Manpower Planning in the Hospitality Industry

Manpower Planning in the Hospitality Industry Manpower Planning Manpower planning can be defined as the development of plan to meet the supply of worker to the availability of job at an organisation. Manpower planning involves reviewing the current manpower resource, and forecasting the future requirement of manpower. the main objective of manpower planning is to making sure the requirement of supply of individuals and skill to meets demand. This is a responsibility of the Human Resource Manager to make sure the organisation meets with the demand of manpower. Human Resource Manager when conducting a interview with the candidate has to make sure that candidate should meet the requirement of the job, like his education and qualification, Training and Experience, Personal Attributes. Source :- Buzzle.com Need of Manpower Planning Marriott gives a lot of importance to manpower planning, as they have to decide for next couple of years how many employees do they require as a plan for expansion, right for the entry level to managerial position. This will help the organisation to expand their business. Employer can plan their Labour cost and work according to it. By Recruiting new candidates will the help the organisation with new and unique ideas which will help the company to gain more market share. IT helps in internal growth of the employee within the organisation. Manpower planning helps the company to have right number employees to meet their demand. Labour Market Strategy:- The labour Market for Marriott is fluctuating, it keeps on changing as per the customer trend, but manpower strategy helps Marriott to work on a plan to calculate how many staff they require during busy time. There are four external factors which influence on the supply and quality of labour in an organisation. It is called as PEST (Political, Economic, Social, and Technology) PEST Analysis is a useful tool in understanding for companies development and its position in market, it also helps to understand the prospective direction for the business, The pest analysis is a contraction of political, Economic , Social, Technology , Legal, Environment. www.businessballs.com Political :- The Changes in the government policy may affect the organisation in many ways, in early this year the government changed in Value Added Service to 17.5%, changes in national minimum wage Marriott has a organisation will have to re-plan their strategies for labour cost, changes in government policies and taxation will hamper expansion plans Marriott Economic:- Due to the Global Economic crisis , most of organisation including Marriott had to made severe changes in their development plan and labour strategies. Due to recession organisations are controlling the labour cost as the demand as gone down. Most of the organisation are facing problem of excess labour, there is more supply labour available than the demand, More than 2 million people are jobless in Britain. Social :- Marriott has to be updated with the current customer trend, Organisation has to be aware of demographic changes such as:- age, population, region. To make any changes in their policies, Marriott has introduced Graduate Programme Development Opportunities for meeting the demand for manpower. Technology: Marriott is been innovative and is spending good amount from the profit towards technology or alternative ways of service for e.g.:- online booking, self check in and checkout. Such innovation needs skilled workers and there is a tremendous opportunity for skilled workers. Marriot by Using of new technology helps proper utilization of manpower of the organisation.   [Google docs slide manpower planning Maria P]   Factors to be Considered in by Marriott to estimate the demand for manpower Organization expansion- The organization looks for expansion of business in future to meet the expectation of customer. The future plan of Marriott is look to accommodate the tourist customer in their hotel for Olympic as these can create the future demand for labour. When the expansion of the organization is more then supply and demand needs to balance. The expansion is major factor for demand for labour in future. Internal demand- The internal demand can be promotion and dismal can be the factor for organization to create the demand and supply for labour. The top management and human resource also plays the major part for demanding the labour, such as recruitment of staff requirement to met the expansion their growth. Economic factor- The economic factor plays the important role in demanding the future labour. The economic growth can create the average spending power of the customer. The business can be expand as hospitality industry has invested more during the recession as the land rate has been drop and labour cost also. The strong economic of every country can create demand for labour Salary and Benefits: The Salary and benefits can be one of the factors that can demand the manpower for future. The marriot are providing with better and higher pay with benefit were most of the employee are attracted towards Marriott. They are providing better benefit then their competitor so that they can create a demand for manpower in future with this policies and plan of salary and benefit. Labour Turnover -Number of employee leave the firm through dismissal or resignation during a period to the number of employee on the payroll during the same period. dictionary.reference.com Calculating labour turnover Number of staff leaving in a year Average number employed in the same period x 100 This method of calculating turnover helps the organisation, to calculate manpower