Hotel Operations Management

3rd Edition

Chapter 5
Human Resources

Copyright © 2017 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Example of Organization Chart

General
Manager

RM/OM/EAM

Food & Safety & Sales & Finance & Human

Front Office Housekeeping Engineering
Beverage Security Marketing Accounting Resources

Front Office Rooms FB Kitchen FB Service Sales HRM

Concierge Public Area Reservations HRD

Operator Laundry Event

Copyright © 2017 2007, 2004 Pearson Education, Inc. All Rights Reserved
Example of Ranks & Levels

GM

Director
Department
Head
Manager

Assistant Manager

Supervisor

Rank & File / Operative staff

Copyright © 2017 2007, 2004 Pearson Education, Inc. All Rights Reserved
Example of Ranks & Levels

GM

Director Director of HR
Department
Head HR Manager

Manager

Assistant Manager Asst. HR Manager

Supervisor HR Supervisor

Rank & File HR Officer

Copyright © 2017 2007, 2004 Pearson Education, Inc. All Rights Reserved
 The Role of Human Resources (1 of 4)
• HR Assists
– Recruitment
– Legal compliance
– Safety and health
– Labor relations
– Compensation
– Selection
– Orientation
– Training
– Performance evaluation

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 The Role of Human Resources (2 of 4)
• Line Manager Duties
– Determining position requirements for each job
– Making final employee-selection decisions
– Providing departmental- specific orientation
– Initiating on-going training
– Performance evaluation
– Scheduling
– Discipline

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 The Role of Human Resources (3 of 4)
• HR personnel assist in hotel operations by
– Implementing legal policies and tactics to effectively
recruit, select, motivate, and retain staff members
– Developing and delivering orientation, safety, security,
supervisory, and some departmental-specific training
programs
– Developing and communicating equitable and fair HR
policies to all employees while protecting the rights of
the hotel

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 The Role of Human Resources (4 of 4)
– Interpreting, implementing, and enforcing the ever-
increasing body of laws and regulations that affect
people at work
– Helping to maintain appropriate standards of work-life
quality and ethical business policies and practices

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Staffing the Human Resources Department
• Job Descriptions
– A list of tasks that an employee working in a specific
position must be able to effectively perform.
• Job Specifications
– A list of personal qualities judged necessary for
successful performance of the tasks required by the job
description.

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Legal Aspects of Human Resources:
Employee Selection (1 of 4)
• Selection Tools
– Bona Fide Occupational Qualifications
▪ Qualifications: to perform a job that are judged reasonably
necessary to safely or adequately perform all tasks within the
job
▪ Education Or Certification Requirements
▪ Language Skills
▪ Previous Experience
▪ Minimum Age Requirements
▪ Physical Attributes
▪ Licensing

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Legal Aspects of Human Resources:
Employee Selection (2 of 4)
• Selection Tools
– Employment Applications
– Employment Interviews
– Employment Testing
– Background checks
– References

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Legal Aspects of Human Resources:
Employee Selection (3 of 4)
• Selection Issues
– Civil Rights Act of 1964
▪ Prohibits discrimination based on race, color, sex, religion,
national origin, disability, and genetic information
– Americans with Disabilities Act(ADA)
▪ Prohibits discrimination against job candidates with disabilities
– Age Discrimination in Employment Act (ADEA)
▪ Protects individuals age 40 and older
▪ Applies to employers with 20 or more staff members

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Legal Aspects of Human Resources:
Employee Selection (4 of 4)
– Immigration Reform and Control Act (IRCA)
▪ Prohibits hiring illegal immigrants
▪ Form I-9 developed by INS must be completed
– Fair Labor Standards Act (FLSA)
▪ Protects young workers from employment interfering with
education or that is potentially hazardous to their health

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Legal Aspects of Human Resources:
The Employment Relationship
• At-Will Employment
– Employers can hire any employee as they choose and
dismiss that employee with or without cause at any
time.
• Employment Agreement / Contract
– A document specifying the terms of the work
relationship between the employer and employee that
indicates the rights and obligations of both parties.

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Legal Aspects of Human Resources:
The Law in the Workplace (1 of 12)
• Legal issues related to employment include:
– Sexual Harassment
– Family and Medical Leave Act (FMLA)
– Compensation
– Employee Performance
– Unemployment Issues
– Employment Records

“Employee Handbook”

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Legal Aspects of Human Resources:
The Law in the Workplace (2 of 12)
• Sexual Harassment
– Sexual Harassment
▪ Unwelcome sexual advances, requests for sexual favors,
and/or verbal or physical conduct that is sexual in nature.
– Zero Tolerance
▪ Total absence of behavior that is potentially discriminatory,
harassing, or objectionable.

