MODULE 3

HUMAN RESOURCE MANAGEMENT

Human resources (HR) is the department within a business that is responsible for all
things worker-related. That includes recruiting, vetting, selecting, hiring, on boarding, training,
promoting, paying, and firing employees and independent contractors.

This is mostly dealing with the people, It was very much in the beginning , that it started
as Labour Management to Personnel Management to Human Resource Management, to Human
Resource Development and further to Human Talent Search .

The department of an organization which focuses on activities related to employees,

Those activities that normally included as , recruitment, hiring of new employees, orientation and
training of current employees, employee benefits, career planning, discipline, labor controls and
retention of employees are a few of the jobs which the HR department is concerned.

SCOPE / ROLE OF HUMAN RESOURCES IN HOTEL INDUSTRY

The scope of HRM is indeed vast. All major activities in the working life of a worker -from the
time of his or her entry until he or she leaves- come under the purview of HRM.

Scope of involvement of HR department is :

1. Hiring of Employees / Recruitment

2. Training and Development
3. Carrier Planning
4. Employee Motivation
5. Employee Retaining
6. Industrial Relations

OBJECTIVES OF HUMAN RESOURCE MANAGEMENT

1. Increasing of Human Capital

2. Recruiting and HR Maintenance
3. HR Skills and capability development
4. Identification and compensations.
5. Cost and effectiveness systems results
6. Efficient Administration.
Human Resource Management is the process of recruiting, selecting, inducting employees,
providing orientation, imparting training and development, appraising the performance of
employees, deciding compensation and providing benefits, motivating employees, maintaining
proper relations with employees and their trade unions, ensuring employees safety, welfare and
healthy measures in compliance with labour laws of the land.

Activities of

Human Resource Management involves management functions like planning, organizing, directing
and controlling It involves procurement, development, maintenance of human resource

 It helps to achieve individual, organizational and social objectives

 Human Resource Management is a multidisciplinary subject. It includes the study of
management, psychology, communication, economics and sociology.
 It involves team spirit and team work.
 It is a continuous process.
 Behind production of every product or service there is an human mind, effort and man
hours (working hours). No product or service can be produced without help of human being.
Human being is fundamental resource for making or construction of anything. Every
organization desire is to have skilled and competent people to make their organization competent
and best.

Human resource management is meant for proper utilization of available skilled

workforce and also to make efficient use of existing human resource in the organization.
Companies are always in hunt for talented, skilled and qualified professionals for continuous
development of the organization.

RECRUITMENT AND SELECTION

Recruitment refers to the overall process of attracting, shortlisting, selecting and

appointing suitable candidates for jobs within an organization.

Recruitment is defined as the process of identifying and making the potential candidates
to apply for the jobs. Recruitment is called as a positive process with its approach of attracting as
many candidates as possible for the vacant jobs.

Selection is the procedure of selection or choosing the correct candidate, who is

maximum appropriate for a vacant job position in an organization. In other words, selection can
also be clarified as the procedure of interviewing the candidates and assessing their potentials,
which are essential for a precise job and then selecting the suitable candidate for the position.

The selection of a right candidate for a vacant position will be an advantage to the
organization, which will be serving the organization in accomplishment its purposes . Both
recruitment and selection work hand in hand and both play a vital role in the overall growth of an
organization.

The organization has to keep an eye on a proper hiring process or procedure, as a

enormous amount of money is spent for hiring a right candidate for a position. If a hiring is
wrong, then the cost experienced in induction and training the incorrect candidate will be a huge
loss to the employer in terms of money, effort, and also time.

A good choice of proper selectin requires the following steps:

1. Interview 2. Checking the references

3. Medical Examination 4. Final Selection
 RECRUITMENT PROCESS :
1. Recruitment Planning
2. Strategy Development
3. Searching
4. Screening
5. Evaluation and Control

TRAINING AND DEVELOPMENT

Training and Development is one of the main functions of the human resource
management department. Training refers to a systematic setup where employees are instructed
and taught matters of technical knowledge related to their jobs.

Whereas, Development refers to the overall holistic and educational growth and maturity of
people in managerial positions. The process of development is in relation to insights, attitudes,
adaptability, leadership and human relations.

