Impact of Employee Relations

8/13/2019 Impact of Employee Relations

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Chapter 1

Introduction

In this chapter Human Resource Management (HRM), Employee Relations, Conflict

handling, Unions and CBA, iscipline, !articipati"e #eadership, Benefits, $raining, Moti"ation,

and Employee !erformance ha"e %een discussed& $he changing role of ER Managers in current

corporate scenario, change management and the significant impact of some employee relation

practices on performance of employees are also discussed in detail& 'e further ha"e discussed in

this chapter the right ey !erformance Indicators to determine performance of employees after

practicing employee relations&

1.1 Overview

Employee Relations is a set of organiational functions and practices that deals *ith issues

related to people as staffing, compensation and %enefits, performance management, organiation

de"elopment, health and safety, communication, and administration& Employee Relation !ractices

are "ie*ed as am%iguous o"er the past years& Competition forced Employee Relations to perform a

strategic role as a %usiness partner instead of adopting ER practices only to ta+e disciplinary actions

and ad"ocating employees&

Michael (--.) defined that Employee Relations is to manage relationship %et*een

employer and employees *ith ultimate o%/ecti"ity of achie"ing optimum le"el of producti"ity in

terms of goods and ser"ices, employee moti"ation ta+ing pre"enti"e measures to resol"e pro%lems

that affect ad"ersely the *or+ing en"ironment& Employee Relation Managers e0ercise their

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e0pertise to pro"ide guidelines to the line managers ho* to impro"e performance and %eha"ior of

the employees& Employee Relation Managers pro"ide assistance to the Business Managers in

resol"ing employee grie"ances, disputes and legal matters& $his is one of the %asic responsi%ility of

Employee Relations epartment to pro"ide information to internal customers a%out rules,

regulations, policies, goals and targets of the organiations to communicate "ision and mission of

the Management&

Companies pro"ide %est 1uality ser"ices en/oy high le"el of customer retention and

comparati"ely good rate of employee retention& Customers Retention leads to good %usiness and

ultimately increases employee retention le"el& Retention of employees refers to satisfied employees

that results loyal customers& Employees are considered as internal customer as they re1uire the same

le"el of satisfaction against their ser"ices rendered for the company as the customer of corporate

ser"ices or corporate products re1uires& Employee Relations deal its employees as its customer

%ecause ER Managers run their day to day %usiness *ith the help of its employees and for these

employees& 2atisfied customers e0hi%it re"enue gro*th and firm3s le"el of performance&

!rogressi"e Employee Relations practices are found %ehind success of leading organiations& ER

practices are commonly +no*n %y the traditional titles %ut it is up to the management that chooses

the %est fit practices to fulfill the re1uirements matching to the culture of the organiation&

4rganiations implement Employee Relation !ractices to polish s+ills of its employees *hich

ultimately lead to %etter organiational performance&

ER practices impart a significant role to enhance performance of organiations indirectly&

!erformance of employee depends upon /o% satisfaction, compensation and %enefits structure,

re*ard plans, promotions, moti"ation, en"ironment, training and succession planning& Along *ith

this, modern tools, techni1ues and sophisticated technology used %y organiations for Employee

Relations create competiti"e ad"antage o"er competitors& !erformance Managementof Employees

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is a comple0 and integrated process of setting up a common employees3understanding a%out targets

to %e achie"ed in an organiation and aligning the corporate o%/ecti"es*ith the measures li+e s+ills,

competencies re1uired for a /o%, employee de"elopment plans and the ultimate results deli"ered %y

them& $he main focus of performance management is on continuous impro"ement, learning

ad"anced and ne* technologies and s+ill de"elopment to achie"e set targets through o"erall

corporate strategyand to construct a *or+forcethat can perform *ith the highest standards& $he

responsi%ilities of Employee Relations epartment ha"e %een "ie*ed as am%iguous o"er the past

years& By the e"ol"ing Information $echnology and arising need for ne* management techni1ues

ER professionals *ere gi"en importance& ER department enriches organiation from 5o%

Identification to E0it Inter"ie*s& It *as not clear to intellectuals *hether to assign manpo*er

handling duty to Accounts or to Admin Managers& ER *as not clear in its responsi%ility *hene"er

esta%lished& ERM *as called on to de"elop systems to increase performance&

2trategic assets are difficult to imitate and specialied HR resources create competiti"e

ad"antage& ER !rofessionals must choose the practices *hich are %est fit to the en"ironment of their

organiation& $he set of practices should %e adopted *hich is positi"ely related to performance and

for this purpose Business Managers use modern techni1ues to chec+ and implement %est fit

practices& It has %een o%ser"ed that a set of ER !ractices %est fit for an organiation is found 6ot 7it

for the other organiation dealing in the same product or ser"ice line and in the same region&

!erformance e"aluation techni1ues adopted %y ER managers and the results after performance

e"aluation are found politically, regionally, religiously, personally and professionally %iased& $hese

factors create great impact *hile e"aluating performance of a set of ER practices implemented& In

some organiation re*ard and %onus structure might %e a reason of high performance especially in

the profession of sales and mar+eting of 7MC8s& 2ales %ased incenti"es and re*ards influence

performance of sales people and resulting high performance of the organiation& ER !ractices *ill

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play a "ital role in the performance of an organiation only if these are aligned *ith o"erall

corporate strategy&

Competition %et*een Administrati"e and ER !ractices forced ER Managers to

perform a strategic role of a %usiness partner for the parent organiations& ER Managers are facing

pro%lems in shifting their functions from an ordinary Administrator to a 9Change Manager:&

Companies rate them as a"erage and identify their %usiness partner3s s+ills as area for impro"ement .

Business and *or+ pressure on ER professionals restrict them to perform routine administrati"e

*or+ and they are not a%le yet to %ring changes in their organiations through continuous HR

processes& It is generally %elie"ed that responsi%ilities of ER made ER Managers strategist and

dedicated to add "alue to the %usiness and corporate o%/ecti"es&

Employee !erformance is directly associated *ith the results demanded %y the Management

and therefore it is %ased upon esta%lished accurate product +no*ledge, communication style and

ultimate re*ards at the end are essentials of *or+ system that re1uires high performance from

employees& It is o%ser"ed that client3s re1uirements are positi"ely and satisfactorily fulfilled if

employees *ho are connected *ith the main stream of clients ha"e s+ills and product information

pro"ided through $raining and e"elopment& Employees al*ays are ready to go an e0tra mile and to

de"ote effort to meet customer3s demands if their performance is e"aluated, recognied and

re*arded properly& 4rganiation that ena%les employees to participate in decision ma+ing get more

%enefits and en/oy %etter results from employees as compared *ith the organiation *ho concentrate

their decision ma+ing process at top le"el& At the top staffing process has positi"e impact to

organiational performance and organiations con"ert ra* employees into %etter performers after

selection through continuous training sessions& Benefits, Re*ards and organiational en"ironment

significantly effects indi"idual and organiational performance& 8rie"ance handling procedure, /o%

security, communications from top to %ottom #ine employees and command and control system play

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"ital role in an organiation3s performance& $herefore, deployment of a suita%le set of ER practices

and procedures definitely impro"e performance of employees and in this *ay organiations get a

competiti"e ad"antage o"er their competitors through their employees&

At the time of de"elopment and e0ecution of stretegic %usiness plans firm3s human

resources are of high importance and Business Managers plan "ery carefully their human resources

considering them an integral part of the plan& $he emergence of modern Information $echnology

has shifted the role of ER Managers from traditional Administrators to strategic %usiness partner& At

this stage they are more important role in the performance of an organiation then they did it %efore&

$he training and de"elopment programs are included mainly on communications, soft s+ills,

customer3s satisfaction and ser"ices, change management, ethics, 1uality impro"isation, processes,

system management and safety& Benefits out of the training programs are customer retention,

moti"ated employees, increased employee retention, impro"isations of processes, healthy financial

figures, adoption of ne* technologies and methods, positi"e image of the organiation and safety

standards consciousness among staff&

$raining and de"elopment can %e initiated for a "ariety of reasons li+e *hen %etter

performance impro"ement is re1uired, professional de"elopment program, succession planning, to

testify performance of a ne* ER system or to train the staff a%out any system or procedure&

Employees can %e trained for soft s+ills, technical s+ills, customer ser"ice, change management,

Ethics, interpersonal relations, ;uality impro"isation, 2afety and security, and gender harassment&

Benefits from Employee $raining and e"elopment are /o% s+ills impro"ement and satisfaction,

high moti"ation, %etter financial figures, capacity %uilding up and impro"isation in methods,

inno"ation and creati"ity, positi"e company image etc& $raining can rarely sol"e pro%lems

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including !oor management, %adly drafted /o% structure and design, efficiency of e1uipment,

production, organiation and Recruitment&

In e"ery age training and de"elopment put its significant prints on the pages of history&

