HRM IN TOURISM AND HOSPITALITY

Group #: 309 Submitted by: A. Ziyovuddin Phone: +99897 7815741 E-mail: maleziyo@yahoo.com Checked by: Mr. James Tippins

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Unit 1: Historical perspective of Human Resource Management: During the early industrial revolution an agrarian economy existed at that time where landowners were supervisors and top managers. They used people who were labeled as slaves, child, and etc; Landowners gave them very low wages and they were told My way or the highway sentences by their owners. The employees were as disposable tissues at that time. Some businesses of Americas chief executive officers (CEOs) have been blamed of providing simple lip service about HRM practices. Most annual reports commence with a letter to the stockholders proclaiming that the workers are the firm's most valuable assets in every organization. HRM vs. PERSONAL ADMINISTRATION: The difference between human resource management and personnel administration is the strategic focus of human capital, strategic planning process. Managers must have knowledge in different functions of business. HRM therefore provided as part of training program for all academic and corporate training programs. They are members of the organization because of their affiliation as stakeholders. Constituencies and Productivity: Constituencies are the group of people with the same interest. Stockholders are referred to shareholders when the organization is part of a publicly traded corporation. They dont know how company operates but they seek for Return on Investment (ROI) from organization where stock will rise above the price to provide ROI. Private investors have limited understanding about operation of a business and therefore they want ROI in a short term of their investment. Senior managers spend time to educate the shareholders about realistic expectations for the performance of a hospitality organization. If shareholders want to gain ROI in short term there some conflicts might arise some misunderstanding between managers. For example: the shareholders have difficulty of understanding the large payroll expenses affiliated with most hospitality operation. The lifeblood of hospitality enterprise is the guest who will purchase for the products and services at a respectable price. The purchase of guest is very important role in hospitality organization however due to guests paying the organization will be able to pay wages, taxes, and stability operation of the business. Every organization should have marketing and Human Resource departments in order to run the business effectively and efficiently. There two types of marketing departments within the organization. They are Internal and External marketing. Internal Marketing stuff deals with services and supporting the stuff. External Marketing includes all the sales and promotions where the attractions of customers are performed by external marketing. The main job of HR department is to acquire the right employees for the suiting positions of jobs and maintaining them by training to achieve organizations goals. However HR managers have a direct impact on clientele through their employees. However the employees (internal customers) can be advocates for customers (external customers). The purpose of an employee and employer relationship is best described by the term of quid pro quo which means something of value exchanged for something else of value. The worker is provided compensation in exchange of providing services and products to customers. The employee acquisition is strategy to maintain the employee. It includes compensations, training and development, recognition, performance management, communication, and leadership practices. The final constituency within the stakeholder group is the community in doing a business with external customers who is indirectly linked to the business.

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PRODUCTIVITY: In HR management productivity is mainly focused on workers, who are internal customers of an organization. However to become more productive inside the organization requires to maintain the workers and to let them to add value to the organizations products and services. Productivity is putting fewer inputs and getting more outcomes. For example: In hospitality the products real price is 30$ lets assume, the service which is provided by internal customers can be reasonably charged for 40$. In this case the 40$ - 30$ = 10$ is productivity outcome. HRM Functions: There three basic HR management functions. 1. Because of the increase in service-based production, customer service is a major issue. 2. Quality which effectiveness and continuous improvement initiatives remain as important factors in all organization. 3. The tool of the value added manager is the most important issue of productivity. Management Evolution and Internal Environment: Before in the Industrial revolution, the large numbers of employees were working together in manufacturing areas. This created the need for employees to have managers to oversee their operations. The management began to evolve in 1920s. One of the first approaches was created by the father of scientific management whose name is Frederick Taylor. Understanding the management of workers was called scientific management. The father of scientific management was an engineer by training. Taylor used to conduct time and motion to determine the most efficient use of labor. The goal of scientific management was to find the one best way to do the work done. Unit 2: Employment laws: Most of HR managers time is spent to ensure compliance with the many statues that exist for the protection of employees within the organization. However there many minority people inside the organization and they have the right to be protected under law which helps them to become equal and there many rights such as discrimination. The equal pay act (EPA) of 1963 prohibits any disparity in pay between genders. The Fair Labor Standards act (FLSA) of 1938 must comply with EPA. The Civil rights act of 1964 prohibits any discrimination based on race, color, sex, religion, and national origin. The Civil rights act is enforced by Federal Regulatory Agency called the Equal Employment Opportunity Commission on July 5 in 1965. Theories of discrimination: Definitions of what constitutes discrimination were determined through case law and its important to know who is who when complaining in an agency. An employee who complains with an agency EEOC is referred to complainant the employer will refer to the respondent. If a matter goes to court the court will take place in Federal District Court (FDC). In this case the Employee becomes plaintiff and the employer becomes defendant. Each party has a right to prove certain aspects of the complaint, which is referred to burden of proof. Finally its court to decide under discrimination acts. Disparate Treatment: Disparate treatment has three elements: Firstly the complainant must have incurred harm resulting from decision by the employer. Secondly, the complainant must show the employer intended to discriminate. Thirdly, the employer who is a respondent must show that the reason was a pretext to discrimination. Disparate Impact: It sounds similar to disparate treatment but its different. In Disparate Impact the employer has discriminated on purpose. Maybe the job is requiring the male based on the purpose of the job.
