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A
PROJECT REPORT
ON
HUMAN RESOURE MANAGEMENT-EMPLOYEE RELATION
Submitted in partial fulfillment for the award of
Master of Business Administration
(Punjab Technical University, Jalandhar)
2009-2011
InternalGuide:
MR. SIDDHARTA RANJAN BASAK
(H.O.D.)
Submitted By
SANTOSH KUMAR RAY
ROLL # 9213900026
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NSHM BUSINESS SCHOOL
DURGAPUR
(Affiliated To PUNJAB Technical University, JALANDHAR)
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Acknowledgment
I would like to acknowledge the contributions of Mrs. Malini sen
gupta(Manager-Human Resource) Rose valley hotel,durgapur Mr.
Smeer ghosh (Personnel relation officer) Rose valley for their support,
ideas and suggestions in completing this project successfully.
I would also like to acknowledge Mr. Siddharta ranjan basak for giving
me a proper start and guidance in my project.
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DECLARATION
I hereby declare that this project report entitled as Employee relation in Rose valley hotel submitted
to, NSHM, Durgapur in partial fulfillment of the requirement ofMBA is a bonafide work done by me and
it was not submitted to any other university or institution previously.
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Introduction
The objective of this study was to have an overview of HRM and Employee relations
in hotel industries in rose valley hotel. The objective was to study the employee relations in hotelindustries.
The Human Resources Management (HRM) Function Includes A Variety Of Activities,
And Key Among Them Is Maintaining Amicable Relations With The Workforce. The hotel
industries Are Such Where Employees Become The Crux Of All Operations. For The Rose
valley hotel, It Is The Employee Who Works in rose valley hotel. Even At Rose valley hotel,
Where Most Of The Operations Are Automated, Workers Need To give service.
The goal of Employee Relations is to end up with a productive and motivated
employee that will help effectiveness.According to me, HR department gets concerned in 3
types of relations. First the employer to the employee, second employees to employer and third is
amongst the employees. There is comprehensive information on all 3 and how it benefits the
company.
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Human Resource Management
Human Resource Management is an integral part of management. It helps the management in
taking a strategic view of a very important resource i.e. Human Resource. It helps management
in identifying key skill sets, knowledge, values required in the employee and the rewards that areneeded to be given to the employees so that the organisation goals are fulfilled. Also like other
management functions, it has to ensure that these resources are available at an optimal cost. It
has to look into various training and development activities to ensure this. This is a key area for
Human Resource Management as it shows their contribution in terms of money. The money here
would be the opportunity cost incurred due to appointing of new employees instead of
developing current employees for the task in hand.
Functions
From recruiting to orienting new employees, from writing job descriptions to tracking vacation
and sick leave, and from instituting and monitoring policies to monitoring benefits, there hasbeen a need for an HR generalist to assist senior management in both establishing a "structure" to
holding down costs of administration.
HRM is a function that helps managers recruit, select, train, and develop employees for an
organization.
1. Human Resource Planning: is understood as the process of forecasting an organizations
future demand for, and supply of, the right type of people in the right number.
2.J
ob Analysis:
is the process of studying and collecting information relating to theoperations and responsibilities of a specific job. The immediate products of this analysis
are job descriptions and job specification.
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3. Recruitment: is the process of finding and attracting capable applicants for employment.
The process begins when new recruits are sought and ends when their applications are
submitted. The result is a pool of applicants from which new employees are selected.
4. Selection: is the process of differentiating between applicants in order to identify (and
hire) those with greater likelihood of success in a job.
5. Placement: is understood as the allocation of people to jobs. It is the assignment or
re-assignment of an employee to a new or different job.
6. Training and development: It is an attempt to improve current or future employee
performance by increasing an employees ability to perform through learning, usually
by changing the employees attitude or increasing his or her skills and knowledge.
The need for training and development is determined by employees performance
deficiency, computed as follows: Training and development need = Standard
performance Actual performance
7. Remuneration: is the compensation an employee receives in return for his or her
contribution to the organization.
8. Motivation: is a process that starts with a psychological or physiological deficiency
or need that activates behavior or a drive that is aimed at a goal or an incentive.
9. Participative management: Workers participation may broadly be taken to cover all terms
of association of workers and their representatives with the decision making process, ranging
from exchange of information, consultations, decisions and negotiations to more
institutionalized forms such as the presence of workers members on management or
supervisory boards or even management by workers themselves as practiced in Yugoslavia.
((ILO)
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10.Communication: may be understood as the process of exchanging information, andunderstanding among people.
11.Safety and health: Safety means freedom from the occurrence or risk of injury or loss. In
order to ensure the continuing good health of their employees, the HRM focuses on the need
for healthy workers and health services.
12.Welfare: as defined by ILO at its Asian Regional Conference, defined labour welfare as a
term which is understood to include such services, facilities, and amenities as may be
established in or in the vicinity of undertakings to enable the person employed in them to
perform their work in healthy, congenial surroundings and to provide them with amenities
conducive to good health and high morale.
13.Transfer: involves a change in the job (accompanied by a change in the place of the job) of
an employee without a change in the responsibilities or remuneration.
14.Separations: Lay-offs, resignations and dismissals separate employees from the employers.
15.Employee Relations: is concerned with the systems, rules and procedures used by unions
and employers to determine the reward for effort and other conditions of employment, to
protect the interests of the employed and their employers, and to regulate the ways in which
employers treat their employees.
16.Disputes and their settlement: Industrial disputes mean any dispute or difference between
employers and employers, or between employers and workmen, or between workmen and
workmen, which is connected with the employment or non-employment or terms of
employment or with the conditions of labour of any person.
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EMPLOYEE RELATION
Introduction
People in organisations interact with each other during work, formally and officially as well as
socially and informally. During the course of interaction, relationships develop, which are
invisible connecting links, coloured by emotions of love, hate, repulsion, respect, fear, anxiety
and so on. These are usually mutual but not necessarily reciprocal. If A hates B, it does not
follow that B hates A. It is possible that B loves A and even sympathizes with his thoughts.
