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Wages rate of Employees in Restaurant industries

University: De Montfort University Leicester

  • Unit No: 9
  • Level: High school
  • Pages: 22 / Words 5608
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 289
Question :

This sample will let you know about the:

  • What are the Wages rate of Employees in Restaurant industries?
  • Descrbe Impact of wage rate on performance of employees.
  • Explain Negative impact associated with wage policy for organizations.
Answer :
Organization Selected : N/A

INTRODUCTION

Background information

The wage rate is basically the amount of base wage which is being paid to the workers and employees per unit time or per unit output. The wage rate plays an imperative role within the organization and thus it varies from organization to organization. In the nutshell, wage rate is primarily money which is mainly paid to worker on the basis of time period worked by them or total output produced by them for the company. This output is basically measured by the efficiency of employees and thus affects their overall performance and productivity (Bradley, Postel-Vinay and Turon, 2017). Wage rate talking of the overall industry impacts the satisfaction and motivational level of employees to the great extent. Wage rate has direct correlation with both productivity and performance of employees and therefore have a great contribution in attainment of the organizational goals as well as objectives along with fulfillment of the individual goals. Employees form the core strength of each and every organization and thus are considered as main asset of the organization. The success of each and every company whether small or big is generally determined by the way in which employees does their work. Employees who remain motivated as well as satisfied from their work then this helps the organization to achieve their goals as the highly committed employees strive willingly to perform their best and thus works harder for organization. On the other hand, when employees remain under great pressure as well as are not satisfied with their organization then this dissatisfied employees become threat to the organization. The demotivated employees do not work effectively which affect company in negative way. This main route to the motivation and satisfaction of employees is the wage rate. Wage rate decided the productivity as well as performance of employees. It is highly essential for the organizations to decide the minimum wage rate for their employees as this influences the overall working of employees. Therefore, for inculcating a sense of motivation among employees and increase their overall performance organizations should ensure that every worker and employee receive equal pay for their work. Employees remain happy as well as satisfied with their organization when they realize that their organization and management provides the fair wages according to the amount of work done by them. The organization should provide fair and equal wages to their employees who are performing the job of same nature and thus have similar responsibilities. It is highly obvious that every worker works for providing his or her family a better living and appropriate standard of living thus when organization will not provide proper and equal wages to their employees then this will lead to decrease in motivational level and will affect the turnover rate of corporation. In this way, wage rate plays a great role within the employee productivity as well as their performance. The performance and productivity of the employees are generally measured by the amount of output which they generate and to what extent they contribute towards achievement of organizational goals and objectives. Wage rate mainly stimulates productivity and performance of employees in some or the other way. For example- when the organization or enterprise sets an equal pay structure of their workers and thus provides timely disbursement of their wages then a sense of commitment as well as trust is generated within the workers for management and thus they endeavors to give their best in order to achieve their individual as well as organizational goals. In addition to this, when organizations mainly offers the unexpected rise in the wage rate of the employees then the employees are more likely to become committed as well as enthusiastic towards their work and thus work hard for achieving this great rise in pay. When a greed emerge within the employees to attain this high rise being set by the organization then they work hard and this eventually enhances their overall productivity. Thus, in this way wage rate is one of the major motivating factor which helps to increase the productivity of employees. On the other hand, when organization exercises inequality and remains unfair in disbursing the wages to their workers then a sense of frustration and anger is filled within workers which results in their decreased performance as they do not strive to give their best for organization treating them unfairly. Like for example if organizations will provide unequal minimum wages to their employees as well as do not provide any hike within the wages then there remains no motivational factor for employees to work for organization and thus their performance automatically declines. In order to ensure the fairly disbursement of the wages to the employees, the most effective legislation is wage rate policy. This is the legislation as well as action taken by government for ensuring that each and every employees is equally paid for their work and hence are not discriminated on basis of their colour, sex etc. The main aim of this policy is to ensure economic as well as social well being of the employees. Although this is one of the most effective policy for providing security to the employees, there are various threats in this policy which affects employees as well as organization as a whole. Order assignment help from our experts!     

