HRM Exam Notes PDF

HRM 1 ppt things to cover: Hospitality HRM: An overview Current context. VUCA and BANI model. Impact of tourism change on work and the workplace. HRM policies and practices – an overview VUCA model V: votalitity: the dynamics of changes and speed with which these chang...

HRM 1 ppt things to cover: Hospitality HRM: An overview Current context. VUCA and BANI model. Impact of tourism change on work and the workplace. HRM policies and practices – an overview VUCA model V: votalitity: the dynamics of changes and speed with which these changes occur. (things changes fast) U: uncertainty: inability to predict, surprise, lack of understanding of how the events occur. C: complexity: multiple forces, chaos (everything is connected, making it hard to understand) A: ambiguos: no direct influence between cause and effect, lack of understanding the situation. (situations unclear) BANI model Brittle: Things look strong but can break easily under pressure. Example: A new phone might seem perfect, but one fall and it’s shattered. Anxious: All the chaos makes people stressed and worried. Example: Feeling nervous because there’s too much going on at once. Nonlinear: Small actions can cause big, unexpected results. Example: A tiny mistake in a game changes everything, and you lose. Incomprehensible: Some things are so complicated that they make no sense. Example: Why some videos go viral on the internet while others don’t. Main societal changes (1) Increased disposable incomes More time for leisure Easier and cheaper travel Improved lifestyles Increased population longevity Media are informing and shaping people’s behavior Global free market and competition Higher demand for individual, team and organizational level competencies Higher ethical scrutiny of company's practices (e.g. harassment) Stakeholders’ higher demands and expectations Knowledge-based workforce Technologic innovation and digitalization Demographic changes Employment, workforce and labor markets in H&T  Labor-intensive industry High levels of labor turnover (and staff attrition) Unskilled or semi-skilled nature of most jobs High proportion of seasonal, part-time, and on-call workforce Very heterogeneous labor market Poor conditions of employment and HRM practices Strategic HRM HRM is the effective management of people at work SHRM is a strategic and coherent approach to the management of an organization’s most valued assets – the people that work there who contribute individually and collectively to the achievement of company’s goals (Armstrong, 2007) SHRM focuses on how HRM systems (i.e., individual or bundles of HRM practices and policies) can have direct or indirect effects on firm performance and how they can create a competitive advantage for organizations (Buller & McEvoy, 2012) HRM – Organization Effectiveness Model It’s about understanding how a company's performance is influenced by how they treat and manage their employees. 1. Start with Intended Practices These are the company's plans to help employees do well. It focuses on three things: o Ability: Making sure employees have the skills they need. o Motivation: Giving employees reasons to work hard (like rewards or recognition). o Opportunity: Creating chances for employees to show what they can do. 2. Actual Practices This is about how these plans are put into action by managers.  It depends on good leadership and how well managers interact with employees. 3. Perceived Practices This is how employees feel about the way they’re treated. Important feelings include: o Psychological contact: Do employees feel valued? o Trust: Do they trust their managers? o Fairness: Do they feel treated equally? 4. Employee Attitudes How employees feel affects their attitude. Positive attitudes include: o Commitment: Loyalty to the company. o Satisfaction: Feeling happy at work. o Engagement: Being fully involved and enthusiastic. 5. Employee Behavior When employees feel good, they behave in ways that help the company: o Discretionary behaviors: Doing extra work without being asked. o OCBs (Organizational Citizenship Behaviors): Helping colleagues and supporting the company. o Turnover: Staying with the company instead of quitting. o Attendance: Coming to work regularly. 6. Organizational Performance When all these steps work well, the company performs better. Employees are productive, motivated, and committed, leading to great results. Feedback Loop The process doesn't stop here. There's a feedback loop to check how everything is going and improve. Simple Formula: Individual Performance = Ability + Motivation + Opportunity This means employees do their best when they’re skilled, motivated, and have chances to shine. Individual HRM practices and consequences in H&T Kusluvan et al. (2010) Recruitment and selection Training and Development Socialization/onboarding Leadership Performance appraisal  Job satisfaction Organizational commitment Employee turnover Employee performance Employee creativity Employee promotion Customer satisfaction 2 ppt things to cover: Resourcing the hospitality industry Workforce planning Job design Recruitment and selection Employer Branding Onboarding Workforce Planning: Key Points What is it? o Ensures the organization has the right number of people with the right skills to meet future needs. o Involves checking if job roles are still accurate. o Looks at the labor market to figure out who to hire or train. Advantages of Workforce Planning Prepares for the Future: o You can predict what you’ll need and fix any problems ahead of time (e.g., fill skill gaps). o Example: If the company knows it needs more tech experts in 3 years, it can start training people now. Builds a Talent Pool: o Helps find and prepare workers (through hiring, training, outsourcing, etc.) before they’re urgently needed. Strategic HR Planning: o Makes HR (the team that manages people) more proactive instead of just reacting to problems. Disadvantages of Workforce Planning Time & Cost: o It takes a lot of effort and money to plan everything properly. Not 100% Accurate: o Even the best plans can’t predict every situation. o Example: COVID-19 changed everything, and no one saw it coming. Changing Context: o The world changes fast, like new technology or economic shifts, which can mess up predictions. Challenges of Workforce Planning 1. Forecasting Problems o Predictions about the future aren’t always correct. 