Importance of Motivation and Retention in Restaurant Industry Sample

Title of the Dissertation

Importance of motivation and retention in the London restaurant

industry.

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The Hospitality Industry is one of the biggest industry which helps in giving employment to the people. It has been declared that in spite the global crises

this particular industry will never have the problem of credit crunch as people will never stop eating. It is also predicted that this industry will have its

downfall almost at the bottom of all (United Nations World Tourism Organisation, 2009). Along with this it is also been declared as the 5th largest

industry which gives employment to the people.

Importance of Hospitality Sector in United Kingdom

The report by the British Hospitality Association commonly known as BHA has made a report which clearly says that the Hospitality industries contribution to

the economy cannot be neglected. This contribution helps the UK markets economy grown. Sir David Michel(2010), the president of BHA said that the

report which was prepared by the Oxford Economics department made it very clear that the economy of UK is backed by the hospitality industry. Along with this he also added that it has a huge amount of potential in creating jobs and this

needs to be focused in order to help get the economy high. The report clearly states that its 5th largest industry which helps employment and employs around

2.4m people that is (1 in 13 of the total jobs). The report estimates that 400,000jobs in the hospitality industry and related services. There are 1.26m

jobs in the restaurant industry, 750,000 in the contract catering industry and also in-housecatering, along with this the event management industry has

20,000jobs. The president also added that the hospitality industry makes a turnover of £90bn and this helps to contribute to the £46bn to the UK economy in GVA( this is wage and profits), this helps to achieve the £34bn in gross tax

revenue.

In short the BHA president, Sir David Michel wanted to say that, the 4.2% of the total investment done in the UK economy is done by the hospitality

industry, by creating a sustainability of 61,000 jobs along with 39,000 of this jobs in construction and related activities.

This report clearly states that it’s a huge industry which helps in creating employment, but the most important part is to retain the staff by fulfilling their needs and motivating them to stay back and work efficiently. For this the birth

of Humana Resource Management came into being, more aptly known as HRM.

Human Resource Management

Introduction



Human Resource management can be defined as, “A strategic and a coherent approach made to the management of the organisations most valued assets – the

people working in that organisation collectively as well as individually contributing their share to achieve the goals and objectives of the organisation.” The main purpose of the HRM department is to make sure that the organisation achieves its success by the people they have employed. This department focuses on recruitment, employee relationship, over all information about the company

–orientation program for new staff, manage the talent in the staff, staff

Motivation can be defined as the driver which helps in compiling the energy and get a persistent and standard performance to achieve the desirable goal in the life, may be for oneself or for the organisation one is working for. While

Retention is the way one shows off why one is working for that particular goal and that can be only achieved if one is motivated about it. This is a relationship which holds them two together; they are inter-related with each other and help

the organisation or oneself to grow.

This work is going to be focused on these two words and related areas with them like what are the factors which help them to build the organisation help it grow. The Restaurant industry is going to be taken into consideration for this

topic and to back it up “MotiMahal” restaurant in Covent Garden will be considered as a case study, to understand what helps the staff to feel they are

important and make them stay back.



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Aim , Objectives and Research Framework

Aim:

To evaluate the importance of Staff Motivation and Staff Retention and their inter-relationship and its effect on the operational level of the organisation in the Restaurant industry in London (MotiMahal Restaurant)

Objectives:

1. To critically evaluate the staff motivational theories and polices of staff retention in the organisation.

2. To analyse different drivers for the staff motivation in order to retain them in the organisation by seeing the X-employees and the present employees in the organisation.

3. To recommend different policies and suggest corrective methods after studying the drawbacks and the loop holes in these policies which are adapted by the MotiMahal restaurant in Covent Garden, London.

Research Framework:

The first part of this Dissertation is the Introduction part which helps us to have an idea about the importance of hospitality industry in UK, how it has been really helpful by creating job opportunities for the people in this country along with two key words which are very important in the dictionary of Human Resource Management Department. The aim and objectives for this course work which will help in understanding this



topic more clearly.The case study of MotiMahal restaurant is used to help in understanding the subject.

The second part is the literature review where various authors are discussed on their opinion about the staff motivation drivers and its effects on helping staff retention in the organisations.

Case study : “MotiMahal” , Covent Garden London

The MotiMahal is a nice fine dine relaxed gastronomic serving Indian restaurant located in the heart of London’s West End. The restaurant is located in the hub of Covent Garden and theatre land makes it very busy as people love

to try the Indian taste. The restaurant has live kitchen and a capacity to accommodate around 100 covers at one go, with a private dinning space in the

basement.

The restaurant has a chain and has its first outlet opened in Delhi in the year 1959. The speciality is that they have made a history by inventing a world



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famous dish called “ MurghMakhani”. The food here is very innovative and the taste of palate of people from here is kept in mind.

