1. HA 7712: Human Resource Management Professor Sturman, Spring 2010
The Significance of Human Resources
January 28, 2010

2. HA 7712: Human Resource Management Professor Sturman, Spring 2010
Why Do So Many Hate HR?
• WHO hates HR?
• Your experience and perceptions

3. HA 7712: Human Resource Management Professor Sturman, Spring 2010
Some Basics of the Hotel and
Restaurant Industry
• Significant portion of economy
• 8.1% of all employment
• 8.80 million employees in Foodservice and drinking places
• 1.71 million employees in Hotels, Motels, Casinos, and B&Bs
• 6.7% if all establishments
• 560,353 establishments
• Higher unemployment
• Greater growth in employment
• Lower wages

4. HA 7712: Human Resource Management Professor Sturman, Spring 2010
Key Issues for HRM in Hospitality:
What is Keeping Managers Up at
Night?• Leveraging Human Resources is managers’ biggest
concern (for both restaurants and hotels)
• Industry employs large numbers of lower-skilled workers
• Low-skilled workers have significant impact on customer
• Industries pay less for higher levels of skill
• Very high turnover (and sometimes, too low)

5. HA 7712: Human Resource Management Professor Sturman, Spring 2010
Looming Challenges for HR
• Supply versus demand for labor
• Aging workforce
• Increased gender and racial diversity
• More dual career couples and single parents
• Increasing benefit costs (25% of costs come from
employee benefits)
• Decreased employee tenures
• Internationalization of workforce – more diversity of
the workforce

6. HA 7712: Human Resource Management Professor Sturman, Spring 2010
Why Do So Many Hate HR?

7. HA 7712: Human Resource Management Professor Sturman, Spring 2010
How Much Do People Know?
• Manager perceptions
• 57% correct
• Student performance
• Your performance:
• Last Year’s undergrads:
• Last Year’s MMH:
• Your grades by section
• Management Practices:
• General Employment Practices:
• Training and Development:
• Staffing:
• Compensation and Benefits:

8. HA 7712: Human Resource Management Professor Sturman, Spring 2010
The Biggest Errors

9. HA 7712: Human Resource Management Professor Sturman, Spring 2010
What Do We Need to Learn?
• Knowledge gaps:
• Why so many misperceptions of staffing?
• Greater professionalism in HR
• Trend to evidence-based management

10. HA 7712: Human Resource Management Professor Sturman, Spring 2010
What Do We Need to Learn?
• Strategic gaps:
• How can HR contribute?
• HR as strategic partner

11. HA 7712: Human Resource Management Professor Sturman, Spring 2010
What Do We Need to Learn?
• Action gaps:
• What do you need to know how to do?
• How does HR get the resources to make good
investments?
• How do you make your HR department be strategic?

12. HA 7712: Human Resource Management Professor Sturman, Spring 2010
The Goal and Mission of HRM
• Goal:
• Contribute to business success!
• Mission: To get …
• the right person,
• to the right place,
• at the right time,
• for the right price!
and giving that employee…
• the ability
• the motivation,
• and the opportunity to perform!

13. HA 7712: Human Resource Management Professor Sturman, Spring 2010
Organizational
Performance
Employee
Behaviors
Organizational
Costs
HR Contribution Model
HR
Practices

14. HA 7712: Human Resource Management Professor Sturman, Spring 2010
Employee and
Labor/Management
Relations
HR Planning
and Analysis
Equal
Employment
Opportunity
Staffing
HR
Development
Compensation
and Benefits
Health, Safety,
and Security
Goal

15. HA 7712: Human Resource Management Professor Sturman, Spring 2010
What Does it Mean to Contribute
to Business Success?
• Improve Firm Performance
• Productivity
• Efficiency
• Quality
• Service
• Legal Compliance
• Preparation for the future
• Ethics
• Other priorities

16. HA 7712: Human Resource Management Professor Sturman, Spring 2010
How to Accomplish the Mission:
Obtain HR Fit
• Human resource policies should …
• Fit with the environment
• (Environmental Fit)
• Fit with the organization’s strategy & characteristics
• (Organizational Fit)
• Fit with the other HR policies
• (Internal HR Fit)

17. HA 7712: Human Resource Management Professor Sturman, Spring 2010
HR In Your Futures
• Your future HR tasks
• Human resource issues will be your largest headache
• You will need to make selection, compensation, and
appraisal decisions
• You will need to decide where to devote resources
• You will need to fire people
• Is your HR department working for you?
• Can your HR person identify your organization’s goals?
• Does your HR person know who your customer is?
• How does the HR department add value?