Human Resource Management And Performance Business Essay


Management of any in industrial field has become more task bundle than initially perceived, as with all sectors of economic the ultimate aim is maximization of profits however management of hospitality industries business requires strict order and at same time ability to adjust and change as against a forecast response and equates task into business prospects Ventures. It's more idealistic to say many hospitality industry are no longer proactive as a result of the global economy down tone.

We live in the constantly changing and evolving world faced with challenges most noticeable in recent times is the down tone of economic as financier markets struggles to keep afloat in America, so are the rest of the world, there is now a say "America sneezes the rest of the word catches flu "this also reflected in united kingdom with mortgage prices crashes, banking sectors fumbling and job lost in every sector, not left out off course is the hospitality sector.

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This study was designed primarily to examine human resource management performance in hospitality industries (UK) with the assumptions that the human resource management performance affects the satisfaction and job commitment level of rest of hospitality structures.

To be able to test for this an onsite interview and data collation method was used; more so 'compass group' which is one of major player in UK tourism and leisure business was also used. The interview involves those in human resource department and their records for reviews, site contractors and casual scheme staffs.

Contrary to earlier assumptions, it was discovered that there were lags and loopholes in effective managerial skills and decisions to motivate staff performance, various degrees of job commitment and job satisfaction where noticeable amongst staff with positive attitude to job enrichment in comparison to those in low morale.

Work patterns possible pay role, job promotions, disciplinary and customer values were also discovered to be a major disruption to the flow of good job channels.

In conclusion issues were analysed and based upon these analysis necessary recommendations are that to optimize performance in considerations of management and staffing, all department must employ tactical motivational engines and adjust to the challenges promptly.


  Human resource management and performance is now a very strategic issue for industrial business and non-business organisation all over the world. The management of a workforce in a way necessary to achieve organisational objectives has become an important activity and for service organisations it is even more crucial as the quality of their product is linked with ability, capability and expertise of their workforce.

In the hospitality industry organisation deliver both tangible and intangible products.

As I embarked on my research it became clearer to me the adage "an organisation is as good as its employee". The strategic importance of human resource is therefore manifest in the organisation structure that is found in most organisations in the hospitality industry.

The human resource departments are largely responsible for the recruitment, training and development as well as the appraisal of an organisation's employees. I decided to choose an organisation with a lot of history behind it so that I can explore the rich resources base for my project.

Compass Group is a u k based company that operates solely in the hospitality industry, and my work has concentrated on their activities in the British highlands.


  Human resource management and performance in hospitality industry .today's working environment is by large a global strategy for overall economic growth of any nation. Many have structure the working venue to suit their everyday needs, however as different organization strive to meet the need t improve on workers performance as against company productivity, it seems apparent there's a new apex direction on how to that could be achieved.

    Human resource is largely responsible for the overall, recruitment training and performance in any given organization.

As I embark on this studies, a few hospitality industries were selected to compare and contracts in finding on workers performance commitment and satisfaction of the human resource department.

    A more physical and logical approach is to use a human resource department in hospitality with a lot of history and task on its table, therefore "compass group" was selected, whom is solely operating in most hospitality industry in the united kingdom, nevertheless my studies in restricted to selected sectors of their operations in the midlands, the group is responsible for everyday running of recruitment, training and        implementing every employment law where possible.


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 The moral of individual staff is tested with each forming different attitude towards their job, the more concern in the area s like incentives training method promotions and job security. It is almost conclusive that most staff lacks the motivation to complete their task as about 90% of their staff strength are on casual schemes.

  Human resource management defined

Human resource management (HRM) is defined by various authors and scholars, many people find human resource to be a vague and elusive concept-not least because it seems to have a variety of meanings. Pinning down an acceptable definition is a very difficult task. This confusion is compounded by the different interpretations found in articles and books about human resource management. Human resource is an elastic term that covers range of applications that vary from book to book and organisation to organisation.

Theorist and scholars like Armstrong, William, et al, have made this a topic of discussion in order to ascertain its standards. Below are some of the definitions in relation to this study.

Among the popular definitions are;

Human Resource Management (HRM) is the function within an organization that focuses on recruitment of,

management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the organizational function that deals with issues related to people such as compensation, hiring, performance management, organization development, health and safety, benefits, employee motivation, communication, administration, and training.

William R. Tracey, in The Human Resources Glossary defines Human Resources as: "The people that staff and operate an organization"; as contrasted with the financial and material resources of an organization. Human Resources is also the organizational function that deals with the people and issues related to people such as compensation, hiring, performance management, and training. A Human Resource is a single person or employee within an organization.

In any customer driven business human resource management is vitally important. especially it implies to tourism and other hospitality business so basically, human resource management is a series of integrated that form the employment relationship(milkovich1997).whether these decisions are efficient and consistent with one another directly influences ability of the company and its employees to achieve objectives. The entire human resource mix includes the following activies; staffing, training and development, compensation, employ relations, and work structure (Goldsmith 1997).each of these five in turn comprises several sub concepts.

