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Employee Turnover In Uk Hospitality Industry Tourism Essay

The human resource practices to make effective performance and reduce employee turnover in UK hospitality industry the aim of part fulfilment of my MBA in human resource management. The reason to choose this topic was because the HRM practices play a vital role for effective performance and reduce employee turnover in hospitality industry, especially hotel sector. Every day life keep changing in this modern world and hospitality industry is broad industry with need of huge manpower to run this industry successfully. The evidence of the hospitality industry recorded in the ancient time, when Mary and Joseph arrived in Bethlehem during census “According to the bible Mary and Joseph were refused for accommodation because of no availability of room in inn” from the ancient time people travelled for religion, family, health, immigration, education and recreation.

In the starting of 14th century monasteries were used by pilgrims and traveller, country houses by superior group of society in the UK. In the 16th – 17th century the spa towns such as bath become popular and coaching inns developed for instance guest house were used by salesman, rich rented house to stay in the UK. In 18th century railways have been developed meant more people travelled all around with development of hotels. In starting of 19th century after the industrial revolution in the UK people start getting excellent money, the demand for accommodation and restaurants increased. The first Indian restaurant opens in 1911 and in 1906 free meals started in school meant job opportunities increased for cooks in the country to produce the meals. In 1920 the air travel become more popular over 10,000 passengers travelled over European routes. In 1960-70s the package holydays tour become more popular and first Japanese restaurant opened in the same year. The first McDonalds outlet opened in 1974, with popularity of tourism in UK the boutique hotel were created in 1980. In the modern world the hospitality is just not a simple word, it is one of the huge profit making industry and there is some prominent names globally such as intercontinental, Radisson, Marriot and Hilton etc.

As “United Kingdom” is tourist and world economic destination of the world, more than 565,000 people immigrate to live and work atleast for one year from all over the world in 2005 (UKBA). Hospitality industry is broad and offering more than 75 jobs type in the industry. The hospitality industry just not include only hotels it include 11 other sectors such as events, bars and night clubs, gambling, contract catering, membership clubs, holidays parks, self catering, visitor attraction, tourists services, travel services. Hospitality industry (especially hotels) plays a vital role to boost up UK economy; in some parts of the UK the industry is a main source of income and employment. There are more than 180,000 hospitality and leisure establishments and employ more than 2 million people. The industry’s turnover was £65 billion in 2006, compared to £21 billion in education and £5 billion in agriculture and fishing. In the recent scenario according to the oxford economic report 10 September 2010 the turnover of hospitality industry reached £90 billion and employ 2, 44 million jobs in the UK. If we look at the global prospective of hospitality industry especially in the hotel sector employ approximately 238 million people worldwide, representing 8.4 percent of total global employment.

The hotel business is most profit making as well as labour intensive and quality driven service industry. This is very important for competiveness of hotel the employee should professional and skilful on their working area. Hotel sector need well trained employee to perform their operation smoothly, however human resource management department play a vital role to give time-to-time training according to need of business in the hotel. As hotel sector is most job oriented sector in the hospitality industry, but there is high rate of employee turnover recorded. This is because hotel sector need high scope of young staff, who are working often in hotel sector; part time/temporary, contracted employee from private agency for instance university student in UK. There is some reason of employee turnover in this sector; non competitive pay rate and benefits, unsocial working hour, lack of career development and less opportunities of career growth. The employee turnover cost their company between $US5 and $US15 million.

THE AREA OF RESEARCH

As human resources management plays very important for effectiveness performance of employees in hospitality industry and reduce employee turnover, especially hotel sector the research will conduct on globally recognise hotel companies. These globally recognise hotel operating their operations and generating good profit in United Kingdom (UK) such as Marriott international, intercontinental hotel corporation (IHG), Hilton Hotel Corporation, Radisson, and Grand Hyatt. The area of research is human resource practise such as HRM planning, recruitment and selection procedure, designing training programme, and employee turnover in hotels etc.

WHY THE PLANNING OF RESEARCH WORTH THE EFFORT

In the recent year the hospitality, industry especially hotel sector have been urged to adopt a variety of performance enhance HRM practices to improve their performance in the market (US, department of labour 1993). Such recommendation are unsurprising given that professional and academics have long asserted that the way in which an organisation manage people can manipulate its performance (peters and waterman’s 1982). In the particular employee participation and job redesign, proper employee training and work based incentive directly believe to reduce the employee turnover and improve the organisation performance (pfeffers, 1994).

