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Unit 18 HRM for Service Industries Sample Assignment
Diploma in Business
Unit Number and Title
Unit 18 HRM for Service Industries Sample Assignment
In this report we are going to discuss the concept of human resource management in the hotel industry. In this report we will see that how the human resource plays an important role in the present case study of the UKCBC Hotel which is a newly open hotel. In this report we will discuss the benefits and purpose of the human resource planning and also how the human resource planning is important in deciding the demand and supply in the industry. In this report we will also discuss the concept of the trade unions and their importance and in this report we will also discuss the different employment laws that are there at present in the United Kingdom and how they help the employees and the employers in protecting their rights and making them aware about their duties towards each other. In this report we will also discuss the selection process of different organisations and how they can help the UKCBC hotel in recruiting hotel staffs like the receptionist and the waiter. In this report we will try to bring out the basic scope and purpose of the concept of human resource management. This report emphasis on the need of the human resource management so that the recruitment process id beneficial both for the employees and the employer and there is no problem in relations to the legality of the recruitment process and the dismissal process of the employees of the hotel industry.
1.1 Analyse the role and purpose of the HRM in UKCBC Hotel industry.
Human resource planning and management play a very crucial role in any organisation. Human resource management is the field that is involved in every aspect related to the people working in an organisation, ranging from the clerk to the CEO and this is involved from the recruitment till the retirement or termination of the employment contract.
Human resource planning has certain roles in UKCBC Hotel and they are as below:
- The human resource planning is responsible for the recruitment of the people of UKCBC hotel.
- The human resource planning checks the talents and qualifications of the people who are to be recruited in UKCBC Hotel.
- This also forecasts or calculates the employment requirement and whether there is a shortage or surplus of the employees in the UKCBC hotel.
- The human resource planning is also involved in giving trainings to the new employees that are recruited in UKCBC hotel to increase their skills and knowledge.
- The human resource planning is involved in looking after the future requirements and it employs or deploys the employee according to the needs in the particular department of UKCBC hotel (WHAT IS HUMAN RESOURCE, (n.d.)).
There are many benefits and purposes of the Human resource planning and they are as following:
- To keep in check with the organisation’s needs: human resource planning and management will help the UKCBC hotel in checking the hotel requirements with changing times.
- To balance the sudden change in the industry: human resource management and planning will help UKCBC if there is some sudden need to increase the employees due to expansion of the hotel or even when the employees are required to be terminated because the hotel is downsizing its business.
- To check the labour market: human resource management also helps in checking the labour market and it tries to forecast how the labour market in the hotel industry is going to be in the near future whether there will be a surplus of labour or shortage of the labour (WHAT IS HUMAN RESOURCE, (n.d.)).
- To retain the skilled employees: human resource management and planning will also help the UKCBC hotel in retaining its highly efficient employees by giving them recognitions and other benefits (P., Reilly, 1996).
1.2 Justify a human resource plan based on an analysis of supply and demand for the UKCBC Hotel.
There are many theories that are related to the hotel demand and supply and one of the well-known theories is “The Otus Theory” this theory talks about the economy structure and its policies affect the structure of the hotel supply. The human resource planning in any industry is based upon the demand and supply of the labour market and the requirement of the organisation. If in a hotel like UKCBC the demand for the employees is high and the supply form the labour market is less than the human resource management will have to plan to get more and more employees recruited presently so that the future shortage of the labour can be sorted out. Also if the demand of the employees is less in the hotel but then there is a surplus of the labour available then the human resource can work in a manner where they can get cheaper labour with better skills and qualification and in case there is a shortage then the labour cost will be more and the quality will also not be up to the mark (SLATTERY, Paul, 2008).
So we see that the human resource planning has to apply different approaches in different scenarios of demand and supply.
Now we need to discuss the present scenario, and in the present scenario there is an increase in the hotel industry and we can see growth opportunities in the global market as the luxury industry is seeing a boost and the hotel industry is also a part of the luxury industry. Also the UKCBC hotel is also seeing a boost that is why it is opening a 100 room full service hotel in west End in London, where the hotel will also have a coffee shop and a bar for its guests. So we see that there is an increase in the demand of the employees in the new hotel branch.
To understand how the human resource planning and management can work out its requirements according to the demand and supply in the hotel industry, we are going to discuss two hotels recruitment planning where the hotels are located in the same area, which is the United Kingdom, they are as below:
The mercury hotel:This is a branch of the US hotel chain and it is a four star hotel which consists of three hundred rooms. It has employed more than two hundred employees. This hotel has tried to have a balance and flexibility in the employment structure by employing two third of the employees on full time basis and one third of the employees on part time basis. This structure is balanced where the majority of the employees are on permanent basis and a small number of the employees are on temporary basis, this also helps the hotel in busy times when the demand is more and supply is less (WILTON, (n.d.)).
The Luna Hotel: This hotel is the branch of a UK hotel chain and this is also a four star hotel consisting of 201 rooms. In this hotel the hotel has planning in which the permanent employees will be given flexible working hours and most of the employees would be on a temporary and work requirement based. The employees are mostly on hourly based and the number of the staff is not being given the facilities which they used to get. The hotel has plans to work with part timers and temporary staffs majorly. The hotel has used this approach because there is a surplus of employees in the hotel after it had a takeover (WILTON, (n.d.)).
