A PROJ ECT REPORT ON

HUMAN RESOURE MANAGEMENT-EMPLOYEE RELATION

Submitted in partial fulfillment for the award of Master of Business Administration (Punjab Technical University, Jalandhar) 2009-2011

Internal Guide: MR. SIDDHARTA RANJAN BASAK

(H.O.D.)

Submitted By SANTOSH KUMAR RAY ROLL # 9213900026

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NSHM BUSINESS SCHOOL DURGAPUR

(Affiliated To PUNJAB Technical University, JALANDHAR)

Acknowledgment
I would like to acknowledge the contributions of Mrs. Malini sen gupta(Manager-Human Resource) Rose valley hotel,durgapur Mr. Smeer ghosh (Personnel relation officer) Rose valley for their support, ideas and suggestions in completing this project successfully.

I would also like to acknowledge Mr. Siddharta ranjan basak for giving me a proper start and guidance in my project.

DECLARATION

I hereby declare that this project report entitled as Employee relation in Rose valley hotel submitted to, NSHM, Durgapur in partial fulfillment of the requirement ofMBA is a bonafide work done by meand it was not submitted to any other university or institution previously.

Introduction

The objective of this study was to have an overview of HRM and Employee relations in hotel industries in rose valley hotel. The objective was to study the employee relations in hotel industries.

The Human Resources Management (HRM) Function Includes A Variety Of Activities, And Key Among Them Is Maintaining Amicable Relations With The Workforce. The hotel industries Are Such Where Employees Become The Crux Of All Operations. For The Rose valley hotel, It Is The Employee Who Works in rose valley hotel. Even At Rose valley hotel, Where Most Of The Operations Are Automated, Workers Need To give service.

The goal of Employee Relations is to end up with a productive and motivated employee that will help effectiveness. According to me, HR department gets concerned in 3 types of relations. First the employer to the employee, second employees to employer and third is amongst the employees. There is comprehensive information on all 3 and how it benefits the company.

Human Resource Management

Human Resource Management is an integral part of management. It helps the management in taking a strategic view of a very important resource i.e. Human Resource. It helps management in identifying key skill sets, knowledge, values required in the employee and the rewards that are needed to be given to the employees so that the organisation goals are fulfilled. Also like other management functions, it has to ensure that these resources are available at an optimal cost. It has to look into various training and development activities to ensure this. This is a key area for Human Resource Management as it shows their contribution in terms of money. The money here would be the opportunity cost incurred due to appointing of new employees instead of developing current employees for the task in hand.

Functions
From recruiting to orienting new employees, from writing job descriptions to tracking vacation and sick leave, and from instituting and monitoring policies to monitoring benefits, there has been a need for an HR generalist to assist senior management in both establishing a "structure" to holding down costs of administration.

HRM is a function that helps managers recruit, select, train, and develop employees for an organization.

1. Human Resource Planning: is understood as the process of forecasting an organizations future demand for, and supply of, the right type of people in the right number.

2. Job Analysis: is the process of studying and collecting information relating to the operations and responsibilities of a specific job. The immediate products of this analysis are job descriptions and job specification.

3. Recruitment: is the process of finding and attracting capable applicants for employment. The process begins when new recruits are sought and ends when their applications are submitted. The result is a pool of applicants from which new employees are selected.

4. Selection: is the process of differentiating between applicants in order to identify (and hire) those with greater likelihood of success in a job.

5. Placement : is understood as the allocation of people to jobs. It is the assignment or re-assignment of an employee to a new or different job.

6. Training and development: It is an attempt to improve current or future employee performance by increasing an employees ability to perform through learning, usually by changing the employees attitude or increasing his or her skills and knowledge. The need for training and development is determined by employees performance deficiency, computed as follows: Training and development need = Standard performance Actual performance

7. Remuneration: is the compensation an employee receives in return for his or her contribution to the organization.

8. Motivation: is a process that starts with a psychological or physiological deficiency or need that activates behavior or a drive that is aimed at a goal or an incentive.

9. Participative management: Workers participation may broadly be taken to cover all terms of association of workers and their representatives with the decision making process, ranging from exchange of information, consultations, decisions and negotiations to more institutionalized forms such as the presence of workers members on management or supervisory boards or even management by workers themselves as practiced in Yugoslavia. ((ILO)

10. Communication: may be understood as the process of exchanging information, and understanding among people.

11. Safety and health: Safety means freedom from the occurrence or risk of injury or loss. In order to ensure the continuing good health of their employees, the HRM focuses on the need for healthy workers and health services. 12. Welfare: as defined by ILO at its Asian Regional Conference, defined labour welfare as a term which is understood to include such services, facilities, and amenities as may be established in or in the vicinity of undertakings to enable the person employed in them to perform their work in healthy, congenial surroundings and to provide them with amenities conducive to good health and high morale.

13. Transfer: involves a change in the job (accompanied by a change in the place of the job) of an employee without a change in the responsibilities or remuneration.

14. Separations: Lay-offs, resignations and dismissals separate employees from the employers.

15. Employee Relations: is concerned with the systems, rules and procedures used by unions and employers to determine the reward for effort and other conditions of employment, to protect the interests of the employed and their employers, and to regulate the ways in which employers treat their employees.

16. Disputes and their settlement: Industrial disputes mean any dispute or difference between employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non-employment or terms of employment or with the conditions of labour of any person.

EMPLOYEE RELATION

Introduction

People in organisations interact with each other during work, formally and officially as well as socially and informally. During the course of interaction, relationships develop, which are invisible connecting links, coloured by emotions of love, hate, repulsion, respect, fear, anxiety and so on. These are usually mutual but not necessarily reciprocal. If A hates B, it does not follow that B hates A. It is possible that B loves A and even sympathizes with his thoughts. Relationships imply feelings for each other. They may be positive (friendly, wanting to be close) or negative (unfriendly, wanting to be distant). Relationships always exist between interacting persons. There is no neutral point. Indifference is not neutral. Indifference tends to be negative. Relationships influence behaviours at work. Expectations of each other, perceptions of the intentions of either, distributions of assignments, readiness to conform or to rebel, enthusiasm to contribute, etc., are to some extent outcomes of these relationships. Attitudes and motivations influence, and are influenced by, the natu re of these relationships. Employees are among an organization's most important audiences with the potential to be its most effective ambassadors.

