Dokumen - Tips Chapter 12 Management of Human Resources Foodservice Organizations 5th Edition

Chapter 12
Management of Human Resources

Human Resource Management
(HRM)
 Involves an integrative process of
recruiting, selecting, training, and
maintaining the workforce needed to
achieve an organization’s goals.
 Necessary to ensure all of the outputs to
the system are achieved.
©2004 Pearson Education, Inc.

Foodservice Organizations, 5th edition
Upper Saddle River, New Jersey 07458 Spears & Gregoire
Evolution of Human Resource
Management
 The factory → mass production → HRM
 Scientific management – the systematic
approach to improving worker efficiency
based on the collection and analysis of
data.
 Began when the human element was
added to management functions.

Human Resources Planning
 Process of anticipating and making

provision for the movement of people
into, within, & out of an organization.
 Use people as effectively as possible.
 Have the required number of qualified
people available when openings occur.

Forecasting Supply and Demand
 Determine the number, type, & qualifications
of individuals who will be needed to perform
specific duties at a certain time.
 Internal supply of labor – number and type of
employees who will be in the operation at
some future date.
 External supply of labor – number and type of
people who will be available for hiring in the
labor market.
Supply Analysis
 Uses internal and external sources.

 Staffing tables – pictorial representation
of all jobs with the number of employees
in those jobs and future employment
requirements.
 Skills inventories – contain information
on each employee’s education, skills,
experience, & career aspirations.
Balancing Supply and Demand
 Demand – based on forecast
 Supply – based on finding employees
who have the required qualifications to
fill vacancies.
 If shortages are predicted:
 New employees can be hired
 Present employees can be retrained
 Retiring employees can be asked to stay on
 Labor-saving methods can be introduced
Legal Environment
 Equal Pay Act 1963
 Title VII of Civil Rights Act 1964
 Age Discrimination in Employment 1967
 Pregnancy Discrimination 1978
 Immigration Reform and Control Act
1986
 Worker Adjustment and Retraining Act
1988
Legal Environment
 Americans with Disabilities Act 1990

 Family and Medical Leave Act 1993
 Uniformed Services Employment and
Reemployment Rights Act 1994
 Health Insurance Portability and
Accountability Act 1996

Sexual Harassment
 A form of gender discrimination.
 Violation of Title VII of the Civil Rights
Act of 1964.
 Forms:
 Quid pro quo – something for something.
Sexual favors for job benefit.
 Hostile work environment – workplace is
rendered offensive by acts the employer
knew or should have known about.
Immigration Reform and Control Act
(IRCA)
 Unlawful for a person or organization to
recruit or hire persons not legally eligible
for employment in the US.
 Requires employers to complete an I-9
form for each employee.
 Prohibits employers of 4 or more
persons from discriminating based on
national origin or immigration status.
Americans with Disabilities Act
(ADA)
 Purpose:
 Provide a national mandate to eliminate
discrimination against individuals with disabilities.
 Provide consistent enforceable standards for those
with disabilities.
 Ensure the federal government plays a central role
in enforcing the standards.
 Invoke congressional authority to address the major
areas of discrimination faced by the disabled.

(ADA)
 Disability:
 Physical or mental impairment that substantially
limits one or more major life activities, such as
walking, seeing, hearing, speaking, learning, or
working.
 Record of impairments (such as mental, emotional,
or physical illness and alcohol or drug addiction)
from which people have recovered or are
recovering.
 Reactions by others implying that people have an
impairment, such as severe burns or being rumored
to have AIDS.
(ADA)
 Does not require hiring disabled persons
who are not qualified for a job in terms of
skill, education, or experience.
 Requires qualified disabled persons get
equal consideration for a job and equal
treatment on the job.
 Restaurants are the leading industry in
employment of people with disabilities.
Employment Process
 Major phases:
 Recruitment – Locating and encouraging
potential applicants to apply for a job
opening.
 Selection – Comparing knowledge, skills,
and abilities to those required of a position
and choosing applicant most qualified.
 Orientation – Familiarizing new employees
to the organization, job, and work unit.
Recruitment
 Process of locating & encouraging

potential applicants to apply for a job
opening
 Vacancy filled by someone inside or
outside the organization
 Depends on availability of employees,
organization’s human resource policies, &
requirements of vacant job

Selection

Application and Screening
 Application purposes:
 Indicates the applicant is interested in a
position.
 Provides the interviewer with basic
information to conduct an interview.
 Becomes part of the file if the applicant is
hired.

