UK Professional Development

Academy

Module – HR in Hospitality

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Introduction
Hospitality professional must be expert in managing various function in today’s
business world. In every segment of the hospitality industry, finding, training, and
retaining outstanding staff members are always challenging tasks, but every manager
must master them. Rising labour costs, increased competition for quality staff,
changing worker’s attitudes, increased customer expectations, and a proliferation of
new laws related to what Human Resources (HR) managers may and may not do
legally are among many factors that point out the importance of effective HR
management education. To help meet the challenges of teaching professional HR
management, Human Resources Management in the Hospitality Industry has been
painstakingly developed.

Managing Human Resources in the Organisation

The staff members of every hospitality organisation are its most important resource.
Effective human relations procedures must be used to recruit and select staff
members. However, human resources responsibilities extend beyond this and
further than other orthodox duties such as planning staff parties, approving
employee vacations, and collecting paperwork when new employees are hired.
Numerous laws and regulations relating to hiring and employment practices must be
understood and implemented in every hospitality organisation. The extent of
compliance has a significant impact on how affected managers make personnel-
related decisions and on whether significant time and financial resources must be
committed to issues that could have been avoided if labour laws were followed. The
management of human resources is of strategic importance to the organisation.
Goals cannot be attained without the best people in the appropriate position who
consistently attain standards needed to deliver products and services of the correct
quality. At the same time, those with human resources responsibilities must
represent and advocate for the employees. When the corporate culture encourages
them to do so, employees working at all organisational levels can provide ideas and
creative energies to give the organisation a competitive advantage. Those with
human resources responsibilities are at the forefront of helping to develop,
implement, communicate, interpret, and enforce the policies and procedures that
help ensure that the organisation’s most important resources,employees, are
empowered to help the organisation achieve its goals. Managers with human
resources responsibilities also realise that labour costs must be controlled.

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Human Resources Activities
Large hospitality organisations typically have human resources departments with
staff specialists whose primary responsibilities focus on human resources concerns.
Managers in small organisations function as generalists, and they assume human
resources concerns in addition to numerous others as part of their job. Most
organisations in the hospitality industry are small. Therefore, managers in these
operations will be responsible for making staff related decisions without the benefit
of the specialised assistance that their counterparts in larger organisations receive.

Recruiting/selecting -These tasks include strategies and procedures to attract

applicants to the organisation (recruiting) and choosing the very best persons among
them (selecting).

Training and development -Preparing new staff members to do required work,

updating their experienced peers, and providing opportunities for all interested staff
members to assume more responsible positions are integral to the efforts of most
organisations to attain goals and address competitive pressures, if applicable.

Compensation and appraisal -Personnel should receive pay and benefits

commensurate with their contributions to the organisation. Performance appraisal
provides input to help employees attain the on-job success that can yield promotions
with higher compensation levels.

Protection and communications. Safety and security concerns are of obvious

importance to all employees. Many laws and regulations mandate safety procedures,
and numerous other tactics that top - level managers should do impact employee
safety. Many legal and procedural issues with safety implications are addressed by
those with human resources responsibilities. In addition, effective communication
that flows up, down, and across the organisation helps ensure that staff members
know about issues that affect them.

External Influence on Human Resource Activities

Human resources activities are impacted by external factors. These include:

Legislations -The impact of various laws and regulations on the hiring process and
their influence on management decisions affecting personnel cannot be overstated.
For example, Equality Act 2010 inhibit the employer to discriminate on the basis of
gender, sex, religion etc.

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Consumer preferences - What consumer’s desire must be identified and supplied by
hospitality and tourism organisations. What are business/operating volumes? What
products and services must be produced, and when are they needed? The answers to
these and related questions drive employee recruiting and selecting, training and
development, and compensation and appraisal activities.

Demographics - The characteristics of the local labour market and the guests are of
obvious concern. Income levels in a community affect wage and salary rates, and
they also impact the ability and interest of consumers to purchase the organisation’s
products and services.

