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Chapter 2: Review of Related Literature

2.1. Foreign Studies

The 2013 National Restaurant Industry Survey represents

the first national employer survey of work and human resource

management in the U.S. Restaurant Industry. It documents the

range of practices adopted by employers and how those practices

affect turnover and employment stability – problems that are

endemic across the industry. They examined management

practices and outcomes in four customer segments: fine upscale

dining, casual fine dining, moderately priced family restaurants and

fast food / quick service restaurants. High levels of employee

turnover are problematic in restaurants serving all four customer

segments – leading to higher employee costs and lower service

quality and organizational performance. In fact, the survey data

demonstrates that better human resource practices can reduce

employee turnover almost by half.

They surveyed restaurants in the 33 largest metropolitan

areas of the country, where wages and the cost of living are likely

to be higher than in smaller cities and towns – and where higher

competition is likely to drive employers to invest more in employees

in order to compete more effectively on quality and service. Over

half of these restaurants are located in states with tipped and non-

tipped minimum wage rates that are considerably higher than the

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federal minimum rates. Thus, the wages, human resource

practices, and turnover reported by managers in this sample should

represent somewhat better conditions than those found in a

nationally representative study. Nonetheless, even in this sample,

the proportion of restaurants that adopt better human resource

(HR) practices and invest in the workforce is modest. Several

findings are noteworthy.


According to National Survey, the first national employer

survey of work and human resource management in the U.S.

restaurant industry, they conducted a telephone survey of

managers in 1,150 restaurant establishments across the country.

Managers in each workplace provided information on the types of

customers served and restaurant characteristics. They reported the

number and types of employees providing front-and-back-of-the-

house services. For this report, front-of-house employees include

servers, bartenders, hosts, bussers, runners, barbacks and

cashiers. Back-of-the-house employees include line cooks, prep

cooks, dishwashers and potters. For each of these groups,

managers reported on their human resource practices – including

staffing and selection, training and development, compensation,

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and the organization of work. Performance outcomes such as

turnover and employment tenure were also addressed.

In this report, we provide an overview of the restaurants

included in our study as well as our findings regarding the use of

different management practices and their relationship to key



According to Human Resource Management for the

hospitality and tourism industries written by Dennis Nickson, there

are arguments for best fit advocate a close fit between competitive

strategies and Human Resource Management, those in favor of

best practice approaches to HRM suggest that there is a universal

‘one best way’ to manage people. By adopting a best practice

approach it is argued that organizations will see enhanced

commitment from employees leading to improved organizational

performance, higher levels of service quality and ultimately

increased productivity and profitability. Usually couched in terms of

‘bundles’, the HRM practices that are offered in support of a high

commitment and performance model are generally fairly consistent.

For example, Redman and Matthews (1998) outline a range of HR

practices which are suggested as being important to organizational

strategies aimed at securing high-quality service:

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Recruitment and Selection. Recruitment and selecting

staff with the correct attitudinal and behavioral

characteristic. A range of assessments in the selection

process should be utilized to evaluate the work values,

personality, interpersonal skills and problem-solving abilities

of potential employees to assess their ‘service orientation’.

Retention. The need to avoid the development of a

‘turnover culture’, which may course be particularly

prevalent in tourism and hospitality. For example, the use of

retention bonuses to influence employees to stay.

Teamwork. The use of semi-autonomous, cross-process

and multi-functional teams.

Training and Development. The need to equip operative

level staff with team working and interpersonal skills to

develop their ‘service orientation’ and managers with a new

leadership style which encourages a move to a more

facilitative and coaching style of managing.

Appraisal. Moving away from traditional top down

approaches to appraisal and supporting thing such as

customer evaluation, peer review, team based performance

and the appraisal of the managers by subordinates.

Generally, all of these performance appraisal systems

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should focus on the quality goals of the organization and

the behaviors of the employees needed to sustain these.

Rewarding Quality. A need for a much more creative

system of rewards and in particular the need for payment

systems that reward employees for attaining quality goals.

