OTHM Professional Diploma 3 Workbook: Human Resources Management

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OTHM Professional Diploma 3 Workbook

Human Resources Management
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No part of this publication may be reproduced, stored in a retrieval system or

transmitted,
in any form or by any means, electronic, mechanical, photocopying, recording
or otherwise, without the prior written permission of The Organisation for
Tourism and Hospitality Management.
V2005-1 Diploma 3 © OTHM
0
Diploma 3 Workbook
Human Resource Management
Welcome to OTHM
Welcome to …. Human Resource Management
'People are our most important asset' is a popular business expression which
has perhaps been overused in modern business. Nevertheless, the
management of the organisation's people is identified by those in the know as
a key factor determining whether the organisation succeeds or fails. Human
resource management describes the range of strategies and processes used
by individual organisations to maximise the potential of their workforce,
matching the needs of the organisation with the reasonable aspirations of
employees. This module will provide an insight into polices that come under
the broad heading of HRM and provide an in depth understanding in a travel
and hospitality setting.
This workbook is designed to support you through your studies. It is divided

into 3 main sections, firstly the outline of the module, then each weekly
session with further explanation of key terms, practical examples, further class
exercises and case studies, together with copies of the lecture slides for you
to use to take notes. At the end of the workbook is a section on exam
guidance to help you prepare for your exam at the end of the module.
Hopefully this workbook will aid your learning process, but it is only a guide
and in order to do well on this module you need to take control of your own
learning. This means attending classes and staying up to date with activities
and readings. The course is 15 weeks long and will include lectures, seminars
and tutorials. To get the most out of each class you should take an active part
in each session. In order to do this you will need to read the essential texts in
advance. Coupled with this it is strongly advised that you make use of the
journals and web-sites suggested in this guide to further advance your
understanding. In the end the more effort you put in to your learning, the more
you will get out of this course.
I hope you will enjoy this module and OTHM look forward to working with you
over the next 15 weeks
Kind regards
The OTHM Team
1
Contents
Scheme of Work 5
Syllabus 6
Essential and Recommended Reading 10
Web Sites 10
Session 1 – Introduction to HRM – Factors Influencing the Nature 11

of Work in Hotels
Explanation of key terms 11
Web research 11
Background information 11
Class activity 12
Exam question 14
Lecture Slides 14
Session 2 – HR Planning – IT Systems, flexible working in the 19

industry
Web research 19
Class activity 20
Exam question 22
Lecture Slides 22
Session 3 – Psychological Contract, Concept of ‘Employability’, 26

Added Value
Web research 26
Class activity 27
Exam question 29
Lecture Slides 29
Session 4 – The Recruitment and Selection of Hotel Staff 34

Web research 34
Class activity 35
Exam question 36
Lecture Slides 37
Session 5 – Job Design and Job Enrichment 42

Web research 42
2
Class activity 43
Exam question 44
Lecture Slides 45
Session 6 – Motivation and Commitment 49

Web research 49
Class activity 50
Exam question 52
Lecture Slides 52
Session 7 – Leadership 57
Web research 57
Class activity 58
Exam question 60
Lecture Slides 60
Session 8 – Career Development 64

Web research 64
Class activity 65
Exam question 66
Lecture Slides 66
Session 9 – Learning and Development 71

Web research 71
Class activity 72
Exam question 73
Lecture Slides 73
Session 10 – Appraisal and Performance Management 77

Web research 77
Class activity 78
Exam question 80
Lecture Slides 80
Session 11– Disciplinary and Grievance Management 84

Web research 84
Class activity 85
Exam question 87
3
Lecture Slides 87
Session 12– Absence Management and Handling Staff Turnover 92

Web research 92
Class activity 93
Exam question 94
Lecture Slides 95
Session 13– Individual differences: Using them to improve 99

Customer Relations
Web research 99
Class activity 100
Exam question 101
Lecture Slides 101
Session14 – Managing Diversity 105

Web research 105
Class activity 106
Exam question 107
Lecture Slides 107
Session 15– Stress Management in the Tourism and Hospitality 111

Industry
Web research 111
Class activity 112
Exam question 113
Lecture Slides 113
Exam Guidance 126
4
OHTM Diploma Scheme of Work Human Resource Management
Recommended delivery 45 hours
Session Subject/Topic
Introduction to HRM. Factors influencing the nature of work in
1
hotels.
2 HR planning, IT systems, flexible working in the industry.
3 Psychological contract, concept of ‘employability’, ‘added value’.
4 Recruitment and Selection of hotel staff.
5 Job Design and Job Enrichment

Employee attitudes and behaviour. How they can affect the industry.
6
Motivation and commitment.
7 Leadership in Tourism and Hospitality Management.
Career development. Finding, selecting and nurturing talent in
8
tourism and hospitality
9 Learning and development. Best practice for developing skills.
10 Appraisal and Performance Management. Rewarding staff.
11 Disciplinary and Grievance Management.
12 Absence management and handling staff turnover.
13 Individual differences. Using them to improve customer relations.
14 Managing diversity successfully. Understanding of legislation.
15 Stress Management in Tourism and Hospitality industry.
Topics should be indicative of the tourism and hospitality industry
5
Syllabus: Human Resource Management
The OTHM Diploma Paper in Human Resource Management is one of three

papers that make up Part I of the OTHM Diploma. This course assumes
knowledge gained in the OTHM Certificate.
Aims and Objectives

The module aims to provide participants with:
The ability to select and apply appropriate HR and management

frameworks in HR planning in the Tourism and Hospitality Management
industry
The skills to recruit and select appropriate staff, taking into
consideration individual differences in culture, attitudes, gender,
ethnicity, background and personality.
An understanding of the importance of a range of training interventions
for improving service in the Tourism and Hospitality industry. A working
knowledge of the changing nature of employee/employer relations, and
the implications for flexible working, commitment and leadership.
The ability to maximise performance through effective motivation,
performance management and review.
Learning Outcomes
At the end of the module students will be able to:
Communicate effectively in a number of organisational situations:

dispute resolution, grievance, presentations and negotiations.
Handle competently the recruitment and selection process.
Implement effectively flexible working strategies to meet changing
resource needs.
Maximise individuals’ contributions through effective performance
management techniques, such as target setting and appraisal.
Put into practice standards of ethical behaviour in the workplace and
act as role model for ‘good practice’.
Handle difficult people-management situations by a thorough
knowledge of grievance and disciplinary procedures and excellent
communication skills.
Identify appropriate training and development opportunities for
individuals, in order to enhance organisational performance.
Manage work-related stress by understanding causes and symptoms
and alleviating it by prevention strategies. Demonstrate the importance
6
of career development and apply appropriate nurturing and
development techniques.
Recommend ways of generating employee commitment by a through
understanding of the criteria for good leadership and management.
Advise on legislation in the area of employee relations, Health and
Safety, and Managing Diversity.
Assess the benefits of individual differences of people in achieving
effective HR Management.
Knowledge and Skill Requirements

By the end of the module candidates should be able to:
1. Background – (7.5%)
Explain the role of HRM in the Tourism and Hospitality industry
State the factors influencing the changing nature of hotel work, jobs
and opportunities in the Tourism and Hospitality Management sector
2. Human Resource Planning – (7.5%)
Write a HR plan suitable for the sector
Describe the role of effective IT systems in HR planning
Apply systems of flexible working to meet changing needs in the
industry
3. Employment and the Employee – (7.5%)
Explain the ‘psychological contract’
Demonstrate how ‘employability’ and ‘added value’ can be
implemented.
4. Job Description, Design and Recruitment – (10%)
Prepare job descriptions and person specifications
Plan, conduct and evaluate selection interviews
Explain the legal frameworks and current good practice surrounding
the recruitment and selection process
Apply the principles of job design to support change in the Tourism and
Hospitality Management industry
5. Motivation – (10%)
Demonstrate how job enrichment or multi-skilling can improve staff
motivation
Explain Kakabadse’ s research on Staff Motivation
Describe how the different theories of motivation can be applied in the
Tourism and Hospitality Management industry
7
Demonstrate the relationship between pay and motivation, and its
significance in developing a reward strategy
Recommend appropriate approaches to obtain employee commitment
Identify economic, psychological and cultural influence on attitudes and
behaviour
6. Management as Leadership – (7.5%)
Identify the criteria for effective leadership and management
Apply leadership skills through influencing, persuasion and negotiating
skills
Explain the role of HR partnerships in the sector
Apply appropriate developmental skills nurturing staff and managing
through mentoring and coaching
Identify suitable learning and development solutions for an individual’s
training needs
7. Training and Appraisal – (10%)
Demonstrate knowledge of how to train staff on the job
Plan, prepare and apply current best practice with appraisal interviews
Demonstrate how to maximise both individual and group performance
by implementing different performance management solutions
Identify the factors involved in good appraisals
8. Remuneration – (7.5%)
Evaluate the nature and content of different payment and reward
systems
Describe the key components and influences on pay systems, policies
and strategies
9. Grievance and Disciplinary – (7.5%)
Understand the disciplinary and grievance procedures in operation in
the participants’ own hotel
Deal with poor performance at work
Contribute appropriately to both disciplinary and grievance hearings
State the determinants of absenteeism: Steers & Rhodes, Brook and
Brice models
10. Redundancy and Dismissal – (7.5%)
Prepare an action plan to handle redundancies
11. Conduct exit interviews and explain their value (7.5%)
12. Legislation – (7.5%)
8
Explain how individual differences in staff can be handled positively in
the tourism and hospitality industry
Contribute to effective HR management by implementing diversity
management
Advise on current legislation on issues of equal rights and diversity
13. Employment Law, Health and Ethics – (10%)
Put Health and Safety policies into practice
Demonstrate an understanding of the causes and symptoms of work-
related stress in the Hospitality industry
Manage the process of alleviating work-related stress through
prevention and treatment
Put into practice standards of ethical behaviour for the Tourism and
Hospitality Management industry
9
OTHM Diploma Human Resource Management
Essential Reading
Title Human Resources Management in the Hospitality and Tourism

Industry
Author Michael Riley
Publisher Butterworth Hienmann
ISBN 0-7506-2729-8
Recommended Reading
Marchington, M. and Wilkinson, A. People Management and Development:

Human Resource Management at Work. C.I.P.D. (2002)
Armstrong, M. Strategic Human Resource Management. Kogan Page

(2000).
Torrington, D. and Hall, L. Human Resource Management. Prentice-Hall

(1998)
Weightman, Jane. Managing People. IPD, 1999.
Journals
People Management
The Training Journal
Personnel Today
Web Sites
www.CIPD.co.uk
Chartered Institute of Personnel and Development
The professional body
Use key words on the search and print off the appropriate factsheet.
These give an overview of the topic in general terms.
www.acas.org.uk
ACAS Arbitration Conciliation Advisory Service, UK
Guidelines and Codes of Practice.
http://www.som.cranfield.ac.uk/som/
Cranfield University
10
Session 1: Introduction to HRM - Factors
Influencing the Nature of Work in Hotels
Explanation of key terms

Human Resource Management (HRM): Human Resource Management is
the function within an organisation that focuses on recruitment of,
management of, and providing direction for the people who work in the
organisation. Human Resource Management can also be performed by line
managers.
Service sector: the general definition of the sector is producing a service

instead of just an end product.
Labour market: the market in which individuals supply their labour to firms in
exchange for wages and salaries
External Environment: Factors external to the business that influences its

operation and actions. This includes such things such as economic
conditions, consumer behaviour and technological developments. These are
the major uncontrollable, external forces which influence a firm's decision
making and have an impact upon its performance.
Disposable income: The amount of income left to an individual after taxes

have been paid, available for spending and saving
Web research
http://news.bbc.co.uk/1/hi/business/8527100.stm
http://www.telegraph.co.uk/news/uknews/5183057/Waiter-69-sues-top-hotel-
for-100000-for-age-discrimination.html
Background information
The role of human resource management
Managing a successful travel or hospitality business involves acquiring,

developing and maintaining a wide range of resources. These resources may
include the buildings, land, equipment, technology or raw materials. More
11
crucially however, the people organisations employ can be seen as one of the
greatest assets.
Any successful organisation needs good employees who have the right skills
to achieve the company’s aims and objectives. In many ways the need to
develop an excellent workforce is magnified in travel and hospitality
organisations, as more often that not these companies primary objective is to
deliver a high quality service. From a customer perspective it is often difficult
to distinguish the service that is being delivered from the person who is
delivering it and in a customer focused industry employees become the
organisation’s representatives. Management of the workforce therefore
becomes an integral part of business success and how staff are managed will
affect how the successfully they deliver a service.
Human resource management or HRM for short is the business function that
focuses on the policies and processes linked to people management within an
organisation. It ensures the efficient management of people and ensures that
employees are contributing more than they cost.
Class activity
There are a range of factors you will have to consider in the management of
human resources.
Many of these subjects listed above will be covered in more depth later
chapters of this workbook. However, it is still valuable to briefly consider which
12
practices actually come under the broad heading of HRM and the advantages
for the organisation if they can get these practices right.
Consider briefly what type of incentives a hospitality organisation may offer its
workers
1. ...........................................................................................................................
2. ...........................................................................................................................
3. ...........................................................................................................................
4. ...........................................................................................................................
5. ...........................................................................................................................
What are the main organisational advantages of providing these incentives to

