Critical Issues in Human Resources Management

1Critical Issues in Human Resources ManagementChapter 112Learning ObjectivesExplain how the responsibilities of HR managers are affected in unionized operations.Explain guidelines helpful when hospitality operations are downsized.Identify planning and implementation alternatives for outsourcing.3Learning ObjectivesDescribe benefits of and procedures to implement diversity initiatives.Explain how HR activities can reduce employee turnover.Discuss why and how a hospitality organization contributes to its community.4Unionization In The Hospitality IndustryEmployee unions represent some hospitality organizations in metropolitan areas. Union (employee): An organization comprised of employees who act together to promote and protect their mutual interests through collective bargaining.5Unionization In The Hospitality IndustryHR practices in unionized operations must comply with the terms of the applicable labor contract. Labor contract: A written agreement covering a specific time that explains management’s expectations for employees and limits to management’s authority; also called a collective bargaining agreement.6Unionization In The Hospitality IndustryIn many cases unions can increase the employees’ bargaining power. For example, the grievance process detailed in union contracts formalizes how managers communicate with employees if problems arise. Grievance process: A process explained in union contracts and designed to resolve employee complaints. 7The Unionization ProcessEmployees join unions in a several-step process:Initial contacts are made by employees to union representatives or union representatives may begin a membership drive within an organization.A campaign is undertaken to secure signed authorization cards from at least 30 percent of applicable employees requesting that a specific union represent them. 8The Unionization ProcessAfter the union receives signed authorization cards, the union or employees can request voluntary recognition of the union. The employer may comply or, alternatively, request that cards be verified by a neutral third party. If voluntary recognition is granted, contract bargaining can begin. 9The Unionization ProcessIf the employer refuses voluntary recognition, a petition is made to the National Labor Relations Board (NLRB) requesting an election to determine if the majority of eligible voting employees want the union to become their certified bargaining unit. 10The Unionization ProcessA union drive is conducted in which union advocates and management must comply with strict requirements as they make their cases about why employees should or should not affiliate with the union. If the union receives a majority vote, the NLRB certifies and recognizes the union as the exclusive bargaining unit for the employer. As this occurs, there is mandatory recognition. 11The Collective Bargaining ProcessCollective bargaining: The process of negotiating and administering written agreements between union and management officials. Concession (collective bargaining): The act of conceding (yielding) something as a labor contract is negotiated. 12The Collective Bargaining ProcessRight-to-work law: A state law that prohibits a requirement that employees join a union. Agency shop: A labor agreement provision requiring employees to pay union dues and fees even if they do not join the union. 13The Collective Bargaining ProcessOpen shop: A labor agreement provision in which employees are not required to join the union and do not need to pay union dues and fees if they are not union members. Dues check-off: A process by which employers withhold union dues from the paychecks of union members. 14The Collective Bargaining Process15The Collective Bargaining ProcessTypical union agreements contain clauses addressing:Recognition of unionWages and benefitsVacation and holidaysWorking conditionsLayoffsManagement rights16The Collective Bargaining ProcessTypical union agreements contain clauses addressing: (cont.)Working hoursEmployee seniorityArbitration Union renewal clause 17The Collective Bargaining ProcessMany employee and management rights and responsibilities may not differ significantly between unionized operations and their nonunionized counterparts.These special concerns relate to most employees, should be addressed during orientation, and should be administered equitably and consistently in all hospitality organizations regardless of union affiliation. 18Downsizing Hospitality OperationsOutsourcing: The transfer of responsibility to perform services that have been (or could be) undertaken by the organization’s employees to an external service provider.Downsizing: The reduction of staff or labor hours to create greater operating efficiencies.Attrition: The reduction in an organization’s workforce because of voluntary or involuntary employee separation. 