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The topic of the study is Human Resource Management in Hotel and Catering industry (A case study of Royal Palace Hotel Enugu). The researcher used both the primary and secondary data in the course of the study. The primary data was collected through the instrument of questionnaires and observation. The secondary data was sources through textbooks, journals, magazines and Libraries.
The research design for the study was the survey research. The population of the study was 82 employees of the establishment. The sample size of the study was 63 employees derived using the Yaro Yamani formula for the determination of sample size. A total number of 63 questionnaires were distributed and returned thereby having a hundred percent return rate. The researcher used sample percentage and chi-square as statistical tool for the analysis.
The study revealed that the majority of the workers in this establishment are ignorant on pay determination method which shows that management does not involve workers in the machinery or the mechanics of payment determination. The workers role is reduced to that of a rigid adherence to rules and regulations.
The researcher recommended among others that broad personnel policy study be embraced by employers in the hotel industry.
Title Page i
Table of Contents v
List of Tables vi
1.0 Introduction 1
1.1 Background of the study 1
1.2 Statement of the problem 4
1.3 Objectives of the Study 5
1.4 Research questions 6
1.5 Research Hypothesis 6
1.6 Significance of the study 7
1.7 Scope and limitations of the study 8
1.8 definition of special terms 8
2.0 Review of related literature 11
2.1 Theoretical framework for the study 11 Over of Human Resources Management
2.2 Historical background 13
2.2.1 Motivation 13
2.2.2 Reward System 15
2.2.3 Wages and salaries 16
2.2.4 Incentives 17
2.2.5 Fringe benefits 18
2.2.6 Industrial relations 19
2.3 Current literature on theories postulated 21
2.3.1 Maslow‟s need hierarchy theory 21
2.3.2 Expectancy theory of motivation 22
2.3.3 Herzberg‟s Motivation – hygiene 23
3.0 Research Methodology 28
3.1 Research design 28
3.2 Sources of data 29
3.2.1 Primary data 29
3.2.2 Secondary data 29
3.3 The population of the study 29
3.4 Sample design and determination of sample size 30
3.5 Methods of data collection 31
3.5.1 Questionnaire design, distribution and collection of responses 32
3.5.2 Secondary methods of data collection of responses 32
3.6 Method of data presentation and analysis 32
4.0 Data presentation and analysis 35
4.1 Date presentation 35
4.1.2 Demographic Characteristics 35
4.1.3 Presentation According to Key Research Question 36
4.2 Analysis and testing of the hypotheses 39
CHAPTER FIVE 5.0 Summary, Conclusion and Recommendations 47 5.1 Summary of finding 47 5.2 Conclusions 50 5.3 Recommendation 51 Bibliography Appendix: Questionnaire
1.1 THE BACKGROUND OF THE STUDY
Since the beginning of recorded time, people have travelled, and during their travels,
have needed shelter. This consequently encouraged the springing up of some
accommodation in form of inns and small hotels and subsequent larger hospitality suites,
to meet such needs. This thus hospitality is said to be the worlds‟ second oldest
Just after the civil war in 1970, there was a virtual absence of hotels and especially, the
well known names in the international hotel industry in Nigeria. Not until the late 70‟s,
during the oil boom era, did Nigeria start experiencing some growth in her hotel
industry. In recent years however, Nigeriahosting of several major international events
like the common wealth heads of government meeting (CHOGM), All African games,
carnivals, meeting including the visits of two American presidents an other presidents
with their entourage, has led to the building of several more hotels in Nigeria, especially
in the major cities.
This growth is not restricted to Nigeria alone, example, the American food service
industry in 1979 had 110 billion dollars of busing for meals away from home and was
infact the third largest industry in the country in terms of gross retail sales, it employs
about 6 million people and had average of 125. 42 employees in 1995 and yet still needs
many additional employees every year.
Nigeria has since seen many important developments and changes in the relative
improvement in the standard of living of a vast majority of working people. These
improvements have come about as a result of many different factors including greater
national productivity, stronger growth of economy, having more enlightened
management and pressures from trade unions.
The contributions made by the hotel and catering industry to this general rise in standard
of living are considerable, providing essential and leisure services, employment and
Hotel development in any country is a detailed process, requiring a high level of pre
planning prior to, during and after construction. There is still evidence in many places in
Nigeria that this pre-planning has not adequately been carried out, resulting in some
hotels that are unable to meet today‟s and tomorrows ever-changing and increasing
customer needs, including the fact that demand far outstrips supply, with major cities
like Lagos having now shortages. Nevertheless, Tourism, of which the hotel and catering
industry is a principal element is said to be a potential growth sector in Nigeria.
The conditions of employment of a large number of the industry‟s staff have not kept
peace with those enjoyed by working people elsewhere, in spite of the technical
improvements within the catering industry itself. The reasons for the slow rate of
improvement in the industry‟s condition of employment are considerable including an
understandable reluctance on the part of many proprietors and managers to adjust labor
earnings according to improvements in the industry. Another reason could be that trade
union movements exert little influence in most sectors of the industry, since moreover
most people that make up the industry‟s workforce are people who are not prepared to
make a career out of the job.
