Chapter 2:
2.1.
Review of Related Literature
Foreign Studies
The 2013 National Restaurant Industry Survey represents
the first national employer survey of work and human resource
management in the U.S. Restaurant Industry. It documents the
range of practices adopted by employers and how those practices
affect turnover and employment stability – problems that are
endemic across the industry. They examined management
practices and outcomes in four customer segments: fine upscale
dining, casual fine dining, moderately priced family restaurants and
fast food / quick service restaurants. High levels of employee
turnover are problematic in restaurants serving all four customer
segments – leading to higher employee costs and lower service
quality and organizational performance. In fact, the survey data
demonstrates that better human resource practices can reduce
employee turnover almost by half.
They surveyed restaurants in the 33 largest metropolitan
areas of the country, where wages and the cost of living are likely
to be higher than in smaller cities and towns – and where higher
competition is likely to drive employers to invest more in employees
in order to compete more effectively on quality and service. Over
half of these restaurants are located in states with tipped and nontipped minimum wage rates that are considerably higher than the
Restaurant Management System – Human Resource Management System
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federal minimum rates. Thus, the wages, human resource
practices, and turnover reported by managers in this sample should
represent somewhat better conditions than those found in a
nationally representative study. Nonetheless, even in this sample,
the proportion of restaurants that adopt better human resource
(HR) practices and invest in the workforce is modest. Several
findings are noteworthy.
http://rocunited.org/wp-content/uploads/2014/01/HRPTCS_Cornell
_Report_4.pdf
According to National Survey, the first national employer
survey of work and human resource management in the U.S.
restaurant industry, they conducted a telephone survey of
managers in 1,150 restaurant establishments across the country.
Managers in each workplace provided information on the types of
customers served and restaurant characteristics. They reported the
number and types of employees providing front-and-back-of-thehouse services. For this report, front-of-house employees include
servers, bartenders, hosts, bussers, runners, barbacks and
cashiers. Back-of-the-house employees include line cooks, prep
cooks, dishwashers and potters. For each of these groups,
managers reported on their human resource practices – including
staffing and selection, training and development, compensation,
Restaurant Management System – Human Resource Management System
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and the organization of work. Performance outcomes such as
turnover and employment tenure were also addressed.
In this report, we provide an overview of the restaurants
included in our study as well as our findings regarding the use of
different management practices and their relationship to key
outcomes.
http://rocunited.org/wp-content/uploads/2014/01/HRPTCS_Cornell
_Report_4.pdf
According to Human Resource Management for the
hospitality and tourism industries written by Dennis Nickson, there
are arguments for best fit advocate a close fit between competitive
strategies and Human Resource Management, those in favor of
best practice approaches to HRM suggest that there is a universal
‘one best way’ to manage people. By adopting a best practice
approach it is argued that organizations will see enhanced
commitment from employees leading to improved organizational
performance, higher levels of service quality and ultimately
increased productivity and profitability. Usually couched in terms of
‘bundles’, the HRM practices that are offered in support of a high
commitment and performance model are generally fairly consistent.
For example, Redman and Matthews (1998) outline a range of HR
practices which are suggested as being important to organizational
strategies aimed at securing high-quality service:
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Recruitment and Selection. Recruitment and selecting
staff
with
the
correct
attitudinal
and
behavioral
characteristic. A range of assessments in the selection
process should be utilized to evaluate the work values,
personality, interpersonal skills and problem-solving abilities
of potential employees to assess their ‘service orientation’.
Retention. The need to avoid the development of a
‘turnover culture’, which may course be particularly
prevalent in tourism and hospitality. For example, the use of
retention bonuses to influence employees to stay.
Teamwork. The use of semi-autonomous, cross-process
and multi-functional teams.
Training and Development. The need to equip operative
level staff with team working and interpersonal skills to
develop their ‘service orientation’ and managers with a new
leadership style which encourages a move to a more
facilitative and coaching style of managing.
Appraisal.
Moving
away
from
traditional
top
down
approaches to appraisal and supporting thing such as
customer evaluation, peer review, team based performance
and the appraisal of the managers by subordinates.
Generally, all of these performance appraisal systems
Restaurant Management System – Human Resource Management System
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should focus on the quality goals of the organization and
the behaviors of the employees needed to sustain these.
Rewarding Quality. A need for a much more creative
system of rewards and in particular the need for payment
systems that reward employees for attaining quality goals.
Job Security. Promises of job security are as seen as an
essential component of any overall quality approach.
