INTRODUCTION TO HRM
The term human resource management is coherent as well as strategic approach to the management of most valuable assets of companies i.e. the people. The crucial role of manpower management is to sustain personnel of an industry by ensuring that all levels of workplace are assigned with right skills and employees are appropriately encouraged plus compensated. The below assignment is inculcating about human resource management at Hotel Café Royal of United Kingdom. The human resource manager of hotel conducts activities and planning on the belief that manpower is the most significant strategic resource. In this regard, the paper includes discussion about roles and functions of human resource management, factors by which it is affected as well as different available training methods that can be used by a service industry for its employees.
These are some human resource management acts followed in service industry:
Sex discrimination act 1995/97 – It implies that all women and men should be equally treated. The organization should discriminate people against their sex, marital status, etc. Both direct and indirect discrimination are unlawful according to this particular act.
Race relations act 1992 – The act does not tolerate affirmative action or positive discrimination. That means an employer is not allowed to change its workforce balance by selecting individuals only because they are from specific racial group. It would be considered as discrimination against rational grounds as well as unlawful (Deb, 2006).
Race relations amendment act 2000 – The 1976 Race Relations Act amended as Race Relations Act in 2000, which states that to discriminate individuals on the basis of their colour, race, ethic or nationality is completely unlawful. The Act also enforces common duties on various public authorities to stimulate racial equivalence.
Equal pay act 1970 – This act implies that individuals must be equally paid irrespective of their sexual category. Every entity have a right to receive wages as equal as what their opposite sex is getting for the same work (Ehnert, 2009).
Employment act 2008 – This act introduces a new regime, which is devised to streamline and simplify resolution of dispute in between employees and employers. The main change brought under the particular act was rescind the process of statutory dispute that, which have been replaced by best practice code of ACAS. The guidance are provided by ACAS regarding the manner in which employees and employers must deal with workplace grievances and disciplinary issues.
Employment relations act 2004 – According to this act employees have statutory safety against being provided inducements by their company to be or not to be a trade union members. Moreover, they are now protected against detriment or dismissal for utilizing trade union services (Fallon and Rutherford, 2010).
National minimum wage – As per this act, workers in age of school leaving or above are entitled for receiving minimum wage.
Data protection act 1998 – This act provides people with right to know what category of information is held about them as well as gives a framework for ensuring that information of people is properly handled (Garlick, 2010).
Thus, it is essential for the hotel’s management to consider all above acts in their employment process or activities to gain positive image among workforce.
Human resource planning is the procedure that interconnects needs of organization’s human resource to its strategic planning for ensuring staffing is qualified, competent and sufficient enough to attain business goals. The planning of HR is becoming a significant element of hotel for reducing manpower turnover and sustain competitive edge in the marketplace. In addition to this, workforce planning is the practice of forecasting systematically both employees supply and future demands as well as deployment of their talents in relation to organization’s strategic goals (Heneman and Greenberger, 2002). The overall planning also involves method, which determines future and present needs of employees for a company, on the basis of objectives plus goals decided by top management. Furthermore, it responds to significance of business planning and strategy with an aim to make sure individuals availability and supply in both quality plus number. In addition to this, there are some internal and external factors that affect human resource planning of hotel, such as:
Staff issues – Dealing with problematic and difficult employees is seen as unfortunate side of planning human resource for the corporation. Similar to real life, working place also have slackers, bullies plus several other negative entities who should be dealt effectively. Often human resources is called upon for assisting with coaching, mediation and disciplinary actions too. In order to avoid hiring of such type of individuals, manager can do screening throughout the procedure of hiring. However, employees can still take a turn for displaying worse attitudes and perform wrong actions that may result in personal issues among staffs at workplace. Generally, an open discussion with workforce is considered as best route for getting him back on the correct track. But, it is essential to keep overall procedures documentation and to properly define prospects along the way (Huntington, 2015).
Health and welfare – In present complex era of business, employees are getting much concern about their health and safety at workplace along with regular welfare opportunities to grow in their individual career. Therefore, human resource manager should made provisions for the utmost care of employees by providing them sick days as well as several other health benefits. Furthermore, with an aim to boost individual’s morale company picnics, workshops, holiday celebrations and outings can be arranged by hotel management. Besides this, employees should be provided with career enhancement facilities through training sessions and workshops to develop their skills (Kleynhans, 2006).
Work hours – In hotel industry, flexible working hours can be challenging. There might be days when no one present in the office, as they worked for organizing special event in the night before. A dissatisfied staff who leaves may claim for many overtime hours for which the manager have no records. Moreover, someone might require to take stress leave, as they did not take off for any time in compensate for their overtime. Such types of situations give emphasis to having effective and clear HR policies at workplace. Due to this reason, manger should be clear with employees regarding in what way they are tracking their working hours. Manager by keeping hours track, can make calculation for every staff members an actual hourly rate. Further, working hour’s information can support in comprehending as well as reducing stress of workforce (McAdam, 2015).