$raining and de"elopment created the %est armed forces, political forces, *or+forces, masses,

follo*ers, students and professional %usiness leaders *ho deli"ered something ne* to the *orld&

$raining and e"elopment is an effort to*ards impro"ing performance of employees, change in

attitude, de"eloping s+ills etc& $raining is a%out +no*ing *here employees stand and *here they

*ill %e after training& $raining is not *hat *or+ers desire %ut it3s to +no* ho* to get on it, it3s not

*here they *ant to reach %ut ho* to reach there, it3s not at *hich le"el *or+ers *ant to reach, %ut

it3s to +no* ho* to get a start& $raining is a target that *e achie"e& Employees3 moti"e and

o%/ecti"e is to %e "alua%le to remain in corporate sector& $rainings can %e of t*o types< internal

training is %eing carried out at any in house facility using 1ualified trainers as resource person and

e0ternal training is %eing organied outside the premises&

$he increasing rate of inflation and cost of li"ing in !a+istan increased difficulties and

pro%lems of its national and the employees in hospiotality sector are the most %et*een effecties of

this trend& $he %udget of a small family increased %y =.> o"er tha past . years& $he energy sector,

transportation, medicine and 7MC8 are %adly effected %y the policies of the go"ernment resulted

high cost of li"ing for the lo*er middle and poor families& In this situation, the hospitality sector is

trying hard to facilitate its *or+ers %y pro"iding them *ith "arious %enefits yet a lot is a*aited and

e0pected to do in this regard& Employees *or+ for money and money comes *hen guest got

ser"ices from their hotel and from them directly *hile ha"ing food in restaurants and ta+ing rest in

the rooms& efinitely lo* pay scales and less %enefits in the monthly pac+age creates stress upon

the employees and result unrestness *hich ultimatley leads to*ards lo* le"el of performance and

cause other dispilinary pro%lems&

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2ince the e"olution of modern ER Management, moti"ated employees and employee

turno"er in an organiation ha"e %een the core issues for ER Managers& Business managers need

moti"ated employees and *ant to retain e0perienced employees %ut did little to find real time

solutions& $his study has %een conducted to e0plore practices and theories to retain e0perienced

employees and to moti"ate them at *or+ stations& Issue of employee retention affects the

performance of the entire company& 4rganiations are realiing that their people are, %y far, their

most important asset& Moti"ation creates passion leading to performance& 'e came up *ith some

useful re*ards that cost less %ut resulted significantly& $he most effecti"e *ere Appreciation #etters,

paid $ime off from *or+, 2elf?respect, 7le0i%le timing and lunch hours and performance re"ie*

meetings& 4rganiations moti"ate employees %y in"esting in them financially and emotionally and in

return they result positi"ely&

Hotel sector of !a+istan offers a composite pac+age for its employees %enefits including

minimum confirmation period, uniform, laundry, food, medical, life insurance, old age fund, social

security, pro"ident fund, annual %onus, annual increases, annual performance e"aluation, salary

ranges as defined %y legislators, annual and medical lea"es, duty hours, gaetted holidays,

compensatory lea"es, employee of the month a*ard, employee %irthday parties, employee ledgers

discounts, annual employee day, training sessions, *ell defined diciplinary procedures and

promotion plans& $hese %enefits certainly ha"e impact on the performance of the employees&

Although there is a retention pro%lem in the industry yet employees gro* as the cutlture of the hotel

industry is the same despite regional differences& In hospitality industry of !a+istan, Corporates

adopted state of the art techni1ues to moti"ate its employees as this industry li+e in the other parts of

the *orld, is facing high turno"er and tardiness& $hese techni1ues include Appreciation #etter,

Honesty A*ards, Employee of the Month and 2uper"isor of the Month A*ards, Cash A*ards,

Recreational $ours, Annual Employee ay and Birthday !arties at the end of the month for the

employees *hose %irthday fall in that month& 2econdly, annual increments, promotions *ithin and

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other %enefits li+e 7ood and $ransport for female staff is pro"ided along *ith medical and life

insurance etc&

In !earl Continental Hotel #ahore, 'or+ers $rade Union has %een constituted in the hotel in

accordance *ith Industrial Relations 4rdinance and is *or+ing "ery efficiently through collecti"e

%argaining agents& $he Management of the hotel is %ound to ha"e the elections periodically to elect

the mem%ers of the trade union& $he union is also loo+ing after the rights of *or+ers under an

agreement *ith the Management&

In A"ari Hotel #ahore 'or+ers union has %een esta%lished in the hotel to sol"e the pro%lems

of *or+ers from time to time& All the employees are %enefited %y increasing their salaries and a

union agreement after an inter"al of t*o years& #ast year A"ari 'or+ers Union got an increase of

Rs& ---@? to all *or+ers *or+ing in the hotel and other %enefits& A /oint *or+s council has %een

*or+ing in Hospitality Inn hotel #ahore since ecem%er -- in order to loo+ after the rights of

*or+ers of the hotel& In this connection, mem%ers of the 5oint 'or+s Council *ere elected through

a secret %allet& Meetings of the 'or+s Council are %eing held periodically&

Hospitality Industry of !a+istan is operating *ith a "ariety of employees distri%uted in

"arious departments headed %y the Managers and at the top is 8eneral Manager reporting to

Corporate 4ffice headed %y Managing irector& $he main departments are 7ood and Be"erage,

Room i"ision, 7ront 4ffice, Engineering, Mar+eting, 7inance, HR, 2ecurity, !urchase and !u%lic

Relations& Including other facilities and ser"ices are dining halls, %an1uettes, s*imming pool,

Health clu%, %usiness centre and octor3s room& 2er"ices professions li+e Hotels and 7oods

*orld*ide are certainly profita%le than the other industries& Hospitality industry of !a+istan is

struggling due to increasing efforts to maintain peace in the *orld and !a+istan is under direct

influence of leading countries %ut progress rate of Hotels is not %ad as compare to the past figures&

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$he 1uality of ser"ice pro"ided %y the food and %e"erage, front office and house+eeping areas of

hotels played a "ital role in progress as *ell as in earning profits& 7oreign in"estment is connected

to the peace and en"ironment of the local areas& In some areas li+e main cities, hotel %usiness seems

ma+ing progress %ut unfortunately un?restness pre"ails in the main tourist areas li+e 2*at, Chatral,

arachi, ;uetta etc&

Hospitality sector of !a+istan can impro"e %y pro"iding %etter ser"ices, policies, employee

%enefits, employee career gro*th plans, ne* opportunities and %etter remuneration pac+ages& $he

o%/ecti"e of this study is to identify "arious trends in this sector in !a+istan< *or+ing conditions and

en"ironment for employees< "arious le"els of employment at "arious cadres< e1ual employment

opportunities< se*er s+ills shortages, training and de"elopment needs etc& Hospitality industry of

!a+istan should focus on a ci"ilied *or+ culture& #o* rate of la%our *ages, poor employee career

planning and structures, informal recruitment practices, longer *or+ing hours and less retention

leads to*ards high turno"er& !rofessional careers in this sector ma+e professionals to go for *or+ in

e"ery region of the country, pro"ides employers *ith employees of di"ersified s+ills& 7emale 2taff

are performing only glamorous roles& 4rganiational structure and *or+ing conditions should %e

impro"ed to pro"ide e1ual employment opportunity&

Although the e"olution of Hotel industry is associated *ith the modern ci"iliation yet *e

see that "arious segments of this sector ha"e /ust entered into a ne* era of corporate culture& Hotel

Industry *as ne"er on priority list *hile formulating 6ational Economic !olicies of !a+istan&

Although *e ha"e rich natural resources to promote our hotel industry yet lac+ of interest and

proper trained manpo*er are main hindrance in achie"ing set targets& Among the most "isited areas

of !a+istan *here tourism can %e de"eloped *ith minimum efforts are $har desert, $hatha,

Mohen/o?aro, $e0ila, Hasan A%daal, 6an+ana 2ahi%, Muree, 8ilgit, 2a+ardu, Chalas, aghan,

6araan, 2aif ul Malu+, 6eelum aley, 2a*at, Mala+and, alam, Badin, Malam 5a%a and many

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more *orth seeing places& $he pu%lic and pri"ate sector partnership can create a difference in these

areas& Being underde"eloped country, !a+istan doesn3t ha"e many sectors *hich contri%ute in its

annual gro*th& Hospitality is potential Industry that can contri%ute much in the de"elopment of and

gro*th rate of !a+istani economy if enough sources are pro"ided and utilied properly&

It is the human resource that can3t %e imitated or stolen %ut can %e de"eloped in due course&

Here the need arises to e0plore Employee Relation !ractices and to e"aluate its impact of

performance of employees that ultimately leads to organiational performance to*ards success&

E"aluation of "arious +no*n employee relation !ractices certainly *ill lead the researcher to*ards

finding %est practices of them that ha"e greater impact on employee performance&

In order to understand the *or+ing style, en"ironment, organiational structure and

standards of ser"ices in Hospitality sector of !a+istan !earl Continental #ahore set an e0ample&

