Need of Human Resource Management in Service Industries
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Introduction to Human Resource Management
Human resource management in service industries is playing a vital role in organizations as well as in providing superior quality services to people of society. Through this, more benefits can be generated along with high goodwill in market. HRM involves recruitment and selection of employees and then to train and develop them so as to achieve the target of organization. In order to retain them, firm takes various initiatives as they are the main asset without which to get success is not at all possible (Human Resource Management in the Hospitality Industry, 2012).
Major objective behind this report is to analyze the role and purpose of human resource management of UKCBC Hotel. In Here, there will be a focus on employment relations and legislations in this organization. The affect of employment laws on this firm will also be studied in this. Along with these things, there will be discussion on different selection techniques too (Kusluwan, 2003).
1.2 Role and purpose of HRM with human resource planning
As UKCBC Hotel is going to open a 100 room full service hotel, the foremost role of it is to do the human resource planning as without staff, functioning of it would not be possible. The main responsibility of human resource department is to assess requirement of number of people in staff of UKCBC. Most important purpose of HRM in this hotel is to do recruitment and selection for the needed employees in order to accomplish tasks. After analyzing that, recruitment program has to be organized for having suitable people in hotel. Then, by the selection process, right people for right designation have been selected. In these proper strategies has to be made so as to recruit people on some specified basis like in terms of their specific skills and qualifications. For particular positions, right candidate will be selected who will be best suited with that designation (Hospitality Human Resource Management, 2014).
This is done in order to get the qualified and hardworking workforce in organization so as to make it function in a proper way in order to achieve the target within stipulated time period. In this order, training and development programs have to be organized so as to make people able to perform their tasks. By analyzing the required skills in employees, it is being provided to them for the purpose of increasing their skills and knowledge. Human resource management of this firm is to provide directions to the people of this organization (Alexander, 2007). To motivate and encourage employees and then to monitor their performance is also one of the main tasks in this hotel. UKCBC needs to make some incentive plans also for increasing the performance level of staff members so that result can be achieved in an efficient way. Various reward and incentive schemes are made for encouraging them to perform at their highest potential. These rewards can be in form of increase in wages and salaries of people working in this hotel. To retain them in a long duration is also one of the responsibilities of HRM as their skills and knowledge will also be there in organization through this. It would directly impact the quality of output as all these steps leads to satisfaction of employees and a satisfy individual can work more efficiently than that of a dissatisfied person (Turner, 2005). Maintaining strong relationships with staff members is required in this as for having results as per desired.
1.2 Analyzing the demand and supply of people through human resources plan
In UKCBC hotel, initially a human resource plan has to be made in order to analyze the actual demand of people in organization. This plan involves the assessment current manpower which is present in hotel, them forecasting the demand for human resources is done. In this hotel, it is necessary to forecast the demand of human resources as it is a new organization which is going to be opened. So for assessing the numbers of employees which are required in it are analyzed and then sources of supply of human resources are being projected too (Human Resource Management in the Hospitality Industry, 2012). There are two ways from which people can be taken. They are internal and external sources. As the firm is new, to have people internally is not possible. So, from other external sources like colleges and different institutions or from other organizations also, people can be selected by paying them higher packages (Jackson and Malthis, 2010). There is a particular criterion according to which individuals are being selected and it is based on their skill levels, budget and organizational structure. Some internal factors on which decision of hiring people is based are like culture which hotel follows and the funds that are available with it (Duggan, 2014). So people who can adopt the culture will be recruited and they get salary in accordance with the ability of organization to pay them.
There are some factors which influences the human resource planning in UKCBC hotel. They are the employment environment factors which changes with time on a regular basis. Competition level, the offered compensation, legislation of the country and employee relations comes under this. As the level of competition is very high in hotel industry, firm can face some problem in recruiting people as a lot of options are there for them. In this case, compensation which they are offered with by UKCBC hotel plays an important role in it (Friedman, E., 2013). As the hotel where they get the highest salary, they would choose that. However, just money is not everything that is the reason employee relation is also one the most essential factor on which decision of a person to select an organization depends. To stay within the law is mandatory for any hotel, so along with all these factors, government regulations of an economy is also equally important which needs to considered at the time of planning and hiring human resources (Zainal, and et.al, 2012).