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Accommodation Theory: Accommodation theory is about creating reasonable accommodation to employees within the working area. Perpetuation Theory: Perpetuation theory is used to righting the wrongs and establishing equality in every organization. Legal expectations and Defenses for Employers: Employers can apply when discriminating an employee based on two defenses: First one called business necessity reason to discriminate which is necessary for the safe and efficient operation of a business. Second defense called Bona Fide Occupational qualification (BFOQ) where employers can discriminate based on the nature of the job. Sexual Discrimination: In sexual discrimination the law states that the male and female must not be treated differently. Government Statues: The age discrimination in Employment act (ADEA) of 1967 which is enforced by the EEOC prohibits any discrimination against workers over the age 40 years. The Vocational Rehabilitation act: The vocational rehabilitation act (VRA) of (1974, 1975) applies to federal contractors and recipients of federal financial assistance. It is enforced by the Office of Contract compliance and Policy (OFCCP) a division of the department of labor (DOL). Pregnancy Discrimination Act: The pregnancy discrimination act (PDA) of 1978 stipulates that pregnancy must be treated the same as any other medical condition in the workplace. Unit 3: Employee Relations: Employee relations and labor relations are too different things. Employee relations are very broad practice that influences all terms, conditions, rights, privileges, and interactions of employment. Managers most of time is spent to engage employee relations activities. Employee relations are interaction between employee and manager. Labor relations: Labour relations on the other hand consist of very narrow practice that is applied to interactions among management, workers, and labour unions in an organization that has union representation of its employees. Labour relations are found by the government when federal and state troops were commonly sent to separate groups of protesting workers who were united in the cause of better and safer working conditions. Finally the government did begin to recognize the need for the workers to have a say in their organizations and began to support the right of individual workers to develop organized fronts to influence employers to listen to their concerns and demands. There were two federal labour union organizations. They are American Federation of Labour (AFL), and Congress of Industrial Organizations (CIO). They were bit opposed to each others before but coming to nowadays they came to single union which we call AFL-CIO which supports labour unions through political lobbying and education programs. A labour union represents collective groups of workers in an organization by negotiating employee relations activities such as work rules, job descriptions, hiring practices, compensation structures, and other work related matters through written contracts known as collective bargaining agreements. Organizing Activities: The employees of the labour union will seek assistance of union organizers, who would hold campaign meetings outside the workplace. Workers casts vote to petition the NLRB will hold a union at the
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workplace. The union will begin the bargaining process by submitting a list of demands about working procedures, compensations, scheduling, job security, and other work related activities. HR Contributions to Establishing Expectations: The HR manager plays important role in entire strategic planning process which includes goals, strategies, standards, policies, and procedures. If all of them are in one place then HR manager focuses on job design activities which consists of arranging tasks, duties, and responsibilities into positions. The primary function in the job design process is called job analysis which consists of identifying knowledge, skills, tasks, duties, responsibilities, and the working environment for each individual who holds a position. The job analysis should take place in organization at least once a year. The first result of job analysis is the creation of the document called job specification which identifies the knowledge, skills, attitudes, and abilities that determine the qualifications for a specific position. These documents used as part of selecting process by managers. The rights of employees: The employees of the organization should have same rights as others do. Organization should full fill the expectations of workers reasonably. By setting up rules or giving them handouts and introducing their rights within the organization will help employees to understand their duties and liabilities. If the employee is misbehaved or passed some other mistakes he/she should be forgiven and the HR managers have to have them to feel like they are inside the organizations culture. Employer must reasonably provide better working conditions and safe environment to its workers within the organization. Common Law rights applied to the Workplace: Common law is also called case law which came from England and is interpreted individually by different states in the United States in current times. Common law usually involves four factors if there any disputes between individuals: First one: is the concept of responsibility or the duty to perform some action Second factor: accountability is defined as the duty to account for ones actions. Third: is doctrine of negligence which involves a breach of the duty that is owed to someone else. Fourth: there is the doctrine of liability, which is the duty to make things right in the case of breach of duty: The duty of manager is ensure that the premises are safe and harmless for the lawful visitors by exercising reasonable care in the supervising the activities of others. Unit 4: Management Ethics: Introduction to Ethics: Ethics are about doing the right things, dont repeating the mistakes that are passed before. Ethics mostly refers to experience where people able to determine what is wrong and what is right. In organization the most experienced manager will speak about his/her employers the mistakes and successful achievements that he/she experienced in his lifetime and everyone will listen intentionally to do not repeat the wrong actions that is passed by the manager. Can ethics be taught to managers? Ethics can be taught to managers partly because parents and role models have effected during childhood times. Ethics can be gained through beliefs, future consideration, and experience. These gained elements during some years of time will have huge effect to individuals and helps them to do not repeat the same mistakes that are past before. Managers can learn ethics by reading some cases that are related to organization and which were written by the experienced managers who used to work in the same organization or have similarity in this field. In todays world the ethics can be taught to managers partly.
