HUMAN RESOURCE MANAGEMENT FOR FOODSERVICE ORGANIZATIONS (HTF 663)

CHAPTER ONE: INTRODUCTION TO HUMAN RESOURCE

Lecture Contents:
1.1 Definition of Human Resource Management. 1.2 The Goals and Functions of HRM. 1.3 A System Concept of HRM. 1.4 Evolution of Human Resource Management. 1.5 Influences on HRM Decisions

1.1 Definitions of Human Resource Usually defined based on the objectives and the goals of the organization.
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HRM is about how to manage people. It is one of the important topics in the management of an organization. HRM is defined as a source of potential instability as far as the process of employee relation is concerned.

HRM is the development and implementation of systems in an organization design to attract, motivate and retain a productive workforce.

- HRM defined as the implementation of the strategies, plan and program required to attract, motivate, develop, reward and retain the best people to meet the organizational goals and operational objectives of the hospitality enterprise.

1.2 The Goals and Function of Human Resource

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To monitor the specific managerial and organizational philosophy such as recruitment, training, discipline and etc. To ensure that the people employed by the organization are being used as efficiently as possible and that they are able to contribute towards achieving the organizational goals.

Responsibility for the Human Resource Function

Small Company Head of Department/All Managers Medium sized Administration Department companies Large-sized Human Resource companies Department Very large HR Department, Training companies Department and IR Department.

1.3 The Goals and Function of HRM in Tourism and Hospitality Industry
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Basically, the HRM in tourism and hospitality organization is based on two premises; the interaction between employee and customer, and the responsibility for developing serviceoriented human resources.
In order to understand the first premise, one must really understand the meaning of service encounter. It is a fact that tourism and hospitality organizations main asset is human thus HRM plays an important role in determining the success of any service organization.

Service encounter in the tourism and hospitality organization involves interpersonal transaction which takes places between customers or guests in a complex human delivery system.
The most important criterion is the value-added service which is relevant to the human resource competency, skills, motivation, education and commitment.

- The second premise of HRM in the tourism and hospitality organization is more focused on the responsibility of the managers in all department. This aspect involves four important keys in the HRM: planning, staffing, appraising and training development.

The HR department must make sure that all managers participate in the planning of a strategic human resource for the organization. It must also make sure that the objective of the organization is consistent with the planning for the staff recruitment, appraisal, training and development of the organization.

Human Resource Policy/Plan/Employee Relation Policy

Recruitment Remuneration and Benefits Records and Statistics

Selection

Appointment

Induction/Orientation

Performance Appraisal

Training and Development/Company Plan/Individual Needs

Transfers

Promotions

Terminations: Dismissal/Resignation/Retirement

Table 1.1

Human Resources Management Functions

1) Planning- employment 2) Analysis- employment 3) Recruitment- employment 4) Selection- employment 5) Hiring- employment 6) Placement- employment 7) Orientation- training & development 8) Coaching- training & development 9) Team building- training & development 10) Performance evaluation- training & development 11) Performance improvement- training & development 12) Compensation & administration- employee welfare

13) 14) 15) 16) 17) 18) 19) 20) 21) 22)

Benefit planning and administration- employee welfare Discipline- industrial relations Counseling- industrial relations Termination- industrial relations Labor relation- industrial relations Managing diversity- productivity improvement schemes Retention- productivity improvement schemes Information system- productivity improvement schemes Employment law- The Employment Act 1955- IR Improving work environments- healthy and safety

1.3 A System Concept of Human Resource Human Resource Management Vs Personnel Management Currently, HRM is the best practice to acknowledge human resource in an organization. HRM nowadays, is also known as a sustainable human resource practice, while the personnel management is less recognized as a traditional way of managing the human resource. The characteristics of both managements are differentiated in Exhibit 1.2:

Exhibit 1.2 HRM Vs Personnel Management Human Resource Management -High staff turnover is seen as problematic. -Company policies is designed to minimized the staff turnover. Personnel Management - High staff turnover is usually considered normal. - No measure has been taken to reduce the staff turnover.

-Staff recruitment is based on careful analysis and systematic. -Staff is recruited on the basis of potential development. -Staff career mobility is recognized as beneficial to the individual.
-Company offer competitive rewards and benefits to their staff -A well planned of training and development for the companys policies and strategies.

- Staff recruitment is usually taken from other companies. -Staff has few opportunities for -promotion and development. - Staff career mobility is seen as disloyal to the company.
- Company offers minimum rewards and benefits to their staff. - No planning for training and development for the company policies and strategies.

1.4 Evolution of Human Resource Management Early Employer- Employee Relationships

(1800 B.C) Babylonian Code of Hammurabi

Industrial Revolution
(Mid-1850s) Europe- Robert Owen

Human Relation Approach

(1930s- 1950s) Fredrick W. Taylor

Recent Development
(1960s- 2000)

Early Employer- Employee Relationships (1800 B.C) Babylonian Code of Hammurabi

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Provided an incentive type of compensation plan as well as a minimum wage. Slavery, one of the earliest form of structured employment. Slaves had no incentive to work harder and their achievement was to avoid the whip. Labor forced to work for their landowners. Guild system composed of apprentices, journeymen and master craftsmen's in part in the hospitality in Europe. Guild system involved with training and development system.

Industrial Revolution (Mid-1850s) Europe- Robert Owen

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The first individual to study the effects of the work environment and productivity. Implemented ideas in model villages located next to the factory. Example the implemented ideas: a) Installation of toilets. b) Shortening the work day to 10 hours. c) Abolishing child labor from all operations. Specialization of work areas. Exploitation of workers.

-Industrial Revolution controversy of the use of child labour in factories during the Industrial Revolution in Britain. -The many reports of poor working conditions and long hours of difficult toil make harrowing reading, to be sure. William Cooke Taylor wrote at the time about contemporary reformers who, witnessing children at work in factories, thought to themselves. -Historians who have interpreted child labor in industrial Britain as a crime of capitalism, none have been more prominent. -The Hammonds divided the factory children into two classes: "apprentice children" and "free labour children."

Human Relation Approach or Scientific Management (1930s- 1950s) Fredrick W. Taylor - Birth of scientific management approach. - His believe that workers could received high wages and management could keep labor cost down by improving productivity. - The human relations approach exist due to: a) Very bad working condition during Industrial Revolution. b) No protection from employers who expected their workers to live and work in unsanitary conditions. c) Suffer for long working hours and work in unsafe environment. d) Endure great physical fatigue.

Recent Development (1960s- 2000)

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The introduction of legislation to protect workers and their rights. Malaysia legislation labour standards: a) Employment Act 1955. b) Factories and Machinery Act 1967. c) Employees Provident Fund Act 1951. The growth in the size of organization changes of economic and social environment. Organization getting bigger. Rapid changes. Increasing import of foreign labour.

1.5 Influences on HRM Decisions

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Critical issue for human resources managers in the hospitality industry is a reduction turnover and improve retention rate. The reality of human resource management is that it is shared between the specialist working in a human resource department and every manager in every department. The workers who are being managed are not subordinates to the human resource manager but work in the different department in the organization.

The role of human resource manager is thus to advise the line manager on how the best to utilize those subordinates in order to achieve the departments objective. To prevent conflict between the human resource department and line manager who may resent interference by the former, it is advisable to have a clear agreement on who is responsible for what.