A Critical Investigation of Challenges Faced and Strategies Employed in London Hotels - Literature review Example

 Introduction This literature review aims at exploring the relationship between employee retention and competitive advantage accrued within the hospitality industry with a concerted focus on the strategies employed by London hotels. The review of the literature also examines the diverse human resource strategies and frameworks that can be used to enhance employee retention, why the industry is plagued by acute employee turnovers, the disparity of the strategies employed between small and large hotels and the cost of losing staff in regards to the competitive advantage to be deprived from long-serving workers. The Nature of the Hotel Industry The UK hospitality industry accounts for approximately ten percent of the country’s GDP, raking over £27 billion by 2005 while employing over 280,000 workers by 2002 in over 40, 000 establishments (Evans et al, 2007, Pg.4). The leading hospitality firms include Premier Travel Inn, Hilton, Marriott, Intercontinental and Le Meridien with a majority of the key hotels are located in London (10 percent) with all the major hotel chains having a market presence there (Mumford, 2007, Pg. 58). According to Wilton (2003, Pg.5), the industry is by nature labour intensive with a concentration of staff in the house-keeping departments. The hotels usually engage employment agencies and extension services in a bid to gain competitive advantage by pushing down wages. This phenomenon of filling vacancies through agency contracts has been labelled by Evans et al (2007, Pg.4) as ‘subcontracting by stealth’ whereby the hotels mainly outsource workers from the agencies thus evading higher wage bills and benefits from hiring own staff. Human Resource Management (HRM) Models Reid et al (2002) the University of Colorado (2008) have categorised human resources management (HRM) models in terms of ‘hard’ or ‘soft’ approaches. In the ‘hard’ approach, HRM is viewed in terms of a firm’s drive to strategically manage and control her personnel with specific objective of realising the company’s goals. Conversely, in the ‘soft’ approach, HRM is strategically organised around the firm’s personnel hence consider more about their welfare and dedication to the firm. The hotel industry mostly applies the hard approach in its employee relations typified by their unyielding policies. Various analysts have termed the hospitality industry as one of the most paltry remunerated sectors in the whole economy with average earnings of £324.80 a week in 2005 against an economy-wide average of £517 a week cent (Adam-Smith et al, 2005); (Purcell et al, 2004); (ONS, 2005); (Datamonitor, 2005). According to Adam-Smith et al (2005) this has inevitably led to the highest labour turnover which peaking at 34 per cent, against the country’s overall labour market average of 19 per. This means that notwithstanding the ongoing global financial crisis and job layoffs, industry leaders and studies still frequently cite staff retention as of primary significance to the hospitality industry. Prevalence of High Employee Turnovers Employee relations in the hotel industry is thus often marked by some the highest turnover rate among all sectors of employment. This has been partly blamed on atrocious working conditions as outlined above, including abysmal working hours, poor remuneration, and ineffective staff relations among other others. Wilton (2003, Pg.7) argues that the rigid human resource structure within the hotel industry which does not employ modern soft HRM practices is to blame with long and difficult working schedules exacerbating the situation. The hotel industry management has been blamed for applying impromptu and intransigent administrative policies generally preferring service manoeuvring in response to erratic demand. Wilton (2003) therefore asserts that there is prevalence of a ‘bleak house’ phenomenon which is manifest by the ‘fragmented ownership within the sector, largely unpredictable product markets, traditionally weak social and legal regulation of employment, an under-emphasis on training and an over-reliance on part-time, female, young and transient employees’ (Pg. 4). Goffee et al (2007) stress that an efficient HRM administration; necessitates a thorough consideration of incentives, work arrangement, recompense schemes, and group demands. Lack of Flexible Working Schedules Harrington (1997, Pg.11) has cited studies which have revealed that workers who are accorded more flexible working schedules and other casual conditions as being more predisposed to be enthused about their jobs. A study at Johnson & Johnson illustrated that employees who are accorded flexible work programmes and family excursions generated a 50 percent