workers?
1. ...........................................................................................................................
2. ...........................................................................................................................
3. ...........................................................................................................................
4. ...........................................................................................................................
5. ...........................................................................................................................
Why is it essential for organisation to manage absenteeism?
1. ...........................................................................................................................
2. ...........................................................................................................................
3. ...........................................................................................................................
4. ...........................................................................................................................
5. ...........................................................................................................................
Suggest different practices that may help an organisation to manage

absenteeism.
1. ...........................................................................................................................
2. ...........................................................................................................................
3. ...........................................................................................................................
4. ...........................................................................................................................
5. ...........................................................................................................................
Organisations do not operate in a vacuum and the practices that they can
implement are influenced by a number of external factors that often they have
little control over.
For example, a travel organisation struggling to survive in a global recession

may have trouble finding the money to provide a comprehensive training
program for its workers.
Therefore HR practices are influenced by the economic climate which is

something an organisation cannot control.
13
In teams try to identify five external factors that could shape a hotel’s HRM
policy.
1. ........................................................................................................................
2. ........................................................................................................................
3. ........................................................................................................................
4. ........................................................................................................................
5. ........................................................................................................................
Discuss in groups which external factors you would have to consider if you
were a restaurant manager thinking about recruiting more staff.
1. ...........................................................................................................................
2. ...........................................................................................................................
3. ...........................................................................................................................
4. ...........................................................................................................................
5. ...........................................................................................................................
Exam question
Select a hospitality organisation of your choice and outline using examples
what external factors could impact on HRM.
Explain using examples from a hospitality organisation of your choice how

human resource management can ensure that all employees ‘add value’ to an
organisation.
14
Session 1: Lecture Slides
By the end of the session students will be able to:
Demonstrate an understanding role of HR within the industry.
Understand the factors influencing the changing nature of hotel work.

___________________________________
___________________________________
Introduction to HRM - Factors
Influencing the Nature of Work in ___________________________________
Hotels
___________________________________
Human Resource Management -
Session 1 ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Aims
By the end of the session students will be
___________________________________
able to:
1) Demonstrate an understanding role of
___________________________________
HR within the industry.
2) Understand the factors influencing the ___________________________________
changing nature of hotel work.
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
15
___________________________________
What is HR?
• Human Resources is the part of the
___________________________________
organisation that deals with people
___________________________________
• Managing the human resource
• This means acquiring developing and ___________________________________
supporting staff as well as ensuring they
fulfill their role at work
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Why is it Important?
• Staff are the largest revenue cost of any organisation.
___________________________________
• Staff are a volatile resource, they can leave you any
time.
• Staff are a store of corporate knowledge and the means
___________________________________
of service delivery.
• Retaining and developing good staff allows you to use
skills and develop as a business.
___________________________________
• Individuals should contribute more than they cost.
• In the industry customer care critical and delivered by ___________________________________
staff as representatives.
© OTHM Ltd Dip3 ___________________________________

___________________________________
___________________________________
Factors Affecting HR
• Legislation
___________________________________
• The Economic environment
• The global economy
___________________________________
• The structure of the labour market
• The Political environment
___________________________________
• Changes in technology
• Need to constantly retrain staff
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
16
___________________________________
Legislation
• In the EU employment law is highly
___________________________________
complex
___________________________________
• In the UK changes made twice a year
• The contract of employment is key to the ___________________________________
employer/employee relationship
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
The Role of HR in Tourism
• Support and advise line managers
___________________________________
• Ensure staff available to meet organisational needs
• Provide developmental support ___________________________________
– Appraisal
– Training
– Promotion ___________________________________
• Ensure pay and benefits in line with expectations.
• Deal with problem staff
– Develop
___________________________________
– Dismissal
© OTHM Ltd Dip3 ___________________________________
___________________________________
The Changing Nature of ___________________________________

Hotel Work
• Greater level of overseas travel
___________________________________
• Technology room bookings etc
• Larger number of multinational groups ___________________________________
• Greater job mobility
• Higher customer care expectations ___________________________________
• Reduction in seasonal differences
• Health and Safety ___________________________________
• Greater need for Multi-skilling
© OTHM Ltd Dip3 ___________________________________
___________________________________
17
___________________________________
Factors Affecting Hotel Work
• Disposable income levels

___________________________________
• Customer expectations
• Travel options consider 911
___________________________________
• Technology
• Staff availability
___________________________________
– Status many hotels are importing labour
– Flexibility of supply e.g. Students in summer
___________________________________
– Career expectations
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Summary
• In a customer focused industry staff will
___________________________________
always be a critical factor.
• How you deal with and manage staff will
___________________________________
affect how the business operates.
• The law plays a key part especially in the ___________________________________
developed economies.
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
18
Session 2:HR Planning, IT Systems,
flexible working in the industry

Workforce planning: ensuring that there are the right number of employees
in the right place at the right time with the right skills.
Business plan: is a document that summarises the operational and financial

objectives of a business and contains the detailed plans and budgets showing
how the objectives are to be reached
Supply and demand is an economic model of price determination in a

market. It concludes that in a competitive market, price will alter to equalise
the quantity demanded by consumers, and the quantity supplied by
producers, resulting in an economic equilibrium of price and quantity.
Forecasting: is the prediction of outcomes, trends, or the expected future

behaviour of a business, industry sector, or the economy through the use of
statistics.
Web research
http://news.bbc.co.uk/1/hi/uk_politics/7402074.stm
http://business.timesonline.co.uk/tol/business/industry_sectors/transport/articl
e6028666.ece
Workforce planning is the process of assessing a company’s current and
future labour needs. In the travel and hospitality sector numbers of employees
may need to alter due to absence, expansion or retirement. However,
organisations must consider not just overall employee numbers of workers but
also the skills that will be required within the business. If a highly skilled chef
leaves a top restaurant there may be a need to begin recruiting a replacement
or train an internal candidate to fill the role. The workforce planning process
has to ensure the organisation has the right staff in place. Often managers
use special software applications to help them make accurate predications.
Many managers conduct a programme of forecasting to predict future staff

numbers. For example a large chain of restaurants like Pizza Express may at
the beginning of the year forecast how much the demand for their services will
19
grow, considering factors such as new restaurant openings and the economic
climate. This helps the company decide how many additional restaurant
managers to train in the future. Pizza Express will also make detailed
forecasts of the numbers of manager trainees needed to ensure that they
have the right number of trained managers over the course of the year. This
means that the company can cope with issues such as illness, maternity level
and retirement.
Class activity
Workforce planning is designed to ensure that there are the right numbers of
employees in the right place at the right time with the right skills. However, to
make accurate judgements about anticipated workforce numbers
organisations have to consider firstly the demand for their products or
services and then the supply of workers in a certain geographic area.
Forecasting Workforce Demand
As a HR manager of a large chain of UK hotels you are trying to predict

issues that may affect demand for services in the coming year. A few of the
key factors to consider in this forecast are listed below can you think of any
more?
1. Customer demand for holidays in the UK
2. Hotel closures
3. Introduction of new technology. For example online booking may affect the
numbers of receptionists employed to manage this in each hotel
4. ..................................................................................................................................
5. ..................................................................................................................................
6. ..................................................................................................................................
7. ..................................................................................................................................
8. ..................................................................................................................................
Forecasting Workforce Supply
As HR manager you now need to consider your own workforce and whether
you will be able to match the demands of your business with a supply of
workers. The starting point for estimating supply is looking at the existing
workforce.
20
1. Consider any scheduled changes to the composition of the existing
workforce. For example, large numbers of promotions or job rotations.
2. Loss of workers through "normal" labour turnover.
3. Actions of competitors, such as a rival hotel offering premium wages

creating problems of staff retention.
4. ..................................................................................................................................
5. ..................................................................................................................................
6. ..................................................................................................................................
7. ..................................................................................................................................
8. ..................................................................................................................................
By comparing the forecast workforce demand and supply - it is possible to

compile a forecast of net workforce size. This then needs to be compared with
the strategic requirements for the business. The result is the "workforce gap",
this is when the forecast has identified too few or too many workers. The next
step is to try and close the gap. For example this can be done through
recruitment. Can you suggest any other ways of closing this gap?
1. ..................................................................................................................................
2. ..................................................................................................................................
3. ..................................................................................................................................
4. ..................................................................................................................................
5. ...................................................................................................................................
Temporary workers
In the hospitality industry demand for products and services is not constant.
For example school holidays and religious festivals such as Christmas can
effect how busy a restaurant or travel agency is. Many organisations solve
this workforce planning issue by employing temporary or agency workers for
short periods of time.
Outline the advantages for an organisation choosing to employ temporary or

agency workers.
21
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Outline the disadvantages for an organisation choosing to employ temporary

or agency workers.
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Exam question
As the HR Manager of a large hotel you have been asked to write a plan
outlining staffing needs for the coming year. What factors would you take into
account before writing this plan?
Define workforce planning and outline the ways it can add value to an
organisation.
Session 2: Lecture Slides

Write a suitable HR Plan.
Understand the role of IT in HR planning
22
___________________________________
___________________________________
HR Planning - IT Systems and
Flexible Working
___________________________________
___________________________________
Session 2 ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Aims
___________________________________
able to:
1) Write a suitable HR Plan.
___________________________________
2) Understand the role of IT in HR
planning ___________________________________
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
What is HR Planning?
• Right people in the right place at the right
___________________________________
time with the right skills.
• Support for the business plan.
___________________________________
• Awareness of future needs
• Supply and demand in the labour market.
___________________________________
• Forecasting and planning
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
23
___________________________________
Employment options
• Full or part time workers
___________________________________
• Fixed term contracts
• Variable hours
___________________________________
• Shifts
• Outsourcing
___________________________________
• Seasonal contracts
• Commission based working
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Writing an HR Plan
• Aspects
___________________________________
– The business plan where are we going
– The existing staff
___________________________________
– The forecast demand
• Numbers ___________________________________
• Skills
• Shortfall
– The labour market skills and locality
___________________________________
– The level of competition
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
The HR Framework
• Good HR means better organisational
___________________________________
performance. CIPD research the so called
black box studies. ___________________________________
• Staff who feel valued will work with you.
Those who don’t will work against you. ___________________________________
• Retention levels are fundamental to
effective planning. ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
24
___________________________________
The Role of IT in Planning
• How can computers help?
___________________________________
– Data on existing staff
– Data on potential
___________________________________
– Skill levels
– Salary surveys locally,nationally
___________________________________
– Demand and supply forecasts
– Anticipate numbers due to retire etc.
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Changing Staffing Needs
• The one thing that is certain is change
___________________________________
• Industry need to respond or die
• Staff major element:-
___________________________________
– Existing skills
– Obsolete skills
___________________________________
– Means for developing new solutions
• How can you accommodate this? ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Summary
• The HR plan must support and inform the
___________________________________
business plan.
• Staff are not fixed either in skills or in
___________________________________
continued employment.
• Nothing in the business world is constant. ___________________________________
• Computers major element in effective
planning. ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
25
Session 3: Psychological Contract,
Concept of ‘Employability’ Added Value
The Psychological Contract represents the mutual beliefs, perceptions, and

informal obligations between an employer and an employee. It sets the
dynamics for the relationship and defines the detailed practicality of the work
to be done. These obligations will often be informal and imprecise: they may
be inferred from actions or from what has happened in the past.
Written contract of employment is an agreement specifying terms and

conditions under which a person consents to perform certain duties as
directed and controlled by an employer in return for an agreed upon wage or
salary
Span of control is the term for the number of subordinate employees directly
accountable to a manager
Web research
http://www.cipd.co.uk/subjects/empreltns/psycntrct/psycontr.htm
http://www.management-issues.com/2009/8/10/opinion/the-psychological-
contract-during-the-downturn.asp
The Psychological Contract
The recruitment process allows the employer and interviewee to discuss what
they each can offer in the prospective relationship. If both parties are satisfied
the employee will be hired and asked to sign a contract of employment. This
standard contract will include such things as rates of pay, holiday entitlement
and standard hours in a working week. However, this contract will not cover
all areas and leave leaving the detail of the employee's duties to be clarified
"on the job".
The majority of an employee’s rights and duties emerge through the

interpersonal relationships formed in the workplace. This determines how
employers, supervisors and managers behave.
26
If we give the example of a restaurant, the manager may have recently
employed a new chef. During the initial few weeks it should be made clear to
the chef how the manager expects them to conduct their duties. At this
particular restaurant it is expected that the staff are changed and ready to
work five minutes before the start of their shift. The manager also expects the
chef to deliver well presented food quickly to customers and ensure that he or
she keeps the kitchen clean and tidy at all times. These are something that
forms the unwritten expectations of the job and are not contained in the formal
contract of employment.
When employees work in a job for a period of time they slowly realise what is
expected of them and negotiate what they must do to satisfy their side of the
bargain. However, the psychological contract is two sided and employees also
have expectations and gradually they understand what they can expect in
return.
For example in the same restaurant six months on, the chef has managed to
fulfil the expectations of the manager by being been on time for work,
delivered food of the highest quality and being helpful to other members of the
restaurant team. The manager will now choose to recognise the employee’s
diligence and hard work. They may be offered more hours in the form of
overtime or an increase in their rate of pay. At this stage the negotiation of the
mutual obligations can be explicit, and may take place in an appraisal or
performance review sessions.
The psychological contract is incredibly important because if managed

