Human Resource Management in Service Sector: A Thomas Cook Analysis

This report provides a comprehensive overview of Human Resource Management (HRM) within the service sector, using Thomas Cook Retail Ltd as a case study. The report begins with an introduction to the company and its operations, followed by an exploration of the core purpose and roles of HRM, including manpower planning, performance monitoring, and employee motivation. The report then delves into HR planning, focusing on demand and supply forecasting, and the importance of matching these elements to ensure effective staffing. The evaluation of existing employee relations, including the impact of employment law, is also examined. Furthermore, the report analyzes job descriptions, person specifications, and the selection processes within the service industry. Finally, the contribution of training and development to effective operations is discussed. The report concludes with a summary of key findings and insights into the effective implementation of HRM practices within the service sector.

Human Resource
Management in Service
Sector

Table of Contents
Introduction to business........................................................................................................................3
INTRODUCTION.....................................................................................................................................4
TASK 1 ...................................................................................................................................................4
1.1Purpose and role of Human Resource Management...................................................................4
1.2 HR plan based on identification of supply and demand .............................................................5
TASK 2 ...................................................................................................................................................6
2.1 Evaluation of existing state of employ relations.........................................................................6
2.2 Influence of employment law on Human Resource Management..............................................7
TASK 3....................................................................................................................................................8
3.1 Job description & person specification.......................................................................................8
3.2 Comparison of selection process of different service industry..................................................9
TASK 4 .................................................................................................................................................10
4.1 Contribution of training & development in effective operations .............................................10
CONCLUSION.......................................................................................................................................11
REFERENCES ........................................................................................................................................13

Introduction to business
Thomas cook retail ltd. Is a company which deals in travel and tourism sector. It is
owned by Thomas Cook Group and works as a travel agent. The headquarters of the is
located in Cambridgeshire, Peterborough, England, UK. Its branches are operating
throughout United Kingdom and around 19,000 employees work in it. It is a type of joint
venture. The company reached an agreement in 2010 with Co-operative group in order to
combine its network with Cooperative travel. In 2011, competition commission approved the
merger and the venture is owned 30% by Co-operative group and 70% by Thomas Cook
Group. Apart from this, the also offers some other services includes leisure travel, foreign
exchange, passport and visa services, insurance, MICE, corporate travel and e-business.

INTRODUCTION
Human Resource Management is a process design to hire and develop employees in
order to make them valuable assets of the company. It is the process by which people in the
organisation are managed in a systematic manner. It is the essential function for every
organisation. Without HR department, the firm cannot manage its operations smoothly and
successfully. HRM emphasizes on management of employees, system and policies. The
chosen company, Thomas Cook deals in travel and tourism. The company is located in UK
and administer its services worldwide. The present assignment helps in understanding the
purpose and roles of Human Resource Management. The modern business environment
requires healthy relationship between employer and employee (Armstrong and Taylor, 2014).
This assignment focuses on relationship with employees which is essential for the success of
the business entity. Apart from this the report also includes employment laws that influence
Human Resource Management. Concepts of selection process and job description is also
defined in the present assignment.
TASK 1
1.1Purpose and role of Human Resource Management
Human resource management is a process design to manage the requirements of
manpower in the firm as well as enhancing the level of performance of the employees or
workforce. It includes different kinds of activities which helps in recruitment, selection,
management, training and development etc. so that the goals and objectives of Thomas Cook
Airlines can be achieved. The main aim of HRM is to hire the skilled and knowledgeable
staff and it lower down the need of external recruitment as it makes proper utilization of
present staff members in the organisation. Its role is not only maintaining and manage current
employees but also plans for uncertain changes that will influence future manpower
requirements (Berman and et. al., 2012). Basically, it is a cost efficient method for every
organisation to manage and maintain its staff members. In Thomas Cook, Human Resource
Management assists in selecting and hiring the right individual for right designation at right
time due to dynamic environment of service firm which cannot be predicted. Human
Resource Management is concerned with development of knowledge, performance and skills
of workers so that operations of the firm can be performed efficiently. Purposes and role of
HRM are as follows-

