This document contains lecture notes from a human resource management class. It discusses several topics: - The hotel and restaurant industry employs over 8 million workers and has high turnover and lower wages. - Key HR issues for the industry include leveraging human resources, high turnover, and employing many lower-skilled workers who impact customer experience. - Future challenges for HR include balancing supply and demand for labor as the workforce ages and becomes more diverse. Benefit costs are also rising. - The goal of HR is to contribute to business success by getting the right people in the right jobs at the right time and price, while motivating and developing employees.

1. HA 7712: Human Resource Management Professor Sturman, Spring 2010
The Significance of Human Resources
January 28, 2010

2. HA 7712: Human Resource Management Professor Sturman, Spring 2010
Why Do So Many Hate HR?
• WHO hates HR?
• Your experience and perceptions

3. HA 7712: Human Resource Management Professor Sturman, Spring 2010
Some Basics of the Hotel and
Restaurant Industry
• Significant portion of economy
• 8.1% of all employment
• 8.80 million employees in Foodservice and drinking places
• 1.71 million employees in Hotels, Motels, Casinos, and B&Bs
• 6.7% if all establishments
• 560,353 establishments
• Higher unemployment
• Greater growth in employment
• Lower wages

4. HA 7712: Human Resource Management Professor Sturman, Spring 2010
Key Issues for HRM in Hospitality:
What is Keeping Managers Up at
Night?• Leveraging Human Resources is managers’ biggest
concern (for both restaurants and hotels)
• Industry employs large numbers of lower-skilled workers
• Low-skilled workers have significant impact on customer
• Industries pay less for higher levels of skill
• Very high turnover (and sometimes, too low)

5. HA 7712: Human Resource Management Professor Sturman, Spring 2010
Looming Challenges for HR
• Supply versus demand for labor
• Aging workforce
• Increased gender and racial diversity
• More dual career couples and single parents
• Increasing benefit costs (25% of costs come from
employee benefits)
• Decreased employee tenures
• Internationalization of workforce – more diversity of
the workforce

6. HA 7712: Human Resource Management Professor Sturman, Spring 2010
Why Do So Many Hate HR?

7. HA 7712: Human Resource Management Professor Sturman, Spring 2010
How Much Do People Know?
• Manager perceptions
• 57% correct
• Student performance
• Your performance:
• Last Year’s undergrads:
• Last Year’s MMH:
• Your grades by section
• Management Practices:
• General Employment Practices:
• Training and Development:
• Staffing:
• Compensation and Benefits:

8. HA 7712: Human Resource Management Professor Sturman, Spring 2010
The Biggest Errors

9. HA 7712: Human Resource Management Professor Sturman, Spring 2010
What Do We Need to Learn?
• Knowledge gaps:
• Why so many misperceptions of staffing?
• Greater professionalism in HR
• Trend to evidence-based management

10. HA 7712: Human Resource Management Professor Sturman, Spring 2010
What Do We Need to Learn?
• Strategic gaps:
• How can HR contribute?
• HR as strategic partner

11. HA 7712: Human Resource Management Professor Sturman, Spring 2010
What Do We Need to Learn?
• Action gaps:
• What do you need to know how to do?
• How does HR get the resources to make good
investments?
• How do you make your HR department be strategic?

12. HA 7712: Human Resource Management Professor Sturman, Spring 2010
The Goal and Mission of HRM
• Goal:
• Contribute to business success!
• Mission: To get …
• the right person,
• to the right place,
• at the right time,
• for the right price!
and giving that employee…
• the ability
• the motivation,
• and the opportunity to perform!

13. HA 7712: Human Resource Management Professor Sturman, Spring 2010
Organizational
Performance
Employee
Behaviors
Organizational
Costs
HR Contribution Model
HR
Practices

14. HA 7712: Human Resource Management Professor Sturman, Spring 2010
Employee and
Labor/Management
Relations
HR Planning
and Analysis
Equal
Employment
Opportunity
Staffing
HR
Development
Compensation
and Benefits
Health, Safety,
and Security
Goal

15. HA 7712: Human Resource Management Professor Sturman, Spring 2010
What Does it Mean to Contribute
to Business Success?
• Improve Firm Performance
• Productivity
• Efficiency
• Quality
• Service
• Legal Compliance
• Preparation for the future
• Ethics
• Other priorities

16. HA 7712: Human Resource Management Professor Sturman, Spring 2010
How to Accomplish the Mission:
Obtain HR Fit
• Human resource policies should …
• Fit with the environment
• (Environmental Fit)
• Fit with the organization’s strategy & characteristics
• (Organizational Fit)
• Fit with the other HR policies
• (Internal HR Fit)

17. HA 7712: Human Resource Management Professor Sturman, Spring 2010
HR In Your Futures
• Your future HR tasks
• Human resource issues will be your largest headache
• You will need to make selection, compensation, and
appraisal decisions
• You will need to decide where to devote resources
• You will need to fire people
• Is your HR department working for you?
• Can your HR person identify your organization’s goals?
• Does your HR person know who your customer is?
• How does the HR department add value?