Chapter 16 The next chapter ...
--JOHN NAISBITT/PATRICIA ABURDENCE
"Who controls the past controls the future: who controls the present controls the past."
Human resources management is no longer referred to as "personnel" in the twenty-first century. The change is more than merely one of nomenclature. It represents a change in attitude, a change in conception, a change in status.
Personnel functions were considered primarily related to record keeping and administration. Personnel offices were located in out of-the way places in the hospitality operation, down by the employee lockers and "break" room. The human resources office is no longer hidden. With employees being viewed as a valuable asset with a direct impact on the bottom line, hospitality companies are recognizing that properly managed human resources can give them a competitive edge. Human resources professionals are seen at top-level strategic planning sessions, and more COOS and CEOs are using human resources positions as the avenue to the top.
At the conclusion of this chapter you will be able to:
1. Discuss how the human resources arena will be important. to organizational effectiveness.
2. Explain the future role of the human resources manager in the hospitality industry.
3. Identify the most likely developments and trends in the hospitality work force in "the next chapter."
4. Identify three predictions regarding human resources management in the hospitality industry in the year 2010 provided by industry advisors.
5. Obtain advice (we hope you will use) from each of the industry advisors as you enter the hospitality work force.
THE INCREASING IMPORTANCE OF HUMAN RESOURCES MANAGEMENT
Change, globalization, increased competition for limited human resources, along with technological advancements are just some of the vast challenges facing hospitality managers with human resources responsibilities at the beginning of the twenty-first century. Who can imagine what additional challenges the next five or ten years will bring our way. The issues that you will be facing are much more complex than those of your predecessors. The impact that your role will make on the hospitality organization will be much more far-reaching in its implications. In a survey reported in 1987, it was found that CEOs expect the human resources division to:
* Understand and support the needs of the business
* Play a major role in the use and development of talent
* Formulate cost-containment measures
* Formulate productivity improvement measures
* Help both shape and communicate corporate values (1)
Those expectations indicated that human resources management was going to have a much greater impact on the hospitality organization's strategic plan. Every human resources function began to revolve around the mission statement, organizational goals, and operational objectives. Human resources programs were not developed in the early 1990s merely for the sake of the human resources division, rather managers with human resources responsibilities began serving as critical support for the operational managers. Strong support in areas of problem solving and decision making were given. Human resources managers became change agents as people skills were as important as financial skills to successful hospitality operations. Corporate cultures improved as managers became counselors and coaches and began to manage their people instead of the job tasks. The human resources arena became the information center for the organization's most valuable asset: its people (Figure 16-1).
In 1991 the Educational Foundation of the National Restaurant Association conducted what was considered to be a "futuristic" study of the food service manager in the year 2000. Among other findings, this study identified the five most likely developments that food service managers would need to make by 2000. Managers will:
* need greater computer proficiency.
* supervise a more culturally diverse staff.
* find that service will become a more competitive point of difference.
* need better teaching and training skills.
* possess greater people-management skills. (2)
[FIGURE 16-1 OMITTED]
As we now know, the panel of industry experts who participated in this study were quite accurate with their predictions.
Even in the twenty-first century, a hospitality organization will still need its human resources policies and procedures to ensure consistency and continuity. This will still be an important role for human resources management in "the next chapter." Imagine if every operational manager and supervisor were permitted to set his or her own wages, discipline according to their own whims, run recruitment ads whenever the manager felt it was needed, and hire at random. The point we want to stress is that human resources responsibilities will continue to expand well beyond their more traditional boundaries. Human resources systems planning will continue to be part of a hospitality organization's business plan.
Looking through the literature, you can see that having human resources managers serve as advisors to the executive board is not a new idea.
If he is truly to function as an adviser to top management, the personnel executive will have to live down the stereotype of a hail-fellow-well-met trying to keep everybody happy by administering a variety of employee benefits and services. These may still be important, but they are not of first importance today. (3)
Forgetting for the moment that Myers only talked about the "personnel man," it is clear that even forty years ago the insignificant role of personnel was being challenged.