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Ethics training program: Ethics training program in hospitality is very important part. Every organization has its own culture including different people with different attitudes and beliefs. Minority of people came from different culture, religion, nationality and they also think differently. Its very important for HR managers to train and make them to think only about organizations goals. They may act differently someone might think doing such and such things will help to organization but others might not be agree. However the behavior of the employees should be the same, they should leave their religious beliefs and other beliefs at home. However, its for the managers to carefully communicate with issues and understand thinking with respect of others. Managers should become proactive where they will focus on long term of thinking instead of short term problem solving. Another duty of manager is to acquire specialized skills in their respective disciplines, as well as supervisory skills for interaction with others. Experienced human recourse practitioners include these criteria in their management selection activities. Awareness and Paradigm Shifts: In managerial decision making, it's important to realize the awareness of ethical issues in order to make managerial decisions. However there two paradigms which illustrated by the proverbs: Give a person a fish and feed him for a lifetime. Or another one is Dont give a fish to a person but teach him how to fish. This is very important paradigm shifts in every organization however working and living in evolutionary world becoming more changeable. Managers must shift to second paradigm in order to make implement changes, improve the efficiency and effectiveness of workplace and in this case they can achieve goals of organization easily. Changes are happening around the world and affecting to hospitality organizations too. Moral and Social Audits: The moral audit focuses on activities which established for workers, managers, and shareholders to compare those actions with codes of ethics for the corporation. The main aim of this moral audit is to ensure by The social audit focuses attention outside of the training the manager or worker to become ethically organization. It focuses on customers, and in their positions. community stakeholder groups. Professional Responsibilities of Hospitality Managers: There five responsibilities for professional management practitioners: 1. Responsibility to carefully select the hospitality organization 2. Responsibility to acquire and maintain levels of training and education to ensure competency: 3. Responsibility through technical comprehension of tourism/hospitality interfaces 4. Responsibility requires skills to establish and maintain standards 5. Responsibility to personal and professional conduct If hospitality and tourism managers expect to be treated as professional s, they must meet the standards associated with any profession. Cultural diversity and Relativism: The group of people with shared values, beliefs, and attitudes can stand for the meaning of culture. In American culture consists of many races, ethnic backgrounds, communities, and global regions. Also by having multiple influences which makes this culture heterogeneous in nature. There cultures applicable to entire societies, such as for business organizations, social organizations, industry segments and certain types of institutions. The culture for a company or corporation referred to as the organizational culture, which is the collection of shared values, attitudes and beliefs for members of that organization. Within the organizational culture employees from different cultures will be able to celebrate or arrange religious or traditional ceremonies that are different to other minorities within the organization. Many people confuse the
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term of organizational climate with organizational culture. The organizational climate is a collective worker emotional response to the practices of that organization. Cultural Relativism: Relativism is relative to individual environments to different categories of people. When individuals behaviors are influenced by norms (expectations) of a specific culture, they are behaving in accordance the unwritten rules of cultural relevance. Universality is the same in every level and every area. Motivation to Commit Immoral and Unethical Acts From a philosophical approach, two ethical concepts may provide insights to what makes individual commit immoral or unethical acts. One concept is referred to as self-egoism, which most people consider to be personal. Another concept is called ethical relativism, which most people refer to situational ethics or ethics of convenience. The actions of the self-egoist are motivated primarily by personal with little regard to the ramifications experienced by others. Ethical Test: There are two philosophical approaches to testing the correctness of an action from an ethical perspective. First test is based on the results of an action. The most common testing is referred to as utilitarianism. Utilitarianism focuses on the utility of the consequences of an action by measuring the harm or good inflicted on others as a result of the action. The purpose of utilitarianism is to maximize good and minimize harm through one's actions. Another viewpoint for ethical tests is considered to be the formalist approach. This thinking considers actions to be morally correct or incorrect in and of themselves, with no regard for the consequences of the action. Ethics and HRM: The human resource manager (and all good managers) should be well versed in matters of legal, ethical and moral law for the purpose of testing the actions of managers to ensure the prevention of harm on any member of the stakeholder groups. This is the means by which the manager protects the assets of the organization and enhances career potential. UNIT 5: RECRUITMENT AND SELECTION STRATEGIES: Strategic Planning: Thing in the external environment that influence human resource functions could include the labour market, competition, economic factors, and other things that influence the levels of KSAAs (knowledge, skills, attitudes, and abilities) that exist outside the organization. At the same time, the managers look inside the organization a teach department. This process is called an internal audit. In this phase, the managers are collecting data about management styles, resource allocation, work environment, interdepartmental relations, productivity and other factors. Once the data collection from the internal and external environments is complete, the manager analyzes the data. During the analysis, the data from inside the organization are categorized into strengths and weaknesses. When the analysis is complete, the managers have a listing of strengths, weaknesses, opportunities, and threats. This is why this type of analysis is referred to as SWOT analysis. Every year the managers should return to the mission statement to see whether existing mission still makes sense to the organization, if it requires some changes. Once the
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corporate mission is audited, a separate mission for each department should be established to reflect how that department influences to the overall mission for the organization. If every department takes this strategic approach to managing their functions, the organization becomes mission-driven organization. It is the job of the human resource practitioner to convert the hotel, restaurant, theme park, resort, cruise line, airline whatever into mission-driven organization. The rest of the strategic planning process involves establishing objectives, strategies and tactics, which are converted into policies, rules, standards, and procedures for each department throughout the organization. Recruitment Strategies: The process of recruitment involves generating a pool of qualified applicants for positions within the organization. The labour market consists of individuals in possession of knowledge, skills, attitudes and abilities (KSAAs) that meet the standards for employment within the organization. In the recruitment planning process, the HR manager matches the profiles of the labour market with the KSAAs, as documented in the job specifications for each position within the organization. The KSAAs represent the internal quality drivers of the recruitment process, with the remaining requirement consisting of internally generated quantity drivers. Recruitment strategy consists