Employees Involvement and Employer Relations. By
seeking greater involvement from employees the emphasis
is on offering autonomy, creativity, cooperation and selfcontrol in work process. The use of educative and
participative mechanisms, such as team briefings and
quality circles are allied to changes in the organization of
work which support an ‘empowered’ environment.
http://ec.europa.eu/enterprise/sectors/tourism/tourism-businessportal/documents/business/resources/personnel_management.pdf
Mc Donald’s is the world’s leading fast-food company by
sales, with about 32,000 restaurants serving burgers and fries in
about 120 countries. It consists of Human Resource Functions
followed to acquire employees.
Job Analysis. In Mc Donald’s job analysis done on the
basis of interviews. They have predetermined standards on
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which employees are awarded on the basis of their skills,
knowledge and experience.
Recruitment, Selection and Retention. For Mc Donald’s,
people are its important asset. This is because customer
satisfaction begins with the attitudes and abilities of
employees and effective workers are the best route to
success.
Recruiting Suitable Applicants. Positions are generally
advertised in the restaurant. The company’s recruitment
history shows this is the best method of hiring quality staff. It
also uses local job centers, career fairs and other local
facilities. It is virtual to use effective hiring material with a
clear message targeted at the right audience.
Selection. After the final interview, the manager will rate the
responses of the applicant. A successful applicant will have
demonstrated skills and behaviors that have been identified
as being key to the position.
Orientation. Mc Donald’s inducts all new employees into the
business through Welcome Meeting which they must attend.
The Welcome Meeting gives an overview of the Company
including job role, food, hygiene and safety training, policies
and procedures, administration, benefits and training and
development.
Restaurant Management System – Human Resource Management System
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Mc Donald’s performance appraisal methods are graphical
rating scale and 360 degree feedback.
For better and innovative human resource management, Mc
Donald’s implemented K/3 HR Personnel Management, Payroll
Management and Report Module as well as Performance
Management, Employee Capacity Quality module. Mc Donald’s has
built
HR
management
platform
and
finished
planning
for
organization structure, managed personnel files, input dynamic
human resource data and managed payroll. Based on K/3 HR
System Personnel Management and Payroll Management, Mc
Donald’s not only records employee transfer, promotion and
transfer history but also adjust the workflow.
If a resigned staff come back and rejoin in K/3 HR System
checks ID Card Number and lists all the history of the staff, which
helps the manager make proper decision.
http://www.scribd.com/doc/26247206/Mcdonald-s-StrategicHuman-Resource-Management
The concept of human resource management first appeared
in the 1980’s and the use of the term grew in the 1990’s. Initially,
writers in the field focused on trying to distinguish between
personnel management and HRM, but according to Boxall and
Purcell (2008) HRM has, in spite of the lack of clarity over
Restaurant Management System – Human Resource Management System
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definition, become the most popular term to refer to the activities of
managers in relation to people management.
The glance through any journal relating to human resource
management nowadays, will find countless advertisements relating
to the various ways that information technology can assist those in
HR department to do their jobs. These include systems for erecruitment, online short listing of applicants, online performance
management and appraisals, e-learning, online psychometric
testing, as well as IT systems to help with payroll, employment
data, recruitment administration, references and pre-employment
checks. There are also large organizations which use HR shared
service centers where they bring many of the HR services together
and use technology such as e-mail, a company intranet or
telephones to provide HR information in order to deal with HR
queries and provide expert advice for people working at various
sites, sometimes in different countries.
The increase use of information technology is already having
all of these effects, at least to some extent. For many HR
managers, IT for routine tasks frees them from more mundane
tasks, so they have more time to think strategically. Increasing use
of IT has also ensured a much greater amount of information is
available on which to base decisions and to plan for the future.
http://catalogue.pearsoned.co.uk/assets/hip/gb/hip_gb_pearsonhig
Restaurant Management System – Human Resource Management System
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hered/samplechapter/0273740989.pdf
2.2.
Local Studies
According to Vivien T. Supangco in her Strategic HR
Practices in Some Organizations in the Philippines research study,
strategic human resource (HR) practices in a convenience sample
of organizations in the Philippines and compares result of Cranet
(Cranfield Network) surveys conducted in 2003 and 2008.
Characteristics of sample organization as well as their strategic
planning process generally obtain, but involvement of HR from the
outset of business strategy formulation does not yet characterize
the majority of this organization.