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Legal Aspects of Human Resources:
The Law in the Workplace (3 of 12)
• Sexual Harassment
– Issuing of appropriate policies and procedures
– Conducting applicable workshops
– Developing procedures to obtain relief for alleging
employee
– Developing written protocols for reporting,
investigating, resolving

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Legal Aspects of Human Resources:
The Law in the Workplace (4 of 12)
• Family and Medical Leave Act (FMLA)
– Hotels who employ 50 or more staff must provide up to
12 weeks of unpaid leave to an employee for:
▪ Child birth
▪ Adoption of a child
▪ Foster care of a child
▪ Serious illness of an employee
▪ Serious illness of an immediate family member
Thai Labor law:
• 30-day paid sick leave
• 90-day maternity leave (45 days paid by hotel, 45 days paid by SSO) and
8-day paid maternity checkup
• 3-day business leave ex. Court, immediate family death,…
• After one-year service, employee is entitled to 6-day vacation
• 60-day paid military leave etc.
Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Legal Aspects of Human Resources:
The Law in the Workplace (5 of 12)
• Compensation
– The Fair Labor Standards Act (FLSA) establishes
minimum wage, overtime work rates, and equal pay
regardless of gender.
– An exception from minimum wage and overtime pay for
staff employed as bonafide executive and
administrative employees (among others).
Thai Labor law:
• Minimum wage (per day) varies in each province. Each hotel has a salary
range (min-max) for each position.
• Maximum working hours per week = 48 hours
• At least 1 day-off per week
• Starting from 2-hour overtime work to be OT paid
• At least 14 public holidays
Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Legal Aspects of Human Resources:
The Law in the Workplace (6 of 12)
• Executive Employee – Normally will not be paid OT
– Primary duty is managing the enterprise or one of its
department’s subdivisions
– Direct the work of at least two or more other full-time
employees or their equivalent
– Authority to hire or fire other employees
• Administrative Employee
– Primary duty must involve office or non-manual work
directly related to the management or general business
operations of the employer or the employer’s
customers
Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Legal Aspects of Human Resources:
The Law in the Workplace (7 of 12)
– Primary duty involves discretion and independent
judgment on significant matters
• Compensation
– Laws related to taxes include:
▪ Income Tax
▪ Federal Insurance Contribution Act (FICA)
▪ Federal Unemployment Tax Act (FUTA)
▪ Earned Income Credit (EIC)
▪ Work Opportunity Tax Credit (WOTC) 1 disability per 100 staffs
• Income tax (income per annum)
<150,000 = 5%, <300,000 = 10%, <500,000 = 15%, 750,000 = 20%
<1,000,000=25%, <2,000,000 = 30%, <5,000,000 = 35%
• 5% deducted for Social Security
• Provident fund deduction as hotel policy
Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Legal Aspects of Human Resources:
The Law in the Workplace (8 of 12)
• Employee Performance
– Employee Evaluation
▪ Assuring work performance [and nothing else] forms the basis
for employee evaluations.
– Discipline
▪ Effectively communicating and consistently enforcing
workplace rules and policies.
– Dress and Grooming
▪ Allowance of legitimate religious dress and grooming practices
– Termination
▪ Preventing unacceptable termination of employees

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Legal Aspects of Human Resources:
The Law in the Workplace (9 of 12)
• Unemployment Issues
– Unemployment Insurance
▪ Funds provided by employers to make available temporary
financial benefits to employees who have lost their jobs.
– Unemployment Claim
▪ A claim made by an unemployed worker to the appropriate state
agency asserting that the worker is eligible for unemployment
benefits.

Thai labor law

Termination: 50% of monthly salary or 50% of 15,000 for 180 days
Resignation: 30% of monthly salary or 30% of 15,000 for 90 days

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Legal Aspects of Human Resources:
The Law in the Workplace (10 of 12)
• Employment Records
– Department of Labor records requirements include:
▪ Employee’s Name
▪ Gender
▪ Work Schedule
▪ Regular and overtime Earnings
▪ Address
▪ Job Title
▪ Hourly rate
▪ Wage deductions
▪ Work Schedule

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Legal Aspects of Human Resources:
The Law in the Workplace (11 of 12)
• Employment Records
– Any deductions from wages for meals, uniforms, or
lodging
– Amount of tips reported (for tipped employees)
– Covered leave and amount of leave for eligible
employees
– Employment Eligibility Verification (I-9)
– Personnel matters and benefit plans

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 15 – min break

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Human Resources in Action: Employee
Recruitment
• Internal Recruiting
– Focusing on current staff for vacant positions
– “Promotion from within”
– Alerting friends and relatives of current employees
– Recruitment is not solely the job of HR department
– Current staff can impact hotel’s turnover rate*

*Turnover rate is the percentage of

resigning employees : fulltime employees

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Human Resources in Action: Employee
Recruitment
• External Recruiting
– Hiring from outside sources
– Internet, newspaper and other advertisement options,
job fairs, executive search firms, recruiting at schools,
“help wanted” signs
– Attracting external candidates