Global issues - Many hospitality and tourism organisations exist to serve travellers.
Business volumes impact human resources activities, and these are affected by
international and national events that encourage (e.g., sporting events and special
commemorations) and discourage (e.g., violence and disease threats) travel.

Economy - The financial well-being of world markets and the country, state, and
community in which the hospitality organisation operates impact business volumes
and, therefore, the need for human resources.

Employee unions - Staff members may belong to an employee union that represents
their interests in numerous aspects of the human resources activities.

Internal Influence on Human Resource activities

There are internal organisational influences on human resources activities:

Policies - A policy can greatly influence how an organisation feels about staff
members. In the absence of laws that regulate specific actions, employers have
significant discretion in establishing protocols that may affect the attitudes of staff
members toward the organisation.

Work Procedures - Work procedures that are designed with or without the input
from applicable personnel, the extent to which equipment is used to ease physical
work tasks and the amount of employee empowerment, if any, impact how work is
done and, in turn, required human resources activities.

Corporate culture - The perceived worth of employees to the organisation is an

integral part of its culture. It drives the philosophies and attitudes about employees
and their roles in the organisation, and human resources activities.

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Long - and short - term plans - Longer - term plans such as expansion or downsizing
and shorter - term plans such as rolling out a new program or service impact
employees and affect recruiting, selecting, and training activities.

Management judgment and experience - Managers and human resources specialists

bring their own judgment and experience to the decision-making process. This input
affects the policies, procedures, and plans already discussed and influences other
decisions about human resources issues.

Human Resources Management: Policies and Procedures

Responsibilities for HR management issues may lie with unit - level managers or full -
time specialists.

Despite differences in size and need, all hospitality organisations undertake HR -

related activities that can be readily identified. There are a variety of ways to classify
these activities and the policy and procedure making related to them. It categorises
the areas of HR policy and procedure development as related to:

• Staffing the organisation

• Developing staff
• Motivating staff
• Maintaining staff

1. Staffing the Organisation

The recruitment and selection of employees is probably the area that most
hospitality managers think of first when they consider the work of the HR
department or the HR manager. Prior to recruiting and selecting employees,
however, the HR manager must carefully assess the needs. If, for example, the
executive chef of a large convention hotel informs the HR department that an
additional chef is needed, the specific skills of that needed individual must be
identified.

Hospitality managers at all levels and in all sizes of organisations will continually find
that they must actively recruit employees. From company presidents to the lowest -
skilled entry - level employee, candidate recruitment will usually be an ongoing
activity. Although a variety of methods could be used to examine the employee
search process, one way to categorise it is based on the approach utilised by the

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organisation conducting the search. Using this method, an employee search may be
categorised as being one of the following:

• Internal search
• External search
• Outsourced search

Factors Affecting Selection Efforts are:

After HR managers have assembled a pool of qualified candidates, they must select
the applicant they wish to hire. When choosing potential applicants for employment,
hospitality managers generally will utilise some or all of the five major selection
activities. These are:

1. Applications
2. Interviews
3. Pre - employment testing
4. Background checks
5. References

After you have legally selected an employee for your organisation, it is a good
practice to clarify the conditions of the employment agreement with that employee.
All employers and employees have employment agreements with each other. The
agreement can be as simple as agreeing to a specific wage rate per hour worked and
at - will employment for both parties. This can be true even if there is nothing in
writing, or if work conditions have not been discussed in detail. Employment
agreements may be individual, covering only one employee, or, as in a unionised
operation, they may involve groups of employees. Generally, employment
agreements in the hospitality industry are established orally, or with an offer letter.
Offer letters, when properly composed, can help prevent legal difficulties caused by
employee or employer misunderstandings. As their name implies, offer letters detail
the offer made by the employer to the employee. Some employers believe offer
letters should be used only for managerial positions. To avoid difficulties, all
employees should have signed offer letters in their personnel files.