This report will basically throw the light on impact of the wage rate upon performance of the employees in Cut and Eat restaurant. This restaurant is mainly facing the problem of employee turnover as well as high attrition due to its minimum wages which are given to the employees. This report will show the importance of wage rate on productivity of the employees to Cut and eat restaurant.

Aim

To find out how the wage rate will affect work performance of the employees.

Objectives

To determine whether wages rate affect work performance of employees.

To analyze how wage rate can be connected for employee productivity

To critically analyze possible threats due to wage policy

Significance

The main importance of this research is that it will assist the large number of organizations as well as researcher in carrying out the study on similar topic. Firstly, this report will assist the organizations to know how the wage is directly linked with employee performance and will also assist them to know that on what basis the wage needs to be provided to different types of workers like part-time, full-time workers etc (Hirsch and Valadez, 2017). Besides this, the another major significance of carrying out this study is that it will help the organizations to design various strategies as well as tactics for retaining the employees and thus motivate the employees to high extent. Secondly, this research study will also help the large number of researchers for carrying out similar study. This research will act as the treasure of information to them where they can extract essential information as well as will get the evidence supporting the study. This will provide a great raw information to the researchers.

Problem statement

The issue of the impact of wage on employees is a huge concern which is being faced by various organizations as well as employees nowadays. Today, each and every employee requires a great amount of pay through which they can lead a luxurious life. This high wage also increases the motivational and satisfaction level of employees and thus has a direct relation with wage rate. But nowadays, organizations have failed to understand this direct relation and thus face the problem in setting the wage rate which will increase the productivity and performance of employees. Thus, this is the major problem which is being faced by large number of organizations (Prowse and Fells, 2016).

Structure of report

This research will mainly consist of six chapters. First chapter will consist of introduction and overview of the topic. Second chapter will cover literature review. Third chapter will consist of research methodology. Fourth and fifth chapter will cover data analysis and decision and result. Sixth which is last chapter will consist of conclusion (Chapman and Thompson, 2017).

LITERATURE REVIEW

Impact of wage rate on performance of employees

As per the view of Pailhé and Solaz (2019), The wage rate has a great role to play in the performance as well as productivity of employees. Wage rate is basically amount of the base wage which is being paid to the worker per unit time. The wage rate is not only measured in terms of time but also the output unit which the employees produce trough their work. The wage rate is directly linked to the performance of employees and thus is considered as the major determining factor for their productivity and overall performance. This affects it both negative and positive way.

According to Dube, Lester and Reich (2016), The major purpose of being an employee within the organization whether small or big is to earn the income in form of wages or the compensation. Wages forms the important element which helps to fulfill the basic necessities of employees like food, clothing, housing etc. Each and every organization set the amount of wages for their employees and this varies company to company. On the other hand, the performance of employees is generally measured the amount of output produced by them through their job and thus this is the activity which is highly crucial for organization. The performance level of mainly used as the measure of success of organization. The factors which are being used for measurement of the employee productivity involve work quantity, quality of the work as well as timeliness. The performance of employees is highly influenced by the amount of wages given by organizations to the employees. For example- when organizations provide equal wages to the employees who are engaged in same nature of the job and having similar responsibilities then this eventually increases the motivational level of employees. Thus, this increased motivational level and enthusiasm of the employees towards their work eventually increases their overall performance. This is because as organizations pays equal and timely wages to the employees then this increases the confidence and trust of employees towards the organization and thus they become highly committed towards their work and strive willingly to achieve the organizational goals. On the other hand, when organizations does not timely disburse the wages to their employees as well as does not equally pay to their employees for the same nature of duty and similar responsibility then this eventually decreases the motivation level of employees.