2. Supply Issues o Aging workforce: Older workers retiring. o Talent shortages: Not enough skilled people. o New skills: Workers need to learn new things (like coding or AI). 3. Demand Issues o Automation and AI are changing the kinds of jobs companies need. 4. Unpredictable World (BANI) o Things like COVID-19, technology, and global events make the future harder to predict. Quick Memory Tips Workforce planning = Right people, right skills, right time. Advantages = Plan ahead, build a talent pool, think strategically. Disadvantages = Takes time, costs money, predictions aren’t perfect. Challenges = Supply issues, demand for new skills, world is unpredictable. Simplified R&S Process Job analysis: Determination of the activities, responsibilities, and working conditions of a position, as well as the necessary skills and knowledges the worker must ensure to perform well Recruitment: Process by which we attract and search potential qualified candidates to fill in one or more vacancies Selection: Process by which we compare the candidates and advice the company as to who is the best fit and they should ultimately choose and make an offer Job design concept -which is about creating jobs that meet the needs and expectations of di7erent groups of people 1. Customer’s Expectations Customers expect good service or products. Example: If you’re working in a pizza shop, customers expect hot, tasty pizza delivered on time. 2. Society’s Expectations Society cares about fairness, ethics, and the environment. Example: A company should avoid polluting or treating workers unfairly. 3. Colleagues’ Expectations Your coworkers expect you to work well with them and help out. Example: In group projects, teammates expect you to do your part. 4. Employer’s Expectations The company or boss expects you to meet goals and be productive. Example: Your teacher expects you to finish homework on time and follow the rules. 5. Employee’s Expectations Employees want fair pay, respect, and a good work environment. Example: You’d want to feel valued and enjoy what you’re doing. What’s the Point? The idea is to design jobs that balance all these expectations. If any one group is ignored, things can go wrong. For example:  If employees are unhappy, they might leave. If customers are unhappy, they’ll stop buying. So, good job design makes everyone happy and helps the organization succeed! Memory Tip: 5 Expectations to Balance 1. Customers 2. Society 3. Colleagues 4. Employers 5. Employees Job Analysis Definition Job analysis is figuring out the duties, skills, and knowledge needed for a job. Why It’s Important Helps in hiring the right people. Guides training and performance evaluation. Makes sure job descriptions stay accurate. Key Questions 1. What does the person do? 2. What are their responsibilities? 3. What skills do they need? 4. What knowledge do they need? Methods Position audit Direct observation Self-analysis Surveys and interviews Skills inventory Equipment specifications Task inventory Quick Memory Tip Think of job analysis like investigating a detective case:  What they do = Tasks. What they need = Skills and tools. How to find out = Use different methods like observing or asking questions. Job description Definition A job description is a written document explaining the job’s purpose, tasks, tools, and requirements. Uses Helps employees know their role. Guides hiring, training, and performance evaluation. Helps decide salaries and supports legal cases. Key Parts 1. Job Title, Position, Salary, and Benefits. 2. Tasks, Duties, and Tools Used. 3. Working Conditions (e.g., environment). 4. Skills, Knowledge, and Physical Requirements. Memory Tip: Think of a Waiter A waiter’s job description would include: 1. Title: Waiter in a restaurant. 2. Tasks: Serve food, clean tables, handle payments. 3. Tools: Tray, apron, order pad. 4. Skills: Communication, customer service, teamwork. 5. Working Conditions: Busy, noisy, standing for long hours. Why do we need job analysis and description? Reduces role ambiguity(lack of understanding) - clear understanding of what the employee is expected to do in order to do a job well Re-assessment of existing jobs Emergency of new jobs – digitalization and technology (e.g. travel bloggers/influencers; digital marketing; new media) Serve as a basis for other HRM processes – R&S, training, performance appraisal, etc. Hiring personnel: finding and employing the workers a company needs A key part of management is finding and hiring the best people for the job Recruiting and hiring decisions must reflect the vision and values of the company Hiring the right people results is increased quality in performance and operations People make the difference between success and failure, particularly in H&T Recruiting and hiring varies from company to company, but is a responsibility shared by all members of the management Recruitment: Recruitment is the process of seeking and attracting qualified candidates for a job. Key Components 1. Influencing Factors (What affects recruitment success): o Employer Branding/Company Reputation: How attractive the company is to outsiders. o Manager/Management Team: Good leadership attracts talent. o Workplace Characteristics: Positive work environment and culture. o Job Characteristics: Interesting, rewarding, and clear job roles. 2. Quality of Job Candidates o The result of how well the influencing factors are managed. o High-quality candidates are skilled, experienced, and match the job requirements. 3. Desired Outcomes (Goals of recruitment): o Job Attraction: Interest candidates in the job. o Organization Attraction: Make the company appealing. o Job Pursuit Intention: Encourage applications. o Accept Intention: Convince candidates to accept offers. o Job Choice: Ensure selected candidates actually join. Key Points to Remember Strong influencing factors = better quality candidates. Good recruitment increases the likelihood of hiring top talent. Recruitment is about making the job and company appealing. Recruitment plan: Increase Employee Motivation: Hiring employees who are passionate and engaged, fostering a motivating work environment.  