Components of a sound offer letter include:

1. Position being offered

2. Compensation included
3. Benefits included (if any)
4. Evaluation period and compensation review schedule

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 5. Start date
6. Location of employment
7. Special conditions of the offer (i.e., the at - will relationship)
8. Reference to the employment manual as an additional source of information
regarding employer policies that govern the workplace
9. Signature lines for both employer and employee
10. Date of signature lines

Identifying qualified candidates and offering positions to them is only a part of the
professional HR manager’s job because, in a tight labour market, qualified and
talented applicants are very likely to be sought by a variety of organisations.
Therefore, the HR manager must also encourage the desired candidate to ultimately
accept the position. To do this, the HR manager will typically provide the candidate
with a good deal of job - related and organisation - related information. Topics such
as organisational culture, growth plans, and performance expectations are all
notable areas that could influence an individual’s acceptance decision, and these
should be fully discussed with the candidate. Information related to these subjects
should be accurate and help the candidate make an appropriate career decision that
is best for the candidate and the hospitality organisation.

2. Developing Staff
After new employees are selected, orienting these new employees to the
organisation becomes an important HR function. Even experienced employees who
need little or virtually no skill training will still need to learn much about their new
employer. Information about items such as organisational rules, regulations, and
goals of the organisation, department, and work unit will need to be communicated.
Procedurally, questions of who will do the orientation, when it will occur, and what
specific topics will be addressed are all HR policy and/or procedure issues.

Orientation is the process of providing basic information about the hospitality

organisation that must be known by all staff members in every department.
Implemented effectively, orientation efforts provide initial on - job experiences that
help new staff members learn about the organisation and its purposes, become
comfortable with the work environment, and learn where they fit into it. Discussions
about basic policies and procedures also help new staff members learn about
matters of personal importance, such as their employer ’s expectations and job -
related benefits. In effect, then, orientation and other initial work - related
experiences help the new employees learn how the organisational culture views its

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staff members. It is critical that an effective orientation program be planned and
implemented, because it significantly affects the relationship between the
organisation and its staff members. An orientation program:

• Provides an overview of the organisation

• Indicates the new staff member’s role
• Explains policies, rules, and other information
• Outlines specific expectations
• Motivates new staff members

In some cases, employees may be qualified for the job they have secured but will
require facility - specific skill training. For example, even housekeepers with many
years of experience cleaning rooms will likely still need to be shown “how we do it
here” when they begin work with a new employer. Minor variations in housekeeping
procedures, such as the preferred manner of folding terrycloth items must be taught.
In a similar manner, even experienced service staff, if newly hired, will likely need to
be instructed on a restaurant’s specific table setting, order taking, guest check
recording, order pickup, food delivery, and check presentation procedures.

As an employee’s career within an organisation progresses, that employee may need

to acquire new skills. In many cases, changes in the employee’s work unit or in the
goals and needs of the organisation may dictate that additional training is needed. It
is also important to remember that many employees hope to advance within their
employing organisation. The HR manager should provide those employees, to the
greatest degree possible, with opportunities to do so. This may take the form of
providing employees with advanced skills training related to their present jobs,
training in jobs they may hold in the future, or cross - training employees in new skills
to prepare them for different jobs.

The best of HR managers, whether serving the dual role of unit manager or heading a
large HR department, know that planning for the future staffing needs of their
organisation is an ongoing process. The competitive nature of the hospitality industry
requires that most organisations have the ability to rapidly add products or services
that directly impact that organisation’s employees. Newly added menu items will
likely require additional food production skills training. Adding the feature of wireless
Internet access to a hotel’s guest rooms will likely require that one or more hotel
employees receive additional training in computer - related technology. Regardless
of the individual within the organisation who will actually do the training, it remains

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the HR manager’s role to ensure that the training is provided and to develop the
legally defensible policies and procedures required to do so.

3. Motivating Staff
The task of motivating employees to do their best is one of the most studied, talked
about, and debated of all HR related topics. The question of how to motivate
employees to do their best will continue to be discussed. However, one helpful way
to consider the role of HR managers in policy and procedure development related to
employee motivation is to consider two factors that are commonly agreed to affect
worker motivation. These are an employee’s:

• Ability to do a job
• Willingness to do a job

The ability of an employee to effectively do the job is affected by the employee’s skill
level, the availability of effective training, and the worker’s access to the tools or
information needed to properly complete assigned tasks.