effectively, the relationship will foster mutual trust between the parties,
matching the objectives and commitments of the organisation to those of their
employees. When the employee and employer expectations match each
other, performance is likely to be good and satisfaction levels will be high.
However, a negative psychological contract can result in employees
becoming demotivated and resentful. This will result in an increasingly
inefficient workforce whose objectives no longer correspond to the
organisation they work for.
Class activity
As the manager of a travel agency you have recently employed a new travel
agent. Outline the obligations that will be contained within this employee’s
written contract of employment
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
27
......................................................................................................................................
......................................................................................................................................
Now consider the psychological contract. This is two sided and is made up of
the mutual expectations of both the employee and the employer.
As the manager of the travel agency outline the type of obligations that you
would expect your employee to fulfil during the course of their job
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Now consider the type of obligations that your employee would expect you as
the manager to fulfil during the course of their job
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Now you have considered the mutual obligations and expectations of both the
manager and your new employee, outline why it is important for you to meet
your employee’s expectations.
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
28
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
As a manager what are the possible consequences if you fail to meet the
expectations of your new employee?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Exam question
Explain using examples from a hospitality organisation Demonstrate how
‘employability’ and ‘added value’ can be implemented.
Outline the key differences between the written contract of employment and
the ‘psychological contract’ of employment.
Describe the features of a successful psychological contract in a hospitality

and/or tourism organisation of your choice as an example
29
Lecture Slides
Explain the ‘psychological contract’
Demonstrate how ‘employability’ and ‘added value’ can be

implemented
Apply systems of flexible working to meet changing needs in the

industry
___________________________________
___________________________________
The Psychological Contract,
Concept of ‘Employability’, ___________________________________
‘Added Value’
___________________________________
Session 3 ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Aims
___________________________________
able to:
1) Explain the ‘psychological contract’
___________________________________
2) Demonstrate how ‘employability’ and
‘added value’ can be implemented ___________________________________
3) Apply systems of flexible working to meet
changing needs in the industry ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
30
What is the Psychological ___________________________________
Contract
• The unwritten expectations
___________________________________
• It has been defined as '…the perceptions
of the two parties, employee and
___________________________________
employer, of what their mutual obligations
are towards each other'. These obligations ___________________________________
will often be informal and imprecise: they
may be inferred from actions or from what
has happened in the past.
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
The Employment Contract
• The employee/employer relationship gives
___________________________________
rise to a formal contract.
___________________________________
• This sets out the detail pay, hours, duties
etc.
___________________________________
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Employability
• So what makes individuals employable
___________________________________
within the industry?
– Skills customer care etc. ___________________________________
– Labour shortages
– Available locally ___________________________________
– Qualifications
– Experience ___________________________________
– Reliability
© OTHM Ltd Dip3 ___________________________________

___________________________________
31
___________________________________
Added Value
• So how can staff add value to the
___________________________________
business?
– By contributing more than they cost ___________________________________
– By improving customer satisfaction
– By performing to acceptable standards ___________________________________
– By taking on additional skills through training
– By being flexible ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
Staff as Assets - Human ___________________________________

Capital
• Most usefully viewed as a bridging concept - defining the
___________________________________
link between HR practices and business performance in
terms of assets rather than business processes.
• A precarious asset - the mobility of individual employees ___________________________________
undermines the firm's ability to derive full benefit from the
skills they bring to the organisation.
• A paradoxical asset - the qualities that make it crucial to
competitiveness make it difficult to measure and
___________________________________
manage.
• Is context-dependent - the value-creating effect of
human capital is highly specific, and may be valueless.
___________________________________
– CIPD Website
© OTHM Ltd Dip3 ___________________________________

___________________________________
___________________________________
Ethical Behaviours
• Remember the employment relationship is
___________________________________
based on two parties entering a contract
• Both parties have a duty to accept the
___________________________________
needs of the other
• Legislation is increasingly formalising ___________________________________
patterns of acceptable behaviour
• Bullying and harassment no longer ___________________________________
acceptable
© OTHM Ltd Dip3 ___________________________________
___________________________________
32
___________________________________
Health and Safety at Work Act
• UK law since 1974 driven by EU
___________________________________
requirements
• Employers duty to provide safe system of ___________________________________
work.
• Employee duty to co-operate. ___________________________________
• Must have written policy
• Constantly evolving
• Increasingly seen as a basic employment
___________________________________
right.
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Working Arrangements
• Given that hotels are a 24 hour facility
___________________________________
– Flexible working times to cover the day
• Part time work ___________________________________
• Shifts variable of fixed.
• Annual hours
___________________________________
– Seasonal working for peak periods
– Span of control
– Close contact with customers
___________________________________
– Variety of work performed
© OTHM Ltd Dip3 ___________________________________
___________________________________
33
Session 4: The Recruitment and Selection
of Hotel Staff

Recruitment is the process used to attract individuals to become employees
in an organisation.
Selection consists of the processes involved in choosing from applicants a

suitable candidate to fill a post.
Discrimination is the unfair treatment of a person or group on the basis of

prejudice
Web research
http://www.cipd.co.uk/subjects/recruitmen/general/recruitmt.htm
http://news.bbc.co.uk/1/hi/business/4363600.stm
The selection interview
Having the right person, in the right place, at the right time, is crucial to
organisational performance. Recruitment is a critical activity and can be
conducted in a number of different ways. However the personal interview as a
selection procedure is still by far the most common method. It is flexible,
relatively inexpensive and acceptable to the candidate and management. The
selection interview has other advantages. It has been discovered that certain
areas of information can be assessed more accurately by interview than by
other methods. For example it is fairly easy to ascertain the candidate’s
interpersonal behaviour and the likelihood of them adjusting to the social
aspects of the job situation.
The objective of the selection interview is to observe candidates’ behaviour

and use this information to try to assess if they have the characteristics
suitable for a vacancy. However, to assess the candidates’ appropriateness
for the position is not the only objective of the interview process. The selection
interviewer also has to give information to the candidate relating to the
available vacancy. The interviewer would of course hope to present the
company in a good light to the applicant.
34
Class activity
Student Travel
Student Travel is a family-owned travel agent with branches throughout the

North West of England. Student Travel was the brainchild of Tom Jones who,
after spending 4 years as a student at Manchester University, found it
increasingly frustrating that there were limited options for cheap independent
travel. So, shortly after he graduated, he set up small student focused travel
agency close to Manchester University’s main campus. Nearly twenty years
on the business has grown from its humble beginnings and now has 15
branches located over the North West of England.
Each branch is run by a branch manager who is directly responsible for the
day to day running of the branch including the recruitment and selection of
employees. Tom Jones likes to take a back seat in the recruitment process,
allowing his branch managers to recruit and select as they see fit. Branch
managers receive no formal training in recruitment and selection practices.
Generally, sales advisor positions are advertised in the local paper and
prospective candidates are required to send their CV in to the local branch.
Often managers have different ideas of what attributes they consider will
make a good travel advisor, but in general they want well educated, young
people with excellent references. Previous industry experience is desirable
but not essential as on the job training will be provided.
To narrow down the applicants to the interview stage, CVs are sorted in to
piles of yes and no, after this the yes pile is reviewed and about 10 candidates
are invited to come to the local branch for an interview. The actual interview
has no formal structure and lasts about 30 minutes. The main purpose of the
interview is for store managers to talk to the candidates and to get a feel of
what the person is like and to try and work out if they are honest and reliable.
Whether a prospective candidate is taken on is largely based the branch
manager’s intuition and gut feeling. Overall, this process has managed to
recruit some first class employees, but on the whole the amount of excellent
workers recruited is matched almost equally by largely unsuitable candidates.
Considering the facts presented in the above case you are now going to
conduct a selection interview for Student Travel. For this exercise you are
required to work in groups of three.
The first person should adopt the role of branch manager. Prior to the
interview you should consider what type of qualities a sales advisor should
have and what questions you are going to ask during the selection interview.
The second person should adopt the role of prospective sales advisor. Prior to
the interview they should compile a list of their current skills and experience.
They should also be prepared to justify why these skills are relevant for the
position of sales advisor.
35
The third person will adopt the role of observer. They will not comment during
the interview process but they will take notes and consider the following:-
– Was the interview fair?

– Did the candidate do most of the talking?
– Was the outcome based on the evidence?
– How well did they assess the ability to do the job?
– What would you do differently?
At the end of the interview it is the observer’s role to discuss these questions
with the interview and interviewee. Record your answers below.
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Exam question
‘Good selection means better retention’. Discuss this statement using
examples from a hospitality organisation of your choice.
Why is it essential to ensure that the selection process is fair and legal?
36
Lecture Slides
Understand the processes around recruitment and selection
Handle competently the recruitment and selection process
Conduct a selection interview

___________________________________
___________________________________
The Recruitment and Selection of ___________________________________
Hotel Staff
___________________________________
Session 4 ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Aims
___________________________________
able to:
1) Understand the processes around
___________________________________
recruitment and selection
2) Handle competently the recruitment and ___________________________________
selection process
3) Conduct a selection interview ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
37
___________________________________
What is Recruitment?
• Recruitment is the process used to attract
___________________________________
individuals to become employees in an
organisation. ___________________________________
• The aim is to attract the right people in
sufficient numbers and at a cost-effective ___________________________________
price.
• The starting point for induction. ___________________________________
• Major factor in the company’s image.
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Legal Aspects
• In the UK it is illegal to discriminate on the
___________________________________
basis of sex, race or disability
– Indeed the law encourages positive action on
___________________________________
disabled candidates
• New laws will extend this to age
___________________________________
• Discrimination can be direct or indirect
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
What is Selection?
• Getting the right individual(s) from the
___________________________________
recruitment process
• First stage shortlist from applications ___________________________________
against the job description and person
specification
• Consider the use of appropriate tests
___________________________________
• Use and interview for the final selection
• Chose the best candidate on merit only
___________________________________
• Make the formal job offer
© OTHM Ltd Dip3 ___________________________________
___________________________________
38
___________________________________
Recruitment
• Where will you advertise?
___________________________________
• Are there any internal options?
___________________________________
• What is the likely pool of skilled individuals?
• How many people do you want too see?
___________________________________
• Are the salary and benefits in line with
expectations.
• Will you advertise before the current post holder
___________________________________
leaves?
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Some Do’s and Don’ts
• Do • Don’t
___________________________________
– Focus on the needs of – Be swayed by
the job appearance ___________________________________
– Consider all the – Worry about if they’ll fit
options in
– Use only objective – Include additional ___________________________________
measures criteria
– Ask open questions – Ask about hobbies
private life etc. ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
Prepare for a Selection ___________________________________

Interview
• Decide how many will be on the panel
___________________________________
• Prepare a list of questions making sure
you cover the criteria
___________________________________
• Find a venue – this will set the tone
• Invite the candidates
___________________________________
• Prepare a timetable
• Agree when you will announce the
___________________________________
decision
© OTHM Ltd Dip3 ___________________________________
___________________________________
39
___________________________________
Your Experiences
• What happened when you first joined your
___________________________________
organisation?
___________________________________
• What aspects made you feel positive
about the company?
___________________________________
• What aspects gave rise to doubts?
• Did the job meet your expectations? ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Conduct a Selection Interview
• So now we will role play a series of