Application and Screening
 May not ask questions on an applicant’s:
 Age
 Gender
 Race
 Religion
 National origin
 Family status
 May ask question on:
 Previous experiences
 Salary expectations
 Issues related to the job
Background and Reference Checks
 Most organizations use the mail and

telephone to check references.
 Supervisors who know the applicant’s
work habits and performance usually
give the most useful information.
 Inadequate reference checking is one of
the major causes of high turnover,
employee theft, and white-collar crime.
Interviews
 Structured interview – interviewer asks

same specific questions of all
interviewees.
 Unstructured interview – allows the
interviewer the freedom to ask questions
he or she believes are important.

Effective Interview Tips
 Establish rapport with the applicant.
 Allow sufficient time for an uninterrupted
interview.
 Hold interview in a place where privacy is
possible.
 Avoid questions that may be discriminatory.
 Avoid asking questions that can be “yes” or
“no”.

Effective Interview Tips
 Avoid asking leading questions to which

the expected response is obvious.
 Allow candidates to express themselves.
 Avoid Personal biases – preferences
that alter objective decision making.
 Avoid halo effect – when a single trait
dominates the assessment of another
individual.
Medical Examination
 Not required by all employers.

 Give to ensure that the prospective
employee is healthy enough to perform
the job.
 Can be used as a baseline for future
examinations.
 Drug testing is also becoming more
common.
Hiring Decision
 Most critical step.

 Equal employment opportunity – Policy
of equal employment (nondiscrimination)
for all.
 Affirmative action – employees are
required to analyze their workforce and
develop a plan of action to correct areas
of past discrimination.
Hiring Decision
 The offer confirms:
 The details of the job.
 Working arrangements
 Salary or wages
 Specifies a time limit in which the applicant
must reach a decision.
 Rejected individuals should be notified
immediately and given reason for
rejection.
Affirmative Action
 Reaffirms the commitment to
nondiscrimination and equal employment.
 Ensure equal treatment for applicants and
employees without regard to race, color,
national origin, ancestry, sex, age, religion, or
disability.
 Goal is to achieve a workforce that includes a
representation of qualified minorities, women,
and persons with disabilities that approximates
their availability in the state resident workforce.
Orientation
 Designed to provide information new
employees need to function comfortably and
effectively in the organization.
 Includes:
 Review of the organization and how the employee’s
job contributes to the organization’s objectives.
 Specific information on policies, work rules, and
benefits.
 General information about the daily work routine.

Orientation
 Objectives:
 Minimize start-up costs to prevent new
employees from making costly mistakes.
 Reduce anxiety.
 Help create realistic job expectations.
 Decrease turnover.
 Increase job performance.

Training and Development
 Training – ongoing process of updating
skills of an employee.
 Management development – programs
designed to improve the technical,
human, and conceptual skills of
managers.
 Both should include carefully formulated
objectives, a well-planned outline, and
an evaluation.
On-the-job Training
 Job rotation – employees are assigned

to work on a series of jobs over a period
of time.
 Internship - job training is combined with
classroom instruction.
 Apprenticeship – employees are
assigned to highly skilled coworkers
responsible for their training.
Off-the-job Training
 Takes place outside the workplace.