Relationships imply feelings for each other. They may be positive (friendly, wanting to
be close) or negative (unfriendly, wanting to be distant). Relationships always exist between
interacting persons. There is no neutral point. Indifference is not neutral. Indifference tends to be
negative.
Relationships influence behaviours at work. Expectations of each other, perceptions of
the intentions of either, distributions of assignments, readiness to conform or to rebel, enthusiasm
to contribute, etc., are to some extent outcomes of these relationships. Attitudes and motivations
influence, and are influenced by, the nature of these relationships.
Employees are among an organization's most important audiences with the potential to be
its most effective ambassadors.
Employee Relations are practices or initiatives for ensuring that Employees are happy
and are productive. Employee Relations offers assistance in a variety of ways including
employee recognition, policy development and interpretation, and all types of problem solving
and dispute resolution.
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Once there was a time when "Employee Relations" meant labor relations everywherearound the world. Negotiate. Orchestrate. Dictate. HR professionals helped negotiate collective
bargaining agreements. The provisions of that contract defined the relationship between
management, unions, and workers.
Today, Employee Relations is a much broader concept. It involves maintaining a work
environment that satisfies the needs of individual employees and management. Improving
employee morale, building company culture, conveying expectations
An effective employee relation involves creating and cultivating a motivated and productive
workforce. People are generally motivated from within, but what can you do to help foster the
type of environment where employees thrive, enabling your company to outperform the
competition
Employee Relations starts with determining the type of workplace the company wants.
It starts by considering what the company wants its employees to say about working for the
company. In a competitive market, it is important to that employees dont feel that they might be
treated more fairly elsewhere. After all retention is one of the major functions of HRM.
By considering what the company wants employees to say about working for it gives
shape to the companys culture. The company culture conveys organization's core values to its
employees, customers, vendors, and community.
In addition to the workplace climate, the company also considers the types of processes
or systems it wants to employ within the workplace to support the company culture and enhance
the working relationship that exists between the company and its workforce. Such systems couldinclude communications, policies, training, and development.
Also, an essential step in building effective Employee Relations is to evaluate the human,
financial and other resources available that reinforce the values and guiding principles the
company wants echoed throughout the organization. For example, what type of supervisors and
managers does it believe can bring out the best in people and projects?
The company should also make certain from the start that employees are not in counter
productive work environments where work is more arduous than it needs to be. Is the workplace
compliant with employment law? A major source of frustration for employees is the feeling that
they were treated unfairly. Good liability management tools are necessary to ensure that the
company avoids unnecessary confrontations, time wasters and costly legal battles
Traditionally Employee Relations programs were centered around labor union relations.
Today, Employee Relations does not necessarily involve unions. However, it does involve
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Advantages Of Maintaining good Employee Relation
The Kishore Pump Organisation study proved that a more engaged employee is also a more
productive employee. The research also proved, that a more engaged employee is also a more
profitable employee, a more customer-focused employee, a safer employee, and an employee
who is more likely to withstand temptations to jump ship and in turn it is also true that the longer
employees stay with an organization, the less engaged they become.
Following are the advantages of maintaining good relations with the employees.
y Reduced Absenteeism
One reason, outside of illness, that employees are absent is stress, and
the number one reason employees are stressed has to do with their relationship with their
manager/supervisor. Management styles that are too authoritarian tend to promote high levels of
absenteeism among employees also increase turnover, job burnout, and employee health
problems such as backaches and headaches. Employees may also reduce turnover and absences
when they begin to feel that working conditions are satisfactory and that they are becoming more
successful in their jobs.The absenteeism rate at GREAVES COTTEN is 8 % and increases by
3 % reaching to 11 % during the summer holidays.
y Improved Morale And Motivation
The secret of creating a motivating employee review lies in the
relationship between accuracy and money. The right combination provides with a highly
motivated employee. Maintaining good Employee Relations creates an environment of trust and
increases morale. This improves the motivation of the employee. A motivated employee is
contagious and is beneficial for the growth of the company.
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y Harmony in The Organization
Increase in the level of job satisfaction has a direct relation with the
smooth workflow. There will be lesser arguments and more discussions. Employees will be
ready to share information and help each other out.
A good relation with the employee also inculcates discipline. Thus harmony is
maintained.
y Attract Good Talent
Attracting the most qualified employees and matching them to the
jobs for which they are best suited is important for the success of any organization. A good
company with good Employee Relations will be talked about. There is a brand image created inthe mind of the employees which attracts them to the company like a drop of honey.
y Lesser attrition - reduced cost on training, less cost of retention
A reduced attrition rate will reduce the cost of training and
induction. No new employees will need to start afresh. The company can save on getting to know
new employees.
Kishore Pumps spends around Rs.5 Lakhs on training every year with the attrition rate
being less than 2 %.
At Kinetic Engineering, it seems the employees are not interested in leaving at all. The
attrition rate is a minimal at 2-3% for staff, and between 1-2% for its workers .
y Responsible For Increase In ProductivityAs the saying goes, a happy worker is a productive worker.
Thus a satisfied worker will take lesser breaks, spend lesser time in the canteen gossiping and
more time working for the company. There will be Greater commitment which means quality
output.
There will be loyalty and less wastage of company resources. The employee will seek for
opportunities for intensifying the business and look out for new chances of expanding the
company. They identify themselves with the work and this leads to an improved performance.
Finally, the act of participation in itself establishes better communication, as people mutually
discuss work problems.
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y Open To Organizational Changes
The workers self-esteem, job satisfaction, and cooperative with
the management is improved. The results often are reduced conflict and stress, more
commitment to goals, and better acceptance of a change.
y Shared Learning And Continues Improvement
A satisfied employee will look for ways of continuous
improvement. They will participate in programs such as kaizen and try for the better of the
company. Employees in a good employee relation management will share their new learnings
and wisdom with his colleagues.
