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Chapter 1 Introduction to contemporary human resources management.

INDUSTRY ADVISOR

MICHAEL HURST, Chairman National Restaurant Association's Educational Foundation and Owner 15th Street Fisheries

"Good timber does not grow with ease; the stronger the wind, the stronger the trees."

--J. WILLARD MARRIOTT

"If you're working in a company that is NOT enthusiastic, energetic, creative, clever, curious, and just plain fun, you've got troubles, serious troubles."

--TOM PETERS

INTRODUCTION

How do you get your employees, your people, your human resources, to be the best they can be? The best dishwasher, the best front desk clerk, the best bartender, the best bell person, the best prep cook, the best housekeeper? Human resources skills have always been important for the hospitality industry; since the late 1980s human resources has been the single most important set of skills for a manager to have--and will continue to be as far beyond the year 2000 as we can see. You will have to have these skills to stay competitive and survive. That's what this book is about: surviving the enormous new challenges of today's workplace so that you, and your hospitality organization, can stay competitive and be successful. This challenge means that your people skills must be far greater than those of the people competing against you and certainly better than those of the era of the 1970s, 1980s, and 1990s.

How important are human resources management skills to you as you graduate and enter the hospitality work force as a manager? Managing people will be something that you will do every workday. Regardless of the segment of the hospitality industry you choose, the company you plan to work for or start on your own, the job title you are assigned, or the size of the operation you will work in, human resources will affect you and be affected by your actions. We welcome the opportunity to show you, through our own personal experiences in the hospitality industry, how you can be recognized as a great people manager who is both enthusiastic and clever while creating a work environment that is just plain fun!

At the conclusion of this chapter you will be able to:

1. Describe the important historical influences that led to the emphasis on the human resources aspect of management as we know it today.

2. Define human resources management and the functions associated with its actions.

3. Distinguish between personnel skills and human resource skills.

4. Discuss the importance of the role of the manager with human resources responsibilities in the hospitality industry.

5. Explain the people challenges faced by human resources managers in today's hospitality workplace.

6. Explain how certain terminology will be used in the remainder of this text.

DEFINING HUMAN RESOURCES MANAGEMENT

In the hospitality industry all managers are human resources managers, or more appropriately, all managers have responsibilities that include their human resources. Dealing with people is what our business is all about: whether it's our employees or those guests who walk in the front door. When providing services to our guests, our primary resource is our people, our workers, our employees. Being such a labor-intensive industry, you would think that it would be hard to neglect these valuable resources, but oftentimes we do.

Successful hospitality managers need the ability to work with people. We need to develop a people orientation in our management approach. This text is not about management per se but rather about a singularly important skill of management: human resources management. What's the difference, you ask? A manager with human resources responsibilities is first and foremost a manager of people. As a manager with human resources responsibilities, your concern is those people and how their needs, wants, and desires fit into the needs and desires (or rather the organizational goals and objectives) of the hospitality enterprise. We are not talking about your management style or how specifically you manage your people but rather the knowledge and skills it takes to effectively work with, develop, utilize, and coordinate your people resources. It is through effective human resources management skills that your hospitality organization can gain a competitive advantage in today's marketplace. Gaining this advantage is very challenging. It is indeed the challenge YOU face as a manager with human resources responsibilities in today's hospitality industry.

We define human resources management as the implementation of the strategies, plans, and programs required to attract, motivate, develop, reward, and retain the best people to meet the organizational goals and operational objectives of the hospitality enterprise.
INDUSTRY EXPERTS SPEAK

Mike Hurst further emphasizes, "The role of
management is changing--overmanagement in
the past and underled. Hospitality is based on
the gift of friendship--nice people who care.
With competition intensifying, capital requirements
accelerating, and the dilemmas imposed
by an expanding industry and shrinking labor
force, it has become imperative in a service
society for management to shift its focus--from
profit to people and its style--from the
back door (office) to the front door."


The activities or functions required by human resources management are what make up the job duties of the manager with human resources responsibilities. These functions serve to assist the hospitality organization in improving its bottom-line results as well as adapting to the changing workplace (Figure 1-1).

Before reading any further, take out a pencil and piece of paper and write down a list of what you believe are the job duties of a hospitality manager with human resources responsibilities. In other words, just what does a manager with human resources responsibilities do in the course of his or her workday? What does your list look like? Does it include hiring? interviewing? job placement? and what about performance appraisals, discipline, termination, development, orientation, and training? If these are some of the items on your list, you already have a good idea of the job duties that you, as a manager with human resources responsibilities, will need to be able to perform. Table 1-1 lists the numerous functions of human resources management. The best way to view the human resources functions is as the job duties of the manager with human resources responsibilities.