Michael Armstrong in his book A Handbook of Human Resource Management," outline some important major principle for a business to be successful. Human resource management summarized by Armstrong "is a strategic approach to the acquisition, motivation, development and management of the organization's human resources. It is devoted to shaping an appropriate corporate culture, and introducing programs which reflect and support the core values of the enterprise and ensure its success."

Human resource is an increasingly broaden term with an organization, or other human system describes the combinations of traditionally administrative personnel functions with acquisitions and applications of skills knowledge and experience, employee relations and resource planning at various levels. The field draws upon concepts developed in industrial/organizational psychology and system theory.

Human resource has at least two related interpretations depending on context. The original usage derives from political economy and economics, where it was traditionally called labour; one of four factors of production although this perspective is changing as a function of new and ongoing research into more strategic approaches at human relations levels(1)this first usage is used more in terms of human resource development and can go beyond just organization to the level of nations(2)the more traditional usage within corporations and business refers to the individuals within a firm or agency. And to the portion of the organisation that deals with hiring firing training and other personnel issues, typically referred to as Human Resource Management.


In a simple term performance is defined as; the undertaking or accomplishment of an action, operation or process understand or ordered. The doing of any action or work.

However in relation to management it's a different approach. At one level, organization discipline and the management function group and individual performance can each be measured against objectives and targets and therefore remedial action to be taken when shortcomings are identified. This again reinforces the need for considered and contextual performance targeting to take place, and the contribution of effective employment relations.

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In practice, it is seldom this straightforward underlying causes have to be looked at in the management of performance in all except isolated cases, consistently poor department performance, indicates either supply or output quality problems, or issues concerning the quality management and supervision or else factors concerning staff quality capability or willingness to work.

Operation, it is a process with two key factors.

â-‹Â Discipline: strategies and activity for the maintenance of standards and remedial action where necessary.

â-‹ Grievances: strategies that enables employees to raise questions, issues and problems with the organisation, so that these may be resolved. 


This factsheet gives introductory guidance. It:

    â-‹ considers the performance management process and how it works

    â-‹ outlines the tools used in performance management

    â-‹ includes the chartered institute of personnel development CIPD viewpoint.

Fully realised, performance management is a holistic process, bringing together many of the elements which go to make up the successful practice of people management, including in particular learning and development. But for this very reason, it is complex and capable of being misunderstood.

What is performance management?

Armstrong and Baron define performance management as 'a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved'. They go on to stress that it is 'a strategy which relates to every activity of the organization set in the context of its human resource policies, culture, style and communications systems. The nature of the strategy depends on the organisational context and can vary from organisation to organisation.'

The implication of their definition is that performance management should be:

    â-‹ Strategic - it is about broader issues and longer-term goals

    â-‹ Integrated - it should link various aspects of the business, people management, and individuals and teams.

It should incorporate:

    â-‹ Performance improvement - throughout the organisation, for individual, team and organisational effectiveness

    â-‹ Development - unless there is continuous development of individuals and teams, performance will not improve

    â-‹ behavior management - ensuring that individuals are encouraged to behave in a way that allows and fosters better working relationships.

Armstrong and Baron stress that at its best performance management is a tool to ensure that managers manage effectively; that they ensure the people or teams they manage:

    â-‹ know and understand what is expected of them

    â-‹ have the skills and ability to deliver on these expectations

    â-‹ are supported by the organisation to develop the capacity to meet these expectations are given feedback on their performance

    â-‹ have the opportunity to discuss and contribute to individual and team aims and objectives.

It is also about ensuring that managers themselves are aware of the impact of their own behavior on the people they manage and are encouraged to identify and exhibit positive behaviors.

So performance management is about establishing a culture in which individuals and groups take responsibility for the continuous improvement of business processes and of their own skills, behaviour and contributions. It is about sharing expectations. Managers can clarify what they expect individual and teams to do; likewise individuals and teams can communicate their expectations of how they should be managed and what they need to do their jobs.

It follows that performance management is about interrelationships and about improving the quality of relationships - between managers and individuals, between managers and teams, between members of teams and so on, and is therefore a joint process. It is also about planning-defining expectations expressed as objectives and in business plans - and about measurement. The old dictum is 'If you can't measure it, you can't manage it'. It should apply to all employees, not just managers, and to teams as much as individuals. It is a continuous process, not a one-off event. Last but not least, it is holistic and should pervade every aspect of running an organisation.