First, the research of HRM practice in hospitality industry to enhanced the skill of any employee and improve the quality of work of any individual hired from outside as well as improve the skills of current employee. These all practices helps organisation to hire any individual by sophisticated selection procedure, the research indicates that sophisticated selectivity in staffing is positively related to the performance of an organisation (Becker & huselid, 1992: Schmidt, hunter, McKenzie, & Muldrow, 1979).

Second, organisation can improve the quality of employee by conducting proper training and development classes after sophisticated selection procedure, it also help to reduce the employee turnover, however the employee motivation is also very important at the work place for the positive outcomes from the side of employees working in the organisation. The planning of research will focus on the impact of incentive compensation and performance management system on firm performance (Gerhart & Milkovich, 1992). Protecting employee from arbitrary treatment, perhaps via a formal grievances procedure, can also motivate them to work (Ichniowski, 1986; Ichniowski et al, 1994).

Finally, the way work place is structured should directly affect the performance of firm, if the employee is motivated and happy; so they can make firm profitable by giving their best performance at work. The job security is also can be important factor to reduce the employee turnover and enhancing the performance of firm in the market.

GAPS IN THE LITERATURE

This study is concentrated on hospitality industry, especially hotel sector of UK. As the UK hospitality industry is vast, contribute to boost up economy of nation in term employment as compared to other sector such as manufacturing, education and agriculture etc. HRM practices are limited that are common in hospitality industry, especially hotel sector while the contingency to HRM practices – performance. As hospitality industry is vast and revenue generating industry for nation but there is big issue attach to it, the highest employee turnover recorded in this industry; especially hotel sector. The study of HRM practices will focus to fill the gaps in the review of literature and fully concentrated on the relationship between HRM practices and the organisation performance.

LINK BETWEEN PREVIOUS RESEARCHES IN HRM PRACTICES

The meaning full body of previous research in the area of HRM practices is positively link between the impact of HRM practices and performance of firm. The study focus on the impact of a number of HRM practices such as compensation (Gerhart and Trevor, 1996) training (bartel, 1994) performance management system (McDonalds and smith, 1995). Other studies report the positive impact of HRM practices on firm’s performance( Arthur,1994;Bawa,2000;Becker & Huselid,1998a; Berg 1999;berg Appelbaunm,Baileys & Bjorkman & pavalovskaya,2000; Gelade & Ivery, 2003; Guest & Hoque, 1994; Huang, 2000; Huselid, 1995; Huselid & Becker, 1996; Ichniowski et al., 1997; Ichniowski & Shaw, 1999; Jayaram, Droge & Vickery, 1999; Khatri, 2000; Lahteenmaki, Storey & Vanhala, 1998; MacDuffie, 1995;Paul & Anantharaman, 2003; Ramsay, Scholarios & Harley, 2000; Sels, DeWinne,Maes, Faems, DelMotte & Forrier, 2003; Wood & de Menezes, 1998; Wright,

McCormick, Sherman & McMahon, 1999; Youndt, Snell, Dean & Lepak, 1996). The most of the studies in HRM practices and firm performance conducted in the western part of the world such as US organisations and small studies done in the UK and Europe for instance (Guest & Hoque,1994;Hoque, 1999) and Asia such as (huang.2000;huang & Cullen, 2001; Khatri,2000; Mak & Akhtar,2003,Wan, kok & Ong 2002). There in the same study also conducted by (Bawa, 2000) in palm plantation estate of Malaysia.

