This action might not be possible to undo. Are you sure you want to continue?
“Managing and developing people in Hospitality Management”
“ Current HRM system of Emirates Group, Dubai, UAE.”
Subject :- APDS in Hospitality Management Level- BTEC Level 7 Made by – Md.Habibur Rahman Student ID- 00207541 Session- Sept.’ 2009
Submitted to – Ms. N. Gibson/Mr. N. Saleem
Table of Contents
1. Introduction..........................................................................2 2. Hospitality market and it’s factors
3. Human Resource Management 4. HR planning and strategy 5. Employee relation 6. Leadership 7. Leadership Theories 8. Performance management 9. Legislation of UAE labour market 10. 11.
Conclusion References and Notes
‘The Emirates Group’ is an international travel and tourism conglomerate public holding company with multiple business interests in the aviation, travel, tourism, hospitality and leisure industries, is a highly profitable business with a turnover of approximately US$ 12 billion. Employing more than 48,000 people across its 50 business units and associated firms, it is one of the biggest employers in the gulf region. Emirates airline is one of two key divisions in the group. With one of the youngest fleets in the sky and more than 400 awards for excellence worldwide. The other is Dnata, which provides ground handling services at 17 airports around the world, including Dubai International. They have branched out into leisure and retail, adding hotels and tourism firms to our ever-expanding portfolio. (http://www.emiratesgroupcareers.com/english/about/companies/Default.aspx, http://www.theemiratesgroup.com/english/our-company/our-company.aspx, http://en.wikipedia.org/wiki/The_Emirates_Group)
Hospitality is the relationship between a guest and a host, or the act or practice or providing care and kindness for the reception and entertainment of guests, visitors, or strangers, with liberality and goodwill. Hospitality industry, which includes hotels, restaurants, casinos, catering, resorts, membership clubs, conventions, attractions, special events, and other services for travelers and tourists. Hospitality labor market: Hospitality labor market historically relied on human resources. The role of human resources in sustaining hospitality enterprises has long been recognized (Hjalager und Andersen 2001; Baum 2007). Hotels, restaurants, bars & night clubs, travel & tourism organizations, front office of any business, leisure business, media and presentation organizations are the hospitality sector where a huge number of hospitality people are working. (http://en.wikipedia.org/wiki/Hospitality, Hospitality Employee Management and Supervision: Concepts and Practical By Kerry L. Sommerville, Human resources management for the hospitality industry By Mary L. Tanke, Supervision in the Hospitality Industry: Leading Human Resources By John R. Walker, Jack E. Miller) Factors: Like all other business organization hospitality organizations also need to consider internal and external factors. Internal factors:
Recruitment need (shortage/surplus): As a normal practice by all business organization or company, it has to be check or assess after every period or when it is necessary of the necessity of human resources before making any human resources plan of that organization. The Emirates Group Human Resource department supports the company vision by creating innovative and flexible human resource solutions. In Emirates group, the recruitment is the ongoing process where recruitments are made by the group HR evaluating it’s shortage or surplus. The company has a websites with better navigation, enhanced functionality and new features with latest and available job of the company.
Job task availability: A job task is a single independent work assignment by the HR, which results a valuable outcome. It must be observable, have a specific beginning and end, have several procedural steps and be able to be measured by its outcome. The Emirates group HR department duties responsibilities include to check and identify ‘job task availability’ which is relate to recruitment and as well give off from work or cut the shift from working hours from employees where it is possible and necessary depend on the availability of job tasks. Seasonality: most of the business organization meet or have a season where they usually involve high volume of sales or services to provide to their customers and clients. In the world very few business organizations or sectors whose are doing continuous business where they don’t need seasons. The Emirates Group Human Resources with the Department of tourism of Dubai always provide different offers, promotions, events, meeting, celebration, discounts that always bring attention of their customers and clients both on and off seasons with an target to make maximum profits through their great services.