Monetary rewards – The main function of employees management, refers to duties of human resource manager for paying staffs and offering adequate incentives. The professionals of manpower management are usually charged with developing salary and wage systems, which accomplish particular objectives of corporation, i.e. employee satisfaction, quality, motivation and retention. Eventually, their purpose is to establish salary and wage level that increase the organization’s investment with regard to attainment of objectives. Often it is successfully accomplished with paying incentives on the basis of performance. Particularly, the manager should learn method of developing compensation equity within the hotel, which doesn’t hamper individuals morale and also provide enough financial rewards. Other than fringe benefits and financial compensation, a good human resource manager also devise programs to reward workforce by fulfilling their emotional requirements, like appreciation for excellent services or output (Petarson, 2011).
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Political – While making human resource plan, a manager is required to consider potential market changes, suitable applicant’s availability and budgets due to the political influences.
Economical – The most immediate concern in planning of manpower is total amount available for training, equipment and salaries. However, an equally critical role is played by external economics. Developing economic aspects into workforce plan supports in estimating number of employees needed and what they can be paid by firm (Randhawa, 2007).
Social – There are several social aspects that may influence company’s workforce planning but in particular manager is required to consider diversity and equality issues at workplace.
Technological – New techniques brings novel requirements of talents, hence manager should always aware about training needs and proficiencies while making human resource plan.
Legal – The most important segment of legal system, which influence manpower planning is employment law that modifies regularly. Changes in the employment law ought to be reflected in corporate policy and employed on the ground by managers and supervisors.
Environmental – It involves where the company is located with regards to identifying sufficient employee or environment changes, which mean a requirement for fewer or more employees (Rouse, 2011).
In an organization, maintaining heathy employee relations is essential for its success. Strong employer-employee relations are needed for making human satisfaction and high productivity. Generally, employee relations cope with resolving and avoiding individual’s issues that may arise or can influence the working environment. The following are some main factors of employee relations:
Communication – It is the major aspect that influence relationship between employer and employee. Employees who feel to be heard and can air grievances are usually have great morale. Effective communication at the place of work involves keeping individuals informed regarding performance expectations and acknowledging them about any modifications in organization’s procedure or policy with which they might be affected (Stone and Romero, 2012). Open communications, like weekly memos or monthly meetings supports in alerting management about workplace issues before such begin to influence employee’s morale.
Corporate Culture – Each organization has its own culture. There are many things encompasses in company’s culture that dictates the manner in which employees should be treated. For example, a culture that put emphasis on punishment over rewards generally leads to an environment of low morale and fear. On the contrary, a culture that holds unique attributes of workforce and lay emphasis on rewards can result in improved relations among labor and management (Albrecht, 2007).
Fair decision – Employee should be provided with information before disciplinary or dismissal actions taken by employer. Moreover, they must be allowed to comment on such issues and to provide other relevant information. It involves being given enough time for considering the information as well as preparing an effective response. Besides this, staffs must be allowed to comment on any investigation results before the final decision is made (Biazzo and Panizzolo, 2000).
Trust – This can be maintained among employees by regular interactions and making them updated regarding hotel procedures, decisions and policies. Human resource manager should also try to keep staffs well-informed, so they will remain productive and motivated as well as can make sound decisions (Boselie and Paauwe, 2005).
Belief – In addition to above, employees also believes that hotel’s management will facilitate safe environment of working, proper incentives, fair treatment, needs satisfaction and participation in decision making. If management fails to fulfill such expectations then can lead to employee grievance.
The laws influencing human resource management at Café Royal are as follows:
Retirement law – Except justified objectively, the hotel is no longer allowed to dismiss any older staff members on retirement grounds. That means employers are not permissible to force individuals to retire while reaching a defined age unless the particular age could be justified. Human resource manager at hotel can conduct open discussion in trust atmosphere with employees regarding their future plans that would support in transition of work to retirement for both businesses and individual (Chan, 2007). Furthermore, the bistro has to follow (1974) Act of Employee Retirement Income Security with which it is required to maintain a minimum amount of pension plan and the law also govern range of tax laws for using payments of pension plan.
Dismissal-employment relations act – Section 103A of employment relations act entails that dismissal at workplace should be “reasonable and fair” in every conditions. A dismissal process following unfair or poor practice will not compulsory lead to court finding. It means that dismissal can be unjustified when employer followed bad conduct and employee being given with monetary recompense (Clark, 1999).
Employment rights act – This legislation put on organization for safeguarding employees from several types of discrimination. This act provides employees an equal treatment at workplace regardless of their race, sex, age, religion, etc. According to this act, hotel management required to be aware about legislation of human rights because it applies to each practice concerning to employment (Collins and Clark, 2003).
Maternity and paternity rights – According to this law, all employed pregnant females are entitled to maternity leave of 52 weeks, regardless of their working period in particular organization. A female have series of rights throughout such duration and employer have to provide flexible arrangements of working if they return to work after completing the maternity leave (Duckett, 2002).
Parental leave – The new SPL (shared parental leave) regime came into force on 1 December 2014 and has applied to born babies after 5 April 2015. The law facilitates working spouse to share maternity pay as well as leave. As per this law, parents are able to split up to 37 weeks of shared statutory parental pay and 50 weeks of leave in whichever manner suits them best, which include taking time off at separate times or together. Unlike adoption and maternity leave rights, employees are able to interpose working periods and leave that might have impact on hotel undertakings (Inkson, 2008).
Tribunals – The EAT (employment appeal tribunal) makes it necessary for employers to include overtime while calculating holiday pay of