HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 The Significance of Human Resources January 28, 2010

HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Why Do So Many Hate HR? WHO hates HR? Your experience and perceptions

HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Some Basics of the Hotel and Restaurant Industry Significant portion of economy 8.1% of all employment 8.80 million employees in Foodservice and drinking places 1.71 million employees in Hotels, Motels, Casinos, and B&Bs 6.7% if all establishments 560,353 establishments Higher unemployment Greater growth in employment Lower wages

HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Key Issues for HRM in Hospitality: What is Keeping Managers Up at Night? Leveraging Human Resources is managers’ biggest concern (for both restaurants and hotels) Industry employs large numbers of lower-skilled workers Low-skilled workers have significant impact on customer Industries pay less for higher levels of skill Very high turnover (and sometimes, too low)

HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Looming Challenges for HR Supply versus demand for labor Aging workforce Increased gender and racial diversity More dual career couples and single parents Increasing benefit costs (25% of costs come from employee benefits) Decreased employee tenures Internationalization of workforce – more diversity of the workforce

HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Why Do So Many Hate HR?

HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 How Much Do People Know? Manager perceptions 57% correct Student performance Your performance: Last Year’s undergrads: Last Year’s MMH: Your grades by section Management Practices: General Employment Practices: Training and Development: Staffing: Compensation and Benefits:

HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 The Biggest Errors

HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 What Do We Need to Learn? Knowledge gaps: Why so many misperceptions of staffing? Greater professionalism in HR Trend to evidence-based management

HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 What Do We Need to Learn? Strategic gaps: How can HR contribute? HR as strategic partner

HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 What Do We Need to Learn? Action gaps: What do you need to know how to do? How does HR get the resources to make good investments? How do you make your HR department be strategic?

HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 The Goal and Mission of HRM Goal: Contribute to business success! Mission: To get … the right person, to the right place, at the right time, for the right price! and giving that employee… the ability the motivation, and the opportunity to perform!

HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Organizational Performance Employee Behaviors Organizational Costs HR Contribution Model HR Practices

HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 Employee and Labor/Management Relations HR Planning and Analysis Equal Employment Opportunity Staffing HR Development Compensation and Benefits Health, Safety, and Security Goal

HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 What Does it Mean to Contribute to Business Success? Improve Firm Performance Productivity Efficiency Quality Service Legal Compliance Preparation for the future Ethics Other priorities

HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 How to Accomplish the Mission: Obtain HR Fit Human resource policies should … Fit with the environment (Environmental Fit) Fit with the organization’s strategy & characteristics (Organizational Fit) Fit with the other HR policies (Internal HR Fit)

HA 7712: Human Resource ManagementProfessor Sturman, Spring 2010 HR In Your Futures Your future HR tasks Human resource issues will be your largest headache You will need to make selection, compensation, and appraisal decisions You will need to decide where to devote resources You will need to fire people Is your HR department working for you? Can your HR person identify your organization’s goals? Does your HR person know who your customer is? How does the HR department add value?