Chapter 12 Management of Human Resources. Foodservice Organizations, 5th edition Spears & Gregoire ©2004 Pearson Education, Inc. Upper Saddle River, New

Chapter 12

Management of Human Resources

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey 07458

Foodservice Organizations, 5th editionSpears & Gregoire

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.



Evolution of Human Resource Management

The factory → mass production → HRMScientific 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 forecastSupply – based on finding employees

who have the required qualifications to fill vacancies.

If shortages are predicted:New employees can be hiredPresent employees can be retrainedRetiring employees can be asked to stay onLabor-saving methods can be introduced



Legal Environment

Equal Pay Act 1963Title VII of Civil Rights Act 1964Age Discrimination in Employment 1967Pregnancy Discrimination 1978Immigration Reform and Control Act

1986Worker Adjustment and Retraining Act

1988



Legal Environment

Americans with Disabilities Act 1990Family and Medical Leave Act 1993Uniformed Services Employment and

Reemployment Rights Act 1994Health 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.




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.




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 organizationDepends 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 arrangementsSalary or wagesSpecifies 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 studiesRole playingSeminars, 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 reviewinvolves 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 requirementsEffective orientation, training, and

performance evaluation systemsGood 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 jobEmployees’ 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 needsGeneral dissatisfaction with management

policiesSocial needsEmployment in an union shop.



Structure and Functions of Unions

Functions of unions:Govern entry to an occupationDefine standards of occupational conductRegulate employment

Union levels:AFL-CIONational and international unionsLocal 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 UnionUnited Food and Commercial Workers

UnionService Employees International Union



Norris-LaGuardia Act

Anti-Injunction ActRestricts 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 foodsDecrease 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 policiesJob analysisWork simplificationWork production standardsWorkload forecastingSchedulingControl reports



Foodservice Labor Force

Typical foodservice employee is:Female (57%)Under 30 years oldSingle (never married, divorced, or

widowed)Living in a household with two or more

wage earnersA 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 DifferencesStaffing & scheduling extremely complex

because of highly variable nature of business

Types of FoodserviceMajor determinant of staffing needs in

operation



Relief Employees

Part-Time employeesWork less than 35-40 hours/weekMay not be eligible for benefitsSplit-shift scheduling – employees are

scheduled to work during peak hours only.Temporary employees (temps)

Fill short-term staffing needsHired from professional temporary

employment agencies



Relief Employees

Leased employeesEmployees 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 employmentJob 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 methodsPrinciples of work designWork measurementUse 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.

Documents

Chapter 12 Management of Human Resources. Foodservice Organizations, 5th edition Spears & Gregoire ©2004 Pearson Education, Inc. Upper Saddle River, New