lower nonappearance rates when contrasted with the whole company’s workforce. Likewise, at Rank Xerox, employees were authorized on controlling their individual job timetable that indicated a positive and improved employee motivation, enhanced client service, and additionally a remarkable 30 percent less absence for the personnel. Deery (2009) describes the prudent employee relations strategy which has been reciprocated by exemplar staff loyalty is depicted at Virgin Atlantic, Microsoft, and Google where employees who enjoy some flexible operational schedules among other perks reimburse the company through acquiesce and cooperation in having their salaries reduced to assist the company overcome poor returns in the current global recession. According to the University of Colorado (2008) employee manual, the primary factors that assist in staff loyalty and retention are: ‘flexible work schedules (flex schedules) provide a powerful tool for management that can be used to fulfil business needs, accommodate a changing workforce, assist with recruitment and retention, and help employees achieve a better work-life balance’(Pg. 10). Shellenbarger (2000, Pg. B1), retaliates that ‘employees who don't feel that they are respected or trusted, or who don't feel that the company cares about them, are much more likely to quit’. Holoviak (2004, Pg.3) by the same token backs the use of these non-traditional worker motivation techniques that encompass: recruiting from the correct standpoint; employee participation in the objectives and vision of the company; practical principal statutes of management; involving workers in commercial ideas; and initiating substantial sweeteners or reimbursements. Black Hole Organisations Guest & Conway (1999) have also likened the employment structure in the hotel industry to a ‘black hole’ due to the lack any formal HRM structures and employee representation in trade unions [See illustration Table: 1]. The authors describe this ‘black hole organisations’ as being mainly constituted of small hotels operating on the ‘margins of employment’ circumventing contemporary HRM practices through application of decadent draconian rules and practices hence are often unable to retain their personnel. Table 1 Employment Relations Policy Choices     HRM Priority   High Low Industrial Relations High New Realism Traditional Collectivism Policy Low Individual HRM The Black Hole Source: Guest & Conway (1999), Pg.368 Wilton (2003, Pg.5) argues that the hospitality industry workers largely feel insecure due to this poor employment terms and conditions prevail particularly in the small hotels and tourist establishments with only a few large well organised international hotels displaying modern HRM practises. The hotel industry lacks strategic human resource management approaches due to dominant short-term financial demands rather than long-term strategic approach in employee matters typically regarding employees as variable costs (Purcell, 1993). Although ‘soft’ HRM practices and approach have greatly enhanced employee turnover and efficiency in many product industries, Hoque (2000) asserts that in the service oriented hotel industry, the predominance of high volume–low cost market which is often seasonal necessitates the organisations employ rigorous labour practices to augment earnings as cost-leadership generates a competitive advantage. Strategic Human Resource Management (SHRM) and Service Management Although the hospitality industry generally disregard soft approaches to HRM, Maxwell et al (2004, Pg. 161) have linked strategic human resource development (HRSD) to service management as contemporary firms increasingly view the fulfilment of their customers’ needs as their essential target and reason for existence to generate higher profits. In this regard, they cite the five major attributes of service management ascribed to Gronroos, (1996) which encompass, general organizational viewpoint, client driven, holistic standpoint, excellence as an fundamental element of service administration, and internal growth of employees in alignment to the organisational goals (Maxwell et al, 2004). For an effective strategic human resource management (SHRM), a firm must identify all employee’s competency or capabilities and hence appropriately assign matching tasks and place them in the best department as per their skill level to adequately enhance the firm’s overall performance (Sempere, 2002). Preventing Premature Employee Turnovers Wanous (1992) argues that integration or acclimatising a fresh recruit is key in preventing premature turnover within the hospitality industry due to the high rate of absconding staff. He has designed a model (see Appendix Figure 1) that illustrates a ‘dual matching process’ between an employee’s latent aptitudes in