Table of Contents

INTRODUCTION.................................................................................................................................1
CHANGING FACE OF HRM IN INDIA.............................................................................................3
REWARD MANAGEMENT................................................................................................................4
EMERGING REWARD TRENDS........................................................................................................5
KEY CHARACTERISTICS OF THE COMPANY'S POLICY AND PROCEDURES IN
PERFORMANCE MANAGEMENT....................................................................................................5
CRITIAL EVALUATION OF THE ORGANISATION' POLICY AGAINST GOOD PRACTICE.....6
1. Training and Development........................................................................................................6
2. Employee Retention...................................................................................................................7
3. Motivation.................................................................................................................................7
4. Employee Health and Safety......................................................................................................8
HUMAN RESOURCE ISSUES............................................................................................................8
1. Absenteeism..............................................................................................................................8
2. Staffing......................................................................................................................................8
3. Lack of responsiveness and decision making.............................................................................8
4. Accountability...........................................................................................................................8
RECOMMENDATIONS.......................................................................................................................9
CONCLUSION...................................................................................................................................10
REFERENCE, BIBLIOGRAPHY AND JOURNALS........................................................................11
INTRODUCTION

Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization. Human Resource Management can also be performed by line managers.

HRM is the organizational method that bargains with issues identified with individuals for
example recompense, enlisting, exhibition administration, wellness, agent cause,
correspondence and teaching.

Human resource management is additionally a strategic and extensive in maintaining

employees and the workplace society. Viable HRM empowers agents to donate usefully and
gainfully to the for the most part outfit heading and fulfilment of the conglomeration’s target.

Human resource is a department established for employee well-being in any business, no

matter how small. HR responsibilities include payroll, benefits, hiring, firing, and keeping up
to date with state and federal tax laws.

One important focus of human resource management is reward management. This means
enterprise culture is contributing to the imposition of reward strategies that seek to pay
employees for performance compared to time served in a particular firm. Reward is being
used as a holistic term within a contemporary HRM practices. Organizations have to start
from where they are and typically responses to issues concerning reward strategy involves
‘best fit’, with contingency approaches usually being those adopted.

Selection Performance Appraisal

Developmen Reward
t

The Michigan model of HRM (Source: Fombrun, Tichy and Devanna (1984)
This model emphasizes on treating employees as a mean in achieving the organization’s
strategy. Organizations that practice this model monitor investment in employee training and
development to ensure to ensure it fits with the firm’s business strategy. The management’s
principal reason for improving the effectiveness of HRM in this model is increasing
productivity of the organization.

The Michigan School Model emphasizes the strategic resource aspect of human resources
and is considered to be the ‘hard’ variant of HRM (Ozbilgin, 2006) which considers
employees as one of the key resources of organizations, arguing that human resource should
be used effectively in order to achieve organizational goals.

CHANGING FACE OF HRM IN INDIA

Indian organizations are witnessing a change in systems, management cultures and

philosophy due to the global alignment of Indian organizations. There is a need for multi skill
development. Role of HRM is becoming all the more important.

Some of the recent trends that are being observed are as follows:

 The recent quality management standards ISO 9001 and ISO 9004 focus more on
people centric organizations. Organizations now need to prepare themselves in order
to address people centred issues with commitment from the top management, with
renewed thrust on HR issues, more particularly on training.
 Charles Handy also advocated future organizational models like Shamrock, Federal
and Triple I. Such organizational models also refocus on people centric issues and
call for redefining the future role of HR professionals.
 To leapfrog ahead of competition in this world of uncertainty, organizations have
introduced six- sigma practices. Six- sigma uses rigorous analytical tools with
leadership from the top and develops a method for sustainable improvement. These
practices improve organizational values and helps in creating defect free product or
services at minimum cost.
 Human resource outsourcing is a new accession that makes a traditional HR
department redundant in an organization. Exult, the international pioneer in HR BPO
 already roped in Bank of America, international players BP Amoco & over the years
plan to spread their business to most of the Fortune 500 companies.
 With the increase of global job mobility, recruiting competent people is also
increasingly becoming difficult, especially in India. Therefore by creating an
enabling culture, organizations are also required to work out a retention strategy for
the existing skilled manpower.

REWARD MANAGEMENT
Reward management is concerned with formulation and implementation of strategies and
policies with the purpose to reward people fairly equitably and consistently in accordance
with their value to the organization and help the organization to achieve its objectives.

Moreover, reward management is an improvement process for any organization and they
should be given to an individual to encourage desired behaviour and promote objective based
employee performance.