!earl Continental a . 2tar hotel property located in the centre of #ahore& $he property o*ns more

than -- rooms included 2tandard, Atrium elu0e and #u0urious 2uites& Hotel pro"ides electronic

+eys, direct dialing, safe %o0es, $ Channels and a planted Mini%ar in the rooms& Hotel !ro"ides

Airline 4ffices, Boo+stores, Car !ar+ing, 8old and 5e*eler 2hops, House octor, Business Centre,

$ra"el es+, #aundry, !astry 2hop, Hour Room 2er"ice and a !harmacy& Hotel pro"ides food

and %e"erages through D restaurants including Marco !olo, umpu+ht, $aipan, Royal Elephant,

Bu+hara, 6adia Coffee 2hop, 2tea+ House, Ice Cream !arlor, Ba+ery 2hop, Conference Room and

Ban1uet Halls. Hotel offers for its customers a modern 7itness Clu% *ith the ser"ices of 2auna,

Refle0ology, 2team $herapy, Hydrotherapy, #ap !ool, Massage, $ennis Court, 2*imming !ool and

a gymnasium& 4ther departments are 7ront 4ffice< House eeping etc are the same as are present in

the industry3s other hotels& In this *ay !earl Continental hotel en/oys more than -- room nights

per day *hich is the ma0imum share in the mar+et of #ahore, more than .-- room nights in

Ra*alpindi, -- room nights in !C arachi and -- room nights in !C !esha*ar&

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Figure 1.1 Organizational Structure of Hotels

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$he organiation of hotel starts from the Chairman and tra"els do*n to the !resident and

Managing irector& M usually is responsi%le for the achie"ement of set corporate o%/ecti"es

through the organiation of corporate office and operations of the hotel& Corporate office is

responsi%le for corporate related affairs headed %y the Chief 7inancial 4fficer& irector Business

e"elopment is and artificial person reporting to Managing irector for the operations and sales of

!ermit Room as it is called in !a+istan and #i1uor 2ection in other parts of the *orld& 8eneral

Manger %asically is the official responsi%le for achie"ement of corporate o%/ecti"es set for the hotel&

He performs routine tas+s *ith the help of Head of the epartments& Chairman, !resident and M

are $4! E0ecuti"es& B, C74, 8M and Head of the epartments are mem%ers of 2enior

Management&

irector@ Manager 7ood and Be"erage is responsi%le for 2ales of related property, food and

%e"erage items, outdoor catering and pro"iding ser"ices in due course& $he property includes

Ban1uets, Meeting and E"ent Rooms etc& 7ood and Be"erage includes soft drin+s, /uices,

Continental, !a+istani, Chinese and other hot +itchen food& 4utdoor catering for marriages and

conferences and 2er"ices referred to the *aiter ser"ices& $he staff includes 'aiter, Captain,

Restaurants Mangers, Ban1uet Managers, Ban1uet Coordinator, Ban1uet 2ales Manager, Materdi,

Assistant 7ood and Be"erage Manager, E0ecuti"e Chef, Continental Chef, Chinese Chef, !a+istani

Chef, BB; Chef, Butcher, Chef e !artie, Chief 2te*ard and ish*ashers&

Manager Room i"ision is responsi%le for 7ront 4ffice 4perations including !hone

E0change, Reser"ation, Reception, 8uest Relation, Concierge, Business Centre, !ar+ing and

ri"ers& In small properties 7ront 4ffice Manager and E0ecuti"e House eeper replace Room

i"ision Manager& E0ecuti"e House +eeper reports to Manager Room i"ision for Maintenance and

preparation of 8uest rooms for guests after, %efore and during their stay, 7lo*er arrangements,

mini%ar maintenance, ecoration, #aundry, Cleanliness of o"erall property and arrangements for

Uniform and 8uest 2upplies&

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Holiday Inn International located in the city of #ahore is a to*er type %uilding *ith D floors

consists of - Rooms including E0ecuti"e 2uites F elu0e 2uites (all are centrally Air?

conditioned @ Heated)& $he property consists of car par+ing for guests, offices of HRM, $ime 4ffice

2ection, 2ecurity, Engineering, House+eeping, #aundry 2ection, Male staff loc+ers, *ashrooms,

itchen, Cafeteria, Accounting 4ffice, affodils Ban1uet Hall, E0ecuti"e Conference Room, Room

2er"ices, !ermit Room, 7ront 4ffice epartment including Reception, Business Center, Concierge,

Arts F Crafts 2hop, !astry 2hop, #ounge and t*o Restaurants (#ahore 8ates and Red #otus)& $he

E0ecuti"e 4ffice, 7FB 4ffice, 2ales F Mar+eting epartment, Elite Clu%, E0ecuti"e Board Room

and Blossom3s Ban1uet Hall are of *orth seeing& Hotel consists of - guestrooms *ith one

9E0ecuti"e Clu% 7loor: and 8ym& 2auna Bath, 2team Bath, 5acui, 2cissors Men3s 2aloon and

Billiard Room facilities are pro"ided for the guests& 4n /oining employees are gi"en orientation

training %y the Human Resource epartment and departmental trainers& RE train and assist

employees ho* to perform their duties in the most efficient manner& Employees are %eing pro"ided

a hand%oo+ that is prepared to pro"ide employees information a%out the hotel and there are many

other things they should learn concerning *hat is e0pected of them& Employee Relations train staff

of the hotel to impro"e their !hysical appearance, information a%out property and its facilities,

grooming, *or+ ethics and interpersonal relations&

1.2 Proble Stateent

$his study is an attempt and aimed to find the Impact of Employee Relations !ractices on

Employee !erformance in the Hospitality Industry of !a+istan& $hese Employee Relation !ractices

include Conflict handling, Unions, iscipline, !articipati"e #eadership, Benefits and $raining&

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1.! Ob"ective and Purpose of the Stud#

$he o%/ecti"e of this study is to understand Employee Relation Management Role in

enhancement of employee performance in the Hospitality sector of !a+istan& It is essential to

understand the effecti"eness of Employee Relations acti"ities and practices *hich are contri%uting

positi"ely to*ards Employee !erformance& 7or this purpose, e"aluation techni1ues ha"e %een opted

to find out ho* important "arious ER !ractices are in enhancing !erformance of Employees and this

*ill help in understanding relationship %et*een 4rganiational !erformance and Employee

!erformance& After detailed study of "arious ER !ractices, a set of si0 significant practices has %een

selected to conduct this study *hich reflects the impact of these practices on the !erformance of

Employees resulting ultimate 4rganiational !erformance of Hospitality Industry 2ector&

Any corporate in the %usiness sector is for the same purpose that is ma0imiation of profit

and minimiation of e0penses& $his o%/ecti"e is the same and is achie"ed through Employee

Relation !ractices& E"ery corporate handles its human resources differently +eeping in "ie* its

products and ser"ices present in the mar+et& Corporates practice Employee Relation practices to

handle its Human Resource& $hese practices are common %ut the techni1ues are different& $hese

!ractices someho* create an impact on the performance of employees&

$he purpose of this research is to e"aluate impact of Employee Relations !ractices on the

performance of employees *or+ing in the hotel industry of !a+istan&

1.$ Significance of the Stud#

$he hotel set ups usually offers ser"ices to their customers of personal nature and therefore

feed%ac+ on the ser"ice standards is re1uired %y them& $his feed%ac+ is "ery helpful in measuring

the standard of ser"ices rendered %y their employees& Employee are hired and trained %y the

hospitality industry for this purpose& $he nature of ser"ices ma+es these organiations inclined

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to*ards Employee Relation !ractices adopted %y the Employee Relation Managers& A set of ER

!ractices of homogeneous nature in all hotels is *or+ing& $he nature of Employee Relation

!ractices may %e the same %ut impact is different and "aries from hotel to hotel due to their star

ratings&

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Chapter 2

%iterature &eview

Employee Relations still is struggling to get a strategic position in any organiation %ut its

function of $raining and e"elopment got recognition long %efore and proper attention since the

e"olution of human %eings on earth& In this chapter re"ie* of significant literature is %eing

discussed&

Significant %iterature

Ar%a%, Mahmood, Ayou%, F Hussain (-) reported employee retention rate at 2erena

7aisala%ad due to $raining and de"elopment, %alanced *or+ing life and satisfaction le"el of

employees at /o%s, re*ard or salaries affected their retention le"el least& 6o dou%t that employees

sho*ed their concerns on rate of *ages and salaries, the reason is cost of li"ing that tends to

increase in !a+istan& !restige, learning en"ironment, promotions at upper le"els, career gro*th,

po*er to ta+e decisions and o*nership, facilities, ease of communication, retirement plans and

fle0i%ility in *or+ are the reason of employee retention and moti"ation at 2arena 7aisala%ad& $hese

factors ultimately enhance the employee performance in hospitality industry&

Conine (-) descri%ed that disciplinary programs in organiations play important role in

formulating attitudes of employees& iscipline is focused on compliance *ith rules, regulations and

policies defined %y the Corporates&By the increased influence of Unions and a dramatic shift in