Employee Relations are practices or initiatives for ensuring that Employees are happy and are productive. Employee Relations offers assistance in a variety of ways including employee recognition, policy development and interpretation, and all types of problem solving and dispute resolution.

Once there was a time when "Employee Relations" meant labor relations everywhere around the world. Negotiate. Orchestrate. Dictate. HR professionals helped negotiate collective bargaining agreements. The provisions of that contract defined the relationship between management, unions, and workers.

Today, Employee Relations is a much broader concept. It involves maintaining a work environment that satisfies the needs of individual employees and management. Improving employee morale, building company culture, conveying expectations An effective employee relation involves creating and cultivating a motivated and productive workforce. People are generally motivated from within, but what can you do to help foster the type of environment where employees thrive, enabling your company to outperform the competition

Employee Relations starts with determining the type of workplace the company wants. It starts by considering what the company wants its employees to say about working for the company. In a competitive market, it is important to that employees dont feel that they might be treated more fairly elsewhere. After all retention is one of the major functions of HRM. By considering what the company wants employees to say about working for it gives shape to the companys culture. The company culture conveys organization's core values to its employees, customers, vendors, and community. In addition to the workplace climate, the company also considers the types of processes or systems it wants to employ within the workplace to support the company culture and enhance the working relationship that exists between the company and its workforce. Such systems could include communications, policies, training, and development. Also, an essential step in building effective Employee Relations is to evaluate the human, financial and other resources available that reinforce the values and guiding principles the company wants echoed throughout the organization. For example, what type of supervisors and managers does it believe can bring out the best in people and projects? The company should also make certain from the start that employees are not in counter productive work environments where work is more arduous than it needs to be. Is the workplace compliant with employment law? A major source of frustration for employees is the feeling that they were treated unfairly. Good liability management tools are necessary to ensure that the company avoids unnecessary confrontations, time wasters and costly legal battles

Traditionally Employee Relations programs were centered around labor union relations. Today, Employee Relations does not necessarily involve unions. However, it does involve

cultivating the leadership style and workplace practices that help make union organizing activities a less attractive option for employees. Establishing workplace and management principles set the stage for fostering a successful work climate and establishing your company's culture. Effective Employee Relations is about establishing processes that address and nurture that culture. Employees in such organisations develop attitudes very different from those in another organisation that does not make any such distinction and is more secular in its policies. These different attitudes will be reflected in their behaviours outside the organisation and will either strengthen or weaken the social fabric. An organisation in which authority is highly centralised and does not allow its people enough discretion, will develop among its people tendencies for dependency and inability to take responsibility. These tendencies are handicaps in their roles as parents or citizens. The extent of concern shown for the effect of working conditions on employees health has an impact on the society, not merely in terms of general health and costs on medical care, but also in terms of the kind of activities that the members of the society participate in. When an organisation is sensitive to its impact on society, and responds to the societys concerns, it is said to be socially responsive. On the contrary, if it is concerned only with its own purposes and ignores the impact that it has on society, it is said to be socially not responsive Relationships also contribute to stress and conflicts at work, which in turn, affect quality of work life of individuals as well as the quality of organizational outputs, measured in terms of customer satisfaction, competitive advantage, innovation, and so on.

Advantages Of Maintaining good Employee Relation

The Kishore Pump Organisation study proved that a more engaged employee is also a more productive employee. The research also proved, that a more engaged employee is also a more profitable employee, a more customer-focused employee, a safer employee, and an employee who is more likely to withstand temptations to jump ship and in turn it is also true that the longer employees stay with an organization, the less engaged they become.

Following are the advantages of maintaining good relations with the employees.

Reduced Absenteeism

One reason, outside of illness, that employees are absent is stress, and the number one reason employees are stressed has to do with their relationship with their manager/supervisor. Management styles that are too authoritarian tend to promote high levels of absenteeism among employees also increase turnover, job burnout, and employee health problems such as backaches and headaches. Employees may also reduce turnover and absences when they begin to feel that working conditions are satisfactory and that they are becoming more successful in their jobs.The absenteeism rate at GREAVES COTTEN is 8 % and increases by 3 % reaching to 11 % during the summer holidays.

Improved Morale And Motivation

The secret of creating a motivating employee review lies in the relationship between accuracy and money. The right combination provides with a highly motivated employee. Maintaining good Employee Relations creates an environment of trust and increases morale. This improves the motivation of the employee. A motivated employee is contagious and is beneficial for the growth of the company.

Harmony in The Organization

Increase in the level of job satisfaction has a direct relation with the smooth workflow. There will be lesser arguments and more discussions. Employees will be ready to share information and help each other out. A good relation with the employee also inculcates discipline. Thus harmony is maintained.

Attract Good Talent

Attracting the most qualified employees and matching them to the jobs for which they are best suited is important for the success of any organization. A good company with good Employee Relations will be talked about. There is a brand image created in the mind of the employees which attracts them to the company like a drop of honey.

Lesser attrition - reduced cost on training, less cost of retention

A reduced attrition rate will reduce the cost of training and induction. No new employees will need to start afresh. The company can save on getting to know new employees. Kishore Pumps spends around Rs.5 Lakhs on training every year with the attrition rate being less than 2 %. At Kinetic Engineering, it seems the employees are not interested in leaving at all. The attrition rate is a minimal at 2-3% for staff, and between 1-2% for its workers.

Responsible For Increase In Productivity

As the saying goes, a happy worker is a productive worker. Thus a satisfied worker will take lesser breaks, spend lesser time in the canteen gossiping and more time working for the company. There will be Greater commitment which means quality output. There will be loyalty and less wastage of company resources. The employee will seek for opportunities for intensifying the business and look out for new chances of expanding the company. They identify themselves with the work and this leads to an improved performance. Finally, the act of participation in itself establishes better communication, as people mutually discuss work problems.

