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Human resource management in hospitality industry

An enterprise’s human assets or, put more conventionally,
its human resources tend to be one of the most significant
costs for most hospitality enterprises. In most
hotels the payroll is the single biggest cost item, whilst
in restaurants and bars it is usually second only to
material costs. Furthermore, human resources are usually
the first point of contact between an enterprise and
its customers. The effective management of these
human resources is therefore vital to the success of the
enterprise. In smaller enterprises, management of the
staff is by line managers who are often also the owners
of the business. In larger enterprises the line managers
will be assisted in staff management issues by human
resource or personnel managers.
In talking with many personnel and human resource
managers and in looking at many of the writings and
research on human resource management, it is apparent
that the role played by these human resource specialists
varies considerably from employer to employer. These
roles can be likened to the skills and functions involved
in the building industry. At the basic level are the technicians
such as electricians and plumbers. The human
resource or personnel equivalent would be the recruiter
or trainer. Above the technicians comes the builder,
who carries out the wishes of the client by coordinating
the activities of the various technicians. The human
resource equivalent is the personnel manager, responsible
for executing senior line managers’ directions by
carrying out a range of tasks himself or herself and/or by coordinating the personnel
technicians. Above the builder comes the architect, who is responsible for interpreting
the client’s wishes and advising the client about the best solutions. In the human
resource context the equivalent is a human resource manager who is directly
involved in business policy making and implementation.
Human resource policies are normally a part of an organization’s overall policy,
which will consist of a number of components (Figure 2.1). The extent to which they
are a subpolicy or an essential component of the overall policy may be a key indicator
of how an organization values its human assets and its human resource or personnel

Figure 2.1 The components of an organization’s policy



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