The point of view expressed here is that people as an organizational resource, are at least equally important with the others, and that ignorance, neglect, waste, or poor handling of this resource has the same consequences as ignorance, neglect, waste, or poor handling of money, materials, or market. (4)
Historically, part of the problem with human resources management is that it has always been difficult to fix a dollar amount on the return on investment from costly employee programs. Human resources has (and sometimes unfortunately is) often been viewed as an area of necessary expense to satisfy the lawyers and accountants while providing a general service to the employees. The challenge of the human resources professional has been to explain why his or her department is strategically necessary to the company's mission statement and organizational goals. A change in how personnel functions are viewed occurs when employees are thought of as an asset, rather than as an expense item. Human resources functions can then be recognized for their contribution to the bottom line. Human resources management can then be viewed as a profit center. Cost savings are not only tangible. What about the nontangible cost savings that occur when a union grievance does not occur? How much is saved when ERISA, OSHA, ADA, FMLA, EEO, or AA penalties do not have to be paid? What is it worth in dollars and public relations not to have a lawsuit filed against you by a disgruntled employee?
Criticisms of the personnel function have not always related to costs. Many have felt that personnel responsibilities were insignificant to the overall effectiveness of the organization. In the early 1970s, the following criticisms were pointed out:
* "The personnel function is not management oriented.
* The personnel function is not adaptable to change.
* The personnel system is absorbed in relatively unimportant tasks like record keeping.
* In general, administrative offices function at low levels of productivity and are measured against inappropriate standards." (5)
Human resources management has undergone and still is undergoing remarkable transformations. Human resources management in the twenty-first century has certainly come along way from the personnel management of the 1970s. Today HR is part of a team that helps to create an innovative work environment for all people in the hospitality organization (Figure 16-2). In many companies, they have taken the lead in helping their organizations break away from traditional models. Human resources management departments have done this by leading by example. Papa John's created their HR department in 1993, eight years after they began. Within two years the human resources department was able to standardize Papa John's culture, benefits, retention, and recruitment efforts, all of which are credited with giving the company their competitive edge in the marketplace. The mission statement of "exceeding the needs and expectations" of customers along with a commitment of rewarding contributions and performance set this company apart from the rest in the 1990s. (6)
[FIGURE 16-2 OMITTED]
If human resources management is no longer to be perceived as playing merely a mechanical, bookkeeping function, then the manager who assumes these responsibilities will need to adapt new strategies to meet the challenges of "the next chapter."
THE HUMAN RESOURCES PROFESSIONAL
As we pointed out in the first chapter, every hospitality manager has human resources responsibilities. The human resources professional has developed the general or specialized skills and knowledge to manage the functions in this arena. The importance of these skills is not only reflected in a review of the literature, but in the increase of course offerings related to human resources functions in colleges and universities. Regardless of the advancements made in computer technology, human resources management still requires the skills and labors of people! Not only have human resources departments and divisions within the hospitality organization taken on greater prominence, the human resources professional enjoys a much greater status. People will always need to be recruited, hired, trained, developed, motivated, counseled, disciplined, and possibly terminated. The ability, however, to understand the hospitality business outside of the human resources functions will also continue to be critical to the human resources professional in "the next chapter."
With no end in sight to the labor shortage, maximizing the productivity of the people already in your hospitality operation will continue to be important. Top management will be turning to the human resources professional to assist them in achieving this goal. In larger corporate organizations, human resources executives are reporting directly to the top levels of the corporate structure. Respect for the human resources professional continues to rise.
Opportunities for advancement for the human resources professional will be more prevalent in "the next chapter" for the right people. What skills do the right people possess? More management and finance oriented than human resources professionals in the past, they will understand a balance sheet and what affects it. These individuals understand the total business environment of the hospitality industry and their organization. They see the direct effect of human resources management on the bottom line. As human resource information systems become more integrated into the hospitality environment, the human resources professional will need to be proficient in computer skills, including Internet, Extranet, and Intranet capabilities (Figure 16-3).
In a study conducted by Workforce in the late 1990s to determine the direction of the human resources profession, the following are some of the predictions for the "Strategic Role of HR" for the year 2008:
* Focus will be on organizational performance.