Needs Hierarchy Assumes needs are arranged in a hierarchy and that some needs
are more powerful than others. Workers seek to satisfy their needs in the following
order:

1. Physiological
2. Safety
3. Love/Belonging
4. Esteem
5. Actualisation

The first four layers of Maslow’s “pyramid” are called “deficiency needs” or “D-
needs,” because the individual does not feel anything if they are met, but feels
anxious if they are not met.

Theory X and Theory Y States that managers tend to hold and act on one of two
basic theories about workers.

Theory X assumptions are that:

1. The average person dislikes work and will avoid it if he or she can.
2. Most people must be forced with the threat of punishment to work toward an
organisation’s objectives.

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 3. The average person prefers to be directed, to avoid responsibility, is relatively
unambitious, and wants security above all else.

Theory Y assumptions are that:

1. Effort in work is as natural as work and play.

2. People will apply self-control and self-direction in the pursuit of organisational
objectives, without external control or the threat of punishment.
3. Commitment to objectives is a function of the rewards associated with their
achievement.

Motivation/Hygiene Theory Identifies two separate groups of factors affecting

motivation. “Hygiene factors” cause feelings of dissatisfaction among employees.
They include working conditions, pay, and job security. These do not motivate, but
their absence adversely affects job performance. “Motivation factors,” including
concerns such as achievement, learning, and advancement, play a major role in
positively influencing performance. Workforce motivation is not possible if hygiene
factors are deficient.

4. Maintaining Staff
Even the best of work teams require regular maintenance and care. Policies and
procedures related to the maintenance of employees include those that help
encourage quality workers to stay with the organisation. Major areas of concern
include worker health and safety, as well as the development and implementation of
Employee Assistance Programs (EAPs). Additional areas of staff maintenance concern
relate to communication efforts designed to keep employees informed about the
work-related issues that are important to them. Other policies may identify
opportunities for employees to have their voices heard by management. Staff
meetings, bulletin boards, newsletters, and suggestion boxes are common examples
of devices employers routinely use to encourage information exchange. Maintaining
Staff will include:

• Training
• Compensation
• Performance
• Protection

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Training
Training is a process that provides new and currently employed staff with the short -
and longer - term knowledge and skills required to perform successfully on the job.

Training is important for all hospitality personnel because it is the best way to assure
that staff members can make maximum contributions to the organisation’s success.
This is critical because, in the labour-intensive hospitality industry, staff members are
an organisation’s most important asset. Training is also important because managers
have an obligation to help their employees achieve pride in their work and to enjoy
doing so. These human concerns are met in a culture of respect that begins with
training experiences that yield staff members who have the knowledge and skills
necessary to be successful on the job.

After training objectives are developed, training plans can be created to provide an
overview of the entire program. They are essential to ensure that the property’s
limited time, financial, and other resources are best used to develop and deliver
training focused on achieving planned objectives. Training objectives specify what
trainees should know and be able to do when they have successfully completed the
training. Those who plan training programs must know what the training is to
accomplish, and training objectives help planners to consistently do this. You have
learned that effective training is performance - based and must help trainees learn
essential tasks. Competent staff are those who have been trained and are able to
contribute to the achievement of desired results.

Compensation Management
The majority of hospitality workers like their jobs and enjoy the rewards they receive
from working in the industry. For most of these workers, however, a critically
important part of their job satisfaction relates to the compensation they receive for
doing their jobs. While some hospitality workers consider their jobs to be fun, few
people have the luxury of working just for the fun of it.

In most cases, workers seek to evaluate the entire compensation package offered by
their employer when they assess the amount they are paid for their work, and when
they consider whether that payment is adequate, or fair. It is important that
managers ensure that employees know about their hourly pay, but it is just as
important that employees be informed about their entire compensation package
(including items such as meals, travel discounts, benefits, bonuses, perks, and the
like).