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New England Hotel Magazine
Acritical and close evaluation of a
hotels employee handbook andpoliciesas painful as that might
soundmay reveal whether or not youare actually putting your best foot forward.Many human resource vice presidentsand managers view handbooks andpolicies as a drab, technical and mundane
necessity of their job. But in reality,they are an overlooked and critical
component in developing positiveemployee relations. Obviously, handbooksand policies give an employer theopportunity to enforce certain rules,regulations and laws that are required,but they also provide an opportunity tolet employees know how valuable theyare to the success of a hotel property.One area of confusion that often arises
with human resources professionals iswhether or not an employee handbookshould be an all-encompassingemployment manual. In other words,should the employee handbook contain
all of the policies that are required bylaw, and those that are added by theemployer? The simple answer is no.The employee handbook is really thecornerstone from which an employermay build upon to establish other policiesthat are particular to that hospitalitybusiness. And those other policies
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can exist outside of the employee handbook.In fact, because they may bereadily obtainable, quickly reviewed and
occasionally amended as businessdemands require, it can be advantageousto keep them separated. Theeasiest way to do this is to reference thenamed policies in the employee manual,and suggest that the employeereview the separate policies on a regular
basis. The policies can be kept in a separatethree-ring notebook next to theemployee manual, although both manualsshould be kept in a conspicuousplace accessible by all employees.Every employee should receive a completeemployee handbook and a completeset of policies along with anacknowledgement form that theyreceived them, read them and understandthem. A copy of that acknowledgement
form should always beplaced in the employees personnel file.As the policies are updated and amended,
a redistribution of those policiesshould be made with another acknowledgementform.Specific Language
Oftentimes, depending on the size ofthe hotel, the employer may wish tohave two separate employee handbooksone for non-supervisory personnel,
and another for supervisors.Generally speaking, some of theimportant topics that should be includ-
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The Cornerstone ofEmployee RelationsA guide to effective handbooks and policies
By Brian L. ChampionNew England Hotel MAGAZINE
A PublicationFor HospitalityExecutivesJuly/August 2007
employee relations 8/15/07 10:12 PM Page 1New England Hotel Magazine
ed in a non-supervisory employee handbookare: A description of the employment-atwillrelationship; A statement that this handbookreplaces all previous versions;
An affirmative statement that thehotel is an equal employmentopportunity employer. It should setforth the companys commitment to
equal employment opportunities,including affirmative action if applicable,and that the company has a
zero tolerance for discriminationand harassment of any kind; A description of work schedules,breaks, meal periods, what constitutesa work week, how overtimepay will be calculated, etc. It isalways a good idea to state that anyovertime must be approved in
advance; A benefits section highlighting:vacation and holiday policies, sick
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leave, leaves of absence, insurancecoverage, pension plans, and otherbenefits that are available to
employees, such as food or lodgingdiscounts; A section regarding work safety andrules of conduct that clearly set forththe expectations of behavior in theworkplace.If it is desirable for supervisors to have
a separate handbook, topics shouldinclude: A description of employee evaluationand reporting procedures,because managers often need to bereminded, in a positive fashion, ofthe importance of timely and accurateemployee evaluations; A section regarding wage and hourissues, because it must be madevery clear that supervisors are not
authorized to allow employees towork off-the-clock in violation ofwage and hour laws. There have
been many newsworthy cases of late,resulting in millions of dollars of damages,because supervisors allowedemployees to work off-the-clock; Advice regarding the importance ofcorrective discipline and the recordingof those events by the supervisor.Supervisors must be well versed in
handling complaints, not only thoseemanating from employees, but alsothose coming from guests and customers.
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And they must have clearguidance on how to properly investigatethose claims so that they are
efficiently and effectively resolved; A description of the hiring and firingprocess, because there should beclear direction in the supervisorsmanual as to the dos and donts forboth the hiring and firing ofemployees.
While there is no legal requirement foran employer to actually have a handbook,there are legal requirementsregarding the posting of policies thatare a matter of law. Some of those policieswith which you may be familiarinclude: the Occupational Safety andHealth Act; Title VII of the Civil RightsAct; various discrimination laws, suchas the Age and Discrimination inEmployment Act; the Fair Labor
Standards Act; and the Uniform ServicesEmployment and Reemployment Act.Effectively written employee handbooks
and policies not only provide theemployee with positive reinforcementby describing their benefits, they alsoprovide the employer with protectionagainst governmental agency audits.They can be used to demonstrate thatthe employer is in compliance with allnecessary laws, rules and regulations.
Furthermore, if the unfortunate situationarises whereby an employee or formeremployee initiates litigation against
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the company, the employee handbookand written policies can be used todefend the company.
In developing an employee handbook,there are many elements thatshould be included, but there is also anecessary omission, specifically theappearance of creating an enforceableemployment contract. There must beeffective disclaimers in critical areas of
the handbook, as well as on the initialapplication. The disclaimers must clearlystate that the offer of employmentdoes not create a binding employmentcontract with the employee. These disclaimersmust be set forth in effective,clear language, and include a directstatement that an employee is, and willremain, an employee-at-will.Implementing, or the rollout, of anemployee handbook or newly developed
policies should be a top-downmanagerial process. By having uppermanagement support the positive
aspects in the manual and policies,employees will view any change as apositive experience, rather than a negativeone. And the manual and policiesshould be distributed in advance of theireffective dates. By doing so, you willconvey a sense of professionalism andcourtesy. Employees should also have
advance notice to review the materials,write comments and ask questionsregarding the materials before they feel
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that they are being held to the underlyingprecepts of the policies.There are many technical aspects of
employee manuals and policies thatmust be correctly prepared, and arebest done so in conjunction with youremployment counsel. _Brian L. Champion is a partner at the lawfirm of Verrill Dana LLP in Portland, Maineand Boston, where his practice focuses on
labor and employment law, and civil litigation.His experience extends to include mattersrelating specifically to the hospitalityand tourism industry, including wage andhour class-action cases. Contact the firm at:www.verrilldana.com.The rollout shouldbe a top downmanagerial process.
employee relations 8/15/07 10:12 PM Page 2
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Comparative Study
Parameters/co
mpany
Kishore Pumps Greaves Cotton Kinetic
Engineering
ORGANISATIO
N STRUCTURE
Flat Flat Flat
NO. OF
WORKERS
289 workers
69 staff
47 managers
742 workers
30 staff
150 managers
589 Workers
42 Staff
52 Managers
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INDUCTION 7 days &
compulsory for
all
15 days only for
managers and
staff.
