Preview

Remuneration and Working Conditions in the Tourism and Hospitality Industries

Best Essays
Open Document
Open Document
4024 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Remuneration and Working Conditions in the Tourism and Hospitality Industries
Remuneration and Working Conditions in the Tourism and Hospitality Industries

Introduction
Tourism and hospitality organisations need many different things for them to function, the most important of these things being their employees. However to ensure that they can keep and retain their employees there are many things that an organisation needs to employ; this includes the concepts of remuneration and working conditions. It is for this reason that this essay will examine the concept of remuneration and the different forms it can take. Leading on from this it will examine the different factors that can influence the remuneration that one receives in the employee-employer relationship; and why remuneration is so important. Upon establishing this, this essay will turn its focus onto working conditions and what can influence it, along with this it will establish why good working conditions are so important in the tourism and hospitality industry. The second half of this essay will look at some of these concepts in relation to the airline industry. It will examine the factors which influence remuneration in this sector along with the different forms of remuneration that is present within airlines. Furthermore this essay will look at the working conditions within the airline industry; by doing so it will emphasise why there is such a need for good working conditions within the hospitality and tourism industries.

Remuneration

The concept of remuneration refers to “all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship” Milkovich and Newman (2005). In other words remuneration is both the monetary benefits that one receives as part of an employment agreement, together with the tangible products employees can be offered. By looking at this definition one can see that the concept of remuneration is extremely important to a company and its employees, this is due to many factors. Firstly, good



References: Airline Business (2007). US Unions Raise Fatigue Flag. Airline Business. Vol. 23, Issue 8, pg 10. Alamdari, F.(1998). Trands in Airline Labour Productivity and Cost in Europe. Journal of Air Transportation World Wide. Vol 3, No. 1, pg 71-88. Boyd, C. (2001). HRM in the Airline Industry: Strategies and Outcomes. Personal Review Vol 30, Issue 4, pg. 438. Boyd, C., & Bain, P. (1997). Once I Get You Up There, Where the Air is Rrified: Health, Safety and the Working Conditions of Airline Cabin Crew. Blackwell Publishers Ltd, Oxford. Gamble,J.E., Culpeppe, R. & Blubaugh, M.G. (2002). ESOPs and Employee Attitudes: The Importance of Empowerment and Financial Value. Personal Revie. Vol 31, No. 1, pp. 9-26 Harrison, R Leap and Crino,(1989). Human Resource Management. McGrath Hills, New York. Milkovich, G.T &, J.M. Newman (2005). Compensation. (7th ed). McGraw Hills, New York. Nieto, M. (2006). An Introduction to Human Resource Management: An Integrated Approach. Palgrave Macmillian, Hampshire England. Palmeri, C. (2007). Workers Say: ‘We Want an Upgrade’. Business Week; Issue 4030, p11-11. Taub, S. (2006). American Airlines: Bonuses amid Losses. CFO Economist Group. January 2006. Williams, S.,Adam-Smith, D. & Norris, G. (2004). Remuneration Practices in the UK Hospitality Industry in the Age of the National Minimum Wage. The Service Industries Journal. Vol 24, No.1, pp

You May Also Find These Documents Helpful

  • Best Essays

    A company’s fundamental purpose and objective of compensation is to provide adequate and equitable rewards to employees at a level that matches theirs skills, abilities and contributions to the company (DeNisi, Angelo S., Griffin, Ricky W., 2008, p. 284. Para. 1). Compensation is the human resource management function that deals with every type of reward that individuals receive in return for performing work – including financial and nonfinancial rewards. Financial rewards include direct payments (e.g. salary) plus indirect payments in the form of employee benefits. Nonfinancial rewards include everything in a work environment that enhances a worker’s sense of self-respect and esteem by others (Cascio, 2006, p.418, Para. 1).…