 May include:
 Simulation of actual working conditions.
 Case studies
 Role playing
 Seminars, lectures, and films

Performance Appraisal
 Performance – the degree of accomplishment
of the tasks that make up an individual’s job.
 Objectives:
 Provide employees with the opportunity to discuss
their performance with the supervisor or manager.
 Identify strengths and weaknesses of the
employee’s performance.
 Suggest ways the employee can meet performance
standards, if they have not been met.
 Provide a basis for future job assignments and
salary recommendations.
Performance Appraisal Methods
 Includes:
 Checklist – rater does not evaluate
performance but merely records it.
 Rating scale – rater indicates the degree to
which an employee possesses that trait or
characteristic on a scale.
 Critical incident technique – identifies
positive and negative incidents of employee
behavior.
Rating Scales
 Differences between scales:
 Characteristics or dimensions on which individuals
are rated.
 Degree to which the performance dimension is
defined for the rater.
 How clearly the points on the scale are defined.
 Mixed standard scales
 Behaviorally anchored rating scale (BARS)

Management by Objectives (MBO)
 Primarily used with managerial and

professional personnel.
 Requirements:
 Objectives set at each level should be quantifiable
and measurable for both the long and short term.
 Expected results must be under the employee’s
control, and goals must be reviewed and evaluated.
 Each employee goal statement must be
accompanied by a description of how the goal will
be accomplished.
360º Review
 Type of performance review

 involves obtaining evaluation feedback
from superiors, subordinates, and peers.

Appraisal Interviews
 Opportunity to discuss an employee’s
performance and explore areas of
improvement.
 Recommendations:
 Emphasize strengths on which the individual can
build rather than stress weaknesses.
 Avoid recommendations about changing personal
traits.
 Concentrate on opportunities for growth.
 Limit plans for change or growth to a few objectives
that can be accomplished within a reasonable
period of time.
Personnel Actions
 Includes:
 Promotion – change in job to one at a
higher level in the organization.
 Demotion – change in job to one at a lower
level in the organization.
 Transfer – change in job to one at
approximately the same level elsewhere in
the organization.
 Separation – Voluntary or involuntary
termination of a job
Employee Discipline
 Discipline – action against an employee who
fails to conform to the policies or rules of an
organization.
 Disciplinary Procedures
 Unrecorded oral warning
 Oral warning with notation in an employee’s
personnel file
 Written reprimand
 Suspension
 Discharge
 Consistency is a key element.
Grievance Procedures
 Ensures employees have due process in
disciplinary situations.
 Grievance reduction methods:
 Accurate job descriptions and specifications
 Individuals have appropriate qualifications
for job requirements
 Effective orientation, training, and
performance evaluation systems
 Good human skills by supervisors

Identifying Causes
 Must first consider if employee is aware of
certain policies and work rules before initiating
disciplinary action
 Health problems, personal crises, emotional
problems, stress, or chemical dependency
may be source of unsatisfactory performance
 Employee assistance program – provides
diagnoses, counseling, & referral for advice or
treatment for problems
Compensation
 Financial remuneration by employers to
employees in exchange for their work.
 Includes:
 Salary – refers to the earnings of
managerial and professional personnel.
 Wages – hourly earnings of employees
covered by the Fair Labor Standards Act.
 Benefits – rewards that provide security to
employees and their family members.
Wage Mix
 Combination of external and internal

factors that can influence rates at which
employees are paid.

External Factors
 Include:
 Labor market conditions
 Geographic area
 Cost of living
 Collective bargaining
 Government influence
 Consumer price index – measure of the
average change in prices over time in a fixed
market basket of products and services.
Internal Factors
 Include:
 Worth of job
 Employees’ relative worth – employees who
possess the same qualifications should
receive the same pay.
 Employer’s ability to pay – willingness of the
taxpayer to provide funds in the public
sector or by the profits from products and
service in the private sector.
Job Evaluation
 Process of determining the relative worth
of jobs to establish which jobs should be
paid more than others.
 Methods:
 Job ranking – groups jobs on the basis of
their relative worth from most to least
complex.
 Job classification – groups jobs according to
a series of predetermined wage classes or
grades.
Benefits
 Noncash rewards given to employees by their
employer as part of their employment.
 Categories:
 Legally required benefits
 Health insurance
 Retirement
 Insurance
 Paid time off (PTO)
 Employee services