External factors: For hospitality industry it is very important to have enough access to labors or employees. HRM is also influenced by some other external factors such as; i)Skills availability: It is very important to have skills availability to serve clients or customers. Therefore HR department need to make sure that enough skills availability ahead of time.
ii) Government regulation and law: Lot of time mangers and team leaders takes decisions that effects govt. laws. Like every other country’s regulations, Emirates group HR department also knows and follows properly the government laws and regulations. iii) Socio-culture value: it is very important to consider the socioculture values for any country. There are lot of socio-cultural issues need to know by both hospitality service receiver and provider specially management, employees, clients and customers. For example, sex or sexual related activities is not allowed in the public place of UAE where it is allow in European countries or some others countries in the world. (Managing Human Resources by George Bohlander, Scott Snell, Internal labor markets and manpower analysis by Peter B. Doeringer, Michael J. Piore, United States. Dept. of Labor, Manpower Administration, Internal labor markets and employment transitions in South Korea by Kim Sunghoon, Industrial relations and the social order by Wilbert Ellis Moore) Human Resources: Human resource is the main power of any company. To achieve goals, hospitality industry needs to pay specific attention to human resources. Therefore, any company’s HR department always needs to asses their current and up-to-date human resources before assessing human resources plan. The Emirates Group’s HR department always aware as because it is their duties and responsibilities to check and make sure it’s 50 business units and associated firms working properly by employees and employees are getting their maximum equipments, conditions, environments work related favors and benefit. There are different concepts of HRM which are such as follows; Science perspective (PODA)-Those are the concepts of Planning, Organizing, Directing and Controlling described by Fayol and Frederic Taylor. Political concept- By this concept work place is a society where there is democratic, dictator and some other leadership and management prevails. Control Concept-By this concept a management is seen as a control agent. Practical concept-see management as an activity aimed at control melioration of diverse management and complex practices. Among different function of Human resource Management, the main functions are;
Planning Stuffing Developing Monitoring
Maintaining Managing relations Managing change Evaluations
According to the Stone theory; human resource functions are specified as per the chart below; Business strategy
F e e d b a c k
Human resource planning Job analysis
(Experience, Qualification, Skills )
(Accountability, Title, Role, Duties)
Recruitment Chart: Stone model of recruitment Human resources planning: . Human Resources planning are the process of identifying and quantifying current personnel resources and futures needs in relation where plans help to tackle new initiatives or business changes such as reorganization, relocation or the introduction of new systems as well to meet the evolving demands of controlling costs and improving performance. There are three key elements involved in HR planning, these are - Data gathering, Analysis and forecasting, Succession and career planning. (Human Resource Planning by Select Knowledge / Helen Simms, Human resources management in the hospitality industry by David K. Hayes, Jack D. Ninemeier)
HRM Strategy i. ii. iii. iv. Recruitment and selection strategy Motivation strategy Training and development strategy Employee relation strategy
Employee relations strategy: Employee relations consist of all those areas of HRM that involves general relationships with employees, through collective agreements where trade unions are recognized, applied policies for employee involvement and communications; and is concerned with how to gain people’s commitment to the achievement of the organization’s business goals and objectives in a number of different situations. Effective management, engagement, development, participation and motivation of its staff are keys to the success of any organization also human resources. Culture, values, beliefs also need to consider. Employee relations strategies define the intentions of the organization about what needs to be done and what needs to be changed in the ways in which the organization manage its relation with its employees and their trade unions. The Emirates Group Human Resource department supports the company vision by creating innovative and flexible human resource solutions. Therefore recruiting, training and retaining high caliber of people is one of the core values of the business. Emirate’s operates high caliber training programs which are accessible to all individuals across the Group. There are already three types of employees’ benefits providing by the company, these are ‘cash elements, non-cash elements and additional like Concessional Travel, Emirates Card. After all I like to recommend one new packages as I bound to do, this can be ‘commission on total earning based on pay scale and their position values for the company. For example, Group operating profit, at AED 3,040 million for 2008-2009 where company can set a target of next or several coming year with a formal declarations or agreement with employees and their trade unions with an specific reward of commission if the conditional years the employees will success to achieve the company’s mention target or goals they will receive a specific portion of reward or benefit from the earnings of the company. (Strategic human resource management: a guide to action by Michael Armstrong Employee relations by John Gennard, Graham Judge)