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attitude of the employees the ER terms such as 9no?fault: and 9progressi"e discipline: %ecome

apparent& Employers are also e0hausted of increasing legal impositions and unions& $he modern era

ma+es companies and its policies related to the employee discipline more smooth therefore the

Business Managers li+e to operate in an open and less layered hierarchy system *here employees

*ould perform %est using self?discipline techni1ues, clearly defined mutual goals and for the mutual

%enefits& He presented a model for hospitality sector to %uild a mutual commitment model of

employee discipline in *hich he states that 7irstly ma+e a clear o%/ecti"e statement for its

employees defining relationship %et*een employee and his super"isor on mutual trust, respect, self?

discipline, outstanding ser"ice to guests, mutual strengths, team*or+, admit and correct mista+es,

responsi%ility acceptance for actions and conse1uences of %eha"iors& 2econdly, Build a

Management $eam through Recruitment, continuous $raining and Retaining !assionate and

Committed Managers& 2pend on their professional coaching and personalied de"elopment plans to

sharpen their Management and #eadership s+ills& $hese Management $eam mem%ers *ould %e

utilied as counselors for /unior managers&$hirdly, 7ocus on the A%solutes of 2elf?discipline& rop

the traditional employee hand%oo+ and de"elop a short list of performance 9a%solutes: that *ill

help out employees identifying important performance areas li+e hospitality gesture, respect for

guests, fello* employees and property& 7ourthly 6otice their tone means instead of using

impersonal and third?person language, use 9you: and 9your super"isor: and the name of the

company instead of 9the Company:& It is more specific and result oriented than the traditional

language style& 7ifth, 2ystem of Employee feed%ac+ and ispute resolution, e0plore e0panded *ays

to acti"ely importune feed%ac+ from e"ery cadre of employees& 7re1uently re"isit is re1uired for

+no*ing *hat feed%ac+ is %eing gi"en and *hat3s %eing done a%out it& 2i0th, consider another type

of 9reset&: 6o dou%t employees ha"e grudges o"er situations of supposed une1ual treatment results

hard feelings, grie"ances, union campaigns and increased turno"er& 2e"enth, Measure results, is a

relia%le *ay to +no* *hether a ne* discipline policy is deri"ing results or not, is to as+ from

company employees a%out the effecti"eness of policy&

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Baloch, Ali, iani, Ahsan F Mufti (--) researched and pro"ed that a set of human

resource practices that include promotion, performance %ased compensation, periodic e"aluations

significantly and positi"ely correlate *ith the percei"ed employee performance&

Mar*at, ;ureshi F Ramay (--) pro"ed in their research that a set of se"en famous ER

Management !ractices are positi"ely significantly effect Employee3s !erformance& $hese practices

are Recruitment and 2election, 2+ill e"elopment through $rainings, !erformance E"aluations,

Career !ath, Re*ards, !articipati"e decision ma+ing and 5o% esign&

Cuthie (--) researched that moti"ation is considered an action and a status& $he

management ta+es initiati"es to create a *or+ en"ironment for employees to ma+e them self?dri"en&

Employee moti"ation as a status refers to *hich degree employers ma+e their employees moti"ated

at the end of the day to ma+e them self dri"en& Moti"ating /o% allo*s *or+ers to feel responsi%le,

second, pro"ides %asic results and third, it pro"ide performance feed%ac+ to employees on /o% done&

2ultan (--) represented 8o"ernment of !un/a%3s Industrial Act -- in *hich chapter of

2hop ste*ard and 'or+ers Management Council reads that e"ery esta%lishment *ith fifty or more

*or+men, collecti"e %argaining agent in the esta%lishment should %e nominated and *here there is

no collecti"e %argaining agent< an agent should %e elected through a secret %allot& $he elected or

nominated shop ste*ard *ill hold this office for one year& $his office holder *ill act as a

communication lin+ %et*een *or+ers and o*ners& 2tating the functions of Collecti"e Bargain

Agent he presents that the office %earer *ill assist the Management in impro"ing *or+ing

conditions and help *or+ers in settlement of pro%lems and grie"ances of *or+men& 7urther, he

referred 'or+ers Management Councilfor grie"ance and conflict handling in an hotel organiation

as e"ery such esta%lishment shall set up a 'or+ers Management Council consists of not less than

si0 mem%ers& $he *or+er participation *ill %e .-> in that council and from the Management side

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there should %e one con"ener of the Council& $hese *or+ers3 representati"es *ill hold the office for

a period of t*o years& $hese representati"es *ill participate in meetings of Council and matters

related to Management G #a%our issues may %e discussed in meetings& $he functions of the Council

*ill %e securing and preser"ing good la%our management relations, impro"ement in production and

efficiency, fi0ation of /o% and la%our rates, regrouping, transfers, principles of remuneration,

remuneration methods, pro"ision of facilities for contract *or+ers, maintaining sympathy %et*een

employer and the *or+ers, settlement of disputes through negotiations, /o% security, safety, health

and /o% satisfaction, education facilities, training etc&

Ho*es (--) researched that %etter communication and attention to personal needs of

employees are to impro"e moti"ation and performance& $hese approaches did little to sustain

impro"ed performance& 7actors that moti"ate employees significantly are $argets and o%/ecti"es

2etting, Measuring performance and pro"iding 7eed%ac+, In"ol"ement in strategic decision ma+ing,

organiational "alues, Re*ards and Recognition, 5o% esign, #eadership< %asically people are

moti"ated %y *hat they "alue& If *e analye, scholars are in the same direction *hile e"aluating

influencing factors of moti"ation and retention in an organiation %ut at the time of setting up

importance le"el they all differ from one?an?other& 2ome gi"e importance to social "alues first,

some to psychological factors and some put financial factors at the top of the list&

2mith (--) stated that 6igerian 4rganiations *ho are focusing on *or+force

de"elopment, are mo"ing to*ards a more competiti"e and producti"e *or+force& 2uccessful

companies, *ho in"est in s+ills de"elopment process of employees and recognie efforts of

employees, impro"ed their profits and financial figures far more than other do& 'or+force

de"elopment is a crucial in"estment planning that %rings a%out results& Results suggest that training

module used, the s+ill de"eloped and the training need assessments are related to the effecti"eness

of s+ill de"elopment programs&

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Anton (--D) researched that Businesses are recogniing people *ho are s+illed,

+no*ledgea%le and moti"ated and can ma+e a significant difference& Competency is de"eloped

through education, training, *or+ing e0posures, s+ill de"elopment, reinforcement and interpersonal

roles& Economic %enefits of training and de"elopment include re"enue, 1uality, producti"ity, cost,

cycle time and increased return to shareholders& He stated that the senior leadership role in the

training and de"elopment includes, de"eloping a*areness, demonstrating commitment, integrating

employee de"elopment plan in the strategic plan and de"eloping competent HR professionals in the

organiation& e"eloping employees is a %ig milestone yet to achie"e for the %usiness leaders&

Hansen (--D) stated that Air 7orce as+ed mem%ers to increase producti"ity as significant

do*nsiing created a need for HR Impro"ement and employees had to perform more& Air 7orce

sent officers to get +no*ledge and s+ills at 2taff Colleges&

'er%ler F Harris (--D) researched that employees are ready to ma+e an e0tra effort if they

are satisfied *ith strategic decisions of their organiations& Employees gi"e importance to

employers for their communication procedures that affect their efficiency and moti"ation le"el&

!oor communication from management is al*ays at the top of the list& $oo many rules, less career

enhancement plans, sense of %eing ignored, a%sence of training, comple0 strategy are far %elo* in

the list&

Asghar F 2iddi (--) reports that apprenticeship training is used to ensure a"aila%ility of

s+illed employees in !a+istan as per Apprenticeship 4rdinance D, employers are lia%le to

pro"ide on /o% apprenticeship opportunity to graduate students of "arious trades li+e electrical,

mechanical, chemical, te0tile, 1uantity sur"eyors and staff of hotel sector, and they pay them a

nominal scholarship *hile *or+ing as trainee or apprentice %ut after completion of training some

employers pro"ide them permanent /o%s&

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Afa1 F han (--) reported training for trades in !a+istan3s hotels that are Management,

safety F health, Communication, 2ales, reser"ation, Customer Relations, House+eeping, #aundry,