Reduce Financial Costs: Streamlining the recruitment process to minimize costs, such as using digital platforms to avoid printing and publication expenses. Align with Career Management: Recruiting employees whose career goals align with the company’s objectives, ensuring growth for both the individual and organization. Avoid Internal Conflicts: Ensure fairness and transparency in recruitment to reduce internal tensions. Renew Organizational Culture: Bringing in fresh talent to refresh and evolve the company culture. Increase Intellectual Capital: Recruiting highly skilled individuals to contribute to the company’s knowledge base. Promote Innovation: Focus on recruiting creative, forward-thinking individuals who can introduce new ideas. Promote Stability: Hiring experienced individuals who can help ensure organizational stability and continuity. Promote Social Inclusion: Actively recruiting from diverse backgrounds to support inclusivity and equal opportunities. Increase Employee Loyalty: Fostering an environment that attracts employees who are committed and loyal to the company. Recruitment Plan: Internal vs. External Focus Internal Recruitment: Increase Employee Loyalty: Hire from within to reward current employees and boost morale. Promote Stability: Internal hires are familiar with company culture, offering a sense of continuity. Aligned with Career Management: Offering promotion opportunities to existing employees to foster career growth. Increase Employee Motivation: Internal recruitment can motivate employees by providing advancement opportunities. Reduce Financial Costs: Internal recruitment often requires fewer resources and can be faster than external recruitment. External Recruitment: Renew Organizational Culture: External recruits can bring in new ideas and perspectives, helping evolve the company culture. Increase Intellectual Capital: External hiring can fill skill gaps and bring in fresh expertise. Avoid Internal Conflicts: External hires may help reduce internal competition by filling positions that may otherwise have caused disputes. Promote Innovation: External candidates often bring innovative ideas and fresh thinking that can drive change. Increase Intellectual Capital: Recruits from outside the organization can bring new knowledge and specialized skills. Recruitment Sources Advertisements: Internet / E-Recruitment: o Online Platforms (job boards, websites) o Social Networks (LinkedIn, Facebook, Twitter) Offline / Traditional: o Newspapers & Magazines (job advertisements in print) o Archival of Candidates and Spontaneous Applications (digital applications or databases) Consultants: Recruitment Agencies: External firms helping source and place candidates. Head-Hunters / Executive Search: Agencies focused on finding high-level, executive candidates. Temporary Work Agencies: Agencies that help companies find temporary staff on short-term contracts. Academic Institutions: Schools & Universities: Career services and partnerships with educational institutions to source candidates. Job Fairs & Competitions: Events where employers and job seekers meet for recruitment opportunities. Institutional Agencies: Employment or Reemployment Centers: Government agencies that assist with job matching. Professional Institutions: Industry associations that provide access to professional talent pools. Trade Unions: Labor organizations that may connect employers with potential workers. Word-of-Mouth: “Refer a Friend” Programs: Incentivizing current employees to refer candidates. Career Management Database: Database of individuals who have previously applied or expressed interest in the company. Job adds Informative Organization, Characteristics, name or confidential) Job (title, main tasks and responsibilities) Required & Preferred job specifications Work conditions Attractive: Pay and benefits offered Opportunities for career and development Highlight “selling points” Point to action: Specify how to apply Request one or more among: CV (with specific format?), cover letter, company application form A balanced description of the job: - both positive and negative sides of the job (e.g. fast- paced, closely supervised, work on weekends and holidays; routine to the point of being boring) The consequences of too rosy pictures: - Mismatch between the job and the new hires - Dissatisfaction - Early turnover *Tip for job ads Sell… but do not oversell! Give complete information *Tip for job ads: Make information available - normally, attraction is based on inferences made from the available info Employer Branding The main role of the employer brand is to provide a coherent framework for management to simplify and focus priorities, increase productivity and improve recruitment, retention and commitment (Barrow & Mosley 2005) it helps an employer be the employer of choice for the employees that it really wants to attract locally and internationally an effective employer brand has potential employees – and existing employees – shouting ‘I’d like/I like that brand on my CV! it helps with retention it helps build a good, authentic corporate reputation. Selection Definition: Process by which we compare the candidates and advice the company as to who is the best fit and they should ultimately hire. Selection process: ▪ Evaluation plan: ▪ 1st screening of applications; (to look for elements that exclude candidates, to see who is the best fit for the job, and diminish the number of applications to analyze in the 2nd screening) – Filter applications! ▪ CVs & motivation letter analysis ▪ Define exclusion criteria (e.g., years of professional experience). ▪ 2nd screening of applications; (Create an analysis matrix/ quotation grid to evaluate CV information and motivation letter.)- analysing informations like academic background, previous job experiences… Then give a criterion based on the experience information. For example: 1à5. has english language skills: 4 points… This determines the order for the initial selection interviews and application of psychological tests batteries. ▪ Candidate(s) admission ▪ Feedback to candidates not admitted to the process; ▪ Development of a recruitment pool Selection - tools and methods Curriculum vitae References Interviews Group exercises and simulations Psychological tests/ questionnaires Assessment centers Selection interview An interview is a conversation or verbal interaction between two people (in this case, the HR/manager and the applicant). It aims to assess objectively and systematically, the professional experience and behavioral aspects evidenced during the interaction, as well as the communication skills and interpersonal relationships. Helps to: - Validate previously submitted information; - Discover those skills and attitudes necessary to achieve right fit for the position; - Predict the successful integration of the applicant into the company’s culture. Steps to a selection interview Pre-interviewàtechnical interviewà Post- interview Pre-Interview: Getting Ready 1. Review Information: o Look at the candidate’s CV, tests, and other documents. o Match their education to their job history. o Spot anything unclear, missing, or strange (like unexplained job gaps).  