[FIGURE 1-1 OMITTED]

You might have noticed that the listing in Table 1-1 corresponds closely to the table of contents for this text. That is not by accident. This book was carefully designed, with the assistance of several industry advisors, to give you a comprehensive overview of the types of activities and programs that make up the field of human resources management in the hospitality industry (Figure 1-2). You will have the opportunity to actually assume, through role-playing, the job of a manager with human resources responsibilities as you read through the following pages.

The human resources department (whether it formally exists or not) plays a critical and increasingly involved role in assisting the hospitality organization in meeting its goals and objectives. Without the presence, involvement, and cooperation of a human resources department (even in an informal structure), the goals and objectives of the hospitality organization are becoming increasingly difficult to reach.

[FIGURE 1-2 OMITTED]

Each chapter discusses one or more human resources function where you will learn about the specific duties of the manager with human resources responsibilities in the implementation of that function. "How to's" and the actual forms being used in the hospitality industry today have been generously supplied by a number of industry advisors. It is our hope that this book will not only be useful during your academic endeavors but also serve as a beneficial guide when you enter the hospitality work force.

Human resources management is a term for what historically was referred to as personnel administration or personnel management. In today's arena, human resources managers are sometimes called "people managers," and employees are referred to as "our people" or "our associates." Let us review the major historical contributions to human resources management that have led us to these important changes in terminology.
INDUSTRY EXPERTS SPEAK

Mike Hurst believes "Leaner/flatter organizations
are in a position to react faster to
change, the very drive towards globalization if
not simply multiple level expansion of small
units requires a simpler structure than the
centralized administration/control behemoth
of yesterday. Marketing, accounting, human
resource management, purchasing, recipe
development--done with limitations on a local
basis by a more knowledgeable manager complemented
by local specialists give quicker,
faster solutions better suited to the dynamic
needs of an individual unit in a diverse marketplace.
Polling point-of-sale equipment and
high-speed data transmission will keep headquarters
advised of pertinent data."


HISTORIC CHANGES IN HUMAN RESOURCES MANAGEMENT

The human resources managers of today have earned a place of respect for their contribution to organizational effectiveness. The contemporary role of managers with human resources responsibilities is a critical one to any hospitality organization. Most people spend more than one-third of their waking hours at their jobs, and as a manager of human resources you will make decisions that affect and influence the lives, dreams, goals, and ambitions of these individuals and their families. A look at the historical development of the human resources profession shows that this was not always the situation.

Early Employer-Employee Relationships

Practices related to human resources management can be traced back to the Babylonian Code of Hammurabi around 1800 B.C., which provided for an incentive type of compensation plan as well as a minimum wage. From high school history you recall the institution of slavery, one of the earliest forms of structured employment. When you read the chapter on discipline and learn about "corrective actions," you might recall that one of the reasons for the failure of slavery was the precept of punishment as a motivator. Slaves had no incentive to work harder, and their major achievement was to avoid the whip.

Serfdom followed slavery. This was still an oppressed form of labor since serfs were forced to work for their landowners; however, they fared better than slaves since their income was tied to their productivity. This provided for some of the early forms of incentives.

The guild system, composed of apprentices, journeymen, and master craftsmen, is still used, in part, in the hospitality industry in Europe, and to a lesser degree in the United States. This formed the basis for early training and development systems. Since the guild system also required careful selection of apprentices along with a reward system built on retention, you might say that this was the true beginning of human resources management.

The Early Contributions

Though not specifically concerned with the management of people in the workplace, some of the earlier philosophers, such as Machiavelli, did exhibit a good understanding of how people should be treated. It was in The Prince that Machiavelli pointed out that a leader cannot make people love him, but that he can make people respect him. The conclusion, therefore, was that leaders should concentrate on those aspects of human behavior over which they had control and get their people to respect them.

By the mid-1850s, the United States was experiencing its industrial revolution, which had already occurred in Europe. Robert Owen, a British businessman, was probably the first individual to study the effects of the work environment on productivity. He implemented his ideas in model villages located next to his cotton mills in Scotland. Some of his ideas included the installation of toilets in his factories, shortening the work day to ten hours, and eventually abolishing child labor from all his operations. Mr. Owen's ideas were quite revolutionary for his day!