Chef, 8uest 2er"ices, Room 2er"ices, 'aiters, #anguage 2+ills, Coo+ing and hygiene etc& Reports

reflect that employees sho*ed a positi"e increase in their performance after training as compared to

pre"ious e"aluations, in *or+ safety, hotel hygiene, guest interactions and room3s preparation and

food hygiene training to hotel *or+ers *ill ha"e a greater effect on attitude&

5ohn (--=) stated that HR responsi%ilities are organiational design, planning, *or+

analysis, restructuring, /o% design, recruitment, orientation, selection, promotion, termination, *or+

performance, training, re*ards, #a%or la*, health and safety issues&

7ida (--=) researched that *here role of leadership is supporti"e< *here employers ta+e

interest in efforts of HR in training and de"elopment of employees& Effecti"e training and

de"elopment can %ring significant returns as a +ey dri"erin sustaining a competiti"e ad"antage&

2+illed manpo*er is capa%le and ta+es interest in getting control o"er their /o%s as they ac1uire

positi"e attitudes& 7urther he stated that 7irms human resources are training, e0perience,

relationships and insight of managers and HR acti"ities do not directly increase performance le"el of

organiations, it helps increasing s+ills and +no*ledge of employees, it facilitates group interaction,

sharing +no*ledge and storing +no*ledge in systems and procedures. A sustaina%le competiti"e

ad"antage can %e achie"ed if %asic re1uirements are met, first is, they must add "alue to the process,

second, s+ills must %e rare, third, it can3t %e imitated and fourth, could not %e replaced&

'oods F ing (--) stated that conflict occurs to get control o"er resources, desire to

achie"e targets and interdependence, unclear po*er structure, struggle to en/oy %etter po*er le"el

and status, Communication %arriers and differences in e0perties& It is reflected from their study that

managers can handle it through their #istening s+ills, 7eed%ac+ s+ills, Conflict?management styles,

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selection of right conflict, E"aluation of participants in conflicts, assessing sources and %y +no*ing

and opting %est conflict management options& 7urther, Competiti"e 2trategy should %e adopted

*hile dealing *ith conflicts of important nature only to a"oid reputation of hardnosed manager and

for this purpose, first 2eparate people from pro%lem, second 7ocus on *hat people really mean,

third In"ent potion for mutual gain and fourth Use o%/ecti"e criteria:

4+oroafor (--) further analyed the set of Employee Relations *hich *as presented %y

U%e+u (D)and stated that these are also applica%le in Hotel Industry %ut after ma+ing a fe*

modifications& He e0amined that the management of la%our relations re"ol"es around interaction

%et*een management and employees on these matter and the Management reser"es the rights to

manage, ta+e decisions, hire and fire, and defend other company3s prerogati"es& Management

%elie"es that their rights are their prerogati"es and that no%ody should encroach into that area and

the Company retains the e0clusi"e right and responsi%ility to manage the %usiness and plant and to

direct the *or+ing forces& He stated that the right of union here refers to the area *here %oth

management and la%our should ta+e /oint responsi%ility for certain actions& Another union right is

Jright of recognition %y the management3& In Hotels, a%o"e rights are accepta%le in the la%our ?

management relationship& 7rom time to time, pro%lems come from these t*o rights areas? 9 rights to

recognition: and 9right to participate: in decision ma+ing processes& In the final analysis of his

research he stated that the parties should realistically, interpret the rights and prerogati"es and not to

gi"e e0cessi"e and undue emphasis on them so as to foster good management@ la%our relationship

*ithin Hotel and $ourism esta%lishments& 4+oroafor studied that 2u%contracting, Un1ualified

Assumption, Unfair #a%our !ractices? 'rongful ismissal, enial of 7ringe Benefits, and istrust,

$hreat and 7ear are the conflicts that usually ta+e place in hotel industry&

Ba%atia, 2ipos, Ispas, F 6agy (--.) studied that successful #eaders understand inno"ation

as gro*th achie"ed through the %est HR *ith a common persistent attitude and eal to perform to

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sol"e pro%lems and for shifting their ideology into real practices& Inno"ation is al*ays has %ases on

your organiational resources and capa%ility to recognie and con"erting chances into confirmed

success& $here are three fundamental characteristics of an efficient leader are Integrity, !artnership

Culture and Moti"ator& And #eaders in this hospitality industry must %e "ery close to their

employees and they really must encourage support in the organiation& Integrity, 2hared 2uccess,

Moti"ation and Inno"ation lead to*ards %etter employee performance and ultimately it is

organiational success&

7rancis (--.) states that Continuous Impro"ement is an approach to organiational change

re1uires acti"e in"ol"ement of s+illed and moti"ated employees possi%le through training and

de"elopment& Employees are e0pected to participate in "arious organiational change acti"ities

aimed at impro"ing organiational performance& $he sustained need for training and de"elopment

arises to maintain superiority in mar+et, de"eloping s+ills of employee and their +no*ledge and

increasing organiational producti"ity&

Arthuer, Bennett, Edens, F Bell (--) researched that the training need assessment and

effecti"eness of training sessions are correlated *ith each other& In the design of training programs,

identify the /o% re1uirements to %e trained, identifying participants for the training sessions and the

training programs should result positi"ely&

Bro*n F 4stroff (--) state that HRM system is a situation that occurs *here system is an

authority considering Human Resource Management functions as of highly relia%le and

sophisticated acti"ity& $his is a situation *here HRM significantly en/oys support of top leadership

in an organiation and *here optimum performance le"el is achie"ed %y in"esting in famous

Human Resource practices and functions& $hey further ela%orate that high performance rate of

employees can %e achie"ed %y gi"ing utmost preference to HRM !ractices including top

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leadership3s %eliefs on the importance of human capital, in"esting in human resources and *ith a

participation in decision ma+ing of HRM professionals in the organiational and corporate strategic

planning process& $heir study pro"es that high le"el of performance standards and HRM practices

are significantly related&

Collier (--) stated that oorganiations consist of people and resources and people need to

%e dri"en to*ards the achie"ement of set corporate o%/ecti"es& Employees3 performance to*ards the

achie"ement of corporate goals needs to %e pursued to ensure success in due course& It is the

management that +eeps thrust of the %usiness acti"ities to*ards success and at any point in time if

the management feels that the employee performance fall %elo* the standards then correcti"e action

should %e ta+en& In this respect discipline should %e re1uired to maintain positi"e performance and

progressi"e %eha"ior of employees and therefore management is responsi%le to manage this

discipline& irectly and indirectly he relates discipline and performance closely& $he hotel industry

is la%our intensi"e and hotel guests li+e to %e ser"ed *hen staying in a hotel& $his phenomenon

leads the management to encourage *or+ers to pro"ide the %est ser"ices as guests e0pect&

Employees at *or+ ha"e KgoodK and K%adK days or producti"e and less producti"e days and that

time the management3s responsi%ility is to moti"ate them through the %est possi%le disciplinary

practices to perform in a *ay that ma+e guests happy and ultimately to en/oy guest retention&

Management should ma+e sure that the standards of performance are achie"ed through %est

practices and if not, appropriate discipline, in the form of correcti"e action, *ould moti"ate and lead

employees to*ards performance of e0pected standards and %eha"iours& He researched that senior

management does not manage discipline correctly and conducts the discipline that middle managers

should %e conducting& $he senior management doesn3t allo* middle management to implement

disciplinary practices although these are negotiated procedures& $he disciplinary procedures do not

specify the authority in this respect and top management is hesitant to frame out the authority to

middle management to maintain staff discipline that leads to lo* le"el of performance& He

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presented his thought that conse1uently this style of managing discipline +eeps middle managers

a*ay from learning or gaining necessary e0perience results in %ad performance at the end& He

e0plains that the positi"e approach to correct poor performance through self?confidence, self?

discipline and competence in the *or+place in four stages *here at 2tage oneL an oral reminder that

the "iolation is not accepta%le and recommending a course of correct action& At 2tage t*oL a *ritten

reminder of the "iolation repeated and addressing that the %eha"iour or performance does not meet

accepta%le standards& A counseling session *ill %e held& 2tage three *here a *ritten letter of the

"iolation repeated and the in1uiry from such employee to correct the situation, employee needs to

commit to the correct %eha"iour or performance& At this stage it *ould %e made clear that training

and time *ould %e gi"en to meet the re1uired standard and at 2tage fourL should the standard still

not %e met, the employee should terminate the employment %ecause the agreement to meet the

standard *as %ro+en& He stated that that this disciplinary procedure *ill surely put impact on

employee performance& He e0plains that top and senior management le"els are responsi%le for the

performance of a *hole company and employees, thus& $his may include some /unior and middle

managers under their direct control& $herefore, the performance of seniors *ill %e reflected from the

performance sho*n %y these /unior and middle managers under their control& $he same in the case

of these /unior and middle managers that their performance *ill %e /udged ho* *ell they manage

the employees people under their guidance& $herefore it is "isi%le that the performance tum%les

do*n the line from senior management to %ottom *or+ers through the chain of command in the

form of *ell disciplined and producti"e employees&

'allace (--) presented that %ecause of fluctuating financial profits and tight margins the

literature re"eals that *or+ing en"ironment in the hospitality industry is not an easy /o% rather it is stressful& 'or+ing in