14 days &
compulsory for
all
TRAINING ySystematic
and annual.
yFor mangers,
staff &
workers.
yTechnical and
behavioural
yInternal and
external
y Annual
y Managers
and workers
y
Technicalfor workers,
behavioural for
managers
y External for
managers and
internal for
workers.
Done as need
occurs.
Managers only
Behavioural
Cross
department trg.
Internal and
external.
BENEFITS
Canteen
Uniform
Housing
Yes, with
subsidized
food.
Selected
employees,
also monsoon
& winter wear
For Security
Yes, with
subsidized food.
Selected
employees, also
monsoon &
winter wear
For engineers
Yes, with
subsidized
food.
For Workers.
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Other
guards at
subsidized
rates
Holiday hone
scheme and
Marriage gift
scheme.
and Technicians
in the
compound.
Production
incentive and
festival
allowance.
For selected
employees like
Front office
manager.
Transport for
employees
and Workers
MONETARY
BENEFITS
Retirement
services and
benefits
Credit society.
ECS employee
credit society
Credit group in
Harmony group.
MEDICAL
FACILITIES
y2 in house
doctors and 1
nurse.
yMedicalcheck-ups once
in 3 yrs.
yReimburseme
nt
of medical
expenses
3 in-house
doctors and 3
nurses.
Medical check-ups every 6
months.
Reimbursemen
t.
1 in-house
doctor.
Medical
reimbursements and are
planning for
insurance.
SAFETY yAmbulance
room.y50 first aid
trainers.And
Regular
trainingGuard for all
Regular
training.Smoke
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regular training
yERP & safety
squad.
yFirst aid box
in all
departments.
ySafety day
and drills.
machines.
First aid box in
prime locations
Safety day and
drills
detectors
First aid box &
fire
extinguishers in
all
departments.
CAREERGROWTH AND
DEVELOPMEN
T
Job bands.
Job rotation
and job
enrichment.
Job enrichment -
STRESS
MANAGEMEN
T
Leaves
Sports
Picnics
Others
21 AL + 14
CL + 21 SL
Inter-
departme
nt
matches
2-3 times
a year
Annual
picnics.
16 AL + 7
CL + 10 SL
Inter-
departme
nt
matches
4-5 times
a year
Annual
picnics.
30 in all
Inter-departme
nt
matches
monthly
Annual
picnics
Departme
nt parties
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Stress
managem
ent
Training.
Regular
tourname
nts on the
play-
ground.
every 6 -7
months.
COLLECTIVE
BARGAINING
Trade
union
Strikes
Suggestions
Kaamgaar
utkarshsabha
No.
Suggestio
n Box
Kaamgaar
utkarshsabha
No
Suggestio
n box at
prime
locations
No.
No.
Quarterly
Town hall
meetings
and
Suggestion
box.
FEEDBACK Employee
Satisfaction
Survey.
None HR balanced
scorecard and
satisfaction
survey.
PERFORMANC
E
Online for
managers and
informal for
For management
and staff
For
management
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APPRAISAL staff (90degree) and staff
ANNUAL
EVENTS
Picnics
Puja
Annual picnics
Annual dassrra
puja
House
magazine called
Samvaad.
Annual picnics Annual picnics
and department
picnics.
House
magazine
WELFARE Annualprize
distribution
Note book
distribution
Counseling
quarterly
competitions
birthdaycelebrations
crche
jagruti group.
HARMONY
Other offers
with Airtel.
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THE IMPACT OF MANAGER-EMPLOYEE RELATIONSHIP ON
IMPROVING PERFORMANCES IN HOTEL INDUSTRY
The specific Hotel activity, its complexity given by the variety of its
components, is important for
recruiting and selecting the necessary personnel, its structure, and
training in order to maximize the
efficiency of work force. Employees motivation refers to a right
correlation between their personal needs
and the objectives of the organization. The role of the manager is to
identify and decide to what extent the
organizational objectives are similar to employees personal needs. The
motivatingcoaching function
covers up the set of work processes that determine the staff of a company
to set up and achieve the planned
organizational objectives. There is no standard pattern of motivating the
staff, employees motivation is
based both on personal and external factors.
Key words: human resource management, motivation, reward, satisfaction,
manager-employee
relationship
1. Human Resource Management
1.1 Hotel industries Human Resource Management
Human resource management is the entire set of activities focused onproviding, developing, motivating
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and retaining the human resources within the organization so that the main
objectives should be reached
efficiently and the employees needs satisfied.
The extent and quality of tourism activity is mainly determined by the
number of employees and the level
of their qualification, the correlation between their professional
training and the position hold, their
professionalism and promptness in reaching the objectives. Thus, tourism
evolution is directly related to
the human resources structure and dynamic, underlining the great
importance of human capital.
The specific tourism activity, its complexity given by the variety of its
components, is important for
recruiting and selecting the necessary personnel, its structure, and
training in order to maximize the
efficiency of work force.
1.2 The specific features of tourism labourThe relationship between tourism and human capital is a complex one, of
inter-conditioning, each of the
two elements having the cause-effect role. Tourism is covered up by
numerous and various activities and
the work in this domain is characterized by a series of features mainly
reflected by the need of work force
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and the results of utilizing it. Among the most important features we can
mention a great consumption of
workforce, superior moral and material liability, direct customer-employee
relationship, seasonal period,
using the work pattern partially. The specific features of working in
tourism influence the number and the
qualification of employees, the structure of human resource, work
productivity level, mutual motivation,
recruitment and selection policies, as well as professional training.
