Human Resource Management in Hospitality Industry

1. HUMAN RESOURCE MANAGEMENT IN
HOSPITALITY INDUSTRY
College of Hotel, Restaurant, and Tourism Management
CHAPTER 1: HUMAN RESOURCE MANAGEMENT
Mr. Crystial Abram P. Parrilla
HRM411

2. College of Hotel, Restaurant, and Tourism Management
Over the past three decades the term
‘human resource management’ (HRM) has
gradually entered the language and discourse of
everyday business life. Employees refer to their
‘HR’ department when needing to resolve an
employment issue; Many organizations have
renamed their previously entitled “personnel”
office to fall in line with the thread to use the HR
label, and job title have also been radically
overhauled to reflect the contemporary approach.
CHAPTER 1: HUMAN RESOURCE MANAGEMENT
HRM411

3. College of Hotel, Restaurant, and Tourism Management
CHAPTER 1: HUMAN RESOURCE MANAGEMENT
What is Human Resource Management?
Human resource or manpower management
effectively describes the process of planning
and directing the application, development
and utilization of human resources in
employment – Dale Yoder
HRM is that part of management process
which is primarily concerned with human
constituents of an organization – E.F.L.Brech
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. HRM can also be
performed by line managers.
HRM411

4. College of Hotel, Restaurant, and Tourism Management
CHAPTER 1: HUMAN RESOURCE MANAGEMENT
HRM is the organizational
function that deals with issues
related to people such as
compensation, hiring,
performance management,
organization development,
safety, wellness, benefits,
employee motivation,
communication,
administration, and training.
HRM is also a strategic and
comprehensive approach to
managing people and the workplace
culture and environment. Effective
HRM enables employees to
contribute effectively and
productively to the overall company
direction and the accomplishment
of the organization's goals and
objectives.
HRM411

5. College of Hotel, Restaurant, and Tourism Management
CHAPTER 1: HUMAN RESOURCE MANAGEMENT
• Too identify manpower needs
• Selection of right person for the right job
• Appraisal of employees
• Development of the skills of the employee
• Need for incentives
• Good human relationship
• Conducive environment
IMPORTANCE
HRM411

6. College of Hotel, Restaurant, and Tourism Management
CHAPTER 1: HUMAN RESOURCE MANAGEMENT
• Maximize the return on investment from
the organization's human capital and
minimize financial risk.
• To align the capabilities and behaviors of
employees with the short-term and long-
term goals of the retail firm.
OBJECTIVES
HRM411

7. College of Hotel, Restaurant, and Tourism Management
CHAPTER 1: HUMAN RESOURCE MANAGEMENT
Major Activities of
Human Resource Management Department
• Recruiting
• Selecting
• Training
• Motivation
• Evaluation
• Compensation
HRM411

8. College of Hotel, Restaurant, and Tourism Management
CHAPTER 1: HUMAN RESOURCE MANAGEMENT
• Process of locating, identifying, and attracting capable candidates.
• Can be for current or future needs.
• What sources do we use for recruitment?
• The process of assessing candidates and appointing a post holder.
• Purpose is to hire the person(s) best able to meet the needs of the
organization.
• Method of Selection
• Interview
• Aptitude test
Recruiting and Selection
HRM411

9. College of Hotel, Restaurant, and Tourism Management
CHAPTER 1: HUMAN RESOURCE MANAGEMENT
• Training tends to be done for current job.
• Aims to improve efficiency.
• Keeps the employee up to date with changes in the field
• Can be external or ‘in-house’.
Training
HRM411

10. College of Hotel, Restaurant, and Tourism Management
CHAPTER 1: HUMAN RESOURCE MANAGEMENT
Motivating employees to perform up to their potential is the key to maintaining a
productive, successful business.
Ways in which you can motivate employees
• Interact - Talk to your employees regularly.
• Recognition & Appreciation - A job well done should be appreciated and encouraged.
• Pay them Right - Pay employees for what they are worth and they will be happy to
work.
• New challenges - Give employees new and interesting challenges to keep them
stimulated and learning.
Motivation
HRM411

11. College of Hotel, Restaurant, and Tourism Management
CHAPTER 1: HUMAN RESOURCE MANAGEMENT
• Employees personal goals does vary with the management’s goals
• According to a study, 5% increase in employee satisfaction results in a 1.3% increase
in customer satisfaction and 0.5% increase in sales
• Customer loyalty is directly related to motivation of employees
How Critical is Motivation of Employee?
HRM411

12. College of Hotel, Restaurant, and Tourism Management
CHAPTER 1: HUMAN RESOURCE MANAGEMENT
• Establishing performance standards and reviewing the performance.
• Means to ensure organizational goals are being met.
• To identify employees who are performing well and those who aren’t.
Evaluation
HRM411

13. College of Hotel, Restaurant, and Tourism Management
CHAPTER 1: HUMAN RESOURCE MANAGEMENT
Incentive Compensation can be Commission, Bonus and stock
options.
• Commission is a compensation based on fixed formula for sales.
• Bonus is periodical compensation based on the store’s
performance during that period.
• Stock options-employees are encouraged to buy shares of their
company at discounted prices
Compensation
HRM411

14. College of Hotel, Restaurant, and Tourism Management
CHAPTER 1: HUMAN RESOURCE MANAGEMENT