Performance management helps organizations achieve their strategic goals. Rather than discarding the data accessibility previous systems fostered, performance management harnesses it to help ensure that an organization's data works in service to organizational goals to provide information that is actually useful in achieving them. And focus on the Operational Networking Processes between that performance levels. The main purpose of performance management is to link individual objectives and organisational objectives and bring about that individuals obey important worth for enterprise. Additionally, performance management tries to develop skills of people to achieve their capability to satisfy their ambitiousness and also increase profit of a firm.

Performance management is closely connected to Performance measurement. They are sometimes mistaken for each other. In careful usage, Performance Management is the larger domain and includes Performance Measurement as a component:


  Performance management   

   Is also the process of assessing progress toward achieving predetermined goals. Performance management

        is building on that process, adding the relevant communication and action on the progress achieved against these predetermined goals

In organizational development (OD), performance can be thought of as Actual Results vs. Desired Results. Any discrepancy, where Actual is less than Desired, could constitute the performance improvement zone. Performance management and improvement can be thought of as a cycle:

1. Performance planning where goals and objectives are established

2. Performance coaching where a manager intervenes to give feedback and adjust performance

3. Performance appraisal where individual performance is formally documented and feedback delivered.

    A performance problem is any gap between Desired Results and Actual Results. Performance improvement is any effort targeted at closing the gap between Actual Results and Desired Results.

Finally performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization.

Many writers and consultants are using the term "performance management" as a substitute for the traditional appraisal system. It encourages one to think of the term in this broader work system context. A performance management system includes the following actions.

    • Develop clear job descriptions.

    • Select appropriate people using an appropriate selection process.

    • Negotiate requirements and accomplishment-based performance standards, outcomes, and measures.

    • Provide effective orientation, education, and training.

    • Provide on-going coaching and feedback.

    • Conduct quarterly performance development discussions.

    • Design effective compensation and recognition systems that reward people for their contributions.

    • Provide promotional or career development opportunities for staff.

    • Assist with exit interviews to understand why valued employees leave the organization.

                                  HOSPITALITY DEFINED

The word hospitality seems ambiguous as many at time is confused with different content and context usage, nevertheless, as a matter of clarification, the term  hospitality being used in this presentation refers to the industrial and management sectors only.

There's no single definition for the term hospitality as it as a complex word. However clarity is given below as regards this work.

Hospitality here refers to the relationship process between a quest and a host, and it is also refers to the act or practice of being hospitable, that is the reception and entertainment of guests, visitors or strangers with liberality and goodwill. Hospitality frequently to the hospitality industry, which are jobs for hotels, restaurant, casinos, catering, resorts club and other service position that deals with tourists.


In the Dark Ages travelers had little choice except to stay in monasteries that offered food and shelter. Throughout the middle ages, local lords would take turns hosting the king and his royal court as they traveled. The idea of hosting travelers was taken even further when trade and commerce began to boom, prompting taverns and inns to arise, especially in ports cities.

Tourism has fueled incredible growth throughout the history of the hospitality industry because people love to travel and need a place to stay. Intelligent economic planners have begun to realize the vast potential of the hospitality industry and are keen to take advantage. This means providing for all the wants and needs of potential guests.

Although jobs in hospitality and tourism have grown more than any other sector over the past years, as noted by a new research, figures from shows a 36 per cent growth in hospitality and tourisms sectors last year, the highest of all UK industry sectors says the news centre.

For many years hospitality industry in the UK has faced constant recruitment difficulties. The industry has suffered from high percentage of unfilled job vacancies. The problem has been caused by poor staff retention.


As center course for this study compass group which is the reference centre for this study is a leader in providing food and a range of selected support customers in workplace in schools and colleges and in hospitals, at leisure center or in remote environments. Found in the UK in 1941 as 'factory canteen ltd' it grows with fastest expansion through mergers and acquisitions worldwide with the major players in USA, India, Brazil South Africa and Europe. In recent years the company profile as being a center of discussion in media and financial market. It now operates in over 64 countries worldwide.

With revenues of £5.589m in 2008 and £6.927m in 2009 as a company with 2.6%organic revenue growth on a constant currency basis, while the UK and Ireland sector of the group revenue stands at £1,926m(2007,£1931m).compass group UK annual revenues (in the year to 30 September 2008)and it employs over 66,000 people.


The travel, tourism and hospitality industry is highly labour oriented. As many scholars begin to look for jobs in a market economy that seems to shrink every day, it is good to see a glimmer of hope. As many top corporations in every sector struggle to make a profit, the hospitality industry actually shows a sizeable amount of growth. Between 2009 and 2014, this trend is supposed to continue; the industry has been adding 17 percent more wage and salary jobs each year. The hospitality industry has also been providing many young people with their first jobs- more than 21 percent of the workers in these establishments were between 16 and 19 years old. Therefore making recruitment training and development a major priority with most organisations.

Employees are most vital assets to companies because they are the ones on the front row, which the public see every day. They have customer contact as their main method of communicating their product and services. This is why human resource management have heavy responsibility in choosing the right candidate when it comes to recruitment process.