The food revolves around a road which is called “Grand Trunk Road”, this road starts from Kabul in Afghanistan and ends in West Bengal. The chef has

travelled this road and put in the dishes from each location so the menu is very innovative as it doesn’t comprise of starter or main course. This restaurant was opened in London in the year 2005 and from that time has made itself stand in the race of top 10 restaurants serving Indian food according to the food critic

guides (Urbanspoon.com, 2011).

The service is the second crucial part after the taste of the food which is important as it helps to maintain the standard of the restaurant. As it is located in a very busy area it needs good amount of manpower. The restaurant has 2

managers, 3 supervisors, and a complete team of 14 staff members in the front of house team. The management of this big team is very tedious as some are full timers and some are part timers. The restaurant has a staff turnover problem to a

great level.

The dissertation will be considering the front of house team as retention is a problem for the front of house team as they are not on any contract or legal

bond with the company as compared to the kitchen staff. The kitchen staff is on work permit and they are all bonded by legal commitments with the company.



Chapter 2

Literature Review:

2.1 Introduction:

Literature review is the most important part of the dissertation work because it provides literary evidences and facts to support the research problem. The literature review is mainly done through having deep insight into different literary sources such as scholarly journal articles and textbooks. In this context the following literature review is mainly focusing on the two major aspects of human resource management namely employee motivation and retention. Though these aspects of human resource management are very important in all the business industries, yet in the following literature review the discussion of these aspects is done in relation to restaurant industry of London. In this relation, the literature is mainly discussing the importance of employees’ motivation and retention for restaurant industry of London. The major important points of the dissertation are discussed under specific headings.

Employees are mainly dealt under the human resource management department of the business organizations. The HR plans and policies framed by the human resource managers are the essential aspects for improving the skills of the employees as per the expectation of the management people. In the service industry employee motivation is very much important aspect in order to deliver quality services to the customers. All level of employees such as



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professional level employees, highly skilled employees, unskilled employees, all want a sufficient degree of motivation in the organizations in order to perform at the best level. All the service industries including restaurant industry do consider improving the capabilities of their employees through motivations means. In order to attain high level of satisfaction of the customers in the service industry the motivation of the employees is the key requirement in the service industries (Khan, Farooq and Ullah 2010).

According to the author, among all the functions of the human resource management department, the most important function is the enhancement and maintenance of work motivation of the employees. To provide appropriate degree of assistance to the general managers or line manager to make their employees fully satisfied with the job conditions provision of different kinds of motivational styles is an essential aspect (Khan, Farooq and Ullah 2010). As per the views of the author, establishment and provision of the effective rewards system for the employees is the most effective source of employee motivation in the service organizations. This kind of monetary motivation not only improves the degree of productivity of the employees but also enhances the overall organizational performance to a good degree (Khan, Farooq and Ullah 2010).

According to Chew, Chang and Larzarevic (2006), higher level of motivation among the employees make them cheerful in the organization and then they contribute their best performance for the organization (Chew, Cheng and Lazarevic 2006). In the restaurant industry, being happiness of the work staff is the key for the improved and effective performance of the restaurant company. Motivation generated high spirit among the employees and these high spirited employees become efficient enough to establish and maintain working relationship with their co-workers in a harmonious way. With the motivation practices the morale of the employees can be kept to higher degree. In this regard, it is the duty of the human resource management department in the restaurant and hotel industries to maintain a pleasant work environment in the organizations for all the employees in order to keep them highly motivated, because work environment influenced through high degree of stress is always put negative impact on the performance of restaurant industry Chew, Cheng and Lazarevic 2006).

Motivation is the link between improvement in the organizational setting and changing working environment and employees’ performance. This is the key to sustain high degree of competitiveness in the restaurant industry.



Organizational changes are required to be managed in the organizations in such a way that business managers as well as the employees become equally motivated and have high spirit towards the organization. All the imposed organizational changes and their related information having strategic relevance must be communicated to the managers and employees in order to make them more congruent towards the new changes and improvement made in the restaurant companies (Chew, Cheng and Lazarevic 2006). Through such kind of motivation employees have acceptance of all the changes and result into improved performance of the organizations. In this way, employees’ motivation does accentuate that in order to attain competitiveness in the restaurant industry it is the most sustained way.

2.1.2 Employee Retention and Essential HR Practice in Restaurant Industry:

Achievement of the human resource practices in an effective way give rise to the increased degree of competitive advantage in the restaurant industry. It provides direct and economically beneficial contribution in the overall organizational performance. It has been evident that the hotel industry has been becoming complex on continuous basis and thus it requires attainment of higher degree of skills from all level employees in the organizations. In this series, large numbers of organizations in the restaurant industry are focusing on employee retention. According to Tavitiyamana, Qu, ans Zhang (2011),



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sample.” It is a best way as it reduces cost and requires less time which would have consumed by the interview.

According to Saunders et al (2009), there are 2 types of questionnaires

A. Self-administered: This is generally responded by the respondent’s by using internet or intranet, posting it to respondent’s or the simplest way is hand in each respondent’s and collects it later.