RELEVANT FRAMEWORK, MODELS AND CONCEPT

As hospitality industry broad and dynamic industry, whole over the world and human resource management practices plays a vital role to make the effective performance and reduce the employee turnover. These are the relevant framework, models and concept;-

Strategic Human resource management model

Recruitment and selection model

Strategic Human resource management model – Strategic HRM management is the process to connect the function with strategic objective of firm in order to improve performance and reduce employee turnover. The SHRM model is broken in to the five activities are following;

1 Mission and goals

2 Environmental analyses

3 Strategic formulations

4 Strategy implementation

5 Strategy evaluations

Mission and Goals

Step 1

Environmental analysis

Step 2

Strategy formulation

Step 3

Strategic implementation

Step 4

Strategic evaluation

Step 5

Fig 1; Strategic management model

Recruitment and selection model – Recruitment practices of deciding what the company need in a candidates and instigating procedure to attract the most appropriates this includes; developing job description and person specification, indentifying the method to reach potential candidate and finding the way to appeal to and attract potential candidates.

C V collection

Requirement requisition

Receptionists yes ------ no

Recruitment rounds Walk-in

Self Assessment Form

TEST

Initiative dept/technical interview

Departmental yes-----no

Heads

HR interview document verification

Offer letter HR

Heads yes -----no

Exit

Fig1.1 Recruitment Flow Chart

Selection – Selection involved choosing the right candidates for the position from those who have been include testing and evaluating the skills and attributes of individual. The selection of the employee in the hotel should done evaluating the proper skills for the job area.

All application received in human resource

Interview set up and candidates interviewed

Selection committee formed and screen application

Selection committee determines the successful candidates

Unsuccessful candidates are informed by the committee chairperson

Reference check is complete on the successful candidates

Job offer made to successful candidates by the hiring manager or delegates

Employment contracted is submitted to human resources for processing

Fig 1.2 Selection Process

Hence the selection process method is differ by company and depends on situation but there is some method in the hospitality industry especially hotel sector;

Interview

Reference

Selection test

Assessment centres

Specific monitoring of selection

INDUSTRY BACKGROUND

The decision to research in hospitality industry, especially hotel sector due to some important reason; firstly hotels in the UK is boost up economy and generate high profit by selling accommodation, food and beverages and employed more than 2 million people.

Secondly, as hospitality industry is vast, the highest employee turnover also recorded especially in hotel sector. There are several studies have been in this sector but no one done studies to reduce the employee turnover in UK hotel sector.

OUTCOMES OF RESEARCH

Based on the research, a final conclusion is made that HRM practices is important to reduce the employee turnover and improve the performance of organisation. It can also be concluded that HRM practices in the hospitality industry improve the employee skills and the individual performance. It has been long and widely asserted that people are the preeminent organisation resource and the key to achieving outstanding performance (peters & Waterman, 1982; preffer, 1994).

RESEARCH AIM

The purpose of the study is to investigate the relationship between HRM practices in odour to reduce employee turnover and performance of hospitality industry in the UK, especially hotel sector.

RESEARCH OBJECTIVE

To identify and examine the extent of HRM practices in UK hospitality industry especially hotel sector.

To investigate the impact of HRM practices on the performance of hospitality industry

To investigate the HRM practise to reduce the employee turnover in the hospitality industry of UK.

RESEARCH QUESTION

What is the extent of HRM practice in UK hospitality industry especially hotel sector?

Do HRM practices affect firm performance and reduce employee turnover?

RESEARCH HYPOTHESIS

Hypothesis is an assumption of theory we need to investigate for research. On the basis of different arguments we explore the following hypothesis.

H1- There will be a connection between HRM practices to reduce employee turnover and performance of hotel employee in hospitality industry.

H2 – There will be connection between the observe pattern on HRM motivation practices and hotel employee performance

RESEARCH METHODOLOGY

Data collection is an complicated part of any research and it provides a substantial base for achieving research objectives and help to prove research hypothesis. The research objectives included in this proposal would be achieved through a mix of both primary and secondary research. Further the methodology would also entail inference of the hypothesis through collected by means of quantitative and qualitative analysis.

The research objectives mentioned above would be achievable as this research used would be Database creation, contact methods, secondary data review and lot of primary data techniques would be employed. Compliance with most of the techniques and their respective result would lead to approximately correct results. The aims, as mentioned above and when achieved would help to throw light on crucial aspects of previous and current HRM practises of UK hospitality industry along with future scope of the human resource department which actually affects the whole organization performance and success . Along with it, the direct personal performances of the employees could be assessed in a more scientific yet sensitive manner. According to our objective set for the study of HRM practices in the hospitality industry especially hotel sector in UK, will apply most important method of research called qualitative and quantitative method of research. The qualitative research method consist of ethnography, participant, observation in-depth structured /semi structured of case studies related to our research area and quantitative method of research consists of different case studies, experiments, surveys, company employee interviews and is based on the analysis of number while being structured.

