Two Types Of HRM Commerce Essay


There are two types of HRM which are regarded as management control. Nowadays Management control is very important because organizations are quite complex due new innovation leading to competition. Therefore, due to this reason it is crucial to have a control system to assure that the organization achieve its goals. There are two types of HRM which are as follows:

This type of HRM laid more emphasis on the task to be performed rather than the one who performs it. Armstrong(2001, 6), pointed out that the hard approach is a business-orientated philosophy which focuses on the need to manage people in ways which will obtain added value from them and thus competitive advantage. It sees people as human capital from which an objective can be obtained by investigating wisely in their development. Thus, it view employees as object.

2.2.2 Soft Approach

In this type of HRM, the employees are valued as important resources. The managers of the organization believe that they can gain competitive advantages through the people they have employed. This version involves laying emphasis on communication, motivation and leadership. This idea can be seen clearly in the statement of story (1989) in Armstrong (2001;6) that soft HRM involves treating employees as valued assets, a source of competitive advantage through their commitment, adaptability and high quality of skills, performance and so on. In short, this version of HRM emphasizes the need to gain commitment (hearts and minds) of employees through involment and communication, and other methods of developing a high commitment, high trust to organization.

2.3 Purpose of HRM in the Hospitality industry

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Today, in this fast changing world with the on set of globalization, economic integration and technological revolutions, materials and technology can easily be copied. The only element that can make the difference is a firm's Human Resource- the prime asset of an organization, this is so because the concept and practice of HRM have been seen as a means of achieving management objectives in Hotels that have realized its importance. The hospitality industry is seen as labour intensive and competitive as well. Due to this fact, labour is not only an asset but a treasure of an organization. So, there is a necessity to have HRM as a management technique for the major functioning of the Hospitality organization.

Firstly the purpose of HRM is that there must be a sense of belongingness between the employees and the organization, which means that workers must feel committed to the goal of the organization. There must be communication between superiors and subordinates. In Armstrong, 2001, Wood (1996) describes HRM " as a form of management which is aimed at eliciting a commitment so that behavior is primarily self-regulated rather than controlled by sanctions and pressures external to the individual, and relations within the organization are based on high levels of trust. This statement clearly shows us that a relationship between employer and employee is really important. The employees feel committed when they are consulted on matters pertaining to their jobs and being appraised and rewarded for it.

Moreover, another purpose of HRM is for employer to have information of the employees. At Le Meridien Hotel, the personnel officer keeps a birthday lists of all the employees and at the end of each month, they do a get together for all those employees. They cut cakes, have a drink, etc. This create a strong relationship between employees and the managers. Nowadays many hospitality organizations are working towards retaining and attracting employees so that they give achieve their goals as well as creating a goodwill for the organization.

However, it is necessary that the concepts in theory are put into practice. HRM has various functions in the hospitality industry. In the hospitality industry staff planning is very important, as it reflects the neat coordination of the hotel. Therefore, a proper recruitment and selection of employees is essential.

2.4 Recruitment and selection process

A major function of the HRM department is Recruitment. The function is concerned with the obtaining of man power to fill vacant sits that exist within an organization. Obviously, this function consists of series of activities including the preparation of job analysis, job description, job specification followed by the preparation of application form and job advertisement. Earlier, managers in the hospitality industry were recruiting employees just to fill vacancies. But nowadays it has changed. Hospitality managers have developed resourcefully measures for selecting employees. Managers have realized the importance of selecting the right job for the right person.

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In most organization, it is the responsibility of the human resource department to recruit people. Byars and Rue, (2003, 92) defined recruitment as follows: "Recruitment involves seeking and attracting a pool of people from which qualified candidates for job vacancies can be chosen and selection as a process of choosing from those available the individuals who are most likely to perform successfully in a job".

Normally recruitment and selection work together. Selection occurs before the person is chosen for a particular job. The person must be suitable for the job. As a matter of fact the selection procedures start when application are being received from applicants. Under the selection function first there is a short listment and after this activity the applicant are called by HRM for interview. Recruitment and selection process are crucial aspects in HRM. This is so because at first impression itself, it gives the employees an overview of the organization in terms of its aims, its level of competence, and what is expected out of their service delivery. In short, the recruitment and selection process must be able to choose the best employees according to their qualifications, skills and previous work experiences.

