This act was introduced on 17th May, 1996 and was recently updated in year 2005. This act has put forth laws favourable to the disabled people. According to this act, a person cannot be refused a job on the basis of his disability and he has equal right to claim the job as any other normal person. This law aims at avoiding discrimination against disabled people so as to provide them with fair opportunities.
a) It creates a good reputation of the organisation in the industry as an employer providing fair job opportunities to the people.
b) It shows that how concerned the employer is over the welfare of its staff at work.
c) Other employees are motivated and inspired by the spirit of the disabled employee.
d) The organisation has to allot a certain budget for providing facilities to disabled people.
e) During peak hours, the disabled employee may find it difficult to cope up with the work and thus may result in less productivity.
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a) Jobs which are suitable for disabled people should be reviewed.
b) Employer should take care of creating favourable working environment for such employees
c) Various facilities such as ease of access to various work areas, wheelchairs for handicapped person, hearing devices for deaf, etc.
Example: Many hotels now ask the candidates if they are disabled and thus, ask for any special arrangements to be made for the candidate. The facilities include arrangements for access, hearing and visual aids, etc. Thus this showcases that hotels take serious note of the disability act. The Dorchester Hotel, London provides such facilities to the disabled people.
2. Health and Safety Offences Act (2009) : (CDM2007, 2008)
Â Â Â Â Â Â Â Â Â Â Â Â Â This act came into force on 16th Jan, 2009. It will help in maintaining the proper standards of health and safety in the organisation. It now provides right to the lower court to impose higher penalties on the organisation who fail to follow or neglect the health and safety measures. The main focus of this act is to curb the unlawful activities of the organisation that put health and safety of the people at stake to gain commercial advantage over competitors.
a) It ensures health, safety and welfare of the staff, customers and various other people in the organisation.
b) It encourages safe handling of appliances, equipments, proper storage methods, etc to avoid any harm to people working or present in the area.
c) It creates a good reputation of the organisation as it takes care of people's health and safety.
d) Organisations which do not follow health and safety regulations can face prosecution.
a) Potential risks in the organisation should be identified and health and safety measures should be taken accordingly.
b) People specialised in health and safety should be appointed to make appropriate arrangements in the organisation.
c) Emergency procedures should be set up and employees should be provided with information and training.
Codes of Practice
3) Disciplinary procedure: (COMPACTLAW, 2007)
Â Â Â Â Â Â Â Â Â Â Â Â Â It is very necessary for the organisation to set standard rules so as to ensure discipline is followed and if one fails to adhere to it, action should be taken by appropriate method. Employment Act 2002 states that employers should provide written information to their employees about the various disciplinary rules. Employees are expected to follow the standards of conduct.
a) This act will force the employees to behave in disciplined manner
b) It will ensure good working environment and improve productivity
c) This act empowers employers to take action against the employee in case of failure to follow discipline.
d) Employer has to follow standard set of procedure while taking disciplinary action against the employee
a) Disciplinary rules should vary depending on the circumstances such as type of work, working conditions and size of establishment.
b) The rules should aim at improving the performance, safety and management of the organisation.
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c) Management should make sure that employees are aware of the rules and understand them.
d) Employees should be provided with copy of rules and should be made aware of consequences in case of breach of discipline.
4) The National Minimum Wage Regulation 1999 (Amendment)2010 : (DIRECT.GOV, 2010)
Â Â Â Â Â Â Â Â Â Â Â Â Â
This act was established with an aim to make sure that employees at least get lowest hourly wage irrespective of their work.Â Organisation should pay their employees the minimum wage, failure to do so will result in prosecution against the organisation. The new amendment coming into force from Oct 2010 will show increased minimum wage.
Â·Â Â Â Â Â Â £5.80 to £5.93 an hour for workers aged 21 and over
Â·Â Â Â Â Â Â £4.83 to £4.92 an hour for workers aged 18 to 22
Â·Â Â Â Â Â Â £3.57 to £4.92 an hour for workers aged 16 to 17
Â·Â Â Â Â Â Â £2.50 per hour for apprentices
a) Organisation will have to pay the employees minimum wage as per the law.
b) Organisation's budget will be affected by the law.
c) It will provide employees a sense of security regarding their wages.
a) Employees should be made aware of the minimum wages.
b) Employers should follow the norms set up by National Minimum Wages Act.
c) Management meetings should be held to provide information on the updated law.