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Open To Organizational Changes

The workers self-esteem, job satisfaction, and cooperative with the management is improved. The results often are reduced conflict and stress, more commitment to goals, and better acceptance of a change.

Shared Learning And Continues Improvement

A satisfied employee will look for ways of continuous improvement. They will participate in programs such as kaizen and try for the better of the company. Employees in a good employee relation management will share their new learnings and wisdom with his colleagues.

New England Hotel Magazine Acritical and close evaluation of a hotels employee handbook and policiesas painful as that might soundmay reveal whether or not you are actually putting your best foot forward. Many human resource vice presidents and managers view handbooks and policies as a drab, technical and mundane necessity of their job. But in reality, they are an overlooked and critical component in developing positive employee relations. Obviously, handbooks and policies give an employer the opportunity to enforce certain rules, regulations and laws that are required, but they also provide an opportunity to let employees know how valuable they are to the success of a hotel property. One area of confusion that often arises with human resources professionals is whether or not an employee handbook should be an all-encompassing employment manual. In other words, should the employee handbook contain all of the policies that are required by law, and those that are added by the employer? The simple answer is no. The employee handbook is really the cornerstone from which an employer may build upon to establish other policies that are particular to that hospitality business. And those other policies

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can exist outside of the employee handbook. In fact, because they may be readily obtainable, quickly reviewed and occasionally amended as business demands require, it can be advantageous to keep them separated. The easiest way to do this is to reference the named policies in the employee manual, and suggest that the employee review the separate policies on a regular basis. The policies can be kept in a separate three-ring notebook next to the employee manual, although both manuals should be kept in a conspicuous place accessible by all employees. Every employee should receive a complete employee handbook and a complete set of policies along with an acknowledgement form that they received them, read them and understand them. A copy of that acknowledgement form should always be placed in the employees personnel file. As the policies are updated and amended, a redistribution of those policies should be made with another acknowledgement form. Specific Language Oftentimes, depending on the size of the hotel, the employer may wish to have two separate employee handbooks one for non-supervisory personnel, and another for supervisors. Generally speaking, some of the important topics that should be includ-

The Cornerstone of Employee Relations A guide to effective handbooks and policies By Brian L. Champion New England Hotel MAGAZINE A Publication For Hospitality Executives July/August 2007 employee relations 8/15/07 10:12 PM Page 1 New England Hotel Magazine ed in a non-supervisory employee handbook are: A description of the employment-atwill relationship; A statement that this handbook replaces all previous versions; An affirmative statement that the hotel is an equal employment opportunity employer. It should set forth the companys commitment to equal employment opportunities, including affirmative action if applicable, and that the company has a zero tolerance for discrimination and harassment of any kind; A description of work schedules, breaks, meal periods, what constitutes a work week, how overtime pay will be calculated, etc. It is always a good idea to state that any overtime must be approved in advance; A benefits section highlighting:
vacation and holiday policies, sick

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leave, leaves of absence, insurance coverage, pension plans, and other benefits that are available to employees, such as food or lodging discounts; A section regarding work safety and rules of conduct that clearly set forth the expectations of behavior in the workplace. If it is desirable for supervisors to have a separate handbook, topics should include: A description of employee evaluation and reporting procedures, because managers often need to be reminded, in a positive fashion, of the importance of timely and accurate employee evaluations; A section regarding wage and hour issues, because it must be made very clear that supervisors are not authorized to allow employees to work off-the-clock in violation of wage and hour laws. There have been many newsworthy cases of late, resulting in millions of dollars of damages, because supervisors allowed employees to work off-the-clock; Advice regarding the importance of corrective discipline and the recording of those events by the supervisor. Supervisors must be well versed in handling complaints, not only those emanating from employees, but also those coming from guests and customers.

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And they must have clear guidance on how to properly investigate those claims so that they are efficiently and effectively resolved; A description of the hiring and firing process, because there should be clear direction in the supervisors manual as to the dos and donts for both the hiring and firing of employees. While there is no legal requirement for an employer to actually have a handbook, there are legal requirements regarding the posting of policies that are a matter of law. Some of those policies with which you may be familiar include: the Occupational Safety and Health Act; Title VII of the Civil Rights Act; various discrimination laws, such as the Age and Discrimination in Employment Act; the Fair Labor Standards Act; and the Uniform Services Employment and Reemployment Act. Effectively written employee handbooks and policies not only provide the employee with positive reinforcement by describing their benefits, they also provide the employer with protection against governmental agency audits. They can be used to demonstrate that the employer is in compliance with all necessary laws, rules and regulations. Furthermore, if the unfortunate situation arises whereby an employee or former employee initiates litigation against

the company, the employee handbook and written policies can be used to defend the company. In developing an employee handbook, there are many elements that should be included, but there is also a necessary omission, specifically the appearance of creating an enforceable employment contract. There must be effective disclaimers in critical areas of the handbook, as well as on the initial application. The disclaimers must clearly state that the offer of employment does not create a binding employment contract with the employee. These disclaimers must be set forth in effective, clear language, and include a direct statement that an employee is, and will remain, an employee-at-will. Implementing, or the rollout, of an employee handbook or newly developed policies should be a top-down managerial process. By having upper management support the positive aspects in the manual and policies, employees will view any change as a positive experience, rather than a negative one. And the manual and policies should be distributed in advance of their effective dates. By doing so, you will convey a sense of professionalism and courtesy. Employees should also have advance notice to review the materials, write comments and ask questions regarding the materials before they feel

that they are being held to the underlying precepts of the policies. There are many technical aspects of employee manuals and policies that must be correctly prepared, and are best done so in conjunction with your employment counsel. _ Brian L. Champion is a partner at the law firm of Verrill Dana LLP in Portland, Maine and Boston, where his practice focuses on labor and employment law, and civil litigation. His experience extends to include matters relating specifically to the hospitality and tourism industry, including wage and hour class-action cases. Contact the firm at: www.verrilldana.com. The rollout should be a top down managerial process. employee relations 8/15/07 10:12 PM Page 2

Comparative Study

Parameters/co Kishore Pumps mpany ORGANISATIO Flat N STRUCTURE NO. OF WORKERS 289 workers 69 staff 47 managers

Greaves Cotton

Kinetic Engineering Flat

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Flat

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742 workers 30 staff 150 managers

589 Workers 42 Staff 52 Managers

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INDUCTION

7 days & compulsory for all

y Systematic and annual. y For mangers, staff & workers. y Technical and behavioural y Internal and external

15 days only for managers and staff.

y

14 days & compulsory for all

 Done as need occurs.  Managers only  Behavioural  Cross department trg.  Internal and external.