2.5 Absenteeism and lateness

Another huge problems faced by organizations is absenteeism, and lateness from the part of employees. Very often it is the consequence of worker's not being satisfied with their jobs. Usually it is for this reason that they prefer to absent themselves from work or come late to their places of employment. Moreover, high levels of lateness and absenteeism do have an adverse effect on the output, production and profits. Due to this effect other employers suffer, because they have to perform the job of latecomers and absentees. And as a result this leads to further dissatisfaction from the part of the other workers and results in lower output and poor quality of work. Therefore, it is important for the HRM of organization to ensure that their employees are satisfied with their jobs if they want to maintain productivity, performance and profit.

2.6 Staff Turnover

One of the major problems which are faced by Hospitality manager is staff turnover. Turnover is referred to a situation where a position is vacated either voluntarily or involuntarily and a new employee has to be hired and trained for the job.

2.7 Employee Retention

2.8 The Role of the Human Resource Manager and the Human Resource Strategy

The role of the Human Resource Manager is Very crucial. This is so because the HRM must plan organize, lead, control, recruit, train, implement the HR policies of the organization, monitor health and safety and maintain discipline. HRM plays a major role in ensuring an organization's success by managing its objectives and the expectations of employees at the same time, which are amongst the most important assets. In order to illustrate the importance of the HRM, Rocco Forte (1997.p 5-6) states that "In a service industry the most important ingredient in the product is people. The quality of service we give to customers and thus our success in the market-place. Not surprisingly, almost every discussion we have in the company starts or finishes with personnel matters. We recognize that we only continue to exist by attracting, training and motivating good people."

Conversely, the Harvard school has stated in Armstrong (2001;9) that "Human resource management involves all management decision and action that affect the nature of the relationship between the organization and its employees-its human resources." By this statement it clearly shows us that all these decisions and actions are taken by the HRM. He helps the employees to create the term 'relationship' within the organization through integration and communication and by avoiding any form of discrimination.

Chan (2004) pointed out that the 'role of the Human Resource Manager is evolving with the change in competitive market environment and the realization that Human Resource Management must play a more strategic role in the success of an organization. As such, a human resource strategy, which includes more people oriented approach and activities which are device towards the betterment of employees, must be implemented.

2.9 HRM in the Hospitality Industry-the responsibility of all departments

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HRM is considered as the backbone in all hospitality industries. The understanding of the function of the human resources among all the managers and supervisors is very crucial. Misunderstanding of the function can creates lots of mindset. The revenue of the hospitality organization is re-invested in paying salaries of employees and even more if the employees are efficient, talented and ready to work extra hours to meet the challenge of his/her job. Whatever the position of an employee is whether a waiter, housekeeper, guest relation officer, and so on, he/she must be selected according to his/her capabilities and interest for the job.

However, ensuring the proper management of human resources is the duty of the supervisors and managers of the various departments. A real example from the hospitality industry is if an employee gets hurt while he is on duty, he/she must firstly report the case to his/hre head of department before going to the HRM. This shows that the Head of the Department have great responsibility towards the employees. Byars and Rue (2003) said that "it is helpful to view the human resource department as providing three types of assistance: (1) specific services, (2) advice and (3) coordination". This clearly shows that the key function of the HR department is to give support to head of the department concerning human resource matters. So, if HRM are properly managed in all departments, the employees will be motivated in performing their duty and will; thus be appraised and rewarded.

2.10 The Reward Management

Reward system attract and retain employees who will work hard to achieve organizational goals because they see the connection between their future as well as the future of the company. Rewards are given to employees who have exceed the work or have contributed to the success of their company. According to Torrington et al, 2005, "Rewards are in the form of fringe benefits, allocations or even promotion and development." Moreover rewards are what employees receive for performing well in their job. It can also be said that rewards are very powerful motivators of performance, this is so because rewards motivates the staff to work and achieve high results in their performance.

There are two types of rewards which are namely Financial and Non-financial. Financial Rewards can be in terms of wages, salaries, individual rewards in terms of skill, level of competence and experience. But on the other hand non-financial rewards are in term of awards. For example an employee is rewarded as best employee of the month is considered as a non-financial rewards.

2.11 Performance Appraisal System

Performance Appraisal is a means of assessing the performance of an employee on a regular basis. Especially in the case of service industry performance appraisal can be carried out by supervisors and managers at work. By doing this, the worker is examined for his work by his superior or manager and as a result a rate is given to the latter's performance.

It is a formal meeting between the employee and another party (manager) where matters discussed have a written record and the main focus is on the future development of the employee (Williams, 2002). From this, it means that the worker has the opportunity to improve his or her level and turn his or her weaknesses into strengths. Performance appraisal system is a good means to review the position of an employee at work.