According to Chava, Danis and Hsu (2017), A sense of frustration and anger develops within the employees towards their employer as well as management of the organization. This often leads to the decrease in performance of the employees. This is because when there occurs the difference in payment of wages to each and every employee then the employees lose trust on organization as well as their enthusiasm towards work decreases. This certainly leads to the decrease in their performance level as well as overall productivity. Thus, in this way wage rate has a very important role to play in the quality of life which the employees leads and thus contributes to the high extent towards their work. The wage rate is all about the amount of money which is given by the organizations to their employees so that they can lead a better life. This decrease in employee performance due to ineffective wage rate also impact the success of organization.

As per the view of Card, Lemieux and Riddell (2018),When the employees will not work productively or will not intentionally strive for fulfilling the goals and objectives of organization then this will eventually affect its position in market as employees forms the core strength of each and every organization. On the other side of the spectrum, when employees will get better and high wage in order to access basic necessities then this will eventually increase their satisfaction level and along with this, employees will remain happy with the organization. This will ultimately affect the success of organization in positive way as employees will work will high commitment to provide better services to the customers and happy customers will at the end helps the organization to achieve competitive advantage.

According to Vom Berge and Frings, (2019), Thus, in this way wage rate affects the performance of the employees to a great extent. The issue of wages has become a great problem within the hospitality industry not in the terms of what wage rate needs to fix for the employees but in the terms that how to retain the employees. The organizations hire various types of employees. Some candidates join the organization on time internship basis, some employees work as part-time while some of the workers works on full-time basis. It is highly essential for the employees to retain the part-time and full-time workers as well as turn the interns into employees. This is only possible when they perceive the organizational culture has highly imperative as well as beneficial. For example- when the interns who works for the organization for fixed period of time on apprenticeship basis when perceive that the wages given to the employees as well as interns are fair and justifiable according to their work then their performance towards eventually increases.

As per view of Englmaier, Kolaska and Leider, (2016), On the other hand, when the full-time workers finds out that the wages given to them by the organization is equal to part-time worker even though they are working for long period of time as well as complex responsibilities then their performance eventually decreases. Their trust and confidence on the organization reduces and this ultimately results in the drop of their performance. The equal and fair wages when given to employees increases their overall satisfaction as well as motivational level and thus their productivity eventually increases. Along with this, when full-time workers finds out that they are receiving the wages equal to the part-time workers then their commitment towards the work increases and they feel valued. They perceive that organization places a great value on their needs and expectation and thus they does their work with greater enthusiasm and commitment. This at the end increases the performance level of the employees.

Impact of wage rate on employees productivity

According to Carbonnier and et.al.,(2019), Wage rate also plays a great role in the productivity of employees and is directly linked to it. Employee productivity is primarily assessment and analysis of the efficiency of worker and is generally evaluated in terms of output generated by them within a specific time frame. The output is associated with the organizational success as more the productivity, higher will be the goodwill of company in market. The employee productivity is highly linked and have a direct impact upon the productivity of employees. The wage rate not only enhances the necessities of living but also increase the satisfaction level of the employees. The productivity of the employees is generally measured in terms of the output generated by them thus higher output means higher productivity. When output of the employees increases then their contribution towards the firm revenue also increases and this in turn increases the demand of the workers. This idea of the productivity is generally partitioned within two divisions which are individual productivity as well as organizational productivity. Need Assignment Examples?

As per the view of Strömberg and et.al.,(2017), The individual dimension is mainly related with characteristics of personal qualities of individual and thus shows mental attitude and personal satisfaction of employees. Organizational dimensions on the other hand looks for the productivity within system and examines relation between input and output. The received wages are generally used by the employees for fulfilling their needs as well as demands and thus become the great factor for increasing their own satisfaction level. This concept of wage rate reveals its importance to the productivity for employees and the way in which they lead their life. The measurement of employee productivity shows that wages as well as performance and productivity of employees has positive correlation and thus affects their overall quality of life. The minimum wage rate set by the organizations helps the employees to understand that what are goals and objectives of the organization and what is expected from them in terms of quality and quantity.

