Hr_Case_Study

HR Human Resource Management BY: SUBI, JOHN, DANNY, SHAN TO: VIVI ILIADO 11.07.2011 CONTENTS 1. DEFINITION OF HRM 2. EVOLUTION OF HRM 3. DIFFERENCE BETWEEN PM&HRM 4. OBJECTIVES OF HRM 5. HRM FUNTIONS 6. SCOPE OF HRM 7. IMPORTANCE OF HRM 8. HRM CASE STUDY 9. CONCLUSION 10. RECOMMENDATION DEFINITION OF HRM HRM is a series of integrated decisions that from the employment relationship; their quality contributes to the ability of the organisations and the employees to achieve their objectives. -Milkovich and boudreau HRM is the planning, organising, directing and controlling of the procurement, development, compensation, integration, maintenance and separation of human resources to the end that individual, organisational and social objectives are accomplished. -Edwin B. Flippo Source: www.mdf.nl/uploaded/images/12200.073---HRM-model-web.gif EVOLUTION OF HRM * HRM emerged in 1970s * Kautilya’s Arthashastra in 4th BC * Babylonian Code of Hammurabi 1800 BC ‘minimum wage rate’ & ‘incentive wage plan’ * In India since 1920: First world war, emergence of trade union * The Royal Commission (1931): Labour Welfare Officers : Selection of workers and settle grievances. * Factories Act (1948) Welfare officers compulsory in industries employing 500 employees * IIPM – Kolkata, NILM in Mumbai : (Jute and textiles) * Second World War : increased expectations of the workers: IR and Personnel admn integrated as PM * 1970: Shift from welfare to efficiency. * 1980: HRM and HRD Challenges * 1990: Human value and productivity through people. * 2000: Shifting to SHRM Differences between HRM & PM •PM has limited scope and an inverted orientation Viewed labour as a tool for benefits of the organisation •Personnel Dept not respected, no productive employees •PM treated as routine activity meant to hire new employee and maintain personnel records •Never part of strategic management of business. Difference between HRM & PM (cont`d) •HRM views people as an important source or asset to be used for the benefit of organisation, employees and the society. •Philosophy of mutuality: mutual goals, mutual respect, mutual rewards and mutual responsibilities. OBJECTIVES of HRM 1. Societal: To be ethically and socially responsible to the needs and challenges of society while minimising the negative impact of such demands upon the organisation. 2. Organisational: To recognise the role of HRM in bringing about organisational effectiveness. 3. Functional: To maintain the department’s contribution at a level appropriate to the organisation’s needs. 4. Personal: To assist employees in achieving their personal goals, at least insofar as these goals enhance the individual’s contribution to the organisation. SOURCE: www.scribd.com/doc/36239367/HRM-VVISM SOURCE: http://www.ankitakulkarni.com/uncategorized/what-is-human-resource-management-hrm HRM FUNTIONS SOURCE: http://www.ankitakulkarni.com/uncategorized/what-is-human-resource-management-hrm SCOPE OF HRM SOURCE: http://www.ankitakulkarni.com/uncategorized/what-is-human-resource-management-hrm IMPORTANCE of HRM Human resources are important as companies need to find employees with the right skills and the willingness to develop in order to perform well at the workplace. One of the most important things the HR department does is to develop their staff by giving them the appropriate training and by identifying the individual interests, values, competencies and activities. (It is vital to motivate the employees.) In addition the HR department keeps the workforce updated about the company`s plans, and laying out the implications for job security and working conditions. The HR department is vital for every hotel business in order to provide a quality workforce to the company. All in all The Human Resources department provides support and advice to line management. The attraction, preservation and development of high caliber people are a source of competitive advantage for hotel businesses as employees are the most important resource. Good HR practices help: 1) Attract and retain talent 2) Train people for challenging roles 3) Develop skills and competencies 4) Promote team spirit 5) Develop loyalty and commitment 6) Increase productivity and profits 7) Improve job satisfaction 8) Enhance standard of living 9) Generate employment opportunitiesation3.Assessment HRM CASE STUDY 1. RAMADA HOTEL: Parsippany, new jersey, U.S * USED COMPONENT - HR development YSS PROGRAM (your special someone) = internal customer happy external customer happy * process i. Selecting: Select the best employees for each position ii. Training: Train them well iii. Treating: Treat employees as a valuable resources and partners in business iv. Recognition: Recognise their positive contributions * RESULT Since 1987, guest complaints 25%, guest compliments 500%. SOURCE: Human Resource Management. by Robert H.Woods (p2-3), ISBN 0-86612-068-8 2. MERCADONA(Spanish supermarket chain) * USED COMPONENTS – 1)HR development a. Employee training: Mercadona provides an average of 60 hours of training per worker per year with all executives trained within the company. b. Cross-training & predictable schedules: By cross-training employees, Mercadona is able to provide monthly schedules to their employees as compared to the U.S. chains which find it very difficult to even provide a weekly schedule to its full-time employees. This (stable hours and salaries) has resulted in Mercadona having only a 3.8 percent turnover rate with over 85% full-time employees. c. Department specialists & prescription instructors: Mercadona stocks only the highest-quality and affordable products. A customer can walk up to a department specialist in the store and ask for advice on buying a particular product. The department specialists know everything about the products the store stocks. Any product changes are in the knowledge of the specialist d. Stable labor - policy: It offers only permanent contracts to its employees from the start. It also offers average pay better than the rest of the industry sector. 