Importance of Compensation Philosophy †MyAssignmenthelp.com

Question: Discuss about the Importance of Compensation Philosophy. Answer: Introduction Human resource management is the process of managing human resources of a given organization. It is one of the most crucial functions of the business and enables the top management to ensure that the employees working for the firm are productive and satisfied (Armstrong Taylor, 2014). The responsibilities of a human resource manager are varied starting from recruiting and training to rewarding and managing performance. An efficient human resource manager is a vital asset to any business. This report throws light on various functions of the human resource management. The position selected is that of a Restaurant manager. This position has been selected owing to varied responsibilities fulfilled by a restaurant manager and the sundry amount of new challenges that the manager faces on a daily basis. It is a unique position as the customers change every day and each customer has distinct needs and demands. A restaurant manager is expected to hire the right staff for the restaurant, manage a diverse set of customers, address their grievances, effectively manage the restaurant budget, follow compliance and handle conflicts (Beardwell Thompson, 2014). These vast spectrum of responsibilities make the position of a restaurant manager truly dynamic and it is imperative that the person selected for the role is dexterous and proficient. Designing and analyzing jobs Designing of jobs is one of the most crucial tasks assigned to an HR manager. This involves forming and formulating various responsibilities that need to fulfill by the employee (Jong, Parker, Wennekers Wu 2015). It specifies various relationships of the employee with the rest of the firm and clarifies expectations and defines responsibilities in an efficient manner. Job description clarifies the responsibilities and obligations that come with the position of a Restaurant manager. The purpose of the job description is to ensure the employee is clear and well aware of the responsibilities that he is expected to fulfill (German, 2016). It also elucidates to whom the employee reports and whose performance in the team is he accountable for. The description also lays emphasis on the most basic qualifications to ensure a persons eligibility to apply for the job. The job description of a restaurant manager is as below: Job Title Restaurant manager Reports to Restaurant owner Date 12/11/2017 Written by and approved by Job duties and responsibilities 1. Managing staff working at the restaurant 2. Budget planning and execution 3. Daily reporting to the owner 4. Managing stock and raw material 5. Coordinating with suppliers 6. Grievance handling 7. Ensuring customer satisfaction 8. Managing performance of the staff 9. Providing the staff with timely feedback Job specifications 1. Excellent communication skills 2. Graduation in any field 3. Excellent people management skills 4. Previous experience of 3 years in the same industry mandatory Performance standards 1. Implementation of budget 2. Generate revenue 3. Manage cost 4. Ensure excellence in customer service 5. Reduce turnaround time for customers Strategies to enrich or enlarge the job Departmentalizing the restaurant will help in enriching the job profile as it would make the work of the restaurant manager much easier (Portal, 2013). Each department will have one contact person and the restaurant manager will be directly communicating with these contact persons on a regular basis. This would save time and create an increased efficacy. The restaurant manager must be provided with timely rewards and effective recognition. These rewards would be aimed at making the manager feel more valued and instil a sense of motivation to assist in achieving better performance (Jones, 2017). Expanding the menu of the restaurant will enlarge the job of the restaurant manager as now the target market would increase and hence the number of customers availing services at the restaurant would be higher. This would require extra management and responsibilities of the manager leading to an enlarged job. HR planning and recruitment Human resource planning is the procedure of analyzing the current as well as future human resource requirement in any business. This involves examining how many employees are currently employed with the firm and fulfilling manpower gaps if any (Belcourt McBey, 2016). The aim of HR planning and recruitment is to make sure the business is neither understaffed nor overstaffed. Environmental scan assists managers in considering the factors that may directly or indirectly impact the recruitment process and availability of talent in the industry (Uysal, 2014). As a restaurant manager, this environmental scan includes: Increasing competition: the manager need to know how many more restaurants or similar services are available in the nearby areas and what are the salaries that are being offered to their employees. Employee poaching: The manager must also keep a hawk eye on restaurants that might be poaching our employees by keeping a track of previous employees current employment details (Kim, 2014). Economic factors (recession, inflation): Factors like recession and inflation hamper the availability of talent (Chauradia, Mawdsley Brymer, 2017). An increasing inflation increases employees salary expectations while recession generally slows down the economic