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TRAINING

Annual

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y Managers and workers y Technical for workers, behavioural for managers y External for managers and internal for workers.

BENEFITS

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Canteen

Yes, with subsidized food. Selected employees, also monsoon & winter wear For Security

Yes, with subsidized food. Selected employees, also monsoon & winter wear

Yes, with subsidized food.

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Uniform

For Workers.

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Housing

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For engineers

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guards at subsidized rates Other Holiday hone scheme and Marriage gift scheme. MONETARY BENEFITS Retirement services and benefits Credit society. MEDICAL FACILITIES
y 2 in house doctors and 1 nurse. y Medical check-ups once in 3 yrs. y Reimburseme nt

and Technicians in the compound.

For selected employees like Front office manager.

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Production incentive and festival allowance. ECS employee credit society

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Transport for employees and Workers Credit group in Harmony group.

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 3 in-house doctors and 3 nurses.

 1 in-house doctor.

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 Medical reimbursement s and are planning for  Reimbursemen insurance. t.  Medical checkups every 6 months.

of medical expenses SAFETY

y Ambulance room. y 50 first aid trainers. And
 Regular training  Guard for all  Regular training.  Smoke
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regular training
y ERP & safety squad. y First aid box in all departments. y Safety day and drills.

machines.
 First aid box in prime locations  Safety day and drills

detectors
 First aid box & fire extinguishers in all departments.

CAREER GROWTH AND DEVELOPMEN T STRESS MANAGEMEN T Leaves

 Job bands.  Job rotation and job enrichment.

Job enrichment

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21 AL + 14 CL + 21 SL Interdepartme nt matches 2-3 times a year Annual picnics.

16 AL + 7 CL + 10 SL Interdepartme nt matches 4-5 times a year Annual picnics.

30 in all Interdepartme nt matches monthly Annual picnics

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Sports

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Picnics

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Others

Departme nt parties

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Stress managem ent Training. COLLECTIVE BARGAINING Trade union Strikes Kaamgaar utkarsh sabha No.

Regular tourname nts on the playground.

every 6 -7 months.

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Kaamgaar utkarsh sabha No Suggestio n box at prime locations

No.

No. Quarterly Town hall meetings and Suggestion box.

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Suggestions

Suggestio n Box

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FEEDBACK

Employee Satisfaction Survey.

None

HR balanced scorecard and satisfaction survey.

PERFORMANC Online for E managers and informal for

For management For and staff management

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APPRAISAL ANNUAL EVENTS Picnics Puja

staff Annual picnics Annual dassrra puja House magazine called Samvaad.
 Annual prize distribution  Note book distribution  Counseling  quarterly competitions

(90degree) Annual picnics

and staff Annual picnics and department picnics. House magazine

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WELFARE

 birthday celebrations  crche  jagruti group.

 HARMONY  Other offers with Airtel.

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THE IMPACT OF MANAGER-EMPLOYEE RELATIONSHIP ON IMPROVING PERFORMANCES IN HOTEL INDUSTRY The specific Hotel activity, its complexity given by the variety of its components, is important for recruiting and selecting the necessary personnel, its structure, and training in order to maximize the efficiency of work force. Employees motivation refers to a right correlation between their personal needs and the objectives of the organization. The role of the manager is to identify and decide to what extent the organizational objectives are similar to employees personal needs. The motivatingcoaching function covers up the set of work processes that determine the staff of a company to set up and achieve the planned organizational objectives. There is no standard pattern of motivating the staff, employees motivation is based both on personal and external factors. Key words: human resource management, motivation, reward, satisfaction, manager-employee relationship 1. Human Resource Management 1.1 Hotel industries Human Resource Management Human resource management is the entire set of activities focused on providing, developing, motivating

and retaining the human resources within the organization so that the main objectives should be reached efficiently and the employees needs satisfied. The extent and quality of tourism activity is mainly determined by the number of employees and the level of their qualification, the correlation between their professional training and the position hold, their professionalism and promptness in reaching the objectives. Thus, tourism evolution is directly related to the human resources structure and dynamic, underlining the great importance of human capital. The specific tourism activity, its complexity given by the variety of its components, is important for recruiting and selecting the necessary personnel, its structure, and training in order to maximize the efficiency of work force. 1.2 The specific features of tourism labour The relationship between tourism and human capital is a complex one, of inter-conditioning, each of the two elements having the cause-effect role. Tourism is covered up by numerous and various activities and the work in this domain is characterized by a series of features mainly reflected by the need of work force

and the results of utilizing it. Among the most important features we can mention a great consumption of workforce, superior moral and material liability, direct customer-employee relationship, seasonal period, using the work pattern partially. The specific features of working in tourism influence the number and the qualification of employees, the structure of human resource, work productivity level, mutual motivation, recruitment and selection policies, as well as professional training. 54

2. Labour satisfaction, motivation and reward 2.1. Satisfaction According to its definition, satisfaction is a subjective state as a result of needs fulfillment, lack of tension and anxiety. Depending on the purpose, an action should be finalized with a moral or material satisfaction. If the efficiency of individual involvement in team activity is low, with no satisfaction, then, one can speak about a state of dissatisfaction, a state of mind that can cover the whole group, the organization, leading to frustration.

