The paper "Human Resource Management in the Hospitality Industry" is a great example of a Management Case Study. Maggie’ s Eatery is a medium-scale restaurant in New South Wales. Like most businesses in the hospitality industry, Maggie’ s eatery has permanent employees to attend to its core business functions such as finance, operations, marketing, and human resource, but usually employs casual employees to attend to most of the waiting jobs. The main reason why Maggie’ s eatery does not employ permanent employees for waiting jobs is that demand for restaurant services varies from one season to another.
Additionally, most available employees seeking such jobs perceive work in the hospitality industry as transitional, which they often take up after completing their college studies and as they await to get jobs in their preferred careers. In other words, the human resource department at Maggie’ s understand that most of the available talent is not trained in hospitality-related courses, and as such, their permanence in the job cannot be guaranteed. Strategically, therefore, Maggie’ s employ most of its workforce on a temporary basis and uses the Hospitality Industry Award 2010 as the basis for setting its wage rates. Legally, the HR department at Maggie’ s is guided by provisions in the Fair Work Act (FWA) 2009 Australia, which gives provisions for employers to use any of the four fair work instruments – i.e.
a workplace determination; an enterprise agreement; a modern award; or a Fair Work Australia (FWA) order to manage remuneration and benefits in the workplace (Australian Government 2012). As indicated above, Maggie’ s is currently using the Hospitality Industry (General) Award (the HIGA) in 2010. Notably, however, the terms of the modern award can change every 1st of July, and it is, therefore, the HR department’ s responsibility to ensure compliance.
Modern awards are set according to provisions set out in the Fair Work Act 2009 and as such, they contain a base rate, which all employers must meet. Appendices A and B indicate the remuneration and benefits requirements that Maggie must meet as part of the restaurant’ s observance of the HIGA 2010 for the permanent, temporary and casual workers respectively. The HIGA contain allowances and penalty rates, which include: A minimum weekly wage of $686.20 for level 4 employees – this means that an employee at that level should earn a minimum hourly wage of $18.06. Overtime hours performed between 1900-2400 hrs should earn the employee an additional $1.81 an hour, while overtime hours between midnight and 0700 hrs should earn an employee an additional $2.1 an hour. Meal allowances are pegged at $11.14 per week First Aid allowance is indicated as $8.23 per week, subject to an employee being a holder of a recognized first aid qualification, and based on their appointment by the employer to undertake first aid-related duty that may arise at the workplace. A forklift driver working in the hospitality industry is entitled to a $10.29 weekly additional allowance. Apart from casual employees, permanent and temporary employees who “ have a broken workday” are entitled to $2.26 and $3.43 allowance per day for any additional two hours and three hours worked respectively (Australian Hotels Association (NSW) 2011, p.
2). According to the HIGA, managerial employees in the hospitality industry are on the other hand entitled to a base annual salary of $38, 500.09 and a loaded annual salary of $48, 125.11.