Analyzing HRM in Service Sector: Employee Relations and Legalities

This report provides an analysis of human resource management (HRM) within the service sector, focusing on Thomson Tour operator as a case study. It examines the significance of HRM, including planning, staffing, training, employee relations, and performance management. The report details the development and justification of a human resource plan based on supply and demand analysis. Furthermore, it explores the current state of employee relations in the travel and tourism sector, highlighting the impact of democratic philosophies and the importance of communication and skills development. Finally, the report discusses how employment law affects the management of human resources, emphasizing compliance with various acts and regulations to ensure ethical practices and maintain a sustainable business environment. Desklib offers this report as a valuable resource for students studying HRM.

Human Resource Management in
Service Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1.1 significance of human resource management and analysing the role and purpose of Human
resource management in Thomson Tour operator..................................................................3
1.2 Developing and justifying human resource plan based on analysis of supply and demand
in Thomson tour operator.......................................................................................................4
TASK 2............................................................................................................................................5
2.1 Current state if employee relation within sector...............................................................5
2.2 Employment law affects the management of human resources.......................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Service sector organisation is requited to differentiate themselves in order to survive in
competitive environment. It is required by them to appoint experts, so that it can take support
from them in order to gain competitive advantage in market. The company appoints human
resource manager as an expert in order to differentiate themselves as specialist in the field by
demonstrating that they have particular expertise and unique approach. With increase in
competition in service sector the role of human resource manager has become very crucial. They
play very significant role in selecting and appointing skill and talented employees in order to
assist firm achieving goals. But now there role has more wide scope.
The Thomson tour operator company is being selected for conducting research. It is a
travel agency in UK
The purpose of conducting this study is to development the understanding about concept
and role of human resource management in service sector.
1.1 significance of human resource management and analysing the role and purpose of Human
resource management in Thomson Tour operator
The tour operator refers to the industry that provides various services to travellers. The various
industries conduct various activities such as planning, arranging, organising various trips and
tours foe travellers (Yazici, Beyca and Zaim, 2017). Human resource management plays very
crucial role in organisation. It assists enterprise in managing its Human resource that are the
more significant resource that has important contribution in achieving goals and objective for the
firm. It also assists tourism enterprise in organising and arranging for various activities (Li and
Jiang, 2017.)
The role and purpose of human resource engagement in travel industry include:
1. Planning-Human resource planning include identifying the need of number of employees
in the future. The plan made By Personnel manager is based on goals of organisation.
Various factors are considered by human resource manager before making plan these
factors are enterprise situation, strategy, analysing the impact of various environmental
factors on various business activities. These plans are being Formulated by Personnel
manager in order to align human resource strategy with firm goals and objective. T he
purposes of human resource management is to ensure that sufficient amount are workers

are available for performing various activities effectively and efficiently in travel
industry. Employees are required for providing various services to traversable.
2. Staffing- Human resource manager plays significant role in selecting candidates. It is a
very critical role that is being played by Personnel manager especially in-service
industry. The employees' behaviour has significant impact on the growth and success of
tourism industry. Staffing refers to the process of hiring right candidate for right job. It is
very critical role as personnel manager have to be very careful when selecting for
candidate. As this may have great effect on company performance as well.
The purpose of personnel manager includes ensuring that best and talented candidates are being
chosen so that they could assist firm not only in achieving the goals but help tour operator
industry in maintaining their performance in market.
3. Orientation, Training and development-The personnel personal manger aims at providing
orientation to new employees in order to asst them in adjusting into new working
environment. Training and development activities in travel industry help workers in
enhancing their skills in order to improve their performance in organisation. This enables
them to provide services to travellers and visitors in effective and professional manner
that have direct impact on Image of Tour operator .It assists organisation in developing
brat image and increasing number of customers.
4. Employees relations-Employees relation reflects the environment in organisation The
role of personnel manger is to ensure that There is effective relationship between
employees and the company. As the relationship between employees have great effect on
the performance of the enterprise.

The purpose of Personnel manger is to eliminate conflicts and employees dissatisfaction.
5. Performance management- The human resource manger plays significant role in maintain
g organisational al performance. Their role include ensuring the proper flow of
communication among various department in enterprise. They communicate the
expectation of firm to employees in order to assist them to maintain their quality of
performance and enable them to develop future work potential (Belias,Trivellas,
Koustelios and et.all., 2017.).
1.2 Developing and justifying human resource plan based on analysis of supply and demand in
Thomson tour operator
When there is increase in demand of tour operators services It is required by Thomson
Tour operator to ensure that it has sufficient amount of employees in order to provide services to
their customer. The organisation should ensure that their clients re being provided with effective
and timely services. As delay in delivering of services and poor quality of services may lead to
Illustration 1: Role of human resource management
Source: (Chelladurai and Kerwin, 2017)

