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The current economic climate in Ireland poses many challenges for businesses entities in the country. Many have had to reduce costs drastically. One of the highest costs for any employer is staffing and a reduction in staff numbers has become the main criteria for cutting costs. With a reduced number of employees and a larger work-load, a high level of labour productivity is essential. Some may argue that the level of productivity from an employee depends on their attitude towards the job, the job rewards, and the way in which a manager motivates the employee, all of which have been proven to be true.
But today, employers are under more pressure to ensure that maximum level of productivity is achieved which necessitates finding new ways to achieve this. Fraser, 1994, makes a point that the level of work productivity depends on basic human abilities, enhanced by education, training, selection, and direction. Education and training transform an individual’s basic abilities into skills. Selection and direction ensure that these skills are matched to the most appropriate tasks. But if the tasks, the working environment and job factors are not suited to the worker, the resulting mismatch can lead to poor work quality, worker fatigue, and reduced productivity.
Traditionally, projects focusing on the improvement of working environment were based on energy-saving. . Productivity can be defined as “output to the labour hours used in the production of that output” (Bureau of Labour Statistics). In more simplified terms, it is a measurement of work produced within a given time. Attention to productivity levels is particularly important in Ireland as the cost of labour is very high in comparison to other countries. Hotel managers must ensure that the high rate of pay is justified.
An emphasis on productivity in hotels over the past few years with the economic decline has meant that employees have had to work harder and some employees have lost their jobs. An article by James R. Brown of Cornell University suggests that a hotel's size, its service orientation, its ownership arrangement, and its management arrangement affect productivity. His research also found that large hotels use their labour more productively and generate the most income from their capital investments.
Upscale hotels are inclined to be more productive than mid-market hotels, while hotels operated by branded management companies use their capital and labour resources more efficiently than do hotels operated independently or by independent management companies. Finally, company owned properties tend to employ their labour more productively than do franchised hotels. (Brown, 1999). Currently hotels in Ireland are focusing on reducing labour costs while maintaining sales. Concentrating on the reduction of labour costs as a percentage of sales may achieve short term productivity targets but can also jeopardise long term viability due to the erosion of service standards.
Poor service affects customer satisfaction, which in turn influences sales and
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