According to Burauel and et.al.,(2020), The human productivity has great role for determining success of organization. This productivity is not only measured in terms of the outcome which is generated through them but also their attitude as well as mental well-being. Wage rate basically appears as reward or appreciation to the employees which seems to be really affecting their overall productivity as well as performance. When employee receives the rewards as well as benefits then this increases their motivational level as well as their satisfaction level and thus their overall commitment towards the work increases. The productivity of the employees also helps the organization to gain an edge over their competitors as well as achieve competitive advantage. Each and every position within the organization has different wage rate as well as base pay. The various departments of the organizations have different functions to perform and thus management sets different wage rate for these departments. These wages mainly depends on the complexity of the work as well as efforts which employees put in it. Thus, when employees do the complex job then they expect a fair and great wage for fulfilling their dreams.

According to Carr and et.al.,(2019), The wage rate is highly influenced by the type of workers which works within the organization. Organizations consists of various kinds of workers like part-time workers, full-time, apprentice etc. Organization has to set the wage rate for each and every kind of workers in order to retain them. An employee only tends to stay within the organization when they find that organization is fair with them in terms of various aspects like wages, culture etc. Organizations have to set the wage rate according to their responsibility as well as the time for which they are working. These wage rates affects the productivity of the employees to a great extent. When all the workers gets the wages according to their work then this overall increases their output level and thus their productivity increases. Wage rate is directly connected with the efficiency of the workers thus when their efficiency increases, productivity ultimately raises. Along with this, wages also increases the mental wellbeing of employees. They feel satisfied when organization treats them fairly and does not discriminate according to their age, sex, colour etc. This at the end raises the productivity level of employees. Besides this, the output of the employees raises when they finds out that organization put continuous efforts for rewarding them and appraising them. When organization continuously works on the wage of their employees and put high efforts for raising it frequently according to the working performance of employees then their productivity and output level ultimately increases. Thus, wage rate plays a great role and is highly essential for the personal development of employees. Wage rates fixed by the organizations for different types of employees have a great impact on their mind and this also increases their overall knowledge base. This increase in the knowledge base of the employees becomes a great contribution towards their productivity and thus affects them positively. The wage rate and employee productivity has the direct relation and increasing the wage rate, increases the productivity of the employees. Thus, in the end it has been found that it is highly crucial and essential for the organizations to give an utmost importance to the wage rate as this will help them to retain the employees for long period of time.

Negative impact associated with wage policy for organizations

According to the view of Sorensen and et al., (2019) there are various kinds of negative impacts or threats that are associated with wages policy. One of the aspect of wages policy i.e. minimum wages policy highly affect restaurant industry in many different ways. It is one of the threat or negative aspect for restaurant industry because restaurant industry is one such industry which is affected by market in which price competition is extremely high because of which overall revenue and profitability of the restaurant is affected. If there is rise in minimum wage policy and competition in the market also increases because of which they will be forced to reduce their overall price or provide discount to their employees then it will affect their overall profitability and revenue of the organization. Sorensen and et al., (2019) further explains that, Wages policy forces an organization to pay minimum amount of wages to their employees regardless of the fact that whether the organization is performing well or not affects overall organization in many. Restaurant industry is one such industry that get affected by this wage policy.

As per the view of Scicchitano, Biagetti and Chirumbolo, (2020) there is union wage policy which is based on a principle of fair day pay for fair day’s work. It is one of the most beneficial policy for employees but is a threat for organizations as this policy says that wages are attached to jobs rather than an individual’s attributes or capability. It is important for organizations to pay appropriate wages to their employees as per their job or designation regardless of the fact that attributes of an individual might not be suitable for the wages that are being paid to them. Wage policy has been designed in such a manner that it helps in reducing any kind of discrimination associated with the wages as well as also helps in reducing wages differentials. Scicchitano, Biagetti and Chirumbolo, (2020) further explains that, Many times, in order to reduce this difference and each worker gets benefit of this wage policy, union of workers is made within an organization so that all the workers or employees get appropriate and desired amount of wages. Many times, this union of workers becomes a threat for organizations if they do not focus on wages that are being paid to the workers.