___________________________________
selection interviews
___________________________________
• Observers will assess against the
selection criteria
___________________________________
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
How Did It Go?
• So lets reflect on the exercise and
___________________________________
consider
– Was the interview fair? ___________________________________
– Did the candidate do most of the talking?
– Was the outcome bases of the evidence? ___________________________________
– How well did they assess the ability to do the
job?
– What would you do differently?
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
40
___________________________________
Summary
• Recruitment is a key process
___________________________________
• Good selection means better retention ___________________________________
• Ensure the process is fair and legal
• Think of it as an investment
___________________________________
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
41
Session 5: Job Design and Job
Enrichment
Job design is the process of putting together various elements to form a job,
bearing in mind both organisational and individual worker requirements.
Job descriptions are written statements that describe the duties and
responsibilities of a job.
A person specification outlines the minimum qualifications and attributes a

candidate must have to be able to effectively do a job
Web research
http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemI
d=1073793806
http://www.thetimes100.co.uk/theory/theory--recruitment-selection--349.php
Job description and person specification
Recruiting for a new or existing position, it is important to invest time in

gathering information about the nature of the job. This means thinking about
the tasks that make up the job and the job’s purpose. It is also important to
consider the skills and personal attributes needed to perform the role
effectively. This analysis should form the basis of a job description and person
specification/job profile.
The job description is incredibly important and is essential to the recruitment

process as it provides information to potential applicants acting as an aid in
devising job advertisements and employment contracts. It will also have the
effect of minimising the extent to which recruiters allow subjective judgements
to creep into their decision-making and ensure that people are selected fairly.
It also communicates expectations about performance to employees and
managers to help ensure effective performance in the job.
42
A person specification states the necessary and desirable criteria for
selection. In general, specifications should include details of the skills,
aptitude, knowledge and experience required. The specification should also
include the applicant’s relevant qualifications and the personal qualities
relevant to the job, such as ability to work as part of a team.
Class activity
This task requires you to design a job description and person specification for
the position of a receptionist in a large hotel in central London.
When designing your job description you may want to include the following
key attributes
the job title

the position in the company, including the job title of the person to
whom the employee will report and of those who will report to them, if
any
the location of the job
a summary of the general nature and objectives of the job
a list of the main duties or tasks of the employee
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
43
Now outline a person specification for the role. To do this you need define
the qualities you are looking for in a candidate.
When designing your job specification you may want to consider the
knowledge, experience and skills you would like them to have, separating
those which are essential for the job from those which are desirable
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Exam question
Prepare a job description and a person specification for the position of travel
agent in a travel company that specialises in holidays to North America
Outline the purpose of and importance of a job description and personal

specification job. Explain their role in ensuring the recruitment process is fair
and equitable.
44
Lecture Slides
Understand the role of job design in management
Be able to prepare a job description
Be able to apply this to the industry
___________________________________
___________________________________
Job Design and Job Enrichment ___________________________________

___________________________________
Session 5
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Aims
___________________________________
able to:
1. Understand the role of job design in
___________________________________
management
2. Be able to prepare a job description ___________________________________
3. Be able to apply this to the industry
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
45
___________________________________
What is Job design?
• Deciding what you want the post holder to
___________________________________
do
• Ensuring the job fits with other jobs
___________________________________
• Ensuring the tasks are on similar levels
• Determining the level of pay
___________________________________
• A component of performance
management ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
What is a Job Description?
• A means to ensure everyone has the
___________________________________
same awareness of the job and its
requirements ___________________________________
• If you don’t do it, individuals will tend to
develop in the way they want too ___________________________________
• It’s a description not a prescription
• Recognise the role changes over time ___________________________________
• Review at regular intervals
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Write a Job Description
• List the tasks covered by the job
___________________________________
• Identify line relationships
• Determine what skills are needs
___________________________________
• Ensure that the tasks justify the skills
• Two parts task list and person
___________________________________
specification
• Over to you
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
46
How can Job Design Help ___________________________________
in the Industry?
• Provide planned development to support
___________________________________
the business
• Ensures equity using job evaluation ___________________________________
• Allows comparisons
• Allows flexibility and staff deployment ___________________________________
• Manages the process of role development
• Gives everyone the same understanding ___________________________________
• Identifies areas for re-skilling
© OTHM Ltd Dip3 ___________________________________

___________________________________
___________________________________
Job Enrichment
• Jobs naturally change over time
___________________________________
• Enrichment can mean greater scope or
responsibility ___________________________________
• Can mean using short term projects to
help development ___________________________________
• More reward or status recognising greater
contribution
• Can be a motivator to the post holder and
___________________________________
an incentive to others
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Multi-Skilling
• We all bring a range of skills to a job
___________________________________
– Some we can use
– Some need to be developed
___________________________________
– Some will be inappropriate
• Over time individuals will need to develop ___________________________________
new skills
• Having individuals who can perform a ___________________________________
range of tasks gives you flexibility
© OTHM Ltd Dip3 ___________________________________
___________________________________
47
___________________________________
The Reward Package
• So how do you determine reward
___________________________________
– Job evaluation assessing against set criteria
– Using existing jobs as comparitors
___________________________________
– Consider the worth to the organisation
– Pay is only one aspect consider others ___________________________________
• Leave
• Pensions
• Bonuses
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
48
Session 6: Motivation and Commitment

Motivation is a drive that compels action directed toward a goal.
Motivational theories aim to understand the psychology of motivation and

the factors which underlie the differing types of motivation, forming an
essential part of activating necessary behaviour.
Empowerment is the process of giving someone power and authority
Web research
http://www.thetimes100.co.uk/case-study--motivation-within-creative-
environment--89-376-1.php
http://www.businessballs.com/maslow.htm
Motivation stimulates people and encourages them willingly to put more effort
into doing something. In an organisation you need to harness individual
motivation to help meet organisational goals. For example, if you failed to pay
workers correctly at the end of the month they may become dissatisfied or
unmotivated. Unmotivated individuals may in turn engage in dysfunctional
behaviour, they can be rude or unhelpful to customers or simply not show up
to work.
Well-motivated employees on the other hand will feel happy in the workplace.
Additionally, they are likely to be more productive and produce work of a
higher quality. For example in a restaurant you can identify a waitress that
enjoys her job – she will have a smile on her face and be more than happy to
help. Ultimately, her positive attitude will help ensure that customers are
satisfied.
Although, we all in part work to obtain money to support our subsistence,

motivated individuals are influenced by a number of other factors. A positive
work environment, perhaps created by a helpful understanding manager can
ensure employees are satisfied and motivated. Some staff members are
motivated to gain promotion and respond to challenges. Other employees find
the varied nature of the work motivating and enjoy the opportunity to try
different roles. The key here is that we are all individuals and we all have
different motivations, therefore organisations have to offer a range of
incentives to address individual needs.
49
Class activity
Motivational theories attempt to explain and predict what things will motivate
us. These are built on the premise that if managers can understand the needs
that motivate people, then an appropriate reward systems can be
implemented that fulfil those particular needs and in turn reinforce the
appropriate behavior.
Abraham Maslow developed the hierarchy of needs theory. He identified a set

of needs that he prioritised into a hierarchy. He concluded that individuals
could only work their way up the hierarchy when needs at each stage were
met. For example, he suggested that it was not until safety needs had been
met that social needs could then be fulfilled. In effect this is a five step
process with self actualisation at the top.
Self
Actualisation
Esteem
Social
Safety
Physical
Physiological: These are basic physical comfort or bodily needs: food,

sex, drink, and sleep.
Security/safety: People want to feel safe, secure, and free from fear.
They need stability, structure, and order.
Social needs: This is a need for friends, family, and for social
acceptance and affection from one's peers.
50
Esteem: People want the esteem of others and they want to be
regarded as useful, competent, and important.
Self-actualization: This highest motivation level involves people striving
to actualize their full potential, to become more of what they are
capable of being.
Consider Maslow’s Hierarchy and provide practical examples of how a

hospitality organisation attempts to satisfy each of these needs.
Physiological: ................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Security/safety: .............................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Social needs: ................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Esteem: .........................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
51
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Self-actualization:..........................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Exam question
Demonstrate the relationship between pay and motivation, and its significance
in developing a reward strategy.
How can a good working knowledge of motivational theory be used to

maximise team performance?
Lecture Slides
Understand motivation at work
Understand its effects on performance
Recommend strategies to enhance performance
52
___________________________________
___________________________________
Motivation and Commitment ___________________________________
___________________________________
Session 6 ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Aims
___________________________________
able to:
1. Understand motivation at work
___________________________________
2. Understand its effects on performance
3. Recommend strategies to enhance
___________________________________
performance
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
What is Motivation?
• Motivation is what drives us to achieve
___________________________________
goals.
• In an organisation you need to harness
___________________________________
individual motivation to help meet
organisational goals. ___________________________________
• Unmotivated individuals will engage in
disfunctional behaviours or leave. ___________________________________
However, they can also affect other staff.
© OTHM Ltd Dip3 ___________________________________

___________________________________
53
___________________________________
So What Motivates You?
• Why do you do the job you do?
___________________________________
– Money ___________________________________
– Job Satisfaction
– Status / Social standing ___________________________________
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
Maslow’s Hierarchy of ___________________________________

Needs
___________________________________
•Self Actualisation
•Esteem ___________________________________
•Social
___________________________________
•Safety
•Physical ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Hertzberg
• Motivators things that inspire you to do
___________________________________
things
– Incentives ___________________________________
• Hygiene Factors missing will de-motivate
– They underpin motivation ___________________________________
How can you use these concepts? ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
54
___________________________________
McGregor – Theory X and Theory Y
___________________________________
Stick X Y Carrot
Man by Nature Lazy Man not lazy strives to achieve

___________________________________
Man lacks ambition Man is inherently ambitious
Man dislikes responsibility
Man needs to be led
Man seeks responsibility
Ready to assume initiative
___________________________________
Man is self centred Inherently socially orientated
Resistant to change
Gullible
Not resistant to change
Highly intelligent
___________________________________
Not very bright Product of environment
© OTHM Ltd Dip3 ___________________________________

___________________________________
___________________________________
Kakabadse
• Defines teams and workgroups
___________________________________
• Identifies teams as comprising individuals with
complimentary skills and shared leadership roles ___________________________________
• Politics within teams power is the motivation
• Critical elements
– technical/functional expertise. ___________________________________
– Problem solving
– Decision and interpersonal skills within team
members ___________________________________
– High levels of emotional intelligence
© OTHM Ltd Dip3 ___________________________________

___________________________________
___________________________________
How can this help?
• Important if you manage staff to
___________________________________
understand
– They may not have the same level of ___________________________________
motivation
– Different things work for different people ___________________________________
– They may not share your view of the world.
– These models give us a framework within
which to develop understanding.
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
55
___________________________________
Pay and Reward
• So is money a motivator or a hygiene factor?
___________________________________
• The relationship between pay and motivation.
– Would you work harder for more money? ___________________________________
– If so for how long?
– Would promotion be a reward or a challenge
• Developing a reward strategy ___________________________________
– Menu rewards
– Payment by results
– Seasonal bonuses ___________________________________
– Commission
– Ability of the business to pay
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
How can Staff be Motivated?
• Inspiration is a strong driver

___________________________________
• Leadership ___________________________________
• Shared goals
• Empowerment and self-worth ___________________________________
• Mutual respect
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Cultural Influences
• The culture we grow up in affects
___________________________________
– Attitudes
– Values
___________________________________
– Norms
• These vary considerably and will impact: ___________________________________
– Teamworking
– Effort ___________________________________
– Social values etc.
© OTHM Ltd Dip3 ___________________________________

___________________________________
56
Session 7: Leadership

A leader is someone that has the power to influence people by virtue of their
personal attributes and behaviours
A manager is a person who controls or directs a business
Web research
http://www.thetimes100.co.uk/downloads/enterprise/enterprise_13_full.pdf
http://www.cipd.co.uk/subjects/maneco/leadership/leadshipovw.htm
All organisations need effective leaders to ensure that there is a clear vision
and mission for future success. Leadership is much more than management
as it is the ability to lead a group of people effectively. The biggest difference
between managers and leaders is the way they motivate the people to follow
them. Leaders can be singled out as they must have followers and on the
other hand managers have subordinates. Following is a voluntary activity and
people follow because they want to rather than an employee who may be
forced to obey a manager who has authoritarian control over them.
In order to guide people towards their vision a leader may adopt various styles
and often they can interchange these leadership styles according to the
situation and different leadership qualities may be needed in different
circumstances. It can therefore be concluded that there is no single template
of leadership behaviour and successful leaders do not behave in identical
ways. They may, in fact, act very differently even in similar situations and they
may have quite different personalities.
Overall though leaders should be energetic and committed understanding the

strengths and weaknesses of their employees. In order to elicit commitment a
leader must consistently encourage, reward and inspire others. They will also
have the ability to motivate their followers and elicit change. Change is a vital
element of a great leader, leaders have to know how to create successful
change and motivate others to change, too.
57
Class activity
You are the manager of a chain of fast food restaurants and a new working
practice regime is about to be introduced. In the past few months you have
realised that you need greater staffing levels at peak times when business is
higher.
All staff currently work 40 hours per week, 9am-5pm. You realise that the
restaurant now needs greater flexibility to prepare and cover the busy period
at lunchtime. The flexibility will come from introducing new shift patterns, and
some fulltime staff will now be expected to work a 7am to 3am shift. The
working week for the fulltime staff will also be adjusted to 37 hours per week
and with the hours saved will be filled by new part time staff working 11am-
2pm. You now have to consider how this process can be managed.
Consider the following points in groups and outline how you would manage
this change.
What the intended outcome of this change? .................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
What resistance do you think you may encounter? ......................................................
......................................................................................................................................
......................................................................................................................................
When do you tell people about the change - before it has been decided to
implement it or after? ...................................................................................................
......................................................................................................................................
......................................................................................................................................
How much do you tell staff about the change and why it is necessary? ......................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Considerations of the effect on morale and motivation of workers ................................

