PEOPLE MENAGEMENT AND

DEVLOPMENT
 Contents

Topic Page no.

1. Introduction 03

2. Manpower planning 04

3. PESTLE analysis 05

4. Quantitative analysis 09

4.2 Qualitative analysis 11

5. Working arrangements adapted 13

5.2 Working arrangements that should be adapted 14

6. Pieces of legalisation and implications 15

7. Conclusion 18

8. Bibliography
Introduction:-

This is a report briefly overviews on the man power planning strategies adapted by

the Orchid Hotel. The market factors on the quality and supply of the labour for the

organization. The labour turnover ratio, labour stability ratio of Orchid hotel using

arbitrary figures and then the qualitative and quantitative analysis from the ratios we

get after calculation.

Here is a brief description about Orchid hotels:-

A hotel chain of six hotels in North England. HR had a recruiting plan based on

referrals from current employees this system worked but not for a long time in early

2000 shortage of manpower raised as there were only few people applying for

increasing no of position in the hotel.

Company is planning on increasing their no of new sites at a rate of two new

builds and openings a year until 2010 to be ready or the planned increased demand

from the 2012 Olympic Games in London.

Manpower planning:

Human resource planning is concerned with finding out how many staff and of what

type would be required in the future to meet the organisations goals.

Planning is nothing but using the available assets for the effective implementation of

the production plans. After the preparing the plans, people are grouped together to achieve

organizational objectives.

( http://www.buzzle.com/editorials/9-12-2004-59200.asp)

Need for manpower planning:

It is important for an organization to have an effective manpower planning.

Effective manpower planning not even helps in overcoming under- recruitment it also

helps in preventing over-recruitment. Manpower planning helps in changing strategy

according to customer demand. Manpower planning is not only effective in recruiting

it also helps in development of a training and career plan for the employee.

As provided in scenario that Orchid Hotel is facing understaffing and

they are also planning for an expansion over next three years, there is a need of

skilled staff for such expansion. Thus in such conditions it is necessary to follow

some other method of recruiting staff along with employee referral method. To

overcome shortage of staff it is important to come up with different job-posts like

part-time, apprentice, etc. Other methods to overcome gap between need and actual

staff are the use of freelance/temporary/ agency staff, internal transfers and

promotions, external recruitment, extension of contracts or temporary staff or staff

about to retire, reduce labor turnover, overtime working.

(As per class notes- approaches to human resource planning, 18, march, 2008)
 PESTLE Analysis

Political Factors Economic Factors

 Taxation  Employment rate

 Minimum Wage  Inflation

 Immigration laws  Economic conditions

 Change in government
Sociological Factors Technological Factors

 Culture  Training

 Diversity  Skilled labor

 Beliefs  Infrastructure

 Organizational Image
Legal Factors Environmental Factors

 Work permit  Demographic

 IGS  Educational levels

 HSMP

Political Factors:-

 Tax policy affects the employer.

 National minimum wage also affects the employers and the quality of

workforce. With a few exceptions all labours in the UK aged 16 or over are

legally entitled to be paid a minimum wage per hour. This is independent

of the kind of work they do or the type of company. The rate is reviewed

every year, and any increases take place in October.

There are different levels of National Minimum Wage, depending on the age

of the labour. The rates from 1 October 2007 are as follows:

 • Adults (people aged 22 and over) receive the full rate of £5.52 an hour.

o A 'development rate' of £4.60 an hour is paid to workers aged 18 to

21.

o Young people (those older than school leaving age and younger than

18; you're under school leaving age until the end of summer term of the school

year in which you turn 16) receive £3.40 an hour.

o Apprentices under the age of 19 are not entitled to the National

Minimum Wage. Apprentices who are 19 or over and in the first 12 months of their

apprenticeship are not entitled to the National Minimum Wage.

 Immigration laws also affect the labor supply.

 Change in government will affect the market and also the labor supply

required.

Economical Factors:

 Higher employment rate helps in better economy.

