Human Resource Management in Service Sector: TUI Group Analysis Report

This report examines human resource management (HRM) within TUI Group, a prominent UK-based travel and tourism company. The introduction highlights the importance of HRM in enhancing employee efficiency and overall business success. Task 1 delves into the significance of HRM, analyzing its roles and purposes, and outlines a human resource plan based on supply and demand analysis. Task 2 investigates current employment relations within the service sector, specifically addressing the effects of various employment laws on HRM. Task 3 focuses on identifying job titles, providing job descriptions, and outlining person specifications, along with a comparison of recruitment and selection processes between TUI Group and Travelodge. Finally, Task 4 assesses the training and development functions, evaluating their contribution to effective business operations. The report concludes with a summary of the key findings and recommendations for TUI Group's HRM practices.

Human Resource Management In Service Sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Importance of human resource management and analysis of their role and purpose.......1
1.2 Human resource plan based on the analysis of supply and demand of TUI Group.........2
TASK 2............................................................................................................................................4
2.1 Current state of employment relation within the service sector perspective....................4
2.2 Effect of various employment laws on management of human resources of service sectors
................................................................................................................................................5
TASK 3............................................................................................................................................6
3.1 Identification of job title, discussion of its job description and person specifications.....6
3.2 Comparison of recruitment and selection process of TUI Group with Travel lodge.......8
TASK 4............................................................................................................................................9
4.1 Examination of training and development functions and assessment of contribution of
training and development activities to the effective operations of business..........................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Human resource management refers to a process of managing man power of the
company. Human resource management performs their task to enhance the efficiency of its
employees. The report will evaluate importance of HRM in TUI Group is a UK based travel and
tourism company. This groups have six European airlines, and nine tour operators. This study
will include an explanation of human resource management along with analysis of their role and
purpose in the company. It will provide a justification of human resource plan based on analysis
of supply and demand. Study will investigate the current state of employment relations in service
sector and will provide a discussion of various employment laws effecting human resources in
UK. Assignment will define job title and job description and person specification along with
different selection process of tour and travel business and a comparison of it with another service
business.
TASK 1
1.1 Importance of human resource management and analysis of their role and purpose
Human resource management is one of the major factors effecting the success of any
business. Human resource manager of TUI Group works to increase the efficiency of the
employees working in the business.
Importance of human resource management
 The human resource manager performs their task with a main objective of motivating its
staff of the company. Itis very important for TUI Group for motivating its employees to
increase individual efficiency to handle their customers properly.
 Human resource manager of TUI Group also gives reward to its employees on the basis
of their performance. It is important for the HRM of the company to develop the skills of
its employees in order to boost working ability and interest of staff members.
 The HR manager makes a daily communication with employees which helps in
determining needs of workers in the company against their job.
 TUI Group's human resource manager is important as it works to provide an efficient job
satisfaction to its employees. This helps in enhancing the capacity of employees and
increasing their interest in the company (Armstrong. and Taylor, 2014).
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 Human resource manager of TUI Group performs his work with both pro activeness and
responsiveness which helps the company to be cost effective and increase the efficiency
of the work of business. HRM is important as it focuses on increasing the skill and knowledge of the employees
by organising regular trading and development for employees which is essential for both
employees and company in order to make an efficient future growth.
Purpose of human resource management The human resource management is required by the company for managing its resources
properly to enable coordination with the motive of and maintaining efficiency in work of
staff members to attain business objectives and goals. Also, HRM of TUI Group focuses
on fulfilling staffing needs to serve job satisfaction to its employees.
Role of human resource management
Role of human resource manager for Tour and travel companies, is based on following
factors:
 Individual development: Human resource manager role is to improve working of each
individuals in the organisation. It is one of the major roles of HRM. As it leads to develop
an efficient future of company as a whole as well as each employee of the company.
 Training to employees: HRM of TUI Group is responsible for conducting training
programs for all the employees whether they are new or already in working in order to
enhance their skill and knowledge for tour and travelling work (Beardwell. and
Thompson, 2014).
 Right recruitment and right place and right time: One of the major roles of human
resource manager recruit capable and skilled employees according to industry, business
and job role.
1.2 Human resource plan based on the analysis of supply and demand of TUI Group
Human resource plan is prepared by the human resource manager of TUI Group with the
aim to make analysis of requirements of different level of human resources in the company in the
future. Justification of human resource plan of TUI Group on the basis of its demand and supply
can be explained as follows:
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 Identification of vacant position in the company: First and foremost, step of HRM in
company is to identify the position which is vacant in the company or any position where
more employees are required to perform the task more efficiently. (Brewster. and
Hegewisch, 2017). Identification of skills and quality required: After identifying the vacant position in
the company, human resource manager needs to identify what qualification is being
needed by the candidate to perform the tasks of the position more effectively. Manager
needs to shortlist all the essential and desirable requirements of the candidate in order to
perform recruitment and selection process. Resourcing strategies: after identifying the requirements and qualifications as well,
human resource manager needs to recruit the right person for the job. This task can be
performed by the manager through its internal sources by using promotional strategies in
the company. Or through recruiting fresh employees in the company by external sources
(Brewster, 2016). Forecasting demand and supply human resource manager needs to identify demand and
supply of the products and services of the company in order to identify actual need of
number of employees in the company and performing recruitment process accordingly. Recruiting and selecting suitable candidates after identifying actual need of employees
in the company, their qualifications, desirable skills, etc. human resource manager needs
to perform recruitment and selection process in the company for the purpose of recruiting
right candidate at right position.
