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Sheffield Hallam University: MSc: Hospitality Assignments
Assignment 1
A critical evaluation of the Human Resource Practices and Policies in an organisation
A definition of Human Resource Management *
A brief outline of the nature of the organization *
Identification and analysis of the various human resources management practices present in the organisation *
Evaluation of the effectiveness of each practice policy *
Ideas for improving human resource management practice & policy *
Workforce management function and management levels *
Evaluation of the likely efectiveness of ideas *
References *
A definition of Human Resource Management
Harvey (1994) suggests that "human resource management involves the total management of people within the firm, using the notion of people as valuable assets, increasing in value with time, an asset to be used to generate profit or maintain survival in a competitive world."
Mullins (1997) quotes Willman for whom human resource management is concerned with "mechanisms through which the organisation attracts candidates for employment, selects them, introduces them to the organisation’s structure and culture, motivates them to perform a given set of tasks, pays them for this and seeks to identify their potential for future development. It is then concerned with systems of promotion, manpower planning, succession planning and coping with labour turnover of one form or another."
Mullins (1997) also said: "The contributions from an effective personnel function are not always readily apparent and nor are they easy to identify. Over a period of time, however, some quantified measures should provide management with an indication of its effectiveness. Possible examples include labour costs, staff turnover and stability index, complaints from customers, absenteeism/timekeeping, breakages, scrap or waste, accidents at work, promotions and staff development, discipline and grievance procedures and dismissals."
A brief outline of the nature of the organization
The organisation described is a privately and closely owned hotel company that owns and manages hotels and catering businesses. There are more than 2,000 people working for the company but it has neither a Personnel Department nor a Human Resources Department. The company’s President thought that such departments were unnecessary because their function will cost money without delivering a tangible benefit. However, trying to satisfy its functions, he established that each manager of an hotel or catering business was responsible not only to transmit to its employees "the company’s philosophy" but to recruit and to train new employees and motivate all of them, old and new.
Identification and analysis of the various human resources management practices present in the organisation
The company president’s system of management is as described by Likert (1996) as system number 1 "Exploitive authoritative type where management uses fear and threats, communication is downward; superiors and subordinates are psychologically far apart and the bulk of decisions are taken at the top of the organisation."
Consequently, there is no written policy relating to the company’s strategy, culture, cost, potential, flexibility, etc.
The managers of the hotel and catering businesses met the President only once a year during the Company’s Annual Convention. At this occasion the President appears accessible and friendly and speaks about the state of the Company’s business, and the financial and business targets achieved or not achieved and the goals to strive for in the coming year. He always finishes his speech saying how important the human component is for the company, stressing that for the future growth of the company it is essential that every worker, including himself, performs his or her task in the best way.
Nevertheless, most of the those present at the successive Annual Conventions did not take much notice of the words of the President’s speech and all his promises related to the implementation of Human Resources Management, because for many years, there was nobody in the Head Office in charge of developing and implementing it.
Evaluation of the effectiveness of each practice policy
Despite the fact that there is neither written policy nor a personnel function or human resources department, people working in the Company are sufficiently satisfied with their work because their salary is reasonable and competitive with the market. In most of the cases, it allows the staff to maintain some status outside the company – an extrinsic outcome. However the staff do not have a strong bond towards the company because no one - except their immediate manager - appears to be concerned about them, their work, or if they have needs to grow in their work.
Consequently, the staff does not experience strong intrinsic outcomes. There are some workers for whom pay was the only outcome that they valued. However in the opposite way, there are other workers for whom pay and working conditions were not important enough. They need intrinsic outcomes such as praise or recognition of a job well done. In both cases the staff are not very much committed to the organisation.
Ideas for improving human resource management practice & policy
The implementation in the company of human resources management is without any doubt of immediate importance especially in view of the deterioration of the firm’s performance.
As Mullins (1997) writes: "The nature of human resources management will determine both business efficiency and the performance of individual members. It is important to think of intangible benefits such as improved morale, job satisfaction and staff development."
