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CHAPTER ONE
INTRODUCTION
1.1
THE
BACKGROUND OF THE STUDY
Since the beginning of recorded time, people have travelled, and during
their travels, have needed shelter. This consequently encouraged the springing
up of some accommodation in form of inns and small hotels and subsequent larger
hospitality suites, to meet such needs. This thus hospitality is said to be the
worlds‟ second oldest profession.
Just after the civil war in 1970, there was a
virtual absence of hotels and especially, the well known names in the
international hotel industry in Nigeria. Not until the late 70‟s, during the
oil boom era, did Nigeria start experiencing some growth in her hotel industry.
In recent years however, Nigeriahosting of several major international events
like the common wealth heads of government meeting (CHOGM), All African games,
carnivals, meeting including the visits of two American presidents an other
presidents with their entourage, has led to the building of several more hotels
in Nigeria, especially in the major cities.
This growth is not restricted to Nigeria alone,
example, the American food service industry in 1979 had 110 billion dollars of
busing for meals away from home and was infact the third largest industry in
the country in terms of gross retail sales, it employs
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about 6 million people and had average of 125. 42 employees in 1995 and
yet still needs many additional employees every year.
Nigeria has since seen many important developments
and changes in the relative improvement in the standard of living of a vast
majority of working people. These improvements have come about as a result of
many different factors including greater national productivity, stronger growth
of economy, having more enlightened management and pressures from trade unions.
The contributions made by the hotel and catering industry to this
general rise in standard of living are considerable, providing essential and
leisure services, employment and wealth creation.
Hotel development in any country is a detailed process, requiring a high
level of pre-planning prior to, during and after construction. There is still
evidence in many places in Nigeria that this pre-planning has not adequately
been carried out, resulting in some hotels that are unable to meet today‟s and
tomorrows ever-changing and increasing customer needs, including the fact that
demand far outstrips supply, with major cities like Lagos having now shortages.
Nevertheless, Tourism, of which the hotel and catering industry is a principal
element is said to be a potential growth sector in Nigeria.
The conditions of employment of a large number of
the industry‟s staff have not kept peace with those enjoyed by working people
elsewhere, in spite of the technical
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improvements within the catering industry itself. The reasons for the
slow rate of improvement in the industry‟s condition of employment are
considerable including an understandable reluctance on the part of many
proprietors and managers to adjust labor earnings according to improvements in
the industry. Another reason could be that trade union movements exert little
influence in most sectors of the industry, since moreover most people that make
up the industry‟s workforce are people who are not prepared to make a career
out of the job.
The working conditions of the industry‟s staff are
for most cases unattractive. There are intrinsic problems which are unavoidable
such as having to work long evenings and weekends. Other problems however can
certainly be removed or reduced by determined management action. Such problems
are staff reliance on tips, ignorance of workers on methods of calculating pay
and the distribution of service charges, and management‟s reluctance to involve
staff in matters that affect their working lives. Management should therefore
evolve a way of bringing out the best in these groups of ignored members of our
workforce.
In Nigeria, there are many organizations that
provide catering services and which by their nature can be termed hotels. It is
estimated that there exists about 550 hotels, inns and commercial guest houses
in Nigeria by the year 2008 that employs between 10 and 250 people in line with
their sizes. It is said that about 418 – 900 people were employed in 2003
worldwide.
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1.2
STATEMENT
OF THE PROBLEM
In an industry in Africa where there seems to have
been a continued growth over the years, expertise is therefore expected to be
limited and this constitutes a problem.
There and other problems are what the study wishes to consider and make
recommendation where necessary. The problem reduction in experienced hands in
this industry in the third world, seem to be the case due to managers
reluctance to train its workers and employ able hands.
Another problem lies in the fact that most workers
in the industry have no clear cut channels to register their protests and
grievances since management usually stifles unionization agitation.
The third problem concerns the issue of how the
basic payment and benefits of workers is commensurate with their dedication to
work and efforts. As employers are less responsive to changes in the economy
with respect to adjustments of pay and benefit packages in line with economic
growth as being experienced in most developing countries today, including
Nigeria, they are left with employees whose dedication to work decreases; with
huge reduction in their morals and motivation to work.
We are also confronted with an environment where
employees are usually kept in the dark without being enlightened on things they
have the right to know. Example, payment
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determination method, criteria for promotion (etc),
but rather such issues are based on the whims of management. This constitutes a
problem.
The last problem is the general belief by most
people that jobs in the industry is one of last resort which they can take up
when they do not find a “better” job to do. This thus discourages young people
who may wish to have a career in the hotel and catering industry.
Having identified some of the problems, this study
intends to find possible solutions to some of them.
1.3
THE
OBJECTIVE OF THE STUDY
To this end, this study aims at
assessing the reasonability of all the entitlements due or payable to that part
of the labor force that works fully or partly in the hotel and catering
industry. The objectives of this study are thus.
v To examine the reasonability of other entitlements and benefits that is
not part of the basic payment.
v To assess the degree to which payment is commensurate with the efforts
of employees in this industry.
v To evaluate the extent to which payment and benefits in this industry
are similar to those of like-industries.
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v To examine the industrial relations existing in the hotel under study
and its impact on worker‟s welfare.
v To identify the impact of inappropriate payment and employee benefit
schemes or their absence altogether, on employee performance.
1.4
RESEARCH
QUESTIONS
The following research questions
will be raised:
1.
To what extent do the workers in
the hotel and catering industry satisfied and motivated by their payment?
2.
To what extent do the working
condition obtainable in this industry quite satisfactory relative to workers
effort?
3.
To what degree is management
involved in the training and development of its workers?
4. To what
extent does management agree to the formation of unions?
5.
To what extent is management
responsive to changes in the economy with reference to the adjustment of
payment and benefit packages in line with economic indicators?
1.5
RESEARCH
HYPOTHESIS
The
hypothesis of this research work includes:
HO: Employee payment packet and benefit are not equal to the efforts they
put in,
HA: Employee payment packet and benefit are equal to the efforts they put
on.
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HO: Management
does not encourage workers to unionize
HA: Management
encourages their workers to unionize
HO: Workers
morale and motivation to work is negatively influenced by payment and benefits
they receive.
HA: Workers
morale and motivation to works is not negatively influenced by the payment and
benefits they receive.
1.6
THE
SIGNIFICANCE OF THE STUDY
The study is significant for the
following reasons:
v To change the belief by some hotel management in the country that the
formation of unions by employees may mean more trouble for them.
v To bring to the fore, the importance of having pay being commensurate
with efforts and productivity since the bulk of workers in this industry are after
psychological
needs but work in environments supposedly the exclusive reserve of self
actualized members of the society.
v Ability to help reinstate the industry belle to its supposed place as a
major part of the economy and as a potential growth sector.
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1.7
SCOPE AND
LIMITATIONS OF THE STUDY
An attempt of evaluating the management of the
human resource in the hotel and catering industry will be too vast and all
encompassing. It is therefore the opinion of the researcher that the scope of
this study be restricted to the administration of employee benefits and welfare
schemes, that is all other entitlements due to employee other than payment,
which by their nature may act as motivation for the staff of the organizations
in the industry.
The study is confined to the entire staff of Royal
Palace Hotel, Enugu. However, the findings of this study will apply to the
hotel and catering industry in Nigeria. Major limitation to this study, is the
limited worse by previous researchers on this subject, as well as management‟s
hostility to questions and enquires.
1.8
DEFINITION
OF SPECIAL TERMS
Hotel- An
establishment held out by the proprietor to offer food and drinks,
and if so
required sleeping accommodation to anybody who is in a fit
state to receive the services.
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