CHAPTER ONE

INTRODUCTION

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

profession.

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

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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

wealth creation.

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

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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

our workforce.

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.

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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

unionization agitation.

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

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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

industry.

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

basic payment.

 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.

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 To examine the industrial relations existing in the hotel under study and its impact on

worker‟s welfare.

 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

workers?

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.

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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.

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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 industry.

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.

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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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REFERENCES

1. Bralton J. Gold J (1999) “Human Resource Management theory and practice”

2

nd

Edition Macmillan Press Ltd London PP. 1-9

2. Desster G. (1994) “Human Resource Management” practice hall Inc. New

Jersey 6

th

Edition PP. 1-6.

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