58
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Now detail exactly how you would manage this change to ensure a successful
transition to the new shift patterns.
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
59
Exam question
Discuss the following statement: managers and leaders are one and the same
thing.
Using examples outline how excellent leadership in the hospitality industry

contributes to organisational success
Lecture Slides
Understand the concept of effective leadership
Apply leadership skills
___________________________________
___________________________________
Leadership ___________________________________
___________________________________
Session 7 ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
60
___________________________________
Aims
___________________________________
able to:
___________________________________
1. Understand the concept of effective
leadership
___________________________________
2. Apply leadership skills
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
What is Effective Leadership?
• A dynamic process in a group whereby

___________________________________
one individual influences the others to
contribute voluntarily to the achievement ___________________________________
of group tasks in a given situation.
• The leader may be someone other than ___________________________________
the appointed manager so its more than
just authority. ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Leadership types
• Charismatic - Personality
___________________________________
• Traditional - Birth
• Situational - Right place right time
___________________________________
• Appointed - Bureaucratic authority
• Functional - Leader behaviour
___________________________________
– What type have you encountered?

___________________________________
– What type are you?
© OTHM Ltd Dip3 ___________________________________
___________________________________
61
___________________________________
Blake and Mouton
___________________________________
High 9.1 Management 9.9 Management
9 Country Club Team
P
e
8
7
6
___________________________________
o
p 5.5 Management
l
e
5
4
Middle of the
Road ___________________________________
3
2
1.1 Management
1 Impoverished
1 2 3 4 5 6 7 8
9.1 Management
Task
9
___________________________________
Low Concern for Production High
© OTHM Ltd Dip3 ___________________________________

___________________________________
Functional Model of ___________________________________

leadership
___________________________________
So where these overlap is
the optimum. Future
development as well as
the task in hand
___________________________________
Task Needs
___________________________________
Individual Needs
Group Needs
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Generating Employee Commitment
• Good leadership and management

___________________________________
• Listen as well as instruct
• Don’t think you have all the answers ___________________________________
• Use the teams strengths to offset its
weaknesses ___________________________________
• Address individual weaknesses with
support and training
• There is a difference between involvement
___________________________________
and commitment
© OTHM Ltd Dip3 ___________________________________
___________________________________
62
How can you Judge your ___________________________________
own Performance?
• Hold de-briefings and listen closely.
___________________________________
• Do team members feel able to discuss
issues with you?
___________________________________
• The level of resistance to your ideas.
• Did we get the task done, and did
___________________________________
everyone feel positive about it?
• Could things have gone better? ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Management and Leadership
• So is leadership the same as

___________________________________
management?
• Leadership is more than just command its
___________________________________
about creating an environment.
• Let’s role play a situation. ___________________________________
– Who is leading?
– What are they doing? ___________________________________
– How is conflict resolved?
© OTHM Ltd Dip3 ___________________________________

___________________________________
___________________________________
Summary
• Leadership and influencing others is a key
___________________________________
managerial role.
• You will need to ensure that the groups
___________________________________
you manage are directed towards meeting
corporate goals. ___________________________________
• Practice and reflection are vital to refine
your skills in this area. ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
63
Session 8: Career Development

Career development is how individuals manage their careers within and
between organisations.
Mentoring is a process in which a more experienced person supports and

aids a less experienced person in their professional or personal development.
Coaching is a developmental strategy that enables people to meet their goals

for improved performance, growth or career progression.
Web research
http://www.cipd.co.uk/subjects/lrnanddev/coachmntor/mentor.htm
http://www.bized.co.uk/educators/16-19/tourism/working/activity/career1.htm
Career development is the lifelong process of managing progression in the
work place. The quality of this process helps to determine the nature and
quality of individuals’ lives. This is largely due to the fact that for an employee
having a successful career ultimately means that they have more income at
their disposal. However, a career can also be linked to an individual’s sense
of purpose and worth. In order for an individual to progress up a hierarchy the
organisation must invest in training and development for each employee. This
can be costly in terms of both time and money. In today’s fast paced
environment organisations may be reluctant to make long-term commitments
to individuals. This is partly due to the fear their workers once trained may
take their newly acquired skills and knowledge and seek employment else
where.
However, employees willing to invest in developing workforce skills will

undoubtedly be rewarded. Retention rates may be higher in organisations that
invest in employees careers. This is largely due to the fact that individuals
want more than a just a job, they want to see themselves progressing and if
they don’t they may seek employment else where. A good reputation in this
area would be useful when recruiting new workers.
Individuals must also play a role in their future development. Employees have
to be willing to regularly learn new skills and this may also mean that they
have to invest in their own future by obtaining vocational or professional
64
qualifications. So careers are being constructed through the series of choices
about learning and work that people make throughout their lives.
Class activity
The philosophy of a large chain of hotel has always been to promote people
from within the organisation. The chain is fully committed to developing each
employee to his or her full potential. They offer a range of development
programmes that are flexible and individualised.
What skills and qualifications would you expect hotel receptionists to

possess?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
What skills and qualifications would you expect the hotel’s assistant manager
to possess?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Now in groups design a career development program to aid the hotel

receptionist’s transition to assistant manager over a two year period ...........................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
65
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Exam question
Demonstrate using examples from the travel and tourism industry why it is
vital for organisations to invest in career development.
Outline why career development is so important and discuss possible barriers

to implementation.
66
Lecture Slides
Demonstrate the importance of career development
Aply knowledge of causes and symptoms to devise solutions
___________________________________
___________________________________
Career Development ___________________________________
___________________________________
Session 8 ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Aims
___________________________________
able to:
1. Demonstrate the importance of career
___________________________________
development
2. Apply a knowledge of causes and ___________________________________
symptoms to devise solutions
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
67
___________________________________
What is Career Development?
• The process that support an individual to

___________________________________
explore and realize their potential.
• Expressed in terms of advancement and ___________________________________
development.
• Not just promotion could be sideways or ___________________________________
even out of the industry.
• Part of any line managers role to
recognise and develop talent. ___________________________________
• Part of the organisations competitive edge.
© OTHM Ltd Dip3 ___________________________________
___________________________________
Nurturing and ___________________________________

Development Techniques
• Mentoring
___________________________________
• Coaching
• Counseling
___________________________________
• Good performance management
• Management by objectives
___________________________________
• Allowing individuals to explore their own
strengths
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Careers in the Industry
• Proportions of posts within the industry
___________________________________
– Managers 7%
–
–
Chefs
Kitchen Hands
12%
8% ___________________________________
– Waiting 21%
– Bar 13%
–
–
Porter
Housekeeping and maids
6%
14%
___________________________________
– Reception 8%
–
–
Clerical
Cleaning/Maintenance
3%
9% ___________________________________
– Other 2%
• Knight 1971 Patterns of Labour mobility in the Hotel and Catering industry
© OTHM Ltd Dip3 ___________________________________
___________________________________
68
___________________________________
Status
• In any industry jobs vary in status
___________________________________
• Consider the chef at the Ritz over the cook in a
hamburger bar
• Consider how receptionists and maids are viewed
___________________________________
• Individuals enter the industry via
qualifications and/or experience ___________________________________
• Development is by the same means
• People aspire to reach their full potential ___________________________________
• Motivation
© OTHM Ltd Dip3 ___________________________________
___________________________________
So why is Career ___________________________________

Development Important?
• It’s why you’re here.
___________________________________
• Individuals want more than a job they want
to see themselves progressing.
___________________________________
• A good reputation in this area would be
useful when recruiting. ___________________________________
• The war for talent.
• Making the most of your human resources. ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Solutions
• Use appraisal to explore individuals
___________________________________
strengths and weaknesses
• Don’t prejudge
___________________________________
• Consider all the options
• Use you own experiences to inform the
___________________________________
discussion
• Think of the wider organisational benefits ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
69
___________________________________
What are the Barriers?
• Low self-worth
___________________________________
• Authoritarian management ___________________________________
• Blame culture
• Fear of failure
___________________________________
• Lack of clarity on the options available ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Funding
• Most development is funded by the
___________________________________
business itself
• Courses ___________________________________
• Lead time to become competent
• Mentoring etc
• Some costs can be offset against tax ___________________________________
• There are some governmental agencies
• Business Link (UK)
• Learning Skills Councils
___________________________________
• Learndirect
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Summary
• Career development is a means to direct
___________________________________
individuals to benefit themselves and the
organisation. ___________________________________
• There is a wide range of careers within the
industry. ___________________________________
• All line managers have a duty to develop
staff and themselves. ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
70
Session 9: Learning and Development

Training refers to the acquisition of knowledge, skills, and competencies
Skill is a measure of a worker's expertise. Skilled workers are generally more

trained, higher paid, and have more responsibilities than unskilled workers.
Knowledge is expertise acquired by a person through experience or

education
Web research
http://www.thetimes100.co.uk/case-study--the-role-training-development-
career-progression--100-271-1.php
http://www.peoplemanagement.co.uk/pm/articles/2010/03/mcdonalds-to-offer-
work-experience-qualification.htm
It is vital that organisations invest in training and learning for all employees.
Through training people will develop their skills and knowledge and this will
enable them to do a better job. In order to develop, workers’ training needs
have to be identified. These are established by assessing the employee’s
current skills and comparing them to the skills needed to do a particular job.
Any deficiency on the part of the employee can be identified as a training gap
and a suitable training strategy can be put in place.
There are many different types of training and it can occur on the job or off the
job. An employee can learn through shadowing a more experienced colleague
or by watching a training video. Organisations can encourage employees to
take an active role in their learning by rewarding those that progress with
wage increases or promotion.
Training and learning is a continuous process. Employees need positive,

structured feedback on their progress in order to find direction to develop.
This type of investment in training will be motivational for workers and this will
reflect in their behaviour with customers as they are inspired to provide higher
levels of customer service.
71
Class activity
Any hospitality or travel organisation needs to monitor and evaluate the costs
and benefits of its training and development activities. The business needs to
know if the investment in time and money is producing improvements.
Therefore it is vital that organisations set objectives for their employees and
then assess whether each objective is actually met. Any objectives need to
be SMART
Specific – describes exactly what needs doing

Measurable – has a target that can be measured against
Achievable – is possible within the trainee’s current role, skills and
experience
Realistic – is achievable within the time and resources available
Time-framed – has a clear deadline.
In a group outline some SMART objectives for a housekeeper at a luxury

hotel. The purpose of the Housekeeper job is to ensure rooms are cleaned
and maintained to the highest standard of cleanliness. Duties include making
beds, cleaning bathrooms, polishing, hoovering and dusting.
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
In a group outline some SMART objectives for an assistant manager of a

coffee shop. The assistant manager is responsible for staff development,
increasing sales and customer service levels, in addition to working to profit
and wage targets.
......................................................................................................................................
......................................................................................................................................
72
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Exam question
Outline a suitable training plan for a new receptionist working at a large city
centre hotel
Explain why it is vital that organisations in the hospitality industry invest in the
learning and development of all their employees
Lecture Slides
Understand the importance of a range of training interventions
Understand how to train individuals
Identify suitable learning and development solutions for an individual’s

training needs
___________________________________
___________________________________
Learning and Development ___________________________________
___________________________________
Session 9 ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
73
___________________________________
Aims
___________________________________
able to:
1. Understand the importance of a range of
___________________________________
training interventions
2. Understand how to train individuals ___________________________________
3. Identify suitable learning and
development solutions for an individual’s ___________________________________
training needs
© OTHM Ltd Dip3 ___________________________________
___________________________________
What is Learning and ___________________________________

Development?
___________________________________
• People learn and need to learn constantly.
___________________________________
• People develop through learning.
• You as managers need to direct this for ___________________________________
the benefit of the individual and the
organisation.
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Elements of Learning
___________________________________
• Attitude
• Skills ___________________________________
• Knowledge ___________________________________
These help you establish the best form of
intervention. However the trainee must
accept the need to learn. Appraisal can
___________________________________
help.
© OTHM Ltd Dip3 ___________________________________
___________________________________
74
___________________________________
The Learning Cycle (Kolb)
___________________________________
Experience
___________________________________
Action Reflection
___________________________________
Each step feeds

___________________________________
Theory onto the next
constantly
© OTHM Ltd Dip3 ___________________________________

___________________________________
___________________________________
So how do you do it?
• Create an experience either at work or in
___________________________________
training where the individual can use trial
and error. ___________________________________
– By example/demonstration
– By simulation ___________________________________
• Encourage successful behaviour
• Feedback areas for improvement ___________________________________
Think about learning to drive as an example.
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
___________________________________
Appraisal and Performance
Management ___________________________________
Human Resource Management - ___________________________________
Session 10
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
75
How can Organisations ___________________________________
Harness Learning?
___________________________________
• Tying into the Business and HR plan.
• Helping existing employee develop to ___________________________________
meet future needs.
• Developing a culture where ___________________________________
experimentation is acceptable.
• Rewarding those who actively develop. ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
The Training Gap
• First establish what the individual needs to
___________________________________
achieve.
___________________________________
• The find out what they can do or know.
• The difference is the training gap. ___________________________________
• Find the best way to help the individual
cross the gap. ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Summary
• Development is a fundamental part of the
___________________________________
human condition
• Organisations are facing constant change
___________________________________
• Steering individual development is both
cost effective and motivational ___________________________________
• This could help give you a competitive
edge ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
76
Session 10: Appraisal and Performance
Management