requirement for the future. Calculating labour turnover for Marriott for the year 2009, in various department Department No of employee left the organisation New Employee Turnover % Kitchen 8 19 42.10526316 Front Office 22 35 62.85714286 Food Beverage 166 207 80.19323671 House keeping 110 150 73.33333333 Employee turnover has a crucial consequence on the supply of the labour to an organisation, the turnover can classified into two category (1). Voluntary turnover ( 2). Compulsory turnover Voluntary Turnover :- Employee leaving job as he or she has found a new job Employee leaving the job due geographical mobility Leaving the job due to pregnancy. Employee leaving the job due to ill-related problems Retirement Changes in immigration law Working conditions Compulsory Turnover :- Release for misconduct. Made redundant due to recession. Release due to medical condition. John Stredwick Effects on organisation due to labour turnover:- There is a direct expenditure involved in replacement process by the organisation for Recruiting, Hiring and Training. At times organisation have staffs which are under-performing, if the under-performing staff decides to resign, it is beneficial for the organisation as they can hire somebody who is more productive and more skilful then the under-performing staff. 2008/09 in the U.K due to recession most of the skilled/Unskilled workers were made redundant more than 2 million were unemployed during this period, As major event approaching in 2012, the hospitality industry has to invest a lot direct cost in recruitments to match with the demand. Retention of an Employee:- Means trying to stop the employee from leaving the organisation. Marriott can offer rise in salary/wages to retain the employee, depending on his skills and experience. Offer the employee an opportunities for in house training programme, which will help his development within the organisation. If the Employee is planning to resign due to the long working hours, the organisation can offer him flexible working hours. If the Employee is not keen on continuing with a particular department for example Food and Beverage(Service), and wants to explore his skills in Front Office. Marriott as a organisation do have policy in place for inter department transfer. Marriott conducts a Exit Interview before the employee leaves the organisation, It helps Marriott to understand what they need to practice or make changes in their work culture, which will help to control employee turnover. John Stredwick Forecasting for Manpower Planning Forecasting is a important action in setting up the business plan, forecasting can be from 1,2, or 5 years depending on for whom the plan is to be presented, Marriott needs consider the upcoming event in count as well. Share-holder Bank Principal of Demand and Supply of Labour Demand and Supply Demand High Supply High Demand Low Supply Low Training Development Selection Changes Organisation Policies Labour cost control Internal Placement Forecasting Redundant Recruitment Demotion Table above helps Marriott to forecast manpower demand and supply, if there is a rise in demand, and supply is high then the Human Resource Manager should recruit staff member and Manager should promote internal staff member to meet the requirement of the company, If demand and supply is low than the manager should focus on forecast and training, if demand low and supply is high then the organisation has to control labour cost. Or may go to extend redundant some of the members of the staff. In Hospitality industry Demand and Supply of labour keeps on varying depending on the Events, Market trends, and Global crisis. There are few events which can be considered by human resource manager to predict the manpower demand. members.tripod.com Major Event in United Kingdom in next 5 years 2010- Women Rugby World Cup 2011- Ryder Cup. 2012- Olympics. 2012- ICC Twenty 20 World Cup. 2015- Men Rugby World Cup. http://www.code13.co.uk Working Arrangement for Marriott as Recommended Full -Time Employee :- As a Full Time employee they are entitled to work 40 hours a week, Marriott has a ratio of 60 to 40 i.e 60% of their employee are full time, and 40% are part time employee. Full time are flexible when its comes to working hours. Part-Time Employee:- As a Part Time employee they are entitled to work 20 hours a week, Part timers do get all the benefit as an employee, As they are students in United Kingdom they can only work for 20 hrs work Agency :- Marriot should outsource labour through agency, When Marriott has event planned they can contact the agency and outsource staff for the event. Marriott can practice this format of hiring outsource staff for a event as cost would be minimal then hiring a full time staff or a part- time staff. Contract:- Marriott should employ, staff on contract. Employee on contract is beneficial for Marriott, as per the contract the employee can be associated with Marriott only last for 6 months. Contract employee would be getting the same benefit as a full time or part time staff of Marriott. Causal :- Marriott can appoint causal staff which is beneficial for the organisation, as they dont have to give contract hours, they can use these causal staff depending upon the business of Marriott. Job Sharing:- One job is Shared by two people, in this case the benefit is which organisation provides is also shared. It is beneficial to the employer. Internship :- Marriott Should hire students who are on internship through their college, this not only help their manpower planning, but also fill in the requirement of the organisation, Internship programme student get the same benefit as a full time employee. BIBLIOGRAPHY BOOKS Stredwick, J. (2005)  Human resource management.  