conformity to the aspirations of the firm (displayed in the upper level) whereby matching process constitute the organisation selection. The employee’s particular needs within the firm vis-à-vis those of the firm are displayed in the lower section of the model. In case of a divergence from this, turnovers within the organisation will be inevitable as the discordant issues disorient the employee thus the prevailing culture in the firm is critical in persuading the employee to continued stay (Peterson, 2004). Comparison of Large and Small Hotels The Hotel Report Guide to UK Hotels 2007 by HVS International confirmed that larger hotels tended to have better remuneration than smaller establishments with the latter recording lower median wages than the former [see Appendix, Table 2] (Mumford, 2007). Similarly the increment was reflected in the different classes of hotels rising progressively as the standards of the diverse hotels [See Appendix, Table: 3 & 4]. Apart from base salaries, employees were awarded bonuses dependent on the financial performance of the hotels and individuals in the large organisations but this was somewhat eschewed in the smaller establishments. Employee relations are enhanced when the prevailing cultural and management practises within the organisation are more developed. Outlaw (2005) argues that when the management of the organisation spawns confidence, enthusiasm and affirmative altitude, it automatically leads to an improved performance in the organization; and the opposite is true where gloomy, mistrustful, and negative altitudes in the workplace are predominant, hence performance suffers. McNamara (2008) nevertheless insists that the most important motivational tool should be self-motivation, arguing that it is more effective in recognizing what motivates you and how your job is aligned or configured to sustain your motivations. Commenting on CIPD employee report of 2005 which found that higher pay was critical in retaining top performers, HVS Executive Search’s Chris Mumford remarked that, ‘a hotel with a higher room count will typically mean higher turnover, higher cost base, a higher number of employees to manage, and a higher complexity of operation’(nd). Topical issues that affect the remuneration package offered key employees in the hospitality industry include: volume of the hotel in view of both returns and room board The administration style (owner-administered franchise, autonomous organization corporation) Hotel rank (three-star, four-star, five-star etc.) locality (metropolis hub, seaside, airfield) Hotel variety (resort, standard, comprehensive residence) Cost of High Turnovers The high employee turnover rates within the hospitality industry as in most other sectors inevitably impacts negatively on the organisation’s expenditure and profitability as fresh workers are needed to immediately replace the departed (Shilling, 2003, pg. 2). Unremitting culture of employees’ turnover in the organisation therefore affects the firm’s primary objectives negatively (Allen, 2006, Pg.237). The Society for Human Resource Management approximate that it cost-replacement of departing single personnel is about US$3,500.00 to substitute one US$8.00 per hour worker when all expenses (hiring, interviewing, appointment, preparation, abridged output) are considered (Williamson, 2008, p. 4). According to a survey by Top-Consultant.com in 2007 on retention staff loss and retention in London and UK as a whole, most respondents ranked flexible working hours, good remuneration and quality job relative to personal life as the key retention factors that motivate employees to extended loyalty to their employers (Top-Consultant.com, 2008). Storey (2001) quoted in Barlow (2003) has stated that, ‘the ability to attract and hold on to talented employees is the single most reliable predictor of overall excellence’ (Pg. 2). Employee turnover is an indication of elementary difficulty bedevilling the organisation which in real terms translates to real cost to the firm in financial costing and lost opportunities which advertently affects the firms’ profitability and credibility particularly in the sensitive service sectors. The numerous expenditure ensuing includes, separation costs, recruitment and attracting, selection, hiring, and lost productivity costs (Barlow, 2003). A separation rate is formulated to discern the rate of attrition in regards to employee turnovers which will assist in establishing a labour stability index within the industry. Separation Rate = No. of Leavers in a Period Average No. Employed in Period The Chartered Institute of Personnel and Development (CIPD) has also formulated a model of determining the inventory of the replacement costs for an exiting staff that is calculated by factoring the overall crude turnover