Aims of reward management

1) Create total reward processes (Redfern 2009). The rewards in this case are grounded on
beliefs about the values and aspirations of the organization.

2) Reward employees for the value that they add to the company. What this means is that the
persons are rewarded in accordance with the amount of value that they put into the
organization.

3) Alignment of rewards with the aspirations of the business and the values that are held dear
by the employee (Redfern 2009).

4) Another aim of the reward management system is to reward the right outcomes (Lloyd
2008). This will purvey the message to the rest of the employees as to the expected and
valued behaviour and outcomes within the organization.
5) Perhaps the most important facet of the reward management is the attraction, retention and
satisfaction of the most qualified professionals in the field (Pierce 2007). This will lead to the
attainment of what Pierce calls the winning of the war for talent (Pierce 2007).

6) Motivating employees so that they can be committed and engaged in their job.

EMERGING REWARD TRENDS

Total reward Pay plus financial and non financial benefits

deployed in pursuit of competitive advantage
New pay The strategic alignment of rewards with
business objectives and the use of pay as a
lever on employee performance
Market driven pay Labour market responsiveness in tight labour
markets to meet local conditions
Performance related pay The application of individual PRP to reward
the exhibition of desired performance and
competencies with increasing interest in team
reward
Broad-banding of graded pay Increased flexibility in delayered
organization structures
Money purchase pensions The escalating costs of final salary schemes
and a transfer of the risk to employees
Flexible benefits Used to meet the diverse needs of the
workforce, to increase the potency of the
reward strategy and to target benefits cost.

(Source: Pilbeam and Corbridge 2006)

KEY CHARACTERISTICS OF THE COMPANY'S POLICY AND
PROCEDURES IN PERFORMANCE MANAGEMENT

Angaara Restaurant is an upcoming Indian restaurant which has been established in Delhi by
a young MBA aspirant. The establishment is a stand-alone restaurant and the restaurant has to
go miles before it enjoys fame with other reputed restaurant. The restaurant has a staff of 20
employees and the owner follows a reward policy to encourage his employees to cater
according to the policy listed down by the owner and provide the taste to attract customers.
The owner follows a performance incentive scheme, employees are provided with training
activities which are conducted to improve the front quality of services as well as to ensure
smooth functioning of the restaurant. 

CRITIAL EVALUATION OF THE ORGANISATION' POLICY AGAINST GOOD

PRACTICE

The restaurant has diversified into different catering businesses like a canteen in a college
premises, providing Outdoor Catering, Home Delivery Services and Take-Aways. With
expansion into various segments in food industry this has helped the restaurant with their
diverse earning options with wider market exposure. The restaurant serves university
students, professionals, workers of different industries. The restaurant is gradually trying to
establish its name in the market by providing their taste and un-sacrificed quality of food.

The H.R. practices followed by the restaurant are-

Training and Development

It is difficult, not impossible, for new employees to come into an organization and
immediately become fully-functional performers. They first need to be put at ease by helping
them adapt to the new environment. The process of orientation enables the employee to
perform better. the owner of the Angaara Restaurant helps the kitchen staff and the service
staff to develop their skill and keep a watch on their working style and at the end of the day
he points out their mistake so that the staff can improvise on them.
The owner also arranges different kitchen training skills to help the kitchen staff so that they
can provide and improvise or come up with new dishes for the menu.

1. Employee Retention
The hospitality industry has one of the highest staff turnovers. It has higher than average skill
shortages, labour turnover and hard-to-fill vacancies at every level. Here are some of the
main reasons for employee turnovers, and recommendations to overcome them:

Rewards: The most obvious reward employees receive from work is remuneration. However,
rewards also include promotions, desirable work assignments and recognition at work. Thus,
rewards, among other, can be divided into extrinsic and intrinsic rewards. Rewards are
necessary to keep an employee happy in an organization.

Being a small unit the owner can’t provide with much Extrinsic rewards. The owner can’t
promote any of his staff because of a small unit and the employee doesn’t have a hierarchy
level in the organization.

The owner provides bonuses on special occasions like Diwali, New Year. The owner pays
their travelling allowance to their home town.

The owner tries to boost their morale and during busy hours he also helps the staff with
chopping and garnishing the plates. The little input and helping their staff boost the
employee’s spirit towards the restaurant.