Ref: Unknown 2009; "Disability Discrimination Act (2005) C-13"; Available at: <http://www.opsi.gov.uk/acts/acts2005/ukpga_20050 013_en_1>; Assessed on 15th April,2010
Ref: Unknown 2008; "Health and Safety (Offences) Act 2009; Available at : http://www.cdm2007.org/News/FullInfo.aspx?NewsID=27; Assessed on 19th April,2010
Ref: Unknown; "The Employment Act 2002"; Available at: <http://www.compactlaw.co.uk/free-legal-articles/employment-act-2002.html> ; Assessed on : 20th April,2010
Ref: Unknown 2010; "New £5.93 minimum wage rate from October"; Available at: <http://www.direct.gov.uk/en/Nl1/Newsroom/DG_178175>; Assessed on: 22nd April,2010
Overview of Manpower statistical trends in Hospitality
Manpower is defined as the total supply of persons available and fitted for service. (Meriam-webstar, 2010)
The hospitality and tourism sector plays a crucial role as it has significant share in UK's economy. Approximately 5 % of UK's total economy is contributed by the hospitality and tourism sector. More than two million people are employed in this industry where 1 out of 14 jobs in UK is accounted in hospitality industry.
There has been considerable change in UK's manpower trend in these recent years. Following are some statistics which provides a brief idea about the current trends in manpower.
There have been many variations in the last five years in the hospitality sector. Restaurants and gambling sectors have experienced a noteworthy growth in their workforce. The workforce in restaurant has seen 9% increases whereas pubs have seen 19 % increment. While on the contrary, travel and tourism industry has experienced drop in the manpower i.e. 6% and 9%, respectively. Also, there has been drop in number of pubs in these recent years. There is decrease in Bar staff by 23% in the last year and 35% decline in number of managers in last five years. Travel industry has also suffered badly with 30% decline in travel consultants in the last three years. But, it has succeeded in gaining stability after the period of downfall as per the recent survey.
Considering the demography of UK, young people between the age 16 and 19 contribute to 16% of the labour force while not more than 5% are contributed by people over the age of 60. It is interesting to know that around 59% of the labours in hospitality are female but surprisingly less number of females are actually working at management positions which fell from 49% to 46% between the years 2005 to 2008. Also, there are more female part timers than male i.e. 55% and 31%, respectively. It is also found that very less percentage of people from black and minority ethnicity work in hospitality industry i.e. 2 % while only 6% of this group are placed in middle management.
In case of registered unemployed people, the number raised from 47,875 to 75,345 between Feb 2008 and Feb 2009 which means that 1.8 people apply for the same job in hospitality industry. Around 26% of the hospitality industry reached saturation point in the recruitment in March 2008 for a year and there were cancellations in the recruitment by about 24%. Temporary workers have suffered big time recording 30% and 29% drop in number of temporary employees in pubs/bars and nightclubs respectively. Though labour turnover was at its peak and rise in economic downturn, employers spent approximately £414 million on training and development in 2008-09 due to tremendous shortage of skilled labour.
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There has also been significant fall in the number of skilled labours i.e. 9% of the employees still lack the skills. However, number of qualified employees has increased from 60% to 64% in 2007-08. Employers have now become keener in providing training to their employees though most of the employers train them informally and less budget is allocated for formal trainings. Though management skills are improving with drop in unskilled managers from 30% to 26%, there has been rise in number of chefs lacking skills from 44% to 50%.
Manpower planning can be defined as a central personnel activity which attempts to reconcile an organisation's need for labour with available supply in local and national labour markets. (Beardwell, 1997)
It is very essential for any business to have right number of man power. Any difference in actual manpower required i.e. overstaffing and understaffing, could affect the profitability of the organisation. Poor customer service, less business and low employee morale could be there reason for understaffing whereas; overstaffing can lead to loss of revenue. Thus, in order to do well in business it is very important to recruit appropriate number of employees and reasonable amount of work should be allocated to the right person. (basiccollegeaccounting, 2010)
Benefits of manpower planning:
It helps in achieving objectives by developing the employees in advance for managerial positions.
It is an important part of strategic plannings.
Organisation can make changes as per the variations in market.
It helps in identifying staffing problems and rectifying it accordingly.
Organisations' manpower need can be determined.
Current labour market trend in supply of labour:
The numbers of labours which are ready to work or which are capable of working in a specific industry for a given wage are termed as supply of labour (tutor2u, 2009)
There are various factors which affect the supply of labour:
Age : The supply of labour varies as per the ages of available potential employees.