Lo 2 Service Industry Business Affected By Employee Relation And Employment Law
2.1 Current state of employment relation in UKCBC hotel
In present scenario, the hospitality industry is seeking to maintain healthy relations with their employees as this sector is labor intensive and required human resources the most. As UKCBC comes in hotel industry, employee relation is essential as they are only one who provide services to customers and face them (Delmotte and Sels, 2008). If relation with them is poor, they would not offer quality services with confidence as they would be satisfied with their work and conditions. It will ultimately have an adverse impact on the working environment of organization which affects all the employees. Without them, to make organization function is not possible (Kusluwan, 2003). So in the same way, in UKCBC hotel also, it is needed to make strong relationship with people so as to make them satisfied and to take the maximum output from their by making them utilize full potential of their efforts (Lucas, 2004).
The working condition in hotels is very different from that of other organizations in this sector like, travel and tourism. Various challenges are there which this industry is facing nowadays. At the time of hiring people, organization need to do accept collective bargaining in between employer and the agent chosen by a group of employees so as to identify the specific terms and conditions of their work and job (Friedman, 2013). It is necessary for UKCBC hotel to provide opportunities to people to participate in any activity of firm and they must be consulted with very important information regarding its business. Some of these are crisis on employment, undeclared work, skill development and health and safety at work (Nickson, 2007). In today’s scene of hotel industry, there is a trend of union organizing across the world. According to the recent style, union politicians are elected and result in pro-union legislation. Many labor peace agreements are also there in it (Panayotopoulou, Vakola and Galanaki, 2007).
2.2 Impact of employment law on HRM
The legislation and legal decisions taken by the UK government highly influences the human resource management of UKCBC hotel. From the initial step, that is to hire employees till to monitor their performance, all activities get influenced. Any issue related to employment and regulations imposed by regulatory bodies has its impact on recruitment, placement and compensation (Alexander, 2007). A very important law among various one is Employment Relations Act 2000 that is generally used in UK, according to which employment relationship problems has to be solved after seeing the facts and information regarding matter and then right decision is made. The UKCBC hotel is also required to make employment contract for employees (Nasurdin and Tan, 2010). In this, they are having their employment conditions, rights and responsibilities and duties from respective employers above them.
Some employment practices are there which this hotel needs to follow and one very common in that is Equality Act 2010 Code of Practice. According to this, UKCBC needs to treat all its employees equally and in a fair manner (Employment Contracts, 2014). Work Health and Safety Codes of Practice 2011 is another one which is also commonly used in hotels and in accordance with it, UKCBC hotel too needs to fulfill it by providing healthy and safe environment to its human resources. There can be some cases of dismissal too in UKCBC hotel like if the employee is not capable for the job or if any misconduct is done by him then the hotel can dismiss him (Turner, 2005). Under employment laws, there is one more very important law exists that is the maternity right. In this, if an employee gives birth or adopts a child under the age of 16, that person will be eligible to get 12 month unpaid leave (Martin and Reddington, 2009). All these laws have a high impact on human resource management of organization.