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Most employees, naturally, would like their compensation package to be as large as
possible. Interestingly, however, it is rarely in the best interest of employers to make
compensation packages as small as possible. The reason for this is twofold. First,
employers who advertise positions offering a below - average compensation package
tend to attract workers with lesser skills. This is so because more highly skilled
workers seek higher - paying positions and employers. Second, those employers who
seek to minimise the amount paid to their employees tend to lose the best of their
workers to other organisations that are willing to pay more. Consequently, when less
- skilled workers are attracted to an organisation, and when the best of an
organisation’s workers ultimately seek employment elsewhere, customer service
levels inevitably are below average, resulting in below - average company profits.
The optimum compensation program attracts very high - quality workers, provides
for excellent customer service levels, and, by doing so, allows the company to
maximise profitability.

In most cases, when discussing their compensation, employees will point out their
salaries, wage paid per hour, or tips received during their average shift. When HR
managers discuss their own operations’ compensation programs, they talk about
much more than the amount of money paid to their workers, because experienced
HR managers know a comprehensive compensation program consists of important
extrinsic rewards as well as intrinsic rewards . For most employees, both extrinsic
and intrinsic rewards are important. As a result, HR managers must consider both
types when developing their operation’s total compensation program.

Managing compensation is, to a great degree, the management of employee

expectations and perceptions. To do this well, HR managers must devise an effective
compensation system. To be useful, such a system typically includes:

• Categorising of jobs
• Comparison of employee pay to the local labour market.
• Management of internal pay equity
• Linkage of pay to job performance
• Maintenance of open communications

Direct Financial Compensation

Although it may take a variety of forms, direct financial compensation for hospitality
employees typically consists of one or more of the following:

• Salaries

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 • Wages
• Incentives and bonuses
• Tips

Indirect Financial Compensation

• Health, disability, and life insurance

• Paid time off
• Holidays
• Vacation days.
• Sick pay
• Retirement programs

Nonfinancial Compensation

Some of the most common and effective of the intrinsic motivators used in the
hospitality industry provide employees with:

• Increased participation in decision making

• Greater job freedom
• More responsibility
• Flexible work hours
• Opportunities for personal growth
• Diversity of tasks

Performance Management
Effective hospitality managers provide ongoing performance feedback to their
employees. This process is integral to maximising the effectiveness of an operation’s
workforce. Documenting performance appraisal efforts may be a human resources
responsibility, but those who directly supervise the worker and have first-hand
knowledge of the performance often can best perform the evaluation, and they are
best able to help employees improve their performance levels. Performance
management and performance appraisals, when properly implemented, can help
employees do their best. Performance appraisal is not a new concept, but
performance management has only recently become integral to human resources
management. Performance management is ongoing and includes:

• Planning work and setting expectations

• Monitoring performance continually
• Developing employee skills

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 • Appraising performance periodically in an objective manner
• Rewarding good performance

A properly implemented formal performance appraisal system yields many benefits:

• Recognition of outstanding performance

• Identification of necessary improvements
• Clarification of work standards
• Opportunity to analyse and redesign jobs
• Identification of specific training and development needs.

Employee Protection
Most HR managers and the organisations for which they work for would agree that
they have a moral obligation to ensure that their workplaces are free from
unnecessary hazards and that conditions in the workplace are safe for employees’
physical and mental health. Regardless of whether they agree about moral
responsibility, they all must recognise their legal responsibilities to ensure healthful
working conditions.

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References and Further Reading
Boella, M. and Goss-Turner, S., 2013. Human resource management in the hospitality
industry: A guide to best practice. Routledge.

Ebighgbo, T., 2011. Human Resources Management in Hospitality Industry. The

Nigerian Journal of Research and Production Volume, 18(2).

Hayes, D.K. and Ninemeier, J.D., 2009. Human resources management in the
hospitality industry. John Wiley & Sons.

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