Scientific Management

Toward the end of the nineteenth century, Frederick W. Taylor began his experiments leading to the birth of scientific management. Taylor believed that workers could receive high wages and that management could keep labor costs down by improving productivity. (1) His arguments to treat workers fairly resulted in the elimination of dismissal without cause and the institution of "just cause" as a standard for termination. Though scholars are still not sure of Taylor's motives, the principles of scientific management did take into consideration the welfare of the worker. (2)

It is important for you to keep in mind that working conditions were very bad during the Industrial Revolution. There was no protection from employers who expected their workers to live and work in unsanitary conditions, suffer long work hours, perform their jobs in unsafe environments, and endure great physical fatigue.

Many others picked up Taylor's teachings, and the study of employee productivity became popular. Frank and Lillian Gilbreth, Henry Gantt, Carl Barth, and others spent their lives studying how to maximize output while minimizing input (Figure 1-3). This was the wave of efficiency experts who studied division-of-labor techniques and conducted time-and-motion studies to reduce expending any unnecessary energy when performing a job task. The efforts of these individuals did result in improved training methods, the development of a more appropriate wage system, and pointed out the importance of proper selection procedures. These studies also pointed management towards a more humanistic approach to managing. The idea of making work easier for the worker was instituted as long as it was tied directly to increased productivity and profitability.

[FIGURE 1-3 OMITTED]

It was during this time, preceding World War I, that individuals started to specialize in personnel management. In 1900, for example, the B.F. Goodrich Company started an employment department. (3) Welfare secretaries or social secretaries were hired to deal with matters involving housing, wages, medical, and recreational concerns. The National Cash Register Company, in 1902, established a Labor Department that handled compensation administration, employee grievances, working conditions (one of the first companies to institute a safety function in human resources management), and recordkeeping. (4)

World War I

In 1913, two books were published, first by Hugo Munsterberg and then by Lillian Gilbreth, that dealt specifically with management behavior. (5,6) Munsterberg's work in accident reduction led to the development of the first preemployment selection tests. It was Munsterberg's idea that some people are better suited to certain job positions than are other people, an idea that is still used today to improve the quality of selection and placement decisions. Lillian Gilbreth continued the work of her late husband, which discussed the importance of human factors in the work environment. Taking considerable care in matching the right people to the right jobs has led to vast improvement in job satisfaction and performance, and continued the idea that a more humanistic work environment for employees might be a beneficial concept for any organization.

The need to improve selection and placement decisions during World War I led to further research and test development. Much of this work was conducted by the U.S. Army under the leadership of Robert Yerkes. The committee he headed developed an intelligence test for recruits known as Army Alpha. Later, Army Beta was developed for use in testing illiterate recruits. Army Beta became even more useful after the war in the psychological testing of immigrants who could not speak English.

During the 1920s, companies continued to add personnel departments, and several colleges and universities began to offer courses in personnel management. The areas of specialization at that time emphasized selection and training needs along with employee welfare. Of special concern was employee health and safety. To this day, health and safety concerns continue to fall under the auspices of the human resources department.

The Hawthorne Experiments

The original intent of the Hawthorne studies was to examine the effect of lighting and ventilation on productivity. The results of these historic experiments, however, indicated that the most important factors affecting productivity levels were the concern and interest of management in their workers. (7) These findings have become the basis for the human relations movement. People finally recognized that the individual workers were really important and needed to be treated with a certain amount of consideration.

After World War I, the United States experienced a period of great prosperity during the Roaring Twenties. Personnel policies and departments that were established during the war continued to grow, although personnel management was still not fully accepted by all managers.

The 1930s ushered in the Great Depression. What had been so good in the 1920s was now reversed. It was during this period that the Roosevelt administration passed several pieces of legislation to regulate personnel management practices. The Social Security Act of 1935 provided for retirement packages, disability and unemployment insurance. The Fair Labor Standards Act of 1938 established a policy for minimum wage and a maximum length for the workweek. Managers with human resources responsibilities in hospitality organizations today continue to deal with this legislation. (As this book went to press, Congress was again revisiting the issue of raising the minimum wage.) Personnel departments were seen as an unnecessary cost of doing business during this period, and the human resources management function suffered a setback.

World War II

The setback encountered during the Depression was soon to change with the serious labor shortage that resulted during World War II. It is unfortunate, but historically true, that the greatest advances in human resources management were made in the United States during periods of war.