2. Prepare Questions: o Decide what skills or qualities you’re checking for. o Write specific and relevant questions. o Make backup questions to dig deeper if needed. o Plan a way to organize answers for comparison later. The Interview: Talking to the Candidate Type of Interview: Use semi-structured or structured interviews: Structured: All candidates get the same questions for fairness. Semi-structured: Have a script but add extra questions if needed. 1. Opening: Greet the candidate warmly. Explain why you’re having the interview. Ask general questions about their interest in the job. 2. Check Their Motivation: Ask about what excites them about work. Learn what they value in a workplace (like teamwork or independence). Understand their career goals and what they expect as rewards. 3. Test Their Skills: Ask for examples from their work experience (use STAR): o S (Situation): “Tell me about a time when…” o T (Task): “What was the problem?” o A (Action): “What did you do to fix it?” o R (Result): “What happened in the end?” 4. Closing: Ask them how they think the interview went. Explain what will happen next in the hiring process. STAR Technique Example Skill: Conflict Resolution S: “Tell me about a time you handled a conflict at work.” T: “What was the problem you had to solve?” A: “What steps did you take to resolve it?”  R: “What was the result of your actions?” How to Conduct the Interview Create a comfortable atmosphere so they feel at ease. Follow a logical order (e.g., from past jobs to future goals). Start with open questions like “Can you describe…” Then use specific follow-ups like “What did you learn from that?” Avoid leading them toward “right” answers. Stay neutral. Post-Interview: What Happens After 1. Code the Answers: o Read the notes and highlight the key points. o Match their answers to the skills you’re evaluating. o Use a rating scale to rank how well they meet the criteria. 2. Write a Report: o Compare what they said in the interview to their CV and other documents. o Spot things that match or don’t make sense. o Summarize your thoughts and recommend whether to hire them. Preconceptions and Biases Similar to me: the similarity between the candidate and the interviewer Halo Effect: influenced by first impression to future evaluation Coherence: selective hearing, focus on answers that matches to the interviewers perception Recency/ Primary Effect: the tendency to prioritze first or last person they interviewed Beauty is good: evaluating by candidates attractiveness Social Stereotypes: generalized beliefs to some group of people Assessment Center What is an Assessment Center? An assessment center is a method to evaluate people by putting them in real-life situations to see how they solve problems and handle challenges. It uses different activities and tools to measure skills, roles, and tasks from many perspectives. Key Idea: It’s like a big, organized test where participants face real work scenarios, and evaluators check how well they do using different methods and tools. Advantages of an Assessment Center 1. Focused on Important Job: o Measures skills, roles, and tasks that are essential for the job. 2. Accurate Predictions: o Gives a good idea of how someone will perform in the job. 3. Reduces Errors: o Combines different methods (e.g., role plays, tests) and has multiple evaluators to make results more reliable. 4. Trained Observers: o Evaluators are experts who know what to look for. 5. Realistic Exercises: o Tasks feel like real business problems, so it’s practical and relevant. Disadvantages of an Assessment Center 1. Stressful for Participants: o The process can make people anxious. 2. Too Complicated Sometimes: o Simpler exercises work better; over-complicating can backfire. 3. Takes a Lot of Time: o Planning, running, and evaluating results is time-consuming. 4. Needs Experts: o Designing and managing the process requires highly trained specialists. 5. Expensive: o Costs a lot of money, including special facilities and tools. Why It’s Useful: Think of it as a real-life simulation to find out how good someone will be at a job, but it’s not always easy or cheap to do! Selection report: Written document systematizing the information gathered about the candidate, which supports the HR decision about his/her fit to the position. Onboarding What is Onboarding? Onboarding is the process of welcoming and training new employees so they feel comfortable and understand how things work in their new job. 1. Basic Introduction: Show them around: Walk them through the workplace and introduce them to colleagues. Explain how things work:  o What do other departments do? o What are the rules (e.g., no smoking, no drinking)? o How to work safely and follow company policies. o What happens if rules are broken (disciplinary actions or grievance procedures). Changed Management model of Onboarding Awareness: introduces new staff to the organization's vision, values, and culture, emphasizing their role's importance through engaging events and clear, timely communication. Desire: Managers sustain new employees' motivation by clarifying their role, highlighting growth opportunities, and offering support, resources, and mentorship to address the "What's In It For Me?" question. Knowledge: New employees gain confidence through training on processes, tools, compliance, and policies, with resources and feedback tailored to fill knowledge gaps. Ability: Employees apply their knowledge, build skills, and adapt to the job's demands through coaching, mentoring, and team integration. Reinforcement: Motivation and accountability are sustained through rewards, performance systems, and celebrating milestones like completing the probationary period. Benefits of Onboarding For the Employer (The Company): + Better Retention: Employees are more likely to stay. - Less Turnover: Fewer people quitting. + Higher Morale: A happier and more positive workplace. + Better Performance: Employees work more efficiently. + Good Reputation: A great onboarding process makes the company look good. For the Employees (The New Hires): Fit in Fast: They feel comfortable and part of the team quickly. Feel Valued: They know they’re appreciated and accepted. Confidence: They become good at their job sooner. Motivation: They’re excited to work and succeed. 