Managing People In Hospitality Organisation

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Bluebird cafe on the King's Road is a part of D&D hotels. It is the most busy place in kings road .it has a busy restaurant (opens from 12pm to 2am) all seven days, a cafe (opens for breakfast from8am to 10 pm), bar, bakery (opens from 7am to 6pm), food store, four private dining rooms (for private parties, conferences, marriages etc.) and a wine cellar. The restaurant can accommodate up to 250 guests for a seated dinner or up to 650 guests for a standing cocktails & canapés reception. The cafe serves British Cuisine with all expertise.

Hr problem Blue Bird is facing

The major problem blue bird cafe is facing now a days is the Employee turnover or (attrition ratio). The human resource experts of the cafe spend thousands of pounds every year for each new employee they recruit and train and a seasoned worker who replace that employee.

The major reason for employee turnover in my point of view is as follows:-

Job dis-satisfaction:-employee in the hotel industry is not satisfied with the kind of work they perform as it is a type of same routine and repeat work. one of the biggest reason of their dis-satisfaction is they are not provided proper training for the kind of work they are doing.

Low wage rate:- hotel industry is the most busiest industry and people are working for long and sometimes without break, but what they get at the end of month is not comparatively enough for the amount of hard work they put in the job. low wage rate makes employee unhappy and force them to move to some other jobs.

Long working hours:- with the number of long hours, employee tend to stop enjoying their personal as well as social life. They left with work all the time at the end of the month. after short span of time they stop enjoying work and rather feel it like a burden, so this cause dis-satisfaction and makes employee de-motivated.

Work without recognisation,reward and appreciation:- even after performing hard and giving so much of profit to the hotel organisation, mostly employee don't get any reorganisation in terms of money,bonus,promotion etc.this can make any employee de-motivated.

The above reasons can cause a sense of frustration among employees. People are less willing to make any compromise when it comes to long working hours. That is the main reason that 80-90% of hospitality staff moves in other service sectors where they get recognisation if performs well.

Two major causes for this kind of problem can be the recruitment procedure and the way they are treated in the hotel industry(lack of appreciation, teamwork) and at the same time company doesn't care about employees.


Employee turnover is the biggest problem faced by hotel industry as on an average the rate of turnover is approx 80-90% an year. The industry spends thousands of pounds on new employee training and on seasonal worker they hire for shorter duration when the employee leave.

Before starting with the solution we should lay emphasis on the root cause of this problem. The problem starts with recruitment system of hr department. To overcome this following should be kept in mind:-

The position they are looking for

Nature of work(duties and responsibility)

Qualities required for that particular kind of position.

To hire the perfectly suitable employee the HR department should have:-

Behaviour based interviews

Ability tests

Motivational fit inventories

.they should hire only the perfectly suitable employee to perform a set kind of work.


The root cause of employee turn-over in blue-bird cafe is employee dis-satisfaction and highly de-motivated, in my plan would like to introduce different theories of motivation to overcome this problem.


"Motivation is that which energises, directs and sustains behaviour."(Steers&porter1979).

1. Maslow's hierarchy of needs:-

This theory mainly emphasis on the human needs i.e. physiological needs, safety/security needs, social, esteem and self-actualisation.

As per this theory, if you want to motivate someone, you need to understand on 'what level the person is' and how to satisfy their needs above that level.

In my point of view, after applying this theory in my organisation, we will be able to recognise the needs of employee and can easily work out to satisfy their wants and demands from the work-place.

2. Maslow (ps) Alderfer's ERG theory:-

ERG theory mainly related with the Existence, Relatedness and Growth. This theory laid emphasis on that more than one need may be activated at the same time and individuals may progress down the hierarchy. The main emphasis is on the growth and individual personality but at the same time providing basic material for existence.

If this theory is to be applied to reduce the staff turnover than it can mainly reduce the frustration level among employees and can motivate them towards work.

3. Herzberg's motivation-hygiene theory:-

This theory also known as two-factor theory. According to this theory, there are certain factors in all the organisations that can cause satisfaction and dis-satisfaction among employees. These factors are mainly related with the policy of any organisation, working-conditions, pay-packages, status, work-security, personal life as well as relationship with the sub-ordinates. On the other hand, at the same time, this theory motivate employee by recognising their achievement, work, responsibility etc.