54
2. Labour satisfaction, motivation and reward
2.1. Satisfaction
According to its definition, satisfaction is a subjective state as a
result of needs fulfillment, lack of tension
and anxiety. Depending on the purpose, an action should be finalized with
a moral or material satisfaction.
If the efficiency of individual involvement in team activity is low, with
no satisfaction, then, one can speak
about a state of dissatisfaction, a state of mind that can cover the wholegroup, the organization, leading to
frustration.
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The main factors influencing work satisfaction are: pride, careeradvancement, professional challenge,
organization prestige, work benefits, job security, etc.
2.2 Motivation
Motivation is defined as a sum of internal and external energies that
initiate, conduct and maintain an effort
targeted to organization objectives, fulfilling also the personal needs.
The effort made by the employee will contribute to a greater extent to the
outcome expected by the
organization, as long as the personal goals are similar to those of the
organizational ones. For an individual
to be motivated at the workplace, he must be sure that performing a
certain job will help him fulfill his own
needs.
Employees motivation refers to a right correlation between their personal
needs and the objectives of the
organization. The role of the manager is to identify and decide to what
extent the organizational objectives
are similar to employees personal needs.
Motivation is one of the managers most important responsibilities; they
must find the best way of
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questionnaire has been distributed to the employees in order to collectthe necessary data. An important
segment of employees of both hotels was subject to this research.
3.1 The importance of this case study
This case study is useful to all managers working in hotel industry. It is
very important for them to be
aware of the impact manager-employee relationship is having on customer
satisfaction. The case study
comprises not only the findings obtained by data analysis, but also
recommendations that may help the
hotel managers to design new strategies in order to improve their business
performances.
3.2 A presentation of two analyzed hotels.
No.1 Hotel: It is situated in a peaceful, less centered area of the town,
it has a restaurant, a bar, 10 single
rooms, double rooms, and apartments equipped with TV sets, air-conditioning, mini-bar and telephone.
The customers can enjoy the following services: parking, card payment,
gym, sauna, barbershop, and
internet access.
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There are ten employees working in the hotel, a segment of 100% of theemployees has been questioned.
Hotel no. 2: It is situated in the very cultural and historical centre of
Timisoara; the atmosphere is very
elegant and comfortable. The hotel has 150 single, double rooms and
apartments, differently decorated
with an excellent view over the town during the day and night.
To meet the demands of its customers the hotel has a restaurant, a bar and
a conference room where
conferences, cocktails, banquettes, parties or festive dinners may be
organized. This hotel has an excellent
reputation for the services provided such as: parking, washing-cleaning
services, gym, sauna, massage,
hairdressing saloon, internet access, secretarial services. They also
provide additional services such as:
transport from the airport to the hotel and sight seeing.
This hotel has 160 employees; an important segment of 60% has been
questioned.
3.3 The analysis of the questionnaires distributed to the employees of
No.1 Hotel and No.2
Hotel
a) A description of the targeted segment
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By analyzing the employees distribution according to their age one cannotice the following: Hotel no. 1
has employees of 31-40years old (70%), whereas the age of the employees
working for No.2 Hotel is
between 20-30 years old (52%). Hotel no. 2 has also employed people
between 41-50years old (11%) and
people over 50 years old (4%).
By analyzing the employees distribution according to their gender one can
notice that both hotels have a
predominant number of women, but in a different percentage: 86% No.1
Hotel, 52% No.2 Hotel.
By analyzing the employees distribution according to their education one
can notice the following: a 57%
of the employees working for Hotel no. 1 have been employed for a period
of time between 3-5 years, 29%
have 1-2 years of work experience. This might be explained by the factthat it is a new hotel in contrast
with Hotel no. 2 where the most employees have between 5-10 years of
service(30%), followed closely by
those with 3-5 years of work experience (29%). One can also notice the
presence of employees a work
experience of over 11years (11%).
b) The inner mo
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With regard to their professional development the employees of both placesare not satisfied, most of them
stagnating. They are not very optimistic about their professional
advancement within the company, because
the company ladder has only few levels and career advancement is a slow
process.
c) Employer-employee relationship
One can notice that at both hotels the employees have a positive reaction
towards management: No.1 Hotel
(57%) and No.2 Hotel (52%), with a small exception of 4% of the second
hotels employees, who have a
different opinion.
With reference to managers flexibility and new ideas one can notice thatmost of the employees agree with
this statement; No.1 Hotel (42%) and No.2 Hotel (59%).
The performance appraisal questions has underlined the following: the
employees of the no.1 Hotel stated
the staff appraisal in their hotel is a honest and objective process(57%),
but there is a percentage of 29%
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employees who are not quite sure about this and 14% who have doubtsconcerning the managers
56
objectivity. The employees of no.2 Hotel appreciated the managers
objectivity and honesty (42%), 50%
are not sure and 4% think the manager is not objective.
One can easily notice that the management the first hotel is much more
flexible in the process of decision
making 57% of the employees can make their own decisions compared to a 26%
of the second hotel.
d) Remuneration and reward
In both cases employees think that they should get more money for their
work: 57% no. 1 Hotel and 93%
no.2 Hotel. Only 7% from the second hotel think they are paid according to
their work, and 42% from the
first hotel think they are paid according to their work. None of the
employees think they are well-paid.
e) Work conditions
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Regarding the salary one can notice that at the first hotel 43% of theemployees have answered that the
salary was not the reason that made them get that job, 43% stated that the
salary was the main the reason
for their employment, and 14% said the salary motivated them to get the
job to a less extent. At the second
hotel we have the following situation: 52% of the employees have answered
that the salary was not the
reason that made them accept that job, 4% said that the salary was
important, but not to a great extent, and
44%answered the salary was an insignificant reason.