The company needs personnel policies and organisation. Lockwood (1992) sources Peter Drucker saying that he identified five basic "operations" to start implementing human resources management. In the first place, it is necessary to set objectives, deciding what should be done to achieve those objectives and communicating them to the people whose performance is needed to achieve them. Second, managers organise by dividing work activity into manageable groups. Next, managers motivate and communicate, making a team out of people responsible for various jobs. The fourth element is the job of measurement, analysing, appraising and interpreting performance. Fifth and finally, managers develop and direct people.
Managing people requires some relevant functions as planning and organising, motivating, communicating, leading, and controlling. Within each of these functions different levels of management will undertake different activities. Lockwood (1992) outlined such a ladder of responsibilities for the hospitality industry in the following chart.
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| Levels of management | Top management | Senior management | Middle manager | Supervisor |
| Typical job in hospitality | Managing director, chief executive | General manager, regional manager | Assistant manager, catering manager | Head waiter, head chef |
| 1. planning and organising | Overall policy – long term establishes organisation structure | Policy interpretation, medium term goals; determines unit structure | Policy implementation – short-term plans | Operating and day-to-day problem solving |
| 2. motivating | Policies on promotion, remuneration, and reward | Decisions on promotion etc.; providing an effective working environment | Job design and personal effort | Personal approach |
| 3. communicating | Policy statements, annual accounts, in house journals | Memoranda and meetings; letters | Memoranda and meeting; verbal and face-to-face | Verbal; face –to-face |
| 4. leading | Position | Modelling and directing | Modelling and participating | Participating |
| 5. controlling | Corporate aims and policies | Budgeting, targeting; design systems | Periodic monitoring and data collection | Day-to-day monitoring and implementing systems |
As Mullins (1997) said the implementation of human resources management should be based on philosophies of managerial behaviour and the employee relationship.
Those philosophies should include:
respect for the individual
the recognition of the staff’s needs and expectations at work
justice in treatment and a fair reward system
stability of employment
good working environment and conditions of service
opportunities for personnel development and career progression
democratic functioning of the organisation
full observance of all the laws and codes of conduct relating to employment.
Evaluation of the likely efectiveness of ideas
This evaluation of the implementation in the company is done in terms of acceptability to those involved in the business feasibility in terms of finance, resources and systems, and the extent to which the idea would improve organisational effectiveness and contribution to competitive advantage in this company.
The implementation of HR policies and procedures should be very positive and the staff’s acceptability very high if the managerial behaviour changes. This change should be a shared and committed responsibility. Everybody should be involved – from the autocratic President down The company should, post-implementation, be trying to achieve the aim to develop the potential of every member of staff, to obtain their best contribution which, obviously will contribute in a very positive way to the company’s performance.
It is important to note that the implementation and the daily activity of human resources management will cost money, which could prove to be a major stumbling block as far as the decision-maker, the president, is concerned.
But it is important to say that all the money invested by the company through staffing the organisation, which includes employee training, clarifying aims and objectives and motivating people will get evident benefits for the employees to help the customers thereby enhancing the company’s well-being. The company’s prestige and thus business will increase because its employees are well trained, friendly, motivated and knowledgeable about their work. Consequently, the customers’ satisfaction will rise because the company meets their expectations and demands. Finally, the employees will feel that they work for a company that is concerned about them, their professionalism and their future.
References
| D’Annuncio-Green, Norma "Developing international managers in the hospitality industry" (1997) MCB International Journal of Contemporary Hospitality Management. Vol 9 Issue 5/6 |
| Harvey, Barbara (1994) School of Leisure and Food Management MSc Hospitality Management. |
| Legge, K. "Human Resources Management: Rhetorics and Reality"(1995) Macmillan Basingstoke. |
| Likert, R in Pugh, S. Dereck & Hickson, David J. "Writers on Organisations" (1996) Penguin Books |
| Lockwood, A.& Jones, Peter "People and the Hotel Catering Industry" (1992) Cassell Educational Limited. |
| Mullins, J. Laurie "Hospitality Management. A Human Resources Approach" (1997) Addison Wesley Longman Limited. |
| Open University "The Effective Manager" Book 3 "Managing People"(1994) |
| Pugh, S. Dereck & Hickson, David J. "Writers on Organisations" (1996) Penguin Books |
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Sheffield Hallam University: MSc: Hospitality Assignments