"arious shifts that consist of longer hours to achie"e set targets and to satisfy the guests results in fatigue& 2hifts are not

predicta%le and here are fe* mid %rea+s during *or+ing hours that are longer as compare to other corporate sector& !hysically

a person should %e "ery strong to %ear stress and to *or+ in these conditions& Intrinsic in this spirited ser"ice industry is high

le"el of employee turno"er& #o* pay is a matter of concern %ecause the re1uired *or+ and s+ills are paid on the %asis of

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1ualification standards *hich are lo*er as compared to the other hospitality sectors li+e medical, police, teaching etc& His

study reflects that these trends of lo* %enefits for the employees in hotel sector results in lo* performance, tardiness and high

turno"er&

Miner"ini, Meyer F Rour+e (--) researched that the management and leadership are not

the same& Management co"ers acti"ities of planning, organiing, acti"ating and controlling

employees& Any official %y follo*ing rules, procedures, policies and designing systems and *ithout

1ualities of a leader can achie"e set standards& But the manager *ho demonstrates leadership

inspires their employees %y setting up e0amples and through e0ercising their 1ualities of acti"ating,

moti"ating and coaching people& Managers *ho ha"e com%ine 1ualities of managers and leaders are

highly "alua%le for their organiations& $hey stated that the managers *ith leadership 1ualities

+no* ho* to direct, moti"ate, communicate and reprimand people& #eadership is a %eha"iour, a

*ay of affecting the %eha"iour of others to do *hat needs to %e done& $herefore it is reflected from

their study that certainly management and leadership style does affect the performance of

employees&

Harold (--) researched that the proper use of time resource could ma0imie achie"ement

of organiational goals %y planning acti"ities and schedules& Responsi%ilities of HR can %e further

summaried as 4rganiational e"elopment, Employee Benefits, salaries, *ages and Re*ards,

!erformance Management, HR !lanning F Recruitment and 2taffing, $raining and Employee

Relations& HR Management teams main function is to analye and manage people& HR

department enriches the corporate sector hospitality industry through recruitment procedures and

ensures that staff follo*s directions %y regularly setting up targets of organiation& HR is also

responsi%le for compensation pac+ages to moti"ate employees& $hese responsi%ilities contri%ute

to*ards organiational effecti"eness&

HRM responsi%ilities ena%le lines of communication and de"elop learning processes&

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Ahmad F 2chroeder (--) researched that Human Resource Management system got e0tra

ordinary attention of ser"ice industry than production sector and this is playing an important and

"ital role in employee performance in %oth sectors& $heir study pro"ed that Employment security,

2election !rocess, integrated team*or+, participation in decision ma+ing process in organiational

design, %etter compensation and %enefits plans, massi"e training sessions, minimal status %loc+ades

and lesser *ages differences across all management le"els and communication of operational and

financial information throughout all management le"els to %ottom line employees effect employee

performance *hich reflects the performance of the organiation& Researchers named their set of %est

fir HR !ractices as Ideal?type HRM system: and they e0pected to %ring a%out highest

organiational performance %y implementing this system in the organiations& Research pro"ed that

Human Resource !ractices ha"e significant effect on Employee !erformance&

!aul F Anantharaman (-- ) esta%lished through their study that a set of HR people

management practices has significant impact o"er organiational performance *hich is measured

through the data of indi"idual employee performance& $his set is %ased upon Recruitment and

2election !rocedures, Induction $raining at the time of /oining, esigning /o%s, 'or+ place culture,

!erformance Appraisal, Benefits and Compensation, Career e"elopment !lans and 7inancial

Incenti"es& $hey stated employee that competencies of employees, $eam*or+, 4rganiational

Commitment etc& are inter"ening "aria%les *hile performance of employees *as measured through

product 1uality, time span consumed in deli"ery of goods and ser"ices, producti"ity le"el of

employees, cost of goods produced and employee retention rate&

alidas (--) presented that the hospitality industry ha"e sho*n interest in employee

empo*erment and !articipati"e #eadership& In hospitality industry empo*erment is seen as the

concept of delegating and transferring decision?ma+ing responsi%ility to employees for %etter

control and increased ser"ice standards for the entire satisfaction of customer& He raised the

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1uestion a%out the theory of participati"e leadership and employee empo*erment in hospitality

operations *hether this doctrine is rele"ant in "arious cultural en"ironments *here defendants of

this doctrine propose fundamental shifts in organiational structure, management style and ma+e

illogical affirmations that employees *ill sho* results through their performance& He conducted a

study of hotels and re"ealed that employees in hotels are more inclined to*ards empo*ered role

during deli"ery of ser"ices to guests including creati"e rule %rea+ing to please the guests&

Employees thin+ they can perform %etter if gi"en an authority to ma+e decision at the spot *here

they are ser"ing the guest *ith ultimate o%/ect of pleasing the guest& He stated that frontline

employees o"er and o"er again connect in empo*ered %eha"iour and these employees allo* rate

concessions *ithout confer *ith managers& His study reflects that employees recognie that they

ha"e no authority to function independently&

!eterson F #e*in (---) researched that grie"ance handling procedures are used to sol"e

Industrial Relation issues of employees that are directly related to their *ages, other incenti"es,

legitimate %enefits and prescri%ed rules and regulation defined %y the competent authorities&

Handy (DDD) presented his idea that if HR includes incenti"es, then it *ill ensure

satisfaction of employees leads to staff retention and loyalty&

Bacal (DD=) researched that corporations spent %illions on HR %ut financial %enefit is

minimum& His study e0plores that corporate someho* *or+ under %asic nine functions of HR

department&

Bec+er F 8erhart (DD) stated that HR can lead the organiations %eyond the limits of its

orthodo0 role to %ecome a strategic partner of the employees %eing a communication channel

%et*een employees and the Management&

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Huselid (DD.) stated in his K$he impact of human resource management practices on

turno"er, producti"ity, and corporate financial performanceK some famous human resource

management practices significantly effect corporate financial performance measured through the

indi"idual performance of employees in an organiation and these practices are personnel selection,

la%or management participation, incenti"e compensation, performance appraisal, grie"ance

procedures, information sharing, /o% design, attitude assessment, recruitment efforts, promotion

criteria and employee training&

6an+er"is (DD)reported that in Australian hotel industry unions are not effecti"e and his

study suggests that ma0imum hotels from industry ha"e less than half of their employees co"ered

%y rele"ant unions therefore this is the main reason of lo* rate of *ages and high turno"er in hotel

sector of Australia&

2tal+ F 2hulman (DD) presented that HR systems ha"e a systemic effect *hen these

systems are applied on a company3s organiational structure and these HR systems help the

organiation get solutions to the real %usiness pro%lems&

2mith (DD) researched that hotels pay their male super"isory staff salary increases in fi"e?

star category& Hotels increase *ages as a result of *age rate restructuring ordinances or ad"ices from

8o"ernment and if they don3t penalty are imposed, an Australian chain has negotiated a collect

%argain agreement *ith its employee for higher hourly rates and /o% fle0i%ilities&

Hofstede (DD) researched on a "ariety of national cultures that de"elop "arious

management styles and 7orm of 4rganiation& He %riefed a%out moti"ators, le"els of moti"ation,

and "arious cultural frame*or+s of each country and indentified four propositions of cultures that

areL disparity, mutuality, gender roles and !o*er distance& He proposed that decision ma+ing

authority to resol"e day to day affairs should %e entrusted to leading employees to facilitate them to

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respond effecti"ely and immediately to the customer re1uests and to resol"e their pro%lems& $his

participati"e leadership and employee empo*erment policy endorse a shift in leadership style of the total

1uestionnaire sent to employees&

$.$ Structure of the 3uestionnaire

$he research data *as collected through 1uestionnaire that consists of nine sections& $he

1uestionnaire consists of mainly closed?ended 1uestions&

2ection , contains 1uestions pertaining to the management of Conflict Handling in

Employee Relations such asL $olerance #e"el, Conflict Handling, Management Actions *hen

conflict comes up and impact of conflicts on employee performance&

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2ection , contains 1uestions regarding the management of Unionism in the hotel industry,

the role and effecti"eness of unions and impact of union acti"ities on employee performance&

2ection , contains 1uestions regarding the management of iscipline of Employees in the

hotels of respondents, 1uestions as+ed regarding effect of disciplinary procedures on the

performance of employees, moti"ation and disciplinary policies of the hotel&

2ection , contains 1uestions regarding leadership style of the organiation, presence and

impact of participati"e leadership on employee performance&

2ection ., contains 1uestions regarding the management of Benefits in Employee Relations

of the hotel of respondents including assistance, claims, legal %enefits and effect of %enefits on

employee performance&

2ection , contains 1uestions regarding the $raining aspect of Employee Relations on hotel

industry such as< performance gaps %efore training, presence of training facility, effecti"eness of

training sessions and "alidity of training acti"ities carried out %y the organiations of respondents&

