Transcript Introduction to HRM - Factors Influencing the Nature of

Introduction to HRM Factors Influencing the
Nature of Work in Hotels
Part-2
Suhel Khan
Aims
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The main aim of this unit is to develop an
understanding of how management
functions can affect the performance of a
business.
HRM Function
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Human resources are one of the most
important features of many businesses,
especially in an economy where there is
an increasing shift towards service-based
industries. Human resources account for a
large proportion of many businesses' costs
and it is the people that invariably drive a
business. Management of these resources
therefore is an integral part of business
success.
Background
First of all, we need to identify how we might measure
that performance. This can be done through a number
of ways:
 Profit
 Revenues
 Accounting measures - Return on Capital Employed
(ROCE), profit margin
 Shareholder value - the share price x the number of
shares issued - also known as the company value or
market capitalization
 Growth - in sales, size, Market share
 Share price
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One of the difficulties may be in pinpointing just what contribution
the human resources in a business makes to any of the above
measures, but there is no doubt that a business that does not
involve management of human resources correct will experience a
number of problems. Poor motivation leads to poor performance.
This may manifest itself in:
Lower productivity levels
Poor quality products and services
High levels of complaints from customers
Loss of customers with subsequently lower revenues
Higher costs
Higher staff turnover
Poor industrial relations
Cont.
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In addition, if human resources are managed
ineffectively, then:
Teams may not function appropriately
Individuals may be placed in positions that do
not maximize or utilize their skills
The culture of the business is not shared
Communication and decision making can be
affected and mistakes occur
All of these affect the relationship between the
business and its customers.
Job Analysis
 Job
analysis is a formal and detailed
study of jobs
 It refers to a scientific and systematic
analysis of a job in order to obtain all
pertinent facts about the job
 It is essentially a process of collecting
and analyzing all pertinent data relating
to a job
Differentiate between Job Description and
Job Specification
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Job Description is a
 Job specification is a
functional description of
statement of the
what the job entails.
minimum acceptable
And define the purpose
human qualities
and scope of a job. It is
required for the proper
a written record it
performance of a job.
contains title, location,
 It includes physical,
duties, responsibilities,
mental, social,
working conditions,
psychological and
hazards and relationship
behavioral
with other jobs.
characteristics of a
person
Job Evaluation
 According
to BIM, Job evaluation is “the
process of analysis and assessment of
jobs to ascertain reliably their relative
worth using the assessment as the basis
for a balanced wage structure”
 Job evaluation begins with job analysis
and ends up with the classification of jobs
according to their worth. A job cannot be
evaluated unless and until it is analyzed.
Recruitment
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What is Recruitment?
 What is Procurement?
 The Difference Between Recruitment and
Selection and Placement.
 Why Recruitment is more important for an
organization?
 How
not to recruit employees in the
organization?
 General Factors affecting
Recruitment:
The sources of Recruitment
 Internal
Sources  External Sources
 1. Press Advertisements
 1. Transfers
 2. Educational Institutions
 2. Promotions
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3.Placement Agencies
4.Employment Exchanges
5.Labour Contractors
6.Unsolicited Applicants
7.Recommendations
8.Recruitment at Factory
gate
9. Online
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Recruitment Process
Steps in Recruitment Process:
1. Requisitions for recruitment from other
department
2. Locating and Developing the sources of
Required number and type of employees
3. Identifying the prospective employees with
required characteristics
4. Communicating the information about the
organization, the job and the terms of conditions
of service.
5. Encourage the identified candidates to apply for
jobs
In the organization.
6. Evaluating the effectiveness of recruitment
process.
What is Selection?
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Selection is the process of choosing the most
suitable persons out of all the applicants.
Selection is a process of matching the
qualifications of applicants with the job
requirements.
It is the process of weeding out unsuitable
candidates and finally identify the most suitable
candidate.
The purpose of Selection is to pick up the right
person for every job.
Selection is negative process as it rejects a large
number of unsuitable applicants from the pool.
Methods of Selection
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(a) Tests:
 1. Aptitude Tests:
 Mental or
Intelligence test
 Mechanical test
 Psycho-motor test
 2. Achievement Tests:
- Job Knowledge test
- Work sample test
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3. Personality Tests:
 Objective test
 Projective test
 Situation test
 4. Interest Tests:
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Continued…
Methods of Selection (continued)
(b) Interviews
1. Informal Interview
2. Formal Interview
3. Patterned or Structured Interview
4. Non-Directed or Unstructured Interview
5. Depth Interview
6. Group Interview
7. Stress Interview
8. Panel or Board Interview
Why Training is needed?
To familiarize the employee with the company’s
culture
 To increase the employee’s quantity and quality
of output
 To enable the employee to do new jobs and
prevent of his old skills become obsolete
 To prepare the employee for promotion to higher
jobs
 To reduce supervision, wastage and accidents
 To build second line workers
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Importance of Training
Higher productivity
 2. Better quality of work
 3. Less learning period
 4. Cost Reduction
 5. Reduced supervision
 6. Low accident rate
 7. High morale
 8. Personal Growth
 9. Organizational Climate
Steps in Training Programme
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Identifying Training Needs- Present
Performance – Desired Performance
(Accepted Level of Performance)
 2. Setting Training Objectives and Policy
 3.Designing Training Programme
 4. Conducting the Training
 5. Follow up and Evaluation
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Teamwork
Many businesses place an emphasis on the importance of
teamwork. What makes a good team? A good team consists of
people with different skills, abilities and characters. A successful
team is able to blend these differences together to enable the
organization to achieve its desired objectives.
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Motivation
An important part of the retention of staff, reducing staff turnover
and minimizing absenteeism at work is ensuring that staff are
properly motivated. This is not as easy as it sounds. At first glance,
you might be tempted to think that merely increasing wages is the
way to motivate! Not so. Most thinkers on the subject would argue
that motivation is a far more complex issue than merely 'money'.
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Absenteeism
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 to be taken on
by someone else - if not, the customer could suffer. Reducing absenteeism is an
important feature of human resource management.
This stresses the importance to businesses of promoting a sensible 'work-life balance'
policy in helping the business to achieve its goals.
Final Tasks
We have been looking at different aspects of human resource management. The
guiding principle in all that you have covered is 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 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 business's objectives.
You might also have to consider how effective different methods of motivation
technique might be in encouraging people to perform at their best or how policies
related to the working environment might impact on productivity and efficiency.
Further Readings
Human Resource Management –
Saiyadin - TMH Pub.
 2. Human Resource Management – Dr.
C.B. Gupta Sultan Chand and sons Pub.
 Personnel Management & Industrial
Relations – P.C. Tripathi Himalaya Pub.
 1.