Appraisal is an employee evaluation method seeking the measurement of
employee work effectiveness.
Performance management is the process of creating a work environment in

which people perform to the best of their abilities
Web research
http://www.cipd.co.uk/subjects/perfmangmt/appfdbck/perfapp.htm
http://www.thetimes100.co.uk/theory/theory--performance-management--
348.php
Performance management is a broad term which covers all organisational
polices and practices which contribute to the effective management of
individuals in order that they can achieve high levels of organisational
performance. What practices are adopted will largely depend on the
organisational context. Performance management should be seen as a
holistic approach in which individuals take responsibility for the continuous
improvement of their skills, behaviour and performance. Managers should
clarify what they expect employees to do, they must set targets and ensure
that employees are meeting them.
One major part of performance management is the performance review, or

appraisal as it is more commonly known. This system of review is a chance
for managers to provide employees with the opportunity to reflect on past
performance. This presents a clear opportunity to make development and
improvement plans. However, it is vital that the meeting is objective and not
unduly critical, as an unfair evaluation will be both upsetting and de-motivating
for workers. In the past appraisal practices have been criticised for being too
subjective. This means that managers simply make decisions based on
flawed judgements or evidence. A manager is the cornerstone of the process
and they have to create an open and honest meeting if they are to meet the
aims of an effective review.
77
Class activity
You are the manager for a large chain of Italian restaurants and complete
your annual performance reviews once a year. The company operates a
process of 360 degree appraisals and this means that for each appraisal
interview there will be performance data generated from several sources.
In groups of three you are going to act out a performance appraisal interview
for Paul the head waiter at this restaurant. As this is a 360 degree process
you will all adopt slightly roles.
Begin by choosing which employee you want to represent. You can either
play the manager, the head waiter or the head chef. Read the information
below and write an assessment to prepare for the appraisal interview. Once
you have done this it is time to act out an appraisal interview.
Manager (Sarah)
As the manager you are going to lead the appraisal process. You believe that
on the whole Paul is a valuable member of the waiting team. He has for most
of the year been on time smartly dressed and polite to customers. However,
you have become aware that in the last couple of months he has frequently
turned up late and been unshaven. Coupled with this you have you have
noticed that the restaurant is getting untidy and disorganised.
More worryingly you have received a complaint from a customer saying that a
waiter was rude to him. You believe that Paul, as the head waiter, should be
responsible for enforcing discipline and make sure that the other members of
the front of house team maintain high standards and levels of customer
service.
Head waiter (Paul)
On the whole you feel committed to your job. However, you feel that in the last
few months you are increasingly disillusioned in your role. This is largely due
to the fact that you believe you get very little support from your line manager.
When you try and enforce discipline and get your workers to maintain high
standards you feel that you are being ignored. For example you have tried to
get each member of the waiting team to complete a cleaning rota. This is a
bone of contention as these jobs only get completed on your shifts and the
manager seems to take no responsibility for this. You feel that you can’t be
there all the time and that the manager should help to enforce high standards
of service.
Also in the past few months the restaurant is getting busier. You feel that you
have played a part in the restaurant’s success as you have helped build up
regular clientele, as your customers always leave the restaurant happy.
However, during this busy period some full time members of staff have
resigned as a result of disagreements with the head chef. The end result is
78
that you have been required to work extra shifts. You are now frequently
required to work 70 hour weeks and only have a day off every other week.
This is wearing you down and you feel physically exhausted.
You also wish to note that you were promised almost six months ago that you
would be trained up for a supervisor’s role.
Head Chef (Gordon)
You have known Paul for a number of years. Over this period of time he has
become a close personal friend. You feel on the whole that Paul does an
excellent job. He makes sure that food leaves the kitchen quickly and
efficiently. He runs a tight ship and on the whole makes sure that all members
of the waiting staff follow the high standards he has set. He is always on time
and smartly dressed.
However, you have become increasingly worried that on his nights off you
have noticed that some members of the waiting team become lazy and don’t
complete their cleaning duties. You feel that this issue has to be dealt with
and you feel that this is the manager’s problem and that Paul is being put
under too much pressure.
Now you have completed the appraisal discuss the following.
Do you think that all parties can make an objective assessment of Paul’s
performance?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Do you think that it is fair to assess an employee’s performance in an annual

review based on the last few months. If not why not?
......................................................................................................................................
......................................................................................................................................
79
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Exam question
Outline the importance of performance appraisal and detail how the process
should be managed over the course of the year.
Explain why it is vital that organisations in the hospitality industry invest in

performance management strategies
Lecture Slides
Understand the role of appraisal
Develop effective performance management techniques
___________________________________
___________________________________
Appraisal and Performance
Management ___________________________________
Session 10
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
80
___________________________________
Aims
___________________________________
able to:
___________________________________
1) Understand the role of appraisal
2) Develop effective performance ___________________________________
management techniques
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
What is Appraisal?
___________________________________
Appraisal - a discussion carried out to meet
a range of objectives. ___________________________________
1. To review progress and priorities.
2. To tackle and resolve problems in these ___________________________________
areas.
3. To discuss individual training and
development needs.
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
• Performance management, ensuring
___________________________________
individuals know what is required.
• Motivation, showing commitment. ___________________________________
• Harnessing the skills available.
• Development of the individual in a ___________________________________
managed way.
• Organisationally as a means of
communicating corporate goals and plans.
___________________________________
• As a means of getting people on board.
© OTHM Ltd Dip3 ___________________________________
___________________________________
81
___________________________________
Performance Management
• Set and communicate objective standards
___________________________________
• Measure how these are met
• Communicate constantly ___________________________________
• Use appraisal
• Train to improve poor performance ___________________________________
• Reward above average performance
• Ensure good discipline and grievance in ___________________________________
place
© OTHM Ltd Dip3 ___________________________________

___________________________________
The factors in a Good ___________________________________

Appraisal
• Joint exploration
___________________________________
– Open and honest
– Not apportioning blame ___________________________________
• Defining the parameters
– Make sure you both understand the objectives
– Its about exploring and improving performance ___________________________________
• Win-Win situation
– Both parties need to feel positive ___________________________________
• You have to live with your mistakes
© OTHM Ltd Dip3 ___________________________________

___________________________________
___________________________________
Reward
• How can you manage reward?
___________________________________
– Pay
– Flexible working ___________________________________
– Promotion
– Time off ___________________________________
– Benefits packages
– Recognising achievement ___________________________________
• Consider motivation and how it varies
© OTHM Ltd Dip3 ___________________________________
___________________________________
82
___________________________________
Aims
___________________________________
able to:
1. Understand disciplinary and grievance
___________________________________
procedures and their operation.
2. Deal with poor performance at work ___________________________________
3. Contribute appropriately to both
disciplinary and grievance hearings ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
What is Discipline and Grievance?
• Discipline – the processes through which

___________________________________
organisations can deal with poor employee
behaviour. ___________________________________
• Grievance – the process through which
individuals can raise complaints with the
employer.
___________________________________
• In the UK these are covered by specific
legislation - make sure your procedures ___________________________________
comply with local legislation.
© OTHM Ltd Dip3 ___________________________________
___________________________________
83
Session 11: Disciplinary and Grievance
Management

Disciplinary procedures are organisational processes designed to ensure
that employees’ conduct is maintained at a required level and also to
encourage improvement.
Grievance is a hardship suffered, which gives rise to grounds for a complaint
Web research
http://www.cipd.co.uk/NR/rdonlyres/60F93155-8DE9-440A-9EFE-
B295E97EC07B/0/Dispute_resolution_leaflet.pdf
http://www.personneltoday.com/articles/2010/03/19/54900/british-airways-
could-face-tribunal-claims-for-labelling-sick-staff-as.html
Employers use disciplinary procedures to tell employees that their
performance or conduct isn't up to the expected standard and to encourage
improvement. However, disciplinaries can be de-motivating and demoralising
to employees. This is especially true if there is a sense of injustice
surrounding the dispute. All employers in the UK have to adhere to strict
legislation when considering whether to consider disciplinary action, however
sometimes organisations can take a heavy handed approach to issues of
grievance.
In an ideal situation problems in the workplace should be addressed before

they even get to the stage of becoming disciplinary or grievance issues.
Wherever possible, managers should be trained to deal with conflict. This type
of training will give them the management skills and the confidence to step in
at an early stage, where they suspect an issue is arising such as in instances
where an employee’s performance, attendance or behaviour falls below
acceptable standards. In many cases this type of early intervention will defuse
workplace disputes and prevent them from escalating to the point where the
formal disciplinary procedure has to be used.
In the cases where disciplinary proceedings are unavoidable then every

precaution should be taken to ensure that they are both fair and transparent.
Ensuring the process is fair will mean that workers should have a right of
appeal to a higher authority if they feel that any judgement made is unjust.
84
Class activity
Jane is a chef in a busy city centre Pizza restaurant. She has worked for the
organisation for nearly nine years. In this time she has always been
hardworking and punctual. She has never had a disciplinary before.
However, last Sunday it was reported to you (the general manager) that Jane
turned up to work an hour late. Some members of staff also reported that they
felt that Jane was not fit to work as there was a strong smell of alcohol on her
breath and she appeared to be slightly disorientated.
As the general manager you have now decided that this issue has to be
addressed. You feel that it is important to hear Jane’s explanation and you
firstly ask her to write a statement justifying her actions on the day concerned.
Now you are going to act out a disciplinary interview. In groups of two one of
you should play the role of Jane and the other the part of general manager.
As the general manager you need make a list of all the available evidence.
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Jane, you need to provide an explanation of your actions
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
85
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
After this process is complete the general manager needs to make a decision
on what action to take. Whatever you decide, at this point Jane should also be
offered the right of appeal to a higher authority against your decision.
You have three options,
1. You can accept Jane’s explanation take the matter no further

2. You an issue a verbal warning
3. Or you can sack Jane for gross misconduct.
Outline your decision below and provide justification.
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Jane, you now need to consider if you believe the manager’s decision to be
fair and transparent. If not why not?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
86
Consider the type of negative consequences that an inaccurate decision can
lead to
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Exam question
Define disciplinary action and outline why is it essential to ensure that
disciplinary procedures are fair and transparent.
As an employer what things need to be considered before embarking on

disciplinary action?
87
Lecture Slides
Understand disciplinary and grievance procedures and their operation.
Deal with poor performance at work
Contribute appropriately to both disciplinary and grievance hearings
___________________________________
___________________________________
Discipline and Grievance ___________________________________
Session 11
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Aims
___________________________________
able to:
1. Understand disciplinary and grievance
___________________________________
procedures and their operation.
2. Deal with poor performance at work ___________________________________
3. Contribute appropriately to both
disciplinary and grievance hearings ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
88
___________________________________
What is Discipline and Grievance?
• Discipline – the processes through which

___________________________________
organisations can deal with poor employee
behaviour. ___________________________________
• Grievance – the process through which
individuals can raise complaints with the
employer.
___________________________________
• In the UK these are covered by specific
legislation - make sure your procedures ___________________________________
comply with local legislation.
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Some Facts
• In the UK
___________________________________
– 20% of workplaces have faced a tribunal
claim between 200 and 2005. ___________________________________
– 64% without trying to resolve with employer.
– 65% smaller employers have no procedures. ___________________________________
– Claims trebled since 1990.
– Average award £6776. This does not include
legal and management costs.
___________________________________
– Only 15-25% eligible cases go to tribunal
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Dealing with Poor Performance
• Set the standards at an early stage.