The working conditions of the industry‟s staff are for most cases unattractive. There are
intrinsic problems which are unavoidable such as having to work long evenings and
weekends. Other problems however can certainly be removed or reduced by determined
management action. Such problems are staff reliance on tips, ignorance of workers on
methods of calculating pay and the distribution of service charges, and management‟s
reluctance to involve staff in matters that affect their working lives. Management should
therefore evolve a way of bringing out the best in these groups of ignored members of
In Nigeria, there are many organizations that provide catering services and which by
their nature can be termed hotels. It is estimated that there exists about 550 hotels, inns
and commercial guest houses in Nigeria by the year 2008 that employs between 10 and
250 people in line with their sizes. It is said that about 418 – 900 people were employed
in 2003 worldwide.
1.2 STATEMENT OF THE PROBLEM
In an industry in Africa where there seems to have been a continued growth over the
years, expertise is therefore expected to be limited and this constitutes a problem.
There and other problems are what the study wishes to consider and make
recommendation where necessary. The problem reduction in experienced hands in this
industry in the third world, seem to be the case due to managers reluctance to train its
workers and employ able hands.
Another problem lies in the fact that most workers in the industry have no clear cut
channels to register their protests and grievances since management usually stifles
The third problem concerns the issue of how the basic payment and benefits of workers
is commensurate with their dedication to work and efforts. As employers are less
responsive to changes in the economy with respect to adjustments of pay and benefit
packages in line with economic growth as being experienced in most developing
countries today, including Nigeria, they are left with employees whose dedication to
work decreases; with huge reduction in their morals and motivation to work.
We are also confronted with an environment where employees are usually kept in the
dark without being enlightened on things they have the right to know. Example, payment
determination method, criteria for promotion (etc), but rather such issues are based on
the whims of management. This constitutes a problem.
The last problem is the general belief by most people that jobs in the industry is one of
last resort which they can take up when they do not find a “better” job to do. This thus
discourages young people who may wish to have a career in the hotel and catering
Having identified some of the problems, this study intends to find possible solutions to
some of them.
1.3 THE OBJECTIVE OF THE STUDY
To this end, this study aims at assessing the reasonability of all the entitlements due
or payable to that part of the labor force that works fully or partly in the hotel and
catering industry. The objectives of this study are thus.
To examine the reasonability of other entitlements and benefits that is not part of the
To assess the degree to which payment is commensurate with the efforts of
employees in this industry.
To evaluate the extent to which payment and benefits in this industry are similar to
those of like-industries.
To examine the industrial relations existing in the hotel under study and its impact on
To identify the impact of inappropriate payment and employee benefit schemes or
their absence altogether, on employee performance.
1.4 RESEARCH QUESTIONS
The following research questions will be raised:
1. To what extent do the workers in the hotel and catering industry satisfied and
motivated by their payment?
2. To what extent do the working condition obtainable in this industry quite satisfactory
relative to workers effort?
3. To what degree is management involved in the training and development of its
4. To what extent does management agree to the formation of unions?
5. To what extent is management responsive to changes in the economy with reference
to the adjustment of payment and benefit packages in line with economic indicators?
1.5 RESEARCH HYPOTHESIS
The hypothesis of this research work includes:
HO: Employee payment packet and benefit are not equal to the efforts they put in,
HA: Employee payment packet and benefit are equal to the efforts they put on.
HO: Management does not encourage workers to unionize
HA: Management encourages their workers to unionize
HO: Workers morale and motivation to work is negatively influenced by payment and
benefits they receive.
HA: Workers morale and motivation to works is not negatively influenced by the
payment and benefits they receive.
1.6 THE SIGNIFICANCE OF THE STUDY
The study is significant for the following reasons:
To change the belief by some hotel management in the country that the formation of
unions by employees may mean more trouble for them.
To bring to the fore, the importance of having pay being commensurate with efforts
and productivity since the bulk of workers in this industry are after psychological
needs but work in environments supposedly the exclusive reserve of self actualized
members of the society.
Ability to help reinstate the industry belle to its supposed place as a major part of the
economy and as a potential growth sector.
1.7 SCOPE AND LIMITATIONS OF THE STUDY
An attempt of evaluating the management of the human resource in the hotel and
catering industry will be too vast and all encompassing. It is therefore the opinion of the
researcher that the scope of this study be restricted to the administration of employee
benefits and welfare schemes, that is all other entitlements due to employee other than
payment, which by their nature may act as motivation for the staff of the organizations in
The study is confined to the entire staff of Royal Palace Hotel, Enugu. However,
the findings of this study will apply to the hotel and catering industry in Nigeria. Major
limitation to this study, is the limited worse by previous researchers on this subject, as
well as management‟s hostility to questions and enquires.
1.8 DEFINITION OF SPECIAL TERMS
Hotel- An establishment held out by the proprietor to offer food and drinks,
and if so required sleeping accommodation to anybody who is in a fit
state to receive the services.
Fraudulent hotel- A hotel that caters for people, mainly travelers, while they are
temporally away from home.
Residential hotel- These are hotels that provide full apartment type living
facilities as contrasted with simple quest norms that lack facilities for
cooking and eating within individual units.
Airport hotel- This serves to cater for travelers that use the airport.
Salaried- Employee- one who is usually paid monthly through bank and are
mostly managers and senior supervisors
Full- time operatives: Usually working around a 30-45 hour week and who
know they have a guaranteed pay, on a monthly basis in cash.
Resort hotel-Hotel situated along seaside‟s lakes or other natural
geographical features capable of being integrated as part of the hotel.
Casuals- Workers normally working on a session basis, for instance on
evening or afternoon, with no guarantees about future work, usually
paid by one session in cash.
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