3 ppt things to cover: Developing HR Training learning and development Talent management Performance management 1. Training What it means: Training helps workers get better at their current job by improving skills and knowledge. o Example: Learning how to use a new computer program. Why it matters: It makes people work more accurately and effectively. Examples of training methods: o Induction training (starting a new job). o On-the-job training (learning while working). o Formal courses (classroom or workshops). o E-learning (online courses). 2. Learning What it means: Learning is about long-term change in how a person thinks or understands something because of their experiences. o Example: Learning how to solve problems creatively in real-life situations. Why it matters: Performance reviews (evaluations) check how much someone has learned over time. 3. Development What it means: Development is about preparing people for future jobs or challenges. It focuses on long-term growth and career success. o Example: Preparing someone to be a manager someday. Why it matters: It connects personal growth to the company's future success. Examples of development activities: o Temporary roles with extra responsibilities. o Job rotation (trying out different roles). o Secondments (working in another department or company for a short time). o Having a mentor or coach. Quick Exam Notes: Training = Focus on now: Get better at your current job. Learning = Long-term change: Understand and improve how you think or do things. Development = Future focus: Prepare for new challenges or higher roles. Examples of training: Induction, on-the-job, e-learning. Examples of development: Job rotation, mentoring, secondments. Human Resources Development Develop individual knowledge, skills and competencies Enhance individual potential and personal growth Improve individual and group performance Improve organizational performance (strategic emphasis) HRD Practices: Training & Development Career Development Performance Appraisal Feedback Compensation Job Rotation TLD and HRD challenges: Strategy link: Training must match the company’s goals. Clear needs: Know and explain what skills are required. Implementation gap: Turn needs into results effectively. Adapt to change: Programs must evolve with business needs. Not always skills: Performance issues might be cased by tools, not employees. Obstacles to TLD Insufficient time to managers, supervisors, trainers to plan for and deliver training Lack of financial resources Insufficient trainers’ knowledge and skills Lack of quality resources available to training Scheduling conflicts Insufficient lead time between one’s hire date and the time when he or she must be on the job Difficulty in maintaining training consistency Turnover  Performance Gap: Difference between desired and actual performance. Fixing Gaps: Check for causes in TLD (training, support) or other areas (tools, motivation). Learning needs and opportunities Allocation of new tasks and responsibilities Specific aspects of current performance e.g. particular competencies* Promotion and career development To facilitate self managed learning Mergers and takeovers; organisation downsizing Training Process: Acessing the needs for TLD( state the objectives and why)à Selecting how to shape the behaviour through TLD( select which method will be applied) à Design the TLD( who will participate? What is the training about? Where will it be done? Why is the training important? How much will the training costs?) à Delivering the TLD( which environtment will the training be done? Which method will be applied?) à Acess the TLD (evaluate the performances of the employees who did the training) Training Design Checklist: Who, What, Where, When, Why, How much? Training Delivery Methods: Formats: Classroom, outdoor, on-the-job, online. Techniques: Case studies, role play, simulations, group activities. Learning Methods: On-the-job, Classroom, E-learning, Simulation. Coaching, Mentoring, Secondments, Self-Development. Individual Preferences: Employees prefer group/personal methods, but companies use e-learning for cost. Evaluating Training and Development Steps to Evaluate: o Decide what to measure. o Plan evaluation from the start. o Define success clearly (with stakeholders and finance). o Measure behavior changes. o Link training to business success. Kirkpatrick’s Model 1. Business Success: How did it help the organization (e.g., ROI: Return on invesment)? 2. Behavior: Did work behavior of the employees improve? 3. Learning: What was learned (skills, knowledge, attitudes). 4. Reaction: Feedback from participants(employees) (Did they like it?). Factors for Successful Training Transfer 1. Trainer preparation. 2. Quality of materials. 3. Matching program to real needs. 4. Motivation of trainees. 5. Cooperation among team members. 6. Opportunities to use new skills. Training and Performance (Garavan et al., 2020) better training= better performance: Training improves organizational performance. Big Impact in Some Places: Countries with low labor costs or less focus on performance benefit more. Growing Importance: Training is becoming more important every year as companies face new challenges. HR Strategies: Managers can use general or specific training to improve outcomes. Training in H&T  Purpose: High-quality service to exceed customer expectations. 4 ppt things to cover: Rewarding HR Why Rewards Matter in H&T Simple Pay Systems: Many hospitality workers are paid hourly or per shift, especially for part-time, casual, or seasonal work. Low Pay Issue: Hospitality workers are often among the lowest paid, with many earning minimum wage. Balancing Costs: The industry faces a challenge of improving pay while managing labor costs, often the biggest expense. Direct Earnings Opportunities: Workers in roles like waiters, bartenders, and receptionists can earn extra through: o Tipping o Service charges o Non-cash rewards (e.g., training, career growth). What Makes a Good Reward System? 