The greatest influx of labor into the workplace was that of women as men were called upon to serve in the armed forces (Figure 1-4). New and more-advanced technologies generated the need for specialized training programs and better methods of using the limited work force that was available. The principles of human engineering were applied to design work spaces and equipment. More-effective ways of teaching large numbers of unskilled people how to use the new equipment led to great advances in training and development, and a government-imposed wage structure led to the development of fringe benefits to attract people to the workplace.

[FIGURE 1-4 OMITTED]

Training programs for managers at the nation's universities and colleges were encouraged by the government. For the first time, courses were offered in personnel administration and office management. By the end of the war, training at all skill and responsibility levels was commonplace. The initial development of the computer in the workplace also occurred during this period.

The Forties and Fifties

After the war, the baby boom began that would lead to the abundance of workers in the 1960s, especially for the rapidly growing hospitality industry. New technologies and occupations had been created because of the war. The government required that businesses hire veterans, a practice that is still regulated today. The role of the business schools at universities expanded, with a number of research centers established specifically to study personnel and manpower problems. The interstate highway system was built, which, along with the growth of the automobile industry and the shift from industrial production to service industries, contributed to the rapid expansion of hospitality businesses throughout the United States.

Mike Hurst points out that an increase in leisure time and more disposable income lead to a greater demand for food away from home, and no supply to service it. This was a period of expansion for fast food and the limited menu.

The Sixties and Seventies

The personnel manager came of age during the 1960s and 1970s. The government passed a series of legislative actions that continue to affect human resources management today. These include the Civil Rights Act of 1960, the Work Hours Act of 1962, the Equal Pay Act of 1963, Title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1967, the Occupational Safety and Health Act of 1970, and the Equal Employment Opportunity Act and Commission.

The behavioral sciences influenced training and development with the introduction of sensitivity training and programmed learning. The evolution of the computer assisted the personnel manager with an increasing variety of tasks. Technology began to allow managers to be managers of information as opposed to the oftentimes perceived paper shufflers. With their increasing ability to assist employees in a variety of different areas within the workplace the status of personnel managers within hospitality organizations began to rise.

Personnel functions during the 1960s generally consisted of staffing, training and development, wage and salary administration, labor relations and collective bargaining, and employee benefits and services. The work of the personnel manager was still not widely respected by other managers in the organization. A similar situation was found in the hospitality industry.

The personnel department was seen as a staff function, one that supported the other departments whenever they were in need. Personnel was viewed as an advisory role. The personnel managers could make suggestions and recommendations, but they did not have the authority or power to implement their ideas.
   The hotel personnel director commonly is
   responsible for recruiting and screening
   new employees, checking unemployment
   insurance claims and doing a variety of odd
   jobs that just don't seem to fit any other
   department's domain. As a result, he tends
   to have a clerical status rather than the professional
   standing enjoyed by his counterparts
   in other industries. (8)


The 1970s expanded the personnel function to include motivational techniques, organizational development, and policy development. Legal issues centered around equal opportunity and affirmative action. For the first time, the role of personnel managers was seen as affecting the outcomes of the organization as a whole, in particular with an impact on the bottom line. Personnel management was now being referred to, upon occasion, as human resources management. This reflected the broadening perspective of this area.

The Eighties

It was during the 1980s that the disparities between the line managers and the human resources managers disappeared as both came to the realization that they shared a commonality of purpose. The human resources department was more than just a place where employees went to be hired or fired. Human resources managers became aware of the needs of their work force and that the satisfaction of those needs was a critical function of their jobs. Human resources responsibilities were seen as a job duty of all frontline managers.

The needs of the hospitality organization also entered into the picture. Selecting human resources that fit into an organization's corporate culture became important. Managers with human resources responsibilities also recognized that it was up to them to make sure that the people they selected had all the tools and knowledge necessary to be successful in their job positions. It was now believed that employees needed work that they found challenging and in keeping with their skills and abilities. Career development was seen not just as a path for management but as a strong retention tool for the hourly employees as well. Job enrichment programs came into the hospitality workplace.
INDUSTRY EXPERTS SPEAK

Mike Hurst, owner of 15th Street Fisheries adds,
"The perfect labor cost is zero. Just leave your
doors locked and get rid of your customers.
That will get it for you instantly! On a more
serious note, remember that the greatest compliment
we can get in this business is, 'Where
do you get the nice people who work here?'"


The Nineties

Human resources managers truly began to see the people in the work force as human resources and not as mere employees. An employee is, after all, a human being first!

