The effects of the Disability Discrimination Act
This law was introduced on 17th May, 1995 & it was amended on 2005. According to this law, it is illegal to give first preference to other staff members compare to disabled person. That means to give less favourability to disabled person in job opportunities.
An employer needs to do some kind of adjustments in the environment of work for the disabled people, so disabled employees can also work effectively. In this way an organisation can provide equal opportunities for the disabled people.
It can affect to the productivity of the organisation. The work can be distributed to the employees and any type of department can work without any problems. If the disabled people work in the busy kitchen that will be a motivating task for the new and also the other staff who are working in the kitchen.
It can affect on the budget of the organisation because organisation needs to provide facilities to the disabled people. In Kensington Close hotel the departments have provided the trolleys and also the working tables for the disabled people kitchen an organisation had provide special trolleys and working tables for the disable person.
The image of the organisation will increase by providing equal opportunities for the disabled people.
To provide the facilities to physically challenged people. For e.g. In Kensington close hotel, management provides hearing machines, wheel chairs, toilet facilities to staff.
In the job description an employer must provide right options for the disabled people to ensure the equal opportunities.
To give motivation about positive attitude among the disable people. (opsi,2005)
Health & Safety at work Act:
This legislation was introduced on 1974. The new update of this law came on June 2009. According to this law an employers must take care of their employees under the health and safety work ac t. This law also states that the organisation or an employer should provide the correct type of the equipments for the employees to work and there should be no harm for the employees. An employer must provide safe environment of work. It was amended on 22th of June 2005.According to this act for every person (with fix duration of work or temporary employment bases) in the organisation, management needs to provide health, safety & welfare at work.( cipd,2009) ( oireachtas,2005)
He will work more effectively to achieve the goals of the organisation.
The standard of the organisation will increase. Because to maintain the health and safety standard, an organisation will always show the record of health & safety to EHO.
An organisation needs to provide health and safety training to the employees. The Kensington Close hotel always has fire safety training after every 3 months for each employee.
An organisation needs to take care about the machineries, are they safe or not to perform the work.
Needs to improve the existing safety arrangement of the organisation to maintain the safety standard.
To establish the Health and safety committee to improve the health and safety standard.
The Kensington Close Hotel providing sufficient first aid.
(Cipd, 2009) (Booth, 2002, p.191, 192)
Codes of Practices: Disciplinary Procedure :
All the disciplinary procedures are come under employment act 2002.Which came in to force in 2003.If the employer is not satisfy in the work, according to employees performance, behave, bad attitude towards work, he have authority to put appropriate disciplinary procedure under the law. Apart from the disciplinary procedure, an employee also complains any action of employer (Paypershop, 2009).
According to this act, it will be mandatory to observe discipline.
Maintain the standard of the organisation.
Employee may face the consequences if they fail to follow the discipline.
Employer needs to do proper investigation against the employee if he fails to follow the law.
An organisation should understand the work environment & set the disciplinary rules accordingly.
Employees should be made aware of various disciplinary rules & regulations by the employers.
Employers should give the handbook about disciplinary rules & regulations to each & every employee.
Standard Disciplinary Procedure:
Stage 1- Recorded Verbal Warning
Stage 2- First Written Warning
Stage 3- Final Written Warning
Stage 4- Dismissal
Disciplinary procedure must be carried out by Human Resource Manager, Executive committee member or general manager.
National Minimum Wage Act:
This law is approved by the government in April 1999 for all workers who work in the U.K. According to this law, if the employer is paying less than the minimum wage and fail to follow the law, this act will take disciplinary action against them. It was amended in 2010.From Oct 2010 the rate will increase from,
£5.80 to £5.93 an hour for workers aged 21 & over.
£4.83 to £4.92 an hour for workers aged 18 to 22.
£3.57 to £4.92 an hour for workers aged 16 to 17.
£2.50 per hour for apprentices.
Management needs to increase the per hour pay of each employee if he is adult, or 18-22 year old according to the law.
The Kensington close hotel needs to do the proper staffing to look after the budget.
Employee feels secure and he can work more effectively because the force of government over the employers to follow the law.
Employees should know what the latest updates of the law are; an organisation needs to put the chart regarding latest update of the law in the canteen area, departmental office, notice boards, etc.
Hotel Management needs to make departmental meeting, so they can give the information about the law.
Making of pamphlets and distribute among the employees.
(Booth, 2002, p.132)
Overview of the current manpower statistical trends in the Hospitality Market in UK:
Definition of manpower:
The total number of all available workers in an organisation is known as the manpower of the organisation; the workforce. (All words, 2010)
Every organisation requires manpower to perform the work. The hospitality, travel & tourism, leisure sector (HLTT) plays essential part in the UKs economy. This sector is also called HLTT sector. This sector has gained a persistent growth from last 30 years and shares nearly 5% chunk in UK’s economic output. The research says two million people are employed by HLTT sector & it says that one out of fourteen employee’s one employee is working in HLTT sector.