1. Strategic Rewards: o Attract, motivate, and retain employees. Align with company goals and offer a clear employee value proposition (EVP). An Employee Value Proposition (EVP) is the unique set of benefits, rewards, and experiences a company offers to employees in exchange for their skills, effort, and commitment. It's like a "deal" between the company and its workers: The Company Offers: Pay, benefits, career opportunities, culture, and work environment. The Employee Provides: Their time, talent, and hard work. 2. Balance Pay & Benefits: o Decide on pay (hourly vs. performance-based). o Offer benefits like health care, training, and work-life balance. 3. Fairness: o Balance between internal equity (fairness within the company) and external comparability (matching competitors). 4. Communication: o Be open about how rewards are decided and how they link to company performance. o Explain each worker’s pay and benefits clearly. Types of Rewards  1. Extrinsic Rewards (Given by Others): o Financial: Pay, bonuses, and benefits. o Non-Financial: Promotions, awards, or special perks. 2. Intrinsic Rewards (From Within): o Feeling proud of good work. o Enjoying teamwork. o Personal growth and satisfaction. Traditional vs. Contingent Pay 1. Traditional Pay: o Based on the position or job. o Fixed pay, benefits, and incentives tied to the role. 2. Contingent Pay (Pay for Performance): o Rewards based on how well someone performs. o Encourages better results and motivates workers. Performances are related to rewards Performance management systems are more e7ective when results are tied with the reward system. Performance-related rewards enhance motivation to accomplish goals that match organisational needs Expectancy Theory (Vroom, 1964) This theory explains how people get motivated by rewards and how much effort they put into work. 1. Effort:  oThis is how hard someone works. People will try hard only if they believe their effort will lead to good performance. 2. Performance: o This is how well someone does their job. If they believe that doing a good job will get them a reward, they’ll stay motivated. 3. Reward & Significance: o This is what someone gets for their work (e.g., money, recognition, or promotions). The reward must feel valuable and important to the person. 4. How It Loops Together: o When people see the reward as worthwhile, it makes them want to work harder (effort). This effort improves performance, which leads to better rewards—and the cycle continues! The Formula Motivation = Expectancy × Instrumentality × Valence Expectancy: "If I work hard, can I do well?" Instrumentality: "If I do well, will I get a reward?" Valence: "Do I care about this reward?" The Difference in Simple Terms E-P: "Can I do it?" (Effort → Performance) Problem occurs when: o The person feels they lack the skills, training, or resources to succeed. o External factors (e.g., bad systems, too many obstacles) make success feel impossible. o P-O: "Will my good work matter?" (Performance → Outcome) Problem occurs when: The person doesn’t trust the system (e.g., unfair promotions or inconsistent rewards). Rewards are not clearly linked to performance. * Low E-P: “I can’t succeed even if I try.” Low P-O: “Even if I succeed, it won’t lead to what I want.” Low Valence: “I don’t care about the reward.” Example Imagine you’re studying for a math test: You think studying will help you get a good grade (expectancy). You believe getting a good grade will make your parents proud (instrumentality). You care about making your parents happy (valence). Rewards & Motivation Equitably reward: The amount of time and e7ort leads to the desired outcome you predict. Underreward: The reward doesn’t make sense to the time and e7ort you think you put. Overrewarded: The reward is more with the little of time and e7ort you put Performance-Related Reward: Why Not? 1. Pay isn’t a motivator: Money doesn’t always inspire people to work harder and might make them less excited about the work itself. 2. Managers aren’t accountable: Sometimes, managers don’t properly track performance or link rewards to actual results. 3. Bad systems: The system used to measure and reward performance might be unfair or unclear. 4. Ruins relationships: Rewards can create jealousy or bad vibes among team members. 5. Unfair rewards: Bosses often get huge bonuses while regular workers get very little, which feels unfair. How to Make Rewards Work 1. Define and measure performance first: Figure out what “good work” looks like and how to measure it. 2. Use available rewards: Work with what you’ve got—bonuses, promotions, or even recognition. 3. Visible, contingent, timely rewards: Rewards should be easy to see, based on actual effort/results, and given quickly after the good performance. 4. Use non-financial rewards: Things like praise, awards, or development opportunities can work just as well as money. Job Evaluation What is it? A way to figure out how important different jobs are within a company, but it focuses on the job itself, not the person doing it. Purpose: Helps build a fair pay structure (but doesn’t decide exact salaries). Incentives and variable pay can be added on top. Job Evaluation Approaches 1. Job Ranking  What it is: Listing jobs in order of importance/value. Pros: Simple, quick, and cheap. Cons: It’s subjective, hard to justify, and doesn’t show how much better one job is compared to another. 2. Job Classification What it is: Grouping similar jobs into categories and ranking those categories. Pros: More organized and works well for many different types of jobs. Cons: Doesn’t explain the differences in value between categories. Some jobs might not fit easily into a group. 3. Points Factor Rating What it is: Assigning points to job factors (e.g., skills, responsibilities) to rate and rank jobs numerically. Pros: Very specific and more objective—clearly shows differences between jobs. Cons: Still has some subjectivity and is expensive and time-consuming. 