rate for the entire workforce thus computing the annual expenditure accumulated by the exiting staff. The major categories as determined by the CIPD are: management or dispensation costs for the exiting employees terminal benefits, the expenses sustained in hiring new workers, the expenditure accrued in keeping up with production within the company as they await the hiring of new staff in the vacancy period, and the preparation overheads needed to acclimatise the fresh worker to the company’s procedures and duties (CIPD, 2009). Total number of departing personnel over time x 100 Average total number of personnel engaged over time Likewise the CIPD has formulated a permanence index that illustrates the rate of retention for staff as follows: Total personnel departing after a year’s service x 100 Total personnel retained beyond one year Assessing Human Resources Performance In pursuit of strategic balance in HRM approaches in the organisation, organisations should temper their hard approach to employee relations with ‘soft’ approaches that are value laden since the cost outlay in replacement costs outweighs the cost-cutting measures employed by the institutions thus eroding their profits adversely (Lucas and Deery, 2009). The Centre for the Study of Social Policy (2009) has recommended several strategies to use in the analyses of the performance of human resource management (HRM). These include turnover, employee fulfilment, involvement in education, and age of openings are generally employed to evaluate achievement of HRM approach. A number of HRM tasks also appraise the contentment of HRM’s ‘clientele.’ These processes encompass the appropriate recruitment procedures and broad-spectrum appeal of applicants hired (Pg.6). The three main obstacles to a team’s fulfilment and triumph are change, lack of control and mistrust (Flores, 2003). Informal Employment Terms Evans et al (2007) argue that the deregulation of the labour markets by Conservative governments in the UK in efforts to enhance competitiveness of the economy inexorably led to the development of informal employment terms including casual, part-time, non-standard work, temporary agency and outsourcing work thus leading to workers engaged in the same job being remunerated differently and even working for diverse hours. These types of workers are adversely affected by lower wages and minimal employment benefits. Human Rights organisations like the Living Wage Campaign (LWC) led by London Citizens have campaigned for better benefits for these workers terming it a violation of labour rights and unethical (Holgate and Wills 2007). Strategies to Curb High Turnovers To guard against frequent and undue high turnovers in the service organisations, Heneman and Judge (2003) has emphasised the importance of having efficient recruitment strategies that engage employees of ‘sufficient quantity and quality to create positive impacts on the organisation’s effectiveness’ (Pg.4). The criterion and staffing tactic employed is therefore critical in securing the maintenance of workers in the capricious hospitality industry. The hiring process should follow the five step method as illustrated by the U.S. Department of Transport: recruitment, selection, hiring, training and retention [See Figure 1 below]. Figure 1 Source: U.S. Department of Transportation Due to the high turnover rates, most firms hiring new employees have resorted to demanding a more meticulous selection procedure to eliminate those candidates deemed incapable of surviving the strain and demand of the hospitality industry. In this regards, the major categories used to garner the correct candidate include the individual’s flexibility; including the ability to and willingness to endure the expected environmental and social changes in the locale assigned to (Workman, 2008). This criterion has been found to be of more significance than that of the technical aptitude of the candidate in the long term endurance in complex job environments encountered in the hospitality industry. Efficiency of Recruitment Procedures and Employee Retention The efficiency of the staffing procedures is increasingly being re-evaluated due to the high expenditure accrued in acquiring the right employees who in turn must stay for long haul to justify the costing (Cappelli, 2000). Curry (2004, Pg.2) conversely criticizes deficiency of a more exhaustive enrolment vetting exercise as the primary basis to the persistence of high staff turnovers. McNamara (2008, pg.1) conversely uses the employee relations hypothesis to deduce the reason behind high turnovers. He alludes to missing link of enhanced motivation techniques that inspire employee loyalty within organisations. McNamara refers to the widespread mythologies connected with workers gratification in the workplace that employers cling to as adequate to sustain employees in the organisation. These include the traditional motivators like higher pay, attractive office, and job-related security among others. One of the main tasks of a manager is assisting an employee through the life cycles processes within the organisation described as HIAR or Hire, Inspire, Admire, and Retire. The manager must be less ‘manager’ and more ‘leader’, hence inspires and motivates those entrusted to lead. Former Chrysler Inc. CEO Lee Iacocca asserts that,’ management is nothing more than motivating other people.’ (University of California, 2008) To enhance a firm’s performance, the hospitality must initiate an effective recruitment strategy that will enlist competent individuals as well as ensuring the retention of the hired personnel. This is guaranteed by both the organisation and employee having mutual objectives and desire for growth within the same enterprise [See illustration Figure 3]. The efficiency of the staffing procedures is increasingly being evaluated due to the high expenditure accrued in acquiring the right employees who in turn must stay for long haul to justify the costing (Cappelli, 2000). Figure 3 Source: www.shrm.org/ Organisations always strive to ensure the effectiveness of their production process to the satisfaction of their customers and shareholders. Outlaw (2005) argues that this is entirely dependent on the output of all their employees. Unfortunately many workers continuously underperform or merely generate just the expected output while avoiding hard work. Purcell et al, 2004, Pg.718) have attributed this to lack of incentives within the workplace and poor people management hence leading to mediocre output as employees just do enough to sustain their service. Peterson (2004) argues that a strategic HRM approach is epitomized by an inspired workforce serving as the medium for growth which in effect generates a competitive advantage for the organisation rather than the conventional methods of pay-cuts as in the hospitality industry that only enhance employee turnover. Motivation is acknowledged as the catalyst for enhanced production; however solely lacks within many firms due to ineffective people management and minimal inducements for the staff coupled with many discouraging practices that further de-motivate them (Sorensen, 2002). S.M.A.R.T.E.R Strategies There is no secret formula or set of rules in enhancing employee retention, however it takes personal style plus some unyielding dedication to succeed by the organisation’s human resources management (HRM). Nonetheless HRM strategies must always be conscious of the adage that, ‘By failing to plan you plan to fail’, hence the need to establish long and short term objectives. The planned objectives have to be S.M.A.R.T.E.R, i.e. Specific, Measurable, Attainable, Realistic, Timely, Ethical, and Relevant (Blair, 2006). The HRM approach employed must additionally be consistent or predictable in own actions and reactions rather than erratic hence generating ambiguity to other employees. Nevertheless the HRM strategy must likewise be flexible which does not mean that it is inconsistent. Thus a management is decisive on big and small matters while communicating effectively on proposed expectations. Leaders must ensure that they maintain the confidence of all other staff by not betraying their confidence or any confidential company data. By been friendly and witty, a manager will appear accessible while helping themselves unwinds rather than inflexible and rigid. Since everyone has personal affairs, families, opinion and struggles, all employees should be treated equally regardless of position within the organization (Bright, 2009); (Weightman, 2004). Managing Diversity and Integration To offset high turnovers and enhance profitability, Evans et al (2007, Pg.9) recommends that the hospitality industry must ensure they adequately manage diversity among the employees. This encompasses recognizing particular employee's divergence since distinguishing these disparities is crucial; it augments excellent management practices by averting intolerance and encouraging comprehensiveness. Superior HRM by itself will not automatically facilitate loyalty and efficiency but rather need managerial astuteness (University of California, 2008). The traditional way of management where the leader made decisions in lofty and lonely isolation is no longer in vogue as commerce has become too intricate and focused for any single individual to handle. Teamwork and sensitive handling of personal issues is critical as well as enhancing equality and fairness in decision making to augment the failure of the hospitality industry to effectively remunerate their personnel. Heller (2006) has stressed that, ‘if leaders