With reference to work experience issue, one can notice that it is the
main motivation for employment at
both hotels. At no.1 Hotel 43% of the employees have answered that they
have got the job for the career
opportunity offered, also 43% think their career is not so important, 14%
did not take this issue intoconsideration. At no.2 Hotel most of the employees got the job for career
advancement, 19% think their
career is not so important and only 7% did not take this issue into
consideration.
Regarding the issue of working conditions and environment we have the
following data: at no.1 Hotel most
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of the employees are satisfied with their working conditions (57%), 29%ofthem are not so satisfied with it
and 14% of them are not satisfied at all. At no.2 Hotel most of the
employees are not satisfied with their
working conditions and environment (56%), but there are a percentage of
26% employees who are very
satisfied with their working conditions.
There is an obvious difference between the two hotels: no. 1 hotel has
managed to attract a large staff to
work for them 72%, even if they used to work for other organizations,
whereas most of the people of the
second hotel were unemployed when they applied for this job (74%).
f) The analysis of open questions
By analyzing the answers of the open questions, one can notice the main
reasons of employees
dissatisfaction and the suggestions they make.
The answers provided for this open question: What would you do if you were
the manager of your hotel?
(Chart no.1)
1. I would promote employees according to their performance
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2. I would offer financial rewards to hard working employees3. I would provide trainings
4. I would encourage competition among employees
5. I would implement a modern management, a more effective one
6. I would grant employees moral and material incentives
57
Hotel
1
4;
30%
2;
15%
1;
8%
1;
8%
1;
8%promote employees according to their
performance
financial
provide
encourage competition among
implement a modern
grant employees moral and material
Hotel
2
12;
37%
11;
33%
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5;15%
1;
2;
2;
promote employees according to their
financial
provide trainings
encourage competition among
implement a modern
grant employees moral and material
Chart 1.Staff motivation within the hotels
What do you need to become a motivate worker? What makes you an
unmotivated worker? (Chart no.2)
Answers:
1.
Low salary
2.
Reduced opportunities for career advancement
3.
No professional training
4.
Companys lack of development/opportunities
What makes you an unmotivated worker?
Hotel 1
5;36%
4;
3;
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21%2;
14%
Low
Reduced opportunities for career
No professional
Companys lack of
What makes you an unmotivated worker?
Hotel 2
20;
41%
10;
21%
10;
21%
8;
17%
LowReduced opportunities for career
No professional
Companys lack of
Chart 2. Analysis of employees dissatisfaction
4. Conclusions and Suggestions
Conclusions: the findings of research have underlined the fact that most
employees are not satisfied with
their salaries and their professional training. Their personal initiatives
are not taken into consideration
because there is no efficient system of collecting and using data.
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Mainly, the managers used to focus on getting a rapid profit, butcurrently more and more managers have
realized the importance of having well-prepared, well-trained employees
within the company. Thus, they
must focus on motivating their staff to increase their productivity level
and job satisfaction.
To improve the system of management and the services provided to
prospective clients, we underline the
following suggestions:
Professional development
To increase employees satisfaction towards their professional
development, the organizations should focus
on the following areas:
To elaborate and implement a system of drawing up and revise the job
description
To outline the role of each employee within the company
To design training programs according to each professional group
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To set objectives within a certain period of time (3 months-1 year) and tomonitor the
progress constantly(involving the employees in this process)
To delegate responsibilities
To increase the number of jobs
To involve the employees in the decision-making process
58
Performance appraisal
Performance appraisal system may take various forms within organizations:
To develop a system of competition among all levels
To appraise employees good results in public providing concrete examples
To be granted individual rewards (financial rewards) periodically
Liability
Regarding employees work liability, one can state that only few
organizations grant their employees
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freedom to express their own ideas and opinions. Thus, few organizationstake fully advantage of their
employees potential. Thus, it is recommended for them to:
Delegate responsibility
Develop training for managers concerning the process of delegating
responsibilities
Design and implement systems of collecting employees suggestions and
recommendations
so that all of them should be involved in the process of improving their
work.
Advancement
Among all analyzed parameters, this one has registered the lowest figures
compared to the ideal level.Thus, it is recommended for them to:
Draw up job description, to have a clear job specification so that each
employee should know
exactly their responsibilities
Design and implement a career planning policy
To increase the employees liability progressively so that they should be
prepared to climb
the company ladder
Working environment
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This is an area where the most spectacular progresses are made withinRomanian companies. It seems like
Romanian managers are willing to create a pleasant and efficient work
environment in spite of low
budgets.
More and more companies implement quality systems to be successful and
when they are seconded by a
performing human resource management, one can speak about successful
companies.
Payment
By analyzing the questionnaire one can easily notice that more than half
of interviewed people were not
satisfied with their payment, and their suggestions and recommendations
were focused on this topic. The
employees are also dissatisfied with the level of their salaries incomparison with the other peers salaries
or the salaries on labour market. This internal or external inequality may
appear because most of the
employees are not aware of the payment system criteria.
To improve the level of salaries, managers should take into consideration
the following:
Developing and implementing evaluation policies and strategies
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Investigating the level of salaries on the market
It not only the salary that is taken into consideration, but also the
fringe benefits such as: medical
insurance, life insurance, company car, discounts or free products,
subscriptions to gyms, a day off, nursery
school for employees children, rewards granted for good suggestions, or
meeting the deadlines, surprises,
gifts on somebodys birthday, trainings, and seminars etc. thus, it is
important for managers to:
Develop payment policies and strategies
Develop and implement appraisal performance policies
Develop payment systems base on achieved performances
5
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appropriate time. They are similarly protected if they choose not to belong to a union or refuse tojoin one.
Dismissals which infringe these rights may be taken to an employment tribunal regardless
of the employee's length of service. Employees who claim to have been unfairly dismissed in this
way (except those complaining of unfair selection for redundancy) can also apply to the tribunal
for an order of interim relief (which requires the employer to continue their contract of
employment or to re-employ them pending the final outcome of the case).