As cited by Huffman, King and Reichelt, (2017) explains that, restaurants need to focus on bringing changes within their pricing strategies as well as within their employment as well because increase or decrease in minimum wages also affect overall operations of the organization. It is a threat for organizations because hospitality industry is one such industry in which more than 25 percent of workers or employees are paid below minimum wages and if any organization found doing such negative practise then it can impact their organization in many different ways. This is because laws or legislations associated with wages are quite strict. Huffman, King and Reichelt, (2017) also explains that, Policy makes need to understand all the legislation associated with minimum wages or appropriate amount of wages that are required to be paid to the employees. Not only this they also need to understand its impact on different level of the employees so that overall operations of the organization are not affected.

According to the view of Bhorat, Kanbur and Stanwix, (2017), food and beverage industry need to focus on these policies because changes in minimum wages impact different levels of organizations that can either increase or decrease their overall business. Restaurants need to bring within their pricing strategy as well as within their employment. Business owners of the restaurant might accept small changes within minimum changes but id there is requirement of large medications or changes then it can become a threat for organization as well as for other main operations of the restaurant. Policy makes need to continuously work on understanding and analysing effect of changes in wages policies and their impact on different level of business as sell as workers. This analysis can help policy makers to determine minimum level of wages as compared to overall operational cost, revenue generated and overall profitability earned by the organization. Bhorat, Kanbur and Stanwix, (2017), further recommends that Organizations should also be prepared if minimum wages or wages per day rate is increased drastically then what impact would have on business and ways in which they would reduce its effect on business.

Strategies to increase employee production

As per the view of Bender and et.al., (2018.), the concept of employee engagement which is the sustainable body of theory which have the empirical level of evidence in order to have motivations and productivity. In addition to that, employee engagements are considered to be paramount business circle which bring positive level of outcomes for the organization. On the other hand, the Maestas, Mullen and Powell, (2016) contradict that, there is major level of relationship of the employee in organization which have been materialized with major withdrawal behaviors along with commitment.

In addition to that’s the Riley and Bondibene, (2017) also supported the statement as the engaged workers used to appeared less dressed along with more level of personal setting. In addition to that the workers also used to have less health concerns as toking there fewer sick days were more productive, and stayed longer with their organizations than their less. Contradictory to that dissatisfied employees will have their major level of costing to the firm. In addition to that, the Weber Gonen and Spiegel, (2017) have the expected level of transformation in the economic level of atmospheres with the cutting across different borders along with implementation of advance level of technology which have ensuring intense competitive markets which is creating their enormous pressure.

As per the view of the Maestas, Mullen and Powell, (2016) , The productivity of the employees also helps the organization to gain an edge over their competitors as well as achieve competitive advantage. Each and every position within the organization has different wage rate as well as base pay. In addition to that’s their organization have their implementation of different strategies in order to have the motivation of worker with successful implication. The motivation is such as engaged counterparts e incorporation of retention strategy to provide training to employees, which encouraged employee decision making. On the the Riley and Bondibene, (2017) have that examined recruiting and retention practices for registered nurses in long-term care facilities and found the short span of training programs, low wages, regulations, and lack of support contributed to employee turnover.

On the other, the Weber Gonen and Spiegel, (2017) stated that wage rate and employee productivity has the direct relation and increasing the wage rate, increases the productivity of the employees. Hence in addition to that it has been found as crucial and essential for the firm to give an utmost importance to the wage rate as this will help them to retain the employees for long period of time. The Maestas, Mullen and Powell, (2016) contradict that wage rate plays a highly crucial as well as vital role in the employee productivity. The productivity of employees is generally measured by the level of output generated by them against the work done by them. In short, employee productivity is mainly addressees the efficiency of the workers for performing the particular tasks. Wage rate triggers the productivity in a highly different way. In addition to that when organization exercises inequality and remains unfair in disbursing the wages to their workers then a sense of frustration and anger is filled within workers which results in their decreased performance as they do not strive to give their best for organization treating them unfairly. It is one of the threat or negative aspect for restaurant industry because restaurant industry is one such industry which is affected by market in which price competition is extremely high because of which overall revenue and profitability of the restaurant is affected.