of a forecast o vacant positions that will require placement over a period of one year. "Person power" planning would be a more politically correct term; however, many organizations still use the old terminology. Manpower planning involves calculating employment growth and attrition rates to project the numbers of positions to be placed in each category during each month over the next year. Once the quality and quantity drivers are in place, the next step is to identify sources for recruitment. This practice is known as sourcing. From an internal perspective, anyone who has access to those within the organization is considered to be an internal source for recruitment. External sources include competitors. Experienced HR practitioners are always on the lookout for talented individuals employed by other companies. Evaluating Recruitment Planning and Practices: A very large portion of the human resource departmental budget is allocation to the recruiting practices. As is the case with any evaluative process, the two items for consideration are effectiveness and efficiency. The combination of efficiency and effectiveness measures is referred to cost/benefit analysis. Human recruitment activities are evaluated in terms cost/benefit analysis. Selection Practices: In selection of practices the organizations will look into qualified individuals in order to position them correctly inside the organization. Correctly chosen individuals will understand the requirements, mission, vision and core values of the organization. The selection process requires picking the most qualified applicant to join the organization. Selection for employment requires applicants to fill the applications and applicant records for a period of time and may be used; for consideration for future positions, or the HR office may require an applicant to complete a new form for each position applied for. There are some steps and requirements in pre-employment activities: 1. Applicants submit resumes and complete application blanks in person or on line 2. Short pre-screening interviews with a human resource representative 3. HR rep eliminates unqualified candidates from the collection 4. Applicants are scheduled for screening interviews
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5. HR rep selects three to five candidates from that collection for further selection 6. Pre-employment tests for ability, aptitude, personality, honesty or assessment centers 7. HR rep forwards pre-employment file to hiring department managers 8. Managers from departments conduct additional interviews with remaining candidates 9. Manager advises HR rep of selection for employment 10. HR rep makes a tentative offer to the candidate of choice pending drug or medical test results 11. Security office is authorized to conduct background investigation of selected candidates 12. A formal offer of employment is extended to the candidate indicating start date and orientation reservation 13. Applicants who were not chosen are advised of their status 14. Applications are retained in applicant files for one to three years Employment Interviews: Interviewing is the most commonly used, yet least effective, form of job selection activity. Unfortunately many managers dont have skills in interviewing applicants and this might affect selecting incorrect person to organization. Smart HR managers provide thorough communications training to hiring managers for them to develop skills in learning the most from a candidate despite a limited interviewing tool. One of the first interviewing skills taught to operations managers is the importance of honesty in the interview process. Highly trained interviewers may use a relatively effective technique called the non-directive interview. Another form of interviewing technique that is reserved for trained interviewers is called the stress interview. The purpose of this technique is to observe the applicants response to a stressful session of discussion. However there also many types of interviewers but knowing or deciding which type of interviewers skill does the organization need to have is common issue to every organization in employment interviews. UNIT 6: TRAINING AND DEVELOPMENT STRATEGIES Training Needs Analysis: The purpose of needs analysis is to settle training problem that might exists in an organization. The hardest part of the problem-solving process is to identify the root problem from a list of symptoms. Many top managers make the mistake of throwing training programs at problems that are either organizational or workplace engineering problems. Competency gap occurs when between knowledge and skills on one hand and standards for performance on the other. Role of Training Manager: Any proactive human resource office will have a manager who is responsible for the oversight of all training programs. This individual should be a train professional, responsible for needs analysis, training design, training development, and training evaluation and reinforcement. the primary role of the training manager is to reinforce the value of training to the organization through cost/benefit analysis, as well as teaching training skills to operating managers, which is sometimes called "train the trainer initiatives. Types of Training:
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Most individuals are familiar with mechanical/ technical skills training, which are commonly called skills training programs. The most commonly known method of implementing these programs is through training methods that occur at the actual worksite during the hours of operation. This method of training is on the job training (OJT). Professional managers have a tendency to look unfavorably upon this method of imparting technical skills. OJT training involves all of the steps applied to other formats for training individuals in the median technical skills of the job. Development and Evaluation of Training: The learning objectives of organization drive the development and implementation of the training program which is very necessary for learners of the personal benefits that will be experienced as a result of the training program. This is called WIFM: What's In It for Me? This is an aspect crucial to delivering training to adult learners. Evaluation of Training Programs: Things are considerable; training outcomes are no exclusion. Important criteria for considering in training include cost/benefit to the organization, accomplishment of objectives, and personal improvement in the behavior and morale of workers. All of these things can be measured in quantifiable and qualitative terms. Feedback is the breakfast of champions which the trainers should have. More positive feedbacks should be provided throughout the training program. Employee Orientations: Fresh employee direction falls within the category of knowledge training. Most organizations benefit from two types of new employee orientation. The first referred to as a general orientation session and the second phase referred to as the department orientation session. Primary objective of orientation programs is to assimilate new employees into the organization. This means that the new employee should be made to feel comfortable with the new position by learning a little about the organization and the people who work there. The purpose of the new employee orientation is to make without difficulty in this transition into the organizational environment, by sharing information that explains whats, whys, and whereas in an effort to make the new workers comfortable in their new positions within the organization. Unit 7: Employee Retention Strategies: Retention: Employee retention is an outcome connected with concrete management practices and proactive decisionmaking activities. The flip side of retention is employee turnover, which is the total number of voluntary and involuntary separations from the organization divided by the total numbers of employees. Let's say the cost of turnover for a position is about equal to one year of salary and benefits for that position. In order to manage or identify good workers and implement some analysis, there are three management areas. 1. Management policies which concerns compensation and benefits afforded to workers. 2. Professional management practices which company should increase or decrease practitioners. 3. Management policies and practices concerning employee incentives to perform above the standards set by the organization. These three strategic approaches to management contribute to employee satisfaction but not happiness of workers, which produces the outcome of employee retention.