Analyse manpower requirements: In Thomas cook, it is the responsibility of managers to
determine and anticipate the requirements of manpower. After that, manager use some
methods such as recruitment & selection to meet the requirements of employees which will
assist in selecting and hiring skilled candidates for filling the vacant position in the company.
Monitor performance of employees: The manager should have monitor the performance
of existing manpower in Thomas Cook. HR manager aware the staff members about the goals
& objectives of the firm. If the performance of the employees is not up to the mark, then he
finds out the solution (Boella and Goss-Turner, 2013).
Identify training needs of employees: After analyse the performance of employees, if the
outcomes do not match the standard then human resource manager needs to determine the
required training needs in order to enhance the performance of employees. Manager conducts
training & development program for this to improve the productivity of employees.
Employee’s motivation program: Motivation level of employees highly influence their
performance. For this, managers of Thomas cook organise different activities or programmes
to motivate workforce towards the objectives of the firm.
Employee’s welfare: Managers of Thomas cook needs to ensure that the environment for
employees as well as customers is safe. By providing proper facilities and services, the needs
of the employees can be satisfied.
1.2 HR plan based on identification of supply and demand
Planning is a continuous process which assists in identifying the current and future
needs of manpower in Thomas cook. The plans help the firm in taking competitive advantage
and in reducing the turnover ratio of employees. Changes in external and internal
environmental factors affects in making effective planning (Boselie, 2010). Human Resource
planning includes the following-
Determine human resource: In Thomas cook, the process of assessment starts with
environmental analysis. It consists of both external and internal factors which affects the
firm. For this, the approaches like PESTLE and SWOT analysis is used. Strengths and
weaknesses of an organisation can be identified with the help of these analysis. The manager
of Thomas cook should have to identify the level of performance of employees in order to
determine the productivity of the firm. The performance of the workers directly influences
the productivity of the firm.

Anticipating demand: It includes the process of identifying the demands of
manpower in Thomas cook. It analyses the future needs of workforce in respect to work
quality as well as quantity. The main aim of demand forecasting is to meet human resource
requirements of future to accomplish desired output.
Supply forecasting: The process includes estimation of supply of manpower. It
evaluates the future sources of human resource present inside and outside the firm (Boxall
and Purcell, 2011). The internal sources consist of promotion, transfer, enrichment and job
rotation and external sources involves process of recruitment by which the candidates with
skills and abilities are hired in Thomas cook.
Matching demand & supply: This step of planning includes the process of matching
to bring both supply and demand in in balance. Manager needs to maintain equilibrium
between them so that the problems like over staffing and shortage will be resolved. The firm
has to hire in case of shortage and reduce employment in case of over staffing.
Action plan: It is the last stage of HR planning process. It emphasizes on the surplus
and shortage of manpower in Thomas cook. In this phase, the plan is implemented with the
assistance of different HR activities. For the execution of plan, some activities are required
like recruitment, selection, training, development, placement, motivation and socialization.
The plan is followed by performance assessment of Human resource to audit that whether the
plan match with objectives and policies of HR (Daley, 2012). as per the situations and
changes, the design should be restructured in future.
TASK 2
2.1 Evaluation of existing state of employ relations
It is an essential area where procedures and processes of work of employee are done
in arbitration of management of relationship as well. Through leadership and motivation, an
effective relationship between employer & employee can be maintained. Healthy employee
relationship helps in dealing with conflicts & finding solutions of issues that takes place in an
organisation.
In Thomas cook, working practices is identified from employee relation. In the
consolidation of ER, an optimal relationship has been demonstrated in assertive ways.
Making an effective difference between statutory and contractual right must be important. It
involves some aspects like work time regulations, imposing contractual and statutory
employment right, discrimination at work, termination of employment contract etc.