don't pay close attention to their team members, they will fail: and attention is by definition personal’ (pg.4). Though most organisations identify that the significance of the workforce for the enterprise to succeed, employee management in the firm requires greater perspicacity including having suitable HRM strategies. To enhance employee retention in organisations, Lindner (1998) advocates for a blend of systematic bundling of benefits, including career enhancement, progression, internal and external stipends, and non-financial rewards. Gamez, el at (2006) describe managing people as a multiple-step process a manager undertakes towards achieving the desired objective of improved productivity and better employee retention. These are voluntary choices and cannot be enforced though may be inspired by the employee’s executive by properly infused performance management systems that induce workers loyalty and endurance. The lack of a positive attitude has been attributed to generating negative emotions within the organizations, leading to employees becoming de-motivated hence causing massive absenteeism and illnesses that impact negatively on many lost working hours and medical insurance expense and ultimately staff turnovers (Fredrickson, 2003). One of the most critical aspects in assisting new employees assimilate in the organisation is that of employees integrating them within the company and thus dealing with changes in their new workplace. Reh (2009) asserts that, ‘managing change means managing people's fear...change is natural and good, but people's reaction to change is unpredictable and irrational’ (pg. 1). The fear of the unknown results in opposition from employees who are apprehensive of what to expect from changes on their personal welfare. In contemporary HRM strategies, the management is obligated to address these fears by assuaging the concerns reducing them to a minimum or manageable level. The management must understand the reasons fro the resistance and similarly make the people understand the reasons for the changes hence avoid rationalising their behaviour without appreciating why hence reduce the tendency of new employees absconding prematurely (Arnold & Silvester, 2005); (McIntyre, 2008). Characteristics of Unhappy Employees Belludi (2009) has listed four behavioural aspects displayed by unhappy employees in an organisation. These include: Lethargic: The unhappy employee is characterised by late arrivals, departures, vagueness, cagey and absenteeism. Contemptuous: The unhappy employee can be cantankerous, complaining, or remarkably belligerent. Inclined to be prickly, sulky, and cynical, or blames boss. Apathy: The unhappy employee lacks focus on his tasks and subsequently his work is likely to be incompetent and incomprehensible. The worker is slow on assignments while resisting new duties. Remoteness: The unhappy employee is disposed to be reserved from other workers. He is likely to be difficult and decline to put up others workers wishes. Importance of Communication The research firm BusinessTown.com has equated operating a business to the conception of the three rules of real estate: location, location, location! Thus in business the three principle rules are: communication, communication, and communication! The three communication lines are: Communication with employees Communication with executive team Communication with customers Thus a business or the employee needs to communicate all aspects of its dealings to every stakeholder. Prominent management analysts Jack & Susan Welch (2008) affirmed that, the HRM function in an organisation should be allotted a ‘position of power and primacy’. Therefore HRM strategies should evolve a thorough, non-bureaucratic appraisal scheme that is scrutinized for veracity; efficient methods of remuneration, acknowledgment, and training that inspire and therefore maintain employees; involve the ‘common’ employees in decision-making; design a level organisation chart that has logical reporting links and duties (Welch, 2008). Wilton (2003, Pg.17) argues that the conventional altitude by investors in the hospitality industry that people are a variable cost has now changed as HRM ascertain that to gain a competitive advantage in modern industry, a well educated and skilled, inspired and dedicated workforce is needed at every point of the organisation. Goffee et al (2007) asserts that HRM strategies were revolutionised by the advent of the human resources approach of management that led to the demise of the previously predominant paradigm of the scientific model as advocated by Fredrick Taylor. The Hawthorne Studies conducted at the Hawthorne Works of the Western Electric Company in Chicago from 1924 to 1932 led by Elton Mayo introduced the Human Relations Approach to management, spawned