Training and development programmes are designed according to the requirements of the
organisation, the type and skills of employees being trained, the end goals of the training and the job
profile of the employees.

These programmes are generally classified into two types:

(i) on the job training, and

(ii) off the job training.
The following training methods are used For the training of skilled workers and
operators-
 Specific job training programmes,
 Technical training at a training with live demos,
 Internship training,
 Training via the process of rotation of job.
 Training given to people in a supervisory or managerial capacity is – Lectures, Group
Discussions, Case studies, Role-playing, Conferences etc.

BENEFITS OF TRAINING

1. Training improves the quantity and quality of the workforce. It increases the skills and knowledge
base of the employees.

2. It improves upon the time and money required to reach the company’s goals. For
e.g. Trained salesmen achieve and exceed their targets faster than inexperienced and untrained
salesmen.

3. Training helps to identify the highly skilled and talented employees and the company can
give them jobs of higher responsibilities.

4. Trained employees are highly efficient in comparison to untrained ones.

5. Reduces the need to constantly supervise and overlook the employees.

6. Improves job satisfaction and thus boosts morale.

BENEFITS OF DEVELOPMENT

1. Exposes executives to the latest techniques and trends in their professional fields.

2. Ensures that the company has an adequate number of managers with knowledge and skill
at any given point.

3. Helps in the long-term growth and survival of the company.

4. Creates an effective team of managers who can handle the company issues without fail.

5. Ensures that the employees utilize their managerial and leadership skills in
particular to the fullest.

Training is provided to the following :

1. New employees
2. Experienced employees
3. Trainers.

Training is provided at two different locations:

1. Within in the organization

 2. Outside the organization.
JOB DESIGN
Job design (also referred to as work design or task design) is a core function of human
resource management and it is related to the specification of contents, methods and relationship
of jobs in order to satisfy technological and organizational requirements as well as the social and
personal requirements of the job holder or the employee.

JOB ROTATION
Job rotation is a job design process by which employee roles are rotated in order to promote
flexibility and Period of experience in the working environment.
Through job rotation, employees laterally mobilize and serve their tasks in different levels, the
ability to evaluate his or her capabilities in the organization increases.
Job rotation is intended to enhance motivation, develop workers' outlook, increase
productivity, improve the organization's performance on various levels by its multi-skilled
workers, and provides new opportunities to improve the attitude, thought, capabilities and skills
of workers.

JOB ENLARGEMENT
Job enlargement is an increase in job tasks and responsibilities to make a position more
challenging. It is a horizontal expansion, which means that the tasks added are at the same level
as those in the current position.
Job enlargement as the process of allowing individual workers to determine their own
pace (within limits), to serve as their own inspectors by giving them responsibility for quality
control, to repair their own mistakes, to be responsible for their own machine set-up and repair,
and to attain choice of method.
By working in a larger scope, workers are pushed to adapting new tactics, techniques, and
methodologies on their own, widening the breadth of an employee's responsibilities.
JOB ROTATION

Periodically moving workers from one specialized job to the another.

Job rotation is a strategy where employees rotate between jobs at the same business.
Employees take on new tasks at a different job for a period of time before rotating back to their
original position. With a job rotation system, employees gain experience and skills by taking on
new responsibilities.
JOB ENRICHMENT

Job enrichment is a management concept that involves redesigning jobs, so that they are
more challenging to the employee and have less repetitive work.

Job enrichment is a common motivational technique used by organizations to give an

employee greater satisfaction in his work. It means giving an employee additional responsibilities
previously reserved for his manager or other higher-ranking positions.

JOB SIMPLIFICATION
Job simplification is a design method whereby jobs are divided into smaller components
and subsequently assigned to workers as whole jobs. Simplification of work requires jobs be
broken down into their smallest units and then analyzed.

Job design technique in which jobs are broken into relatively simple tasks. It aims at greater
productivity through reduced application of mental and/or physical effort.

Simplification of jobs can help employees learn tasks rapidly, short work
cycles,
 allow task performance with little or no mental effort and low -skilled
and
employees can below-paid
hired and trained easily.
TRADE UNION AND LABOUR UNREST
During the 1830’s labour unrest and trade union activity reached new levels. For the first time
men began to organise trade associations with nationwide aims.