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Compensation and benefits: Compensation is additional bonus which is provided by organization to its employee/employees, for showing that they worked hard or successfully done their work inside the organization. The compensation is usually money or something valuable as money for employees. Compensation divided into two different categories: 1. Direct compensation includes pay and financial incentives as consideration for work that is performed through the employment relationship. 2. Indirect compensation may be considered to be those aspects of compensation that are not paid direct through dollars, but provide something of value to the worker in return being employed by the company. There are a few ways to provide compensation in the form of pay to employees. 1. The wages, which are calculated, based on time, were usually by the hour. 2. The Salary, which is calculated at a consistent rate from pay period to pay period. 3. The Piece rate is payment based on units of production. 4. The stratified unit production payment is referred to as modified piece rate. 5. The Incentive pay includes commissions and bonuses based on levels of performance. The most common form of indirect compensations involves employ benefits and perquisite, commonly referred to as perks. Benefits reward employees for membership in the organization and include items such as insurance, and time off benefits. Perquisites are luxury items intended to reward employees for organizational membership, such as company country club memberships and access to recreational facilities. The two major external factors that influence compensation strategy are labour market conditions involving the supply and demand of KSAAs: 1. The compensation practices of competitors in the industry, 2. Geographic locations. Internally, there are three potential factors influencing compensation strategies. These are the commitment to be a wage and salary leader, lag or follower. A wage leader strategy involves being the best paying organization relative to the competitors, while the laggard intentionally pays the competitive rate. The wage follower will match the average rate of among the competition for each employment position. Employee Benefits: Employee benefits such as indirect compensation are usually given to full time employees as bonuses for membership in organization. There are two types of benefits: those that are voluntary on the part of the employer to provide to employees, and those that are mandatory as determined by law. Mandatory Benefits Mandatory benefits of employee within the organization is mainly concentrated on workers' compensation benefit providing medical care, disability payments and death benefits resulting from a work-related accident or illness. Employees' compensation payments are often in the 100s of thousands of dollars range for medium-size hospitality organizations. Another factor influencing workers' premiums is the risk assigned by industry. Most areas of the hospitality industry are considered to be high-risk workplaces, according to workers' compensation actuaries. Thats why Workers' compensation laws vary by state.

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Unemployment compensation: Unemployment compensation is referred to when the person working in a company gets fired by organization or by his own lay off he/she has to get rate paid until he is going to be able to work in other organization. The human resource managers enforce strict policies concerning involuntary separations from the organization. Social Security: Social Security Act and are administered by the Social Security Administration, a federal agency. The employer matches payments into Social Security retirement accounts for each employee on the payroll. Social Security was never intended to provide total retirement to individuals in their later years the intent of the benefit is to supplement other retirement income for retirees. COBRA: Consolidated Omnibus Budget Reconciliation Act refers to extension of health insurance coverage to employees who are eligible for "qualifying events." Qualifying events are defined as circumstances surrounding an employees situation after leaving an employer. Insurance coverage for a period of 90 days must pay the full premium plus a 2 percent administrative cost to the former employer. Voluntary Employee Benefits: The reason employers offer benefits to employees is to compete with other organizations in the industry and geographic location in terms of creating employee loyalty to the organization. The importance of benefits seems to vary with age groups. For instance, younger workers seem to place less emphasis on retirement benefits than older workers. Workers with families place more of an importance on family benefits, as opposed to individual benefits, and so on. Insurance benefits provide coverage for individuals in need, given certain circumstances. Health care coverage is very important to most people, as the costs of medical care continue to spiral rising. Most organizations offer two types of health care coverage: 1. HMO stands for health maintenance organization. The original intent of HMOs was to provide preventative care to individuals before they became ill. 2. PPO stands for preferred provider option, which is a hybrid of what was once referred to as indemnity insurance. Other types of insurance include life insurance, which pays a benefit to named beneficiaries in the event of the death of a worker. These payments are intended to provide final expenses and provide a small portion of income for remaining family members. It makes distinction between compensation, which applies to workplace accidents and illnesses only. There two types of disability insurance: 1. Long-term provides income to individuals who are unable to work due to illness or accidents. 2. Short-term disability provides incomes for shorter ranges of time, after which a long-term policy would start to contribute if an individual has such coverage. Another category of benefits is referred to as time off benefits. With these, the employee is paid for time that is not actually worked. These include paid holidays, vacations, and sick or personal pay. Most organizations require job relatedness as a condition of education assistance, since they feel that they should only pay for those development activities that will enhance the employees performance in the organization. Due to the very high costs associated with child care, only a few hospitality organizations provide this benefit; those that do certainly earn the loyalty of parents with young children.

