Introduction to Human Resources in the Hospitality Industry

Introduction to Human Resources in the Hospitality Industry Chapter 1Learning ObjectivesDescribe the travel and tourism industry and the hospitality segments within it.Discuss how the human resources function relates to the management of hospitality organizations.Learning ObjectivesIdentify specific HR responsibilities which are important in most hospitality organizations. Describe priority challenges that impact HR activities.Explain the role of ethics in HR management.Overview of Hospitality IndustryHospitality industry: The range of for-profit and not-for profit organizations that provide lodging and/or accommodations including foodservices for people when they are away from their homes.Overview of Hospitality IndustryTravel and tourism industry includes:Transportation servicesHospitality industryLodgingFoodservicesOthersDestination businessesOverview of Hospitality IndustryHuman Resources (HR): The persons employed by a hospitality or tourism organization.Entry-level employees: Staff members who do not have supervisory or management responsibilities. Overview of Hospitality IndustryFranchisor: The person or organization that owns a brand and sells the rights to using it within the requirements of a contractual relationship.Franchisee: The person or organization owning or leasing the property and building who purchases the right to use a brand name for a specified time at an agreed-upon cost and according to contractual agreements.Managing HR in the OrganizationLabor-intensive: The situation in which people rather than technology and equipment are used to provide products and services for an organization’s consumers.Human Resources Management (HRM): Processes used by a hospitality or tourism organization to enhance its performance by effectively using all of its staff members.Managing HR in the OrganizationManagement process: The process of planning, organizing, staffing, supervising, controlling, and appraising organizational resources to attain goals.Managing HR in the Organization Managing HR in the OrganizationResources: What an organization has available to achieve goals. Examples: people (human resources), money, time, machinery, processes and procedures, energy (utilities) and products such as food, beverages, and supplies.Managing HR in the OrganizationBasic management functions include human resources responsibilities:PlanningOrganizingStaffingSupervisingControllingAppraisingHuman Resources ActivitiesHuman Resources Department: The department within a large hospitality or tourism organization with the responsibility for recruiting, screening, and developing staff members. Department members: Administer compensation/benefit programsCoordinate safety practicesImplement labor law requirements Administer collective bargaining agreementsHuman Resources ActivitiesAdditional Activities:Recruiting/selecting Training and developmentProtection and communicationsManaging HR in the OrganizationJob descriptions: A list of tasks which a person working within a specific position must perform.Managers: Staff members in the organization that direct the work of supervisors.Supervisors: Staff members in the organization that direct the work of entry-level personnel.Managing HR in the OrganizationCorporate culture: Shared beliefs, experiences and norms that influence how “things are done” within an organization.Value-added: The concept that the benefits of money spent on something are worth more to an organization than the amount of money that is spent on its purchase. HR management must add value to an organization.Managing HR in the Organization Managing HR in the OrganizationEmployee union: An organization of employees who act together to protect and promote their interests by collective bargaining with representatives of the hospitality organization.Managing HR in the OrganizationWork Procedure: A course of action or the steps used to describe how a work task should be done.Empowerment: The act of authorizing employees to make discretionary decisions within their areas of responsibility.HR ResponsibilitiesExecutive committee: A group comprised of department heads that serves as the organization’s key management team and who are responsible for the overall management of the organization.HR Challenges Recruiting and selecting qualified employeesEmployee turnover: The proportion of total employees replaced during a specific time period.  HR Challenges Retaining and rewarding the best employees Leadership developmentManaging labor and benefits costsMeasuring the effectiveness of the HR function HR and Ethical ConcernsEthics: A set of rules or principles that define “what is right” and “what is wrong” as decisions are made. Business Ethics: The use of ethical judgment as managers make organizational decisions.HR and Ethical ConcernsCode of ethics: A statement that outlines broad concepts to guide ethical decision-making.HR and Ethical ConcernsHospitality organizations develop ethical codes for several reasons including:To identify a foundation of acceptable behaviors.To promote standards to guide decision-making.To provide a benchmark for evaluating potential decisions.To support the responsibility and obligations that decision-makers have to their constituents.