This attitude also reflected company acknowledgment that its employees were indeed corporate assets--and valuable ones at that. Although this sounds obvious and matter-of-fact to many of you reading this today, during the late 1980s and early 1990s this idea was considered quite revolutionary! Because employees were now recognized as resources (assets), they were seen as having a value to the organization.

As the 1990s marched on, the labor market tightened. In March 1999 the U.S. unemployment rate was at an astonishing 4.2 percent, its lowest level in twenty-nine years. In ten years, companies went from having as many as 200 applicants for every job to a dozen job opportunities for each job candidate. It became impossible for hospitality companies to find the right people to fill their job openings. Keeping the valuable people they had became a priority, and "retention" was the buzzword of the late 1990s. Employees were offered more benefits than ever before in an effort to recruit and retain them. Everything from stock options to company-provided childcare to job sharing to longer vacations were offered. Signing bonuses, some as high as $500, were the norm in some job markets for servers.

The Americans with Disabilities Act of 1990 required the workplace to "reasonably accommodate" the disabled, both as customers and as employees. The Welfare-Work movement initiated by a 1996 welfare reform measure shifted a large number of former welfare recipients into the work force. The long trend to early retirement ended. Wage increases, the first since the 1970s, spread out among all income levels. The trend to tap into underutilized segments of the population was not unlike the employment period during World War II. When companies did not have enough men to fill their job positions, they hired women. Likewise, the 1990s was a time of labor shortages, so companies looked to hiring more ethnic minorities, the older worker, the disabled, and former welfare recipients.

The 1990s was also a period of globalization and an expansion of technology that had never been seen before. As the composition of the workplace changed, so did the needs and demands. Work-family issues became a priority, benefits were seen as a way to build employee loyalty. Employers struggled with the need to be flexible and with workplace accommodations. "Change" was the word of this decade.

[FIGURE 1-5 OMITTED]

THE ROLE OF THE HUMAN RESOURCES MANAGER

The manager with human resources responsibilities in today's hospitality organization participates in strategic planning sessions, understands financial documents, and can relate the job to the bottom line. In many hospitality organizations the human resources manager is part of the senior management team (Figure 1-5). The reactive stance of fire fighting has been replaced with the proactive stance of anticipating the future needs of the hospitality organization.

The recognition has occurred that the human resources professional role is social as well. The new needs of our work force have required some new responses. The changing demographics of our society have created the need for new programs such as flextime, job sharing, childcare, flexible benefits, and employee counseling. The effects of relocation are being more carefully considered than they have been in the past. The enormous strain that relocation places on the family is sometimes not worth the benefits for either the employee or the hospitality organization.
INDUSTRY EXPERTS SPEAK

Mike Hurst tells us that even with the changing
demographics, "Common sense tells us
that everyone is different--always have been.
Management focused on control treated them
as a mass and as long as people conformed,
there was not much problem. Enlightened
management started to change things and
people realized other values could be in the
workplace. These values would enhance the
guest experience through friendly, sincere performance
over time.

"If we can make our work serve the interests
of our employees (as opposed to making the
employees serve the interest of the workplace),
there is no doubt that as they gain
some freedoms, accomplish their goals progressively,
retain job security while developing
skills and knowledge on the job, an enhanced
performance results."


The role of the human resources manager is more complex and more important than ever before in the hospitality industry. It is up to us to keep management informed of what their people need and want to be happy, to be productive, and to be loyal. In a study on employee loyalty conducted in 1999 it was found that people were pretty loyal to their employers. The participants pointed out things that companies could do to keep them loyal:

* A recognition by management about the importance of balancing work and personal life

* An opportunity to grow within the organization

* A better explanation of employee benefits

* A feeling that their coworkers have the necessary skills to do their jobs

* A feeling that the company's customers are satisfied (9)

This list is certainly a good place for human resources managers to start in their efforts to improve employee loyalty.

Another critical issue for human resources managers in the hospitality industry is a reduction of turnover and improved retention rates. As you will see in Chapter 4, this begins by recruiting and then hiring the right people for the jobs we have identified as necessary. The cost of replacing a worker is, on average, 1.5 times that person's salary and benefits. Companies are using all sorts of innovative tools to assist them in the selection process. The trend in the 1990s was to job hop. In a study conducted in 1998 a field poll estimated that nearly half of all workers had held their current job less than two years! (10) Federal labor statistics indicated in 1999 that 25- to 34-year-olds have held their current jobs for a median of 2.7 years, whereas in 1983 the median was 3 years. With such a tight labor market, many people feel that if a job doesn't work out, they can always find something else--and they probably can.