The main factors influencing work satisfaction are: pride, career advancement, professional challenge, organization prestige, work benefits, job security, etc. 2.2 Motivation Motivation is defined as a sum of internal and external energies that initiate, conduct and maintain an effort targeted to organization objectives, fulfilling also the personal needs. The effort made by the employee will contribute to a greater extent to the outcome expected by the organization, as long as the personal goals are similar to those of the organizational ones. For an individual to be motivated at the workplace, he must be sure that performing a certain job will help him fulfill his own needs. Employees motivation refers to a right correlation between their personal needs and the objectives of the organization. The role of the manager is to identify and decide to what extent the organizational objectives are similar to employees personal needs. Motivation is one of the managers most important responsibilities; they must find the best way of

motivating their employees to get the best performances at their workplace. Reward Staff motivation is the basic method to involve the employees in achieving organizational objectives and it refers to the correlation between fulfilling employees needs and interests and the tasks they perform. Rewards consist of those formal and informal, economic or moral -spiritual elements that are granted to employees fulfilling certain individual or collective needs in order to motivate them to bring their entire contribution and achieve the companys objectives. There is no standard pattern of motivating the staff, employees motivation is based both on personal and external factors. The motivatingcoaching function covers up the set of work processes that determine the staff of a company to set up and achieve the planned organizational objectives. 3. A comparative survey concerning staff motivation This survey was carried out in two three-star hotels in Durgapur: Hotel no. 1 and no.2 Hotel. A

questionnaire has been distributed to the employees in order to collect the necessary data. An important segment of employees of both hotels was subject to this research. 3.1 The importance of this case study This case study is useful to all managers working in hotel industry. It is very important for them to be aware of the impact manager-employee relationship is having on customer satisfaction. The case study comprises not only the findings obtained by data analysis, but also recommendations that may help the hotel managers to design new strategies in order to improve their business performances. 3.2 A presentation of two analyzed hotels. No.1 Hotel: It is situated in a peaceful, less centered area of the town, it has a restaurant, a bar, 10 single rooms, double rooms, and apartments equipped with TV sets, airconditioning, mini-bar and telephone. The customers can enjoy the following services: parking, card payment, gym, sauna, barbershop, and internet access.

There are ten employees working in the hotel, a segment of 100% of the employees has been questioned. Hotel no. 2: It is situated in the very cultural and historical centre of Timisoara; the atmosphere is very elegant and comfortable. The hotel has 150 single, double rooms and apartments, differently decorated with an excellent view over the town during the day and night. To meet the demands of its customers the hotel has a restaurant, a bar and a conference room where conferences, cocktails, banquettes, parties or festive dinners may be organized. This hotel has an excellent reputation for the services provided such as: parking, washing-cleaning services, gym, sauna, massage, hairdressing saloon, internet access, secretarial services. They also provide additional services such as: transport from the airport to the hotel and sight seeing. This hotel has 160 employees; an important segment of 60% has been questioned. 3.3 The analysis of the questionnaires distributed to the employees of No.1 Hotel and No.2 Hotel a) A description of the targeted segment

By analyzing the employees distribution according to their age one can notice the following: Hotel no. 1 has employees of 31-40years old (70%), whereas the age of the employees working for No.2 Hotel is between 20-30 years old (52%). Hotel no. 2 has also employed people between 41-50years old (11%) and people over 50 years old (4%). By analyzing the employees distribution according to their gender one can notice that both hotels have a predominant number of women, but in a different percentage: 86% No.1 Hotel, 52% No.2 Hotel. By analyzing the employees distribution according to their education one can notice the following: a 57% of the employees working for Hotel no. 1 have been employed for a period of time between 3-5 years, 29% have 1-2 years of work experience. This might be explained by the fact that it is a new hotel in contrast with Hotel no. 2 where the most employees have between 5-10 years of service(30%), followed closely by those with 3-5 years of work experience (29%). One can also notice the presence of employees a work experience of over 11years (11%). b) The inner mo

With regard to their professional development the employees of both places are not satisfied, most of them stagnating. They are not very optimistic about their professional advancement within the company, because the company ladder has only few levels and career advancement is a slow process.

c) Employer-employee relationship One can notice that at both hotels the employees have a positive reaction towards management: No.1 Hotel (57%) and No.2 Hotel (52%), with a small exception of 4% of the sec ond hotels employees, who have a different opinion.

With reference to managers flexibility and new ideas one can notice that most of the employees agree with

this statement; No.1 Hotel (42%) and No.2 Hotel (59%). The performance appraisal questions has underlined the following: the employees of the no.1 Hotel stated the staff appraisal in their hotel is a honest and objective process(57%), but there is a percentage of 29%

employees who are not quite sure about this and 14% who have doubts concerning the managers

56

objectivity. The employees of no.2 Hotel appreciated the managers objectivity and honesty (42%), 50%

are not sure and 4% think the manager is not objective. One can easily notice that the management the first hotel is much more flexible in the process of decision making 57% of the employees can make their own decisions compared to a 26% of the second hotel.

d) Remuneration and reward In both cases employees think that they should get more money for their work: 57% no. 1 Hotel and 93% no.2 Hotel. Only 7% from the second hotel think they are paid according to their work, and 42% from the first hotel think they are paid according to their work. No ne of the employees think they are well-paid. e) Work conditions

Regarding the salary one can notice that at the first hotel 43% of the employees have answered that the salary was not the reason that made them get that job, 43% stated that the salary was the main the reason for their employment, and 14% said the salary motivated them to get the job to a less extent. At the second hotel we have the following situation: 52% of the employees have answered that the salary was not the reason that made them accept that job, 4% said that the salary was important, but not to a great extent, and 44%answered the salary was an insignificant reason. With reference to work experience issue, one can notice that it is the main motivation for employment at both hotels. At no.1 Hotel 43% of the employees have answered that they have got the job for the career opportunity offered, also 43% think their career is not so important, 14% did not take this issue into consideration. At no.2 Hotel most of the employees got the job for career advancement, 19% think their career is not so important and only 7% did not take this issue into consideration. Regarding the issue of working conditions and environment we have the following data: at no.1 Hotel most

of the employees are satisfied with their working conditions (57%), 29%of them are not so satisfied with it and 14% of them are not satisfied at all. At no.2 Hotel most of the employees are not satisfied with their working conditions and environment (56%), but there are a percentage of 26% employees who are very satisfied with their working conditions. There is an obvious difference between the two hotels: no. 1 hotel has managed to attract a large staff to work for them 72%, even if they used to work for other organizations, whereas most of the people of the second hotel were unemployed when they applied for this job (74%). f) The analysis of open questions By analyzing the answers of the open questions, one can notice the main reasons of employees dissatisfaction and the suggestions they make. The answers provided for this open question: What would you do if you were the manager of your hotel? (Chart no.1)

1. I would promote employees according to their performance

2. I would offer financial rewards to hard working employees 3. I would provide trainings 4. I would encourage competition among employees 5. I would implement a modern management, a more effective one 6. I would grant employees moral and material incentives 57 Hotel 1 4; 30% 2; 15% 1; 8% 1; 8% 1; 8% promote employees according to their performance financial provide encourage competition among implement a modern grant employees moral and material Hotel 2 12; 37% 11; 33%

5; 15% 1; 2; 2; promote employees according to their financial provide trainings encourage competition among implement a modern grant employees moral and material

Chart 1.Staff motivation within the hotels What do you need to become a motivate worker? What makes you an unmotivated worker? (Chart no.2) Answers: 1. Low salary 2. Reduced opportunities for career advancement 3. No professional training 4. Companys lack of development/opportunities What makes you an unmotivated worker? Hotel 1 5; 36% 4; 3;

21% 2; 14% Low Reduced opportunities for career No professional Companys lack of What makes you an unmotivated worker? Hotel 2 20; 41% 10; 21% 10; 21% 8; 17% Low Reduced opportunities for career No professional Companys lack of Chart 2. Analysis of employees dissatisfaction 4. Conclusions and Suggestions Conclusions: the findings of research have underlined the fact that most employees are not satisfied with their salaries and their professional training. Their personal initiatives are not taken into consideration because there is no efficient system of collecting and using data.

Mainly, the managers used to focus on getting a rapid profit, but currently more and more managers have realized the importance of having well-prepared, well-trained employees within the company. Thus, they must focus on motivating their staff to increase their productivity level and job satisfaction. To improve the system of management and the services provided to prospective clients, we underline the following suggestions:

Professional development To increase employees satisfaction towards their professional development, the organizations should focus on the following areas: To elaborate and implement a system of drawing up and revise the job description To outline the role of each employee within the company To design training programs according to each professional group

To set objectives within a certain period of time (3 months-1 year) and to monitor the progress constantly(involving the employees in this process) To delegate responsibilities To increase the number of jobs To involve the employees in the decision-making process 58

Performance appraisal Performance appraisal system may take various forms within organizations: To develop a system of competition among all levels To appraise employees good results in public providing concrete examples To be granted individual rewards (financial rewards) periodically Liability Regarding employees work liability, one can state that only few organizations grant their employees

freedom to express their own ideas and opinions. Thus, few organizations take fully advantage of their employees potential. Thus, it is recommended for them to: Delegate responsibility Develop training for managers concerning the process of delegating responsibilities Design and implement systems of collecting employees suggestions and recommendations so that all of them should be involved in the process of improving their work. Advancement Among all analyzed parameters, this one has registered the lowest figures compared to the ideal level. Thus, it is recommended for them to: Draw up job description, to have a clear job specification so that each employee should know exactly their responsibilities Design and implement a career planning policy To increase the employees liability progressively so that they should be prepared to climb the company ladder Working environment

This is an area where the most spectacular progresses are made within Romanian companies. It seems like Romanian managers are willing to create a pleasant and efficient work environment in spite of low budgets. More and more companies implement quality systems to be successful and when they are seconded by a performing human resource management, one can speak about successful companies. Payment By analyzing the questionnaire one can easily notice that more than half of interviewed people were not satisfied with their payment, and their suggestions and recommendations were focused on this topic. The employees are also dissatisfied with the level of their salaries in comparison with the other peers salaries or the salaries on labour market. This internal or external inequality may appear because most of the employees are not aware of the payment system criteria. To improve the level of salaries, managers should take into consideration the following: Developing and implementing evaluation policies and strategies

 Investigating the level of salaries on the market It not only the salary that is taken into consideration, but also the fringe benefits such as: medical insurance, life insurance, company car, discounts or free products, subscriptions to gyms, a day off, nursery school for employees children, rewards granted for good suggestions, or meeting the deadlines, surprises, gifts on somebodys birthday, trainings, and seminars etc. thus, it is important for managers to: Develop payment policies and strategies Develop and implement appraisal performance policies Develop payment systems base on achieved performances 5

Worldwide Employee Relations

1 UK

The British were once notorious for industrial disputes and walkouts. In fact, they were daily occurrences in the 1960s and 1970s, such that industrial relations were perceived as a 'problem' which brought down governments. Weak management and intransigent unions produced industrial chaos, manifested by low productivity, hostility towards change and highly publicized disputes, fundamentally weakening the UK as an economic power. The reputation of British personnel managers was not enhanced during this period. When HRM came on the scene in the 1980s, personnel management had become bogged down in a form of industrial relations characterized by 'firefighting' - undermining any claim to being strategic or proactive (Hendry, 1995:12). The situation changed dramatically during the 1980s and 1990s. Recessions, New Right politics, restrictive legislation on industrial action and massive restructuring in many organizations considerably reduced the power and role of unions. The Employment Relations Act (1999) revised trade union recognition and a number of other rights. Since the signing of the Treaty of Rome in 1958 there have been several attempts to develop community-wide initiatives on employee participation and corporate industrial relations. Progress in harmonizing this area has been slow but there has been a considerable convergence of employment conditions. The Government embarked on a 12 -week consultation on long hours working and the operation of the individual opt out in the UK. The Government believes that the statutory recognition procedure should be a fall back, only turned to when voluntary efforts have been tried, but have failed to reach agreement. It therefore does not consider the issues covered for collective bargaining under the statutory procedure should exceed those typically covered by voluntary collective bargaining recognitions. For this reason, the statutory procedure does not currently cover training and pensions. The 1998 Workplace Employment Relations Survey (WERS) showed that whereas 36% of employee representatives said they were consulted over training, only 7% said they negotiated over it. UK has a statutory law for every aspect of Employee Relations. One thing that USA lacks is security of the job. The pink slip system which is very prevalent is a cause of concern for the employee. Employees have the right to join or not join a trade union of their choice. Their employer may not dismiss them, select them for redundancy or make them suffer detriment for being or proposing to become a union member, nor for taking part in the union's activities at an

appropriate time. They are similarly protected if they choose not to belong to a union or refuse to join one. Dismissals which infringe these rights may be taken to an employment tribunal regardless of the employee's length of service. Employees who claim to have been unfairly dismissed in this way (except those complaining of unfair selection for redundancy) can also apply to the tribunal for an order of interim relief (which requires the employer to continue their contract of employment or to re-employ them pending the final outcome of the case). An employee may not be dismissed, selected for redundancy (when others in similar circumstances are not selected) or subjected to any detrimental action for taking certain types of action on health and safety grounds. These rights apply to all employees, regardless of their length of service Workers are entitled to be accompanied at certain disciplinary and grievance hearings by a fellow worker or a trade union official of their choice, provided they make a reasonable request to be accompanied. They also have the right to a reasonable postponement of the hearing, within specified limits, if their chosen companion is unavailable at the time the employer proposes. Workers have the right to take paid time off during working hours to accompany fellow workers employed by the same employer. These rights apply to workers including agency workers and home workers, though not to those who are in business solely on their own account. Complaints to an employment tribunal must normally be made within 3 months of the date of the infringement of the right. Exceptions to this general rule are detailed in the documents about the particular individual rights.

JAPAN

Japanese Employee Relations methods have relevance in two contexts: Japan itself and transplant factories in the Pacific area, North America and Europe. Nissan, for example, has been particularly active in overseas expansion and - in common with many other Japanese corporations - has a specific attitude towards trade unions. Effectively, independent unions and multiple union representations are resisted in favour of 'staff association' and tame single -union representation More intensive efforts are being made to unify and realign industrial labor unions at Japan. The nation's labor union organizations are three-layered - consisting of the independent unions at the lowest level (enterprise unions are the mainstream), industry-level organizations and national centers. The enterprise union remains the basic unit for organization. There are more than 100 industry-level labor organizations, five have over 500,000 members. Many of these organizations do not satisfactorily function as industry-level bodies. They are unable to

adequately survey their members, to formulate industrial policy or to unionize the labor force. Many are understaffed and inadequately financed. Following the end of World War II there was a long period when four national centers competed. They were particularly divided ideologically and in terms of their support for political parties. One result was the creation of competing organizations within the same industry. However, with the formation of Rengo (Japanese Trade Union Confederation) in 1989, a move was made to unify and to realign union organizations at the industry level under the umbrella of one national center. In 1993, the Japan Institute of Labour (JIL) began a research project on industrial relations and decisions on working conditions at companies without labor unions (Head: Prof. Tsuyoshi Tsuru of Hitotsubashi University). According to the report, More than 60 percent of companies without unions have an inhouse employee organization, of which 80 percent have a "fraternity-type" organization, and fewer than 20 percent have an organization in which "employees have a say." The organization in which "employees have a say" means those who replied that they have "labor talks with management on revision of wages and matters pertaining to such working conditions as working hours, holidays and vacation and welfare provisions" or "labor discusses production plans and management policy." As for an individual voicing body, a high of 47 percent of companies without unions adopt a self-appraisal system, followed by the proposal system (34.2%) and a round table discussion by those responsible for personnel management (26.1%). Even among companies without unions, 42.2 percent stress employees' participation in decisions on working conditions, and 44.7 percent stress their participation in formulation of strategies, thus showing an emphasis on employees' overall participation in both areas. This, it seems, is the background for introducing a variety of in-house organizations where employees can have a say, the report analyzes. The Japanese employment system has often been referred to as a "lifetime employment" system. Firms compete with each other every spring to recruit the best of the new university and high school graduates as regular employees normally determined as much by the prestige attached to their university or school as by academic record. Regular employees enter the firm with the expectation that they will be kept on until they reach the mandatory retirement age of 60. The traditional Japanese wage system was based on seniority. However, in recent years, Japanese companies increasingly have shifted towards a wage system that is linked to performance because of increasing global competition and need to further motivate their workers. Participation in the Worker's Compensation Insurance System is mandatory for all firms in industry and commerce. All medical expenses are paid for injured workers. Japan has a

universal health insurance system, under which all citizens can receive medical attention if they become ill or injured. Businesses with at least five workers must provide their employees and their families with government-managed health insurance or comprehensive insurance obtained from a health insurance association. As of March 1999, 37.6 million workers participated in government-managed plans, while 32.6 million had comprehensive insurance. Collective bargaining is practiced widely in Japan. In the private sector, most aspects of labor management relations are determined through collective bargaining. However, issues affecting management and production, such as new plant and equipment and subcontracting usually are resolved through regular consultations between the unions and management. Government workers have limited collective bargaining rights. The Government determines the pay of public sector employees based on a recommendation by the independent National Personnel Authority (NPA). The NPA recommendation is based on wage surveys. Standards are set by the MHLW and issued after consultation with the Standing Committee on Safety and Health of the Central Labor Standards Council. Japan has a total of 343 Labor Standards Inspection Offices, whose staff carry out safety inspections and accident investigations and provide judicial punishment for serious violations of the law. As for recreation is concerned, Overtime accounted for 9.8 working hours per month in the year 2000. In addition, Japanese workers utilized roughly half of the paid holidays and vacation days to which they were entitled. The Government of Japan has set a goal to shorten the number of working hours to 1,800 per annum by 2009. To attain its target, the Government is attempting to make Japanese businesses adhere to the 40-hour workweek, is encouraging workers to use their vacation days, and is trying to reduce the number of overtime hours.