2ection =, is consist of 1uestions to get information on Moti"ation #e"el of employees and

effecti"eness of moti"ation in employee performance&

2ection , contains 1uestions regarding the !erformance of Employees in hotel industry

%eing affected %y Moti"ation, iscipline, $raining, Conflict Handling and Unions and Benefits

structure of this industry&

$., 4ature of &esearch

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$he research nature represents the systematic in"estigation into the study of sources to

esta%lish latest conclusions& It is an attempt to determine fresh or to %ring together pre"iously

defined facts& $his research is presented on E0planatory as *ell as Causal research methods&

Chapter ,

*ata nal#sis and &esults

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In this chapter the data analysis of the "aria%le of the study are %eing presented& ata

Edition process of the collected data has %een discussed in this chapter for the purpose of analysis&

$he effect of employee relations and moti"ation on employee performance, the effect of Employee

Relations on Employee !erformance and the effect of Employee Relation on Moti"ation has %een

measured and presented in this chapter that sho*s that ho* in the presence of mediator Employee

Relation !ractices effect Employee !erformance *or+ing in the Hospitality 2ector of !a+istan&

,.1 *ata 0diting for nal#sis

A"erages of the data collected through fi"e point #i+ert scale ha"e %een ta+en against each

practice and the a"erage of all practices is ta+en to measure employee relations& 2!22 is used to run

multiple regression analysis& $he crohn%ach alpha is calculated %y using 2!22 and its "alues are

-& that is considered as e0cellent relia%ility of the 1uestionnaire&

,.2 Correlation atri5

2ome of Employee Relations aria%les are significantly and positi"ely correlated and some

Employee Relations aria%les are negati"ely and significantly correlated *hile some are

insignificantly correlated&

Conflict Handling and Union F Collecti"e Bargain Agreement are positi"ely and

significantly correlated& Conflict Handling and !articipati"e #eadership are positi"ely and

significantly correlated& Union F Collecti"e Bargain Agreement and !articipati"e #eadership are

positi"ely and significantly correlated&

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!articipati"e #eadership and $raining are positi"ely and significantly correlated&

!articipati"e #eadership and Moti"ation are positi"ely and significantly correlated& $raining and

Moti"ation are positi"ely and "ery significantly correlated&

Conflict Handling and Benefits are positi"ely %ut insignificantly correlated& Union F

Collecti"e Bargain Agreement and Benefits, Union F Collecti"e Bargain Agreement and $rainings,

Union F Collecti"e Bargain Agreement and Moti"ation, iscipline and %enefits and !articipati"e

#eadership and Benefits are positi"ely and insignificantly correlated&

Conflict Handling and iscipline, Conflict Handling and $raining, Conflict Handling and

Moti"ation, Unions F Collecti"e Bargain Agreement and iscipline, Benefits and $raining, and

Benefits and Moti"ation are negati"ely and insignificantly correlated&

iscipline and !articipati"e #eadership, iscipline and $raining and iscipline and

Moti"ation are negati"ely and "ery significantly correlated&

'able ,.1 Correlation atri5

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CH UCBA I2 !# Ben $ra Mot

CH

UCBA &DP&

I2 &D= &-

!#&P &.DPP ?&PP

Ben &=- &- & &=

$ra ?&- &. ?&=.PP &DP ?&D

Mot &D &- &-- &-= &- &---

P& Correlation is significant at the -&-. le"el (?tailed)&

PP& Correlation is significant at the -&- le"el (?tailed)&

,.! 'he 0ffect of 0plo#ee &elation and otivation on 0plo#ee Perforance

Employees !erformance has %een ta+en as dependent "aria%le and Employees Relation and

Moti"ation *ere ta+en as independent "aria%les& $he results from the analysis sho*ed the

coefficients for regression from independent "aria%les to dependent "aria%les& In order to o%ser"e

the effect of Employee Relation and Moti"ation on Employee !erformance, the 2!22 () has %een

used to run multiple regression analysis&

7ollo*ing ta%les *ere generated from regression analysis using 9Enter: method& $a%le

presents model summary, A64A and coefficients of the "aria%les&

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'able ,.2 SPSS Output for 0ffect of 0& and otivation on 0P

odel Suar#

Model R R 21uare Ad/usted R

21uare

2td Error of the

Estimate

..Da .- .= .

a !redictorsL (Constant)& Moti"ation ER

4O

Model 2um of 21uares f Mean 21uare 7 2ig

Regression

Residual

$otal

&=.

=&-D.

D&.

=

D

&==

.-

&=- .---

a !redictorsL (Constant)& Moti"ation ER%& ependent aria%le E!

Coefficients

Un?standardied Coefficients 2tandardied

Coefficients

ModelB 2td Error Bets

2ig

(Constant)

ER

Moti"ation

&.

&-=

&

&-

&-D

&-.

&.

&.

=&

&

&-

&---

&--D

&---

a ependent aria%lesL E!

In the Model 2ummary $a%le< the correlation coefficient (R) O -&.D indicates medium

positi"e correlation %et*een Employees !erformance, Employees Relation and Moti"ation& R?

s1uare indicates the proportion of "ariance in the dependent "aria%le (Employees !erformance)

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*hich can %e e0plained %y the independent "aria%les (Employees Relation and Moti"ation)& R?

21uare -&- means > "ariation in the Employees !erformance is accounted for its linear

relationship *ith the independent "aria%les (Employees Relations and Moti"ation)& $his is an

o"erall measure of the strength of association& $he "alue of R?21uare sho*s that > "ariation in

Employees Relation is %eing e0plained %y the predicting "aria%les and remaining "ariation in

Employees Relation *ould %e due to some other factors& In the A64A $a%leL of 7?2tatistic

&=- and !?"alue O -&---Q-&- sho*s that o"erall model is significant, indicating that using the

model is %etter than guessing the mean&

$he un?standardied coefficient Employees Relation O -&-= sho*s that as Employee

Relations increases one unit the Employees !erformance increase -&= unit& $his is significant as

*ith p?"alueO-&--DQ-&-& 2imilarly, Moti"ation O-& means that as moti"ation increase one unit

Employees !erformance increases -&& Moti"ation is also significant as p?"alue O -&--DQ-&-&

$herefore, %oth the independent "aria%les ha"e significant and positi"e relation *ith Employees

!erformance& $his has pro"ed the hypothesis is true that Employees Relation and Moti"ation has a

positi"e relationship *ith Employees !erformance&

$he findings of this study agree *ith the findings of "arious researchers and pro"e that

Employee Relations and Moti"ation ha"e significant impact o"er employee performance&

elaney F Huselid (DD) pro"ed through their study that a set of fit Employee Relations

!ractices *hich stimulate "arious attri%utes of employees including personal and professional s+ills,

moti"ation and *or+ structure are significantly positi"ely related to their performance that leads to

ultimate organiational performance& $hey pro"ed that if there is close correlation %et*een "arious

adopted ERM !ractices of a fit group significantly positi"ely effect performance of the organiation

and employees& $heir research pro"ed that there is a significant positi"e relationship %et*een ERM

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!ractices li+e training and selection and firm performance that is result of indi"idual performance of

employees&

Boselie, !aau*e F Richardson (--) pro"ed in their research that 4rganiations *ith

commitment human resource systems en/oys relati"ely %etter employee performance

(organiational performance) *hereas organiations that adopts control human resource systems are

far %ehind in achie"ing %etter le"el of employee performance& $heir research e0plores that

Commitment Human Resource 2ystems are including 2election !rocess, Benefits and Incenti"es,

Moti"ation, $raining, 2+ills Enhancement !rograms, ecentraliation, Empo*erment of

Employees, Conflict Handling, 5o% esigns etc&

,.$ 'he 0ffect of 0plo#ee &elations on 0plo#ee Perforance

Employee !erformance is a linear function of Employee Relations that is

E! O f (ER) O S T ER S

Employee Relation is Independent aria%le and Employee !erformance is ependent

aria%le& 7ollo*ing ta%les *ere generated from regression analysis using 9Enter: method& $a%le


'able ,.! SPSS Output for 0ffect of 0& on 0P

odel Suar#


21uare

2td Error of the

Estimate

.-=-a &--. ?&-- .

a !redictorsL (Constant)& ER

4O

Model 2um of 21uares df Mean 21uare 7 2ig

&- &.= &.-

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Regression

Residual

$otal

&-

D&-D&.

D

&-

a !redictorsL (Constant)& ER %& ependent aria%lesL E!