* HR's value will be in having the right people ready at the right time.
* Role will evolve from strategic business partner to strategic business leader.
* Line managers will become more dependent upon the HR professional.
* Leading change will be HR's greatest corporate contribution. (7)
The human resources professional in "the next chapter" will be as comfortable discussing business strategy as he or she will be explaining the benefits package or in strategic human resources planning sessions. The ability to attract, develop, and retain a highly motivated work force will still be critical job responsibilities. A forward looking, strategic, and integrated approach to human resources issues will be of equal importance. With these skills and abilities, the human resources professional will find the potential high for career growth and mobility.
[FIGURE 16-3 OMITTED]
CHALLENGES OF THE FUTURE
What forces will be affecting you as you assume human resources responsibilities in "the next chapter"? We have already taken into consideration many of these forces as we discussed the various human resources functions. Many of these forces will challenge us, and many will make our jobs more exciting and rewarding. Let's take this opportunity to summarize some of the challenges and changes facing us in "the next chapter":
* Extensive planning to meet tomorrow's work force needs in light of a worker shortage
* Continued search for ways to use our human resources more effectively
* The integration of work with quality-of-life initiatives
* Accelerating demand for better trained human resources
* Increasing sophistication in technology leading to improved human resource information systems
* Employees given more choices about work arrangements/schedules
* Strategic human resources planning seeking input from the employees
* Better working relationships between unions and management
* Greater governmental influence and control through legislation
* Greater increase in the availability of human resources support services offered (EAPs, child care, work-family, elder care, etc.)
* Business-education partnerships (schoolwork programs)
* More creativity in attracting and retaining our human resources
* Greater increase in the cultural diversity of our work force (Figure 16-4)
* Innovative changes in compensation and benefits plans
* Communication becoming instantaneous through company Intranets
* Internet technology allowing more companies the opportunity to enter global markets
* Career paths running horizontal as well as vertical
* Health care costs continuing to rise
* Compensation plans becoming competitive and performance driven; closer link to business outcomes
* A constant need for training
* Education of the work force as important as training
[FIGURE 16-4 OMITTED]
ANALYSIS OF YEAR 2000 PREDICTIONS
In 1989 the Industry Experts who served as advisors to the first edition of this textbook were asked to make three predictions about human resource management in the hospitality industry in the year 2000. Upon reviewing their responses ten years later, one can see that the reviewers were remarkably accurate with their predictions.
The following are some of the very accurate predictions that were made by one or more of our industry advisors in 1989 about the year 2000:
* The labor shortage will be a critical problem for our industry to solve.
* To insure the financial investment in a property, a formalized aggressive human resources development program will become important.
* Part-time employees will be even more important in the year 2000. We must appreciate that our work is secondary to their outside responsibilities.
* The expression "Our people are our most important asset" will become more than just rhetoric.
* In order to competitively attract quality managers, the hospitality industry will adjust the present excessive hours of work.
* A better quality of life will be even more of an issue than it is now. We'll probably see more flex time, four-day workweeks, and permanent or semipermanent schedules.
* The focus will be on training and retention of employees (Figure 16-5).
* Human resources managers will be stronger business partners with operations and marketing than currently perceived.
* The labor market will be a key determinant to a company's growth strategy.
* The skills required by the professional manager in the hospitality industry will be increased.
* Fewer people in the labor pool with even basic reading, writing, and arithmetic (skills) will be available.
* Collective bargaining will continue to exist through the 1990s. Union business managers will be highly skilled and extremely competent regarding union affairs and contract negotiations.
[FIGURE 16-5 OMITTED]
PREDICTIONS FOR THE YEAR 2010
Having access again to our own panel of experts--the industry professionals who served as advisors to the chapters you have read--allowed me to once again ask them to make their own predictions. What follows is their response to this statement: "Make three predictions about human resources management in the year 2010."
Michael Hurst, Owner, 15th Street Fisheries:
"1) Training will be viewed as a fixed cost and not a variable cost. From a service standpoint, as well as a safety standpoint, staff needs to be aware of current regulations, procedures, and new technologies.