Wage: Supply of labour may also vary depending on the wages offered to them.
PEST stands for Political, Economical, Social and Technological. This is a survey undertaken by any organisation to understand the know how of the surrounding area.
This factor includes any government policies, rules, regulations and laws which every organisation is supposed to follow before it starts operating.
The service laws:
As per the UK Employment Rights Act of 1999 and 2003, KFC should have all their policies, terms and conditions on paper. It thus acts as an documentation proof. KFC is also bound to pay their staff the minimum wage as per the National Minimum Wages Act.
Any changes in immigration law affect the availability of the skilled labours from the other countries. Stricter immigration and work permit laws could restrict the accessibility of labours to the employers.
Trade restrictions and Tariffs:
Due to globalisation, companies do import and export businesses. The companies are thus bound to follow the rules and regulations during the trade of any goods and services.
Effect of political factors on organisation:
Since UK's current immigration policies have got stricter, it is being difficult for the employers to hire skilled staff from other countries.
As per the new law, KFC will have to pay minimum of £5.93 from October,2010.
It deals with the cost incurred in the operation of the organisation.
Inflation rate is the change in the price level over a period of time. It is constant rise in average price. As per the inflations rate, the organisation has to make changes in their pricings accordingly.
Currency exchange rate
The change in the currency rate has significant effect on the revenue of the organisation. It also causes change in the profitability.
It is the percentage of amount paid by the bank for depositing money which also acts as the income for the organisation.
The cost incurred for recruiting, training, wages and other benefits to the employees comes under labour cost.
Effect of economic factors:
Many employees were terminated due to recession.
Organisation's profitability suffers due to high labour turnover.
Demographic and social aspects are covered under the social factors.
The demands of people are changing due to changing lifestyle and thus organisation has to work hard to meet their demands.
As people are getting more demanding, there is need to train staff.
Thus, KFC will also have to cross train them with respect to other departments so that they are well aware of various restaurant operations.
Being health conscious is the new trend of the customers, thus organisations have now introduced food with low cholesterol, fats and calories.
Effect of social factors:
More emphasis is given on organic food
Also, more emphasis is given on training of the staff.
The factors which also affect human resources are various technological changes and new technologies.
Today, everything is virtually based and hence, people nowadays hate to waste time for ordering anything physically. So, KFC should start something innovative like online ordering so customer's convenience.
Self point access is something which people wish to have for the ease of ordering. It is also very convenient to carry out any business.
Effect of technological factors:
Tremendous expenses are incurred for using new and advanced technologies.
Staff will have to be provided with training for using the new technology.
Labour Turnover and Its Effect:
The term labour turnover refers to the movement of the workforce in and out of the organisation.(tutor2u, 2009)
High turnover of labour is unfavourable for any organisation. It reduces the profitability, productivity and can have much adverse effect on organisation.
Measuring Labour turnover: (Riley, 1996)
Labour turnover can be measured as the ratio of number of leavers in a period to the number of people who are employed in the same period.
Example : If there are 200 leavers in a certain organisation during a year and 2000 people were recruited in the same period, then the labour turn over will be calculated to be 10%
Effects of labour turnover:
Labour turnover can help bring in new ideas, skills and motivation to the workforce
It can also hamper the productivity and profitability.
Customers can also experience fall in the service whenever their representative changes.
Huge amount of expenses are incurred for recruitment and training of new employees.
Working Arrangements and its effect on labour turnover
There should be proper working arrangements set in the organisation to reduce labour turnover. Various measures should be taken to improve the labour retentions.
Employer should provide details about various criteria expected so that it will help the candidate understand the requirement of the job.
It describes the duties involved in the job so that the candidate can relate to the job. This will help him to understand what exactly the job demands from him.
It provides information about the number of staff which will be working on a particular day or week. It is used to keep track of the staff by the managers as it contains records of work done by the staff.
It contains the record of shift timings, days off and name of the employee.
Working hours flexibility:
It allows employees to work according to their convenience. They can select their shifts which will help them to increase their morale.
This type of work allows the employee to work for certain time. This type of work is mostly undertaken by students. Organisations can also afford such type of workers as they can increase profits by cutting the benefits of part time employees.
It helps employees to work in flexible conditions where employees can share their job.
Thus, it will help in improving the labour turnover and also help in retaining good customers.