Importance of HR in Service Sector Companies

The provided document is an academic assignment that explores the significance of human resources (HR) in service sector companies. It delves into the various roles and functions played by HR, including creating job descriptions and person specifications to fill vacancies. The assignment also touches on performance evaluation methods, such as graphic scales and self-evaluation. By highlighting these aspects, the document aims to demonstrate the importance of effective HR management in service sector companies.

Human resource management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 The importance of human resource management and the purpose and role of HRM...........1
1.2 Human resource plan based on analysis of demand and supply for the company................2
TASK 2............................................................................................................................................4
2.1 Assessment of employment relationship within the service sector.......................................4
2.2 Employment laws that affect the management of human resources.....................................5
TASK 3............................................................................................................................................6
3.1 Job description and person specification...............................................................................6
3.2 Comparison of selection process of 2 different companies of service sector.......................8
TASK 4............................................................................................................................................8
4.1 Training and development function in Tui tour and travels company..................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Human resources refers as a department of a company that are responsible for
development company's as well as employees performance. For being in a competition it is very
important for service sector companies to make them differ from others. Tui tours and travels
company is being selected for conducting research. Tui is an Anglo German travel and tourism
company. Headquarter of this company is in Germany. It owns travel agencies, airlines, hotels
and cruise ships. This company appoints a HR trainee in order to play roles and make the
company differ from others. This study will cover and show about the importance of HR in
service sector. They help the company for achieving their determined goals by playing various
functions (Berman and et.al, 2019).
TASK 1
1.1 The importance of human resource management and the purpose and role of HRM
Human resource management play a significant role in managing people and the culture
of the company. HRM is a practice of hiring, developing and maintaining the company's
employees. The main aim of HRM is to achieve the company's goals by solving the issues
related to performance management, recruitment of employees of tour and travels company.

Importance of human resource management: HR is very important for tour and travels
company as they play various roles and functions as they recruit and provide training to their
employees in order to better performance. Other importances are:
 Effective human resource help to attract m,ore employees and also help to retain their
employees in the organisation.
 Help to developing necessary skills and attitude in the employees by providing on gong
training and development program.
 And they have the ability to utilise available human resources in the organisation.
 HRM help to promote team work and also offer different opportunity in the organisation
to rise.
There are mainly 2 types of HRM functions in Tui tours and travels company such as:
managerial functions and operative functions.
A-Managerial functions
Planning: Planning is the very first function of HRM as it includes planning of
recruitment, selection, training etc. In Tui tours and travels company it forecast the needs of
personnel, behaviours and attitude of employees and also their impact on the company.
Organising: After planning HR allocates works and tasks of the company among all the
members of staff. In this function it also identifies their relationship and arranges works
systematically. It is important for the company as it facilitates growth and also helps in optimum
use of resources of the company.
Directing: After allocating works, HR motivates and lead employees for better
performance. Direction is very important for employees as it increases their morale when HR
motivates them for better performance (Bratton and Gold, 2017).
Controlling: Controlling function includes checking, verifying and comparing
determined plans with actual plans and results. For better management it is very important for
HR to control in order to take corrective actions and decisions.
B-Operative functions
Employment: Employment refers the security of employees related to job. Employment
functions includes selection, recruitment, job analysis, placement and orientation. It is the
combination of various and main functions of HRM.