HR practices that have basically remained the same include
among others, the following, the most common source of HR head
is HR specialist from outside the organization, and responsibility of
HR policy decisions is shared between HR and Line managers.
On the other hand, a few practices have changed in the
following manner: increase in the application of HRIS (Human
Resource Management System) in payroll, time and attendance,
but decrease in application in recruitment and selection. In addition,
performance appraisal is practiced across all staff categories in
2008; in 2003 only the managerial and professional/technical
workers are generally appraised through formal system.
http://journals.upd.edu.ph/index.php/pmr/article/viewFile/2791/2605
Restaurant Management System – Human Resource Management System
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vol4no1.pdf
The Provincial Government of Bulacan’s Human Resources
Office (PHRMO) is responsible for, among other services, the
maintenance of records associated with payroll preparation and
processing. They are also responsible for maintenance of 201 files
of each individual employee.
Among the significant services brought about by PHRMO
through the use of HRIS, on top of the list is the fast and accurate
processing of pertinent employee records like service records and
payroll. Through the automatic computation facility and integrated
time keeping system, processing time to determine leave credits,
which is necessary for computation of pay of employees who have
absences and processing time to prepare remittances for GSIS,
PAG-IBIG and MEDICARE are very well addressed. This system
did not only empower the employees and increased their
productivity, but also became a tool to eliminate red tape. Through
HRIS (Human Resource Information System), response time to
employee request is admirable.
Human Resources Information System (HRIS) formerly
Personnel Management Information System consists of areas in
Local Governance:

eAdministration
(Support
Services/Administrative
Services and Human Resource Management)
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
eServices
(Payroll
Processing
and
Records
Management)
The HRIS is a LGU type, locally used by Provincial
Government of Bulacan. Its functions are to give innovative
services in maintenance of personnel records, payroll management
and processing and biometrics time keeping.
http://www.bulacan.gov.ph/government/pmis.php
Human Resource Innovations and Solutions, Inc. (HURIS) is
a Philippine-based Knowledge Process Outsourcing (KPO) and
Consultancy company that started in 2005 by seasoned HR and IT
Professionals. It is a complete HR solutions provider that enables
business transformation through advanced methodologies and
information technology.
The company specializes in providing Business Partners
with superior technological solutions and high level outsourcing
services across all functional areas of Human Resources. The
company’s main thrust is to provide the Business Partners
assistance
in
the
design,
management,
development
and
streamlining of systems, functions, procedures and processes to
increase organizational efficiency and maximize internal resources
with the use of local HR Management Systems and high level HR
Outsourcing services. Their products are Attendance Monitoring
System (AMS), Human Resource Management System (HRMS),
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integrated Cooperative Management System (ICMS), Payroll
System and ePayslip. The services they provided are HR
Knowledge Process Outsourcing (HR – KPO), Payroll Business
Process Outsourcing, Special Projects (HR Audit / Benchmarking,
Performance Management, Pre and Post Retirement Programs and
etc.
http://www.sme.com.ph/member-suppliers/services/suppliers.php?
page=huris
In the article created by Dr. Divina M. Edralin, a full-time professor
on Business Management Department of De La Salle University
about issues in human resource management and approaches to
their solution, she mentioned that it is an acceptable fact that the
success of an enterprise is tied to the competence and
effectiveness of the people who work in and with the organization.
And therefore, if the people are genuinely to be a sustainable
source of distinctive competitive advantage of Philippine companies
in the next millennium, the underlying principles that management
must adhere to in the strategic planning and implementation of
approaches in resolving issues in human resources management
are: (1) Respect for the rights and dignity of workers, (2) Concern
for the general welfare and security or workers; and (3)
Recognizing that people are valued stakeholders of the enterprise.
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There is no “one best” approach for any given industry or
firm. The greatest challenge for businesspeople is to understand
the, and use a nexus of, diversified approaches which are laborfriendly and concomitantly focused on achieving organizational
goals through technological (production processed), structural
(roles and relationships), managerial (administrative actions), and
people (human resources can be educated, trained, coached, and
counseled) transformation of renewal.
This is the Renewal-Driven HRM paradigm shift that Filipino
managers/owners can seriously consider to address core issues
and problems in human resources management that have impeded
Philippine industries and deterred them from pursuing appropriate
and doable approaches that will enable such firms to be globally
competitive at the turn of the millennium.
http://www.dlsu.edu.ph/research/centers/cberd/pdf/business/vol4/vo
l4no1.pdf
The Government Human Resource Information System
(GHRIS) project is envisioned to provide the Philippine National
Government with a comprehensive human resource management
information system for all of its 1.7M national government
employees. The GHRIS application and data is to be centralized
and is accessed through a friendly and intuitive interface via a
computer web browser. The GHRIS application should have the
Restaurant Management System – Human Resource Management System
Page 13
capability to be accessed at over 1,500 various locations within the
Philippines, with some locations having limited electrical and
networking capability.