___________________________________
• Feedback constantly on good and bad
performance.
___________________________________
• Ensure everyone knows what is expected.
• Make the standards part of the contract.
___________________________________
• Make sure the standards are fully
enforced. ___________________________________
• Do not get emotional stick to the facts.
© OTHM Ltd Dip3 ___________________________________
___________________________________
89
___________________________________
Dismissal
• This is when an employment contract is
___________________________________
terminated.
• Requirement to have a procedure
___________________________________
• Warnings for minor offences
• Reasons for dismissal
___________________________________
– Misconduct
– Gross misconduct ___________________________________
– Summary dismissal
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Legal Aspects
• From 1st October 2004 UK law requires
___________________________________
the use of formal procedures.
___________________________________
• Protection against unfair dismissal without
due process.
___________________________________
• Penalties for non compliance.
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Grievance Hearing
• Defined as a hearing which concerns the
___________________________________
performance of a duty by an employer in relation
to a worker:
– So this allows employees to express their dis-
___________________________________
satisfactions.
– This is more than just a simple compliant though it
could lead from one. ___________________________________
– This can cover both the formal contract and the
psychological one.
– The pre-hearing work is key. If the employees ___________________________________
complaint is valid better to settle early.
© OTHM Ltd Dip3 ___________________________________

___________________________________
90
___________________________________
Your Role
• You may be involved as a line manager
___________________________________
– Collect and document the facts
– Ensure you have acted to deal with things at ___________________________________
an early stage
– Don’t take things personally ___________________________________
• You may be asked to hear cases
– Judge only on the facts presented. ___________________________________
• You may need to use these yourself.
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Summary
• Discipline and Grievance procedures
___________________________________
come into play when normal managerial
processes fail ___________________________________
• Discipline allows the employer to deal with
poor performance or unacceptable
behaviour.
___________________________________
• Grievance allows employees to raise
issues they feel need resolution. ___________________________________
• This is underlined in law.
© OTHM Ltd Dip3 ___________________________________
___________________________________
91
Session 12: Absence Management and
Handling Staff turnover

Redundancy occurs when an employee is no longer required.
Absence is a period when an employee is not at work
Exit interview are conducted with departing employees with the aim of the
learning reasons for departure, on the basis that criticism can aid
organisational improvement.
Web research
http://www.cipd.co.uk/subjects/hrpract/absence/absncman.htm
http://news.bbc.co.uk/1/hi/uk_politics/8494719.stm
There are many reasons why people take time off work, from short-term
sickness, annual leave, maternity leave to compassionate leave. There are
also instances where employees take unauthorised time off. This is often
unpredictable and can cause disruption due to increased workload and stress
for the remaining employees. It is therefore essential that managers have
procedures to monitor absence to ensure that it is controlled effectively. To
deal successfully with absence, organisations have to ensure that they have a
clear policy in place that outlines procedures employees have to follow if they
need to be absent from work at any time. This may include booking holidays
well in advance with managers or reporting sickness in good time.
Employees may also leave organisations. This may be due to internal factors
such as redundancy or simply because they choose to resign having found
alternative employment. Productive and loyal workers will be greatly missed
by the organisations and it is essential to monitor this process to find out the
reasons behind an employee’s departure. This will help organisations to make
the necessary changes to ensure the retention of workers in the future.
To facilitate this process exit interviews are often conducted with departing
employees, with the primary aim to uncover reasons for departure. For the
organisation constructive criticism can aid organisational improvement. Exit
interviews can also enable transfer of knowledge from the departing
employees to their replacement. From the departing employee’s perspective,
92
an exit interview is a chance to give some constructive feedback, and to leave
on a positive note.
Class activity
Why might an employee be absent from work?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Why is it important to ensure that there are clear policies to deal with absence
in the workplace?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
An exit interview is designed to uncover why employees are leaving an

organization.
Outline a list of possible questions you could ask in an exit interview to

uncover the reasons behind an employee’s departure and establish things
that could be done to prevent future departures.
For example,
1. What is your main reason for leaving?
2. What are the other reasons for your leaving?
......................................................................................................................................
93
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
What other type of policies could an organisation introduce to encourage the

retention of workers?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Exam question
What is an exit interview and why is it important for an organisation to conduct
these?
Outline the main factors that cause absence in the workplace and explain how
instances of absence can be reduced.
94
Lecture Slides
Understand why staff absence is such a key area
Be able to take action to deal with problems
Conduct exit interviews and explain their value
Prepare an action plan to handle redundancies
___________________________________
___________________________________
Absence Management ___________________________________
Session 12
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Aims
___________________________________
1. Understand why staff absence is such a key
area ___________________________________
2. Be able to take action to deal with problems
3. Conduct exit interviews and explain their value
___________________________________
4. Prepare an action plan to handle redundancies
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
95
___________________________________
What is Absence Management
• Dealing with sickness

___________________________________
– Regular short periods
– Monday/Friday i.e. patterns ___________________________________
– Using cumulative triggers number of
absences over specific periods
– The type of sickness
___________________________________
• Controlling leave
• Recording ___________________________________
• The line manager’s role
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
The Determinants of Absenteeism
• Steers and Rhodes model.

___________________________________
• Brook and Brice model.
• In UK nine days per employee per year
___________________________________
• Risen by 8.6% between 2002 and 2003
• In 2001 census 10% of the UK population
___________________________________
stated their health was not good.
• CIPD Survey on absence management. ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Redundancy
• A redundancy occurs when the job is no
___________________________________
longer needed
• The post holder can either be relocated or
___________________________________
faces job loss
• Significant legal aspects ___________________________________
• Good HR Planning can reduce the need
for redundancies ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
96
___________________________________
Redundancy
– Remember the effects on those who stay.
___________________________________
• How might they feel?
– Deal with the matter sensitively. ___________________________________
• Even those who stay will be uneasy.
– Consider the effects on the business ___________________________________
• Disgruntled ex staff.
• The belief you are in trouble
• The effects on potential future employees ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
So how do you Handle ___________________________________

Redundancy?
• Remember its not a comment on the
___________________________________
individual. It’s the job that goes.
• Consider redeployment to other work.
___________________________________
• Consider re-training for other work.
• Assist with job searches.
___________________________________
• Keep communicating with those who are
leaving. ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Staff Turnover
• The number of individuals who leave in a
___________________________________
year as a percentage.
• High staff turnover indicates a problem
___________________________________
perhaps with selection.
• Replacing staff is costly and time ___________________________________
consuming.
• New staff take time to be fully effective. ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
97
___________________________________
Exit Interviews
• When individuals opt to leave ask them why.
___________________________________
This allows you to review against your practices.
• So its about the future not the past. ___________________________________
• We will now role play such a situation.
– Did the job not meet their expectations
(Recruitment/Selection) ___________________________________
– Better prospects(Reward strategy)
– Management Style (Leadership)
– Not fitting in (Induction) ___________________________________
– Not being stretched (Development)
© OTHM Ltd Dip3 ___________________________________

___________________________________
___________________________________
Exit Interviews
• How who you conduct these?
___________________________________
• Who would conduct them?
• How are they different from other
___________________________________
interviews?
• How would you collate the information?
___________________________________
• What would you do with it?
• What actions could you take?
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Summary
• Absence via sickness is an unpredictable
___________________________________
additional cost to the business
• Can also stress for those at work
___________________________________
• Redundancy is when jobs are no longer
required ___________________________________
• Good records are vital
• Exit interviews allow you to review ___________________________________
practices for the future
© OTHM Ltd Dip3 ___________________________________
___________________________________
98
Session 13: Individual Differences: Using
them to improve Customer Relations

Team is a group of people with a common purpose
SWOT analysis is a technique designed to analyses any situation. It involves

considering the strengths, weaknesses, opportunities and threats.
Web research
http://www.cipd.co.uk/subjects/pay/general/tmreward.htm
http://www.belbin.com/
Organisations are made up of individuals each with their own personalities

and expectations. It is a manager’s job to ensure that these individuals are all
working in the same direction to fulfil the organisation’s objectives. At times
these individuals are grouped together formally and asked to form teams in
order to reach a common goal.
A team is a group of people, each of whom possess particular expertise; each

of whom is responsible for making individual decisions but who together have
a common purpose. An effective team can be more productive than the sum
of the individuals. However, in order for a team to work effectively together
there has to be trust, cooperation and support. Team morale can be
enhanced if team members agree upon objectives and ways of working.
Each team member should understand how he or she is to function within the
team. The responsibilities of each individual should be defined before work
begins and members of the team should agree upon their objectives. This
consensus is not easily achieved as team members may have different views
about the best way to approach a problem.
There are many benefits to working in a team and a team has better
combined skills than any one of its members. Working in teams also
increases motivation among individual workers as the group encourages
members to work hard for the benefit of the team.
99
Class activity
When considering your own career, conduct a SWOT analysis.
What are your Strengths?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
What are your Weaknesses?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
What Opportunities do you have?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
What Threats do you have to face?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
100
Provide examples of team-working in a travel and hospitality organisation that
you are familiar with
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
In these cases what are the advantages of working as a team rather than as
individuals?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Exam question
Using examples from travel and hospitality organisations outline the ways in
which team working can be used to increase performance.
Outline the main advantages of team working for travel and hospitality
organisations
Lecture Slides
Assess the benefits of individual differences of people in achieving

effective HR Management
Recommend appropriate approaches to obtain employee commitment
101
___________________________________
___________________________________
Individual Differences ___________________________________
Human Resource ___________________________________
Management - Session 13
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Aims
___________________________________
able to:
1. Assess the benefits of individual
___________________________________
differences of people in achieving
effective HR Management ___________________________________
2. Recommend appropriate approaches to
obtain employee commitment ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
What is it that makes us ___________________________________

Different?
• Culture and upbringing
___________________________________
• Experiences
• Education
___________________________________
• Self image and attitude
• Religion
___________________________________
• Nature v Nurture the psychology of self
• Genetics
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
102
___________________________________
Consequences
• Recognising that people are individuals is
___________________________________
basic to effective management
___________________________________
• Differences in strengths and weaknesses
need to be recognised and developed
___________________________________
• Teams tend to work better than individuals
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Benefits
• The problem of the corporate clone.
___________________________________
• The need to think creatively ___________________________________
• Having a wider pool gives a wider view.
• Legal compliance and avoiding tribunals
___________________________________
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Working in Teams
• Belbin identified 8 team types and showed
___________________________________
that having this variety meant it was
stronger than the sum of its parts. ___________________________________
• The industry relies on individuals working
together. All parts need to fit together to ___________________________________
ensure good service delivery and thereby
enhance the overall reputation. ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
103
___________________________________
SWOT
• There is a technique widely used in assessing
___________________________________
any situation
• S Strengths ___________________________________
• W Weaknesses
• O Opportunities ___________________________________
• T Threats
When dealing with individuals at work use the
strengths to overcome the weaknesses. Use the ___________________________________
threats as opportunities.
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Actions to Develop Commitment
• How can you make people feel valued?

___________________________________
– Support and praise
– Listen ___________________________________
• Have realistic feedback methods
• Empathise ___________________________________
– Set realistic challenges
– Share the corporate view
– Recognise the difference between
___________________________________
involvement and commitment
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Summary
• We are all individuals and therefore
___________________________________
different.
• These arise from a range of experiences
___________________________________
and circumstances.
• Accommodating differences allows greater ___________________________________
flexibility.
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
104
Session 14: Managing Diversity

Equality or equal opportunities in the workplace is based on the legal
obligation to comply with anti-discrimination legislation
Diversity in the workplace recognises the value a varied workforce
Ethnic minority is a group that has different national or cultural traditions

from the majority of the population
Web research
http://www.cipd.co.uk/subjects/dvsequl/general/divover.htm?IsSrchRes=1
http://www.thetimes100.co.uk/downloads/lloydstsb/lloydstsb_12_1.pdf
All organisations have a varied workforce. Employees are likely to be of
different ages, genders and from very different cultures. It is essential that
organisations recognise this variety and to treat all workers equally. For all
organisations in the UK it is unlawful to discriminate on grounds of sexual
orientation, gender, age, disability, race and religion. Over the years, the
government has created laws to provide a framework between employers and
employees. These laws are designed to make sure everyone has the same
opportunities and provide the minimum standards that businesses must
comply with. If these laws are breached there may be severe consequences
in the form of legal action.
However, a successful business will automatically focus on the advantages of

having a diverse range of people working for them. Employing a diverse
workforce enables the organisation to have a wider range of talents and skills.
In turn these will lead to creativity and innovation. On top of this businesses
need to mirror the communities and cultures they work in. This will enable
them to understand and anticipate the diverse needs of their customers. In
order to get the best from staff and meet the varying needs of their diverse
customers, it is very important for businesses to 'manage diversity'. This
means that they need to recognise, respect and value people's differences.
In the future diversity in the UK will continue to be an important issue as

society is becoming increasingly more diverse. For example ethnic minorities
make up 8% of the external labour market and the population is becoming
105
older. By 2016 there will be more adults aged 45-59 than in any other age
group (source: times100).
Class activity
Outline the different types of diversity in the workplace
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Explain why it is essential for managers in travel and hospitality organisations

to promote equality in the workplace
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
106
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
What are the possible implications if equal opportunities policies are not
practiced?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Exam question
Outline why it is important for managers in the travel and hospitality industry
to manage diversity.
As the HR manager of a large fast food restaurant you have decided to write a
memo to all branch managers explaining the concept of diversity and outlining
the advantages of managing diversity in the workplace.
Lecture Slides
Understand the concept of diversity
Assess the benefits for the industry
Handle individual differences in a positive way
107
___________________________________
___________________________________
Managing Diversity ___________________________________
Session 14
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Aims
___________________________________
able to:
1. Understand the concept of diversity
___________________________________
2. Assess the benefits for the industry
3. Handle individual differences in a
___________________________________
positive way
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
What is Diversity?
• Understanding different groups within
___________________________________
society
___________________________________
• Recognising their worth
• Working with these to maximum effect ___________________________________
• Allowing everyone to contribute
• Promoting inclusion
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
108
___________________________________
Aspects of Diversity
• Age – young or old
___________________________________
• Race and ethnic origin
• Gender ___________________________________
• Sexual orientation
• Disability ___________________________________
• Religion
• Social status ___________________________________
• Social situation
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
• Valued staff are motivated and perform better
___________________________________
• Your customers are also diverse so it widens
your business appeal ___________________________________
• Strong moral and business case considerations
Legal aspects ___________________________________
• In the EU illegal to discriminate on Sex or Race
• In UK disabled access to services now a
requirement
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
How can we use it?
• In design of our buildings – disabled
___________________________________
access
___________________________________
• In design of our services
• In marketing ___________________________________
• In better service delivery
• In attracting new staff
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
109
___________________________________
Direct and Indirect Discrimination
• Direct discrimination arises when an employer
___________________________________
treats a person less favourably than the way in
which a person not having that particular
characteristic would be treated. ___________________________________
• Indirect discrimination occurs where a provision,
criterion or practice is applied equally but the effect
is to the detriment of a particular group because a
considerably smaller proportion of them are able to
___________________________________
comply.
– Strength tests favour men
– Inflexible working arrangements work against single
___________________________________
parents
© OTHM Ltd Dip3 ___________________________________

