1. introduction to hospitality fifth edition john r. walker Chapter 16: Human Resources Management

2. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Chapter 16 Human Resources Management Human Resources Leadership Issues The Importance of Human Resources Human Resources Planning Employment Law Recruitment Selection Orientation

3. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Chapter 16 Human Resources Training and Development Performance Appraisal Employee Development Compensation Employee Assistance Programs Benefits Employee Retention Harassment Coaching and Counseling Trends

4. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Human Resources Leadership and Issues Human resources is frequently cited as a company’s most valuable asset Finding, retaining, and developing employees has become challenging: –Changing Demographics: In the U.S., the birth rate has slowed, the American population is aging, and more women and minorities are entering the hospitality workforce –Turnover: There are fewer job applicants who are often not qualified and when they are, frequently do not stay long –Legal Issues: Legislation and the enforcement of laws relating to the workplace have increased in recent years

5. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Importance of Human Resources Leadership in human resources is important because the hospitality experience is intangible –What makes the difference is service and professionalism Human resources is about attracting, selecting, orienting, training, coaching, counseling, disciplining, mentoring, developing, evaluating performance, supporting, and retaining employees –Other functions include: Creating job descriptions, developing job specifications, managing payroll and benefits, handling grievances, financial management, community involvement, and ensuring conformance to federal, state, and provincial legislation

6. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Figure 16–1 The Human Resources Division of a Midsize Hospitality Company

7. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Human Resources Planning A continuous process by which hospitality companies identify future needs and how they can be met It also includes the development of future supervisors and managers

8. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Human Resources Task Analysis: To examine every task of each employee to determine the best way of doing the particular task and its potential outcome on the guest experience Job description: A detailed description of the activities and outcomes expected of the person performing a specific job

9. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Human Resources Job Specification: Specifies the qualities and knowledge the person will need to do the job Productivity Standards: Measuring or timing how long it takes to do a given task

10. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Laws Civil Rights Act of 1964: –Prohibits discrimination on the basis of race, color, religion, sex, or national origin Equal Employment Opportunity Title VII of the Civil Rights Act: –Enforces equal employment opportunity for all persons seeking employment Equal Pay Act of 1963: –Requires women and men performing equal jobs to receive equal pay Age Discrimination in Employment Act of 1967: –Prohibits employers from discriminating against an employee because of age when older than 40 Immigration Reform & Control Act of 1986: –Makes it illegal to hire undocumented employees

11. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Laws Americans with Disabilities Act: –Forbids discrimination against people with disabilities in employment and the workplace Fair Labor Standards Act of 1938: –Established the minimum wage and the maximum number of workweek hours Pregnancy Discrimination Act of 1978: –Provides various protections for pregnant women under the law Drug Free Workplace Act of 1988: –Allows drug testing of all applicants Family & Medical Leave Act of 1993: –Requires employers to grant up to twelve weeks unpaid leave for birth, adoption, or care for an ill spouse, parent, or child, or for medical treatment

12. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Recruitment Finding the most suitable employee for an available position Figure 16-5: Recruitment & Selection Process:

13. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Recruitment Structured interview: An interview in which questions are prepared in advance and the interviewer only asks the questions listed on the interview sheet Unstructured interview: General questions are prepared before the interview, and interviewers ask additional questions in response to the candidate’s answers to questions Semistructured interview: A combination of the structured and unstructured interviews; a prepared list of questions is asked of all candidates followed by other questions that arise from the prepared questions

14. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Selection Selecting the best-qualified—not necessarily the most qualified—candidate for the available position Part of selection might involve tests to ensure that candidates possess the requisite interpersonal skills or knowledge to do the job Some companies require new employees to take a drug-screening test Assuming the reference and background checks are positive, a formal offer is sometimes made in writing to the prospective employee

15. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Orientation A way to introduce new employees to the company and the specifics of the workplace and associates Employees learn details about the corporation’s history, policies, procedures, compensation, and benefits Safety and fire prevention are also introduced, as well as the property’s service philosophy

16. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Training and Development An ongoing activity conducted by a training department, a training manager, line management, or specially trained individuals within each department The first step in establishing a training program is to identify the training needs and then set training objectives

17. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Training and Development There are 5 main types of employee training: –Apprentice training is specially designed to teach participants the correct way to do a particular task—this often follows the “tell me, show me, do it” routine –Simulation training simulates the actual workplace –Certification training enables individuals to gain corporate or professional certification by attaining passing scores on practical or theoretical tests –Corporate-required training includes the many workshops and seminars on topics such as safety, workplace values, ethics, etc. –On-the-job training helps maintain standards by having managers, supervisors, trainers, or fellow employees coach individuals in the most effective way to do the required work

18. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Performance Appraisal To compare an employee’s actual performance to pre-established standards as described in the job description 3 common distortions in performance appraisals include: –Recent behavior influence –The halo effect –Like-me syndrome

19. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Employee Development A natural progression from appraisal The employee and supervisor make a development plan to outline the development activity and indicate when the development will take place Development is usually used for non- technical training, such as effective communications, team building, motivation, and leadership

20. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Compensation The compensation package includes wages, salaries, benefits, and incentives Compensation and benefits can amount to 30- 45% of sales—making them the highest cost factors in the hospitality industry Exempt employees are not paid overtime because they are performing managerial supervisory duties a minimum of 60% of their work time Nonexempt employees are paid overtime for any hours worked beyond the 35 or 40 hour workweek, dependent on state laws and union contracts

21. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Employee Assistance Programs Offers confidential and professional counseling and referral services to employees Employees may request help (assistance) in confidence—without losing their jobs The emphasis of most EAPs is on prevention and on intervening before a crisis stage is reached Typically, EAP programs assist employees with drug- and alcohol-related problems and personal finance, marital, career and job, and legal issues

22. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Benefits Law mandates some benefits: Social Security, workers’ compensation, and unemployment compensation Other benefits are offered by employers as a part of the total compensation package –Pension, health, optical, and dental are the most frequent plans offered Some companies offer employee stock ownership plans (ESOPs) –The employer puts money (the amount is based on the employee’s contribution to the company and its profits) into an account for the employee, where the contributions grow until the employee retires or leaves the company

23. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Employee Retention Opposite of employee turnover! The hospitality industry has high turnover—ranging from a low of 30% to more than 100% If management provides good leadership, is fair and equitable, creates trust, and has a hospitality spirit, there is an increased likelihood of good retention There are several retention strategies: Team building, self directed teams, TQM, empowerment, and a good benefits plan

24. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Harassment The workplace must be kept free from all forms of harassment, including those based on sex, race, religious choice, ethnic background, and age Harassment cases can be very costly to defend, and jury awards have reached the millions of dollars

25. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Coaching One of the best methods of coaching is to set up a mentoring program for all employees –Mentors advise employees on job, professional, and career-related topics Coaches establish goals with the employees and help make action plans for the employees to reach the goals –Coaches support and encourage their employees to reach their goals by constantly monitoring their performance and offering advice to help if needed

26. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Counseling Counseling is used when employees are performing below the standards expected of them and when the results of their work are not acceptable

27. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. Trends There is a critical labor shortage problem There is an increased focus on employee retention There is increased use of flextime Food and beverage management positions are difficult to fill There are fewer people in the labor pool with basic reading, writing, and math skills Legal issues in hospitality employment are of increasing concern to hospitality operators as more lawsuits are brought against them Training has become more important as hospitality corporations strive to gain a competitive advantage by offering outstanding guest service

28. Introduction to Hospitality Fifth Edition John Walker Copyright ©2009 by Pearson Education, Inc. Upper Saddle River, New Jersey 07458 All rights reserved. The End