"2) There will be more part-timers in the workplace. I strive to have 50 percent of my service staff work 3 days a week or less.
"3) Greater flexibility in scheduling. Scheduling will be done with the best interests of the employee in mind. Classically, the concept of management has been that the employee serves the interest of the workplace. In the next ten years, management must learn how to get the workplace to serve the best interests of the employee and still get the work done. We need to build in enough flexibility to adjust to employee needs. We need to make sure that we have enough staff so that our employees have a life as well as a job."
Ed Evans, Senior Vice President Human Resources, ARAMARK Uniform and Career Apparel:
"1) Benefits will be 'transportable' making retention of employees a matter of not only compensation, but meaningful work and the opportunity to advance.
"2) Training will be accomplished and managed to a much greater extent through technology. Hospitality organizations will select based upon behavioral criteria and will technical skill them post hire.
"3) With the competition for labor, the generation "Xers" will be faced with incredible challenges looking after the needs of the baby boomers as they attempt to lure them back into the workplace on a full or part time basis.
"4) The gap between the skilled and the unskilled (formally trained and non-formally trained) employee will grow as will the presence of drugs and illiteracy in the workplace."
Jan Barr, SPHR, Human Resources Director, Chili's Grill & Bar, Brinker International:
"1) The shortage of available workers for the hospitality industry will continue to be the major challenge for employers, both at the hourly level and for managers. To survive, companies must be able to evaluate 'the potential to lead' in management and must look to alternative sources for hourly employees. To prosper, companies must attract and develop leaders, not managers, and must become the employer of choice for hourly employees.
"2) Human Resources professionals must become a vital part of the planning of strategic business decisions. Constant change will be required for successful companies, and the Human Resources role as 'implementers of change' will be critical. In 10 years, change will be an accepted way of doing business, if Human Resources professionals are effective.
"3) Our industry must find alternatives for the lifestyle issues inherent in a 7-days-a-week/ 52-weeks-a-year business. Part time, flex time, more paid holidays, rotating weekends, child care, elderly care, cafeteria style benefits, etc., must become acceptable if we want to keep our winners. Overall, though, we must keep the unique, fun, exciting spirit alive in our industry. It's what keeps it special for all of us." (See Figure 16-6.)
Bob Morrison, Founder and Principal, Quetico Corporation:
"1) Attracting and retaining employees will be the top priority for all hospitality businesses.
"2) Providing a flexible and challenging work environment will be paramount in your ability to keep top employees.
"3) Customers will demand increasingly higher standards from service and hospitality employees and this will mean that you must employ people with strong interpersonal and social skills."
Loret Carbone, Senior Vice President of Human Resources, Left At Albuquerque:
"1) Everyone will realize that people are a business's most important asset. Companies will be more competitive in attracting and maintaining talented workers. Recruitment procedures, compensation, benefits, corporate culture, and leadership styles will reflect this.
"2) The federal and state labor laws will be more complicated and compliance will take much more time and energy.
"3) The human resources manager with the strongest interpersonal skills will be the most successful."
[FIGURE 16-6 OMITTED]
Pam Farr, Senior Vice President, Marriott Lodging for Marriott International Corporation:
"1) There will be a greater reliance on top human resources thought leaders to rise above the clutter of information spawned by the information age.
"2) Managers and executives will rely more heavily on personal coaches/advisors in all aspects of their lives, including health, fitness, spiritualism, professional effectiveness, and interpersonal relationships to survive the intensity of the world.
"3) 'Cottage industries' will emerge via the Internet, which will revolutionize how human resources services are provided to both large and entrepreneurial companies."
Jeanne Michalski, Assistant Vice President of Employee Development, Burlington Northern Santa Fe Railway:
"1) The need to focus on reducing turnover and ensuring retention of good employees. This is a topic that will require more attention and innovative approaches in the coming years.
"2) Another area that will differentiate successful companies from their less successful competitors is customer/guest services. While this is already an important concept in the hospitality industry, I think those that carry it the furthest will be the most successful.