The system should be able to initially support 10,000
operational users with the ability to expand to cover 1.7M users
should the Employee – Self Service be activated. Access to the
system should be controlled and restricted to individual accounts
using unique personal login information. The ability to define levels
of user access rights within the system and other strong security
features and measures are required functions.
In its finalized implementation, the GHRIS system should
handle the complete lifecycle of all national government employees
including their initial entry into service, to their retirement or
separation which includes the following HR actions such as
recruitment
and
hiring,
promotions,
retirements,
awards,
evaluations, casualty operations, calculations for re-contracting
requirements, retention, assignments, training, schooling, finance,
absences, personnel assigned equipment and other associated
personnel actions specific to the different agencies and common
within the government. The system should also support and
streamline lengthy approval processes by providing an efficient and
timely method of approving and tracking actions.
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The human resource management information system is for
6 pilot government agencies namely the Commission on Audit
(COA), The Department of Budget and Management (DBM), The
Department of Finance (DOF), The Bureau of Treasury (BTr), the
Department of Science and Technology Advanced Science and
Technology Institute (DOST-ASTI) and the Department of Science
and Technology National Computer Center (DOST-NCC).
The GHRIS Software Application
A Commercial Off The Shelf (COTS) Software that fits
the specifications and requirements of the project as stated
inclusive of licenses and other associated costs such as
installation, customization and some training and orientation
for the six pilot agencies named above as well as the
different
environments
Production,
Production
(Development,
and
Testing,
Disaster
Pre-
Recovery
environments) for the Application Software.
The GHRIS Database Infrastructure
Software and related licenses for the different
environments
(Development,
Testing,
Pre-Production,
Production and Disaster Recovery environments) for the
Database software.
Consulting Services
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
Consulting and Technical Services as deemed
needed in order to analyze, develop and implement
the GHRIS Project

Technical Services in order to install and configure
the
GHRIS
Software
to
fit
specifications
and
to
and
requirements.

Technical
Services
in
order
configure
customize the Hardware and Software of both the
Application and Database Portion

Training
http://www.asti.dost.gov.ph/attachments/article/705/Terms%20of%2
0Reference%20-%20cmm%2012-31-2012-v9.pdf
2.3.
Synthesis and Relevance to the Study (Matrix – Comparative
Analysis)
The above related studies are all significant to the
proponents’ recent project development. The essential researched
related studies above and the proponents’ project focused on
Human Resource Management and its divergent fields. Both
discussed the different parts or key areas of human resource as
part of the systematic process of managing employees.
Foreign and local related studies stated common human
resource management key areas or process routines likewise to the
proponents’ studies as part of systematic planning and process in
Restaurant Management System – Human Resource Management System
Page 16
managing employees. The key areas or process routines are
Recruitment and Selection of suitable applicants, Retention,
Evaluation and Probation for appraisals, Monitoring of employees’
profile and 201 Files, etc. The most common focus of all studies is
the employees.
One related study stated the acceptable fact that employees
are considered as an asset of one’s enterprise and one of the
reasons of its success. So the management must adhere and
improve the strategic planning and implementation approach when
it comes to human resource management. This related study also
shows the recognition of the workers and valued as the
stakeholders of the enterprise.
Another
related
study
shows
that
human
resource
management is now joining and complementing the field of
information technology, even in private enterprise or in government
sectors and agencies. The future of Human Resource Management
is now seen as systematic, integrated, computerized and more
innovative. Most of the private enterprise and government agencies
are now implementing Human Resource Management System that
can process different key areas or procedures in a span of short
range of time. They can handle multitasking and increased level of
productivity by acquiring the new process.
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There are local related studies featured the system or
application that can managed human resource and even payroll.
This is the goal of the proponents to develop a system which can
fulfill human resource management tasks and processes that
generically
suites
to
different
enterprises.
The
proponents
researched in local and foreign related studies shows that the
Human Resource Management now deals with the technology to
reduce cost of processes, ease the process, gain productivity and
be multitasking and to be globally competitive and successful on
the field they concerned with.
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