2.12 Motivation

Motivation can be described as the willingness and eagerness to do something without forcing or telling to do it. "Motivation is the process whereby goals are recognized choices are made and energy is directed towards achieving the goal (Hunt, 1992, p.5). However, motivation is also associated with performance. Thus, to increase performance, management must lay emphasis on motivation. People are motivated by different incentives like money or added-value. It is the duty of manager to determine what factors motivate their employees. Here are some theories devised by scholars will show the motivational needs of employees at work.

2.12.1 Maslow's Theory of Motivation

Abraham Maslow an American psychologist has divided the human needs into the following classes which are in the form of hierarchy, whereby people tried to satisfy their needs in an order of precedence:

Physiological needs

Safety and security needs

Social and belongingness needs

Esteem needs


Initially, the base of the pyramid consists of physiological needs. For Maslow this is the first level of needs that individual have to satisfy because these needs are primary or basic. They include food, clothing, shelter, thirst, sex and sleep. If an individual is deprived of these needs, he or she will be motivated by them.

Secondly, all organization should provide safety and security needs, which implies that employees should be protected from physical and emotional harm. Such needs includes the need for job security, old age, industrial accident, illness and among others. Many organizations tried to satisfy these needs by providing insurance, medical, and old age pension to their employees.

Thirdly, social needs lay emphasis on man's needs for love, friendship, acceptance and understanding by other groups. In organizations people tend to join different groups to satisfy their social needs. Organizations normally organize events like end of year party, kids party, sports activities, waiters race competition on a yearly basis as employees engage themselves in social interaction.

Fourthly, the pyramid consists of the self-esteem need. This need is divided into two parts namely internal and external self-esteem. Internal esteem need include personal satisfaction like self-respect including feelings such as confidence, competence, achievement and freedom whereas external esteem need include growth, status, recognition, reputation, prestige, status, appreciation and attention from others.

Finally, self-actualization is the highest need of the hierarchy. It involves the continuous desire to fulfill ones potential and self fulfillment. This means how challenging and interesting the work is and the ways in which workers are able to accomplish a task using their maximum skill.

2.12.2 Herzberg two factor Theory

Frederick Herzberg conducted a study in the 1950 on motivation among two hundreds accountants and engineers employed by an organization. They were asked about the good and bad aspects relating to their work conditions. According to this theory, in any workplace, hygiene and motivational factors can cause an effect on the behaviours and attitude of workers. A working environment which consists of both motivation and hygiene factors results into high motivation and few complaints among workers.

Hygiene Factors

According to Herzberg hygiene factors are those which do not lead to motivation but these factors prevent demotivation. At a more simple level managers should make sure that employees have the necessary hygiene factors so that there won't be any dissatisfaction at work resulting in a decrease in motivation. His study reveals the following as hygiene factor: company policy and administration, supervision, relationship with supervisor, working conditions, salary, personal life, relationship with subordinates, status and security.

Motivation Factors

According to Herzberg, motivation factors are those factors which lead to satisfaction and hence can motivate employees at work. When employees are deprived of these factors there will be dissatisfaction leading to a reduction in motivation. However, if employees are provided with these factors they will surely be motivated. The main motivators are: achievement, recognition, the work itself, responsibility, advancement in terms of promotion and growth.

2.12.3 Mc Gregor's Theory X and Theory Y

Douglas Mc Gregor put forward two different views of human being from the perspective of managers. The first is Theory X which is negative and the second is Theory Y which is positive.

Theory X

This Theory regards work as being a boring activity and workers are unwilling to perform. Theory X argues that workers are lazy, inactive, irresponsible and dislike working. To complete work, punishment and threats methods are used. Due to this effect, managers frequently monitor their employees. As a result, it will be difficult to attain organizational goals due to lack of corporation and trustworthy.

Theory Y

In this Theory, workers have a motivation to develop their knowledge. Theory Y relates four negatives views about the nature of human being. The first is employees believe that work is as natural as play. Secondly, employees may not necessarily be controlled by their supervisors as they devoted to the aims and objectives of the organization. Thirdly, workers have the potential and capacity to assume responsibility. And finally, employees can use their capacity to make creative decisions.

Mc Gregor believes that Theory Y is more valid than Theory X. This is so because to motivate employees, he states that employees should participate in decision making and organization should provide responsible and challenging jobs together with good groups relations.