"3) With the use of the Internet there will be many changes. Employers and employees will need to look for ways to utilize that technology."
Ronald H. Meliker, Corporate Vice President Human Resources, Sunbelt Beverage Corporation:
"1) Tightening labor market of less skilled workers requiring heavier emphasis and cost for training.
"2) More varied and flexible work schedules to meet the demands of fewer available qualified employees.
"3) More internal training for advancement up the organizational ladder."
Kathy Roadarmel, Vice President of Human Resources, Opryland Hotels & Attractions:
"1) Workers will have completely shifted their focus away from 'finding balance' in their work and personal lives and will be more focused on family. They will demand more time-off benefits.
"2) Healthcare costs will have risen so sharply that most large companies will provide onsite medical care to employees and their families as a benefit. This will also serve to reduce insurance costs to employers.
"3) Wages will not be as important as benefits in the year 2010. In order to stay competitive, Human Resources managers will be seeking unique benefit offerings to lure potential employees. The company that offers educational assistance, couriers to run personal errands, housekeeping services, day care, on-site medical care, on-site family fitness facilities, etc., is the company that will have the most recruiting and retention success."
Regynald G. Washington, President and CEO, Washington Enterprises:
"1) As our society becomes more litigious, human resource practices will be carefully designed and managed as to avoid potential litigation.
"2) Organized labor will experience a resurgence that will result in increased growth in organized labor activity across the country.
"3) New and sophisticated union leadership will direct strong financial and manpower resources towards the task of organizing."
Andrew J. Juska, Vice President of Operations, Signature Companies:
"1) Computer technology and the use of web based systems for human resource departments will continue to increase. Employees accessing information through the company Intranet will continue to grow at an accelerated rate.
"2) Virtual Human Resources will become the accepted format for standard human resources functions and tasks.
"3) Computers and the World Wide Web are here to stay. Training employees to use these systems efficiently and effectively will be a major challenge."
ADVICE FROM THE INDUSTRY EXPERTS
The industry advisors were asked to provide you with some additional information. "What is one piece of advice you would give students who are about to graduate and enter the hospitality work force?" Their suggestions follow.
Michael Hurst: "Keep going to school even after you graduate. Take night courses in an area that relates to your job. The better jobs of tomorrow are going to go to those people who accelerate their growth into the jobs. In addition, you should get known outside of work. It could be church, school, or community service."
Ed Evans: "Enjoy what you do--have fun. The best way to achieve maximum success is to find a place you want to be--right industry, right company(ies), right job--BE YOURSELF.
"Leadership is not the same as management. Management is about taking care of things at the level they are--leadership is about taking people some place new; Unlike management, which is hierarchical, leadership is about people choosing to FOLLOW.
"Surround yourself with the best people. Nothing happens in this business without people--your only competitive advantage is the right people, with the right skills, tools, and direction, and everybody wants them.
"Never Stop Learning. The only thing that will not change in your lifetime is that everything will change. It will all change at an exponentially quicker pace. As you graduate, your training is complete, hopefully you take with you the desire and skills to learn."
Jan Barr: "In this crazy, unpredictable industry you chose, be careful to keep it all in perspective. Take being successful seriously, but don't take yourself too seriously. Work incredibly hard when you're at work, but find a balance in your life. That balance is what allows you to stay in this industry for the long run and still love it."
Bob Morrison: "Always make managing and motivating employees your top priority as they are the ones who most frequently deal with your customers, and this interaction will ultimately determine the success and/or failure of your hospitality business." (See Figure 16-7.)
Loret Carbone: "Be patient. It takes time to learn everything you will need to know to reach your goals. If you feel you are 'stuck,' find a mentor to inspire and guide you. But remember, this isn't a sprint. It's a marathon. And the winners will be the people who pace themselves and relish the little successes along the way."
Pam Farr: "Work hard, have fun, and follow your dream."
Jeanne Michalski: "Take every opportunity to learn as much of your business as possible. You may think that you are interested in hotel management or food service, for example, but don't let that stop you from learning as much about the total operations as possible. Many people focus their efforts on moving up as rapidly as possible, which often creates an individual who knows one topic well but does not have that breadth of experience that in the long run will lead to a top management position."
