Introduction to HRM - Introduction to HRM - Factors Influencing the Factors Influencing the

Nature of Work in Nature of Work in Hotels Part-2 Hotels Part-2

Suhel KhanSuhel Khan

AimsAims

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

HRM Function HRM Function

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

Background Background

First of all, we need to identify how we might First of all, we need to identify how we might measure that performance. This can be done measure that performance. This can be done through a number of ways:through a number of ways:

Profit Profit Revenues Revenues Accounting measures - Return on Capital Accounting measures - Return on Capital

Employed (ROCE), profit margin Employed (ROCE), profit margin Shareholder value - the share price x the number Shareholder value - the share price x the number

of shares issued - also known as the company of shares issued - also known as the company value or market capitalization 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 One of the difficulties may be in pinpointing just what contribution the human resources in a business makes to contribution the human resources in a business makes to any of the above measures, but there is no doubt that a any of the above measures, but there is no doubt that a business that does not involve management of human business that does not involve management of human resources correct will experience a number of problems. resources correct will experience a number of problems. Poor motivation leads to poor performance. This may Poor motivation leads to poor performance. This may manifest itself in: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.Cont.

In addition, if human resources are In addition, if human resources are managed ineffectively, then:managed ineffectively, then:

Teams may not function appropriately Teams may not function appropriately Individuals may be placed in positions that Individuals may be placed in positions that

do not maximize or utilize their skills 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 Communication and decision making can

be affected and mistakes occur be affected and mistakes occur All of these affect the relationship between All of these affect the relationship between

the business and its customers.the business and its customers.

Job AnalysisJob Analysis

Job analysis is a formal and detailed Job analysis is a formal and detailed study of jobsstudy of jobs

It refers to a scientific and systematic It refers to a scientific and systematic analysis of a job in order to obtain all analysis of a job in order to obtain all pertinent facts about the jobpertinent facts about the job

It is essentially a process of collecting It is essentially a process of collecting and analyzing all pertinent data relating and analyzing all pertinent data relating to a jobto a job

Differentiate between Job Description Differentiate between Job Description

and Job Specificationand Job Specification Job Description is a Job Description is a

functional description of functional description of what the job entails. what the job entails. And define the purpose And define the purpose and scope of a job. It is and scope of a job. It is a written record it a written record it contains title, location, contains title, location, duties, responsibilities, duties, responsibilities, working conditions, working conditions, hazards and relationship hazards and relationship with other jobs.with other jobs.

Job specification is a Job specification is a statement of the statement of the minimum acceptable minimum acceptable human qualities human qualities required for the proper required for the proper performance of a job. performance of a job.

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

Job EvaluationJob EvaluationAccording to BIM, Job evaluation is “the According to BIM, Job evaluation is “the

process of analysis and assessment of process of analysis and assessment of jobs to ascertain reliably their relative jobs to ascertain reliably their relative worth using the assessment as the basis worth using the assessment as the basis for a balanced wage structure” for a balanced wage structure”

Job evaluation begins with job analysis Job evaluation begins with job analysis and ends up with the classification of jobs and ends up with the classification of jobs according to their worth. A job cannot be according to their worth. A job cannot be evaluated unless and until it is analyzed.evaluated unless and until it is analyzed.

RecruitmentRecruitmentWhat is Recruitment?What is Recruitment?What is Procurement?What is Procurement?The Difference Between Recruitment and The Difference Between Recruitment and

Selection and Placement. Selection and Placement. Why Recruitment is more important for an Why Recruitment is more important for an

organization? organization? How not to recruit employees in the How not to recruit employees in the

organization?organization?General Factors affecting General Factors affecting

Recruitment: Recruitment:

The sources of RecruitmentThe sources of RecruitmentInternal Internal

SourcesSources1. Transfers1. Transfers2. Promotions2. Promotions

External SourcesExternal Sources 1. Press Advertisements1. Press Advertisements 2. Educational Institutions2. Educational Institutions 3.Placement Agencies3.Placement Agencies 4.Employment Exchanges4.Employment Exchanges 5.Labour Contractors5.Labour Contractors 6.Unsolicited Applicants6.Unsolicited Applicants 7.Recommendations7.Recommendations 8.Recruitment at Factory 8.Recruitment at Factory

gategate 9. Online9. Online

Recruitment ProcessRecruitment Process Steps in Recruitment Process:Steps in Recruitment Process: 1. Requisitions for recruitment from other 1. Requisitions for recruitment from other

departmentdepartment 2. Locating and Developing the sources of 2. Locating and Developing the sources of

Required number and type of employeesRequired number and type of employees 3. Identifying the prospective employees 3. Identifying the prospective employees

with required characteristicswith required characteristics 4. Communicating the information about the 4. Communicating the information about the

organization, the job and the terms of organization, the job and the terms of conditions of service.conditions of service.

5. Encourage the identified candidates to 5. Encourage the identified candidates to apply for jobsapply for jobs

In the organization.In the organization. 6. Evaluating the effectiveness of 6. Evaluating the effectiveness of

recruitment process. recruitment process.

What is Selection?What is Selection? Selection is the process of choosing the most Selection is the process of choosing the most

suitable persons out of all the applicants. suitable persons out of all the applicants. Selection is a process of matching the Selection is a process of matching the

qualifications of applicants with the job qualifications of applicants with the job requirements. requirements.