8 PPt things to cover: Challenges in Hospitality (SIT, Diversity, Corporate sustainability) Social Identity Theory (SIT) Social Identity: This is how we see ourselves based on the groups we belong to (e.g., school team, cultural group, family). In-group vs. Out-group: o In-group: The group we feel we belong to. o Out-group: Groups that we don't belong to. Self-concept: When your group is better than others, you feel good about yourself. Intergroup Bias: People tend to favor their own group and can treat others unfairly because of it. Diversity & Performance Cognitive Diversity: This is when people think differently because of their different backgrounds. o Inherent Diversity: Things like race, gender, age, and nationality shape how people think and experience the world. o Why it matters: Different perspectives lead to better creativity, decision- making, and problem-solving. Diversity Helps: o Better decision-making and innovation. o Increased profits and business success.  o Reduced unethical behaviors. 3. Diversity & Inclusion Why Diversity & Inclusion Matter: o Moral: It's the right thing to do. o Economic: Helps companies grow and be successful (like closing the gender wage gap). o Business Case: Makes companies more creative, innovative, and profitable. 4. Issues with Diversity Explicit Bias: Clear, open discrimination (illegal). Implicit Bias: Unconscious bias that’s harder to address. Employee Self-selection: People may choose to stay in groups similar to themselves, leading to less diversity. 5. Overcoming Bias Mindset: Be humble, recognize your biases, and focus on diversity. Mindful Thinking: Think carefully and take your time to make decisions. Debiasing: Use examples that challenge your typical thinking to counter biases. Decoupling: Create systems and processes to minimize bias in decision-making. 6. Diversity Initiatives at Work Companies should involve those who value diversity in planning. Top Management Involvement: Leadership should be part of the change. Resistance: Not everyone will accept change quickly, but it’s important to keep working toward a diverse and inclusive culture. Ongoing Effort: Diversity takes time, self-improvement, and learning. 7. Inclusive Work-Life Balance (WLB) Companies should allow flexibility in work to accommodate personal needs. Example: PizzaExpress allows employees to manage their hours to balance work and personal life, like coming in later for a gym class or leaving early to pick up children. Corporate Sustainability Triple Bottom Line (Elkington, 1997): Companies should focus on: o People (Social): Treat people fairly and contribute to social good. o Planet (Environmental): Protect the environment. o Profit (Economic): Be financially successful without harming the other two pillars. Sustainability: Companies must meet present needs without compromising future generations' ability to meet their needs. 9. Corporate Social Responsibility (CSR) & Sustainability  CSR: Focuses on ethical behavior, fairness, and responsibility to society. Corporate Sustainability: Involves long-term strategies that consider people, the planet, and profit. 1. Stakeholders Definition: A stakeholder is anyone or any group that can affect or be affected by an organization’s goals and actions. Primary Stakeholders: These are the groups that an organization depends on to survive and succeed. o Examples: Investors, employees, customers, suppliers, and the government/community. Secondary Stakeholders: These are groups that are not directly involved with the organization but can still influence it. o Examples: Media, interest groups, and civic organizations. 2. The 5 ‘Ps’ of Sustainable Development (SD) Sustainable development focuses on balancing different aspects of society and business: People: Ensuring social well-being and equality. Planet: Protecting the environment. Prosperity: Economic growth and success. Peace: Promoting peace and safety. Partnerships: Working together to achieve shared goals. 3. Sustainable Tourism Definition: Sustainable tourism means managing tourism in a way that doesn't harm the economy, society, or environment in the long term. It aims to meet the needs of visitors, the industry, and local communities while protecting future resources. Goal: Create a balance between tourism's benefits (like economic growth) and the challenges (such as environmental impact). Benefits: Sustainable tourism makes destinations better for tourists and the people who live there, while preserving the environment for future generations. 4. Benefits of Sustainable Practices for Businesses Employees: It helps attract, motivate, and keep employees happy and loyal. Reputation: Companies with sustainable practices are seen as responsible, which improves their public image and attracts more customers. Supplier and Partner Relationships: Building trust with suppliers and business partners. Risk Management: More sustainable practices help reduce the chance of problems or crises in the future. Funding: Companies with strong sustainability efforts can attract investors and funding more easily. Cost Reduction: Being sustainable can reduce waste and inefficiency, lowering costs. Better Performance: Overall, sustainability leads to improved company performance. 5. Sustainable Human Resource Management (Sustainable HRM) Definition: Sustainable HRM focuses on using human resources (employees) in a way that helps the company reach its goals while also caring for the employees’ long- term well-being and the environment. Ehnert (2009): Sustainable HRM includes planning HR strategies that balance financial goals, social responsibilities, and ecological goals. Jamali and Karam (2016): HRM can help companies turn social responsibility ideas into real actions that affect both the company and its employees. Voegtlin and Greenwood (2016): HRM helps shape how companies view social responsibility and how they treat their employees. 6. Key Elements of Sustainable HRM According to Järlström et al. (2016), sustainable HRM has four main aspects: 1. Justice and Equality: Treating all employees fairly and equally. 2. Transparent HR Practices: Making sure employees understand decisions about their work. 3. Profitability: Ensuring that HR strategies support the company's financial success. 4. Employee Well-being: Creating a good work environment, offering development opportunities, and taking care of employees' health and happiness. 7. Why it Matters For Businesses: Companies that treat employees well and follow sustainable practices can perform better in the long term. For Employees: Employees feel valued and are more likely to stay in a company that treats them fairly and helps them grow. For Society: Companies that practice sustainable HRM contribute to social justice and create a positive impact on the community. 