Importance Of Manpower Planning In Holiday Inn Hotel Commerce Essay


Planning not only includes obtaining right person at right place but it also comprises of motivational programmes such as incentive plans for active participation of employees and certain other schemes and facilities which are integral part of a staffing function. The training and development of workforce that leads to co-operation and better human relations with which the Human Relation can be developed and stabilize through effective control, clear communication and effective supervision. Where there is a maximum utilization of resources there is increase in productivity level and the higher productivity leads result to minimum wastage of time, money and efforts and this is possible through activities such as training and development, remuneration and performance appraisal. It is an important element in the present industrialization where large scale industries requires management of large scale manpower and this could be effectively done with the help of staffing function. Staffing is the key to all managerial functions and Human resources help in implementation of all major four functions which are known as planning, organizing, directing and controlling. It is considered to be a two phase process because it not only analyses the current human resources but it also makes a future forecast and helps to draw employment opportunity. Manpower is advantageous to this hotel in different aspects such as

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Helps in growth and diversification

Shortages and surpluses can be identified so that quick action can be taken

Avoids overstaffing and reduces labour costs as excess staff can be eliminated

Based on manpower planning recruitments and selection process would take place

Helps in stabilizing the organization with the help of manpower management

Helps in identifying the skills of the employees and provide appropriate training to develop and utilize those skills and talent.

Labour Market Strategy in Holiday Inn

Holiday Inn addresses the challenges with respect to what to deliver to stakeholders over a time frame of 5-10 years and lead the thinking of providing information and direction regarding overall labour market dynamics. It has pathways to develop and create sustainable growth and prosperity. For development it requires retention, provincial economic sustainability, attraction of highly skilled and educated labour force. A strong system of communication that brings people together to ensure that public and private institutions spend time and money wisely and the goal of the labour market strategy are like

High level participation in high quality and diversified employment

Highly skilled workforce

High quality and productive workplaces

Incremental change on existing knowledge and skills


B. External factors

The macro-environmental or external factors of a Holiday Inn Hotel can be identified by using PEST analysis which is Political, Economic, Social and Technology.

Political factors:

This factor mainly deals with the government policies and procedures which is worked out through legislation and consists of all legal factors such as

How stable is the political environment?

Government position on market ethics

Government view on culture and religion

Government policy on Economy

Taxation policy on tax rates and incentives

These are some of the political factors that include legal issues, government implementations and define both the formal and informal rules under which the organization must be operated.

Economic factor:

Each and every organization is affected with national and global economic factors such as

Cost of labour

Interest and Inflation rates

Economic growth rates

Business cycle stage (e.g. recession, recovery)

Unemployment rates

Socio-cultural factor:

It includes the cultural and demographic aspects of the external macro environment. The potential of the employees who come from different back grounds and work together in the hotel and customer trends and aspect which the hotel has to consider as per their needs and wants such as

Change in lifestyles

Level of education

Value in society

Demographics (age, sex, race etc.,)

Change in consumer needs and wants

Technological factor:

This factor is the major driver of globalization which reduces the minimum efficient of production levels and some of the technological factors are

Recent technological developments

Rate of technology changes

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Alternative way of providing services

New discoveries

Communication technology

The technology has now become the most important aspect in any hotel as when the customers are mostly delighted and satisfied with service including latest technology that is available in the hotel.

1. Manpower Demand Factors

There are several factors that are considered which created a requirement of manpower in Holiday Inn and are related to economic cycle such as like adaption of new Technology, a new demand either by increasing the productivity or by creating new goods especially in hotel industry. By adopting machines like coffee machines which are used to prepare quick coffee to the customers and ovens, refrigerators, coolers & air conditioners which are used in kitchen for the quality production of food and wifi a free use of internet mobility for the customer and heaters which make the customers warm and comfortable. This adoption has made new kind of requirement of employees who could operate it correctly, quickly and maintain.