B. Interviewer administered Questionnaire: In this the use of telephonic questionnaires or structured interviews is used.

Qualitative research method:

According to Saunters et al (2009), “A qualitative research to be a data collection technique such as interviews or data analysis procedure such as categorising data that produces a non-numerical data.” The managers are more helpful and respond more efficiently to the interviews as compared to the filling up of questionnaire (Saunders et al, 2003).

Mixed research method:

As per Creswell (2003), Mixed research method is defined as, “The collection or analysis of both Quantitative and Qualitative data in a single study in which the data are collected concurrently, are given a priority , and involve integration of the data at one or more stages in the process of the research.”

By using both the methods it helps in getting a broad and rich data which helps in accumulation of a more convincing and to the point information which when interpreted properly.

3.5 Justification of using Mixed Method for research:



This method was much more helpful as the interview was easily available from the Restaurant manager, the staff was very cooperative and helped me carry out the research in a more effective manner. Apart from this since it was the combination method, numerical as well as the non-numerical data which was the interview helped to understand and answer the research question in more apt manner. Also to get the feedback from ex- employees the use of “interviewed questionnaire”, so use of telephonic conversation was used.

form the base in the data analysis.

The questions used were close ended, short, clear and to the point. The questionnaire was distributed to the staff of “MotiMahal” restaurant which comprises of all together14 staff members and 3 supervisors. This was the front of house team into consideration.

Finally the reason for this was it helped save time, less cost involvement as compared to other form like online questionnaire and stuff, as it would have been an excuse for some to give that they don’t go online or being lazy to sign in on that website or so.



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Also to add on this, the info obtained from questionnaire is easy to analyse.

Interviews:

This is used by the qualitative research method. It is very effective as it generally good when it comes to senior level people answering them as the opinion is going to be very effective and it is going to be a biased free. Interview can be taken up by using face to face, telephonic, group contribution etc. The method which I used was face to face as it was much clearer and helped to understand the subject in much more better form. The interview was conducted with the restaurant manager “Mr RohitKunwar”., he has been with this restaurant almost 4 years now and “ Mr M. Cheung” he is the new General manager of this restaurant. The interview lasted like 30 minutes with each of them.

Finally this was very helpful as it help to see them in person and help in data analysis as they are industry experts and have seen the hospitality industry much more closely and could tell what exactly the employee sees in the job and what employer feels the employee should have in them. They explained as which are the perfect strategies used by the restaurant industry.

Pilot Testing:

The questionnaire and the interview was Pilot tested on 5 different people. This people were not given the opportunity to take part in the actual research when conducted. This helped to identify to the problems in the questions, after getting identify the loop holes like the misleading or confusing points they were rectified and then again given them to see if they are proper. This made it free of mistakes. After that the questionnaire and interview was launched.



Thus the mix method for research was used. The format of this two is given in the appendix section which helps in data analysis at the end.

3.7 Data Analysis:

In this dissertation the Questionnaire was done which was put under the quantitative basis and the interview was put under the qualitative basis. The data collected in the questionnaire format is put up in the form of a pie chart which can be interpreted and seen analysed easily, while, the interview format is interpreted in the descriptive narrative format.

Limitations :

This particular topic is such a core topic so lot of material is written on it by different authors and lot of people have wrote articles on this particular topic. Hence it was very difficult to judge which topic to be given more importance and which topic to be included in this research as there was a limit on the word count and the time was also the constrain when doing this research works. There were lot of journals written, but especially on restaurant industry was bit limited and even if available it was



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very broad. But the online Google books, Emerald and Hounslow library helped me to get some good and quality information.

The second part was the interview from the managers, it was bit difficult as the season was a busy time when I proceeded to take them and they were very busy with their restaurant promotional business. This affected them to give me proper time commitments.

But time to time motivation from my BIR tutor and my friends and my parents helped me compile it in time.



Bibliography:

Creswell, (2003) “Advanced mixed methods research designs”, Thousand Oaks, Calif:Sage Publications.

Flick, U. (1998), “An Introduction to Qualitative Research”, Sage publications London2006 3rd ED

Saunders et al,(2007), “Research Methods for Business Students”, Business & Economics Pearson Education.

date access: 15thsep 2011.

(2011).motimahal. Available: http://www.urbanspoon.com/r/52/567199/restaurant/London/Covent-Garden/Moti-Mahal-Holborn. Last accessed 12th sep 2011.

Khan, K. U., Farooq, S. U. and Ullah, M. I. 2010. The Relationship between Rewards and Employee Motivation in Commercial Banks of Pakistan. Research Journal of Internatıonal Studıes 14, pp. 37-54.

Chew, M. M. M., Cheng, J. S. L. and Lazarevic, S. P. 2006. Managers’ Role In Implementing Organizational Change: Case Of The Restaurant Industry In Melbourne. Journal of Global Business and Technology 2(1), pp. 58-67.



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