Managing Room Division - Coursework Example

nаging Rооm Division Name University Date Маnаging Rооm Division Introduction The hospitality industry has witnessed an increase in outsourcing over the years. The main aim of this report is to provide a legal framework relevant to the hospitality industry that covers both the hotel management and the outsourcing partners. In considering the background of this report, hotels have for a long time considered the aspect of outsourcing more and more from other more experienced companies in a specific field. This led the government to amended various clauses that cover the requirements as well as processes that require to be legally as well as prudently regulate the process to provide both parties with the best working conditions. It has been estimated that most of the hotels within the country utilize a given type of outsourced service in ensuring better delivery of services to the customers. Therefore, the legislative system has developed into being a robust as well as an in-depth regulator when it comes to issues of compliance with the government set regulations (Becke, 2003). It has become the obligation of the hotel operators to ensure that the outsourced companies comply with the regulations. There are definite limitations experienced when it comes to maters of outsourcing. Hotel management is faced with the challenge of ensuring a complete understanding of the requirements of outsourcing. The rules and regulations are quite specific and need to be adhered to which puts most of the hoteliers at risk especially if their outsourced partners are not compliant. What is Outsourcing Outsourcing can be defined in simple terms as the practice involving a business performing a given task or providing services on behalf on another business. It is quite difficult to talk about outsourcing in the hospitality industry since the products and services being offered in hotels depend on a wide range of factors that the hoteliers have no control over (Macleod, 2016). Importance of outsourcing Outsourcing plays an effective role in helping hotels to reduce fixed costs. This enables the hotels top run with the expenses of what guests use. Therefore, the hotel can be able to hire these services from another company depending on the workload they have at that given time. It is also certain that the quality of the specialised products and services being offered by the outsourced companies tend to be better due to the idea of specialization (Macleod, 2016). For instance, when it comes to the marketing of the hotel and other advertising campaigns, the outsourced company will present the best services due to experience than the hotel itself. From the room division contract two important clauses can be drawn on the various aspects of room cleaning services. These clauses have different influences on room cleaning services that ensure the success of the hotel industry[Viv14]. These clauses are as follows: Engagement To Provide Services The first clause to consider in this report is the engagement to provide services. Hotels have the ability to decide to engage the services of another company in providing cleaning services. That includes engaging the clients who are the cleaning service providers for a stated period of time through contractual agreements[Gob13]. The clients often provide the services based on the type of agreement that exists between the hotel management and the cleaning service providers. This clause influences other departments within the hotel industry in the sense that the operating environment often presents various challenges in the recruitment, training and also the retention of the hotel staff across the departments. But then, outsourcing offers the best solution based on the agreements that lawfully bind the engagement of the parties involved across all the involved departments (Macleod, 2016) A good real industry example in this case is the presence of rules and regulations that face outsourcing companies in the hospitality industry. The hoteliers may end up putting their operations and general reputation at risk if their respective outsourced partners are not fully compliant with the engagement rules and regulation. There is a need to ensure there is exclusivity in the provision of services where the outsourced partners cannot engage in other activities that are not defined in the contractual agreement. Potential penalties have been applied to the hotel management for knowingly or unknowingly allowing non-compliant outsourced partners to operate outside the stipulated areas. It becomes essential for all the involved parties to ensure they keep the risks that are associated with outsourcing to the minimal to ensure compliance with the regulations[Jas15]. Terms And Extension Of Term This is the second clause and it considered the primary, as well as the inherent existing imbalance of power between the hotel management and outsourced partners in an outsourcing relationship. Such has been addressed first by the legislative provisions that provide outsourced partners with rights and their specific period of service. These terms are a legal framework, which comprises of different sources of law, namely customary law, labor legislation laws, the country’s constitution and common laws. The influence of this clause is felt when the benefits of a fully existing relationship between the management of the hotels and their outsourced partners are considered. The initial term of service and the extension of services have to qualify for the services being provided across the departments[Ste14]. In other words, the outsourced partner can bargain with the employer on the possible extension of terms if termination date has been reached. It can also be agreed by both the parties that the initial term which is the commencement date of service of the termination of service are done in accordance with the legislation. This means the agreement will automatically be renewed for a period of one year unless either or the two parties wish to terminate the term stipulated for the service or fail to agree on the renewal of the existing contract. The best example for these cases in hospitality industry is witnessed when a term of service is terminated earlier. In such a case the initial term of an outsourced partner under the agreement is always from a period of the date the agreement was signed which is the commencement date to the period that has been stated as the termination date. Following the initial date of termination, various hotels have renewed the agreement automatically as stated above for other successive one-year periods. This is three months before the stated initial date of termination of the existing term [Art03]. Government Legislation Hotels that outsource are required by the government to ensure they provide their outsourcing partners with compliant agreements and better-working conditions together with work health and safety legislations. Currently, there are essential penalties that the government has implemented to hotel operators and owners who allow non-compliant outsourcing companies to operate within their areas (Kuner, 2015). The outsourcing service providers who provide services that are not stipulated by the agreements and practice underpayment of wages, paying of incorrect amounts of wages to the employees, shamming contracts or not paying are sufficiently punished by the government. However, the hotels have the right to request for outsourcing providers, and the proof of compliance with government regulations is mandatory. It can be noted that, aside from the non-compliance of outsourcing partners, the government has provided a large list of fully compliant outsourcing partners that the hotels can use to ensure they get the best services from them. Such compliant outsourcing partners have met the full legal requirements and provide their employees with all the governmental required entitlements. Such outsourced partners will be able to provide the hospitality industry with major benefits as they work within the governmental stipulations in the overall industries they serve[Ang12]. Influence of the Clauses on Room Division The agreements for outsourcing in the hospitality industry have been driven by the desire to reduce costs and maintaining a better quality of services. The influence of the stated clauses on room divisions and the outsourcing company are geared towards the success of the hotel. That means the engagement of the two parties plays an effective role in saving labour (Vettori, 2014). The clauses ensure the hotel is able to get the best of the talents in cleaning services without necessarily carrying then to the overall payroll. Engagement influences room division through the provision of a competitive advantage when the hotel is competing with other larger organisations who have enough budget, in-house skills, and the required technology. The conditions that surround outsourcing change over the years with the terms of agreement and extension of terms changing [Ang12]. The government regulates the requirements for these terms and for the companies that outsource. Conclusion The practice of outsourcing in the hospitality industry has been on the increase with the existing agreements taking a center stage in controlling the activity within the industry. Despite the fact that outsourcing is at the centerpiece of most hotel operations, the government considers that both outsourcing partners and the hotels have to operate within the set legal framework of the government. With the many reasons of the hotels outsourcing their employees, it is in the best interest of the hospitality industry to ensure they stop outsourcing non-compliant companies. It is also in the best interest of the outsourced partners to ensure they fully meet the needs of the legislative government and protect their employees. They need to serve within the jurisdiction of their employer and exercise their expertise in providing the hotels wit the best cleaning services. The hotels should also outsource services that are not their specialty and maintain internal employees for the services in which they have expertise. References Viv14: , (Vivek, 2014), Gob13: , (Gobble, 2013), Jas15: , (Kuner, 2015), Ste14: , (Vettori, 2014), Art03: , (Becke, 2003), Ang12: , (Smith, 2012), Ang12: , (Smith, 2012), Read More