The other factor is changing in Skill requirements where staff needs to perform different task by provided training and make them indulge with their job which is necessary to focus or they would lose the interest of doing the same activity and would probably look after the other job by changing the organization which results in labour turnover. By changing in skill requirements it has made the change in manpower planning by recruiting people from different backgrounds and training them in different departments and fields where they can have the overall control in different situations and skills to perform the service effectively and can have job satisfaction.

The Productivity improvements is another factor which has created a demand for manpower in Holiday Inn which measures the productivity based on the number of task performed or the service that is provided to the customers in any given time of period. This measure includes a comparison of the service provided to established company or the customer quality standards. To measure the productivity improvements the time sheet has been maintained to indicate the time taken to complete particular task and look at the minimal customization of the quantity of work, for example the number of calls received per day, the number of queries handled, the number of customer served and many more which will be used as a measure.

The hotel has also considered Expansion plans as the factor of demand for the manpower which needs skilled and efficient labour to give good start by providing effective and quality service. The diversity of hotel management is greater which involves combination of variety skills such as food and beverage, management, housekeeping services, accounting, sales and marketing, front office operation. While expansion the main aim of the organization is to maintain their position, service and quality standards in order to compete in the current market and the utmost importance is given to the employees, the skills and efficiency to achieve the organizational goals.


2. Labour turn over

As per Holiday Inn, the labour turnover determines the rate of recruitment. In the year 2008 the total number of leavers during the year is 120, the total number of employed at the beginning of year is 400 and at the end number of employed is 430. This can be measured as Number of Leavers / Average number of employers Ã- 100 i.e., 120 / 415 Ã- 100 = 29%, during the period there was a major change in employment level as the percentage does not measure the essential relationship between recruitment and labour turnover. There are several categories that cause attrition like death, retirement, migration, occupation mobility. Though there are many ways to find out the labour turnover but stability can be measured by indicating effects of policy change in the external labour market. The percentage of labour turnover can hide areas of stability within the target population. The 100% labour turnover may be produced by 400% labour turnover of a quarter of the target population. The labour turnover is considered based on the different market conditions.

3.Supply and Demand

The supply and demand of the labour can be ensured with the help of the manpower planning that matches the overall business strategy and plan. Demand which is a process of analyzing, reviewing and attempting to achieve the organizational objectives and supply is necessary action taken to ensure that labour is available when ever required. These two factors are similar and go hand to hand when increase both increases and when decrease both decreases. The manager should have to consider both the factors demand and supply where to meet the demand like seasonal times during Christmas and summer holidays where the demand will be too high there should also be sufficient supply of staff. The main source could be the internal employees where the demand can be fulfilled by the human resource by promoting the internal employees in different departments apart some external labour should also be considered like fresh graduates from schools and colleges and when there is decrease in demand during non seasonal periods the internal labour will be too high, so the managers will be reducing the supply measures by retirement, resignations and voluntary scheme of retirements and if again demand increases then same procedure of hiring new employees and promoting internal staff. The manager keeps balance both the demand and supply.

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Ref: Human Resource management: Theory & Practice by John Bratton, Jeffrey Gold

4.Work Arrangements:

Once the employee is been recruited in an organization then it is the responsibility of the employer to look after the working conditions and provide proper basic and safety facilities to the employees. To provide such arrangements there are certain things that needs to be focused like

Work Environment: The employer should consider the proper work environment to the employees where they will be able to work efficiently like Lights, Heaters, Elevators, Proper floor maintenance and emergency exits in case of emergency and proper equipment to work with.

Safety arrangements: The employees should also be taken care with health and safety were they should be provided with insurance facilities and keeping danger equipments away and in restricted areas and see that no employee would get harm while working and also provide first aid facility on every floor.

Rewards and Recognition: In Holiday Inn every year there will be best employee and best organizer will be rewarded apart from that the hotel should also come up with certain different ideas of nominating people which will inspire them to work harder and smarter.

Leave compensation : The Hotel has also provided proper compensation to the employees not only paying overtime allowance but also by approving leaves of employees at constant period which helps in increasing efficiency and motivates employees to work for long term.