Flexible Benefit Packages
 Modular plans – allow the employee to select
from among a list of benefits or different levels
of benefits.
 Core-plus plans – consist of a core of essential
benefits all employees receive and an array of
benefit options employees can select.
 Flexible spending accounts – employees can
deposit pre-tax dollars to use to pay for items
such as child care and medical care.
Compensation Regulations
 Fair Labor Standards Act (FLSA) –
concerned with minimum wage rates,
overtime payments, child labor, and
equal rights.
 Equal Pay Act of 1963 – prohibits
discrimination of women.
 Age Discrimination Act of 1967 –
prohibits discrimination of employees
over the age of 40.
Benefits Regulations
 Social Security Act of 1935 – protects covered
employees against loss of earnings resulting
from retirement, unemployment, disability, or
death.
 Compensatory benefits:
 Vacation
 Sick leave
 Holidays
 Military
 Jury duty
 Absences due to a death in the family

Labor Relations
 Interaction between management and

labor union.
 Collective bargaining – negotiation
between management and the union on
terms of the collective agreement
between them.

Reasons for Joining Unions
 Labor unions have developed as a
reaction to management’s decision-
making power.
 Employees join unions because of:
 Economic needs
 General dissatisfaction with management
policies
 Social needs
 Employment in an union shop.

Structure and Functions of Unions
 Functions of unions:
 Govern entry to an occupation
 Define standards of occupational conduct
 Regulate employment
 Union levels:
 AFL-CIO
 National and international unions
 Local unions belonging to a parent national
union.
AFL-CIO
 American Federation of Labor (AFL)
 Congress of Industrial Organizations (CIO)
 Includes 75% of all union members
 Federation of 83 autonomous national and
international unions that:
 Lobbies before legislative bodies on subjects of
interest to labor.
 Coordinates organizing efforts among its affiliated
unions.
 Publicizes concerns and benefits of unionization to
the public.
 Resolves disputes between different unions.
National and International Unions
 International unions organize employees and

charters local unions in foreign countries.
 National unions provide:
 Technical assistance in negotiating and
administering labor contracts
 Financial assistance during strikes
 Administration of union-sponsored pension plans
and other fringe benefits
 Training programs for local union officers
 Publications
Local Unions
 Responsible for negotiating local labor
agreements and investigating member
grievances.
 Union steward – union employee who is
elected to represent other union members in
their relations with an immediate supervisor or
other managers.
 Business representative – hired by the local
union to manage the union and also to settle a
member’s grievance if the steward was not
successful.

Foodservice Unions
 Hotel and Restaurant Employees Union

 United Food and Commercial Workers
Union
 Service Employees International Union

Norris-LaGuardia Act
 Anti-Injunction Act
 Restricts employers ability to obtain a
federal injunction forbidding a union from
engaging in picketing or strike activities.
 Nullified yellow-dog contracts –
agreements that required workers to
state they were not union members and
promise not to join one.
Wagner Act
 Protected employee efforts to organize and
bargain collectively through representatives of
their choice.
 Established the right of a union to be the
exclusive bargaining agent for all workers in a
bargaining unit.
 Bargaining unit – group of jobs in a firm, plant,
or industry with sufficient commonality to
constitute an entity that can be represented in
union negotiations by a particular agent.
Wagner Act
 Unfair labor practices:
 Management support of a company union
 Discharge or discipline of workers for union
activities
 Discrimination against workers making complaints
to the National Labor Relations Board (NLRB).
 Refusal to bargain with employee representatives
 Interference with the rights of employees to act
together for mutual aid or protection

Taft-Hartley Act
 Balanced the powers of labor and

management.
 Placed restraints on union practices.
 Required 30 days notice before
terminating a labor agreement (90 days
for healthcare).