Job Security. Promises of job security are as seen as an

essential component of any overall quality approach.

Employees Involvement and Employer Relations. By

seeking greater involvement from employees the emphasis

is on offering autonomy, creativity, cooperation and self-

control in work process. The use of educative and

participative mechanisms, such as team briefings and

quality circles are allied to changes in the organization of

work which support an ‘empowered’ environment.


Mc Donald’s is the world’s leading fast-food company by

sales, with about 32,000 restaurants serving burgers and fries in

about 120 countries. It consists of Human Resource Functions

followed to acquire employees.

Job Analysis. In Mc Donald’s job analysis done on the

basis of interviews. They have predetermined standards on

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which employees are awarded on the basis of their skills,

knowledge and experience.

Recruitment, Selection and Retention. For Mc Donald’s,

people are its important asset. This is because customer

satisfaction begins with the attitudes and abilities of

employees and effective workers are the best route to


Recruiting Suitable Applicants. Positions are generally

advertised in the restaurant. The company’s recruitment

history shows this is the best method of hiring quality staff. It

also uses local job centers, career fairs and other local

facilities. It is virtual to use effective hiring material with a

clear message targeted at the right audience.

Selection. After the final interview, the manager will rate the

responses of the applicant. A successful applicant will have

demonstrated skills and behaviors that have been identified

as being key to the position.

Orientation. Mc Donald’s inducts all new employees into the

business through Welcome Meeting which they must attend.

The Welcome Meeting gives an overview of the Company

including job role, food, hygiene and safety training, policies

and procedures, administration, benefits and training and


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Mc Donald’s performance appraisal methods are graphical

rating scale and 360 degree feedback.

For better and innovative human resource management, Mc

Donald’s implemented K/3 HR Personnel Management, Payroll

Management and Report Module as well as Performance

Management, Employee Capacity Quality module. Mc Donald’s has

built HR management platform and finished planning for

organization structure, managed personnel files, input dynamic

human resource data and managed payroll. Based on K/3 HR

System Personnel Management and Payroll Management, Mc

Donald’s not only records employee transfer, promotion and

transfer history but also adjust the workflow.

If a resigned staff come back and rejoin in K/3 HR System

checks ID Card Number and lists all the history of the staff, which

helps the manager make proper decision.


The concept of human resource management first appeared

in the 1980’s and the use of the term grew in the 1990’s. Initially,

writers in the field focused on trying to distinguish between

personnel management and HRM, but according to Boxall and

Purcell (2008) HRM has, in spite of the lack of clarity over

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definition, become the most popular term to refer to the activities of

managers in relation to people management.

The glance through any journal relating to human resource

management nowadays, will find countless advertisements relating

to the various ways that information technology can assist those in

HR department to do their jobs. These include systems for e-

recruitment, online short listing of applicants, online performance

management and appraisals, e-learning, online psychometric

testing, as well as IT systems to help with payroll, employment

data, recruitment administration, references and pre-employment

checks. There are also large organizations which use HR shared

service centers where they bring many of the HR services together

and use technology such as e-mail, a company intranet or

telephones to provide HR information in order to deal with HR

queries and provide expert advice for people working at various

sites, sometimes in different countries.

The increase use of information technology is already having

all of these effects, at least to some extent. For many HR

managers, IT for routine tasks frees them from more mundane

tasks, so they have more time to think strategically. Increasing use

of IT has also ensured a much greater amount of information is

available on which to base decisions and to plan for the future.

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2.2. Local Studies

According to Vivien T. Supangco in her Strategic HR

Practices in Some Organizations in the Philippines research study,

strategic human resource (HR) practices in a convenience sample

of organizations in the Philippines and compares result of Cranet

(Cranfield Network) surveys conducted in 2003 and 2008.

Characteristics of sample organization as well as their strategic

planning process generally obtain, but involvement of HR from the

outset of business strategy formulation does not yet characterize

the majority of this organization.

HR practices that have basically remained the same include

among others, the following, the most common source of HR head

is HR specialist from outside the organization, and responsibility of

HR policy decisions is shared between HR and Line managers.

On the other hand, a few practices have changed in the

following manner: increase in the application of HRIS (Human

Resource Management System) in payroll, time and attendance,

but decrease in application in recruitment and selection. In addition,

performance appraisal is practiced across all staff categories in

2008; in 2003 only the managerial and professional/technical

workers are generally appraised through formal system.

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The Provincial Government of Bulacan’s Human Resources

Office (PHRMO) is responsible for, among other services, the

maintenance of records associated with payroll preparation and

processing. They are also responsible for maintenance of 201 files

of each individual employee.

Among the significant services brought about by PHRMO

through the use of HRIS, on top of the list is the fast and accurate

processing of pertinent employee records like service records and

payroll. Through the automatic computation facility and integrated

time keeping system, processing time to determine leave credits,

which is necessary for computation of pay of employees who have

absences and processing time to prepare remittances for GSIS,

PAG-IBIG and MEDICARE are very well addressed. This system

did not only empower the employees and increased their

productivity, but also became a tool to eliminate red tape. Through

HRIS (Human Resource Information System), response time to

employee request is admirable.

Human Resources Information System (HRIS) formerly

Personnel Management Information System consists of areas in

Local Governance:

 eAdministration (Support Services/Administrative

Services and Human Resource Management)

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 eServices (Payroll Processing and Records


The HRIS is a LGU type, locally used by Provincial

Government of Bulacan. Its functions are to give innovative

services in maintenance of personnel records, payroll management

and processing and biometrics time keeping.

Human Resource Innovations and Solutions, Inc. (HURIS) is

a Philippine-based Knowledge Process Outsourcing (KPO) and

Consultancy company that started in 2005 by seasoned HR and IT

Professionals. It is a complete HR solutions provider that enables

business transformation through advanced methodologies and

information technology.

The company specializes in providing Business Partners

with superior technological solutions and high level outsourcing

services across all functional areas of Human Resources. The

company’s main thrust is to provide the Business Partners

assistance in the design, management, development and

streamlining of systems, functions, procedures and processes to

increase organizational efficiency and maximize internal resources

with the use of local HR Management Systems and high level HR

Outsourcing services. Their products are Attendance Monitoring

System (AMS), Human Resource Management System (HRMS),

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integrated Cooperative Management System (ICMS), Payroll

System and ePayslip. The services they provided are HR

Knowledge Process Outsourcing (HR – KPO), Payroll Business

Process Outsourcing, Special Projects (HR Audit / Benchmarking,

Performance Management, Pre and Post Retirement Programs and



In the article created by Dr. Divina M. Edralin, a full-time professor

on Business Management Department of De La Salle University

about issues in human resource management and approaches to

their solution, she mentioned that it is an acceptable fact that the

success of an enterprise is tied to the competence and

effectiveness of the people who work in and with the organization.

And therefore, if the people are genuinely to be a sustainable

source of distinctive competitive advantage of Philippine companies

in the next millennium, the underlying principles that management

must adhere to in the strategic planning and implementation of

approaches in resolving issues in human resources management

are: (1) Respect for the rights and dignity of workers, (2) Concern

for the general welfare and security or workers; and (3)

Recognizing that people are valued stakeholders of the enterprise.

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There is no “one best” approach for any given industry or

firm. The greatest challenge for businesspeople is to understand

the, and use a nexus of, diversified approaches which are labor-

friendly and concomitantly focused on achieving organizational

goals through technological (production processed), structural

(roles and relationships), managerial (administrative actions), and

people (human resources can be educated, trained, coached, and

counseled) transformation of renewal.

This is the Renewal-Driven HRM paradigm shift that Filipino

managers/owners can seriously consider to address core issues

and problems in human resources management that have impeded

Philippine industries and deterred them from pursuing appropriate

and doable approaches that will enable such firms to be globally

competitive at the turn of the millennium.


