The Hospitality Industry is one of the biggest industry which helps in giving employment to the people. It has been declared that in spite the global crises this particular industry will never have the problem of credit crunch as people will never stop eating. It is also predicted that this industry will have its downfall almost at the bottom of all (United Nations World Tourism Organisation, 2009). Along with this it is also been declared as the 5th largest industry which gives employment to the people. The report by the British Hospitality Association commonly known as BHA has made a report which clearly says that the Hospitality industries contribution to the economy cannot be neglected. This contribution helps the UK markets economy grown. Sir David Michel(2010), the president of BHA said that the report which was prepared by the Oxford Economics department made it very clear that the economy of UK is backed by the hospitality industry. Along with this he also added that it has a huge amount of potential in creating jobs and this needs to be focused in order to help get the economy high. The report clearly states that its 5th largest industry which helps employment and employs around 2.4m people that is (1 in 13 of the total jobs). The report estimates that 400,000jobs in the hospitality industry and related services. There are 1.26m jobs in the restaurant industry, 750,000 in the contract catering industry and also in-housecatering, along with this the event management industry has 20,000jobs. The president also added that the hospitality industry makes a turnover of £90bn and this helps to contribute to the £46bn to the UK economy in GVA( this is wage and profits), this helps to achieve the £34bn in gross tax revenue. In short the BHA president, Sir David Michel wanted to say that, the 4.2% of the total investment done in the UK economy is done by the hospitality industry, by creating a sustainability of 61,000 jobs along with 39,000 of this jobs in construction and related activities. This report clearly states that it’s a huge industry which helps in creating employment, but the most important part is to retain the staff by fulfilling their needs and motivating them to stay back and work efficiently. For this the birth of Humana Resource Management came into being, more aptly known as HRM.

1. Dissertation
Importance of Motivation and Retention in the London
Restaurant Industry.
Type of Documents : Dissertation
No of Words : 11,000
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Introduction
The Hospitality Industry is one of the biggest industry which helps in giving employment to the
people. It has been declared that in spite the global crises this particular industry will never have
the problem of credit crunchas people will never stop eating. It is also predicted that this industry
will have its downfall almost at the bottom of all (United Nations World Tourism Organisation,
2009). Along with this it is also been declared as the 5th
largest industry which gives employment
to the people.
Importance of Hospitality Sector in United Kingdom
The report by the British Hospitality Association commonly known as BHA has made a report
which clearly says that the Hospitality industries contribution to the economy cannot be neglected.
This contribution helps the UK markets economy grown. Sir David Michel(2010), the president of
BHA said that the report which was prepared by the Oxford Economics department made it very
clear that the economy of UK is backed by the hospitality industry. Along with this he also added
that it has a huge amount of potential in creating jobs and this needs to be focused in order to help
get the economy high. The report clearly states that its 5 th largest industry which helps
employment and employs around 2.4m people that is (1 in 13 of the total jobs). The report
estimates that
400,000 jobs in the hospitality industry and related services. There are 1.26m jobs in the restaurant
industry, 750,000 in the contract catering industry and also in-house catering, along with this the
event management industry has 20,000jobs. The president also added that the hospitality industry
makes a turnover of £90bn and this helps to contribute to the £46bn to the UK economy in GVA
(this is wage and profits), this helps to achieve the £34bn in gross tax revenue. Industry, by
creating a sustainability of 61,000 jobs along with 39,000 of this jobs in construction and related
activities. This report clearly states that it’s a huge industry which helps in creating employment,
but the most important part is to retain the staff by fulfilling their needs and motivating them to stay
back and work efficiently. For this the birth of Human Resource Management came into being,
more aptly known as HRM.

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Human Resource Management
Human Resource management can be defined as, “A strategic and a coherent approach made to
the management of the organisations most valued assets – the people working in that organisation
collectively as well as individually contributing their share to achieve the goals and objectives of the
organisation.” The main purpose of the HRM department is to make sure that the organisation
achieves its success by the people they have employed. This department focuses on recruitment,
employee relationship, over all information about the company–orientation program for new staff,
manage the talent in the staff, staff motivation and its retention in the organisation. Its main role is to
see how the employee manages itself in the organisation by helping them in building the relationship
with other employees, payroll, compensation, termination, training and development, giving benefits
and help them grow along with the organisation. Human resource management plays an important
role in contributing effectively and productively to gain the companies objectives and aims
accomplished (G.A.Cole, 2002).
The job of HRM department is very tedious as along with its set responsibilities it has to also look
into the psychological aspect of the staff which is “Motivation” (the key factor which helps the staff
work for that particular organisation). That aspect is called “Retention”.
Motivation can be defined as the driver which helps in compiling the energy and get a persistent
and standard performance to achieve the desirable goal in the life, may be for oneself or for the
organisation one is working for. While Retention is the way one shows off why one is working for
that particular goal and that can be only achieved if one is motivated about it. This is a relationship
which holds them two together; they are inter-related with each other and help the organisation or
oneself to grow.
This work is going to be focused on these two words and related areas with them like what are the
factors which help them to build the organisation help it grow. The Restaurant industry is going to
be taken into consideration for this topic and to back it up “MotiMahal” restaurant in Covent Garden
will be considered as a case study, to understand what helps the staff to feel they are important
and make them stay back.