9 PPt things to cover: Well-being, Work-life balance 1. What is Wellbeing? Wellbeing is how healthy, happy, and satisfied a person feels with their life. o Mental Wellbeing: How someone feels emotionally and mentally. It includes self-esteem, how well they handle problems, and how they relate to others. o Physical Wellbeing: Being healthy and comfortable. o Psychological Wellbeing: Feeling positive about life, growth, and relationships. 2. Perspectives on Wellbeing Hedonic Perspective: Focuses on happiness through pleasure and minimizing pain. o Subjective Well-Being (Diener & Lucas, 1999): § Positive feelings  § Lack of negative feelings § Overall life satisfaction Eudaimonic Perspective: Focuses on living a meaningful life and achieving full potential. o Psychological Well-being (Ryff, 1989): § Autonomy (being independent) § Personal growth (improvement) § Self-acceptance (positive self-view) § Life purpose (knowing why you're here) § Environmental mastery (handling life’s challenges) § Positive relationships (connecting with others) 3. Key Dimensions of Wellbeing Psychological: Mental and emotional health. Societal: Connections with society and community. Physiological: Physical health and bodily functions. Fiscal: Financial wellbeing, like job satisfaction and earnings. 4. Wellbeing as a Construct Wellbeing can be looked at in different ways: o Context-Free: Overall life happiness and satisfaction. o Medium-Scope: Wellbeing in specific areas of life (e.g., family or job). o Feature-Specific: Focusing on one part (e.g., satisfaction with a job). o Long-term: General disposition about life. o Short-term: Temporary feelings or states. o Can be measured at the individual level (personal satisfaction) or the group level (team or workplace satisfaction). 5. Measuring Wellbeing Physiological Measures: Blood pressure, heart rate, etc. Health-related Measures: Exercise, sleep, smoking, etc. Psychological Measures: Anxiety, depression, self-esteem, burnout, etc. Organizational Measures: Job performance, absenteeism, errors, turnover, etc. 6. Work-Life Balance Work-Life Balance is when a person can manage both their work and personal life without feeling overwhelmed. Challenges in the Hospitality Industry: o Long hours, weekends, holidays, and split shifts make it hard for hospitality employees to have time for family or personal activities. 7. Strategies to Improve Work-Life Balance Job Sharing: Two/ more people share who the things about full-time job.  Leave Options: Parental, study, or other leaves to help with personal needs. Support: For transportation, childcare, and dependent care. Flexible Time: Flextime, working part-time, compressed work weeks, etc. Flexible Space: Working from home or in shared office spaces. 8. Stress Stress is the body's reaction to challenging or harmful situations. Hans Selye’s Model: Stress can affect the body in three stages: 1. Alarm: The initial shock or reaction. (like teacher saying out of no where you have a mini test) 2. Resistance: The body tries to cope. (once you know about the mini test, you try to stay calm and cope with it) 3. Exhaustion: The body becomes overwhelmed and stressed. (after studying countless nights for several exams in a week, you feel drained, physicaly and emotionally tired) 9. Types of Stress: Challenge vs. Hindrance Challenge Stressors: Stress that comes from things like a heavy workload or time pressure, but these can motivate people to perform better. o Example: More responsibility at work. Hindrance Stressors: Stress that comes from things like unclear expectations or job insecurity, which don’t help people do their best. o Example: Office politics or lack of job security. 10. Consequences of Stress (STRAIN) Physiological: Physical issues like headaches or fatigue. Psychological: Emotional issues like anxiety or depression. Behavioral: Actions like burnout or absenteeism. 11. Psychological Theories on Stress Interactional: Focuses on how a person’s job fits with their abilities and needs (e.g., P-E Fit Model). Transactional: Focuses on how a person thinks about and reacts to stress (e.g., Transactional Model of Stress). 12. Key Models of Stress Person-Environment (P-E) Fit Model: o Demands–Abilities Fit: Does the job match the person’s skills and abilities? o Needs–Supplies Fit: Does the job meet the person’s needs for salary, benefits, etc.? Job Demand-Control Model:  o This model says stress happens when jobs are too demanding and the person has little control. o Psychological Demands: Workload and pressure. o Control: How much freedom or decision-making power the person has. 1. Wellbeing means how happy, healthy, and satisfied you are with your life. o Hedonic is about feeling good and being happy. o Eudaimonic is about having a meaningful life and growing as a person. 2. Work-Life Balance is making sure you can enjoy life outside of work. It’s hard for some people, especially in jobs like in hotels or restaurants, because they work long hours. 3. Stress happens when you feel pressure or anxiety from challenges. It can hurt your body, emotions, and actions. But, stress can also help you perform better if it’s something you can control, like a big school project. 4. Stress Models show that stress is affected by your job and how much control you have over it. If your job has too many demands and little control, stress can become harmful. Acute vs. Chronic stress Duration: Acute stress is short-term; chronic stress is long-term. Impact: Acute stress can be motivating and helpful; chronic stress is harmful and can lead to health problems. Response: Acute stress triggers a “fight-or-flight” (fight or run away) response; chronic stress causes long-lasting tension and exhaustion. Emotional Intelligence There are 5 elements to have EI: Self-awareness, self-regulation, motivation, empathy, and social skills. Model of Work Stress Causes (Hazards): Demands: Too much work. Control: No say in tasks. Support: Lack of help. Role: Unclear job expectations. Change: Workplace changes. Relationships: Conflicts with others. Symptoms: Individual: High blood pressure, irritability, headaches, bad habits. Organizational: More absences, staff quitting, low performance, arguments. Negative Outcomes: Health: Anxiety, depression, burnout, heart issues. Company: Costs go up, profits go down, lawsuits, accidents. Costs: £3.75 billion (health issues). £370 million (absences and less productivity).