 Monitoring and evaluation just recruiting right candidate is not the only task of human
resource manager. However, the manger also needs to monitor performance all the
resources recruited by him for analysing and evaluating whether their decision of
selecting the employees is correct or not. Or whether any employee needs any training
program in order to gain knowledge about the task performed by him.
Hence, if TUI Group prepares human resource plan on the basis of its demand and supply, it can
help it in designing a better strategy for the company.
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TASK 2
2.1 Current state of employment relation within the service sector perspective
Having an employee relationship management in the organisation is an important
responsibility of the HRM. Maintaining a healthy relation with the employees results in
encouraging, motivating and increase interest within the organisation of employees. It defines the
solution to the problems of employees which is faced by him during his employment.
Employee relationship in TUI Group aim at maintaining healthy communication channel
between employer and employee of the organisation. This leads to reduction in the problems
faced by the employees during employment. And in case any problem arises, employee can
communicate it with employer and can find the best solution for that (Chelladurai. and Kerwin,
2017). Employee relation management of TUI Group deals with following factors with regard to
service sector perspective:
 Transparent communication policy within the organisation.
 Encouraging group activities in the organisation.
 Balancing individual needs and organisational needs. For example, converting
organisational objective of TUI of attracting maximum customers towards the company
into employee's individual objective by providing them individual target of attending
minimum customers in a set period of time.
 Motivate the employees by organising training session and offering extra benefits like
rewards and compensation
 Making efficient rules and regulations regarding daily work routine of the employees. For
example, HR manager of TUI group enables work life balance practice for employee
which helps in attaining job satisfaction and increased productivity of business.
 Creating employment contract for developing trust and creating mutual bong between
employer and employee with regard to travel and tourism services.
As TUI Group is a service providing company, employee relationship is an important task
for the company in order to maintain the efficiency of its worker to provide satisfactory
results to customers by them. For this purpose, the manager needs to deal with employee
motivation, enhancement of productivity and employees effective job satisfaction. HR
manager of company focuses on maintaining a discipline within the workplace by making the
employees concern about their working time, aware them about rules, regulations and culture
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of the company in order to develop a healthy culture in the organisation. This helps in in
creation of healthy culture and values in the organisation to get higher level of efficiency in
the work of employees which is directly related to customers.
2.2 Effect of various employment laws on management of human resources of service sectors
Employment law and labour law has impact on the management of human resources in
TUI group. Like for example HR managers of company are involved in protecting the workers
against discrimination. This is done by them by understanding the discrimination law and putting
policies into place to avoid discrimination. If further discrimination occurs in the firm despite
workplace policies against it, firm is engaged in quickly addressing individual issues,
compensate employees, and discipline managers who discriminate.
The Human Rights Act 1998 focuses that organisation is not engaged to act in a way
which is inappropriate activities like exploitation of employees of firm. So, company follows it
by making laws, policies and rules according to it. They focus that every individual in the
organisation is been given with equal right to speak and is treated with honesty and fairly.
Occupational health and safety Act 1974 have also been adhered by the company. They
focus on employees work place health and safety. By providing workers with safe and secure
working conditions TUI group is engaged in efficiently managing human resource by giving
workers to work in a non-hazardous place. These laws have been framed by the legislatures of
the country in order to protect the human rights of the population of country.
National minimum wages act 1998 focuses on creating a minimum wage across the
region. TUI group is engaged in following it. Like for example they are involved in giving equal
pay to the employees working at the same level. It automatically influences the efficiency of the
organisation as a whole.
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TASK 3
3.1 Identification of job title, discussion of its job description and person specifications
For the purpose of recruitment in TUI Group, job title, job description and person
specifications as per the need of company are as under:
Name of company – TUI Group
Job title –
Job Title: Customer service executive.
Reports to CEO of TUI Group
Job overview: The selected candidate will have to make a good and positive contact with all
clients, listen their problems and provide them the best solution for their problems after listen
them completely and carefully.
Responsibilities and duties Helping customers in booking, checking availability status and
giving proper response to customers, handle customers efficiently, understand complaints and
needs of customers and provide them full satisfaction.
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Illustration 1: Human resource management plan
(Source: Sparrow and et.al, 2016)

Qualification completed MBA from authorised university
For performing above job description, a person needs to have the following personal skills
and specifications:
Attributes Item Relevant Criteria
Essent
ial/
Desira
ble
1 Skills &
Abilities
1.1
1.2
1.3
1.4
 Person applied must have skills to make a good relationship
with customers.