Labor unrest is strike action or industrial action undertaken by labor unions, especially
where labor disputes become violent. Such a conception of labor action was common in the
United States in the 19th century.

Causes for Unrest and Trade Unionism:

1. Demand for increase of wages, salaries and other perks. workers demand goes on
increasing with the increase in cost of living
2. Incentives festivals allowances, concessions etc requires a hike every now and then, workers
compare these benefits with other industries and demand them
–without comparing the capacity of the industry where they are working.
3. Working hours, rest hours, traveling hours are source of disputes. If houses are provided
some section of workers want to include travel time also as working hours.
Introduction of machines, computers modernization, and automation – In effect any act of
management which may result in economy in man power is resisted
4. More facilities like free meals free group travel etc is sought every now and then.
5. Non implementation of agreements awards and other local settlements – with full sprit
6. Stifling with recognition of labour unions though registered,
7. Attempt to weaken existing trade unions and trying to foist fake unions
8. Unhealthy working conditions
9. Lack of skill on the part of leader’s supervisors
11.Disproportionate works loads, favoritism
12. Victimization, nepotism attitude of management in recruitment, promotion, transfer etc
13. Some time’s unions, workers strike against mergers, acquisition, taken over,
disinvestments policies, of government and private sectors.

UNIONS IN INDIA

The latest amendment in the “Trade union act 1926” is as below If the
number of employees in the particular estabilshment is less than 100 then 10%
of the total employees is required to form a trade union.
If the number of employees in a particular estabilshment is more than 100
then the minimum number of members required to form a trade union is 100.
According to section 4 of the Act, any seven or more members of a Trade Union in
accordance with the provisions of the Act may make an application apply for registration of the
trade union.
There are two conditions subsequent to the same, firstly no trade union of workmen shall
be registered unless at least 10% or 100 of the workmen, whichever is less engaged in the
employment of the establishment are its members on the date of making of its application and
 secondly no trade union shall be registered unless on the date of making of application, minimum
seven of its members who are workmen are employed in the establishment or industry read more
at:

WAGES AND SALARIES

Wages and salaries are the remuneration paid or payable to employees for work
performed on behalf of an employer or services provided. Normally, an employer is not permitted
to withhold the wages or any part thereof, except as permitted or required by law.

Definition of Wages
Wages are usually associated with employee compensation that is based on the number of hours
worked multiplied by an hourly rate of pay. Generally, the employees earning hourly wages will
be paid in the week that follows the hours worked.

Wages and salaries usually include remuneration such as paid vacations, holidays, and
sick leave, as well as fringe benefits and supplements in the form of pensions or health insurance
sponsored by the employer.

WAGES : Wages paid to blue collar employees, paid daily, weekly or monthly, paid to jobs which
can be measured in terms of money’s worth.

SALARY : paid to white-collar employees: in monthly basis: paid to employees whose

contribution cannot be measured easily.

COMPENSATION : It includes all kinds of wages and other allowances and benefits, such as :
Lunch allowance, overtime allowance, transport allowance, leaves and holidays, medical benefits,
children education allowance, incentives, uniform allowance, bonus, and many more fringe benefits.

MINIMUM WAGE : It is a wage which must be paid to the employees weather the firm earns
profits or not, it should be able to provide all the minimum essentials required for the life to
sustain.

Fair wage :Fair Wages are minimum wage rates for specific occupations. They must be paid by
contractors doing work for governments with fair wage policies.

A Living Wage is the wage needed to provide the minimum income necessary to pay for basic
needs based on the cost of living in a specific community.

Introduction to Industrial Relations and Psychology

LEADERSHIP

Leadership is the capacity to influence behavior of others. It is also defined as the

capacity to influence a group towards the realization of a goal. Leadership is the quality of a
person which makes him unique, and such a person is called as Leader
 Leaders are required to develop future visions, and to motivate the
organizational members to want to achieve the visions.

Leadership Qualities of Good Leader

Following are the important qualities and traits that a leader should poses:
1. Honesty and Integrity
2. Inspire Others. ...
3. Commitment and Passion. ...
4. Good Communicator. ...
5. Decision-Making Capabilities. ...
6. Accountability. ...
7. Delegation and Empowerment. ...
8. Creativity and Innovation.