dissatisfaction in employees. In order to avoid this It is essential for company to develop plan.
The personnel manger can use various statistical tool and techniques for developing plan. r
1. Analysing factors For manpower requirement on demand side-
This process include designing and analysing the demand based on exciting customer base.
Analysing process include various consideration such as future capabilities , knowledge and
skills of present workers. The elements of human resource requirement can be identified by
undertaking demand forecasting. Demand forecasting refers to the procedure of determining the
future man power requirement for conducting various activities and for delivering services to
travellers (Springer,Dwyer, Čorak and Tomljenović, 2017)
There are two types of forecasting can be used for demand forecasting these are
Judgemental forecast and strategical projection. Judgemental forecast includes various
judgement made by tour operator regarding demand for services. Strategical projection is based
on statistical method.
2. Supply Forecasting- The supply forecasting is concerned with determining the man
power requirement from within and outside business unit. The human resource manger
can conduct various activities such as Human resource audit, Estimating future losses of
man power, facilitating internal promotions. Etc. This process can be conducted in order
to fulfilling the objective of delivering services to clients on Time.
Conducting human resource Audit- This includes analysing workers skills and abilities.
Estimating future losses- This process include estimating future losses of man power for each
department. This process have focus on identifying employees that can leave organisation.
Internal promotion-It includes determining the vacancies and identifying various sources for
fulfilling the place (Cavanagh, Bartram, Meacham and et.al., 2017. )
TASK 2
2.1 Current state if employee relation within sector
Travel and tourism sector is having a continuous development within market. However,
number of aspects are being considered in terms of employee relation for sustainable
development. It has been noticed that UK is more concern towards democratic philosophy which
impacts diversely on the employee relation. According to the philosophy of employee’s
relationship in United Kingdom the employees and employers stay in position from where both

of them have the power to bargain. It has been noticed that there are number of rules and policies
which are being developed by government in order to improve employee relation. Tourism sector
always allows to have better engagement with employees because it allows to have effective
identification of needs. With an application of diverse measures the issues can be resolved. In
order to meet the standards the TUI and other businesses of tourism sector are also focused
towards consideration of democratic philosophy (Payne and Isaacs, 2017.)
Proper communication is being taken into account by the management in order to ensure
that employees are having appropriate understanding about the activity. With an application of
diverse measures like negotiation and meetings the work standards are being set out. It helps in
improving the performance because it affects service quality. It also advances the morale of
workforce and lead to impressive level of success. Skills development programs are also being
organised by the companies in order to make sure that employee relation and coordination can b
advanced. In addition to this, it can be said that cultural values are also need to be set out as per
needs so that workplace performance can be advanced. In order to have effective employee
relation the TUI is continuously having collective meetings and gathering (Newman and
Newman,2017.) It allows to have better interaction among employer and employees. With an
assistance of this, employee needs can be identified in order to lead business to impressive level
of success.
It has been witnessed that service sector employee relation is critical aspect because it
impacts directly on the performance. Service quality can affected if employee relation within
firm is not appropriate. By having a consideration of diverse measures like employee
discrimination act and wages act the business firm is effectively maintaining the employee
relation (Wrosch, Jobin and Scheier, 2017)
2.2 Employment law affects the management of human resources
Employment laws affects the management of human resources a lot whether it will be a service
sector or industrial sector. Various employment laws are governed under this whether it will be
workmen compensation act, Industrial dispute act, Maternity benefits act and so on. These acts
affected the business directly or indirectly and also provide various benefit regarding
employment (Newman and Newman, 2017)Every business and organisation have its own rules
and regulations and every person have to follow while working, otherwise he will be held liable
for actions and penalties according to that act in case of default found. Various employment laws

are Involving various benefits and it provided to person who worked according to employment
laws. Such as in case of dispute arising in industry employer and employee, the dispute regarding
to it will be solved down with the help of Industrial dispute acts, similarly overtime work rules
(Huebner, 2017.) Although, attendance and late coming rule and diff acts provided various
different benefits either it would be factory act, state insurance act etc. People have to work
accordingly that and rules will be the same for everyone and everybody because everyone would
be equal under the eyes of laws. These laws not only mentioned the benefits, characteristics only
but it also involves imprisonment or penalty both that will be different and can be measured how
severe the default is. Each topic covers its own action. Similarly, person who entered into the
organisation have to follow all such rules which made by organisation and have to follow the
conduct properly that only lead to an ethical acts (Drewelies,Wagner, Tesch-Römer, Heckhausen
and Gerstorf, 2017)Unethical causes the loss and would involve the risk. Similarly, business
conducted in society have to follow the norms and have to work according to the principles that
set otherwise the activities would effect and the situation regarding closing of business occurred.
Every person who works have its own rights, duties and responsibilities and in case of non-
fulfilling such conditions may held liable for strict actions. Industrial and labour law is a subject
that covers various employment laws and to understand that person have to go through it
carefully and in case of any compliance. Moreover, due diligence arise it that can be solved
through the company secretary. Similarly, if employment laws are followed by a person the
reward is been provided to him. As we say that Employment law is one of the most important
law in terms of business context without that it is impossible for the business to sustain (Payne
and Isaacs, 2017)Union labour law regulates the relationship between workers, Employer and
trade .Employee that work in UK are benefitted from minimum charter of employment right
Wage Act include right to minimum wage .working Time regulation provide individual right to
work 28days and get paid holiday ,break from work. This act attempt to limit the excessively
long working hours. Employee right act give individual a right to leave job for care and right to
demand flexible working hours.Pension act right to be enrolled in basic occupational
Pension .Equality Act states that people working in organisation should be treated equally at
work.