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Aim , Objectives and Research Framework
Aim:
To evaluate the importance of Staff Motivation and Staff Retention and their inter-relationship and
its effect on the operational level of the organisation in the Restaurant industry in London
(MotiMahal Restaurant)
Objectives:
1.1To critically evaluate the staff motivational theories and polices of staff retention in the
organisation.
1.2To analyse different drivers for the staff motivation in order to retain them in the organisation
by seeing the X-employees and the present employees in the organisation.
To recommend different policies and suggest corrective methods after studying the drawbacks and
the loop holes in these policies which are adapted by the MotiMahal restaurant in Covent Garden,
London.
Research Framework:
The first part of this Dissertation is the Introduction part which helps us to have an idea
about the importance of hospitality industry in UK, how it has been really helpful by
creating job opportunities for the people in this country along with two key words which
are very important in the dictionary of Human Resource Management Department. The
aim and objectives for this course work which will help in understanding this topic more
clearly.The case study of MotiMahal restaurant is used to help in understanding the
subject.

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The second part is the literature review where various authors are discussed on their
opinion about the staff motivation drivers and its effects on helping staff retention in
the organisations.
The third section is the research methodology, here how the research is carriedout and how
to evaluate it in the scale of positivism or Interpretivism and its importance and at the end
which one is used or its combination and why it has been used is discussed. In this part the
second set will be allocated to the interpretation and out come from the questionnaire and the
interview taken for the better understanding of this subject.
The last part will be the conclusion of the topic from the primary and secondary data collected
and the recommendations provided for the organisation to help their staff be motivated and
also to retain them in the organisation.

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Case study : “MotiMahal” , Covent Garden London
The MotiMahal is a nice fine dine relaxed gastronomic serving Indian restaurant located in the
heart of London’s West End. The restaurant is located in the hub of Covent Garden and theatre
land makes it very busy as people love to try the Indian taste. The restaurant has live kitchen and a
capacity to accommodate around 100 covers at one go, with a private dinning space in the
basement.
The restaurant has a chain and has its first outlet opened in Delhi in the year 1959. The specialty is
that they have made a history by inventing a world famous dish called “Murgh Makhani”. The food
here is very innovative and the taste of palate of people from here is kept in mind.
The food revolves around a road which is called “Grand Trunk Road”, this road starts from Kabul
in Afghanistan and ends in West Bengal. The chef has travelled this road and put in the dishes
from each location so the menu is very innovative as it doesn’t comprise of starter or main course.
This restaurant was opened in London in the year 2005 and from that time has made itself stand in
the race of top 10 restaurants serving Indian food according to the food critic guides
(Urbanspoon.com, 2011).
The service is the second crucial part after the taste of the food which is important as it helps to
maintain the standard of the restaurant. As it is located in a very busy area it needs good amount
of manpower. The restaurant has 2 managers, 3 supervisors, and a complete team of 14 staff
members in the front of house team. The management of this big team is very tedious as some are
full timers and some are part timers. The restaurant has a staff turnover problem to a great level.
The dissertation will be considering the front of house team as retention is a problem for the front
of house team as they are not on any contract or legal bond with the company as compared to the
kitchen staff. The kitchen staff is on work permit and they are all bonded by legal commitments with
the company.

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Chapter 2
Literature Review:
2.1 Introduction:
Literature review is the most important part of the dissertation work because it provides
literary evidences and facts to support the research problem. The literature review is mainly done
through having deep insight into different literary sources such as scholarly journal articles and
textbooks. In this context the following literature review is mainly focusing on the two major
aspects of human resource management namely employee motivation and retention. Though
these aspects of human resource management are very important in all the business industries,
yet in the following literature review the discussion of these aspects is done in relation to
restaurant industry of London. In this relation, the literature is mainly discussing the importance of
employees’ motivation and retention for restaurant industry of London. The major important points
of the dissertation are discussed under specific headings.
2.1.1. Importance of Employee Motivation in Business Organizations:
Employee motivation is the milestone in the success of the business organizations. In order to
have strong relationship with the employees is the major responsibility of the top management in the
business organizations. It is the expectations of all the top management people that all the
employees follow the rules and regulations of the business organization to their fullest degree.
According to Khan, Farooq and Ullah (2010), in the business organization employees expect to have
very good working condition in which they can have
all kinds of facilities such as fair wages, employment security, workplace safety and participative
decision making process. In order to address all the expectation of the management it is essential
for the management people to have a good understanding of the requirement of employee
motivation is essential aspect (Khan, Farooq and Ullah 2010).
Employees are mainly dealt under the human resource management department of the business
organizations. The HR plans and policies framed by the human resource managers are the
essential aspects for improving the skills of the employees as per the expectation of the
management people. In the service industry employee motivation is very much important aspect in
order to deliver quality services to the customers. All level of employees such as professional level
employees, highly skilled employees, unskilled employees, all want a sufficient degree of
motivation in the organizations in order to perform at the best level. All the service industries
including restaurant industry do consider improving the capabilities of their employees through