There has been significant changes occurred in last five years. The workforce of restaurant industry has been increased by 9%, and the gambling industry workforce has been increased by 16%. But the industries which faces declined with their workforce are pub (9%), bar & night club (6%), and the 3% of the employees are employed by the non hospitality services. The more of the workforce is declined of pubs, bars & nightclubs. It was declined by 19% in the year 2007 - 2008. The manpower of bar staff has been declined by 23% in the year of 2008. The travel sector faces 30% of heavy decline from last three years but it recovering slowly.
But the sectors like hospitals, IT industries, etc. which provides hospitality services, their manpower rate is increased by 27% from last five years. And the percentage rate of workforce of the people who are working as a hotel or accommodation managers is increased by 13%. The HLTT sector depends more on young people (age between 16 & 19) compare to the people who are aged over 60s. The 16% of manpower who work in this sector are the young people & 5% of manpower who work in this sector is over 60s. In a senior management position, 59% of manpower is female workers. But the manpower of female workers has been declined to 46% in the year 2007/08 compare to 49% in the year 2004/05. In HLTT sector 55% of women are working on part time bases compare to 31% of male part timers. The sector occupies 2% board directors & 6% of middle line managers, which are from BAME (Black & Minority Ethnic) groups.
In Feb 2008, 47,875 people were looking for the job in HLTT sector which increased to 75,345 in Feb 09. The 26% of HLTT organisations stopped their recruitment from Feb 08 till March 09 & 24% have stopped their expansion of workforce. The use of temporary employees has been gone down by 23%. The temporary employees have been reduced to 30% & 29% in hotels, restaurant organisations & pubs, bars respectively. The HLTT sector has highest labour turnover compared to the other sectors in the economy of UK. The employers in this sector spend a lot of money for the recruitment & development of the new staff in the year 08/09. Due to the lack of skills, it is very difficult to employers to recruit the chefs in the organisation. ( people1st, 2009)
Employment & unemployment rate:
12th May 2010- The unemployment rate in UK arise 8.0% which is up by 0.2%. According to labour force survey, 28.83 million people were work in between January to March. The employment decreased by 76,000 & 341,000 from last year. According to ILO unemployment is up by 53,000 which is 2.50 million (8.0%) in between Jan to March. Working age employment rate is 72% down by 0.3% which was 1.5% last year. This is the lowest since Sep 1996. (Hrmguide, 2010).
Impacts of recession:
Due to the recession in 2008, the overall manpower of the sector has been reduced by 1%. As a result there are minimum job vacancies in the sector but the people who are looking for the jobs are comparatively more. Employers thus have choice to recruit employees due to minimum vacancies & maximum applicants. 53% organisations of the sector say that skills and qualifications are very important while recruiting the employees for the positions. The employers are looking for the cost cutting because of the recession. It helps them to hold the skilled staff & avoid the redundant recruiting. ( people1st, 2009)
Employees are the heart of the business. They are responsible to achieve the goals of the organisation. To hold the skilled staff in the organisation for a longer period, an effective management is necessary.
Hospitality sector is a big sector, which includes hotels, motels, pubs, bars, travel & tourism and other hospitality services, etc. Plenty of people are working in this sector. Therefore sector has a sky-scraping labour demand. So to manage these people & hold on to the business, an effective manpower planning is essential.
I have selected fast food sector. It is a roaring sector in the hospitality. Fast food sector contains numerous brand names. For example burger king, KFC, etc. These are all brand names which come in the fast food sector. Everyone knows that the McDonald’s is the chief fast food brand in all over the world. I would like to support my assignment with some research on McDonald’s fast food chain restaurants.
McDonald’s has 63% of company owned restaurants & rest 37% managed under franchise based. In overall UK, there are 1,250 McDonald’s outlets. (News BBC, 2006)
The total 47,000 number of employees working without includes franchisees employees.
57% are male employees
43% are female employees.
Around 90% employees are working 35 hours per week or less.
Around two thirds of casual employees, age between 16 & 20 years working in the Macdonald’s. ( bized,2010)
A strategy for the identification, acquisition, effective utilisation, improvement and retention of an organisation’s human resources is appropriate to its needs. Manpower planning is helpful for to make sure suitable level of staff in the organisation, and which is helpful for to developing, observing the effectiveness of personnel policies to gratify the business skills. (Roberts, 1995, p.61).
Importance of Manpower Planning:
The hospitality industry was developed in 20th century; manpower planning plays an essential part in hospitality organisations. For an every organisation sufficient staffing is the very important task. If the staffing is not sufficient, organisation fails to mange people and it will have an effect on the organisation. If any organisation has more staff compare to work, it will give wastage of money. But less staff and more work gives work pressure. Therefore to achieve the goals of the organisations, it requires staffing according to volume of work & also right amount of work for right person.