An employee may not be dismissed, selected for redundancy (when others in similar
circumstances are not selected) or subjected to any detrimental action for taking certain types of
action on health and safety grounds. These rights apply to all employees, regardless of their
length of service
Workers are entitled to be accompanied at certain disciplinary and grievance hearings bya fellow worker or a trade union official of their choice, provided they make a reasonable request
to be accompanied. They also have the right to a reasonable postponement of the hearing, within
specified limits, if their chosen companion is unavailable at the time the employer proposes.
Workers have the right to take paid time off during working hours to accompany fellow
workers employed by the same employer.
These rights apply to workers including agency workers and home workers, though not to
those who are in business solely on their own account.
Complaints to an employment tribunal must normally be made within 3 months of the
date of the infringement of the right. Exceptions to this general rule are detailed in the documents
about the particular individual rights.
2 JAPAN
Japanese Employee Relations methods have relevance in two contexts : Japan itself and
transplant factories in the Pacific area, North America and Europe. Nissan, for example, has been
particularly active in overseas expansion and - in common with many other Japanese
corporations - has a specific attitude towards trade unions. Effectively, independent unions and
multiple union representations are resisted in favour of 'staff association' and tame single -union
representation
More intensive efforts are being made to unify and realign industrial labor unions at
Japan. The nation's labor union organizations are three-layered - consisting of the independent
unions at the lowest level (enterprise unions are the mainstream), industry-level organizations
and national centers. The enterprise union remains the basic unit for organization. There are
more than 100 industry-level labor organizations, five have over 500,000 members. Many of
these organizations do not satisfactorily function as industry-level bodies. They are unable to
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adequately survey their members, to formulate industrial policy or to unionize the labor force.Many are understaffed and inadequately financed.
Following the end of World War II there was a long period when four national centers
competed. They were particularly divided ideologically and in terms of their support for political
parties. One result was the creation of competing organizations within the same industry.
However, with the formation of Rengo (Japanese Trade Union Confederation) in 1989, a move
was made to unify and to realign union organizations at the industry level under the umbrella of
one national center.
In 1993, the Japan Institute of Labour (JIL) began a research project on industrial
relations and decisions on working conditions at companies without labor unions (Head : Prof.
Tsuyoshi Tsuru of Hitotsubashi University).
According to the report, More than 60 percent of companies without unions have an in-house employee organization, of which 80 percent have a "fraternity-type" organization, and
fewer than 20 percent have an organization in which "employees have a say." The organization
in which "employees have a say" means those who replied that they have "labor talks with
management on revision of wages and matters pertaining to such working conditions as working
hours, holidays and vacation and welfare provisions" or "labor discusses production plans and
management policy."
As for an individual voicing body, a high of 47 percent of companies without unions
adopt a self-appraisal system, followed by the proposal system (34.2%) and a round table
discussion by those responsible for personnel management (26.1%). Even among companies
without unions, 42.2 percent stress employees' participation in decisions on working conditions,
and 44.7 percent stress their participation in formulation of strategies, thus showing an emphasis
on employees' overall participation in both areas. This, it seems, is the background forintroducing a variety of in-house organizations where employees can have a say, the report
analyzes.
The Japanese employment system has often been referred to as a "lifetime employment"
system. Firms compete with each other every spring to recruit the best of the new university and
high school graduates as regular employees normally determined as much by the prestige
attached to their university or school as by academic record. Regular employees enter the firm
with the expectation that they will be kept on until they reach the mandatory retirement age of
60.
The traditional Japanese wage system was based on seniority. However, in recent years,
Japanese companies increasingly have shifted towards a wage system that is linked to
performance because of increasing global competition and need to further motivate their
workers.
Participation in the Worker's Compensation Insurance System is mandatory for all firms
in industry and commerce. All medical expenses are paid for injured workers. Japan has a
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universal health insurance system, under which all citizens can receive medical attention if they become ill or injured. Businesses with at least five workers must provide their employees and
their families with government-managed health insurance or comprehensive insurance obtained
from a health insurance association. As of March 1999, 37.6 million workers participated in
government-managed plans, while 32.6 million had comprehensive insurance.
Collective bargaining is practiced widely in Japan. In the private sector, most aspects of
labor management relations are determined through collective bargaining. However, issues
affecting management and production, such as new plant and equipment and subcontracting
usually are resolved through regular consultations between the unions and management.
Government workers have limited collective bargaining rights. The Government determines the
pay of public sector employees based on a recommendation by the independent National
Personnel Authority (NPA). The NPA recommendation is based on wage surveys.
Standards are set by the MHLW and issued after consultation with the Standing
Committee on Safety and Health of the Central Labor Standards Council. Japan has a total of
343 Labor Standards Inspection Offices, whose staff carry out safety inspections and accident
investigations and provide judicial punishment for serious violations of the law.
As for recreation is concerned, Overtime accounted for 9.8 working hours per month in
the year 2000. In addition, Japanese workers utilized roughly half of the paid holidays and
vacation days to which they were entitled. The Government of Japan has set a goal to shorten the
number of working hours to 1,800 per annum by 2009. To attain its target, the Government is
attempting to make Japanese businesses adhere to the 40-hour workweek, is encouraging
workers to use their vacation days, and is trying to reduce the number of overtime hours.
3 USA
Labour unions date back to the late 18th century in the USA, although it was not until the
late 19th century that the 'modern' labour movement was born.
Unions were organised primarily at the level of the workplace, and it was at this level or
the employer level that their main activities took place, with unions seeking to 'take wages out of
competition' and hence maximize membership gains by co-coordinating settlements across
workplaces and employers.
Despite these relatively conservative goals, unions were initially able to gain employer
recognition and engage in meaningful collective bargaining only where their members had skill
levels sufficient to effectively shut-down an employer without fear of being replaced.
The abundant supply of qualified college graduates and experienced workers should
create keen competition for jobs. Overall employment of human resources, training, and labor
relations managers and specialists is expected to grow faster than the average for all occupations
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through 2012. In addition to openings due to growth, many job openings will arise from the needto replace workers who transfer to other occupations or leave the labor force.