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Employee Incentives: Employee Incentives can be described as extra compensation that is provided to the employee working in an organization. Incentives may be established in three levels: 1. In which particular workers strive to earn their own incentive rewards. 2. Group incentives are shared among members of a work unit, such as an operating department. 3. Incentives may be offered on an organization-wide basis, in which all workers will share in the accomplishment of a goal that exceeds normal operating standards. Employee incentives have to concentrate full time workers, who are working in an organization for a long time and have shared vision, mission, and objectives of the organization. Employee Recognition: One of the employee recognition programs is employee of the year where managers of an organization try to motivate employees who are walking out of shoes of the company. Even implementing such programs dont really wow some employees. The reason for that the compensation of recognition program consists of money award, however some individuals of the company really dont like it. They think money is not important. One ideal scenario is to combine a challenging and legitimate financial incentive program with individual and team recognition rewards. Safety and Wellness Programs: Its the responsibility of Human Recourse Department to create safe environment for lawful visitors (employees) within the organization. The responsibility of HR department in creation of safe environment is required by Occupational Safety and Health Act (OSHA) which provides for safety regulations for worksites. In addition to safety programs, human resource practitioners usually provide other programs to assist the workers with personal issues. These programs are collectively referred to as wellness programs. Wellness programs may include physical fitness programs, health and nutrition programs, financial counseling, and other activities aimed at the welfare of the employees. The philosophy behind wellness programs is that healthy and focused people are productive workers. UNIT 8: COMMUNICATION STRATEGIES: The Importance of Communication Skills for Managers: One of the first things in hospitality organization is communication. Communication represents the face of the company when the manger or employee is communicating with others. Especially its for the media nowadays to present how the company acting. The communication is not just talking or speaking but its also acting because actions do speak louder than words. The high skilled manager must have excellent communication language inside or outside of the organization. Imagine if the person with good knowledge, skills, ability, but less communication ability cant really achieve organizations goals. For instance: The knowledge, skills, and ability are not important without communication skills. Therefore manager wont become successful in every type of business without having communication skills. Listening Skills: The listening skills top of the list of effective managerial communication skills. However senior managers spend their 85 percent of their communication time by listening to others and for filling their needs within the organization. Fact shows that changes within the organization are made due to listening internal and external customer needs, wants, and demands. Following listening scenarios will be involved by managers:
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Problem-solving Conflict resolution Performance evaluations Resource allocation Brainstorming Strategic planning Organizing departments Customer satisfaction indicators

Scheduling Assigning duties Hiring personnel Coaching and discipline Policies and rules Practices and procedures Other activities to support your staff members

Each of them involves maximum decision making by effective listening.

Barriers to Effective Listening: Effective listening requires time, energy, concentration, technique, and objectivity. Listening actively actually requires more effort than talking or writing. Many managers think they are actively listening to people in fact they are creating barriers to effective listening. Effective listening of internal and external customers helps to identify knowledge, skills, behaviors, their wants and needs. Holding meetings inside the organization must be set convenient time for everyone, so that they can listen properly by not going out of topic. However employee gets tired and enters meeting room and spending some minutes or hours he cant understand what the goal of the speech is all about. In this case he might miss something in his life (opportunity). Effective listening can be achieved when everyone is on good mood. Sometimes we see people playing pencil in their hands, smiling, or doodling, in this case barriers to effective listening will occur. The barriers to effective listening might occur due to following reasons: Planning the Response: One expert describes the two-person conversation as a multiple-party monologue. Both start talking, and the first person to draw a breath is declared the listener. Mood and Experience: Some individuals are morning people; if the manager does not talk with the worker, the worker may feel that the manager does not value the worker's existence. Lack of Attention: Some individuals prefer talking to working. The manager must determine if the workers visit is a worn avoidance tactic. If it is suspected that this is true, the manager should suggest that the worker schedule another time for the discussion. Formal and Informal Communication: Formal communication takes place when people are representing the interests of the organization as part of their appointed duties. A manager who conducts a performance appraisal is communicating formally because the manager is acting in an appointed capacity, and is engaging in a form of communication that will be documented for the record. Other types of formal communications include, but are not limited to, memos, letters, meetings, bulletin board postings, announcements, policies, procedures, standards, and newsletters. Informal communication exists outside the mainstream of the organization's communications channels. A commonly cited example of informal communications is called the grapevine. Practically all members of an organization participate in the grapevine. It is the informal communication process that takes place among people within the organization or industry. Usually, the grapevine consists of rumor, innuendo, speculation,