LEADERSHIP STYLES

A leadership style is a leader's method of providing direction, implementing plans, and

motivating people. Exhibiting leadership quality is an extension of leaders personality that speaks
about his credibility as a working professional.

A leader is no more seen as a powerful or an influential personality telling people what to

do and what not to. He / She is someone who has the ability to take the team members in the right
direction by leading them from the front not the otherwise.

7 - IMPORTANT LEADERSHIP STYLES

Each one of us is a leader and we have a leadership style that comes into function during hard
times in life as well as at the workplace. Every leader has his own style or can develop a new one.
How-ever it all reduces to 7 important styles of leadership.

1. Autocratic Style
2. Democratic Style
3. Coaching Style
4. Strategic leadership style
5. Transformational Leadership style
6. Laissez-faire leadership style
7. Charismatic leadership style
Autocratic Leadership Style: - (Dictator Management) In this style, the leader makes all the
decisions without any consultation with subordinates or team members. He makes all the crucial
decisions which are then communicated to team members and they are expected to work and
follow the instructions immediately.

Democratic Style – (Participative Management) the democratic leadership style is more

participative in nature where the leader involves team members while making critical decisions. It
works well for an organization where team members are highly skilled and experienced. The best part
of this kind of leadership style is that the communication is active upward to downward. Also called
participative leadership, it requires the leader to be intelligent, creative, considerate, and competent.

Laissez-faire leadership style In such a leadership style, leaders delegate the responsibility to
team members and let them work on their own with minimum or no interference. Laissez-faire
leadership style gives the maximum scope for innovation and flexibility. It works best for the
creative teams having self-motivated and experienced individuals who don’t require that level of
supervision and invigilance.

MANAGERIAL GRID

The managerial grid model (1964) is a style leadership model developed by Robert R.
Blake and Jane Mouton. This model originally identified five different leadership styles
based on the concern for people and the concern for production.

This model originally identifies 5 different styles of management:

Concern for the people : In this category, the leader is show concern for employee’s needs, their
interests, their capabilities and how best they can be utilized for production.
Concern for the production: The degree to which a leader emphasizers
organizational efficiency and high productivity when deciding how best to accomplish
a task.

Motivational Theory of Management

Managers are the ones directly responsible for employee performance and thus they need to
be able to motivate and inspire employees regularly. Employees can be motivated to
complete the task at hand, but to do it to the best of their ability and in the most innovative and
efficient manner, they need to be inspired by your managers.
The Theories X, Y and Z, describe very different attitudes towards motivation at the
workplace. Managers tend to follow one of these approaches in their everyday struggle to motivate
their teams.
Theory X :
According to this theory, managers assume that your employees are inherently lazy and
will avoid work if they can. Hence it is believed that people need to be closely supervised and
comprehensive systems of control need to put in place.
Theory Y
An office with sleep pods, the latest PlayStation consoles, work-from home options,
informal dress code and office happy hours – sounds like an employee dream? This office culture
is typical of a Theory Y system of employee motivation.
Theory Z
Theory Z is a mix of practices, which ensure a healthy blend of systems and the freedom to
perform at the work place is likely to motivate the employees more. This mix of practices usually
requires technology, into your HR systems, to be realized completely.

HUMAN RELATIONS AND LABOUR WELFARE

Organizations provide welfare facilities to their employees to keep their motivation levels
high. The employee welfare schemes can be classified into two categories, statutory and non-statutory
Statutory schemes are those schemes that are compulsory to be provided by an
organization as compliance to the laws governing employees health and safety. These include
provisions provided in the industrial acts like Factories Act 1948.
The non-statutory schemes differ from organization to organization and from industry to
industry
A good Industrial Relations increases the morale of employers and goods them to give
their maximum, each think of their mutual interest which paves way for introduction of new
methods, developments and leading to adoption of modern technology.

Any betterment of their conditions must proceed more from the employers downwards
rather than be forced up by demands from below since labour, contented, well housed, well fed
and generally well looked after, is not only an asset and advantages to the employer but serves to
raise the standard of industry and labour in the country.