___________________________________
___________________________________
Effects on Behaviour
• Treating staff positively ___________________________________
• Motivation
• Commitment
•
•
Discretionary behaviours
Dynamic working environment.
___________________________________
• Treating staff negatively
– Disfunctional behaviours
• Sickness ___________________________________
• Lateness
• Poor performance
•
•
Adverse effects on others in the team
Customer interactions.
___________________________________
• Resignation
• Use of management time on unproductive activities
© OTHM Ltd Dip3 ___________________________________

___________________________________
___________________________________
Summary
• Diversity is a fact of life
___________________________________
• Both the workforce and the customer base ___________________________________
come from a variety of groups
• Having a wider appeal gives you options. ___________________________________
• Effects on company reputation
• Effects on your ability to attract and retain ___________________________________
talent
© OTHM Ltd Dip3 ___________________________________
___________________________________
110
Session 15: Stress Management in the
Tourism and Hospitality Industry

Stress is the process that arises where work demands of various types and
combinations exceed the person’s capacity and capability to cope
Web research
http://www.cipd.co.uk/subjects/health/stress/stress.htm
http://hcd2.bupa.co.uk/fact_sheets/html/stress_workplace.html
Stress in the workplace is an important factor for managers to consider and
control. Although a small amount of stress may very well help employees to
push themselves and to work harder, in other instances stress reaches a point
when employees feel they are unable to cope. The term work related stress is
the process that arises where work demands of various types and
combinations exceed the person’s capacity and capability to cope. In these
instances workers will become increasing unproductive, becoming less
motivated. Stressed workers can display a number of symptoms. They can
feel angry and irritable or they may develop headaches or muscular tension.
In many cases increased stress in the workplace can mean that employees
no longer enjoy coming to work.
Stress however, can be managed and organised workplaces can help to

promote individual health and well-being. This can be achieved by making
sure that workloads set by managers are achievable and employees have the
right training and support to be able to do their job efficiently.
It is vital that managers in the hotel and hospitality industry not only recognise
the fact that stress may be prevalent in the workplace but they must also
provide support and advice for those that are suffering. If organisations fail to
provide this type of commitment then there could be detrimental
consequences. For examples levels of absenteeism and turnover could rise
and once-happy workers could become unmotivated and unproductive.
111
Class activity
As the HR manager of a chain of hotels you have discovered that a number of
your employees have been suffering from stress. You have decided to write a
memo outlining the symptoms of stress
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
What advice would you give employees who may think that they have some of
the symptoms of stress you have described?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Why is it important for managers to identify employees suffering from stress?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
112
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
What are the possible negative implications if the issue of stress in the
workplace is not addressed?
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
......................................................................................................................................
Exam question
As the HR Manager of a large hotel you have been asked to write a plan to
tackle issues of work related stress. What factors would you take into account
before writing this plan?
Why is it important for managers to identify employees suffering from stress

and what are the possible implications if this issue is ignored?
Lecture Slides
Demonstrate an understanding of the causes and symptoms of work-related

stress.
Manage the process of alleviating work-related stress through preventative

strategies and positive management skills.
113
___________________________________
___________________________________
Stress Management in the ___________________________________
Tourism and Hospitality Industry
___________________________________
Session 15
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
Aims
___________________________________
able to:
1) Demonstrate an understanding of the ___________________________________
causes and symptoms of work-related
stress.
2) Manage the process of alleviating
___________________________________
work-related stress through
preventative strategies and positive ___________________________________
management skills.
© OTHM Ltd Dip3 ___________________________________
___________________________________
___________________________________
What is Stress?
• Stress is caused by the release of
___________________________________
adrenalin in the absence of the means to
disperse it. ___________________________________
• The so called fight or flight reaction
• Fundamental to early man’s survival. ___________________________________
• Increasingly a problem in the modern
world. ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
114
___________________________________
What is Stress 2
• So some level of stress is normal even
___________________________________
essential
• Problem comes when individual unable to
___________________________________
recover from fight or flight.
• Everyone has a different level of tolerance. ___________________________________
• Cumulative effect.
• You as managers need to deal with it at an ___________________________________
early stage.
© OTHM Ltd Dip3 ___________________________________
___________________________________
Why Stress is an Issue for ___________________________________

Managers
___________________________________
• In the UK and increasing number take time
off because of stress. It costs the country
7bn. pounds in lost production and ___________________________________
sickness payments
• Stressed individuals may not perform well ___________________________________
within their job.
• Work is not the only source of stress. ___________________________________
• The HSE are making this a priority area.
© OTHM Ltd Dip3 ___________________________________
___________________________________
Cause of Stress: Change in ___________________________________

Organisations
Organisational and technological change
___________________________________
• 70% of UK organisations experienced change ___________________________________
• New Technology
• Changing job profiles
• Need to continually develop new skills
___________________________________
• Global markets
• Competition ___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
115
___________________________________
Causes of Stress
• Long working hours
___________________________________
• Demands on individuals time
• Work life balance
___________________________________
• Rising individual expectations
• Lack of control over situations
___________________________________
• Lack of clear goals
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
Stresses within Hospitality ___________________________________

and Travel
• Staff working flexible shift patterns
___________________________________
• Reduction in staffing to reduce costs
• Global Competition
___________________________________
• Customer expectations and demands
• Turnover e.g. seasonal staff – staff
___________________________________
shortages
___________________________________
© OTHM Ltd Dip3 ___________________________________
___________________________________
Occupational Stress in the ___________________________________

Developed World
• 70% of people surveyed cited difficulty
___________________________________
in balancing work and home demands
• Nearly 50% reported unrealistic
___________________________________
deadlines and resulting time pressures
• 43% identified poor communications as ___________________________________
raising stress levels
• 95% view supportive managers as ___________________________________
strongest factor in coping with stress
© OTHM Ltd Dip3 ___________________________________
___________________________________
116
Recognising the ___________________________________
Symptoms of Stress
• Physical Symptoms:
___________________________________
– food disorders, digestion problems, insomnia,
constant tiredness, nervous twitches, nail-biting,
headaches, muscle spasms, nausea,
___________________________________
breathlessness, fainting spells, frequent crying
• Behavioural Symptoms: ___________________________________
– irritability, lethargy, paranoia, irrational feelings,
anger, loss of interest in appearance, difficulty in
making decisions, problems in concentrating, lack of ___________________________________
trust, not finishing tasks, poor time keeping
© OTHM Ltd Dip3 ___________________________________

___________________________________
Positive Measures to ___________________________________

Reduce Employee Stress
___________________________________
• good employee communication
• listen as well as tell ___________________________________
• realistic deadlines
• empowering staff
• a ‘no-blame’ culture use minor errors as
___________________________________
learning points.
• flexible working arrangements ___________________________________
• promoting a supportive atmosphere
© OTHM Ltd Dip3 ___________________________________
___________________________________
Strategies for ___________________________________

Preventative Action
• health promotion
___________________________________
• recruitment and screening procedures
• flexible working arrangements – part time job ___________________________________
share etc.
• help with travel (living close to work)
• improving the physical working environment ___________________________________
• job design
• managing career expectations ___________________________________
• ensuring mutual trust and loyalty
• positive feedback
© OTHM Ltd Dip3 ___________________________________
___________________________________
117
Revision Session/Exam Preparation
Exam Guidance
How to Succeed
To prepare for an exam a good place to start is by reviewing the topics
covered in this work book to gain a sense of the main issues that have been
covered. Thoroughly revise each section to gauge the types of knowledge you
will be expected to demonstrate. At the end of each chapter refresh your
knowledge by repeating the class activities and answer the each model exam
question. Once you feel that you have a good understanding of the topics
covered in this module then you need to finalise your preparation for the exam
by looking through past papers. You will find two examples at the end of this
chapter.
It is also important to find out when and where the exam is due to be held and
more importantly make sure you allocate more than enough time to arrive at
the venue. Once you are in the exam room and the exam has started the first
thing to do is read the instructions clearly and then read through all the
questions on the paper.
Then:
List, in order, the questions you will attempt

Write your approximate time allowance per question – the question for
40 marks deserves twice the time of a question worth 20 marks
Identify how long you have in total and how long you will spend on
each question
Re-read each question and plan your answers. Don't rush or feel that
you have to begin writing an answer straight away.
If it helps, then it is a good idea to write a brief outline of your planned
answer for each question before beginning to write detailed responses.
This may help if you know your concentration wanes over time. Also, if
you have a mental blank later, you have your outline to which to refer.
Stick to your allocated time for each answer - if you get stuck, move on,
but leave space just in case you have time to return to the question
before the end of the exam.
If, despite your best efforts, you run out of time, just write some notes
to try and demonstrate you understand the subject and the answer
required.
If you are really struggling to answer a question then write down
anything you can think of that's related to the question.
Avoid spending too long on difficult questions for which your answer
may or may not be correct, as you will run out of time to answer the
questions you find easier
118
Be sure to answer the question asked higher marks will be awarded if
you can direct your knowledge to what the question requires
Answer all parts of the question.
Try to identify how the marks have been allocated. For example, if the
answer is worth 20 marks you probably need to cover 5 points well, or
write down ten points with less detail.
Make sure your writing is legible or it will be difficult for the examiner to
mark and you may not get all the marks you deserve.
Remember the examiner is not looking for a "standard" answer but a
coherent, well argued answer and addressing the question set – you
are that is, a fluent and individual essay.
Finally, do not panic, if you have attended all classes over the course of the
module and put in the time to prepare carefully for the exam you will succeed.
119

OTHM Professional Diploma 3 Workbook: Human Resources Management

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OTHM Workbook Covers:Layout 1 20/3/09 09:51 Page 1

OTHM Professional Diploma 3 Workbook

All our rights reserved.

No part of this publication may be reproduced, stored in a retrieval system or

V2005-1 Diploma 3 © OTHM

This workbook is designed to support you through your studies. It is divided

The OTHM Team

V2005-1 Diploma 3 © OTHM

Essential and Recommended Reading 10

Session 1 – Introduction to HRM – Factors Influencing the Nature 11

Session 2 – HR Planning – IT Systems, flexible working in the 19

Session 3 – Psychological Contract, Concept of ‘Employability’, 26

Session 4 – The Recruitment and Selection of Hotel Staff 34

Session 5 – Job Design and Job Enrichment 42

Session 6 – Motivation and Commitment 49

Session 8 – Career Development 64

Session 9 – Learning and Development 71

Session 10 – Appraisal and Performance Management 77

Session 11– Disciplinary and Grievance Management 84

Session 12– Absence Management and Handling Staff Turnover 92

Session 13– Individual differences: Using them to improve 99

Session14 – Managing Diversity 105

Session 15– Stress Management in the Tourism and Hospitality 111

V2005-1 Diploma 3 © OTHM

Recommended delivery 45 hours

3 Psychological contract, concept of ‘employability’, ‘added value’.

4 Recruitment and Selection of hotel staff.

5 Job Design and Job Enrichment

10 Appraisal and Performance Management. Rewarding staff.

11 Disciplinary and Grievance Management.

12 Absence management and handling staff turnover.

13 Individual differences. Using them to improve customer relations.

14 Managing diversity successfully. Understanding of legislation.

15 Stress Management in Tourism and Hospitality industry.

Topics should be indicative of the tourism and hospitality industry

V2005-1 Diploma 3 © OTHM

The OTHM Diploma Paper in Human Resource Management is one of three

Aims and Objectives

The ability to select and apply appropriate HR and management

Communicate effectively in a number of organisational situations:

V2005-1 Diploma 3 © OTHM

Knowledge and Skill Requirements

V2005-1 Diploma 3 © OTHM

12. Legislation – (7.5%)

V2005-1 Diploma 3 © OTHM

V2005-1 Diploma 3 © OTHM

Title Human Resources Management in the Hospitality and Tourism

Marchington, M. and Wilkinson, A. People Management and Development:

Armstrong, M. Strategic Human Resource Management. Kogan Page

Torrington, D. and Hall, L. Human Resource Management. Prentice-Hall

Weightman, Jane. Managing People. IPD, 1999.

The Training Journal

V2005-1 Diploma 3 © OTHM

Explanation of key terms

Service sector: the general definition of the sector is producing a service

External Environment: Factors external to the business that influences its

Disposable income: The amount of income left to an individual after taxes

Managing a successful travel or hospitality business involves acquiring,

V2005-1 Diploma 3 © OTHM

What are the main organisational advantages of providing these incentives to

Why is it essential for organisation to manage absenteeism?

Suggest different practices that may help an organisation to manage