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and hearsay information. Topics of communication may extend beyond organizational issues into people's personal lives. Communication Skills for HR Practitioners: The human resource practitioner engages in verbal and written communications processes on a daily basis. In addition to employee relations counseling, employment interviewing, dispute resolution, incident investigations, and other daily interactive processes, the HR manager is the author of many written documents that are matters of official communication within the organization. Human resource managers commonly fall within the scrutiny of third party investigators that include administrative agents, attorneys, adjudicators, as well as other external reviewers. HR practitioner must be effective in authoring less complicated written materials such as letters, memoranda, notices, incident reports and disciplinary warning documents. Being a manager's manager, includes being a communicator's communicator, as effective communication abilities are the essence of effective managerial interactions. HR information Systems: Management information system (MIS) is the collection of facts into a usable information system. A management information system that is used for human resource management applications is referred to as a Human Resource Information System (HRIS). Resources include people, materials, equipment, and finances. In the world of MIS, the input side of the productivity model consists of data resources. HRIS process converts data into useful information that is used to produce reports and other outputs that are shared with multiple parties. So, the HRIS will use data to create information (sender/encode), and then transmit that information (channel, media) to individuals with a need to know that information (decode/receivers) with a conclusive mechanism for responses to that information (feedback loop). It is safe to say that all management information systems include HRIS systems. A human resource database would consist of records located in employment (personnel actions and applicant flow data), compensation (payroll and benefits), job analysis (job descriptions and job specifications), and training or development files. For instance: Collection of this date will help in satisfying internal and external customers. UNIT 9: Leadership Strategies: The Practice of Leadership: The concept of leadership is much discussed and it is still remains difficult to describe. However leadership is very broad practice within individuals. Having unique skills, ability, knowledge, and being proactive individual still cant become a leader. Also becoming leader requires a lot of respect, vote, trust, and acceptance by the group of people or an individual. Some people believe in that to become a leader you should have blood of leader (such as father was the leader). But its not true, however human being is a social animal by nature the experience, background, and other things will help individual to become a leader in his/her organization. We should not think that the managers are leaders no! But the leaders are managers! Leadership and Management: People often confuse leadership and management, when in fact they are two different things. Some experts speak of leadership from the standpoint of the support role owed to the followers, which are referred to as stewardship qualities of leaders. The philosopher Lao Tzu proclaimed that leaders must learn to follow, which is one of the signs of stewardship." One tendency of effective leaders is their willingness to share the role of leader and follower in appropriate situations.
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Traditional Models and Theories: Leaders are categorized as having conceptual strengths in structure, relations, political skills, or facilitative skills. Most widely acclaimed leaders possess strengths in all these categories. A number of studies have been accomplished to identify characteristic and response theories to explain leadership. Trait theories cite personal characteristics which help us determine to what extent leaders will settle toward transactional vs. transformational leadership styles. Behavioral theories focus on internally motivating factors of task and relations, while possibility theory considers the same tendencies from external motivating aspects. These traditional theories assume an objective viewpoint of interactions between leaders and Followers. Other research departs from this tradition by identifying means used by leaders to elicit follower participation. These are basically focused on communications skills. While this may be labeled as a form of manipulation, it may be more accurately described as effective man-aerial communication to achieve common and constructive outcomes. Ethics and Leadership: Some of the research indicates that the moral aspect has evolved into a code word for innovative and motivational leadership. It would be hard to imagine a true leader who did not create an image of personal morality in the minds of followers. Even leaders in illicit environments portray a code of personal values in their behaviors and communications. The leader, by the nature of her or his relationship to others, is highly scrutinized in this regard. Therefore, it seems likely that the credibility factor is greatly influenced by the moral and ethical value systems of the person occupying a leadership position. Emerging Theories and Models: The leader of today deals with such diversity as to require much more advanced levels of sophistication than possessed by former leaders. Emphasis in emerging leadership models provides focus on the dynamics of the followership. Individuals in todays organizations possess stronger values of individualism and sophisticated convictions with regard to quality of lifestyle issues. Also, today's workforce comprises individuals who are knowledgeable, and adamant about the preservation of individual rights in the workplace. Self-Analysis and Contextual Relations: Just as before leading, one must learn to follow, before one can know others, one must know oneself. One expert reminds us that leaders see individuals as holistic beings. People are more than their positions, accomplishments, and status. They are fully developed human entities with all of the experience, knowledge, and emotions possessed by our beings. Developing and Improving Leader Relations: The results of the researchers show that leaders are self developing individuals. They know what are their strengths and weaknesses. But they usually try to hide their weaknesses and rely on their strengths. One person said The greatest leader will have the greatest weakness. In some cases its true but going back to history of popular leaders such as Napoleon or Hitler and looking at their life background we can easily see what kind of important steps they took to become a leader. No one is perfect, just thinking about leaders we should not forget mistakes of leaders. Changing our topic to hospitality organization we can see leaders who can easily motivate employees and make them to follow their steps in achieving organizations goals.

