Introduction to HRM - Factors Influencing the Nature of Work in Hotels Part-2

1. Introduction to HRM - Factors Influencing the Nature of Work in Hotels Part-2 Suhel Khan

2. Aims • The main aim of this unit is to develop an understanding of how management functions can affect the performance of a business.

3. HRM Function Human resources are one of the most important features of many businesses, especially in an economy where there is an increasing shift towards service-based industries. Human resources account for a large proportion of many businesses' costs and it is the people that invariably drive a business. Management of these resources therefore is an integral part of business success.

5. Background • First of all, we need to identify how we might measure that performance. This can be done through a number of ways: • Profit • Revenues • Accounting measures - Return on Capital Employed (ROCE), profit margin • Shareholder value - the share price x the number of shares issued - also known as the company value or market capitalization • Growth - in sales, size, Market share • Share price

6. One of the difficulties may be in pinpointing just what contribution the human resources in a business makes to any of the above measures, but there is no doubt that a business that does not involve management of human resources correct will experience a number of problems. Poor motivation leads to poor performance. This may manifest itself in: • Lower productivity levels • Poor quality products and services • High levels of complaints from customers • Loss of customers with subsequently lower revenues • Higher costs • Higher staff turnover • Poor industrial relations

7. Cont. • In addition, if human resources are managed ineffectively, then: • Teams may not function appropriately • Individuals may be placed in positions that do not maximize or utilize their skills • The culture of the business is not shared • Communication and decision making can be affected and mistakes occur • All of these affect the relationship between the business and its customers.

8. Job Analysis Job analysis is a formal and detailed study of jobs It refers to a scientific and systematic analysis of a job in order to obtain all pertinent facts about the job It is essentially a process of collecting and analyzing all pertinent data relating to a job

9. Differentiate between Job Description and Job Specification Job Description is a functional description of what the job entails. And define the purpose and scope of a job. It is a written record it contains title, location, duties, responsibilities, working conditions, hazards and relationship with other jobs. Job specification is a statement of the minimum acceptable human qualities required for the proper performance of a job. It includes physical, mental, social, psychological and behavioral characteristics of a person

10. Job Evaluation According to BIM, Job evaluation is “the process of analysis and assessment of jobs to ascertain reliably their relative worth using the assessment as the basis for a balanced wage structure” Job evaluation begins with job analysis and ends up with the classification of jobs according to their worth. A job cannot be evaluated unless and until it is analyzed.

11. Recruitment What is Recruitment? What is Procurement? The Difference Between Recruitment and Selection and Placement. Why Recruitment is more important for an organization? How not to recruit employees in the organization? General Factors affecting Recruitment:

12. The sources of Recruitment Internal Sources 1. Transfers 2. Promotions External Sources 1. Press Advertisements 2. Educational Institutions 3.Placement Agencies 4.Employment Exchanges 5.Labour Contractors 6.Unsolicited Applicants 7.Recommendations 8.Recruitment at Factory gate 9. Online

13. Recruitment Process Steps in Recruitment Process: 1. Requisitions for recruitment from other department 2. Locating and Developing the sources of Required number and type of employees 3. Identifying the prospective employees with required characteristics 4. Communicating the information about the organization, the job and the terms of conditions of service. 5. Encourage the identified candidates to apply for jobs In the organization. 6. Evaluating the effectiveness of recruitment process.

14. What is Selection? Selection is the process of choosing the most suitable persons out of all the applicants. Selection is a process of matching the qualifications of applicants with the job requirements. It is the process of weeding out unsuitable candidates and finally identify the most suitable candidate. The purpose of Selection is to pick up the right person for every job. Selection is negative process as it rejects a large number of unsuitable applicants from the pool.

15. Methods of Selection (a) Tests: 1. Aptitude Tests: Mental or Intelligence test Mechanical test Psycho-motor test 2. Achievement Tests: - Job Knowledge test - Work sample test 3. Personality Tests: Objective test Projective test Situation test 4. Interest Tests: Continued…

16. Methods of Selection (continued) (b) Interviews Informal Interview Formal Interview Patterned or Structured Interview Non-Directed or Unstructured Interview Depth Interview Group Interview Stress Interview Panel or Board Interview

17. Why Training is needed? To familiarize the employee with the company’s culture To increase the employee’s quantity and quality of output To enable the employee to do new jobs and prevent of his old skills become obsolete To prepare the employee for promotion to higher jobs To reduce supervision, wastage and accidents To build second line workers

18. Importance of Training 1. Higher productivity 2. Better quality of work 3. Less learning period 4. Cost Reduction 5. Reduced supervision 6. Low accident rate 7. High morale 8. Personal Growth 9. Organizational Climate

19. Steps in Training Programme 1. Identifying Training Needs- Present Performance – Desired Performance (Accepted Level of Performance) 2. Setting Training Objectives and Policy 3.Designing Training Programme 4. Conducting the Training 5. Follow up and Evaluation

20. Teamwork • Many businesses place an emphasis on the importance of teamwork. What makes a good team? A good team consists of people with different skills, abilities and characters. A successful team is able to blend these differences together to enable the organization to achieve its desired objectives. • Motivation • An important part of the retention of staff, reducing staff turnover and minimizing absenteeism at work is ensuring that staff are properly motivated. This is not as easy as it sounds. At first glance, you might be tempted to think that merely increasing wages is the way to motivate! Not so. Most thinkers on the subject would argue that motivation is a far more complex issue than merely 'money'.

21. Absenteeism • If staff are absent from work, they are unable to carry out the functions for which they have been employed. In many businesses, these functions have to be taken on by someone else - if not, the customer could suffer. Reducing absenteeism is an important feature of human resource management. • This stresses the importance to businesses of promoting a sensible 'work-life balance' policy in helping the business to achieve its goals. • Final Tasks • We have been looking at different aspects of human resource management. The guiding principle in all that you have covered is to remember that effective management of human resources contributes to the success of the firm. The policies and practices used by the firm set out the standards to which the firm seeks to aspire. They are designed, in most cases, to ensure that the right people are in the right jobs to help fulfill the business's objectives. • You might also have to consider how effective different methods of motivation technique might be in encouraging people to perform at their best or how policies related to the working environment might impact on productivity and efficiency.

22. Further Readings 1. Human Resource Management – Saiyadin - TMH Pub. 2. Human Resource Management – Dr. C.B. Gupta Sultan Chand and sons Pub. Personnel Management & Industrial Relations – P.C. Tripathi Himalaya Pub.