The choice of methodology deployed in the research paper would entail mainly qualitative type of research. This is justified due to the fact that employee turnover and manpower performance would need to understand the soft skill attributes. Thus qualitative data would reflect how performance and skill retention can be enhanced through effective measures rather than statistics and figures (as in quantitative data) that would be difficult to infer in HR terms. This paper would deal in understanding the current market practises in UK hospitality industry, especially in hotels.

The research would be carried out in UK, mainly in London. It would be conducted mainly in pioneered hotels include Hilton, Radisson, Intercontinental and Marriot etc, considering the economic environment of UK, where affluence in hospitality industry is vast and with labour intensive. These hotels have been chosen due to personal innate knowledge of the industry attained over a period of time along with present interface with such an environment. This would also help to help HR managers deal with attrition and retain organization’s quality skill sets in the form of competent employees of a specific department. It focuses on the issues currently being of high relevance in the HR department. The research would be tried to stand up to validation with the research procedures carried during the tenure of research. The research aim and hypothesis would be seen completely relevant with the methodologies used here.

The research would also propose different techniques to understand employee behaviour which could help reduce employee turnover reduction. The methodologies would also help recognize if the current practises are relevant in the rapidly changing times and if there is some minor improvement in the training and measures could be taken to help boost employee morale in the organization.

There would also be assessment done in the field of human resource both quantitatively and qualitatively, which would ensure a holistic understanding of the situation and thus, better approach to improvise the scenario.

TIMESCALE

For the successful completion of any research, time management is important to finish research on time efficiently. Hence it is crucial as well laid out time plan is chalked out in order to effectively complete this research within the said time frame.

The working on this research will start immediately after submission of this research proposal. The research will be entirely completed within a span of fifteen weeks. The broad underlying activities included within the scope of this research would include literature review, framing of questionnaire, framing of interview, conduction of survey through online questionnaire, conduction of interview that would involve inputs from the above mentioned executives, data interpretation, and finally drafting of the final project report.

Given below is an activity chart that would illustrate the weekly activities to be performed by the researcher.

Fig 1.3 Chart of final dissertation activities

In reference to the above table we see that the first five weeks are for conducting the preliminary ground work of the research that includes the collection and review of literature, framing of questionnaire and interview questions.

The completion of the fifth week falls on the day when this proposal gets a feedback, i.e. 28th March 2011. Once obtaining an approval the questionnaire will be circulated online and the survey will be conducted in weeks 6, 7, 8 and 9. The interviews will also be taken during the 9th and 10th weeks preferably through video conferencing or telephonic conversation. A contingency of one week is kept in both these activities, i.e. survey and interview. There might be sudden delays in these steps since they depend upon availability and commitment of the above mentioned executives. The researcher originally wishes to complete the survey in three weeks and the interview in one week.

Data collection, assortment and interpretation will be done in week 10, with one week’s contingency for inferences to be done. This work would be done quickly with the help of Different software’s.

The final draft is intended to be done in the last four weeks that would also include printing, binding and submission of the draft copy. The entire research is intended to be complete in 15 weeks time and ready for submission by 6th June 2011.

RESOURCES:

The resources to be used for this research would be a mix of both online and offline methods.

ONLINE DATABASES:

EBSCO Host

Pro-Quest

University of Wales- Online Library

ECSSR online portal

Different research paper and articles available online.

OFFLINE DATABASES

Data provided by executives employed in different hotel such as Hilton hotel London, Marriot international, and Ramada plaza London, intercontinental hotel corporation (IHG), Radisson, and Grand Hyatt. Some of the data would be concerning performance of different hotels in the UK and the HRM practices to make performance and reduce employee turnover. As I am working in the Hilton London Metropole Publishing of certain sensitive information will take place upon consultation between hotel officials and the researcher.

Previous research works in HRM practices especially in the hospitality industry especially hotel sector in the UK will also be looked upon for drawing comparisons from a global perspective. These papers will be looked upon at London School of Economics Library and Hammersmith library.

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