TASK 3
3.1 Job Description and Person specifications
Title HUMAN RESOURCE
CLASSIFICATION Thomson Tour operator
DIVISION
Travel Agency
RESPONSIBILITIES 1.Identifying vacancy in
organisation.
2. Giving Advertisement about
vacancies.
3. Conducting interviews and
test in order to judge candidate
4.Recruiting and selecting
skilled and talented candidates
by using various methods.
4.Arranging process on
boarding process for new
workers and fulfilling
requirement of various
documents.
4.Maintaining data and records
related to each and every
employee that include salary
detail, attendance, leaves,
policies etc.
4. Processing pay roll via third
party.
5. Formulating various policies

and procedures related to
workforce.
6.Active in various meetings
regarding appointment or
termination of employee.
7.Tracking and reviewing staff
performance.
8. Providing guidance and
feedback to workers regarding
their method of working.
9. Conducting various training
and development programmes
in order to support employees
in improving their
performance.
10. Organising various
motivational and Cultural
activities.
11 Identifying and solving
various problems that are
being faced by employees at
workplace.
12 Dealing with legal human
resource related issues.
Qualification The candidate should have
depth knowledge about the
field, multi tasker, should
posse effective communication
and managing skills, should
have qualified bachelors and

management degree,
knowledge about all legal rules
and regulation related to
labour laws and at least should
have minimum 2 years of
working experience relevant to
field.
HOW to apply Kindly submit cover letter,
Resume, and salary
expectation. Interested
candidate can apply through
our website
www.thomson.co.uk. Only the
selected candidate will be
contacted.
Performance Evaluation method
There are various methods that can be used by Thomson Tour operator in order to
evaluate the performance of employees. These methods are self-evaluation method, 360-degree
evaluation, graphic scale, checklist and critical incident method. 360 Degree evaluation and
graphic scale method can be adopted by Thomson tour operator in order to evaluate performance
of employees. The graphic scale method is very effective technique for measuring performance
in service industry. In this method employee’s performance in various field of job duties is
graded on scale. The value in a graphic scale enables manger to compare performance of several
employees simultaneously. (Boxall and Purcell, 2011) The scale consists of various grade from
poor to excellent. 360 degree evaluation is another effective technique that can be used by
Thomson tour operator in order to measure performance of workers. This involve human
resource manager in other departments to ensure that individual works on regular basis. In this
technique workers performance is measured on the basis of effectiveness of employees within
their own department based on job description.

3.2 Comparing the selection process of two different service industry
The two companies that are selected for making comparison in their selection process is
Thomson and Hilton hotel. Thomson tour operator is travel agency dealing in tourism products
and services while other is retail industry
There are several organisations in the world that are dealing in service industries such as
hotel industry, restaurant industry, tourism industry etc. Among all the industries tour and travel
industries are contributing a lot towards economic development and generating employment in
UK. Various services that are being provided by tourism industry include holiday packages,
accommodation, food beverages, travel packages, on line booking services etc. In tourism
industry selection of candidate is based on various skills possessed by them such as
communication skills, management skills, multitasking skills, customer service skills and
marketing skills. Management, marketing and customer handling capabilities are judged while
selecting candidate in Tourism industry (Currie, Finn and Martin, 2010) On the other hand
personality, management and communication are the three skills that are judged by human
resource manager in retail company.
Various selection techniques used by tour operator company are selection test, integrity
test, behavioural test, structural and non-structure interview etc. On the other hand, retail sector
firm includes preliminary screening and telephonic interview etc.
In tour and travel industry they prefer to recruit and select fresh talent i.e. external mode
of recruitment is used. On the other hand, retail industry believes in internal recruitment (Chang,
Gong and Shum, 2011)
TASK 4
4.1 Training and development function in Thomson tour operator company
Once the candidate is selected for job, individual needs to undergo probation period of
three months that include one-month training period. Training is organised by Human resource
manager in organisation. Training is provided by senior employee that is schedule for two hours
every day. During the training period person will be judged on the basis of his ability to perform
task. After completion of training period workers' performance would be measured by personal
manger and team leader in order to make decision regarding retention of worker. On the basis of
performance and overall behaviour of employees they are adviced to join further training