In my point of view, this theory mainly emphasis on all the factors that can motivate any employee provided they are given all the above factors. if any organisation can provide all these factors each and every employee will be highly motivated and perform excellent towards their job.

4. Expectancy theory:-

(Vroom, 1964, porter&lawler, 1968, porter&lawler (1969)

Theory of expectancy mainly involves 'what is expected from an employee', 'how they can reach up to that level'. to reach up to the highest level of expectancy the organisation should provide all the new recruits as well the old employees proper training,facilities,timely performance appraisals etc

After applying this theory in my organisation, the hr department will be able to recruits the best suitable candidate for a particular kind of work which in turns will slow down the rate of employee the same time, employees can be motivated by giving proper training and timely appraisals. After getting appraisals, employees knows where they stand and to which level they have to reach. these factors keeps them motivated towards good performance which in turns is beneficial for the organisation.

5. Equity theory(Adams,1963):-

As per theory of equity by Adam, all human beings should be treated equally in terms of hours of work, company benefits, wages, environments etc.if people feel that they are not treated equally they either perform poor in terms of quality and quantity which makes them highly demotivated


I would like to apply this theory in my organisation and after applying this, people will be treated equally in all the above terms and when they are rewarded higher, they get motivated to work harder.

6. Goal-setting theory(locke,1968,locke&latham,1990):-

Theory of goal-setting by locke&latham clearly defines all the objectives set by an organisation, achievable challenges, commitment towards goal, timely and accurate feedback of employees.

After applying goal-setting theory, all the employees will have a set goal and time to achieve those standards set by the organisation,so,this will keep them motivated towards work as at the end they knows they will be rewarded as per their work performance. This theory can be a biggest tool in reducing the employee turn-over.

7.The carrot and stick approach(Jeremy Bentham's):-

According to carrot and stick theory, organisation should use this theory to motivate people. Here carrot mainly deals with all the money issues for example bonus, increment these factors can motivate people towards work. At the same time stick deals with all the fear, a person can face in the organisation for example loosing of job, less income, bonus reduction, no promotion etc.

Here both can be treated as a tool of motivation factor, as carrot is mainly money, so employee will perform best to get the more money and stick is all fear, so fear of loosing job will automatically motivate them to perform best. So both are inter-related and by using this strategy in my organisation, everybody will put their best foot forward and in turns organisation will get the best self-motivated employees.

8. Contribution of Elton Mayo:-

Elton mayo work known as 'HAWTHORNE EXPERIMENTS'. According to him, people get motivated not only with pay and working condition but with psychological and social factors. they get motivated with the sense of belongings and recognition and at the same time attitude towards work is strongly influenced by group.

This theory means, employee should be given a sense of belongings by organisation and they should feel at home, only than they can be motivated towards work. they should be consulted if facing any kind of problem at their work place.

Contribution of Elton Mayo towards my organisation problem can help in providing a friendly, understanding work environment so, that employee can enjoy their work like home and this can help in reducing staff turn-over rate.

9. McGregors theory of 'x' & 'y':-

According to this theory there are two types of people in any organisation.

'x'people:- average people who avoid work,unambitious,wants security without performing at all, these kind of people are moreover authoritarian management style and they are always forced to work.

'y'people:- these kinds of people are self-controlled, self-directed, committed towards work, responsible, high degree of imagination, creative and highly intellectuals.

If i would like to apply this theory of motivation,so,the main emphasis should be laid on the 'x'people and focus will be to understand their mental processes which transform the motive force into particular pattern of behaviour. For example-introducing processes and goals by which workers are motivated.

Analysis of motivation theories with Blue-Bird cafe problem:-

After applying all the motivational theories, the HR department can easily solve the problem of increasing employee turn-over ratio. With all these theories, HR department can try and motivate their employees to work with all the dedications and can praise their employees timely by using various methods for example (promotion, bonus, rewards).

The HR department, at the same time should understand their employee problems and should be concern with their health and safety at the same time. The department should reach to the root-cause of problems, and try to solve their employee problems. After applying all the theoies,Blue Bird cafe will solve their problem and employee will start taking interest in their work and this inturn,will be beneficial for the organisation.