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

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

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. 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.

Background First of all, we need to identify how we might measure that performance. This can be done through a number of ways: First of all, we need to identify how we might measure that performance. This can be done through a number of ways: Profit Profit Revenues Revenues Accounting measures - Return on Capital Employed (ROCE), profit margin 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 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 Growth - in sales, size, Market share Share price Share price

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: 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 Lower productivity levels Poor quality products and services Poor quality products and services High levels of complaints from customers High levels of complaints from customers Loss of customers with subsequently lower revenues Loss of customers with subsequently lower revenues Higher costs Higher costs Higher staff turnover Higher staff turnover Poor industrial relations Poor industrial relations

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

Job Analysis Job analysis is a formal and detailed study of jobs 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 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 It is essentially a process of collecting and analyzing all pertinent data relating to a job

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 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. 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 It includes physical, mental, social, psychological and behavioral characteristics of a person

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” 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. 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.

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

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

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

What is Selection? Selection is the process of choosing the most suitable persons out of all the applicants. 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. 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. 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. 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. Selection is negative process as it rejects a large number of unsuitable applicants from the pool.

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

Methods of Selection (continued) (b) Interviews (b) Interviews 1. Informal Interview 2. Formal Interview 3. Patterned or Structured Interview 4. Non-Directed or Unstructured Interview 5. Depth Interview 6. Group Interview 7. Stress Interview 8. Panel or Board Interview

Why Training is needed? To familiarize the employee with the company’s culture To familiarize the employee with the company’s culture To increase the employee’s quantity and quality of output 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 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 prepare the employee for promotion to higher jobs To reduce supervision, wastage and accidents To reduce supervision, wastage and accidents To build second line workers To build second line workers

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

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

Teamwork 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. 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 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'. 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'.

Absenteeism 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. 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. This stresses the importance to businesses of promoting a sensible 'work-life balance' policy in helping the business to achieve its goals. Final Tasks 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. 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. 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.

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