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Human Resources in Action: Employee
Selection
• Employment Selection Evaluation Tactics
– Preliminary screening including reviewing the
candidate’s application
– Employment interviews
– Employment tests when specific experience or skill is
required
– Reference checks to confirm employment dates and
positions held
– Drug screening

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Human Resources in Action: Orientation (1
of 2)
• Orientation Goals
– To reduce new employee anxiety
– To improve morale and reduce turnover
– To provide consistency
– To develop realistic expectations

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Human Resources in Action: Orientation (2
of 2)
• Orientation Programs Address
– An overview of the hotel
– Important policies and procedures
– Compensation, fringe benefits, and pay periods
– Safety and security concerns
– Employee and union relations
– Property tours
– Specific topics related to the hotel

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Human Resources in Action: Training
• Training is absolutely critical to a hotel’s success!
– New employees and experienced staff need training
– Ongoing professional development can motivate staff
and contribute to employees’ advancement
opportunities
– Train the trainer
• Group Training
• Individual Training

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Training in a Hotel may include:
• Core Training
• Generic Training
• On-the-Job Training
• Leadership Training
• Out-of-house Training

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Human Resources in Action: Performance
Evaluation (1 of 3)
• Goals
– Determine where staff can improve performance
– Assess eligibility for pay raises and promotions
– Improve morale
– Assure legal compliance
• HR Roles
– Develop and communicate policies and procedures
– Address and resolve concerns
– File performance evaluation results

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Human Resources in Action: Performance
Evaluation (2 of 3)
Steps:
• Performance standards are established
• Policies relating to the frequency of and
responsibilities for ratings are established
• Employees’ performance data are gathered
• The raters (and sometimes the employee) must
evaluate performance

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Human Resources in Action: Performance
Evaluation (3 of 3)
Steps (continued)
• A performance evaluation discussion is held with
the employee
• Performance approval agreements/decisions are
made
• Evaluation information is filed

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Example of Performance Evaluation form

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Human Resources in Action: Compensation
(1 of 2)
• Compensation
– All financial and nonfinancial rewards given to
managers and non-management staff members in
return for their work
• Direct Compensation
– Salaries – legal (minimum wage)
– Bonuses
– Wages
– Commissions – cost effective

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Human Resources in Action: Compensation
(2 of 2)
• Indirect Compensation (refer to figure 5.7)
– Health Insurance
– Paid Vacation
• Managing a Benefits Program
– Determine objectives – offer competitive benefits
– Facilitate discussions with employees
– Communicate the “benefit” of benefits
– Monitor Costs

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Human Resources in Action: Employee
Retention
• Employee Retention*
• The use of organizational and supervisory policies
and procedures designed to encourage
employees to remain with the property.
• Traditional Leadership**
– Directing
• Contemporary Leadership**
– Empowerment
*it is predicted that after the Great Resignation (affected from the pandemic),
there will be the Great Retention.
** If the hygiene factor is satisfied, the main reason for resignation is
supervision.
Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Human Resources in Action: Termination
• Voluntary Termination
– Occurs when the employee decides to leave for their
own reasons
– Exit interviews help identify the organizational/
supervisory strengths and weaknesses suggested.
• Involuntary Termination
– Occurs as the result of decisions made by managers
▪ Improper performance – disciplinary action taken
▪ Downsizing

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Other Human Resources Activities
• Protecting the safety and health of employees
• Improving work quality – hygiene factor
• Succession planning

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Other Human Resources Activities:
Employee Safety and Health
• HR assistance for health-related activities can
include:
– Developing and selecting programs to help employees
cope with stress
– Developing procedures applicable to workplace
violence
– Communicating updated information about HIV in the
workplace
– Providing information about cumulative trauma
disorders

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Committees of Safety, Health and Welfare for
Organization with 100 employees and more
• Safety & Health Training for all levels, supervisors
and managers
• Selection of Committees
• Report the committees to the district (Labor
section)
• Training program for the Committees

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Other Human Resources Activities:
Workforce and Work Quality Improvement
• Professional Development Activities
• Cultural Diversity Initiatives
• Quality Improvement Programs

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Other Human Resources Activities:
Succession Planning (1 of 3)
• Step 1
– Identifying positions to be addressed in the succession
planning process
– Considering the hotel’s vision
– Assessing future requirements for meeting the guests’
needs
• Step 2
– Determining competencies and other talents required
over the long term
– Basing professional development decisions on talent
needs
Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Other Human Resources Activities:
Succession Planning (2 of 3)
• Step 3
– Determining current staff members for training to meet
competencies
• Step 4
– Recruitment of external staff and training them for the
responsibilities of future positions

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Other Human Resources Activities:
Succession Planning (3 of 3)
• Step 5
– Planning and implementing the necessary professional
development programs
– Develop plans for affected staff
• Step 6
– On-going monitoring and revisions in professional
development plans

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved
 Any Questions?

sirirat.wis@chatrium.com

Copyright © 2017, 2007, 2004 Pearson Education, Inc. All Rights Reserved