Leadership Leadership is not a person or position, is the art to of influencing and directing people in such a way that will win their obedience, confidence, respect and loyal cooperation in achieving common objectives. It is an organizational role involves to establishing a clear vision, sharing (communicating) the vision with others, providing the information, knowledge, and methods to realize that vision, coordinating and balancing the conflicting interests of all members or stakeholders. Out of many leadership model, famous leadership models are Ohio Model, Stogdill, R.M. (1974) Model, Fielder’s Contingency Model etc. John Adair, of University of Surrey & Sandhurst, described three levels of leadership Strategy Operation Team Leadership level
• • •
Team leadership (control of a single team) Operational leadership (control of a number of teams which make up a complete operation) Strategic Leadership (control of the entire business/ organisation)
Leadership is required at all levels of an organisation, and teamwork is required to bind the teams together. A leader needs to :• • • • • • • •
Define the task Plan Brief / communicate Control Evaluate Motivate Organise Set an example
(Leadership: Theory and Practice by Peter G. Northouse, Peter G. Northouse Ethics, the heart of leadership by Joanne B. Ciulla) Types of Leadership There are different types of leadership; these are Autocratic Leadership: Autocratic leader have the authority to make decisions alone. There is close supervision by the leader. But the leadership styles has negative impact as well i.e. creative employees and team players cannot make decision unless authorize by autocratic leader where it leads to de-motivation, alienation of staffs in their workplace. Democratic Leadership: This kind of leadership encourages decision making from different perspectives through listening team’s ideas, studied them and consultant with others. Employees and workers get motivation and involvement because of sharing their ideas with the leadership to make any decision. Laissez-Faire Leadership: Laissez-Faire means ‘let do’ where leaders don’t need to give continuous feedback or supervision as the employees are highly experienced and need little supervision to obtain the expected outcome. Paternalistic Leadership: This type of Leader acts as a ‘father figure’. Paternalistic leadership is an approach based on intentionally or unintentionally. Most of the leaders sometimes act in paternalistic ways, and make decisions on behalf of followers that work out well, and it's also a reality that leaders sometimes are in a position that allows them to have information and expertise that others in the organization may lack. (http://www.scribd.com/doc/6327744/Types-of-Leadership-Styles) Theories of Leadership There are a lot of theories of leadership. These are described below shortly. Trait theories: Trait theorists are habitual patterns of behavior, thought, and emotion as well people inherit certain qualities and traits that make them better suited to leadership. A trait can be thought of as a relatively stable characteristic that causes individuals to behave in certain ways that is focused on differences between individuals. Situational and contingency theories: This theory assumes that different situations call for different characteristics; according to this group of theories, no single optimal psychographic profile of a leader exists. This theory prefers that there is no single “best” style of leadership. Effective leadership is taskrelevant and that the most successful leaders are those that adapt their
leadership style to the Maturity, which is possible through being influence to meet high attainable goals. In the Contingency theories the success of the leader is a function of various contingencies in the form of subordinate, task, and/or group variables. Leadership as being more flexible – different leadership styles used at different times depending on the circumstance. No single contingency theory has been postulated.
Transactional and transformational theories: The transactional leader is given power to perform certain tasks and reward or punishment for the team’s performance where manager get opportunity to lead the group and the group members agrees to follows his/her leadership to accomplish the group goals. Transformational leadership involves motivation of it’s team to be effective and efficient. Behavioral theory: By this theory, Leaders can be made through training, rather than are born. It assumes that leadership capability can be learned. Functional theories: Functional leadership theory is a particularly useful theory for addressing specific leader behaviors expected to contribute to organizational or unit effectiveness. According to Hackman & Walton, 1986;
McGrath, 1962, the five broad functions that a leader need to perform is (1) environmental monitoring, (2) organizing subordinate activities, (3) teaching and coaching subordinates, (4) motivating others, and (5) intervening actively in the group’s work. (http://en.wikipedia.org/wiki/Leadership#Trait_Theory, http://www.preachology.com/leadership-theories.html, http://en.wikipedia.org/wiki/Leadership#Trait_Theory) Productivity of team means performance of team. Performance management means activities are to ensure that goals are consistently being met in an effective and efficient manner which is controlled or observed by the HR department. Factors that influences performances: - Market - Excellence or Quality Management - Technical development - Organizational restrictions or changes - Govt. policies - Dissolution of Appraisal - Performance related play(bonus, commission etc) Appraisal systems: Appraisal systeem Individual, Managers and with realtives
Peer to peer (By same level of staff)
360 degree feetback (By self evaluation, managers evaluation, customers evaluations, peer to peer evaluations )
Performance Management (PM) is a system composed of an orderly series of programs designed to define, measure, and improve organizational performance. Successful PM requires the creation, maintenance, use, and evaluations of mechanisms to define and revise standards and to inform those affected by the standards about them (Katz & Green, 1997). Several ways to measure teams’ productivity or performances are follows; • The measurement will be based on result rather than behavior and activities.
