Human Resource Management Case Study

Abstract

Strategic Human resource management is a long term proactive planning by the Human Resource department on how organizational goals and missions will be achieved by the means of its labor force resources. This essay is based on Strategic Human Resource Management theories and practices as a requirement for our Human Resource Management unit HR633. For this assignment Baa & Bar restaurant has been chosen where the interrelationship between human resource management and Baa & Bar restaurant’s environment will be evaluated and discussed. The definition provided by Michael Armstrong and Long (1994) is discussed together with the matching model by Devanna, Fombrun and Tichy (1984) is also discussed. The relationship between these theories, ideas and model are evaluated with the context of Baa & Bar restaurant current practice and philosophies.

Introduction

Human resource management is about management of people at all levels in the organizational structure in order to achieve an competitive advantage over other business with the help of implementing their own HR policies and practices which are in alignment with their goals and missions of the organization. Armstrong and Long expand the idea of Walker who defined strategic human resources management as “the means of putting together the management of human resources with the strategic content of the business” HRM is also a strategic and comprehensive approach to managing people and the workplace culture and environment. Effective HRM enables employees to contribute effectively and productively to the overall company direction and the accomplishment of the organization’s goals and objectives (About.com,2014).

1. Baa & Bar

The corporate mission of Baa & Bar restaurant is to be well – recognized as one of the top “A” grade family restaurant in both its local and International tourist market. (Personal communication: Mr Sohal, S., 4th July, 2014)

Key objectives

• To train and develop current employees in response to equip them with the changing trends and markets for effective and efficient customer service deliverance
• To deliver a safe and secure working environment to its employees
• To be in alignment with the organizational goals and mission
• To promote fair and equal employment opportunity for all people despite their race, culture ,religion and gender of people
• Adhere to fair selection process for new recruitment
• To adhere to the minimum wage rate for its employees despite the race, culture, religion , or gender

This department is responsible overall management of human resources who are seen as the biggest asset for any organization’s success. The HR department is responsible for staff recruitment, training them effectively, developing them and allocating them to their respective duties. Their strategies need to be in complete alignment with the mission and goals of the restaurant. They acquire the right person with the right job at the right time in right number through training and developing them through organizational training and workshops in order to achieve efficiency and effectiveness in all other departments of the organization. They are main responsibility is to recruit, develop, use and maintain the employees of the restaurant as there is a shortage of employee loyalty and employee come in the restaurant to gain workforce experience and leave for better opportunities. Therefore to put a measure to this problem the HR department of Baa & Bar restaurant has formulated a written contract outlining the Baa & Bar restaurant’s policies and practices that employees need to adhere while working for the restaurant. The new employees that are recruited to be placed on a three months probation period to show the restaurant their ability and capabilities and as a means that shows the restaurant that they are the people for that position. Furthermore the contract restricts employees from leaving the company without giving the restaurant time to advertise, recruit and train another replacement for that position. All the employees are provided with basic training in all spheres of the restaurant duties so that when the need arises to cover up or switch positions for another employee due to absenteeism or if any emergency arises, they have the knowledge and are equipped to carry out of those responsibilities efficiently (Scribd.com,2014).

Baa & Bar restaurant is a family owned small restaurant run by Mrs Sunaina khan as CEO and Mr Sohail Khan as the Manager /Human Resource Manager and Mr D. Patel as the Supervisor/floor Manager/Human Resource officer for the restaurant. It has other ten kitchen employees. The structure of baa & bar restaurant has four levels, upper most is the CEO, second level is the Manager, third level is the human resource manager and at the bottom level are all the kitchen employees. The HR department is managed by the floor manager and the restaurants manager. All HR planning and strategies are formulated at the third level of the organizational structure Mr. Patel who carry out the planning process and forward it to the upper level ,to the manager and CEO ,for the final approval for all Human resource issues. Therefore the HR department has formulated some internal policies for their human resource requirements. The department has formulated yearly proactive plans to cater for the increased production and so that work flow in the restaurant is constant and does not stop due to shortage of staff. Every year the restaurant allocates certain amounts of profit for Human resource development for current employees and recruiting new employees depending on the requirements of the yearly projects. Every year the restaurant allocates a budget of $100,000 for its HR department from which the depart allocates $55000 for casual 3 to 5 new employee that are recruited every year during the summer for two months, mid November to mid January, when it’s the peak season for the restaurant due to general public holidays and influx of heavy tourist market. The department advertises on the seek website, Baa & Bar restaurants official website and in restaurant’s fortnightly newsletter. At times they also outsource to Frog recruitments to get casual labors on short notices (About.com,2014).

HR department formulates an action plan for its own department as a measure to attain their outlined projects and goals in order to achieve their organizational goals and mission. HR works in accordance with the restaurants mission and goals and have employees lined up to fit in when the need arises so that the operations of the restaurants day to day activities do not stop.

The HR department of Baa & Bar restaurant act as the chain agents for the change as the change arises. The HR manager and the restaurants manager work together hand in hand, educating, developing, motivating, supporting, coaching and training the employees beforehand and during the transition period so that employee are well prepared and equipped for the change. For Example, the one of the outlined goals for 2014 is to expand the Baa & Bar restaurant’s current sitting arrangement to a new outside courtyard dining to mark the restaurant’s 10^th birthday on 23^rd of November. The CEO, the Manager and HR Manager together with other department managers, had a meting with the front line workers and the kitchen staff and advised them about the planning and what strategies the managers will conduct in order to achieve the success of the project. They were also explained why the restaurant needs to expand and what is expected from the employees and how it is going to affect them. They were further explained on how their current role will change. The HR department came up with the idea on how to cater for the increased employee requirements and resources as the work load will increase dramatically. The HR came up with the action plan on how to cater for the increased work load. It has made provisions to recruit 5 new employees, 3 new waiters and 2 new kitchen hands to help in the kitchen. It has also made provision to send the existing waitresses and the bar tenders to attend workshops organized in house by outside representatives and also cater for further developments for kitchen hands and chefs to upgrade their skills and attain further education in their respective positions at the restaurants expenses (About.com,2014).