Legislation and court rulings setting standards in various areasoccupational safety and
health, equal employment opportunity, wages, health, pensions, and family leave, among
otherswill increase demand for human resources, training, and l abor relations experts. Rising
healthcare costs should continue to spur demand for specialists to develop creative compensation
and benefits packages that firms can offer prospective employees. Employment of labor relations
staff, including arbitrators and mediators, should grow as firms become more involved in labor
relations, and attempt to resolve potentially costly labor-management disputes out of court.
Additional job growth may stem from increasing demand for specialists in international human
resources management and human resources information systems.
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Personal Observation
Sponsorships of MBAs or engineering programmes are successful retention tools. There are a
couple of popular models. Managers can take short on-campus courses. Some companies pay for
courses with the rider that managers return to the company once the course is over. For instance,
Coke has started an internal cadre-building programme that promotes the executive (graduates
and technical trainees) cadre to the management cadre through a two-month course in XLRI.
It has also started the Pegasus programme where high-fliers interact with the CEO at an
off-site location. Cadbury and HLL have also ramped up the process of identifying HIPOs in
their respective companies. IT companies are re-training managers in new software, which is
working as an important retention tool.
Prominent banks, IT companies, BPOs and FMCG companies in Bangalore, Mumbai and
Delhi share the angst of their employees in a different way. They are on the donors lists of many
prestigious schools, which reserve some seats for them. Since donations are unaffordable for
most employees, this becomes a huge add-on for them. A few MNCs also provide children
scholarships to some prestigious foreign universities.
Some companies are even altering work schedules. Pepsi has told its employees in the
north to pack up at 6.30 every Wednesday. According to Sanjay Luthra, director of Mumbai-
based BPO 3 Global Services, We also try and build a very creative work environment with a
multi-cuisine canteen, which is converted into a discotheque once a week. It has an array ofrecreational facilities including a video game parlour, and library.
Gaurav Lahiri, head of Indian operations in HR consultancy Hay Group, says, The key to talent
management is to identify top executives and treat them differently. Cross functional training is a
must for such employees. Plus, the strategy is to create such a dominant work culture that
employees find it difficult to adjust in some other organisation. ICICI is one such company
which follows this strategy.
When Kumar Mangalam is concerned, any Birla story is about people. He just cant take
his mind off people issues; this is one CEO who looks at himself and his group through people-
focused glasses, there are a select few CEOs who act as enablers in the business, by identifying
the leaders in individual businesses and set goals, giving freedom through explicit decision
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making rights and a set of values and principles based on which decisions are to be made.Explains Maira (HR - Executive), Its about moving from being tacit to being explicit
My objective has been to build a meritocracy and there are lots of nuances about it,
says Birla and adds,You are not talking about an object, an organisation is about people who
make it and it would continue to be my focus in days to come. Getting the right people on board
was a priority, and Birla was willing to do everything to grab them. Internally it raised eyebrows,
not because scores of senior managers working for the group for decades had been asked to put
in their papers, but because a company which had never invested much on HR was suddenly
spending Rs 16-17 crore on management development programmes which would later be called
Gyanodaya.
For Birla, people issues continue to attract maximum attention. One of the most
important functions he has cornered for himself is a regular performance appraisal for people
who directly report to him. Senior employees confide that its something he spends hours on.
Being the employer of choice is an objective thats dear to his heart, but Birla feels that theres
still way to go on this front. On his short list of immediate priorities, the one that is most
prominent is, We need to spend much more time grooming our brightest stars.
It seems simple. However, balancing employee expectations with those of the company is
easier said than done. Employee Relations in my view is an ongoing activity. It starts from the
day the employee is recruited, with the training, induction process, and goals and norms that are
expected out of the employee. Explaining the vision and core values of the company so that the
goals for the future are set straight.
In the site greatplacetowork.com, there seems to be one common factor in all 100
companies which got them to this reputation. The universal cause was that all of them cherishedand nurtured their human resource. Wegmans Food Markets (#1 on 2005 "100 Best" list,
Supermarket Chain) Robert Wegman, says "No matter how much we invest in our employees,
they give us more in return."
As per Hertzberg theory of motivation, the first three needs are already met by our
parents and guardians. The monetary needs, social needs of communication, and are
physiological needs are fulfilled by our parents, society or friends. The fourth need to be
recognized and rewarded, this is where the employer comes in. The desire to be renowned by the
employer is the prime motivating factor. Motivation then initiates a cycle of development for the
employee. The employer achieves this by engaging the employee decision making and other
activities.
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Conclusion
Each company that I interviewed was from Same sector but had different modus operandi. In
manufacturing sector a very important tool of Employee Relations is communication. It plays a
crucial role in Employee Relations. It is important to motivate the employee and make him aware
of the policies.
Employee Relations is necessary in an organisation as salt to food. As one cant imagine eating
food without salt, a company cannot run without maintaining Employee Relations.
I noticed that internal recruitment plays a very important role in employee relations. Internal
recruitment is when the company recruits someone from within the organisation to fill the
vacancies, as opposed to external recruiting i.e. recruiting from the open market.
Internal recruitment helps with the industrial relations since external recruitment can be
seen as depriving the workforce of opportunity.
Greaves Cotton has mixed recruitment. It follows internal as well as external. It has a Database
of People who want to seek employment. It is prepared on the basis of resumes left by job-seekers.
Kinetic engineering is strong follower of Natural succession. It strongly believes in
internal recruitment. If the company is looking at improving Employee Relations, then internal
resources should be the first considerations when planning for recruitment.
This is a very effective means as many qualified people can be reached at a very low cost
to the company. The other advantages are that the employees would bring only those referrals
that they feel would be able to fit in the organization based on their own experience. The
organization can be assured of the reliability and the character of the referrals. In this way, the
organization can also fulfill social obligations and create goodwill.