When aligns organizational activities and processes to the goals of the organization working properly. When employees working toward a team to get the team goals rather than individuals show-up activities and when team member willingly want to learn which is relate to the task of that group.
(http://www.lotsofessays.com/viewpaper/1700678.html, http://managementhelp.org/perf_mng/benefits.htm) Task -3 Dubai is having very good humanitarian labour laws for what the working condition is very much fair and enjoyable. The Law covers all aspects of the employer-employee relationship (Chapter 12), including matters related to employment contracts, restrictions on the employment of juveniles and women, maintenance of records and files, wages, working hours, leaves, safety and protection of employees, medical and social care, codes of discipline, end of service benefits, compensation for occupational diseases, labour inspections, penalties and employment related issues. Labour legislations in the UAE are governed by Federal Law No. 8 of 1980 Regulating Labour Relations as amended by Federal Laws No. 24 of 1981, No.15 of 1985 and No.12 of 1986 (the “Law”) other than some special labour related regulations applicable in some of the free zones in the UAE which I try to describe briefly as below; THE CONDITIONS FOR EMPLOYMENT A fixed term contract has a commencement and completion date, cannot be in excess of a period of 4 years. It can, however, be renewed through mutual consent The characteristics of an unlimited term contract provides a commencement date but no completion date, by its nature renewable and the contract continues after the work agreed upon is completed. PROBATION PERIODS It is common practice in the UAE to employ persons on an initial probationary period. According to Article 37 of the Law, the probation period can be for a maximum period of six months. Probation period once completed, it is considered as part of the overall employment term and is taken into account when calculating gratuity and other terminal benefits.
WAGES Wages could be calculated and may be paid in on the basis of a year, month, week, daily, piece work, or production, or commission. There is no minimum wage has been determined by law to date. Remuneration shall include the cost of living allowance and it is not a donations. Worker will entitle to get working overtime which is equivalent to the wage paid during ordinary working hours plus an additional amount of not less than 25% of the wage for the over time period and Worker entitle to working on holidays. EMPLOYMENT OF JUVENILES and WOMEN 1. Minimum age must be 15 or more. 2. Juveniles is prohibited to work at night in an industrial undertaking, hazardous jobs or in work which is harmful to health. 3. Working hours exceed six hours per day, should have one or more breaks within the stipulated hours). 4. Women at night between the hours of 10.00pm and 7.00am is prohibited, except specific cases. WORKING HOURS The maximum prescribed working hours for an adult employee is eight hours per day or forty-eight hours per week. However, the working hours may be increased to nine hours per day in the case of persons employed in trades, hotels, cafeterias, and as guards. Persons who hold executive/administration positions however are expected to work long hours without overtime pay. Annual Leave/Holiday A minimum of thirty days paid holiday on the basic of wage plus the housing allowance, if his service exceeds one year. At the end of his service the employee is entitled to annual leave (may in 2 fraction) of the last year he spent in service. The employer must give the employee once during his employment a special leave without pay to go for Haj (pilgrimage) which should not exceed 30 days. This period is not part of the employee’s annual leave or any other leave which he is entitled to. Employee are also entitled to official holidays with full wage. Sick Leave
The employee is not entitled to any paid sick leave during the probation period. However, after a period of three months continuous service following the probation period, the employee is entitled to sick leave (continous or intermittent) wages as follows: (1) Full wage for the first 15 days. (2) Half wage for the next 30 days. (3) Any following period will be without wage. The employer may not dismiss an employee from service during his sick leave or annual leave. During this period any notice for termination will be considered null and void. Maternity Leave A working woman is entitled to 45 days maternity leave with full pay which includes the period before and after the delivery and could extend her maternity leave for a maximum period of l0 days without pay EMPLOYEE RECORDS An employer who employs five employees or more must maintain employee records. SAFETY REGULATIONS The Law specifies certain provisions regarding employee safety and health care, which are stipulated under Articles 91 to 101 (inclusive). Every employer should provide his employees with suitable means of protection against: injuries, occupational diseases, fire and hazards. Every employer shall display at the work site detailed instructions in Arabic and if necessary another language understood by the employees. Employee must make available a first aid kit or kits containing medicines, bandages and other first aid material must ensure the workplace is kept clean and well ventilated, adequate lighting and rest rooms and suitable drinking water. The employer shall also provide its employees with the means of medical care to the standard determined by the Ministry. DISCIPLINARY CODE The Law, which provides for various disciplinary measures which an employer or his representative may impose on the employees of the business. ACCIDENTS AT WORK