2) Compensation & labor issues a. Employee bonus: In 2008, when sales growth slowed down Mercadona still gave a EUR 190 million bonus to its staff, 19% more than a year earlier b. Additional month of maternity leave: Mercadona extends the legal four months of maternity leave to five months but on a discretionary basis and also based on certain conditions like foregoing pay rise or bonus. c. No work on Sundays: Mercadona supermarkets do not open on Sundays and not even in tourist resorts to ensure work-life balance. 3)Health & safety a. Better workplace: A few of Mercadona locations have nurseries to look after children and also free services like day care, food etc. 4) Employment laws, planning & staffing a. ensuring employee productivity: To avoid employees coming late to work, Mercadona managers only recruit employees who stay no more than 10 minutes walking distance from the stores. * RESULT In 2008, sales per square foot 60% higher than Carrefour and twice more than U.S supermarket. 18% higher sales per employee than other comparable Spanish chains (50% higher than U.S chains) 3. FedEx`s FedEx is an example of an organization that has created an effective HR strategy that supports productivity and profitability. * USED COMPONENTS – 1) Compensation & labor issues a. PSP (People-Service-Profit) philosophy This philosophy was based on the fact that if FedEx took proper care of its employees, they would provide efficient service to the customers. This in turn would benefit the company by generating more profits. b. LEAP (Leadership Evaluation and Awareness Process) In 1988, FedEx devised a program known as ‘Leadership Evaluation and Awareness Process’ (LEAP) to encourage non-managerial cadre employees to move to the managerial level within the company. c. Employee Communication Program The employee communication programs implemented by FedEx included the SFA program, Guaranteed Fair Treatment Procedure and Open Door Policy. FedEx also devised a mechanism to address and resolve employee grievances. This was apart from employing a formal communication system to inform employees about the major events taking place in the company. d. Recognition and Reward Program FedEx rewards employees for their work with awards such as the ‘Bravo Zulu’ and the ‘Golden Falcon Award’. 2) HR development a. SFA Program (Survey-Feedback-Action) Program The SFA program (a key employee relations and satisfaction program) helped management take decisions regarding promotions. From its inception, the SFA was administered manually, but that changed in 1992 with the introduction of online survey system in the US and other automations. Each April, every employee is asked to participate in the on-line survey. After the results are gathered, managers hold feedback sessions with their employees to discuss the survey findings and identify problems within and outside of their department. 3) Employment laws, planning and staffing a. JCATS (Job Change Applicant Tracking System) JCATS is an on-line computer job posting system that allows hourly employees to post for any available job. * RESULT FedEx is among the 100 “Best Companies to Work For” in the US announced by FORTUNE magazine and the Great Places to Work Institute. FedEx (the largest employer in 2008 list and only shipping company included) now figures in this list in 10 of the past 11 years after being named to the “Best Companies to Work For” Hall of Fame in 2005. FedEx was ranked as 97th overall. FedEx already has a reputation of being one of the most employee-friendly companies in the world. Sources: http://www.casestudyinc.com/category/articles CONCLUSION Because the employee is the most important resource of a company especially in hospitality, there is a need for the HR department. In our today’s dynamic global economy there is a lot of competition which means companies have to strive for the best quality. In the past when there was no HR, the quality of products and services was poor because the workforce had just a few rights and they had to do what they were told. The human resource department seeks to improve the quality of work environment for the employees in order to improve the quality of performance. In other words HR is necessary to make a company profitable. HR follows 4 basic steps: 1) Finding the appropriate people with the right skills at the right time 2) Develop staff 3) Keep workforce updated 4) Motivation RECOMMENDATION The HRM in your hotel should follow to our suggestions below. 1. SET UP GOALS: It is the most important part in every organisation. SOURCE: http://thedistinctdot.com/2011/05/07/mission-statements/ http://www.konoconsultancy.com 2. JOB ANALYSIS: Before recruit people, HRM must identify jobs your hotel needs. Many companies make the mistake of not completing a job analysis for each position. Because the information the analysis contains has a variety of uses. It reveals the necessary tasks, behaviors and personal characteristics needed to do a job. In many cases, job analysis tells a company why specific abilities and skills are required for a job. STEPS IN JOB ANALYSIS 3. RECRUITMENT: After done job analysis, HRM should focus on hiring people. Especially in hospitality, human is the main resource of your business. If you are fail to hire right people, your hotel will cost more money to train them. THE PRE-RECRUITMENT PROCESS 4. TRAINING: Even if you have hired right people to right position, it is difficult to respect a high-level performance from your employees without job training. Well-designed training process is able to prevent employee turnover. If number of new employees resigned your hotel, all the money and time to invest them, would be gone. The job training must be continuous repeatedly. Eventually, it will become a core value in your business to be success for a long time. SOURCE: http://mournetrainingservices.blogspot.com/2009/06/training-cycle-explained.html