An added challenge for human resources managers in the twenty-first century is the issue of workplace literacy. The National Alliance of Business and the National Institute for Literacy estimate that employees' lack of basic skills costs American companies $60 billion dollars each year in lost productivity. People who can't read operating instructions can damage costly equipment or, worse, seriously injure themselves or cause workplace accidents. Despite this outrageous figure, in a 1994 survey by the Bureau of Labor Statistics only 2.2 percent of U.S. employers provided basic skills training. (11) In this century, there is no excuse for an illiterate work force.
INDUSTRY EXPERTS SPEAK

Mike Hurst looks at turnover and training in
the following way: "When the guest really is at
the top of the organizational chart, it would
seem that approaching training as a fixed
cost--teaching people new things and reminding
them of old things as well as teaching new
people the basics--puts an organization in the
position of hiring superstars at every level,
some of which grow beyond you. That growth
affords an opportunity to secure the services
of someone with even more potential. Thus
turnover is not a cost but an investment in an
enhanced guest experience.

"Training, retraining, and coaching are a
continuing and fixed responsibility of management.
Raising the bar in terms of higher
expectations stimulates the staff and enhances
the guest experience. Mismanagement creating
unnecessary turnover is a management problem
--to be resolved or eliminated. Leadership
is about bringing out the best in people, not
abusing them."


YOUR DUTIES AS A MANAGER WITH HUMAN RESOURCES RESPONSIBILITIES

Having now entered the twenty-first century, hospitality leaders in both academia and the industry face numerous challenges and opportunities in the arena of human resources management. Within the context of this text, as we examine these issues, we ask you to put yourself in the role of a manager with human resources responsibilities. It does not matter what segment of the hospitality industry you select, the size of the operation or its location (Figure 1-6). Envision yourself where you would like to be when you graduate, whether it's with a major hospitality corporation or back in your home town in your family's hospitality enterprise.

We will refer to you, the manager with human resources responsibilities, in an applied context. We recognize that most of you will not actually hold a title of human resources manager when you graduate. In fact most of you, throughout your entire hospitality career, will not hold that title. But as we have stated before, as a manager with human resources responsibilities, human resources management will need to be part of your skills and knowledge base. The human resources manager is an adjunct to all departments.

Perhaps as assistant food and beverage director the only human resources function you perform will be that of training. Or, as a front desk manager you will select, hire, train, evaluate, and be responsible for initiating disciplinary (corrective) actions. As a recruiter for a major hospitality company your human resources function might be limited to recruitment and maybe selection, with someone else in your organization doing the actual hiring and placement functions. If you go back to your family's operation or elect to work for an individual proprietor, then your job will likely include every human resources function that we discuss in this text, along with the job of accountant, marketing director, designer, menu planner, purchaser, to name a few. So no matter if the duties and responsibilities of the human resources manager are a portion of your job or your entire job, it is important for you to begin to think like a manager with human resources responsibilities, and not just as a manager of human resources.

The role of the manager with human resources responsibilities in the hospitality industry is no longer a simple one of filling out paperwork and making sure that the food and beverage director has a dishwasher for the evening shift. The world of today's hospitality manager is filled with complexities, largely due to changing demographics and increasing legal constraints. These will be pointed out to you throughout this text.

[FIGURE 1-6 OMITTED]
INDUSTRY EXPERTS SPEAK

The hospitality industry is recognizing the
need to emphasize people and human
resources functions as vital to the success of
their organizations. Mr. Hurst emphasizes,
"In our service society, the customer is the
focal point of the organization. How to
insure that 100% of your guests are made
salesmen by your staff is critical. The ten
year value of a customer who spends $50.00
a year, sends two friends to your operation
who do likewise and repeats this pattern
every year is in excess of $1,476,200! A
single party of four may be worth more than
your whole restaurant. Think customers,
not dollars!"


CONCLUSION

You might have noticed that the last chapter of this text is titled "The Next Chapter ...". In it you will find some ideas about where the industry advisors to this text believe human resources management will be in the year 2010. They have also been kind enough to give you some advice that you can use in your own career development. This advice is based upon their years of industry experience.

