Human Resource Management in Service Sector: Thomson Tour Operator

This report delves into the realm of Human Resource Management (HRM) within the service sector, using Thomson Tour Operator as a focal point. The introduction highlights the increasing significance of HRM in a competitive environment, emphasizing the role of HR managers in attracting and retaining skilled employees. Task 1 explores the core functions of HRM, including planning, recruitment, training, employee relations, and performance management, within the context of the travel industry. It also contrasts soft and hard HRM approaches. Task 2 addresses the importance of developing human resource plans based on supply and demand analysis, including forecasting and audit processes. The report also details the strategic planning for HRM at national, sectoral, industry and unit levels. The report covers the current state of employee relations, employment law's impact, and provides examples of job descriptions, person specifications, and selection processes in the service industry. The final section focuses on the training and development functions within Thomson Tour Operator.

Human Resource Management in
Service Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1.2 Developing and justifying human resource plan based on analysis of supply and demand in
Thomson tour operator...........................................................................................................6
TASK 2............................................................................................................................................7
2.1 Current state if employee relation within sector...............................................................7
2.2 Employment law affects the management of human resources.......................................8
TASK 3............................................................................................................................................9
3.1 Job Description and Person specifications.......................................................................9
3.2 Comparing the selection process of two different service industry...............................12
TASK 4..........................................................................................................................................13
4.1 Training and development function in Thomson tour operator company......................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

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.
TASK 1
1. Significance of human resource management and analysing the role and purpose of Human resource
management in Thomson Tour operator
Human resource was earlier known as personal administration. The field was clearly defined in
US in 1920s which was largely concentrated to technical aspects such as, hiring, evaluating, training
and compensating employees. It was very much related to staff functions in the companies. However,
traditionally, the department had no focus on employee relations and employment practices. Hence, it
was assessed that personal administration was lacking in unified paradigm. Due to substantial
corporate pressure in 1970, an increase in requirement of strategic planning developed human resource
functions in the organizations.
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.).

Human resource management plays an important role in welfare of the company. The process
of recruitment and selection is the core process of HRM. It also ensures that interest of the employees
that are working in the organization are kept protected. Moreover, all the policies and procedures being
issued by the top-level management is followed at the workplace. An effective human resource
manager brings consistency in human resource practices and improves human relations in the
organisation. Personal manager assist business entity in dealing with various issues related to
compensation, business development, safety, wellness, benefit, worker motivation, training etc.
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. Recruitment-The role of human resource manager is to identify the need of recruitment and
analyse the appropriate source. There are mainly two sources of recruitment these are internal
and external. They have to plan advertisement in order to communicate candidates about the
job vacancy and conduct recruitment procedure.
3. 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.

4. 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.
5. 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 manager is to eliminate conflicts and employees dissatisfaction.
Figure 1Role of human resource management
(Source: Chelladurai and Kerwin, 2017)

Performance management Source: - The human resource manager plays significant role in maintain g
organisational al performance. Their role includes 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.).
6. Grievance and disciplinary: Another role that is played by personal manager is to understand
the grievances that the employees in the organization may have due from the top-level
management. It helps in keeping the personnel satisfied. Moreover, adequate amount of actions
are taken in such a manner that it can help in maintaining discipline at the workplace.
7. Adoption of Soft and Hard HRM Approach: In the soft HRM approach, through the employees
are considered to be the most important resource of the organization, but they are used cost
effectively. As per the personnel manager, it is necessary to utilize them in such a manner that
aims and objectives of the organization can be achieved. They are treated hard and aimed to
pay as low as possible. Moreover, they are strictly control in all the functions. However, as per
the Soft HRM skills of personnel manager, employees are considered to be valuable asset for
the company and hence, activities are adopted in such a manner that some activites can benefit
the employee as well.
Personal manager has many roles to plays in the organisation. They have very significant
responsibilities as they have to appoint candidates those who will assist business entity in achieving
their goals and objectives.
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 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 staffing requirement on demand side-

This process include designing and analysing the demand based on existing 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. The
conducting human resource audit include seven stages these are-
Determining the scope and type of audit:It includes the identifying the area for target. If in case
enterprise has never taking initiative to analyse its Human resource function that it is very essential for
auditing team to review all human resource practices.
Preparing questionnaire:This is required for facilitating comprehensive audit. In this stage the
questionnaire is prepared by audit team.
Collecting Data:In this stage the questionnaire method has been used by auditing team for collecting
data.
Bench marking the findings-This process helps in comparing actual outcome with the standard. It
includes the evaluating ration of total employees those who are HR professionals ,average of capital
invested on Human resource function in relation to sales and other costs.
Providing feedback- This is the next stage in which audit team provides suggestion to firm and provide
conclusion.
Designing tactics-This is the last stage where the manager in organisation required to formulate and
create tactics for facilitating changes that are being suggested by auditors.