2. Motivation
Clawson and Newburg (2005) said, “Feelings affect our performance, plain and simple.”
Motivation is very much related in the hospitality industry, where employee satisfaction and
competence are crucial determinants of service quality (Go, F. M. et al. 1996). Motivation no
longer comes from just a lucrative pay package. Nowadays companies have to walk that extra
mile to make the employee feel special to ensure that he doesn’t walk out and into the arms of
competition. Hence, it may not be wrong to say that motivation and intrinsic rewards are
interlinked. The owner provides freedom to the employees to try out new dishes and flavours.

3. Employee Health and Safety

Organization officials have a legal as well as moral responsibility to guarantee that the place
of work is free from unnecessary dangers and that condition surrounding the workplace are
safe for employees’ physical and mental health (DeCenzo and Robbins, 2005).

Most jobs in the hospitality industry are physically demanding. This requires a level of
physical fitness for the staff that is hired. Kitchen staff is more prone to work injuries like
fall, back pain, muscular pain, muscle cramps, cuts and burns etc. There have been cases
where a staff member got injured and a first aid was provided on the spot and immediately
the doctor was called. The owner has appointed a doctor on call and the expenses are paid by
the organization.

HUMAN RESOURCE ISSUES

Every organization has to face HR issues regardless of its size. The hr issues faced by the
owner of Angaara restaurant are-

1. Absenteeism- being a small organization the owner has to deal with absenteeism.
Due to absenteeism of one employee the others have to face the work load of this
peer.

2. Staffing- the employees hired are skilled in their own section of the kitchen. They
don’t want to learn their counterpart’s dishes. This affects the working of the kitchen
if Chinese cook if sick or has some problem. The taste of the restaurant would be
adhered because no other staff has learned the way the appointed cook make his
dishes.
3. Lack of responsiveness and decision making- the staff doesn’t respond to the
problems quickly as they should be doing regarding this industry. The employees wait
for the owner to come and help them a solution or recommend some solution so that
they can work upon the situation in front of them.
 4. Accountability- one of the major problems faced by the owner. If something goes
wrong the staff starts playing blame game and if the owner wants to improve on their
mistake he can’t really do that because they come up with some excuse. There was
case once a guest nearly waited for 80 minutes for their starter. The customer finally
flagged down the waiter who said that the kitchen was “having problems.” The
manager came to our table about 15 minutes later and apologized.

RECOMMENDATIONS

It is important to recognise that employees may demonstrate a commitment to providing

quality service without being committed to the organization. For example, a study by Peccei
and Rosenthal (1998) has explored the relationship between an individual’s commitment to
customer service (CCS) and a number of organizational variables in the retail food sector.
They focus on behavioural manifestations of CCS, namely the extent to which individuals
engage in continuous improvement on the job for the benefit of customers and exert effort on
the job on behalf of customers.

In the process of human resource there has to be a key integrative mechanism, linking
individuals' goals and  responsibilities to the objectives of the organization and integrating
appraisal, training and development to facilitate strategic fit (Storey 1992) and has been
identified as a means of enhancing organizational control over employees, constructing a
consistent statement of managerial expectations (Coates 1994). Formal planning is held to be
an important driver in determining the employee’s commitment along with the organization
in terms of adherence to its values and desired behaviors that will bring about a strong culture
and be conducive to organizational success (Peters and Waterman 1983).

Finally, HR bosses might as well hold fast to the human asset go at in marking the way of
improvement for both the capacity and polish in HR method plan and implementation that
might suggest much in terms of gathering the underlying level requires of the conglomeration
as opposed to matching HR professional ideas (1992) of what the capacity ought to do that
would need the role to work at a level alternate than strategic presumptions regarding the part
of the HR capacity, the administration rehearse of the HR role and the folks administration
hone of the conglomeration.
Don’t blame a particular department if anything goes wrong it should be taken a problem
faced by every department of the restaurant. and act like you are not responsible.

CONCLUSION
Human assets are doubtlessly one of the most incredibly noteworthy possessions of the
hospitality industry. Over and over we have perceived how representative display can change
the conglomeration. This appearance needs to be operated rightly for the gift to be positive
and to achieve an organization its goals and objectives.
Reward management is one of the most important practises in HRM and it has been identified
as a key lever in HR models. There has also been an expansion of the way in which reward is
understood, shifting away from equating reward with pay and moving instead towards the
idea of total reward which combines traditional pay and benefits with other tangible elements
employees gain from employment such as skill, opportunity and recognition.
Although the way in which a reward package is constructed will vary from organizations.
The main aim of the reward is that it should be tailored according to the desires of the
employees with minimal cost implication for employers.
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