It is the process of weeding out unsuitable It is the process of weeding out unsuitable candidates and finally identify the most suitable candidates and finally identify the most suitable candidate. candidate.

The purpose of Selection is to pick up the right The purpose of Selection is to pick up the right person for every job.person for every job.

Selection is negative process as it rejects a large Selection is negative process as it rejects a large number of unsuitable applicants from the pool.number of unsuitable applicants from the pool.

Methods of SelectionMethods of Selection (a) Tests:(a) Tests: 1. Aptitude Tests:1. Aptitude Tests:

Mental or Mental or Intelligence testIntelligence test

Mechanical testMechanical testPsycho-motor testPsycho-motor test

2. Achievement Tests:2. Achievement Tests:

- Job Knowledge test- Job Knowledge test

- Work sample test- Work sample test

3. Personality 3. Personality Tests:Tests:Objective testObjective testProjective testProjective testSituation testSituation test

4. Interest Tests:4. Interest Tests: Continued…Continued…

Methods of SelectionMethods of Selection (continued) (continued) (b) Interviews(b) Interviews

1.1. Informal InterviewInformal Interview

2.2. Formal InterviewFormal Interview

3.3. Patterned or Structured InterviewPatterned or Structured Interview

4.4. Non-Directed or Unstructured InterviewNon-Directed or Unstructured Interview

5.5. Depth InterviewDepth Interview

6.6. Group InterviewGroup Interview

7.7. Stress InterviewStress Interview

8.8. Panel or Board InterviewPanel or Board Interview

Why Training is needed?Why Training is needed?To familiarize the employee with the company’s To familiarize the employee with the company’s

culturecultureTo increase the employee’s quantity and quality of To increase the employee’s quantity and quality of

outputoutputTo enable the employee to do new jobs and prevent To enable the employee to do new jobs and prevent

of his old skills become obsoleteof his old skills become obsoleteTo prepare the employee for promotion to higher To prepare the employee for promotion to higher

jobs jobs To reduce supervision, wastage and accidentsTo reduce supervision, wastage and accidentsTo build second line workersTo build second line workers

Importance of TrainingImportance of Training1. Higher productivity1. Higher productivity2. Better quality of work2. Better quality of work3. Less learning period3. Less learning period4. Cost Reduction 4. Cost Reduction 5. Reduced supervision5. Reduced supervision6. Low accident rate6. Low accident rate7. High morale7. High morale8. Personal Growth8. Personal Growth9. Organizational Climate9. Organizational Climate

Steps in Training ProgrammeSteps in Training Programme

1. Identifying Training Needs- Present 1. Identifying Training Needs- Present Performance – Desired Performance Performance – Desired Performance (Accepted Level of Performance)(Accepted Level of Performance)

2. Setting Training Objectives and Policy2. Setting Training Objectives and Policy3.Designing Training Programme3.Designing Training Programme4. Conducting the Training4. Conducting the Training5. Follow up and Evaluation5. Follow up and Evaluation

TeamworkTeamwork Many businesses place an emphasis on the importance of Many businesses place an emphasis on the importance of

teamwork. What makes a good team? A good team consists teamwork. What makes a good team? A good team consists of people with different skills, abilities and characters. A of people with different skills, abilities and characters. A successful team is able to blend these differences together successful team is able to blend these differences together to enable the organization to achieve its desired objectives.to enable the organization to achieve its desired objectives.

MotivationMotivation An important part of the retention of staff, reducing staff An important part of the retention of staff, reducing staff

turnover and minimizing absenteeism at work is ensuring turnover and minimizing absenteeism at work is ensuring that staff are properly motivated. This is not as easy as it that staff are properly motivated. This is not as easy as it sounds. At first glance, you might be tempted to think that sounds. At first glance, you might be tempted to think that merely increasing wages is the way to motivate! Not so. merely increasing wages is the way to motivate! Not so. Most thinkers on the subject would argue that motivation is Most thinkers on the subject would argue that motivation is a far more complex issue than merely 'money'. 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 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 which they have been employed. In many businesses, these functions have to be taken on by someone else - if not, the customer could suffer. to be taken on by someone else - if not, the customer could suffer. Reducing absenteeism is an important feature of human resource Reducing absenteeism is an important feature of human resource management.management.

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

Final TasksFinal Tasks We have been looking at different aspects of human resource We have been looking at different aspects of human resource

management. The guiding principle in all that you have covered is to management. The guiding principle in all that you have covered is to remember that effective management of human resources contributes 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 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 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 cases, to ensure that the right people are in the right jobs to help fulfill the business's objectives.business's objectives.

You might also have to consider how effective different methods of You might also have to consider how effective different methods of motivation technique might be in encouraging people to perform at their motivation technique might be in encouraging people to perform at their best or how policies related to the working environment might impact on best or how policies related to the working environment might impact on productivity and efficiency.productivity and efficiency.

Further ReadingsFurther Readings1. Human Resource Management – 1. Human Resource Management –

Saiyadin - TMH Pub.Saiyadin - TMH Pub.2. Human Resource Management – Dr. 2. Human Resource Management – Dr.

C.B. Gupta Sultan Chand and sons Pub.C.B. Gupta Sultan Chand and sons Pub.Personnel Management & Industrial Personnel Management & Industrial

Relations – P.C. Tripathi Himalaya Pub.Relations – P.C. Tripathi Himalaya Pub.