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. ) (Definition)Internal recruitment is
defined as the procedure of assessing employee s in order to identify if any present worker posses
sufficient skill or qualification that are required to perform particular job or task. In internal
recruitment current worker working in a company may be reassigned to new position by providing
them internal transfer or promotion.
Human resource planning can take place at different levels such as:
National level- This type of planning personal manager to plan for educational facilities, training and
industrialist development as well in making employment plans. At national level governments make
plans related to human resource required in various industries. National
Plans for HR forecast the demand and supply of human resources at the national level. It
Also, plans for occupational distribution, sectoral and regional allocation of human resources.
Sectoral level- This sector support government to plan for particular sector such as tour and travel
industry. It helps the government to allocate its resources to the
Various sectors depending upon the priority accorded to the particular sector.
Industry level- It is more concerned with the output and operational level of tour and travel industry.
Unit level- This planning is dependent on the estimation of human resource requirement by particular
organisation. It is totally based on business plan of organisation. A manpower plan helps to avoid the
sudden disruption of the enterprise production since it indicates shortages of particular types of
personnel,
HRM planning for opening a new branch can be done in following manner:
Strategic
Objectives
Action to be
taken
Milestone Person in
charge
Target Date
To establish
policies and
procedure for
employment
regulations
Develop
reports, issue
letter
regarding
policies and
Handing over
the regulation
material to the
employees
HR personnel 01 January
2018

procedures
To employee
personnel that
are required to
carry out the
new branch
Recruitment
and selection
process, CV
shortlisting,
issuance of
offer letter
Joining of the
employees
HR personnel,
HR manager
25 January
2018
To increase
the employee
satisfaction
Feedbacks Increased
employee
retention and
motivational
level
HR personnel 25 February
2018
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 needed 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)
Role of trade union is to prevent the right of workers and supporting firm and as well
employees in maintaining healthy relationship with each other. AT the time of conflicts the functions
of trade union is to conduct negotiations in order to solve such disputes. The significant role of trade
union is to negotiate for wages, working term conditions. The other functions of trade union are
regulating relationship between employer and employees or workers, planning as well as implementing
collective actions in order to enforce the terms of collective bargaining, demanding for fair safe and
healthy working environment. They also support organisation and workers in reaching to the
conclusion during negotiation process.
2.2 Employment law affects the management of human resources
Employment laws affects the management of human resources a lot be it in the 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 affect the
business directly or indirectly and also provide various benefit regarding employment (Newman and
Newman, 2017)Every business organisation has its own rules and regulations and every one has to
follow while working, otherwise he will be held liable for actions and penalties according to that act in
case of default. Various employment laws provide various benefits and provided to people who work
according to employment laws. In case of a dispute arising Between industry employer and employee,
the dispute will be solved down with the help of Industrial dispute acts, similarly overtime work rules
(Huebner, 2017.) Although, attendance and lateness rule and diff acts provide various different benefits

in the factory act, state insurance act etc. People have to work accordingly and rules will be the same
for everybody because everyone would be equal under the eyes of laws. These laws not only
mentioned the benefits, characteristics but 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,
people who are employee in an organisation have to follow all such rules made by the organisation and
have to follow the conduct properly that only lead to an ethical acts (Drewelies,Wagner, Tesch-Römer,
Heckhausen and Gerstorf, 2017)Unethical behaviour causes loss and would involve 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 affect 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 be 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 them carefully, in case of
any compliance. Moreover, due diligence arises, it that can be solved through the company secretary.
Similarly, if employment laws are followed by a person the reward is 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)The different employment law that are
applicable in the service sector are as follows:
Equal pay Act 1970 and 1984-= This law states that employees working at same level of organisation
are to be provided with equal amount of salary.
Discrimination Act 19785 and 1986-This act states that Human resource manager ensure that each and
every employees are given equal opportunities. Employer should be fair when distributing work or
delegating authority.
Social security Act 1989-This act has been established by government in order to provide benefit to
employees. These legislations are applicable to the victims of industrial accidents, unemployment
insurance. It provides aid for dependent mothers, children, person with disability and physically
handicapped.
Trade union and Employment rights 1993- The trade union refers to the group of people that has
combined for achieving common goals. The objective of this union is to protect and promote the
interest of workers and raise their voice against unfair and discriminatory labour policy. The Act offers
the registration of trade union. This legislation defines the mode of trade union registration.

Employment Protection Act 1978-It regulates the various matters related to individual employment
terms and condition.
Disability law- This act disallow the discrimination against person with disability in any sectors or
industry. It provides individual a right to get employments in educational, housing or other public
industries. Under the law the legal authority provide various services to disable person such as
transportation, accommodation, telecommunication facilities etc.
TASK 3
3.1 Job Description and Person specifications
Title
HUMAN RESOURCE
CLASSIFICATION
Thomson Tour operator
DIVISION
Travel Agency
Job Title
Human resource manager
JOB description:
Personal manager are involved with recruitment, training, compensation, career development of
employees, compensation and benefits.Recruiting and selecting employees , communicating with
manager of other functional unit in order to identify the ways for improving employees performance.
Proving employees an opportunity for training and development. Administrating work, keeping
workers record, planning and implementing procedures, policies and strategies.
Salaries
Anywhere range between 25000 and $30000
Working days
Regular unsocial hours and Saturday is classed as a normal working day.
Skills required: