, it requires management. In essence, it requires that human resource strategies have a that human resource strategies have a tight fit to the overall strategies of the tight fit to the overall strategies of the business. As such, it limits the role of business. As such, it limits the role of HR to a reactive, organizational function HR to a reactive, organizational function and under-emphasizes the importance and under-emphasizes the importance of societal and other external factors. of societal and other external factors. For example, it is difficult to see how For example, it is difficult to see how the current concern for worklife balance the current concern for worklife balance could be integrated into this model. could be integrated into this model.

The Matching Model of HRMThe Matching Model of HRM

Internal Inter-linked components:Internal Inter-linked components: Mission and Mission and

StrategyStrategy Organisation Organisation Human ResourceHuman Resource

StructureStructure management management

External forces:External forces:Political forces Economic forces Cultural forcesPolitical forces Economic forces Cultural forces

Devanna et al., 1984Devanna et al., 1984

Emphases the ‘tight fit’ between HR strategy and business Emphases the ‘tight fit’ between HR strategy and business strategystrategy

Harvard ModelHarvard Model A large part of this section is devoted to the Harvard 'map' A large part of this section is devoted to the Harvard 'map'

of HRM. This is probably the most seminal model of HRM of HRM. This is probably the most seminal model of HRM and has had a major influence on academic debate on the and has had a major influence on academic debate on the subject. subject.

'We noted that the Harvard Business School generated one 'We noted that the Harvard Business School generated one of the most influential models of HRM. The Harvard of the most influential models of HRM. The Harvard interpretation sees employees as resources. However, they interpretation sees employees as resources. However, they are viewed as being fundamentally different from other are viewed as being fundamentally different from other resources - they cannot be managed in the same way. The resources - they cannot be managed in the same way. The stress is on people as stress is on people as humanhuman resources. The Harvard resources. The Harvard approach recognizes an element of mutuality in all approach recognizes an element of mutuality in all businesses, a concept with parallels in Japanese people businesses, a concept with parallels in Japanese people management, as we observed earlier. Employees are management, as we observed earlier. Employees are significant stakeholders in an organization. They have their significant stakeholders in an organization. They have their own needs and concerns along with other groups such as own needs and concerns along with other groups such as shareholders and customers.' shareholders and customers.'

The The Harvard Map or model or model outlines four HR policy areas:outlines four HR policy areas:

1 1 Human resource flowsHuman resource flows - - recruitment, selection, placement, recruitment, selection, placement, promotion, appraisal and assessment, promotion, appraisal and assessment, promtion, termination, etc. promtion, termination, etc. 2 2 Reward systemsReward systems - pay systems, - pay systems, motivation, etc. motivation, etc. 3 3 Employee influenceEmployee influence - delegated - delegated levels of authority, responsibility, power levels of authority, responsibility, power

4 4 Work systemsWork systems - definition/design of - definition/design of work and alignment of people.work and alignment of people.

Which in turn lead to the 'four Which in turn lead to the 'four C's' or HR policies that have to C's' or HR policies that have to

be achieved: be achieved: Commitment Commitment Congruence Congruence Competence Competence Cost effectiveness Cost effectiveness

Factors Affecting HRFactors Affecting HR

Legislation Legislation The Economic environmentThe Economic environmentThe global economy The global economy The structure of the labour marketThe structure of the labour marketThe Political environmentThe Political environmentChanges in technologyChanges in technologyNeed to constantly retrain staffNeed to constantly retrain staff

LegislationLegislation

In the EU employment law is highly In the EU employment law is highly complexcomplex

In the UK changes made twice a yearIn the UK changes made twice a year

The contract of employment is key to The contract of employment is key to the employer/employee relationshipthe employer/employee relationship

The Policy DecisionsThe Policy Decisions

The formalities to bargain with The formalities to bargain with Government legislation, trade unions Government legislation, trade unions and workers council consultationsand workers council consultations

The decision to minimise external The decision to minimise external power and influencepower and influence

Encompass management and Encompass management and employee group interaction employee group interaction

The Role of HR in TourismThe Role of HR in Tourism

Support and advise line managersSupport and advise line managers Ensure staff available to meet organisational needsEnsure staff available to meet organisational needs Provide developmental supportProvide developmental support

AppraisalAppraisal TrainingTraining PromotionPromotion

Ensure pay and benefits in line with expectations.Ensure pay and benefits in line with expectations. Deal with problem staffDeal with problem staff

DevelopDevelop DismissalDismissal

The Changing Nature of Hotel The Changing Nature of Hotel WorkWork

Greater level of overseas travelGreater level of overseas travelTechnology room bookings etcTechnology room bookings etcLarger number of multinational Larger number of multinational

groupsgroupsGreater job mobilityGreater job mobilityHigher customer care expectationsHigher customer care expectationsReduction in seasonal differencesReduction in seasonal differencesHealth and SafetyHealth and SafetyGreater need for Multi-skillingGreater need for Multi-skilling

Factors Affecting Hotel WorkFactors Affecting Hotel Work

Disposable income levelsDisposable income levelsCustomer expectationsCustomer expectationsTravel options consider 911Travel options consider 911TechnologyTechnologyStaff availabilityStaff availability

Status many hotels are importing labourStatus many hotels are importing labourFlexibility of supply e.g. Students in Flexibility of supply e.g. Students in

summersummerCareer expectationsCareer expectations

HRM FunctionHRM Function

The company rather than the state or trade The company rather than the state or trade union provide employee security and welfareunion provide employee security and welfare

HRM focuses on achieving organisational goals HRM focuses on achieving organisational goals through individual achievementthrough individual achievement

Providing the right person in the right placeProviding the right person in the right place Directing positive employee communication Directing positive employee communication

and involvementand involvement Optimise co-operation and loyaltyOptimise co-operation and loyalty Imposition of different forms of control to Imposition of different forms of control to

develop managementdevelop management

Moving with the TimesMoving with the Times

Forces interact in complex ways to move and Forces interact in complex ways to move and change markets, businesses and the economics change markets, businesses and the economics of regions.of regions.

The changing expectations of a growing The changing expectations of a growing population. population.

a greater sense of self-determination a greater sense of self-determination expectation of rewards and recognition for expectation of rewards and recognition for

efforts expendedefforts expended a growing appetite for a better life.a growing appetite for a better life.

Business ChangesBusiness Changes

HRM equipped with strategy - a new set of tools HRM equipped with strategy - a new set of tools and measures and measures

People issues are now recognised as being People issues are now recognised as being central to the success of any organisationcentral to the success of any organisation

as a consequence, human resources has assumed as a consequence, human resources has assumed a higher profile. a higher profile.

senior management meeting address concerns senior management meeting address concerns staffing levels, staffing levels, recruitment, recruitment, management development management development retention.retention.

MutualityMutuality between Employers and Employeesbetween Employers and Employees

The theory that policy will elicit commitment The theory that policy will elicit commitment which in turn will yield better economic which in turn will yield better economic performance and greater human developmentperformance and greater human developmentMutual goalsMutual goalsmutual influencemutual influencemutual respectmutual respectmutual rewardsmutual rewardsmutual responsibilitymutual responsibility

Walton, 1985Walton, 1985

ReferenceReference

http://www.hr-topics.com/introduction-to-hrm/defining-hrm.htm

Armstrong M Handbook of HRM Armstrong M Handbook of HRM practices(Kogan Page 1999)practices(Kogan Page 1999)

OTHM Presentation of Travel and OTHM Presentation of Travel and Tourism Tourism

Laurie J. Mullins Management and Laurie J. Mullins Management and Organisational Behaviour seventh Organisational Behaviour seventh edition edition