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3.1 Job description and person specification for a particular job
In current situation of UKCBC hotel, there is vacancy for two selected jobs that are for receptionist and waiter. The required job description and person specification which is needed for them are as follows:
1. Job Description for Hotel Receptionist:
Dealing with booking by phone or e-main
Fulfilling system from arrival to exist of guests
Selecting room and handing keys
Dealing with guest it any special request is there
Handling complaints or problems of them (Jackson and Malthis, 2010)
Work shifts on usual basis including weekends and public holidays
Paid extra if worked on holidays
Often part time and seasonal work will be available
Salary starts from 10,500 to 12,500 pounds a year
Meals and accommodation are provided
Certificate in general hospitality and level 1 award in introduction to hospitality industry with level 2 diploma in Front of House Reception are required to enter (Delmotte and Sels, 2008)
Efficient skills in writing and speaking communication with strong customer service ability are required
Person Specification for Hotel Receptionist:
Must have knowledge in MS Office, especially in MS Word, Excel and Outlook
Earlier familiarity in same role is needed
Knowledge in answering telephone calls
Time management skills are required with efficiency in planning and prioritization
Must know the manner to deal with customers as well as employees (Boella and Turner, 2013)
BehaviorThere must be transparency, integrity and support in work
There must be transparency, integrity and support in work
Flexibility and open mindedness
2. Job Description for Waiter
To process the payments
To greet with customers
To set and clean the tables
To ensure about the satisfaction of guests
To maintain high standards of quality
Responsibility to report restaurant manager in case any problem is there
High school diploma (Lucas, 2004)
Training as a server is required
Annual salary will be around 20,000 pounds
Person Specification of Waiter:
In hospitality industry and restaurant service
Good communication and interpersonal skills
To maintain high standards
To learn and implement new practice when required
At least GCSE grade with C standard in English and Math’s (Head and Lucas, 2004)
Ability to work in team
Strong in English language
Has to be in uniform at the time of work
3.2 Selection process and comparison in between different techniques used for selection
In UKCBC hotel, the employee selection process would play a significant role in the success of its business. At first, it can do preliminary interviews which can be held at the time of recruitments (Martin and Reddington, 2009). In this step, people who are not according to the eligibility which is required in this organization will be eliminated. Then, individuals who would clear the interviews would be given with application forms which they are required to fill with data like age, qualification, reason for leaving the job and previous experience (Human Resource Management in the Hospitality Industry, 2012). In the next stage, written test can be taken from those people in UKCBC hotel. These tests may be like aptitude and intelligence test or personality test etc. Then, people who get selected in it will be referred to one to one interaction in between interviewer and potential candidate. After this, person who gets selected will be required to give medical examination and then after the overall check up, if finds no problem, appointment letter will be given to him. For some particular jobs, telephonic interviews can also be taken (Friedman, 2013).
Various selection techniques are there which are being used by other organizations in service industry in order to select employees. Like in Ritz Carlton, psychometric tests are being used so as to have right candidates in which there is equality and fairness for all the people and they get the same treatment (Delmotte and Sels, 2008). Sometimes, presentations are also being taken from the individuals so as to check their communication and interpersonal skills. Through this, their ability to organize thoughts and ideas into a logical form can also be evaluated. Both these approaches are highly useful in making selection among various people for the specific designations (Kusluwan, 2003).
There are numerous tools and methods for making selection decisions. Hotel Ritz Carlton is using the techniques of psychometric test and presentations which are highly useful in choosing right candidates while, in UKCBC hotel, the aptitude, intelligence and personality tests can be used which are better from methods used in Ritz Carlton hotel (Lucas, 2004). This is because, through these tests, the IQ level of the person along with information about his personality can be gained. Accordingly, it can be decided by the organization that to which position he suits the most (Turner, 2005). The telephonic and face to face interview would also be very beneficial for the firm as in this; the chances to answer in fake manner are not possible.
In this report, it can be concluded that UKCBC hotel is going to open with a great success as its human resource management is very effective. By the different techniques which it uses for recruitment and selection for the right candidates, organization can utilize their skills in providing superior quality services to customers (Duggan, 2014). Various methods are there which can be used to choose right employee with suitable skills and knowledge. This department is responsible for making people put their efforts in order to achieve the target in the most efficient and effective way.
Head, J. and Lucas, R., 2004. Employee relations in the non-union hotel industry: a case of “determined opportunism”?. Personnel Review. 33(6). pp. 693–710.
Lucas, R., 2004. Employment Relations in the Hospitality and Tourism Industries. Psychology Press.
Boella, J. M. and Turner, G. S., 2013. Human Resource Management in the Hospitality Industry: A Guide to Best Practice. Routledge.
Delmotte, J. and Sels, L., 2008. HR outsourcing: threat or opportunity?. Personnel Review. 37(5). pp. 543–563.
Jackson, J. H., and Malthis, R. L., 2010. Human Resource Management. 2nd ed. Cengage Learning.
Martin, G. and Reddington, M., 2009. Reconceptualising absorptive capacity to explain the e-enablement of the HR function (e-HR) in organizations. Employee Relations. 31(5). pp. 515–537.
Nasurdin, A. M. and Tan, C. L., 2010. Human resource management practices and organizational innovation: An empirical study in Malaysia‖. Journal of Applied Business Research. 2(4). pp. 105-115.
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