Benefits of the Manpower Planning:
It reduces the staffing costs of the organisation.
It helps to preparing suitable employment policies.
It gives smooth process of working even after the growth of the business.
Beneficial for the employees to build up their carrier. ( buzzle,2010)
Current Labour Market Trends in Supply of the labour. Current labour market is linked to those who are employed & unemployed.
Some features in supply of labour:
Employees having different age groups, they are having talents to perform the work.
It means that the people who are employed & those who are seeking for the job.
Current Labour Market Trends in UK:
According to BBC News, fast food group McDonalds will spend 2.1 billion dollars to open 1000 new outlets & upgrades the existing outlets. (BBC News, 2010). This will produce more jobs in UK. This will create new positions for the managers, staff members and also generate employment in part time or full time bases.
A scan of external macro-environment in which the firm operates can be expressed in terms of the following factors:
Political factors and effect on the organisation:
The national minimum wage law stated that, every person who works in the UK must get minimum wages according to the law.
System of tax:
The responsibility of the employer is to deduct some amount of the employee for the national insurance and for the development of the country according to the rules.
An organisation needs to take care of the environment by keeping the pollution level safe (air & water pollution) & proper disposal of wastage.
Due to the current visa procedure of the UK, an employee from the other countries gets affected. It is difficult to hire the skilled employee from other countries for the organisation.
Economical Factors and effect on the organisation:
When there is change of one currency rate into other currency rate of the products, it is known as the trade rate. The trade rate helps the organisation to gain the profit.
Labour cost consists of the wages, benefits given to the employees. For example: labour cost includes insurance for the employee.
Due to the recession in UK, most of the employees lose their jobs.
Social factors and effect on the organisation:
To fulfil the needs of the health conscious people, organisations are looking forward to produce healthy food. For e.g.; low cholesterol food.
The living standard of the people is changing, therefore their demands are also high. So to meet the demands of the people, organisations put extra efforts to meet the demand and satisfaction.
Now a day’s organisations are producing health conscious food and people are now attracted towards the vegetarian food therefore to meet the customer demand, organisations has started to introduce the vegetarian foods.
Technological factors and effect on the organisation:
People demands has been increased, they want their service fast. So McDonalds has started to use the technology like the outlets takes the orders online.
McDonalds needs to give training to the employees about how to handle the new systems. ( quickmba, 2010).
Swot analysis is the strength, weakness, opportunities and threats which are helpful for the organisation for the success.
McDonalds is the leading fast food sector which has good reputation. By using the health and safety law, McDonalds has maintained their high hygiene standard & serve good quality food
McDonalds buys high quality of raw material, produce the food according to the standard. Therefore the organisation spend huge amount. They spend lots of money on the advertisements to introduce new menus.
New technology can help McDonalds to give quick service rather than standing in the lines. Olympics can give opportunity to earn high profit.
According to the changing demand of the customers & competition in the market, McDonalds needs to keep a turnover in their products with the new ones.(quickmba, 2010)
Labour Turnover refers to the percentage of employee detained by the average number of employed in the firm.
Number of employee detained x100= Turnover rate
Average no. Employed
Some reasons of Labour Turnover:
Employees getting promotion to another organisation, employees sometime dissatisfies with the organisation or job, in the induction process fail to build true working relationship with employees, poor or ineffective management of the organisation. Organisation needs to follow health and safety procedure to create the working environment safe the employees. But because of the poor standard of health and safety occurs employee resignation.
There are also some reasons that cause labour turnover they are stress at work, family problems, and lack of training opportunities, harassment & bullying at work. Because of the above stated reasons, there is a bad effect on staff turnover of the organisation. (Roberts, 1995, p.80, 82).
The staff turnover can be reduce by taking under consideration the following points:
Promotions; By checking the performance of the employee, he should be upgraded with promotions which would in turn boosts its confidence & will work even more harder for the organisation which would reduce the staff turnover.
Health & safety: By maintaining high quality standard of safety & health can avoid any major accidents. Employee will fill safe to work with the organisation.
Training: A staff should always be updated with the latest equipments, skills, etc. By sending them to various training programmes, such training programmes would sharpen their skills & would interest them to stay with the organisation for longer period of time.
Staff Rotas: The managers of each department should plan the rota in such a way that the workload is distributed evenly within the employees of the department which would result in less stress of each individual during work & will increase the performance of the employee, benefiting the organisation.
The above investigation on the manpower planning, visibly states to run a successful organisation there is a need of efficient manpower planning. The organisation needs to keep itself stable and keep the balance of workforce all the time. The corporation should constantly follow all the legislation.
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