In regards to employee relation, the present state has been analysed with the shortage
of good relationships & its enforcement in service industry. Thomas cook is a travel and
tourism organisation where maintaining relationship with customers and administering
services to them occupies a significant place. This is due to various aspects at Thomas cook
such as motivating, dealing, influencing and administering best services to the clients are the
responsibility of employees (Gospel and Sako, 2010). The most important part is that
primarily everything depends upon making and maintain good relationships among employer
and employee.
Besides the crisis on employee relation in tourism industry, good state of employee
relationship has been noticed at Thomas cook. The success of the firm shows how effectively
norms of the company supporting the practices of employment.
Different strategies can be adopted for executing good relationship between employer
& employee at Thomas cook. Participation of staff in organisational activities is one of them
where a chance should be given to the workforce to share their opinions. A chance must give
to them to involve in the decision making process. Engagement of staff can be increased by
providing them chance to involve and participate in the activities or events of an organisation.
By collective bargaining concept, the need to develop trade union is identified which
represents the interest of workforce. This helps the company in assessment of whole
workplace surroundings as well as clients. In this manner, the company become successful in
maintaining and developing healthy relationships with employees.
2.2 Influence of employment law on Human Resource Management
Law refers to design in which set of directions that figure out the execution of
activities in the firm. In every enterprise, formulating and executing HR policies are the main
objectives as a part of human resource department (Heizer, 2016). The laws are imposed by
government of UK and with the support of firms these are putting into practice. Some of the
laws are-
 National minimum wage act, 1998
 Equality act
 Working time regulation act, 1998
 Equal opportunity act
 Family and medical leave act, etc.

In Thomas cook, employees work to do all the operations and act as catalyst in the
firm. It is fact that, engagement of workforce in performance management helps in driving
high productivity of the company. Take up with employment law prevalent at UK safeguards
the interest of staff members and ensures their progress. Initiation of wage and salary act
ensures that minimum amount of wages are provided to employees. Working time regulation
act ensures that with the completion of hours of working, 28 days’ salary will be paid to the
employees (Hoque, 2013). Leave framework of workforce is influenced by FMLA act. As per
this act, it is necessary for Human Resource department to give proper and sufficient leaves
to their workforce.
In service area, way of working and human resource policies are influenced by equal
opportunity act and ensures that equal opportunities are given to every employee without nay
discrimination at workplace. It is determined that employer employee relationship is directly
affected by laws of service sector. The company, Thomas cook required to follow equality act
so that discrimination on the basis of age, sex, religion, culture, beliefs etc. among employees
will be avoided. Access to equal employment opportunities should be given to them.
In this respect, it is necessary for HR manager to follow all the laws and regulations
related to employment, so that operations are perform legally. Regulations and laws
formulated by the government of UK also assists service sector to minimalize their liability in
relevance to HR operations. The manager of Thomas cook will be able to resolve the
problems of employees in an efficient manner by the execution of these regulations.
TASK 3
3.1 Job description & person specification
Job description includes detailed description of job, all the roles and responsibilities
that are related to the work of an employee (Jiang and et. al., 2012).
Person specification means personal skills, abilities, qualities and attributes of an
individual for a specific job so as to perform tasks and achieve objectives of an organisation
in an effective way. A particular job requires work performance quality that is expected from
an individual with respect to some set regulations.
Job description and person specification of HR Trainee in Thomas cook are defined below-
 Job title: HR Trainee
 Job location: UK

 Working hours: 8
 Reporting to: Senior HR manager and assistant manager
 Job summary: HR trainee is responsible to handle various functions of job that are
assigned to the individual in an effective manner. A trainee has to work hard in order
to ensure that all the functions are performed smoothly as well as maintain good
relationship between employer and employee (Marchington and et. al., 2016). They
also help their senior managers in formulating and executing various processes.
Personal specification
 Education: MBA in Human Resource Department
 Language: Good command in English and French
 Prior experience: 0 year
 Communication: Good verbal and oral communication
 Duties and skills: Willingness and ability to work hard
 Characteristics: Individual must be supportive and friendly in nature
Job responsibilities of HR trainee
 Recruit and select potential candidates (Mok and et. al., 2013).
 Conduct induction programme of new employees.
 Meeting with representatives of department to discuss human resource issues.
 Assisting with the formulation and implementation of human resource policies.
 Communicate problems to senior human resource staff.
 Synchronising prospective applicants, interviewing them & give offers.
 Maintaining data of employees.
3.2 Comparison of selection process of different service industry
The process of recruitment and selection varies from company to company.
Recruitment of trainee in travel and tourism sector and hospitality industry is different (Purce,
2014).
Selection process of travel and tourism industry: -