The Government Human Resource Information System

(GHRIS) project is envisioned to provide the Philippine National

Government with a comprehensive human resource management

information system for all of its 1.7M national government

employees. The GHRIS application and data is to be centralized

and is accessed through a friendly and intuitive interface via a

computer web browser. The GHRIS application should have the

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capability to be accessed at over 1,500 various locations within the

Philippines, with some locations having limited electrical and

networking capability.

The system should be able to initially support 10,000

operational users with the ability to expand to cover 1.7M users

should the Employee – Self Service be activated. Access to the

system should be controlled and restricted to individual accounts

using unique personal login information. The ability to define levels

of user access rights within the system and other strong security

features and measures are required functions.

In its finalized implementation, the GHRIS system should

handle the complete lifecycle of all national government employees

including their initial entry into service, to their retirement or

separation which includes the following HR actions such as

recruitment and hiring, promotions, retirements, awards,

evaluations, casualty operations, calculations for re-contracting

requirements, retention, assignments, training, schooling, finance,

absences, personnel assigned equipment and other associated

personnel actions specific to the different agencies and common

within the government. The system should also support and

streamline lengthy approval processes by providing an efficient and

timely method of approving and tracking actions.

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The human resource management information system is for

6 pilot government agencies namely the Commission on Audit

(COA), The Department of Budget and Management (DBM), The

Department of Finance (DOF), The Bureau of Treasury (BTr), the

Department of Science and Technology Advanced Science and

Technology Institute (DOST-ASTI) and the Department of Science

and Technology National Computer Center (DOST-NCC).

The GHRIS Software Application

A Commercial Off The Shelf (COTS) Software that fits

the specifications and requirements of the project as stated

inclusive of licenses and other associated costs such as

installation, customization and some training and orientation

for the six pilot agencies named above as well as the

different environments (Development, Testing, Pre-

Production, Production and Disaster Recovery

environments) for the Application Software.

The GHRIS Database Infrastructure

Software and related licenses for the different

environments (Development, Testing, Pre-Production,

Production and Disaster Recovery environments) for the

Database software.

Consulting Services

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 Consulting and Technical Services as deemed

needed in order to analyze, develop and implement

the GHRIS Project

 Technical Services in order to install and configure

the GHRIS Software to fit specifications and


 Technical Services in order to configure and

customize the Hardware and Software of both the

Application and Database Portion

 Training


2.3. Synthesis and Relevance to the Study (Matrix – Comparative


The above related studies are all significant to the

proponents’ recent project development. The essential researched

related studies above and the proponents’ project focused on

Human Resource Management and its divergent fields. Both

discussed the different parts or key areas of human resource as

part of the systematic process of managing employees.

Foreign and local related studies stated common human

resource management key areas or process routines likewise to the

proponents’ studies as part of systematic planning and process in

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managing employees. The key areas or process routines are

Recruitment and Selection of suitable applicants, Retention,

Evaluation and Probation for appraisals, Monitoring of employees’

profile and 201 Files, etc. The most common focus of all studies is

the employees.

One related study stated the acceptable fact that employees

are considered as an asset of one’s enterprise and one of the

reasons of its success. So the management must adhere and

improve the strategic planning and implementation approach when

it comes to human resource management. This related study also

shows the recognition of the workers and valued as the

stakeholders of the enterprise.

Another related study shows that human resource

management is now joining and complementing the field of

information technology, even in private enterprise or in government

sectors and agencies. The future of Human Resource Management

is now seen as systematic, integrated, computerized and more

innovative. Most of the private enterprise and government agencies

are now implementing Human Resource Management System that

can process different key areas or procedures in a span of short

range of time. They can handle multitasking and increased level of

productivity by acquiring the new process.

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There are local related studies featured the system or

application that can managed human resource and even payroll.

This is the goal of the proponents to develop a system which can

fulfill human resource management tasks and processes that

generically suites to different enterprises. The proponents

researched in local and foreign related studies shows that the

Human Resource Management now deals with the technology to

reduce cost of processes, ease the process, gain productivity and

be multitasking and to be globally competitive and successful on

the field they concerned with.

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