 Inflation attracts all family members to work for their survival and hence

automatically increases the labor available.

 Economic conditions of the country affects the international labor

available. eg pound is a stable and strong currency so the international

labor prefer to work in U.K.

Social Factors:

 Image of the company in front of the society is also important.

 Technological Factors:

 If an organization adapts technology at a large scale the need of skilled

staff arises who should know how to operate such things. So getting

such employee is difficult thus employer has to train them.

Legal Factors:

Work permit is also responsible in supplying quality work force.

Many companies like Tesco and Hilton helped potential employees

with there work permit.

International Graduate Scheme is also helpful for potential graduates in getting

jobs in U.K.

 The Highly Skilled Migrant Program is a point based system of skilled

immigration to the UK. A person qualifies for points in areas such as

education, recent earnings and age. At present the pass mark for a

successful UK HSMP Visa application is 75 points.

The HSMP scheme means one can come to the UK to look for work -

or establish a business - instead of needing an employer to sponsor. It

is a points based system with 5 categories where points are awarded,

as follows:

• Graduate level qualification: higher the qualification, the more

points are awarded.

• Earnings: weighted according to country of employment

• Age: younger applicants qualify for more points

• UK experience: either work or study

• MBA graduates from selected educational institutions qualify

automatically.

Environmental Factors:

 Demography is type of workforce available at all times in respect of

age, nationality, gender etc. It also means the population, its

distribution, interstate migration and rural urban mobility and income

distribution.

 Educational levels, awareness and consciousness of rights and work

ethics of members of society.

Quantitative Analysis
The Orchid Hotel: Data for manpower planning for the year ending

March 2008

Departments Management Kitchen Restauran F.O. H.K Support

t . Services
Numbers 6 29 140 15 99 12

leaving in the

year
Average no 24 45 186 38 140 39

employed in

the year
Numbers with 15 5 30 12 22 19

more than a

year`s

service
Internal 0.60 0.14 0.30 0.05 0.20 0.15

promotion

rate
Expected 0.20 0.35 0.47 0.25 0.20 0.15

growth rate

for the next

year

Labor turnover = No. of employees that have left in a year

/Total no of employed in that year.*100

Labor stability = No. of employees with more then one year

experience / Total no of employed in that year.*100

Labor turnover (Management) = No. of employees that left in year/

Total no of employed in that year*100

=6/24*100

=25

Labor stability (management) = No. of employees with more than

one year experience/total no of employed in that year*100

=15/24*100

=62.5

Labor turnover (kitchen) = 64

Labor stability (kitchen) =11

Labor turnover (restaurant) = 75

Labor stability (restaurant) = 16

Labor turnover (F.O.) = 39

Labor stability (F.O.) =32

Labor turnover (H.K.) = 14

Labor stability (H.K.) = 16

Labor turnover (support services) = 30

Labor stability (support services) = 49

Qualitative Analysis

Analysis of above figures & calculations:

• Strengths

Labor turnover ratio is low at housekeeping department i.e. 14. Which

shows that people working in H.K. have high level of job satisfaction

and are happy with company.

• Weakness

Labor turnover ratio in restaurant and Kitchen are high 75 and 64

respectively at the same time labor stability ratio is a s low as 16 and

11 respectively this shows that employees from restaurant and kitchen

are leaving at a higher rate than the employees staying back and the

gap created due to this is not adequately filled by Internal Promotions.

• Opportunities

Government is giving visa to foreign nationals who are highly qualified

or got professional experience so that the companies get good work

force.

• Threats

National minimum wage is fixed so the employees at the entry level

have great option. So we can see that in restaurant and kitchen labor
turnover ratio is high and labor stability and internal promotion rates are

very low because they do not last in their jobs.

Working arrangements available to the organization

• Full time employees

These are on direct payroll of the organization and employer is liable

for them.

Salary is based on a package for a period of one year. The employees

are entitled for benefit specified by the law.

Strength

Employee is available any time. Employees are liable to contract and

are not allowed to leave the company without a prior notice.