Coefficients

Un?standardied Coefficients 2tandardiedCoefficients

Model

B 2td Error Bets

2ig

(Constant)

ER

&=D

&-

&

&-

&-=- &DD

&=.=

&---

&.-

Employee !erformance O &=D S -& ER

In this Model 2ummary R?21uare -&--. means -&.> "ariation in the Employees !erformance is

e0plained %y its linear relationship *ith Employees Relation& $he 7 "alue -&.= *ith !? "alue -&.-

indicates that o"erall model is insignificant& $he un?standardied coefficient of Employees Relation

O -&- indicates that as Employees Relation increases unit results Employees !erformance -&-,

%ut this is insignificant as !?"alue O -&.- V -&-.&

$herefore the result reflects that in the a%sence of Moti"ation that is mediating "aria%le, the

Employee Relation ha"e no effect on Employee !erformance&

,., 'he 0ffect of 0plo#ee &elation on otivation

Moti"ation is a linear function of Employee Relations that isMoti"ation O f (ER) O S T ER S

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Employee Relation is Independent aria%le and Moti"ation is ependent aria%le&

7ollo*ing ta%les *ere generated from regression analysis using 9Enter: method& 4ut $a%le $a%le


'able ,.$ SPSS Output for 0ffect of 0& on otivation

odel Suar#


21uare

2td Error of the

Estimate

& =a &-= &- &D

a !redictorsL (Constant)& ER

4O

Model 2um of 21uares df Mean 21uare 7 2ig

Regression

Residual

$otal

&-

-&=D

&DD

D

&-

&=

D&-D &--

a !redictorsL (Constant)& ER %& ependent aria%lesL Moti"ation

Coefficients

Un?standardied Coefficients 2tandardied

Coefficients

Model

B 2td Error Bets

2ig

(Constant)

ER

&=

&

&=D

&-=

&= &.-

?&-

&---

&--

$he estimated Regression e1uation

M O &= S -& ER

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In the model summary ta%le, R?21uare -&-= means =&> "ariation in the Moti"ation is

e0plained %y its linear relationship *ith the Employees Relation& $he A664A ta%le, the 7?alue

D&-D *ith !?"alue -&-- Q -&-- sho*s that o"erall model is significant& $he un?standardied

coefficient of Employees Relation O -& means as Employees Relation increases unit results

increase in moti"ation %y -& units& $his is also significant as !?"alue -&-- is less than -&--&

$herefore the result reflects that Employee Relation has significant effect on Moti"ation *hich is

Mediating aria%le in the Model&

,.- ediated 0ffect

2o%el $est has %een carried out to test *hether the mediator (Moti"ation) transmits the

effect of Independent aria%le (Employee Relations) to a ependent aria%le (Employee

!erformance)& !reacher F Hayes (--) and !reacher F Hayes (--) used 2o%el $est for

assessing indirect effects in multiple mediator models and in simple mediation models&

A "aria%le is percei"ed a mediator to the degree it %rings the effect of an independent

"aria%le upon a dependent "aria%le& Mediation ta+es place *here Independent aria%le significantly

effects the mediator and@or *here the Independent aria%le significantly effects the ependent

aria%le directly and@or *here the mediator significantly uni1uely effects the ependent aria%le

and@or *here the effect of the Independent aria%le on the ependent aria%le reduces if mediator

is ta+en into the model&

In the figure %elo*, I is independent "aria%le i&e Employee Relation !ractices, is

dependent "aria%le i&e Employee !erformance, and A is unstandardied regression coefficient for

the relationship %et*een Employee Relations and Moti"ation& 'here sais standard error of A, B is

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unstandardied coefficient for the relationship %et*een the Moti"ation and the Employee

!erformance and s%is standard error of B&

Figure ,.! ediated 0ffects

In order to get a and sa, Regression Analysis *ith Employee Relation (I) estimating the

Moti"ation (Mediator) and in order to get % and s%, regression analysis *ith the *ith Employee

Relation (I) along*ith Moti"ation (mediator) predicting the Employee !erformance () has

%een used& $he o%tained figures for a, %, sa, and s%placed into the related fields and this calculated

the indirect effect of the ER (I) on the E! () through Moti"ation (mediator)&

$he 2o%el $est 2tatistic can %e o%tained *ith the help of follo*ing e1uation

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E1uation for 2o%el test is 9 ?"alue O aP%@2;R$(%PsaS aPs%

):

'able ,., Sobel 'est for ediation 0ffect of otivation

$he

2o%el $est gi"es ! "alue -&--.D so there is a significant effect of moti"ation (i&e& mediator) on the

employee performance along?*ith employee relation acti"ities&

'able ,.- Sobel 'est for ediation with t6statistics

'here & is the t G statistics of the Moti"ation o%tained from 2!22 4utput Coefficient

$a%le & 'here ?&- is the t G statistics of ER o%tained from 2!22 output Coefficient $a%le &

Results reflects that this is a 9Complete Mediation: case as the p?"alue -&--.D is less than (-&-.)&

$herefore there is a significant and complete mediation effect of Moti"ation %et*een Employee

Relation and Employee !erformance&

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Chapter -

Conclusion and &ecoendations

$his study finds o"erall support for the hypothesis that Employee Relations !ractices Impact

positi"ely on !erformance of Employees *or+ing in Hospitality Industry of !a+istan as the

relationship specified in Hypothesis is found to %e significant& $herefore, the proposed direct

relationships %et*een a set of Employee Relation !ractices and Moti"ation and %et*een Moti"ation

and Employee !erformance are empirically "alidated& $he mediating effect analysis reflected that a

set of si0 famous Employee Relations !ractices impact Employee !erformance significantly

through Moti"ation&

$he area of study is restricted to the +no*n cities of !a+istan as the researcher %elie"es that

the resolution in these %ig cities could %e rele"ant to the hotel industry of !a+istan& $here *as not a

good response from hoteliers *hile returning filled 1uestionnaire forms i&e& D>& Another constraint

in this research *as information& $he hotel industry in !a+istan in general is "ery loath to pro"ide

documented information saying that policies of the hotels are secret and therefore cannot %e

pro"ided& Ho*e"er, through personal contacts the re1uired information someho* gathered to

complete this study and there *ere some hoteliers *ho helped %y pro"iding the copies of policies

and procedures& A matter of concern that could ha"e %een o%"ious is the confidentiality of the

responses to the 1uestions as+ed& $he fact is that the respondents, *ho are employees of hotel

industry that is someho* orthodo0 in its nature, *ere gi"en the 1uestionnaire to complete on their

o*n& $he researcher had no *ay to +no* if the respondents got assistance of other employees in

completing the 1uestionnaire or they did it %y their o*n&

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Con"entionally focal point of Employee Relation Management system has %een "ie*ed as

short?term and the system has %een used %y the most of the organiation and ER Managers

%ureaucratically instead of aristocratic are trying to enhance employee performance& ER

!ractitioners and researchers are agreed that human resources are a source of competiti"e ad"antage

through strategically managed and implemented ER practices& Employee Relations can result

positi"ely significantly only if %est fit set of ER !ractices are adopted& Employee Relations

Managers mostly focus on administrati"e policies and procedures to maintain performance of

employees through discipline and increments *hich is not a right *ay to get results& Research

pro"ed that Moti"ational practices effect employee performance positi"ely&

&eferences

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Afa1, 7&, F han, A& (--)& Relationship of $raining 'ith Employees3 !erformance In HotelingL

!earl Continental Hotel !a+istan& e"elopment imensions International Inc&

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Management , , DG&

Armstrong, Michael (--.)& Armstrong3s Hand%oo+ of Management and #eadershipL Approaches

to HRM and #F& ogan !age #imited !u%lishing& United 2tates

Amernic, 5& (--=)& $he Impact of Human Capital Management on 2hareholder alue& ra+e

Business Re"ie* , ()&

Anton, 2&'& (--D)& $he Role of 2enior #eadership in Human Capital and $alent Management&

AR$4 International Conference& !enang, Malaysia&

Ar%a%, A&, Mahmood, B&, Ayou%, M&, F Hussain, 2& (-)& An Empirical 2tudy of Retention

Issues in Hotel IndustryL A Case 2tudy of 2erena Hotel, 7aisala%ad, !a+istan& European 5ournal of

Economics, 7inance and Administrati"e 2ciences , D&

Arthuer, '&, Bennett, '&, Edens, !&, F Bell, 2& (--)& Effecti"eness of $raining in 4rganiationsL

A Meta?Analysis of esign and E"aluation 7eatures& 5ournal of Applied !sychology ol& , ?

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Asghar, '& F 2iddi, 2& H& (--)& Apprenticeship $raining in !a+istanL A Comparati"e 2tudy of

Apprenticeship !ractices In !un/a% and European Countries& International 5ournal of $raining

Research , (), ?D&

Ba%atia, C&, 2ipos, 8&, Ispas, A&, F 6agy, A& (--.)& !roceedings of the .th '2EA2 International

Conference on Economy and Management $ransformation& #eadership style and culture for

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Bacal, R& (DD=)& $he Corporate 7ileL $he Role of Human Resource epartment&

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8o"ernments& Erasmus Uni"ersity Rotterdam, Rotterdam 2chool of Economics&

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the 92trength: 4f the HRM 2ystem& Academy of Management Re"ie* , D (), -?&

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Documents

Impact of Employee Relations