2.0. Policies and practices with reference to Devanna, Fombrum and Tichy

The Matching Model

According to Devanna, Fombrum and Tichy, (1984) Human resource management are the operational plans of the organization that emphasis on the strategic plans and are conducted by the top level people in the organizational structure. It further defines that the organizational mission and strategy should be entwined together with the human resource policies and practices like job designing, employee training and development etc.so that they are in constant flow with each other in order to achieve the organizational missions and strategies.

Human resource management department needs to scan the external forces that effect the organization at whole. The external forces are political, cultural and economic forces. Political forces are the laws, legislations and policies placed by the New Zealand government and ministry of labor such as organizational health and safety regulations which Baa & Bar restaurant need to abide by at all circumstances and average wage regulations, taxation, IRD deduction, child labor, illegal employment etc. such laws are placed by the concerned authorities in order to standardize the local workforce by safeguarding the employee as well as the restaurants interest. Therefore it effects the human resource management of the Baa & Bar restaurant where it has to base it’s employee salary, benefits, etc. in consideration and then decide the numeration packages for them. It also has to place internal policies and practices to ensure that OHS regulations are adhered by all employees at all time. It has to provide proper equipment and gear for the kitchen staff and send them to proper training on what to do in case of emergencies like fire, food poisoning. All employees have to go through proper food handling and hygiene courses before they start their new jobs at the expense of the restaurant. Such regulations put constrains on the human Resource management budgets thus increasing the expenses of the restaurant. Therefore, the HR department has to keep updated with the new policies and regulations in order to be in aligning with the New Zealand’s law and order as the government has placed a severe consequences for being infringement if found the restaurant could even be ceased from operating (Scribd, Inc.,2014)

Social forces have effect on HR management because the type of background that employees come from defines their work ethics, behavior, and attitudes towards their role in the restaurant. It also defines their level of commitment and responsibilities they display in their performances. An employee’s attitude towards their present and future personal goals defines them as where they want to be in their career which will show their attitude towards their work. It also highlights the background from which they come from and how they will interact and behave with other employees therefore HR rules and regulations need to provide certain guidelines and principles that all employees need to adhere to to reduce conflicts (Scribd, Inc., 2014)

Human resource management also has to pay emphasis on the economical forces of the restaurant because the economy of a nation either it’s suffering a recession period or growth; it will define the availability of its people’s education and health which simultaneously have a major effect on the available labor workforce. Therefore recruitment, selection and placement and well being in the restaurant will be affected and needs to be taken in consideration while making HR policies for the restaurant. The restaurant needs employees who are able to work up to their maximum capabilities. A growth in the economy means that the people are able to afford higher education and qualifications which the restaurant can utilize to its maximum in their respective tasks towards the achievement of the organizational mission (Scribed.Inc., 2014). Likewise competition also affects the HR policies as and increase in competition increases the need for the restaurant to retain their key employees with more benefits and renumuration as the demand for them increases.

3.0. Human resource contribution to organizational strategy and planning

Human resource management and planning emphasis on scanning the current human resource and forecasting for their future need in order to cater as the need arises. The HR department assesses the employee performance, education, qualification and skills with their current roles and assess if they match and compliment each other or not with the means of staff appraisal and performance measure on every six months basis. The employees who are no performing at their expected level are given six months to progress on their performance and by the end of the year all employees are rewarded with bonus in accordance with their performance. Accordingly the HR department rearranges the structure by regrouping duties to create more positions vice versa which is more favorable towards accomplishment of the restaurants mission and goals. The HR department provides on job training for its new recruits and further development opportunities to be aligned with the current trending skills and qualifications as the restaurant sees its loyal employees as asset to the organization and their updating developments will provide a competitive edge for its competitors. It believes that whatever they spend on staff development will be reaped by the restaurant and help the restaurant to equip it better with its competitors and in return will benefit in increase in profit level. Furthermore HR department needs to recruit only those candidates who are best equipped with the required skills and qualifications and capabilities that suits that specific position (Scribed, Inc. 2014).

The problem with the Baa & Bar Restaurant’s human resource policy and practice is that the policies and practices that are formulated is from the top level management and there is no provision for lower level employee involvement and insight from them as they are the ones who are affected by all the policies. The human resource department needs to make provision for an employee representative who can act on behalf of the employees of the restaurant in order to get their support and involvement when formulating HR policies and practices.

Conclusion

Human Resource Management and Planning involves taking measures and equipping the human resource of the organization for their current and future opportunities in achieving the organization’s missions and goals by formulating and updating respective policies and practices. Policies and strategies are formulated in order to set a fair and justified standards for recruitment, training and developing, redundancy process. The HR department has to scan its external environments in order to be aware of their impact on the organization’s labor force.

References

About.com,(2014). Human resource. Retrieved from http://humanresources.about.com/od/hrbasicsfaq/a/hr_onestop.htm

Armstrong, M. and Long, P. (1994). The reality of Strategic HRM. Institute of Personnel and development. London.

Devanna, M.A, Fombrun, C. J. and Tichy, N.M. (1984). A framework for Strategic Human Resource Management, in Fombrun et al. (eds), Strategic Human Resource Management, New York, John Wiley.

Scribed, Inc. (2014) External factors affecting human resource management. Retrieved from https://www.scribd.com/doc/43375780/External-factors-affecting-human-resource-management-HRM