Weakness

Organizations have to provide all the benefits to their employees.

Fulltime employee may lead to extra manpower if not planned properly.

• Management trainee programs

This is a program run for graduates and the staff already working. In

this first training is given to the employee and then he is promoted to

manager level.

Strength

Company can make its managers. It also acts as a internal promotion

for the employee working previously with the company which increases

job satisfaction level.

Weakness

Company is not sure that after completing management trainee

program they can retain the employee or not.

Working arrangements that could help improve labour

productivity and manpower utilization.

• Job share

Companies can employee two employees for a job so that when one

employee is unavailable the other one can take his place and company

is assured that there is someone working at his place.

• Flexible shifts

Company can arrange for waiting staff that can do flexible shifts and

available whenever there is extra workload. Thus company can save a

lot over fulltime staff.

Recent pieces of employment legalization

Employment Description Implication Application for

legalization Orchid Hotel

National Every person There is an The company

minimum working for any assurance of has to modify its

wage organization is getting at least budget for the

liable to get a minimum wage labour cost and

minimum wage of from the pay their

5.52 pounds per employer. employees

hour which is according to

excluding minimum wage

government tax.
Employment This provides a People of all age The company

equality(Age) new definition for group would be should recruit

Regulation indirect employed.ba all staff with a mix

2006 discrimination retirement ages in age.

based on age for below 65. Ban

any type of job. age

discrimination

during

recruitment.

Part time This was brought A part time A proper

workers to give part time worker should contract should

(prevention of workers same be entitled with be signed

less favorable benefits as of full the same ensuring that

treatment) time workers. benefits and even part time

 conditions as a workers should

full time worker be provided with

training required

and should be

entitled for

benefits.
Employment This was It outlaws sexual Employment

equality (sex introduced in harassment and advertisements

discrimination) October 2005 and harassment on should not be

provides ne basis of gender. given on basis

definition of of gender. Also

indirect specific jobs like

decimation service,

regarding sex. housekeeping

should not be

given to a

preferred

gender.

Immigration The asylum and This legalization Employer should

(restriction of immigration act places see original

employment) 1974 requires responsibility on passport and

employer to employer to official

check that the check the document

employees are identification of confirming

permitted to work the employee. employee`s NI

 in U.K. no.

Conclusion

It is necessary to bring changes with time earlier there were less hotels

so there was plenty of manpower available but now a days due to

development in hospitality industry there is a shortage of skilled staff.

This shortage can be overcome by using different ways of recruitment

along with employee referral method. As hotel is going for an

expansion so it is necessary to recruit staff and train them for future.

 Thus I conclude that there is a need of new HR policy to

overcome shortage of staff and to get that staff ready for new openings

in 2010. It can be done by ways of recruitment discussed above.

BIBLIOGRAPHY
Not mentioned.(not mentioned).Recent Key pieces of Legalisation.

Available:http://www.lboro.ac.uk/admin/personnel/geninfo/newlegalisati

on.html. Last accessed 21 March 2008

Yogesh Ambekar. (13/09/2004). Manpower Planning. Available:

http:/buzzle.com/editorials/9-12-2004-59200.asp. Last accessed 02

November 2007.

Murugan,M.Sakthivel(2004). Management Principles And Practices.

Mumbai: New age international. Pg 225-226.

editorial. (2004). manpower management. Available:

http://www.buzzle.com/editorials/9-12-2004-59200.asp. Last accessed

25 march 2008.

editorial. (2008). about hsmp programme . Available: http://www.hsmp-

visa.com/. Last accessed 25 march 2008.

unknown. (2007). The National Minimum Wage: introduction. Available:

http://www.direct.gov.uk/en/Employment/Employees/Pay/DG_10027201.

Last accessed 24 march 2008.

Mr. Francis Thomas (2005). Business Policy. Mumbai: IHM,Mumbai.

9-11.
Class notes- approaches to human resource planning, 18, march, 2008