After discussing both the hotel’s human resource planning we see that there are flaws in both the approaches and UKCBC hotel should take an approach which is the balance of both therefore UKCBC Hotel should recruit half of the employees on permanent basis and half of the employees on temporary basis as the hotel is just starting and by having half employees as permanent and half employees as temporary, the hotel will be able to cope with the demand of the industry in the near future and do the further planning accordingly.
2.1 Assess the current state of employment relations in UKCBC Hotel industry.
Contractual regulations, two employment practises, constrains imposed by legislation on termination and main features of the current employment legislation.
Employee relations: is basically a set of rules and regulations by which employees are managed individually and collectively by the organisation in which they are working and this varies from company to company. This concept believes that the employees will be treated well and in a fair manner and the employee will be loyal towards the company and the company would reward the loyalty in the form of job security and other benefits. The employee relations replaced the “industrial relations” concept, to give more importance to the employees specifically as they are the driving force in any industry. In the present times the current state of the employment relations is more employee friendly with different rules and regulations by the government and also with the increase in different schemes by the government, which have been discussed below. (LEAT, Mike, 2008).
There are many factors that affect the employment relations in an organisation like UKCBC Hotel, they have been discussed below:
The role of unionization:
- Every big organisation has a union of the employees; these unions are groups which bring out the demands of the employee to the employer.
- The unions help the employer and employee relationship in a positive way.
- The unions work in the direction where the employee can get higher salaries then they would be getting if the union was not there.
- The unions also help in the flow of better communication between the employer and the employee (BRYSON, Alex, 2005).
- The unions can help UKCBC hotel in solving its employees issues in a fast and simple method and also because a small number of employees are engaged in the union works therefore the overall work of the hotel will also not get affected in case of an issue as the unions work as a link between the employees and the employer.
The collective bargaining power:
- Collective bargaining is the bargaining done on the different aspects related to the employee, which is mostly related to the wages of the employees and working conditions of the employees.
- The collective bargaining is done by the trade unions with the management authorities and basically the human resource management department is involved in this bargaining with the trade unions.
- UKCBC can benefit from this as collective bargaining is the need of the hour and the collective bargaining will also help in increasing the employee’s dedication towards the hotel and as all the employees agree with the decisions of the collective bargaining.
- Collective bargain will also help UKCBC hotel from individual demands from the employees and it will also help in the smooth functioning of the hotel (BRYSON, Alex, 2005).
- Employee participation: the employee participation is one of the important aspects of the employee relations and this participation of the employees plays an important role in the development of the organisation. The employee participation can be seen in two ways which is work participation and the participation in the financial way.
- Work participation: this includes the ownership and control method which gives opportunity to the employee to get involved in the organisation for example the Employee Share Ownership (ESOP), encourages the employee ownership and UKCBC Hotel can also encourage the employee participation by giving development opportunity based on the performance of the employee.
- Financial or economic participation: there are two ways in which economic participation of the employees can be encouraged.
- One way is by giving shares in the companies to the employees.
- The second way is by bringing flexibility in the pay of the employee which is based on different factors likes performance and for example the Profit Related pay (PRP) in which income tax relief was given to some schemes by the UK government.
- UKCBC Hotel can also encourage economic participation of the employees by applying the PRP method (SUMMERS, Juliette and Hyman, jeff, 2005).
2.2 Discuss how employment law affects the management of human resource in UKCBC Hotel business.
There are several employment acts that were made in the United Kingdom to protect the right of the employees, and the human resource management department of the UKCBC Hotel need to keep a check that all the following laws related to the employees are being followed to avoid any kind of issues from the employees. They are as following (BUSINESS CASE STUDIES, 2014):
The Employment Relations Act 1999: This act makes it mandatory for the employer to recognise the trade unions where at least forty percent of the employees are in favour of a trade union and where the fifty percent of the employees are union members then there is automatic recognition (BUSINESS CASE STUDIES, 2014).
The Employment Rights Act 1996: This act provides
- Right to statements of the employment particulars
- Right to itemised pay statement
- Right not to suffer unauthorised deductions
- Right not to suffer detriment
- Right to maternity leave
- Right to paternity leave
- Right to minimum notice
- Right not to be unfairly dismissed (LEGISLATION. GOV. UK, (n.d.))
The Sex Discrimination act 1975: This act provides protection from discrimination on the basis of gender or sex of the person, in the fields of job ads, selection and promotion of the employees.
The Equal Pay Act 1970: This act ensures that the men and the women are paid equally for the equal amount and type of work done by them.
The Race Relations Act 1976: This act protects the employees from discrimination on the basis of their race in employment selections.
The Disability Discrimination Act 1995: This act caters to the need of the special needs of the disabled employees and makes it necessary for the employer to make special arrangement to fulfil the requirements of the disabled employees.
The National Minimum wage act 1998: This act makes it mandatory for the employer to provide the employees with at least the minimum national wage as their salary which keeps on increasing every year.
The working Time Directive 1999: This act provides that employees can work a maximum of forty eight hours per week and they should also be provided with a four week holiday per year (BUSINESS CASE STUDIES, 2014).
The Employment act 2002 (dispute resolution): This act provides that the employer need to follow a three step grievance procedure which includes an initial letter, a face to face meeting and finally a meeting to consider any appeal (social care institute for excellence, (n.d.)).
So we see that the human resource management needs to make its policies according to the requirements of the employment laws so that there are no legal issues later on. The UKCBC hotel should also be careful while dismissing employees and it should provide employees with a written reason for dismissal and also the employees should be given the right to be heard and lastly the employees should be given the opportunity of conflict resolution.
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