Compensation: Compensation is a motivation function whose main aim is to motivate
employees in order to decrease labour turnover. For motivating employees of Tui tours and
travels company, it provides fair and adequate remuneration to them. Compensation include
incentives, bonus, fringe benefits and social security (Lo, Macky and Pio, 2015).
HR development: This function also plays an important role in Tou company in order to
increase the ability and skills of employees that helps them in fulfilling future job requirements.
Roles and purpose: The main purpose and role of HRM is to maximize individual development,
improve relationship of employees with the company and effective utilization of HR.
Working relationship: HR helps to company by improving relations between the
manager and employees. For improving relationship it focuses on collaborating working and also
tries to solve the problems relating interpersonal communications.
Maximize individual development: The main aim of HR of Tui company is to improve
individual performance and working in the company. For achieving this goal HR provide and
conduct training program for them which helps them in strengthening their knowledge and skills
(Taylor, Doherty and McGraw, 2015).
Developing skills for future: HR professionals one of the main role is to develop skills
for the employees by using the organisational training and development for the employees. And
also advise manager to assign different roles to employees that help them to play different roles
and enhance their skills.
Building loyalty and commitment: HR manger also make strategies that hep to increase
the employee commitment to towards the organisation. They also try to commitment by hiring
right employee that matching jobs for them and their qualification.
1.2 Human resource plan based on analysis of demand and supply for the company
Tui is a tour and travels company of services sector whose main aim is to provide
satisfactory services to employees at the right time. For fulfilling demands of services HR needs
to be ensure that there is a sufficient amount of employees who has proper knowledge related
this company and services. Due to delay in delivering services it has to face problems like it
creates dissatisfaction in customers which decreases the sales and profitability of the company.
Analysis of demands and supply
1 Demand forecasting: Supply chain management focuses on all the aspects and
elements of Tui travels company. It assesses the demands of its customers of their services. For

satisfying demands and in order to supply it needs to analyse talent and resources that they need.
For analysing HR do demand forecasting which is a process of determining the future
requirement of man power for providing satisfactory and good quality services according to
demands (Brewster, Chung and Sparrow, 2016). Judgemental forecast and strategic projection
are mainly 2 type of demand forecasting that HR of Tui company uses.
2 Sales forecasting: Sales forecasting is a procedure if estimating the future sales of the
company. For sales forecasting Hr should consider some factors such as: economic conditions,
changes within the company and needs of customers etc. Hr determines the required man power
within and outside of the company. The main aim of this forecasting is to fulfil the objectives of
delivering products and services to customer on given time.
A law of supply such as:
If there is a condition of drought and because if this condition there are very few
strawberries are available. People want more strawberries and there is a huge demand if
strawberries in that condition that time producer and workers increases prices of strawberries
dramatically. When there is an opposition and against condition then it can increase and decrease
the prices of a product. It is called the law of supply.
Human resource planning:
This planning can take place at various levels like industry level, national level, sectoral
level and unit level. Industry level planning is more concerned with operational levels and results
of tour & travels company.
HRM planning for opening a new branch of this company is in following manner:
Objectives Actions that need
to be taken
Aim & milestone Person in charge Target time limit
To increase
workers
satisfaction
For increasing
workers'
satisfaction, Hr
can provide
financial and non
financial benefits
and for analysing
it can take
The main and
primary aim of Hr
and manager of
Tui travels and
tour company is
to decrease labour
turnover and
increase level of
HR personnel Within 1 month

feedbacks from
employees.
motivation.
To employee new
employees for the
branch
For employee
new workers for
the new branch of
tours and travels,
Hr of Tui need to
do recruitment
and selection
process and also
CV short-listing.
To join potential
and talented
employees in the
new branch.
HR manager Within 3 months
To establish
policies
It needs to
develop issue
letter regarding
policies
(Cabi.Collings,
Wood and
Szamosi, 2018).
To handover
regulation
materials to
workers to make
them understand
importance of
policies.
HR personnel and
HR manager
2 months
TASK 2
2.1 Assessment of employment relationship within the service sector
Employees play an important for any type of business. No company can run their
businesses without workers so it is very important for the HR of Tou tours and travels company
to manage and improve employment relationship. For working and functioning smoothly and
reduce problems at workplace employer needs to motivate them and maintain relationship with
them.
Travel and tourism sector has a continuous development in the market. So there are
various factors and aspects that need to be considered for sustainable development. IN UK there
are numbers of policies and rules are being developed by the government in order to maintain