the hypothesis of Douglas McGregor’s Theory X and Theory Y; Frederick Herzberg’s dual factor Motivation-Hygiene Model Of Management; Abraham Maslow’s Hierarchy of Needs model (theory z); and John Stacey Adam’s Equity Theory. These theories emphasised the importance of taking a more humanistic approach to organisational development rather than a scientific or mechanical approach that dehumanised people to the level of machines within a firm as currently exemplified by the hospitality industry. Maslow’s assertion of taking care of the lower basic needs sequent to attaining higher levels of needs and Herzberg’s dual model motivational-hygienic factors all illustrate the factors that motivate/satisfies frustrated employees as opposed to the dissatisfying hygienic factors (negative motivational forces within the firm) (Goffee et al, 2007); (Dickson, 1973); (Carrell & Dittrich, 1978). Within the hospitality industry, HRM strategies must reflect a fair method of remuneration and rewards hence reduce the incidence of high turnovers. Adam’s Equity Theory illustrates the frustration by employees when they discern some sort of discrimination or bias. Adams (1965) affirmed that employees generally seek to sustain equality between the inputs or efforts and the outcomes or outputs they receive in an organisation when measured against similar inputs and outputs of others (Chapman, 2007). McGregor, in his motivation theory assumed two distinct types of managers or angles. In Theory X, one type of manager envisions pessimistic outlook of employees as unreliable and lazy while in contrast, the other manager (Theory Y) has an optimistic view of the employees as trustworthy and reliable. The hotel industry will require a manager to adopt Theory Y to evolve a better working relationship with line employees thus gain a competitive advantage as higher productivity, employee reduced turnovers and enhanced loyalty ensues within the organisations (Chirino-Klevans, 2008); (Carrell & Dittrich, 1978). The Excel Team Development (2008) outlines seven strategies sufficient in HRM strategies that can motivate employees and hence reduce dissatisfaction and employee turnovers: Constructive reinforcement / lofty outlook imparted on employees Competent control and retribution for your actions Fair treatment of all employees Rewarding employees requirements Clear employee objectives at workplace Reorganization of tasks to suit capabilities Employees rewarded according to their performance Summary of the Literature Review The literature review has revealed that the London hotels sector is characterised by unusually low wages and poor working conditions and is tightly controlled by the management as the workers lack any sort of representation to advance their grievances. The literature indicates that low wage bill is instituted to ensure the hotels enjoy a competitive advantage by cutting expenditure in the often variably viewed employee remuneration. This has led to the sector having the highest employee turnovers as most escape the abysmal working conditions. The mostly subcontracted workers have little room for manoeuvre due to the nature of their employment. Various authors conclude that the displacement and replacement costs lead to adverse expenditures for the hotels as they seek to engage fresh workers thus negating the competitive advantage sought by ‘slave wages’. The hoteliers should therefore seek a middle ground as exempted by the few larger establishments who offer better terms through striking a balance between the drive for profits and equitable working conditions for their staff who should be viewed as key assets of the organisation. References Accel-Team Development. (2008) Employee Motivation: Theory and Practice Retrieved February 18, 2010, from Accel-Team.com] Adams J S (1965) Inequity In Social Exchange. Adv. Exp. Soc. 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International Job Assignments: Multinational Screening, Selection Criteria and Adjustment Tools Suite101.com Retrieved February 18, 2010 from: Appendices Figure 1 Source: Wanous, 1992 Table 2: Annual Base Salary by Room Court Front Office Manager Median 400 rooms £34,000 Source: Hotel Report Guide to UK Hotels (2007), Pg. 57 Table: 3 Annual Base Salary by Hotel Class Front Office Manager Median Three-Star £24,000 Four-Star £25,875 Five-Star £33,317 Source: Hotel Report Guide to UK Hotels (2007), Pg. 57 Table 4: Three, Four & Five Star London Hotels Minimum 25th Percentile 50th Percentile 75th Percentile Maximum £12,750 £16,500 £19,123 £21,630 £29,265 £17,510 £28,007 £31,770 £37,956 £53,931 £15,000 £22,250 £27,982 £33,108 £50,000 £19,469 £24,708 £32,000 £36,330 £44,982 £21,000 £26,836 £27,989 £30,937 £34,500 £13,515 £17,391 £19,584 £21,599 £26,047 *Source: The Bench™ Read More