Screening test: Training centre is established by Thomas cook for the selection of
employees. In UK, travel and tourism industry takes those candidates who are fresher.
Further, the firm takes aptitude test in order to measure the analytical skills of the candidate.
On the basis of result, applicants are selected by Thomas cook for training of human resource
assistant.
Training: In this, Thomas cook conduct training programme and provide training to
the selected candidates. The organisation administers various information, skills and
knowledge with the help of professionals, which is required to become a good manager. They
learn various things such as proper way to deal with customers so as to fulfil the requirements
and needs of customers. Apart from this, they also emphasize on other skills, such as,
problem solving, coordinating, communication as well as decision making skills for the
candidate for further enhancement in Thomas cook (Nickson, 2013).
Interview: Final interview of the candidate is conducted by the organisation to check
the skills. For identifying the level of knowledge of applicants, various questions related to
human resource is asked by the interviewer. They also evaluate problem solving and decision
making skills. On the basis of results, if the candidate is select, job is offered to him and if
rejected, then they don’t get the job.
Selection process of hospitality industry-:
The industry focuses on selecting candidates by the way of conducting aptitude test.
The firm rely on fresher candidates for the post of HR trainee. They check aptitude, general
knowledge and logical skills of the individual. A group discussion session is conducted after
passing aptitude test round. Here, a topic related to human resource management is given to
the candidates to be discussed. It supports in identifying confidence level and communication
skills of applicant. After that, final interview is taken by HOD and if they passed the same,
the candidate will have selected.
TASK 4
4.1 Contribution of training & development in effective operations
Training is a planned activity which is conducted to impart knowledge as well as
skills in order to enhance the overall performance of workforce. Development is defined as
the process of using technical and scientific knowledge in order to meet particular objectives.
In order to perform all the business activities in efficient way, proper evaluation of training
and development is needed (Sparrow and et. al., 2016). Adequate link between induction and

training program should be set up by HR manager for the execution of development and
training program. Without setting proper link, Thomas cook would not be able to administer
effective training to its employees and improve their skills as well as performance level.
Organisation needs to provide proper training to its employees due to following reasons-
Performance improvement: Training is necessary in order to improve the
performance of the employees as well as organisation. It is beneficial for both as it enhances
the skills and abilities of the employees which in turn increase competency and profitability
of the firm. In Thomas cook, effective training and development program should be
formulated by the management so that it can provide overall development to the firm as well
as its employees.
Increase satisfaction level: It is necessary for every organisation to increase the
satisfaction level of employees. For this, the human resource managers should have to
interact with the workforce continuously so that they are able to identify the issues and
problems of workforce and provide them appropriate solution for their issues. By this, the
employees stay motivated and work in efficient manner towards the achievement of goals and
objectives.
Increase productivity: In Thomas cook, if the employees are provided with proper
training, they are able to work independently and efficiently. This method highly influences
the performance and productivity of the firm. By providing training and development to the
workforce, an organisation develops learning culture at workplace. The main motive of this
program is to increase the skills and abilities of employees in order to achieve higher
productivity of the firm.
In this way, training and development activities help the firm to run its operations
effectively. So, it is necessary for every firm to properly identify the needs of training at
workplace and provide appropriate training to its employees so that, the employees stay
motivated and engaged in the operations of the Thomas cook. It helps the company in
achieving higher productivity and profitability.
CONCLUSION
As per the above mention report, it has been concluded that Human Resource
Management plays an important role in the organisation. It focuses on managing human
resource requirements of the firm, recruiting and hiring of employees and providing training
to them in order to enhance productivity. Human resource plan is developed in order to

identify the supply and demand of service. It is the duty of HR manager to maintain healthy
relations among employer and employee and the employment laws framed by the government
helps in them. Along with this, job description and person specification defines roles and
responsibilities and skills & qualities of the prospective candidate. Training and development
program helps the firm in performing operations effectively and increase the productivity as
well as profitability of the firm.
REFERENCES
Books and Journals