USA

Labour unions date back to the late 18th century in the USA, although it was not until the late 19th century that the 'modern' labour movement was born. Unions were organised primarily at the level of the workplace, and it was at this level or the employer level that their main activities took place, with unions seeking to 'take wages out of competition' and hence maximize membership gains by co-coordinating settlements across workplaces and employers. Despite these relatively conservative goals, unions were initially able to gain employer recognition and engage in meaningful collective bargaining only where their members had skill levels sufficient to effectively shut-down an employer without fear of being replaced. The abundant supply of qualified college graduates and experienced workers should create keen competition for jobs. Overall employment of human resources, training, and labor relations managers and specialists is expected to grow faster than the average for all occupations

through 2012. In addition to openings due to growth, many job openings will arise from the need to replace workers who transfer to other occupations or leave the labor force. Legislation and court rulings setting standards in various areasoccupational safety and health, equal employment opportunity, wages, health, pensions, and family leave, among otherswill increase demand for human resources, training, and l abor relations experts. Rising healthcare costs should continue to spur demand for specialists to develop creative compensation and benefits packages that firms can offer prospective employees. Employment of labor relations staff, including arbitrators and mediators, should grow as firms become more involved in labor relations, and attempt to resolve potentially costly labor-management disputes out of court. Additional job growth may stem from increasing demand for specialists in international human resources management and human resources information systems.

Personal Observation
Sponsorships of MBAs or engineering programmes are successful retention tools. There are a couple of popular models. Managers can take short on-campus courses. Some companies pay for courses with the rider that managers return to the company once the course is over. For instance, Coke has started an internal cadre-building programme that promotes the executive (graduates and technical trainees) cadre to the management cadre through a two-month course in XLRI. It has also started the Pegasus programme where high-fliers interact with the CEO at an off-site location. Cadbury and HLL have also ramped up the process of identifying HIPOs in their respective companies. IT companies are re-training managers in new software, which is working as an important retention tool. Prominent banks, IT companies, BPOs and FMCG companies in Bangalore, Mumbai and Delhi share the angst of their employees in a different way. They are on the donors lists of many prestigious schools, which reserve some seats for them. Since donations are unaffordable for most employees, this becomes a huge add-on for them. A few MNCs also provide children scholarships to some prestigious foreign universities. Some companies are even altering work schedules. Pepsi has told its employees in the north to pack up at 6.30 every Wednesday. According to Sanjay Luthra, director of Mumbaibased BPO 3 Global Services, We also try and build a very creative work environment with a multi-cuisine canteen, which is converted into a discotheque once a week. It has an array of recreational facilities including a video game parlour, and library.

Gaurav Lahiri, head of Indian operations in HR consultancy Hay Group, says, The key to talent management is to identify top executives and treat them differently. Cross functional training is a must for such employees. Plus, the strategy is to create such a dominant work culture that employees find it difficult to adjust in some other organisation. ICICI is one such company which follows this strategy.

When Kumar Mangalam is concerned, any Birla story is about people. He just cant take his mind off people issues; this is one CEO who looks at himself and his group through peoplefocused glasses, there are a select few CEOs who act as enablers in the business, by identifying the leaders in individual businesses and set goals, giving freedom through explicit decision

making rights and a set of values and principles based on which decisions are to be made. Explains Maira (HR - Executive), Its about moving from being tacit to being explicit My objective has been to build a meritocracy and there are lots of nuances about it, says Birla and adds,You are not talking about an object, an organisation is about people who make it and it would continue to be my focus in days to come. Getting the right people on board was a priority, and Birla was willing to do everything to grab them. Internally it raised eyebrows, not because scores of senior managers working for the group for decades had been asked to put in their papers, but because a company which had never invested much on HR was suddenly spending Rs 16-17 crore on management development programmes which would later be called Gyanodaya. For Birla, people issues continue to attract maximum attention. One of the most important functions he has cornered for himself is a regular performance appraisal for people who directly report to him. Senior employees confide that its something he spends hours on. Being the employer of choice is an objective thats dear to his heart, but Birla feels that theres still way to go on this front. On his short list of immediate priorities, the one that is most prominent is, We need to spend much more time grooming our brightest stars.

It seems simple. However, balancing employee expectations with those of the company is easier said than done. Employee Relations in my view is an ongoing activity. It starts from the day the employee is recruited, with the training, induction process, and goals and norms that are expected out of the employee. Explaining the vision and core values of the company so that the goals for the future are set straight. In the site greatplacetowork.com, there seems to be one common factor in all 100 companies which got them to this reputation. The universal cause was that all of them cherished and nurtured their human resource. Wegmans Food Markets (#1 on 2005 "100 Best" list, Supermarket Chain) Robert Wegman, says "No matter how much we invest in our employees, they give us more in return."

As per Hertzberg theory of motivation, the first three needs are already met by our parents and guardians. The monetary needs, social needs of communication, and are physiological needs are fulfilled by our parents, society or friends. The fourth need to be recognized and rewarded, this is where the employer comes in. The desire to be renowned by the employer is the prime motivating factor. Motivation then initiates a cycle of development for the employee. The employer achieves this by engaging the employee decision making and other activities.

Conclusion
Each company that I interviewed was from Same sector but had different modus operandi. In manufacturing sector a very important tool of Employee Relations is communication. It plays a crucial role in Employee Relations. It is important to motivate the employee and make him aware of the policies.

Employee Relations is necessary in an organisation as salt to food. As one cant imagine eating food without salt, a company cannot run without maintaining Employee Relations.

I noticed that internal recruitment plays a very important role in employee relations. Internal recruitment is when the company recruits someone from within the organisation to fill the vacancies, as opposed to external recruiting i.e. recruiting from the open market. Internal recruitment helps with the industrial relations since external recruitment can be seen as depriving the workforce of opportunity.

Greaves Cotton has mixed recruitment. It follows internal as well as external. It has a Database of People who want to seek employment. It is prepared on the basis of resumes left by jobseekers. Kinetic engineering is strong follower of Natural succession. It strongly believes in internal recruitment. If the company is looking at improving Employee Relations, then internal resources should be the first considerations when planning for recruitment.

This is a very effective means as many qualified people can be reached at a very low cost to the company. The other advantages are that the employees would bring only those referrals that they feel would be able to fit in the organization based on their own experience. The organization can be assured of the reliability and the character of the referrals. In this way, the organization can also fulfill social obligations and create goodwill.