Hence, Under the wage policy, it is addressed every worker have the addressing of an equal pay performing similar duty and responsibility along with respective roles. Thus, when the workers will receive a high pay due to their outstanding performance, this will be concluded as their significant level of motivation which is output of differentiated training. This creates a sense of anger within other workers and this eventually decreases their productivity. As productivity is directly linked to the position of organization in market thus this will be a great threat to the organization. This decrease in productivity might impact the overall performance of organization in market.

Research Methodology

The research methodology is considered to be significant and systematic plan in order to have the conducting the research. The prices have the clear inclusion of the collecting information along with data of the purpose of respective level of decision making. The methodology has the major participation of the publication research, interviews around their survey of other research techniques with present and historical information. On the other hand, the purpose of chapter has clear explanations regrading different research methods along with methodology which is been implemented in research. The chapter had the clear explanation with there choice of research approach, research design with implemented advantage and disadvantages of the respective tool chosen. This is been followed with their respective ability regarding the produce of valid results with meeting aims and objectives set by respective dissertation. This chapter have major discussion on sample size along with sampling strategy along with data analysis methods. This have brief discussion on the respective level of ethical consideration along with limitation which has been posed by the research methodology as the well as different problems which is been encountered during respective research. Get Business Plan Assignment Help now!

Research & approach

In this dissertation have the used of the qualitative research strategy where the more research approach will be implemented has been that’s of interpretivism. As per the interpretivism approach in been implemented by their researcher in order to have synthesize as the fact which is deprived mainly through secondary resources or more qualitative in nature. On the other hand, the one of researcher who have one characters of interpretivism which is used to be governed by variety factor which are considered to be non-tangible in nature difficult to measure. So, this the purpose, the researcher has their closed the interpretative approach rather that’s their positivist and the pragmatist approaches, because abstract, non-quantifiable variables. This is helpful in creating more level of memorable experience as compare to respective traditional managements along with performing art managements. The researcher has the respective analysis of different perfuming techniques along with implication as the part business practices and objective of dissertation. These all elements are not considered easily measurable along with between different and complex connection which is founded to e more level of existence. In the comparison more interpretivism as most applicable.

Research & design

The research has their use of their qualitative researcher strategy which have the inclusion of their numeric and quantitative data. As there is more particularly level of applicability for the purpose of different research have several levels of connections with respect to different variables which is considered to be established through the method of interpretation. The researcher had used the tribulations which have providence of different opportunity in order to have reach to research objection along with implication to different viewpoints. This is helpful in getting the different viewpoint connection between different variables as the researcher have taken the account of there necessitated level of use in terms of questionnaire along with interviews of employees who are considered to be recipient of managements while performing their art model as well as amnagers.in distinctive way. In addition to that there in the validity of different advantages and disadvantages which is respective tools which have been implemented with respect to the research strategy.

CONCLUSION

For the purpose of research, the research has used there to take the combination of primary data and secondary data to have the proper analyzing of respective research. Each and every method is considered to be traditional problems which are been divided into two respective categories. The categories is as primary and secondary research as the former one is about there gathering the level of information gathered through self-conducted research methods, while secondary research is information gathered from previously conducted studies. Secondary research is usually where most research begins. As the former one is used to have the data which is accurate and restating to the aims and objective of research. On the other hand, the secondary data have been used to have their respective level of review with the use of journal article of various research. This have helped in mislaying the different business categories in identifying the research gap. In addition to that’s this will be in the validity of different advantages and disadvantages which is respective tools which have been implemented with respect to the research methods.

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