Ron Meliker: "The ability to adapt quickly to your organization's shift in strategic direction (which you helped shape) and to stay focused on your organization's goals and objectives and to ensure that your human resources goals and objectives parallel those of your organization."
Kathy Roadarmel: "As you develop benefits and programs to attract and retain employees in a competitive employment arena, remember that the goal is to provide a unique work environment that fosters creativity, recognizes people as individuals, and encourages them to be passionate about their work."
Regynald G. Washington: "It is important to know the difference between a leader and a manager. Managers do things right. Leaders do the right thing. Real leaders focus on guiding not ruling. In most cases, leaders who focus on ruling often find themselves in major conflict as it relates to the perceived interpretation of the negotiated labor agreement. An arrogant, insensitive connotation is associated with ruling."
Andrew J. Juska: "Make sure that you enjoy your work. Set goals. Understand that the companies you work for are in business to make money. Learn how much everything costs--from apples and chicken breasts to pencils and copy paper to light bulbs and mop heads. Learn how to manage your time. Develop interests outside the workplace. Train for and run a marathon."
[FIGURE 16-7 OMITTED]
Human resources management continues to assume a larger role in the organizational effectiveness of the hospitality enterprise. We can no longer afford to give lip service to the importance of our people. In "the next chapter" we must act upon our knowledge. Labor is our partner, not our enemy.
Your biggest challenge as you leave the classroom and assume human resources responsibilities will be the severe labor shortage. Each of the human resources functions discussed in this text plays a vital role in either attracting or retaining a motivated work force. We will continue to seek new and innovative approaches to the challenges we face in the management of our human resources. Solutions, instead of theories, will be needed if we are to succeed. It is our sincere hope that this text, with the input and advice of hundreds of years of hospitality experience, will provide you with at least some of those solutions. Despite the challenges, the rewards prevail!
"If you can dream it, you can do it."
Kemske, F. 1998. "HR 2008: A Forecast Based on Our Exclusive Study." Workforce 77(1): 46-60.
Laabs, J. 1996. "Charting the Top Ten Concerns of Today and Tomorrow." Workforce 75(1): 28-37.
Micco, L. "Workforce 2020 Requires Diversity, Increased Flexibility." HR News Online. 1997. www.shrm.org/hrnews/articles/042097a.htm (4 October 1998).
National Restaurant Association. 1999 Restaurant Industry Forecast Operational Trends. www.restaurant.org/research/forecast/fc99-07.htm (7 May 1999).
Mary L. Tanke, Ph.D.
Florida International University
(1.) Joan Frazee and Janet Harrington-Kuller, "Money Matters: Selling HRIS to Management," Personnel Journal 66, no. 8 (1987): 98-107.
(2.) Unknown, "The Foodservice Manager in the Year 2000," Restaurants USA 12, no. 2 (1992): 36-37.
(3.) Charles A. Myers, "New Frontiers for Personnel Management," Personnel 41, no. 3 (1964): 31-38.
(4.) E. Wright Bakke, "The Human Resources Function," in Bakke, E. Wright, Clark Kerr, and Charles W. Anrod (eds.), Unions, Management, and the Public (New York: Harcourt, Brace and World, Inc. (1960), p. 198.
(5.) Edward A. Tomeski and Harold Lazarus, "The Computer and the Personnel Department," Business Horizons 16, no. 3 (1973): 62.
(6.) Brenda Paik Sunoo, "Papa John's Rolls Out Hot HR Menu," Personnel Journal 74, no. 9 (1995): 38-47.
(7.) Floyd Kemske, "10 Predictions for the Strategic Role of HR," Workforce 77, no. 1 (1998): 46-60.
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|Title Annotation:||Section 6 Approaching the Year 2010|
|Author:||Tanke, Mary L.|
|Publication:||Human Resources Management for the Hospitality Industry, 2nd ed.|
|Date:||Jan 1, 2001|
|Previous Article:||Chapter 15 Computer applications in human resources management.|