The primary objectives of this work is to find out how the effectiveness of human resources department and performances, in hospitality industries. Personal interview and observation research method was used in data collation.


Recruitment procedures

Contracts assignment

Training methods


Recruitment procedures: there are many ways to boost personnel dedication and overall performance in hospitality business. some of these ways intersect with general human resource concepts, while the rest is applicable to only tourism and hospitality companies every qualified human resource specialist would want to keep current employees(as long as they meet the company's needs)

In lieu of constantly hiring new ones. So holding on to good experienced, long-term employees' saves money and effort, however this methods unusual case that the entire staff changes perpetually.

So human resource managers would want to implement new series of ideas to boost personal internal motivation. One way to keep current experience employee happy is to permit flexible working schedules, not only among three of four shifts. This arrangement will allow employee to choose the best time that fits them. A major problem is recruiting, which involve hiring the right staff for the right jobs.

My major assessment areas area that of sport and leisure, where casual staffs are primary to achieve the ultimate goal "quality service" in most cases the casual staff get contracted for few hours or sometime a longer day shift, and are bound to be transported from one leisure area/department to another.

Noticeable problem that leads to staff morals is the fact that many have to travel long distances from their homes or their casual place of contract casual scheme around the country to their needed shift, but only get paid for their arrivals at point of finished not the actual departure itself.

Due to the inconsistence of the large event available throughout the year many of this staff are subjected to enormous stress of longer shift whenever it available, base on close observations any spent sleepless night at work covering and working round the clock with rest as little as an hour in 24hours shift all to meet the large department of customers needs, as a result tiredness and fatigue soon set in.


It is advice that as managers in hospitality industries; there must be an acquired skill to march policies, procedures and practices with the values by which a company operates. A company's values are put into practice in several ways; the choice of measurement that will be used to gauge performance that will be recognized, rewarded and talked about.

The major concerns here are for managers to be able to implement certain ideology which impacted the organization and the work in such organizations. matters such as what you measure, how you measure, how you treat guest and staffs, what you pay your staffs, how you recognize and reward your employees and all; must be done in lines with rules and regulations.

There are also several good practices that involve materials incentives. It is truly essential to note that people need money so one way to boost their motivation is to provide them with monetary incentives. A very good practice would be to distribute a certain percentage of annual revenues (5-10%) to all the employees. By so doing, salaries of the majority will rise up to 20%.another effective incentive would be providing free training courses and career development classes which would make employees feel involved. As well as valued. (jerris 1999).

For those who devote themselves to the job assignment sometime do feel letdown by the human resource department as hour are left unpaid because of confusion between contracted hours and actual hours.

Inter-department training are prone to the industrial performance as many staff have problem of job specification and job description to deal with. For instance a bar staff may be quickly ask to switch duty with a plate waiting staff as the need arises prior to training.

Problems with performance and resolution

Decline morale: this is indicated by rising rates of labour turnover, sickness absence rising accidence rates.

Conflicts in performances: declining organizational performance this is the most important function and practical symptom. Declining performance trends in a section or department often accompany the growth of conflict.

Poor performance and dismissal

It is quite legitimate to discuss someone for persistence and continue poor performance provided that they have had their short comings pointed out to them and have been offered remedial treatment, training and development in or to improve. It is useful to distinguish the following:

Poor performance as a result of the employees' capacity or capability. This may arise for a variety of reasons including promotion to level of incompetent, away from what the employee does well, and into job or location in which for some reason he/she cannot function effectively, Such as promotion or relocation. The best "employment relation" management in these circumstance will also consider the shortcomings of the selection problem that cause the problems to arise.

Misperception and misunderstanding at the point of appointment causing unreal expectations on the part of either the employee or the organization both when this occur it is best to end the arrangement (often with financial compensation) as soon as possible by an agreement.

Poor performance as the result of bad attitude or demeanor which may arise because of the following:

The employee dislikes the place of work, the job, the manager or the supervisor or their work collogues for some reason.

The employee do as given to understand that certain opportunity would be forthcoming and for some reason these have not materialize.

The employee performs part of their job well but other parts regularly and consistently badly because they dislike those parts for some reason.

The employee is using the job as a stepping stone to go on to other things and this is exacerbated when the other things fail to materialize for some reason.

In conclusion the following suggestions are of advice;

A change in both structure and department to accommodate for possible growth away from arising low morale of staff performance such as, favourism racism, contract of employment and incentives

The following solutions are therefore suggested:

management training and development of interpersonal skills

high standard of communication

training in practical problem solving in all activities, product and service qualities, customer service, staff and personal matters

appraisal and rewards

Regular briefing concerning organization, department, division group and individual performance, with emphasizes on the positive and early identification and resolution of problems.


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