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Transactions and Transformations: Transactional leaders seem to be those who possess the ability to influence others through highly developed interpersonal relations skills. The power of influence is certainly a key skill shared among all leaders. In some organizations, leaders may rely more heavily on this set of skills, depending on organizational structure. Unit 10: EMPLOYEE MOTIVATION: Motivation and Money: Motivation is willingness to do something better by inspiring needs, wants, and demands of employees by paying them more. Employees are motivated in different ways: By the additional payments, increase in salary, compensations, and good feedbacks that are given to the employee after the work done. Many individuals might think the money is a good motivator, but experts show that money is not a good motivator for many workers. For managers, a performance bonus is primarily a measurement of accomplishment, with the actual dollar amount representing the reward for achievement. Persons have varying needs and priorities of need. For this reason, there is no general rule concerning motivators for different people. The manager does not possess the ability to motivate another person. This is because motivation comes from within a person, not from external sources. Therefore, the best a manager can do is to get others to motivate themselves. Managers accomplish this by identifying unfulfilled perceived needs and wants for each individual. Once needs and wants are identified, the manager makes every attempt to combine need fulfillment with performance outcomes. This combination results in motivated workers. Money: Paying hourly or daily wages to workers is not a good motivator. However many people wants to get the salary, When a worker receives a pay raise, that person is content for a few weeks. After that time, the amount of the paycheck becomes the expectation, and the worker feels that more money is deserved. Theories of Motivation: Many researchers tried to develop theories relating to motivation which describes the "whys" of human motivation are referred to as content theories. Those that explain "how" to motivate people are considered to be process theories. Below we will start with content theories and conclude with process theories of motivation. Hierarchy of Needs: Psychologist Abraham Maslow developed a model that depicts unfulfilled wants and needs as motivating factors. Maslow contends that five categories of needs exist in a hierarchy that ranges from lower level needs to higher order needs. As one set of needs becomes mostly fulfilled, the set of needs on the next level becomes a motivator. Maslow indicates that individuals who mostly fulfill lower level and higher order needs will seek fulfillment of the highest possible need. That need is called the need of self-actualization. Self-actualization occurs when a person seeks to be all that a person can be in a holistic sense. This person is at peace with the self, having attained a self-perceived level of spiritual, material, and personal contentment. In the past, most people pursued self-actualizing needs only in later adult years. Current generations of adults start reaching for self-actualizing goals in their early 20s, due to higher levels of evolution among

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newer generations. According to Maslow, less than 2 percent of the world's population attains the level of being completely self actualized. Two-Factor Theory: Researcher Frederick Herzberg agrees with Maslow that there is a hierarchy of lower to higher order needs. Herzberg suggests that lower order needs are extrinsically (external) based, while higher order needs are intrinsic (internal). According to Herzberg, lower order needs are not motivators; rather, they are hygiene factors. By this, Herzberg implies that lower level needs do need to be satisfied for individuals to pursue higher order needs. The potential satisfaction of lower level needs does not motivate people to perform work. Instead, the absence of needs fulfillment, such as pay, working conditions, and safety, will make workers dissatisfied. Dissatisfied workers will not be motivated by higher order needs. Maslow and Herzberg provide two of the most popular content theories of motivation. Content Theories of Motivation: Core motivators may be altered more subtly by immediate workplace experiences. Clayton Alderfer reworked Maslow's hierarchy into three core needs categories that include: E-existence; G-growth; and Rrelatedness. Appropriately, he named this theory the ERG model. Example: Imagine there two people are competing for the same position of the job, at that time both of them would be motivated at that time for the G need, or need for growth. The person who won in competing to the position of the job will continue to be motivated by growth. The individual who didnt enroll to the position of the job will dissatisfy and use the model of R which is relatedness by disappointment resulting from not being selected for job. Process Theories of Motivation: Process theories of motivation describe how people respond to motivators through behavior. While the content theories described previously discuss the whys of human behavior, process theories focus on how to motivate workers to enhance their performance levels. Other Factors that Contribute to Motivation: Motivation concepts are certainly important for understanding the dynamics of workers' attitudes. Attitudes have to do with the willingness of workers to perform tasks and activities. A motivated workforce does not necessarily guarantee productivity. Productivity depends on psychological factors as well as engineering factors. Work area layout, division of tasks, tools to do the job, technology, and other factors are within the scope of workplace engineering. A combination of engineering design and management of behaviors is required to affect worker satisfaction and enhance productivity. Job Design and Motivation: Job design is very commonly used activity in almost every hospitality organization to identify knowledge, skills, attitudes, ability, and working area of the employee. This is very important element in motivating employee from the results of job design activity. The Job design is very important to identify where the manager left motivation gaps and important steps taken to identifying knowledge in every area where borders are meant to be. In these times of corporate downsizing, job enlargement is a popular alternative. Job enlargement involves adding more duties to an existing job. The additional duties do not usually include added responsibility and authority. Therefore, job enlargement is not a motivational technique. Sometimes managers inadvertently penalize good workers by adding additional responsibilities to their jobs.
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CONCLUSION: After reading all the chapters from Study Pack and additional information from Mr Tippinss examples during the class which helped me to understand better in what the hospitality is all about. It helped me to answer common questions like: Who are employees and what benefits well get from them? What is Job Design, Job analysis, and Job specifications? What is the difference between Employee and Labour and so on? The Human Recourse Management is the essential key to success in all terms of business and communication.

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