In the development of the chapters that follow, it becomes increasingly apparent that "the next chapter" of human resources management must be planned for today (more of that proactive stance mentioned earlier). Therefore, you will find those areas pointed out to you. Even though the specific direction is yet unknown, it is already clear that preparations for "the next chapter" need to be happening now.

Human resources functions such as recruitment, hiring, training, and development used to be considered as solely costs that somehow had to be written off. These programs were often deemed unnecessary expenses in times of financial need. Understaffing, terminations, and minimal training were commonplace. While saving the hospitality operation money in the short run, these practices destroyed morale and motivation. Career development was unheard of.

The attitude we hold about our human resources has changed. In the twenty-first century we no longer consider employee programs as unnecessary expenses. Instead we view these programs, such as training and development, as a necessity to both attract and retain the hospitality enterprise's most costly and valuable assets.

Employees add a unique value to our hospitality organizations because they are human beings. Our orientation in human resources management is on those people. The change in terminology from personnel to human resources is more than mere semantics. It is a significant attempt to recognize human needs and their importance in the organizational structure of the hospitality enterprise. It is with this focus that hospitality can overcome the labor crisis in America.

"The young men and women entering business organizations have plenty of skill to do their work, but they fail because they do not know how to get along with people."

--John B. Watson (12)
CASE PROBLEM 1

You have just been hired by a hospitality organization
as a manager with human resources
responsibilities. Because you want to be sure to
make a good impression upon arrival at your
new job, you have decided that it would be a
good idea to prepare a list of the duties and
responsibilities you might be asked to assume in
your new position.

To bring some realism to the situation you
are about to put yourself into, you decide which
segment of the hospitality industry (either food
service or lodging) your new job position is in.
It can be either. A suggestion would be to place
yourself in the "ideal" hospitality manager's job--one
in which you see yourself in the future.

In one or two paragraphs describe the operation
in which you will be employed. You should
provide enough of a description so that the reader
has a feel for the type of operation in which
you envision yourself. Next, continue to prepare
yourself for your new job position by identifying
the human resources functions for which you
might be responsible. (During the job interview
process, this information was vague and not
spelled out specifically.) Now you can prepare the
list of job duties and responsibilities.

Next identify four or five challenges that you
will have to face in your job as a hospitality manager
with human resources responsibilities.
Which of these challenges do you personally feel
will be the greatest? Why do you think so?
Defend your position. Which of the duties and
responsibilities that you identified will you enjoy
the most? the least? Which of these duties and
responsibilities are you most familiar with at the
present time?


KEY TERMS

behavioral sciences

employees

Fair Labor Standards Act of 1938

Hawthorne Experiments

human resources

human resources functions

human resources management

industrial revolution

people management

personnel management

scientific management

Social Security Act of 1935

Taylor, Frederick W.

RECOMMENDED READING

Avery, M. J. "Rising Salaries: Reflect HR's New Role." HR Magazine. 1997. www.shrm.org/hrmagazine/articles/1197sal.htm (4 Oct. 1998).

Branch, S., M. Borden, and N. Tarpley. "The 100 Best Companies to Work For in America." Fortune, January 11, 1999, p. 118.

Dingman, B. "Four- and Five-Star Hotel GM Survey." Lodging Magazine. 1999. www.lodgingmagazine.com/9902/human.htm (7 May 1999).

Epstein, M. Z. and D. G. Epstein. "Hiring Veterans: A Cost-Effective Staffing Solution." HR Magazine. 1998. www.shrm.org/hrmagazine/articles/1198epstein.htm (2 May 1999).

Halcrow, A. "We've Listened and Learned." Workforce Magazine. 1998. www.workforcemag.com/workforce/listen/index.html (2 May 1999).

--. "Survey Shows HR in Transition." Workforce Magazine. 77, 6 (1998): 73-80.

Hayes, J. "Labor Retention Panel: Workers Growing Clout Altering Personnel Strategies." National Restaurant News 32, 40 (1998): 76.

Joinson, C. "Moving at the Speed of Dell." HR Magazine. 1999. www.shrm.org/hrmagazine/articles/0499dell.htm (2 May 1999).

Judy, R. W. and C. D'Amico. Workforce 2020. Indianapolis: Hudson Institute, 1997. Linnell, L. P. "What's the Price Tag?" The Richmond Times. 1999.

Miller, A. "The Millennial Mind Set." American Demographics. 1999. www.demographics.com/publications/ad/99_ad/9901_ad/ad990102a.htm (15 Feb. 1999).