and improve employment relationship (Cascio, 2015). For improving employment relationship
HR of Tui tours and travels company can focus on an effective communication which helps in
reducing conflicts.
HR trainee focuses on proper communication and for that it adopts an effective and the
best way of communicating. For proper communications it takes diverse measures like meetings
and negotiation in order to set work standard. Skill development programmes also helps the
manager of tours and travels company in improving the relationship. For service sector it is
essential for manager and HR to resolve issues related workers because it directs impact on the
performance of the company as well as employees.
For improving workers relationship Trade union also play a vital role. It supports the
company and also pervert the rights of employees in order to maintain healthy and strong
relationship with employer and each other. Trade unions also helps in solving conflicts at
workplace as it conducts negotiations for solving conflicts or disputes. It makes some plans and
then implement that plans and collective actions for collective bargaining and providing them
safe and healthy working environment.
2.2 Employment laws that affect the management of human resources
There are various laws and regulation related employment that affect and impact on the
functioning of HR in service sector. Some employment acts are compensation act, wages act,
discrimination act, maternity benefits act and so on. These laws impact on travel company in
positive manner and in negative manner. The company has its own rules and regulations that is
important for workers to follow otherwise they have to pay penalties for that. Same as the
business laws there are some laws which is made by the government which is also important for
employer and employee to follow.
Equality act 2010: This is an act of parliament of the UK. The main aim and purpose of
this act is stop discrimination among employees at workplace. It is very important for HR to
ensure that every employee is being treated fair and equal. By following this act It can have
positive impact on the management of HR as it can decrease labour turnover as well as increase
their morale (DeCenzo, Robbins and Verhulst, 2016).
Equal pay act 1970: This was also an act of the parliament of the UK. Th main purpose
of implementing this act is to prohibit less favourable or unequal treatment between women and

men in terms of payment and conditions. By not following this act Tui company has to face
many claims which can decrease the image of the company.
Social security act: This act also has been established by the government with the
purpose of providing benefits to workers. This act increases the living standard of society as it
provides aid for dependent children, mothers and disabled person.
Trade union and employment rights act 1993: The trade union is an association and
group of people that works for achieving a common goal. The main aim of this act and
association is to protect employees and make them able to raise their voice against unfair and dis
satisfactory policies.
TASK 3
3.1 Job description and person specification
Job description- A job description is a document which describes the roles and responsibilities
of a particular position.
Title- Human resource
Company- Tui tours and travels
Division- Travel agency
Job title- Human resource manager
Job description- Human resource manager is involved with recruitment, compensation,
training of employees.
Required skills- Effective communication skills, ability to work under pressure and hard-
working.
Working days and salary- 5 days working. Salary will be between $25,000 to $30,000
Educational qualification- The candidate must have proper and depth knowledge of this field.
It is necessary to have bachelors and management degree. It also should have knowledge about
legal laws and regulations and minimum 2 years of working experience in the same field
(Hollenbeck and Jamieson, 2015).

Diploma in hotel management is essential.
Masters in human resource management is desirable.
Responsibilities of HR manager
First of all identify vacancies in the company.
To give advertisement about vacancies.
Conduct interviews for recruitment process.
Recruit and select talented candidates in the company.
Maintain all the informations and records of employees.
Formulate policies and procedures of the firm.
Review staff performance and provide guidance to workers.
Conduct training and development programmes for performance management and career
development.
Solve customers issues and maintain relationship with employer.
Ways of application- You can submit your resume and cover letter with expected salary on our
website www.tui.com. Selected candidates will be contacted soon.
Person specification- A person specification is important as it describes the personal skills and
attributes which is required in an employees and for fulfilling the required job.
Requirements Essential (E)
Desirable (D)
Qualifications- CI PD qualified.
Diploma in hotel management
Essential
Essential
Knowledge & Experience- Experience of
supporting and maintaining recruitment
process.
HR software.
Maintaining and administrating payroll.
Knowledge of employment law.
Essential
Essential
Desirable
Essential

Skills and Competencies- Effective
communication skills in order to share
informations effectively to the employees and
audiences.
Ability to maintain and foster working
relationship with employees as well as
employer (Noe and et.al, 2017).
Essential
Essential
Personal qualities- Ability to work
confidently.
Confidence in dealing with difficult situations.
Professional and approachable.
Desirable
Desirable
Essential
3.2 Comparison of selection process of 2 different companies of service sector
There are different methods of selecting employees in the company. Different company
use different selection processes like interviews, online screening, aptitude tests etc.
Two companies that has been selected for making caparison in selection process are
Hilton hotel and Tui tours and travels that deals in tourism services and products in service sector
industry. Hilton hotel is hospitality company which provides good quality services to its
customers. There are various services that are provided by tourism company that include food
beverage, holiday packages, on line booking services etc. In this type of company and in Tui
tours and travels company selection of candidates is based on the skills which are required in this
field.
Tui tour and travels company use interview selection method in which it conducts
interviews. Firstly it identifies the vacancies in the company and then develop position
description. Interview is a formal discussion in which employer interact with candidates face to
face. In this process recruiter asks questions and personal informations from candidates in order
to analyse the fitness of that candidate for particular job. It is important and the best process for
candidates as well as recruiter (Schuler and Jackson, 2008).