Taft-Hartley Act
 Unfair union practices:
 Restraining or coercing employers in the selection
of parties to bargain on their behalf
 Persuading employers to discriminate against any
employees
 Refusing to bargain collectively
 Participating in secondary boycotts and
jurisdictional disputes
 Attempting to force recognition from an employer
when another union is already the representative
 Charging excessive initiation fees
 Requiring payment for services not performed
Landrum-Griffin Act
 Labor-Management Reporting and Disclosure
Act
 Required:
 Labor organizations to hold periodic elections for
officers
 Members be entitled to due process both within and
outside the union
 Copies of labor agreements be made available to
covered employees
 Financial dealings between union officials and
companies be disclosed to the U.S. Department of
Labor.

Contract Negotiations
 Major bargaining issues:
 Economic issues – base pay, shift
differentials, overtime pay, length of service
increases, cost of living allowances, pension
plans, insurance, holidays, and vacations.
 Job security – entitlement to work or, in lieu
of work, to income protection.
 Working conditions – work rules, relief
periods, work schedules, and health and
safety.
 Major bargaining issues:

 Management rights – rights of management
to give direction and discipline employees.
 Individual rights – establishment of
employee grievance procedures.

 If a deadlock occurs, a third party may

be called in to provide assistance.
 Mediator – attempts to establish a channel
of communication between the union and
management but has no power to force a
settlement.
 Arbitrator – renders a decision that is
binding on both the union and the employer.

Controlling Labor Costs
 Approaches to control labor costs:

 Increase use of convenience foods
 Decrease number of items on a menu
 Improve efficiency of facility layout
 Improve efficiency of equipment
 Increase employee benefits

Controlling Labor Costs
 Factors to control labor costs:

 Personnel policies
 Job analysis
 Work simplification
 Work production standards
 Workload forecasting
 Scheduling
 Control reports

Foodservice Labor Force
 Typical foodservice employee is:
 Female (57%)
 Under 30 years old
 Single (never married, divorced, or
widowed)
 Living in a household with two or more
wage earners
 A part-time employee with weekly hours
averaging 25.2

Staffing and Scheduling
 Staffing – management function that

determines the appropriate number of
employees needed by the organization
for the work that must be accomplished.
 Scheduling – assigning employees to
specific work hours and days.

Staffing and Scheduling Variables
 Operational Differences
 Staffing & scheduling extremely complex
because of highly variable nature of
business
 Types of Foodservice
 Major determinant of staffing needs in
operation

Relief Employees
 Part-Time employees
 Work less than 35-40 hours/week
 May not be eligible for benefits
 Split-shift scheduling – employees are
scheduled to work during peak hours only.
 Temporary employees (temps)
 Fill short-term staffing needs
 Hired from professional temporary
employment agencies
Relief Employees
 Leased employees
 Employees are leased from a employment
leasing company for specified period of time
at a specified fee.
 Leasing company handles employee-related
benefits, payment etc.

Staffing
 Productivity Levels – meals per labor
hour.
 Full-time equivalents (FTEs)- number of
total hours worked in a week divided by
40 to determine the number of full-time
equivalent employees.
 Meal equivalent – conversion of number
of snacks, nourishment, paid meals, into
a common number of meals.
Employee Scheduling
 Master schedule – shows days on and off duty
and vacations.
 Shift schedule – indicates the position and
hours worked, the number of days worked per
week, and lists relief assignments for positions
when regular workers are off.
 Production schedule- identifies tasks to be
completed for the production of a meal.

Overtime
 Uncontrolled overtime is a key factor in
driving up labor cost.
 Reasons for overtime:
 Employees may need to work beyond their
normal hours.
 Supervisors may use as a substitute for
proper scheduling and planning.
 May be controlled by requiring overtime
authorization.
Alternate Work Schedules
 Compressed workweek
 Holding total hours constant but reduces the
number of days worked (4-day week/10
hours/day).
 Change in hours worked, but not the
number of days.
 Change in days and hours worked.