National Restaurant Association. "Restaurant Industry: Pocket Factbook." 1999. www.restaurant.org/research/pocket/index.htm (7 May 1999).

Peters, L. H., S. A. Youngblood, and C. R. Greer (eds.). Human Resources Management. Blackwell Publishers, Malden, MA, 1997.

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Sheridan, M. "Top 400: Difficult Labor." Restaurant and Institutions, July 15, 1998.

RECOMMENDED WEB SITES

1. American Hotel & Motel Association: www.ahma.com/main.htm

2. Educational Foundation: www.edfound.org/home.asp

3. Educational Institute: www.ei-ahma.org

4. Cornell Hotel & Restaurant Administration Quarterly: www.hotelschool.cornell.edu/publications/hraq

5. Restaurant Business: www.restaurantbiz.com

6. Restaurants & Institutions: www.rimag.com

7. Restaurants USAA: www.restaurant.org/RUSA

8. Employment Management Association: www.shrm.org/ema

9. Families and Work Institute: www.familiesandwork.org

10. Nation's Restaurant News: www.nrn.com

11. National Organization on Disability: www.nod.org

12. National Restaurant Association: www.restaurant.org

13. U.S. POPClock Projection: www.census.gov/cgi-bin/popclock

14. Work & Family Connection: www.workfamily.com

15. The International Association for Human Resource Management: www.ihrim.org

16. Associations of HR Management: www.ahrm.org

DISCUSSION QUESTIONS

1. Over the past century numerous social, political, and economic factors have changed personnel management to human resources management. Trace these changes from the Industrial Revolution through the 1990s.

2. Identify the major human resources management functions. Are these common to all hospitality organizations regardless of size? Please explain.

3. Compare the functions of human resources management at the beginning of the twenty-first century with those of the traditional personnel management models.

4. How does the role of the human resources manager change in relationship to the size of the hospitality organization? in relationship to the segment of the hospitality industry you might find yourself working in (lodging or food services)?

5. Describe the current challenges facing you as a manager with human resources responsibilities in the hospitality industry.

Mary L. Tanke, Ph.D.

Florida International University

ENDNOTES

(1.) Frederick W. Taylor, The Principles of Scientific Management (New York: Harper and Brothers, 1911).

(2.) Sudhir Kakar, Frederick Taylor: A Study in Personality and Innovation (Cambridge, MA: The MIT Press, 1970).

(3.) Henry Eilbirt, "The Development of Personnel Management in the United States," Business History Review 33 (Autumn 1959): 345-364.

(4.) Ibid.

(5.) Hugo Munsterberg, Psychology and Industrial Efficiency (Boston: Houghton Mifflin Co., 1913).

(6.) Lillian Gilbreth, The Psychology of Management (1913 Reprint, Easton, PA: Hive Publishing Company, 1973).

(7.) Daniel A. Wren, The Evolution of Management Thought (New York: The Ronald Press Company, 1972).

(8.) Gerald W. Lattin, Modern Hotel Management (San Francisco: W.H. Freeman and Company, 1966), 98-99.

(9.) Timothy Burn, "Most U.S. Workers Are Loyal to Their Employers--Up to a Point," The Washington Times, 1999. web.lexis-nexis.com/more/shrm/19216/4531537/3 (2 May 1999).

(10.) Ilana DeBare, "Keeping a Packed Bag at Work; Employees Today Are More Apt to Job Hop Than Ever Before," The San Francisco Chronicle, April 30, 1999. web.lexis-nexis.com/more/ shrm/19213/4562928/2 (2 May 1999).

(11.) Scott Hays, "The ABCs of Workplace Literacy," Workforce 78 (April, 1999): 70-74.

(12.) John B. Watson (1878-1958) was both a psychologist and an exponent of behaviorism.
TABLE 1-1 Human Resources
Management Functions

Planning                 Compensation
Analysis                   administration
Recruitment              Benefits planning and
Selection                  administration
Hiring                   Discipline
Placement                Counseling
Orientation              Termination
Training                 Labor relations
Development              Managing diversity
Coaching                 Retention
Teambuilding             Information systems
Performance evaluation   Employment law
Performance              Improving work
  improvement              environments
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Article Details
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Title Annotation:Section 1 Human Resources Planning and Organization
Author:Tanke, Mary L.
Publication:Human Resources Management for the Hospitality Industry, 2nd ed.
Geographic Code:1USA
Date:Jan 1, 2001
Words:7109
Next Article:Chapter 2 Human resources planning.
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