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motivations means. In order to attain high level of satisfaction of the customers in the service
industry the motivation of the employees is the key requirement in the service industries (Khan,
Farooq and Ullah 2010).
According to the author, among all the functions of the human resource management
department, the most important function is the enhancement and maintenance of work motivation
of the employees. To provide appropriate degree of assistance to the general managers or line
manager to make their employees fully satisfied with the job conditions provision of different kinds
of motivational styles is an essential aspect (Khan, Farooq and Ullah 2010). As per the views of the
author, establishment and provision of the effective rewards system for the employees is the most
effective source of employee motivation in the service organizations. This kind of monetary
motivation not only improves the degree of productivity of the employees but also enhances the
overall organizational performance to a good degree (Khan, Farooq and Ullah 2010).
According to Chew, Chang and Larzarevic (2006), higher level of motivation among the
employees make them cheerful in the organization and then they contribute their best performance
for the organization (Chew, Cheng and Lazarevic 2006). In the restaurant industry, being happiness
of the work staff is the key for the improved and effective performance of the restaurant company.
Motivation generated high spirit among the employees and these high spirited employees become
efficient enough to establish and maintain working relationship with their co-workers in a
harmonious way. With the motivation practices the morale of the employees can be kept to higher
degree. In this regard, it is the duty of the human resource management department in the
restaurant and hotel industries to maintain a pleasant work environment in the organizations for all
the employees in order to keep them highly motivated, because work environment influenced
through high degree of stress is always put negative impact on the performance of restaurant
industry Chew, Cheng and Lazarevic 2006).
Motivation is the link between improvement in the organizational setting and changing working
environment and employees’ performance. This is the key to sustain high degree of
competitiveness in the restaurant industry. Organizational changes are required to be managed in
the organizations in such a way that business managers as well as the employees become
equally motivated and have high spirit towards the organization. All the imposed organizational
changes and their related information having strategic relevance must be communicated to the
managers and employees in order to make them more congruent towards the new changes and
improvement made in the restaurant companies (Chew, Cheng and Lazarevic 2006). Through
such kind of motivation employees have acceptance of all the changes and result into improved
performance of the organizations. In this wa y, employees’ motivation does accentuate that in

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order to attain competitiveness in the restaurant industry it is the most sustained way.
In the restaurant industry whenever any decision is taken to apply new changes in the
organizations, the most important responsibility is possessed by the business managers for the
successful implementation of the changes and thus it is the duty of the manages to have effective
communication with the employees as it is the key to have high degree of employee motivation and
rapid improvement in the organizational performance (Chew, Cheng and Lazarevic 2006).
Managers being leaders in the restaurant industry should provide effective guidance to the
employees and direct them along the process of organizational changes followed by them being
aware of the importance of the employees motivation in the organization and follow receptive
approach to give equal value to the ideas of the employees in the new changes. Without providing
such kind of motivation the restaurant industry cannot expect high performance of the employees
(Chew, Cheng and Lazarevic 2006).
2.1.2 Employee Retention and Essential HR Practice in Restaurant
Industry:
Achievement of the human resource practices in an effective way give rise to the increased
degree of competitive advantage in the restaurant industry. It provides direct and economically
beneficial contribution in the overall organizational performance. It has been evident that the hotel
industry has been becoming complex on continuous basis and thus it requires attainment of
higher degree of skills from all level employees in the organizations. In this series, large numbers
of organizations in the restaurant industry are focusing on employee retention. According to
Tavitiyamana, Qu, ans Zhang (2011), considering the importance of the employees in the
restaurant industry, the main ways of employees retention which are being followed by the
business managers are offering of new ways of rewarding employees and provision of
education for them in order to increased their overall skills which are essential to improve
the organizational performance on regular basis. In addition to this training is also an
essential aspect for improving the level of performance of the customer services
(Tavitiyamana, Qu and Zhang 2011). In order to maximize the hotel performance in a
maximized way mobilization of the human resources is the most important and well
understood practise in the hotel industry (Tavitiyamana, Qu and Zhang 2011).

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The most important internal factor which influences the organizational performance to a great
level is employee training. Through the provision of the employee training their level of performance
can be increased to a significant level in the hotel industry (Tavitiyamana, Qu and Zhang 2011).