Introduction
Human beings have three basic needs that need to be satisfied in order for them to live comfortable lives and they include food clothing and shelter. These needs are satisfied by a person in two ways that involve producing them or acquiring them from other producers by buying. The most common means of buying is through making monetary payments in exchange for goods or services.
Money is obtained through selling goods and offering personal services in terms of energy and time spend at work. Almost forty percent of people in the world rely directly or indirectly on jobs for survival. The link between the employer and employee is vital in shaping the value of services offered and goods produced in any firm. This is an assessment essay that outlines various compensation management schemes that are essential in a hospitality industry.
Management is defined as the process of assembling workers to attain planned objectives in an effective and efficient manner. It is a process that involves technical planning and organization of workers and leading them to attain the objectives set and at the same time controlling the company. Compensation is an act of providing monetary and non monetary rewards to employees by an employer in return for mental and physical efforts put in the process of production.
Compensation management is a process that involves keeping a balance between an employer and employees through the use of effective remunerations and is an essential component of managing human resource that improves performance through staff stimulation and boosting a companyâs effectiveness. This means that all activities involved in compensation management play important roles in ensuring that employers meet all essential needs of their employees.
Compensation management is a very sensitive area in business studies and in business operations since it gives an insight into the expectations of employer-employee relationship. Through effective compensation management programs it is easy to identify various setbacks that limit effective performance at work (Dessler 2010).
Managers use this as tools for future planning in order to ensure there is mutual benefit between them and their employees. Many workers resign from duty especially where they offer intellectual or physical labor citing poor compensation schemes as the chief reason for their departure.
Through a viable compensation management program the employer is relieved the stress of supervision and monitoring workers in order for them to perform. This is due to the fact that workers are motivated through pay packages that commensurate their efforts.
The hospitality industry is one of the greatest business enterprises in the world and provides more than 30% of the worldâs job market (Dessler 2010). This means that out of ten people who are employed about three of them work in a hospitality company. Working in a restaurant is an exciting experience as it involves direct contact with clients on a daily basis.
However, most employers who own restaurants provide poor incentives that are not proportional to workers efforts. For instance a restaurant employee working in a three star hotel in an urban center is expected to work at least eight hours every day.
The person is expected to report to work one hour earlier and leave one hour after his or her shift is over and during the working hours is expected to serve about forty clients. However, at the end of the day he is given less than ten dollars without additional benefits despite the sales made on that day.
For any hospitality business to be successful the employer should ensure that reasonable remunerations and benefits are offered to their workers in a manner that reflects appreciation and satisfaction in work done (Dessler 2010).
This will in turn motivate employees to do their best and deliver quality services to their clients and therefore make huge sales and profits. Employee motivation occurs in various forms ranging from monetary to non-monetary terms.
These packages may be in form of competitive offers being given to workers depending on the output of an individual. This involves a simple directly proportional offer that rewards the best performer with incentives in terms of bonus payments, reduction in time of work and more work leaves. Market data also offers an essential compensation scheme that help employees to gain benefits with regard to the sales made (Dessler 2010).
This is done through outlining a plan that is aimed at rewarding employees depending on their ability to market and sale products to the public. In hospitality industry public relations plays an important role in ensuring that all clients are satisfied with the quality and quantity of services offered.
Most restaurants offer day and night services due to the complexity of the nature of their services. Sometimes workers are forced to work beyond their stipulated time. When this occurs they should be given overtime compensations that are usually higher than the daily earnings.
Conclusion
Every company should ensure proper measures are put in place to facilitate good working conditions in order to realize their goals. Employees play a vital role in sustaining and promoting business growth and therefore should be well taken care of through effective compensation management programs.
Reference
Dessler, G. (2010). Human Resource Management. New Jersey: Prentice Hall.