Second edition, UK, Elsevier Buttersworth-Heinemann 55-58. Marchington m and Wilkinson(2008) A Human Resource Management at work, People Management and development Fourth Edition. INTERNET http://www.buzzle.com/editorials/9-12-2004-59200.asp Last Assessed on 17th January 2010 http://www.businessballs.com/pestanalysisfreetemplate.htm last Assessed on 9th January 2010 http://dictionary.reference.com/browse/employee%20turnover Last Assessed on 25th January 2010 www.members.tripod.com Last Assessed on January 5th 2010 http://www.code13.co.uk/index.php?option=com_contentview=articleid=141:2010-the-golden-decade-of-sport-beginscatid=39:blogsItemid=2 Last Assessed on January 29th 2010 JOURNAL Evening Standard 24/01/2010. Page 1 Marriott Handbook Legislation for an Organisation Avinash Nayak 767689 Task 2 Legislation for an organisation Recruitment and Employment :- Is a process of hiring in the right candidate for the job to met the requirement of staffing. Working Time Regulation :- This Law was brought into practice from October 1998, This law applies all the business and to all workers. Marriot has to comply with law, this law include :- Maximum Working hours should not exceed more than 48hrs a week. Employee is entitled for daily break as per the contract. Employee is entitled for weekly break. For example:- if he is working 6 days a week, he is entitled for 1 day off. Employee is entitled for Annual holidays. The law is in place for different age groups:- 16-17 and 18 16-17 They are entitled to work 40 hrs a week,(8 hrs a day) They are entitled for a 30 mins break if the shift last more than 4.5 hrs They are entitled for 2 days weekly off 18 They are entitled to work 48 hrs a week, not more than 6 days a week. They are entitle for a 20 mins break if their shift last more than 6 hrs. They are entitled for 1 day off a week. www.businesslink.com Implication:- Employer should make sure working hours and breaks regulation are mentioned in the contract. Employee are entitled to take their break after 6 hrs, at least for 20 mins. Employer should make sure they give enough rest time between two shifts i.e 11 hrs rest time every 24 hrs. Application:- A Line Manager should be appointed to monitor the daily clock in and clock out through, Muster Book, latest software where an employee can clock in and out as well his breaks. Line Manager should make sure working hours of an employee should not exceed the contract hours All Employees should be sign a copy of contract and understand the importance of complying with law, as it is beneficial for both the employee and employer. Statutory Provisions:- Health and Safety Act 1974:- This Act was brought into practice 1974 to make sure employer are providing a safe place for their employees to work. Implication :- To make sure the working environment is safe for the employees of Marriot. Training Should be conducted on all the employees, so that they are aware what do they need to do in an event of accident. Equipment in use should be safe for use, in case of accidents should be reported. Fire Exit should be free from any obstacles. Application :- Have a Health and Safety committee, conduct the meeting on periodically bases, Risk assessment should be completed on all employees. Training files should be updated on monthly basis, as well Re-Fresher course should be conducted on all the employees every 3 to 4 months. Health and Safety information should be displayed as well the contact details in case of emergency. www.direct.gov.uk Codes of Practice :- Disciplinary :- Employer use this method to tell the employee that their act or their conduct is not up to the standards as likely. Needs to be improved.It is a 4 step process-1.Verbal Warning 2.Written Warning 3. Inform the employee about the decision 4. Appeal if the employee wants to make a appeal against the decision. Implication :- Marriott can conduct the disciplinary with an employee only when there is a violation of organisation policies or in the case of employee is under performing. Marriott should have enough evidence to take disciplinary action against the employee. Application:- Marriott should follow disciplinary procedure in a formal method, everything should be recorded for reference. Proper investigation needs to be done by the employer before coming to a decision. Employee will get a opportunity appeal against the decision. Employee has the right to demand explanation for the employer, on the decision. Employer may suspend the employee during the disciplinary process is going on. www.acas.org.uk Organisation :- National Minimum WageAct:- This Act was brought into practice in 1998, the objective behind this law was to a minimum wage that the employer(Marriott) needs to pay his employee. National Minimum wage differs depending on the employee age 5.73 to 5.80 an hour for aged 22 and over. 4.77 to 4.83 an hour for aged 18 to 21 years. 3.53 to 3.57 an hour for aged 16 to 17 years. Implication :- Labour cost of Marriott would be soaring, has they will have to give out a major portion from their income towards wages. Marriott will have to cut working hours of the employee to keep a control on labour cost. Marriott may layoff few of their employees, which will lead to unemployment. Application :- Marriott should re -plan their strategy Marriott may have to increase their room charges or menu price as they have to cover the rise in employee wages. Latest changes in the wages needs to be communicated to all departments and effective date as well. During the Peak time of the business, Marriott will have to hire temporary workers to meet the demand. www.direct.gov.uk