In the Appendix 2 different laws and describer for permanent Disability/ losses caused by an accident which shall be estimated by the Medical Board provided in Article (148) of this Law. A work accident is an accident which has been suffered by an employee at his place of work or while traveling to or from his place of work. If the employee suffers a work related accident or an occupational disease, the employer or his representative must report the If the injury prevents the employee from performing his job duties, the employer should pay him a grant equivalent to his wage during the treatment period or for six months, whichever is less. TERMINATION OF CONTRACT An employment contract can be terminated in any of the following circumstances: 1. If the two parties agree to cancel the contract, provided that the employee consents to this in writing. 2. If the contract term has come to an end, unless the contract has been explicitly or implicitly extended according to the rules of the Law. 3. By one of the parties where the contract has an unspecified term, provided that the parties observe the provisions of the Law referred to previously regarding notice and the acceptable reasons to cancel the contract without prejudice. An employer may dismiss an employee without notice in any of the following cases (as per Article 120 of the Law): REPATRIATION OF EMPLOYEES Under Article 121 of the Law, an employee will be entitled to a gratuity of a maximum period of 30 on termination without notice. The employee may not extend this period for any reason provided that the employer actually pays for the following: (a) The repatriation expenses as agreed; and (b) End of service benefits and other PAYMENT OF GRATUITY On the termination of the employment contract, an employee is entitled to the following: 1. A notice period , or any amount due in lieu of the notice period in the case of an unlimited contract. 2. In the case of an unlimited contract, compensation for unreasonable dismissal if the contract was terminated by the
employer for unreasonable cause. Pensions and social security scheme The Pensions & Social Securities Law, Federal Law No. (7) of 1999, concerns UAE nationals employed in both the public and private sectors. It provides, amongst other things, for certain contributions to be made by the employee and the employer to the Public Authority of Pensions and Social securities. For a person employed in the public sector these contributions are equivalent to 5% of the contributory pension salary to be paid by the employee and 15% of the contributory pension salary payable by the employer. As for the private sector, the government shall bear 2.5% of the 15% share payable by the employer as contributions to the Authority. The Pensions & Social Services Law also provides for the amount to be paid as a pension to eligible UAE nationals on reaching the retirement age of 60, or disability pension in the case of an employee becoming disabled and unable to work. It further covers the amount of pension payable to beneficiaries on the demise of a secured person. 17. DISPUTE SETTLEMENT Where there is a dispute between the employee and the employer, an application must be made to the Ministry in the emirate in which the employer’s establishment is located. ( Labour Law in the UAE, AL TAMIMI & COMPANY, www.tamimi.com,) Conclusion Workers are enjoying good tax free salaries, a lot of job benefits and opportunities almost without any hassle. Therefore, a huge no of workforces is working in Dubai, contributing for the country. The Law is enforced by the Ministry and litigation is adjudicated by the federal and local courts of the UAE which is applicable to all the emirates of the federation. It is also not possible to apply a foreign law to a UAE employment contract. If the governing law in the employment contact is UAE law and filed with the Ministry, then gratuity will be calculated from the commencement date of that contract. This contract will take precedence over any other contract with a foreign governing law. Some of contents of the labour laws like Discrimination in Employment, Equal opportunity, Women in employment, Ethnic minorities in employment, Disabled people in employment, Age diversity in employment, Other forms of discrimination- The Legislative Framework, Equal Pay Act, The
Employment Equality (Sex Discrimination) Regulations, Sexual harassment, Employment Equality Regulations, Managing Diversity are undisclosed in UAE laws but it is assumed that those are considered and judged by the Islamic laws of the country. The UAE does not allow the formation of trade unions. Reference: All references are mentioned on the beneath of the topic I discussed.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.