    • 1391 Words
    • 6 Pages
    Best Essays
  • Satisfactory Essays

    Companies today should mirror their compensation and benefit programs with their long- term business strategy and organizational culture. According to Casio (2010), “Pay systems are designed to attract, retain, and motivate employees” (p.421). The most important objective is fairness or to achieve internal, external, and individual equity; and maintain a balance in relationships between direct and indirect forms of compensation, and between the pay rates of supervisory and nonsupervisory employees. Employers must perform job analysis, develop job descriptions, evaluate the value of job/position in the organization, develop pay structure and pay levels to create competitive employee compensation and benefits (Cascio, 2010).…

    • 386 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Martocchino Compensation

    • 1644 Words
    • 7 Pages

    Joseph J. Martocchino states that, “Compensation represents both the intrinsic and extrinsic rewards employees receive for performing their jobs and for their membership as employees” (3). Compensation can be in the form of money and also services or discounts. Monetary rewards or bonuses and vacations are common in many work places. Other examples include healthcare for the employee and possibly his/her family also, 401K, retirement, salary incentives, child care assistance and even time shares. Compensation does cost companies money but its effect on employees is worth the cost in the long run.…

    • 1644 Words
    • 7 Pages
    Better Essays
  • Best Essays

    Qantas Report

    • 3495 Words
    • 14 Pages

    This issue takes place in multiple industries, transport, labour and tourism to name a few. (The) This report focuses primarily on the labour industry, and the impact of the industrial relation issues on the airline and the strategies that Qantas put in place to resolve the issue.…

    • 3495 Words
    • 14 Pages
    Best Essays
  • Best Essays

    Motivation at Ryanair

    • 3083 Words
    • 13 Pages

    Ricardo Lopes UC - MBA 2010-2013 Organisational Behaviour Introduction Nowadays flying for a few pounds is a reality in Europe, due to low cost airliners, like Ryanair. Management at Ryanair has only one view, to reduce costs in all ways possible to give their customers the lowest price in the market (Boru, 2006). This was the type of management that changed civil aviation in the last 20 years. For this reason, human resources in Ryanair are considered one more resource in the company that must be reduce like the others (Boru, 2006). In the light of this culture, Ryanair has motivation problems in all areas of the company, such as cabin crew, pilots and ground staff. It might be possible to use: Maslow’s hierarchy of the needs theory; Herzberg’s two-factor theory; Equity theory and Expectancy theory, to solve the Ryanair’s motivation problems, however while all these theories can influence motivation of Ryanair employees, for some of them it would be difficult to analyse the results (e.g. Maslow’s and Herzberg’s theories). Next I will describe the characteristics of Ryanair culture, indicate the importance of motivation from an organisation point of view, and give a brief introduction about each theory, then I will analyse these theories strength and weakness, and finally I will explain how these theories can be used to influence motivation at Ryanair. Characteristics of Ryanair Culture At Ryanair there are several rules in regard to their company culture, such as, cuts of office expenses, and costs like training, uniforms or crew meals that staff has to pay for themselves. Normally, these costs are support by the airliners companies, which does not happens within Ryanair; thus due to the above mentioned rules Ryanair employees have a high turnover of staff. In facto, International Transport Workers’ Federation (IFT) has received hundreds of messages with complaints regarding the poor working conditions that exist at Ryanair workplaces…

    • 3083 Words
    • 13 Pages
    Best Essays
  • Best Essays

    Meanwhile, the said program for employees should provide changes based on performance, promotion or changing conditions and provision of regular remuneration and performance reviews is considered essential. Similarly, incentives remuneration such as giving bonuses as discretionary rewards for achieving targets can also heighten the determination of employees to work. Gerhart and Rynes (2003) support the idea that individual incentives can generate substantial increases in performance. On the other hand, benefits can also be given to compensate salary costs such as health care plans, life insurance and retirement benefits. The remuneration program should be aligned to both the organisation’s strategic objectives and employee needs and must be supported by the human resource department to attract, retain and motivate employees within the…