activity of the nation Recruitment strategy Recruitment drives: Recruitment drives could be conducted which allow firms to address a wider audience and help find the right candidate for the job. These recruitment drives are intended to provide jobs to a large number of people. Handouts distributed in public places: Handouts could be printed and distributed at public places in order to make people aware about the vacancies at the restaurant. The eligible and interested candidates could apply by referring to the contact details in the handout. Referrals: The existing employees of the restaurant could refer other interested candidates and earn extra incentives for the same (Burks, Cowgill, Hoffman Housman, 2015). Selection of the perfect employee from various applying candidates is a significant responsibility of a restaurant manager. It requires immense skill to identify the right talent in the short span in which the candidate interviews with the firm. Organizations must be strict about the selection criteria in order to filter out ineligible candidates. Completion of application form: Anyone who applies for the position would be asked to fill out an application form. Candidates applying online can fill the application online. This will contain the details of the candidates work experience, educational qualifications, strengths, weaknesses and other personal information. Pre-screening: On the basis of their application alone, various candidates will be selected or rejected for the next round of interview. It is essential to ensure that the qualifications of the candidate matches well with those required for the job. It is difficult to know about a person entirely by their application, hence this is just the first level test. Employment tests: The role of a restaurant manager involves making quick decisions, manage stress and act fast in case of a crisis. To assess this ability of a candidate, a logical reasoning and aptitude test would be conducted. This will help to further shortlist candidates for the personal interview round. Interview: A one on one personal interview is the best way to judge a candidates communication skills, public behavior and ability to connect with people. An interview will be conducted in the presence of the restaurant owner as well as the HR head. Reference checks: if the candidate successfully clears the interview to the satisfaction of the jury, then a reference must be conducted to check upon the performance of the candidate in the previous jobs. This is important to make a decision and get a genuine and first hand feedback from the previous employer. Hiring decision: Once the entire process has completed, the top management must sit together and decide whether the candidate must be selected or rejected. Either way, the candidate must be informed the decision in a professional manner. Selection interview During the candidates interview, it would be essential that the owner of the restaurant or any other business partner along with HR personnel is present. For the position of the restaurant manager, the team would be evaluating the candidate based on communication skills, people management skills, quick decision making ability, efficient conflict management and polite behavior (Levashina, Hartwell, Morgeson Campion 2014). Question 1: Describe a situation where you have completely disagreed with your superior because you were very sure that you are right Question 2: What has been your biggest achievement and your biggest failure since you started working. What did you learn from both? Question 3: What is the most difficult customer situation you have ever faced and how did you tackle it? Question 1: If a customer has visited the restaurant with a large party and orders food worth CAD 300, but one of the food items has a strand of hair. He is demanding to wave off his entire bill. The staff is doubting that he has placed that strand of hair himself to get free food. On the other hand, customer is creating a scene and intimidating to sue the restaurant. What would you do in such a scenario? Question 2: There is a waiter who has been associated with the restaurant since inception and has been one of the best performing employees of the firm. One day you visit the terrace of the restaurant after working hours and see that he and two other colleagues have stolen beer from the restaurant and consuming it in the restaurant premises. What action would you take? Question 3: There is an office in the same building as your restaurant and the employees of that office regularly visit the restaurant. For the 14 of February, you have hosting a private party and 30% of the tickets have been sold. The CEO of the same office approaches you and requests you to allow the office to organize a party on 14th February, the same day as the private party. You cannot lose this client as they give you a daily business. What would you do? Orienting and training Pre hire: Before hire the candidates details would be recorded. The candidate must be asked to send all his documents for verification and feedback must be taken from the previous employers Hiring: Once the employee has been hired a formal welcome letter must be sent to the employee with details including his work timings, dress code, contact details of one contact person and other important organizational details (Lawson, 2015). First Day: The employee must be introduced to everyone in the organization. The details of the organizational