 Discretionary working time/flex-time

 Staggered start – organization or employee
choose when they wish to start a fixed-hour
working day.
 Flex time – organization defines a range of
hours within which employees may select
their starting time.
 Task contracting- employee contracts to
fulfill a defined task or piece of work.
 Part-time employment
 Job sharing – a single job is divided and
shared between two or more employees.
 Job splitting – tasks that constitute a single
job are divided, with subsets of
differentiated tasks assigned to two or more
employees.

Productivity Improvement
 Productivity – the efficient use of human,
equipment, and financial resources, and
often is expressed mathematically as a
ratio of output to input.
 Improvement methods:
 Productivity methods
 Principles of work design
 Work measurement
 Use of quality improvement teams

Productivity Measures
 Use of formulas to measure productivity.

Principles of Work Design
 Work design – program of continuing effort to
increase the effectiveness of work systems.
 Labor inefficiency factors:
 Poor product design
 Work methods and Carelessness
 Management
 Workers
 Material waste
 Improper tools and Inadequate maintenance
 Poor production scheduling
 Absences without cause

Principles of Work Design
 Materials handling – the movement and

storage of materials and products as
they proceed through the foodservice
system.
 Principles of motion economy – relates
to the design of work methods, of the
workplace, and of tools and equipment.

Work Measurement in Foodservice
 Work measurement – relationship between the

amount of work performed and the human
input used to do that work.
 Activity analysis – continuous observation for a
chronological record of the nature of activities
performed by individual workers, work
performed at one workstation, work units
produced, or the amount of time that
equipment is used and for what purpose.

 Employee time log reporting system –

technique involving employees recording
activities at periodic intervals, usually between
5 and 15 minutes.
 Occurrence sampling- a method for measuring
working time and nonworking time of people
employed in direct and indirect activities.
 Elemental standard data – time values that
have been determined for many elements and
motions common to a wide variety of work.
 Predetermined motion time – tasks are

broken down into basic motions with
known normal time values.
 Master standard data (MSD)- seven
basic elements of work are combined
into larger, more condensed elements.


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Chapter 12

Management of Human Resources

©2004 Pearson Education, Inc.

©2004 Pearson Education, Inc.

 Process of anticipating and making

©2004 Pearson Education, Inc.

 Uses internal and external sources.

 Americans with Disabilities Act 1990

©2004 Pearson Education, Inc.

©2004 Pearson Education, Inc.

 Process of locating & encouraging

©2004 Pearson Education, Inc.

©2004 Pearson Education, Inc.

©2004 Pearson Education, Inc.

 Most organizations use the mail and

 Structured interview – interviewer asks

©2004 Pearson Education, Inc.

©2004 Pearson Education, Inc.

 Avoid asking leading questions to which

 Not required by all employers.

 Most critical step.

©2004 Pearson Education, Inc.

 Help create realistic job expectations.

 Increase job performance.

©2004 Pearson Education, Inc.

 Job rotation – employees are assigned

 Takes place outside the workplace.

 Seminars, lectures, and films

©2004 Pearson Education, Inc.

©2004 Pearson Education, Inc.

 Primarily used with managerial and

 Type of performance review

©2004 Pearson Education, Inc.

©2004 Pearson Education, Inc.

 Combination of external and internal

©2004 Pearson Education, Inc.

©2004 Pearson Education, Inc.

©2004 Pearson Education, Inc.

 Interaction between management and

©2004 Pearson Education, Inc.

©2004 Pearson Education, Inc.

 International unions organize employees and

©2004 Pearson Education, Inc.

 Hotel and Restaurant Employees Union

©2004 Pearson Education, Inc.

©2004 Pearson Education, Inc.

 Balanced the powers of labor and

©2004 Pearson Education, Inc.

©2004 Pearson Education, Inc.

 Major bargaining issues:

©2004 Pearson Education, Inc.

 If a deadlock occurs, a third party may

©2004 Pearson Education, Inc.

 Approaches to control labor costs:

 Improve efficiency of facility layout

 Improve efficiency of equipment

 Increase employee benefits

©2004 Pearson Education, Inc.

 Factors to control labor costs:

 Work production standards

©2004 Pearson Education, Inc.

©2004 Pearson Education, Inc.