    • 2238 Words
    • 9 Pages
    Best Essays
  • Good Essays

    Suggest Possible Solutions ⦁ When it comes to employees’ motivations: Leaders should reward their staff for their performances within the hotel; it is a great asset for them to see that managers are appreciating their work with the rewarding system in formal letter or financial raise. ⦁ Employees and Job Satisfactions…

    • 732 Words
    • 3 Pages
    Good Essays
  • Best Essays

    When focusing on maintaining a workforce within the tourism and hospitality industry, it is essential to identify the key concepts that motivate workers. Division of labour is part of every organisation; therefore the formation of groups is important in increasing work performance. It is not always easy to manage the creative and innovative aspects of team work, where individuals ideally need to share the values, characteristic and interests of the other team members, to work with them in harmony and yet have something different to offer (Adair and Thomas, 2002 p.101). Every group needs a leader to direct and encourage their creativity, through the use of different leadership styles, since there is no “one best way” of leading.…

    • 2607 Words
    • 11 Pages
    Best Essays
  • Satisfactory Essays

    Travel and Tourism

    • 378 Words
    • 2 Pages

    Analyse the factors that contribute to an effective workplace, highlighting good practise from different travel and tourism organisations.…

    • 378 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Compensation and Benefits can include monetary and non-monetary components such as base salary, annual incentives, retirement plans, health insurance, vacation, merit, long-term incentive pay. The Human Resource departments use these components as a competitive strategy; In addition, they use these components to attract the top candidates for their company. Employees’ drive a company’s performance, so company’s must ensure employees are being compensated for their hard work if they wish to have a positive output. Employees tend to feel motivated to help their company reach its vision if they feel they are being valued by their employer. This can consist of bonuses, raises, or high base salary. Human Resources should always have an understanding of compensation and employment laws to keep from having legal…

    • 863 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Compensation Strategy

    • 919 Words
    • 4 Pages

    Pay can either be an asset or a liability to a company. Stated another way, it can either drive growth or hinder it– fuel performance or diminish it. Is that placing too big a burden on compensation to produce results? I don’t think so. In fact, my experience and observation has been that most businesses don’t set high enough expectations for their rewards programs. The evidence is they don’t involve compensation in other strategic discussions. The result is there is little to no link established between pay and the key success measures the company needs to reach.…

    • 919 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    In exchange for job performance and commitment, an employer offers rewards to employees. Adequate rewards and compensations potentially attract a quality work force, maintain the satisfaction of existing employees, keep quality employees from leaving, and motivate them in the workplace. According to research conducted by the Corporate Executive Board, the most important workplace attribute is compensation, (The Increasing Call for Work-Life Balance, 2009). Not only must wages be set high enough to motivate and attract good talent, they must also be equitable—that is, the wage must accurately reflect the value of the labor performed. Fair and equitable compensation is a crucial factor in the success of an organization. It is important because it is a tool that is used to recruit, maintain, and motivate their employees to contribute to the organization’s success.…

    • 1776 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Jobs in the tourism sector are all different and all of them follow with different duties and responsibilities, in this assignment I will be comparing two different jobs in the tourism sector, I will be focusing on receptionist at a hotel and air cabin crew. To compare these jobs I will be focusing on their duties and responsibilities of both jobs, I will also compare entry requirements for receptionist and cabin crew and also if both jobs could progress what can they promote to and what is the difference and similarities in both.…

    • 3057 Words
    • 13 Pages
    Good Essays
  • Powerful Essays

    Boella, et. al. (2007). Human Resource Management in the Hospitality Industry. Singapore: Elsevier Publishing Inc.…

    • 13612 Words
    • 55 Pages
    Powerful Essays
  • Satisfactory Essays

    payment system

    • 556 Words
    • 2 Pages

    • For most employees, the remuneration package is the most important part of a job – and certainly the most visible part of any job offer.…

    • 556 Words
    • 2 Pages
    Satisfactory Essays