structure and his team must be shared with the employee. The work must be clearly explained, a tour of the entire facility must be provided, a mentor must be assigned and any other guidance that the employee wants, must be provided. First week: It is important that the restaurant manager can handle different departments of the restaurant including kitchen management, accounting, staff handling etc. Training must be provided for the same. Performance must be closely evaluated. And towards the end of the week a meeting must be scheduled to take and provide feedback about the current experience in the restaurant. Three months: Three months from the joining, a complete performance evaluation should be done. The idea is to provide a feedback to the employee and recommend improvements if any required. Also the employees feedback should be taken about his team members. The employee must also share an action plan for the next three months. Justification for the program Employee orientation: This on boarding program would orient the employee well with the restaurant and the organizational structure. Employee acceptance: This program is aimed at ensuring the employee accepts the organizational culture and vice versa. The employee must be comfortable in the place of work (Williams, 2015). Feedback: This program would also give way to a genuine and transparent feedback policy. This way the employee would be able to improve his performance and he can also provide feedback and recommend any improvements in the organization. Performance evaluation: This on boarding program involves performance evaluation meetings between the manager and his superior every three months. This would ensure that the performance is regularly evaluated and kept under check. Feedback from the employee will give a clear idea about the effectiveness of the orientation and training program. This could be done via feedback forms as well as encouraging open discussions at the end of the program. Employee performance must also be evaluated before and after the program. Any positive change in the performance could be an indicator of the success of the orientation program. Employee buddies could be assigned and also informal behavior of the employee must be noticed. An active participation in office activities, clarity of work and interaction with other employees is an indication of well oriented employees. Rewards: Direct compensation The philosophy behind the restaurants compensation program is to ensure an attractive and flexible pay along with benefits. The goal for the restaurant is to be competitive in recruitment. The high compensation package also reflects upon the high quality of performance expected from the employees (Reda, 2015). It is important to make employees feel valued and that their performance is given the due credit as well as appreciation. This is an important step to motivate employees and letting them know that the work they perform is important and valued. Various performance evaluation methods must be in place to ensure that the right and deserving employees are rewarded. These merit systems must provide a credible relationship between employee performance and raises awarded to them. A restaurant manager would be evaluated as per a balanced score card. It is a strategic performance management tool which evaluates an employee on the basis of four important aspects, Financial, customer, internal business process and learning growth. Fixed Salary Annually Monthly Basic Pay CAD 120000 CAD 10000 HRA CAD 2400 CAD 200 Conveyance CAD 1200 CAD 100 Telecommunication CAD 240 CAD 20 Professional Tax (CAD 1200) (CAD 100) Provident fund (Contribution of employer) CAD 1200 CAD 100 Provident fund (Employee) (CAD 1200) (CAD 100) Net in hand salary CAD 122640 CAD 10220 Rewards: employee benefits Benefits provided to the restaurant manager would be as below: Travel: The restaurant manager will be provided one way commuting facility. This is because the manager might have to work late night. In such a scenario it becomes the responsibility of the restaurant that the employee reaches home safely. Telecommunication expense: The restaurant manager would be provided a mobile phone. The contact details of which would be made public for customers to contact. This will make the manager a one point contact for everyone. Health insurance: This would be provided to all the employees with the restaurants partner healthcare agency. Tying up with recruitment agencies can be a great idea to hire the right candidates. They take the pressure of screening, interviewing and evaluating the candidates off from the restaurant. The top management then only get candidates shortlisted by the recruitment agency. And it is easier for them to filter the best from the cream. The restaurant does not have a flexible benefits program. This is because the three benefits mentioned above will be offered to the restaurant manager because they are needed. The flexible benefits plan works well for the organization when the cost can be passed on to the employees as a deduction from their before tax income (Bloom Trahan, 2016). The restaurants philosophy is to recruitment competitive. Therefore no additional cost would be passed on to the employee. Travel expense, telecommunication expense, health insurance and sick/casual leaves would be provided to the employee. This is done to increase employee loyalty and satisfaction. 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