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1.1      Background of the study

Since the beginning of recorded time, people have travelled, and during their travels, have needed shelter. This consequently encouraged the springing up of some accommodation in form of inns and small hotels and subsequent larger hospitality suites, to meet such needs. This thus hospitality is said to be the world’s‟ second oldest profession. Just after the civil war in 1970, there was a virtual absence of hotels and especially, the well known names in the international hotel industry in Nigeria. Not until the late 70‟s, during the oil boom era, did Nigeria start experiencing some growth in her hotel industry. In recent years however, Nigeria hosting of several major international events like the common wealth heads of government meeting (CHOGM), All African games, carnivals, meeting including the visits of two American presidents another presidents with their entourage, has led to the building of several more hotels in Nigeria, especially in the majorcities. This growth is not restricted to Nigeria alone, example, the American food service industry in 1979 had 110 billion dollars of busing for meals away from home and was infactthethirdlargestindustryinthecountryintermsofgrossretailsales,itemploys about 6 million people and had average of 125. 42 employees in 1995 and yet still needs many additional employees everyyear. Nigeria has since seen many important developments and changes in the relative improvement in the standard of living of a vast majority of working people. These improvements have come about as a result of many different factors including greater national productivity, stronger growth of economy, having more enlightened management and pressures from tradeunions. The contributions made by the hotel and catering industry to this general rise in standard of living are considerable, providing essential and leisure services, employment and wealthcreation. Hotel development in any country is a detailed process, requiring a high level of pre- planning prior to, during and after construction. There is still evidence in many places in Nigeria that this pre-planning has not adequately been carried out, resulting in some hotels that are unable to meet today’s and tomorrows ever-changing and increasing customer needs, including the fact that demand far outstrips supply, with major cities like Lagos having now shortages. Nevertheless, Tourism, of which the hotel and catering industry is a principal element is said to be a potential growth sector inNigeria. The conditions of employment of a large number of the industry’s staff have not kept peace  with  those  enjoyed  by  working  people  elsewhere,  in  spite  of  the   technical improvements within the catering industry itself. The reasons for the slow rate of improvement in the industry’s condition of employment are considerable including an understandable reluctance on the part of many proprietors and managers to adjust labor earnings according to improvements in the industry. Another reason could be that trade union movements exert little influence in most sectors of the industry, since moreover most people that make up the industry’s workforce are people who are not prepared to make a career out of thejob. The working conditions of the industry’s staff are for most cases unattractive. There are intrinsic problems which are unavoidable such as having to work long evenings and weekends. Other problems however can certainly be removed or reduced by determined management action. Such problems are staff reliance on tips, ignorance of workers on methods of calculating pay and the distribution of service charges, and management’s reluctance to involve staff in matters that affect their working lives. Management should therefore evolve a way of bringing out the best in these groups of ignored members of ourworkforce. In Nigeria, there are many organizations that provide catering services and which by their nature can be termed hotels. It is estimated that there exists about 550 hotels, inns and commercial guest houses in Nigeria by the year 2008 that employs between 10 and 250 people in line with their sizes. It is said that about 418 – 900 people were employed in 2003worldwide.


In an industry in Africa where there seems to have been a continued growth over the years, expertise is therefore expected to be limited and this constitutes aproblem. There and other problems are what the study wishes to consider and make recommendation where necessary. The problem reduction in experienced hands in this industry in the third world, seem to be the case due to managers reluctance to train its workers and employ able hands.Another problem lies in the fact that most workers in the industry have no clear cut channels to register their protests and grievances since management usually stifles unionizationagitation.The third problem concerns the issue of how the basic payment and benefits of workers is commensurate with their dedication to work and efforts. As employers are less responsive to changes in the economy with respect to adjustments of pay and benefit packages in line with economic growth as being experienced in most developing countries today, including Nigeria, they are left with employees whose dedication to work decreases; with huge reduction in their morals and motivation towork.We are also confronted with an environment where employees are usually kept in the dark without being enlightened on things they have the right to know. Example,paymentdetermination method, criteria for promotion (etc), but rather such issues are based on the whims of management. This constitutes aproblem.The last problem is the general belief by most people that jobs in the industry is one of last resort which they can take up when they do not find a “better” job to do. This thus discourages young people who may wish to have a career in the hotel and catering industry.

Having identified some of the problems, this study intends to find possible solutions to some ofthem.


To this end, this study aims at assessing the reasonability of all the entitlements due or payable to that part of the labor force that works fully or partly in the hotel and catering industry. The objectives of this study arethus;

v To examine the reasonability of other entitlements and benefits that is not part of the basicpayment.

v To assess the degree to which payment is commensurate with the efforts of employees in thisindustry.

v To evaluate the extent to which payment and benefits in this industry are similar to those oflike-industries.

v To examine the industrial relations existing in the hotel under study and its impact on worker’swelfare.

v To identify the impact of inappropriate payment and employee benefit schemes or their absence altogether, on employeeperformance.


For the successful completion of the study, the following research hypotheses were formulated by the researcher; 

H0:there is no reasonability of other entitlements and benefits that is not part of the basicpayment

H1:there is reasonability of other entitlements and benefits that is not part of the basicpayment

H02:there is no industrial relations existing in the hotel under study and its impact on worker’swelfare

H2: there is industrial relations existing in the hotel under study and its impact on worker’swelfare


The study is significant for the followingreasons:

v To change the belief by some hotel management in the country that the formation of unions by employees may mean more trouble forthem.

v To bring to the fore, the importance of having pay being commensurate with efforts and productivity since the bulk of workers in this industry are after psychological needs but work in environments supposedly the exclusive reserve of self actualized members of thesociety.

v Ability to help reinstate the industry belle to its supposed place as a major part of the economy and as a potential growthsector.


An attempt of evaluating the management of the human resource in the hotel and catering industry will be too vast and all encompassing. It is therefore the opinion of the researcher that the scope of this study is restricted to the administration of employee benefits and welfare schemes, that is all other entitlements due to employee other than payment, which by their nature may act as motivation for the staff of the organizations in theindustry.The study is confined to the entire staff of Royal Palace Hotel, Enugu. However, the findings of this study will apply to the hotel and catering industry in Nigeria. Major limitation to this study, is the limited worse by previous researchers on this subject, as wellasmanagement’shostilitytoquestionsandenquires.


Hotel- Anestablishmentheldout by the proprietor to offerfoodanddrinks, and if so required sleeping accommodation to anybody who is in a fit state to receive theservices.

Fraudulent hotel-A hotelthatcatersforpeople,mainly travelers, whiletheyare temporally away fromhome.

Residential  hotel-Thesearehotelsthatprovidefullapartmenttypeliving facilities as contrasted with simple quest norms that lack facilities for cooking and eating within individualunits.

Airport hotel-Thisservesto cater fortravelersthatusetheairport.

Employee-onewhoisusuallypaidmonthlythroughbankandare mostly managers and seniorsupervisors

Full timeoperatives:Usuallyworkingaround a 30-45 hourweekandwho know they have a guaranteed pay, on a monthly basis incash.

Resort  hotel :Hotelsituatedalongseaside’slakesorathernaturalgeographical features capable of being integrated as part of thehotel.

Casuals- Workers normally working on a   session basis,for instance on evening or afternoon, with no guarantees about future work, usually paid by one session in cash


This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study

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