Hilton hotel uses online screening test for hiring or selecting candidates. In this process
employees and candidates required to give tests that are in questionnaires and typically forms.
This questions may be multiple choice, rank order type and yes or no type. It all depends upon
the questions and position of the job. These questionnaires are used by the hotel in order to
analyse and identify skills, attitudes and knowledge of candidates.
TASK 4
4.1 Training and development function in Tui tour and travels company
Training and development function plays a crucial role in Tui tours and travels company.
After recruiting candidates for the company HR requires providing them training in order to
strengthen their skills and knowledge. In the company training is provided by senior manager
because they have proper knowledge related industry. In training period a person and individual
is judged by manager on the basis of their skills and ability to perform tasks.
After need analysis it provides technically training which helps them in changing the
attitude and improve skills and knowledge of them. The main aim of providing training and
development is to meet and achieve organisational as well as employees goals. It also helps
manager of Tui tours and travels company in effective and productive work (Taylor, Doherty and
McGraw, 2015). Trained and motivated employees work hard and focus on providing the best
quality services to their customers. For providing training manager HR of the company makes
training calendars at the beginning of the financial year.
Performance evaluation method
Performance evaluation is the best method of motivating employees and also for making
them able to become self motivated. Tui travels company use various methods for performance
evaluation of their workers like 360 degree evaluation, check list method and graphic scale. The
best method is graphic scale in order to measure performance of workers. In this technique and
method performance of employees are measured in graded on scale. It is important and
beneficial for the manager of the company because it makes them able to compare performance
of employees simultaneously or at the same time. Self evaluation is another important method of
performance evaluation. In this method workers are asked to judge their own performance by
providing some answers of questions (Wright, 2018.). It helps HR and manager of the firm in
identifying the ways in which they can improve performance of employees.

CONCLUSION
From the above study it has been concluded that there is an importance of HR in service
sector companies. It played various roles and functions that helps the company in achieving their
determined goals. In the service sector company there is a wide scope of HR. It required to have
knowledge of labour laws and legislations because it impacted on functioning of HR in the
company. Job description decided and described the requirements of a position which is required
by the firm in order to fill the vacancies. Person specification described personal qualities of an
individual which is essential for a particular job.
REFERENCES
Books and journals
Berman, E.M and et.al, 2019. Human resource management in public service: Paradoxes,
processes, and problems. CQ Press.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Brewster, C., Chung, C. and Sparrow, P., 2016. Globalizing human resource management.
Routledge.
Cabi.Collings, D. G., Wood, G. T. and Szamosi, L. T., 2018. Human resource management: A
critical approach. In Human Resource Management (pp. 1-23).
Cascio, W. F., 2015. Managing human resources. McGraw-Hill.
DeCenzo, D. A., Robbins, S. P. and Verhulst, S. L., 2016. Fundamentals of Human Resource
Management, Binder Ready Version. John Wiley & Sons.
Hollenbeck, J.R. and Jamieson, B.B., 2015. Human capital, social capital, and social network
analysis: Implications for strategic human resource management. Academy of Management
Perspectives.29(3). pp.370-385.
Noe, R.A and et.al, 2017. Human resource management: Gaining a competitive advantage. New
York, NY: McGraw-Hill Education.
Schuler, R. S. and Jackson, S. E., 2008. Strategic human resource management. John Wiley &
Sons.

Taylor, T., Doherty, A. and McGraw, P., 2015. Managing people in sport organizations: A
strategic human resource management perspective. Routledge.
Wright, P., 2018. Fundamentals of human resource management. Management.5.p.27.Moutinho,
L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI Tourism
Texts.
Lo, K., Macky, K. and Pio, E., 2015. The HR competency requirements for strategic and
functional HR practitioners. The International Journal of Human Resource Management. 26(18).
pp.2308-2328.