19Downsizing AlternativesThe impact of downsizing is difficult to reverse, so several alternatives should be considered, these include: Cross-training.Transfer within the organization (if a multi-unit organization).Reduced employee hours and/or wages.Attrition including the use of early retirement and/or employee buyout incentives and leaves of absence.20Downsizing AlternativesThe impact of downsizing is difficult to reverse, so several alternatives should be considered, these include (cont.): Involuntary separation Note that organizations bound by collective bargaining agreements must typically use seniority-based factors when deciding which employees to terminate.Leaves without pay.Flexible work arrangements including part-time, flexible work hours, variable workweeks, and job-sharing.21Downsizing: Transitional ServicesOutplacement assistance programs can help downsized employees secure new employment (examples: resume writing assistance and information about internet job placement sites).22The Law and DownsizingThe Worker Adjustment and Retraining Notification Act (WARN) offers protection to workers by requiring employers to provide notice 60 days in advance of the closing of an employment site or in the event of a mass layoff.This notice must be provided either directly to the affected workers or their representatives (labor union) or to the appropriate unit of local government. 23The Law and DownsizingExceptions to the 60-day notification rule:Faltering companyUnforeseeable business circumstancesNatural disaster24Outsourcing Outsourcing decisions must consider the organization’s mission and core business strategies. What is it trying to accomplish? What are the most important things it does? Management goals must focus on core business strategies, and some organizations then transfer noncore business functions to specialized service providers to provide required products and services at specified quality levels.25OutsourcingMaking an outsourcing decision involves the following steps:Determine exactly what is needed.Review resources available in-house relative to those available externally.Identify and evaluate potential bidders.26OutsourcingMaking an outsourcing decision involves the following steps: (cont.)Develop and issue a Request for Proposal (RFP).Evaluate proposal responses.Select a service provider and negotiate the contract.27OutsourcingMaking an outsourcing decision involves the following steps: (cont.)Administer the service agreement.Renegotiate or terminate the agreement at its expiration date.28OutsourcingOutsourcing HR FunctionsAdvantagesRisk ManagementCost EfficiencyEmployee development 29OutsourcingOutsourcing HR FunctionsDisadvantagesPoor PerformanceDistanceRecruitment problemsInformation leaksDependency 30Diversity In The Hospitality IndustryDiversity: The range of human characteristics and dimensions that impact the employees’ values, opportunities, and perceptions of themselves and others at work31Diversity In The Hospitality IndustryThe Case for Diversity:A welcoming and rewarding work environment encourages excellent job performance.The changing make-up of the U.S. labor force increasingly requires the employment of those with diverse personal dimensions.32Diversity In The Hospitality IndustryThe Case for Diversity: (cont.)When all employees are valued, turnover and absenteeism are minimized, and associated costs are reduced.A culture of understanding, respect, and cooperation encourages teamwork. 33Diversity In The Hospitality IndustryThe Case for Diversity: (cont.)Diverse backgrounds create more creative alternatives as decisions are made.Many consumers are attracted to businesses that employ staff members who reflect the diversity of those consumers. This improves the financial viability of the organization34HR and Turnover Management Managers can use three basic strategies to address labor shortages:Keep the people currently employed; reduce the turnover rate – Selecting the “right” people and using tactics to retain staff members are examples of ways to accomplish this.35HR and Turnover Management Managers can use three basic strategies to address labor shortages: (cont.)Increase productivity – When increased output that meets required standards is achieved using the same or a reduced number of labor hours, fewer personnel will be needed.36HR and Turnover Management Managers can use three basic strategies to address labor shortages: (cont.) Recruit from non-traditional labor markets - including “empty nesters” (parents of grown children), older workers seeking part-time employment and persons with physical and/or mental challenges.37The Organization As Community Citizen Corporate (social) responsibility: Relates to an organization’s efforts to address its commitments to its constituencies including guests, employees, other businesses including suppliers and investors, and to society and the community-at-large.Stakeholders: Groups, individuals, and organizations that are directly affected by an organization.38The Organization As Community Citizen Today’s society increasingly emphasizes that organizations be good corporate citizens. To do so they:Assume responsibility for controlling (minimizing) the pollution of air, water, and land.Stay clear of unethical and irresponsible business practices relating to consumers’ rights, unfair pricing, and being honest with advertising messages.