Ref: Human resource management in the hospitality & Tourism Industry.


Recruitment and employment: :




Race Relation 1976 act

Sex Discrimination 1986 act

Disability Discrimination 1995 act

Equal pay 1970 act

Directly or indirectly it makes unlawful to discriminate against a person on grounds of ethnic, nationality, origin or colour.

It covers all non contractual areas where it is unlawful to discriminate on the grounds of marital status or sex

The act makes it unlawful if a disabled person is treated as less favorably because of his / her disability.

The right states all the men and women, part time and full timers will be paid equal for doing the similar work.

In organization once the employee is being recruited he / she cannot be distinguished or categorized in different departments based on their nationality, ethnic or colour

In any organization men or women all are equal in the eyes of law and will be violated if the people are categorized in different segments based on their sex or marital status

In organization based on skills and required department any person will not be discriminated based on his/ her disability.

In Holiday Inn this rule is applicable to all the people who work probably same however it does not include basic wages and salaries to the contract employees, overtime, vouchers, sick pay schemes are not being indulged.


Statutory Provisions:

The Holiday Inn has implemented health and safety act for the protection of the employees like




Health and safety act 1974

Management of health and safety at work regulation act 1999

Work Place regulation 1992 act ( Health, safety and welfare)

RIDDOR act 1995

This act secures health, safety and welfare of the employees at work premises

It implies for employers to assess and manage risk to employees and others arising from work activities

It is applicable to the workplace environment and ensures it is safe and suitable to carry the task and doesn’t present risk to employee and others.

It is reporting of injuries, disease and dangerous occurrences regulation

It is applicable to all the people who work in the hotel and provides safe access and maintenance with proper storage and safe handling of dangerous substances and also providing training to staff to ensure the health and safety.

There are proper arrangements being made to ensure the health and safety of the employees at work place by making proper arrangements for emergencies, training to employees and providing adequate information for health surveillance where appropriate

It is to ensure the work place is safe to carry on the task like ventilation, lightning, sanitary conveniences, escalators and moving walkways, work station and seating, temperature in indoor workplaces, drinking water, room dimensions and work space, drinking water and facilities to change clothes, rest and eat meals.

The employers and people in control premises need to report major injuries, dangerous occurrence or any work related deaths to incident contact centre or via online.


Code of Practice:




Employment act 1996

Employment relation 1999 act

Disciplinary policy and practice.

Handling Record Keeping

This law states that an employer cannot dismiss an employee on certain basis.

This law ensures the Disciplinary and grievance, leave for family and domestic reasons, trade unions and other rights of an individual.

This process is instructed on two main areas conduct due to lack in performance and capability which is failure to follow the hotel instruction and procedures.

It is where all the employers have to support and train to carry out disciplinary meetings with their team.

If any employee refuse to prevent the risk of health and safety at work or refuse to return to workplace which is believed to be dangerous workplace for an employee to work then the employer cannot dismiss the employee.

It is a right of an employee to get accompanied and can complaint to employment tribunal which also includes interpretation. This law is also applicable to entitle of leaves during domestic incidents, maternity or parental leave and consequent amendments. The other rights would be like part time work discrimination, code of practice, unfair dismissal, and training to employees.

In certain cases the employer may encounter difficulties with the performance of the employees due to illness or mental stress. At such instances the manager has to show more support and deal it properly if no alternative is left then have to approach formal capability procedure. If the employee is not following the procedures like being late to hotel all the time or fail to follow the management instruction the employer should have to follow ACAS code i.e. first sending warning letter and conducting meeting and appealing.

It is unlawful if any of the employees do leak the confidential data of the customers in the hotel. The employees should have to consider the confidentiality of the data and may be dismissed if violated the rule.






National Minimum wage act 1999

Paid Leaves entitled to the employees

This law is applicable to all the people who work in United Kingdom

It is where the employees will

The legal way of paying the minimum wage to an employee is what called as NMW which an employer should pay at least on hourly basis and then it is calculated on arrears.