 Helpful to all kind of customers.
 Ability to handle complex situations with patience.
 Remarkable presentation skills (Job description and personal
specifications, 2013).

Essenti
al
2
General &
Specialist
Knowledge
2.1
2.2
2.3
 Remarkable administrative knowledge.
 Ability to understand client's requirement and efficiently
satisfy them.
 Familiar with advance software.
Essenti
al
3 Education &
Training
3.1
3.2
 Completed MBA
 Training for good communication skills.
 Training about Managing customer's complaints regarding
loss of luggage or any complaint regarding services provided
by the company. (Sparrow, 2016).
 Training for Helping customers in booking, checking
availability status and giving proper response to customers.
Desirab
le
4 Relevant
Experience
4.1  0-3 years Desirab
le
5 Special
Requirements
5.1
5.2
 excellent communication skills.
 Patience to handle customers.
 Managing calls of customers and listen them properly and
give them complete satisfaction.
Essenti
al
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Person interested in the job details and having at least essential personal specifications can apply
for the job in TUI Group.
3.2 Comparison of recruitment and selection process of TUI Group with Travel lodge
Comparison of recruitment of TUI Group and Travel lodge
Basis TUI Group Travel lodge
Method of recruiting TUI Group uses online
recruitment process for
recruiting the suitable
candidate for the job profile
Travel lodge recruits the
candidates through giving job
advertisement in various
newspapers, social media sites,
etc.
Recruitment process TUI Group recruits’ candidates
through administrating an
online pre-employment test.
Travel lodge takes video
interviews of candidates for
performing recruitment
process for specific job.
Comparison of selection process of TUI Group and Travel lodge
Basis TUI Group Travel lodge
Method of
interview
TUI uses face to face interview
method.
Travel lodge used group interview method
for selecting the best candidtate.
Interviews Being a travel and tourism service
provider company, HRM manager
of firm asks candidates to act the job
role and give them complex
situations the person who performs
the best for solving the situation, is
selected in this process.
For taking interview, Travel lodge checks
stress level of interview and takes job related
interview. Candidate who performs best is
being selected in this process (Marchington,
2016).
Personality
profiling
TUI Group ask candidates to present
himself in front of whole penal with
a view to know individual ability of
Travel lodge creates a complex situation
according to service industry and ask them
to present themselves for solving the
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managing customers in different
situation of service industry (Testing
and Selection, 2015).
situation to know their patience level.
Test TUI Group takes written test of
candidates to test knowledge of
employees.
Tour lodge takes some tests in order to
check whether candidate has ability to face
complex situations or not. For example,
situation test in which interviewer provides
some situations to the candidate and ask him
to suggest some solution for the same.
In this way both the service provider companies follow different selection process with a view to
recruit the best candidate in the company.
TASK 4
4.1 Examination of training and development functions and assessment of contribution of
training and development activities to the effective operations of business.
Training and development programs need to be performed by TUI Group, as it results in
improvement of skills and knowledge of the human resources. This helps in gaining higher level
of efficiency in work in the organisation as a whole. This program helps the employees to update
their knowledge which helps the company to have latest skill in the organisation without having
new recruitments.
Training and development are key HRM function which contributes in improvement and
enhancement of knowledge of employee with regard to changing dynamics of industry. T&D
contribute in managing effectiveness in operation of business in following ways:
 Productivity: Training and development program are focused on improving employee’s
productivity at personal level. In this focus of experts is on providing them knowledge
about the latest trends of service industry which depicts the need of improvement.
Involvement of workers in T&D session helps in boosting individual abilities to perform
their job effectively which helps them in enhancing their capacity at individual level and
increase their efficiency of work which results in enhancing the work efficiency of
organisation as a whole. The session is organised to contribute in learning and knowledge
of staff members.
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 Profitability: Increased efficiency of employee’s skills results in reduction of cost which
automatically leads for the TUI Group in enhancement of profitability of the business
organisation.
 Organisational culture: Trained and developed employee establishes a healthy
environment within the organisation and also helps in developing values in the
organisation. T&D session in TUI Group contributes to positive and shared work culture
which helps in creating healthy and learning work culture within the organisation (Storey,
2014).
 Team spirit: During training and development program, trainers also provide training
about working in a team by giving them knowledge about rules of working in team,
advantages of team, etc. when the workers start working in a team, it enables the
company to enhance its efficiency and profitability as well.
In this way it can be said that training and development program plays a vital role in effectively
performing the business operations by the company.
CONCLUSION
From the above study it can be concluded that the HRM of the TUI Group has play a vital
role in achieving organisational objectives of the company. The company has made its human
resource plan taking into consideration, its demand and supply it helped the company in avoiding
scarcity or excess of the employees in the organisation. Company has adopted the best
recruitment process for recruiting right employee at right place. Further, it has been identified
that TUI Group has conducts training and development program for all employees in order give
the newly recruited employees knowledge about the organisational culture and give them
training about their jobs and to update the knowledge of existing employees to enhance their skill
and knowledge.
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