The topic of the study is factors affecting Hotel and catering industry (A case study of Merry house Idah Igala). The researcher used both the primary and secondary data in the course of the study. The primary data was collected through the instrument of questionnaires and observation. The secondary data was sources through textbooks, journals, magazines and Libraries. The research design for the study was the survey research. The population of the study was 82 employees of the establishment. The sample size of the study was 63 employees derived using the Yaro Yamani formula for the determination of sample size. A total number of 63 questionnaires were distributed and returned thereby having a hundred percent return rate. The researcher used sample percentage and chi-square as statistical tool for the analysis. The study revealed that the majority of the workers in this establishment are ignorant on pay determination method which shows that management does not involve workers in the machinery or the mechanics of payment determination. The workers role is reduced to that of a rigid adherence to rules and regulations. The researcher recommended among others that broad personnel policy study be embraced by employers in the hotel industry.
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 major cities. This growth is not restricted to Nigeria alone, example, the American food service industry in 1979 had 110 billion dollars of bussing for meals away from home and was in fact the third largest industry in the country in terms of gross retail sales, it employs about 6 million people and had average of 125. 42 employees in 1995 and yet still needs many additional employees every year. 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 trade unions. 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 wealth creation. Hotel development in any country is a detailed process, requiring a high level of preplanning 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 in Nigeria. The conditions of employment of a large number of the industry’s staff have not kept pace 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 labour 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 the job. 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 our workforce. 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 2003 worldwide.
1.1.BACKGROUND OF THE STUDY:
The background setting of this project research is drawn from Igala local government of Kogi state with merry house Idah used as a case study.
The home of the Igala people is situated east of the river Niger and Benue confluence and astride the Niger in Lokoja, Kogi state of Nigeria. The area is approximately between latitude 6°30 and 8°40 north and longitude 6°30 and 7°40 east and covers an area of about 13,665 square kilometres (Oguagha P.A 1981) The Igala population is estimated at two million, they can also be found in Delta, Anambra and Edo States of Nigeria. The Igala language is closely related to the Yoruba and Itsekiri languages.
In Igala tradition, infants from some parts of the kingdom, like Ankpa receive three deep horizontal cuts on each side of the face, slightly above the corners of their mouths, as a way of identifying each other. However, this practice is becoming less common.
The Igalas are ruled by a figure called the “Attah”. The word Attah means ‘Father’ and the full title of the ruler is ‘Attah Igala’, meaning, the Father of Igalas (the Igala word for King is Onu). Although “Attah” means “father”‘, female rulership is recognized and Igala has had female rulers in the past (Boston 1968). Among the most revered Attahs of the Igala kingdom are Attah Ayegba Oma Idoko and Atta Ameh Oboni. According to oral tradition, Attah Ayegba Oma Idoko offered his most beloved daughter, Inikpi to ensure that the Igalas win a war of liberation from the Jukuns’ dominance. Attah Ameh Oboni is known to be very brave and resolute. He is revered for his stiff resistance of the British and his struggles to uphold some ancient traditions of the Igalas. When he got wind of a plan to depose and exile him by the British, he committed suicide by hanging himself to forestall the plan; he is regarded by most Igalas as the last real Attah Igala.
1.2.STATEMENT OF PROBLEM:
In the hotel and catering industry in Nigeria especially the Merry house Idah where there seems to have been a continued growth over the years, expertise is therefore expected to be limited and this constitutes a problem. 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 unionization agitation.
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 to work.
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, payment determination method, criteria for promotion (etc), but rather such issues are based on the whims of management. This constitutes a problem.
The last problem is the general belief by most people that jobs in the Merry house hotel Idah 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 of them.
1.3.OBJECTIVE OF THE STUDY:
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 are thus.
i.To examine the reasonability of other entitlements and benefits that is not part of the basic payment.
ii. To assess the degree to which payment is commensurate with the efforts of employees in this Merry house Idah.
iii. To evaluate the extent to which payment and benefits in this industry are similar to those of like-industries.
iv.To examine the industrial relations existing in the hotel under study and its impact on worker’s welfare.
v.To identify the impact of inappropriate payment and employee benefit schemes or their absence altogether, on employee performance at Marry house Idah.
The following research questions will be raised:
Budget and budgetary control, both at management and operational level looks at the future and lays down what has to be achieved. Control checks whether or not the plans are realized, and puts into effect corrective measures where deviation or shortfall is occurring. This study examines how budget and budgetary control can be a control measure in an organization using the Catholic Church lagos, as considered in this study. We reviewed the control measure of the performance of Catholic Church in previous and recent times. We found out that the control level of the Church depends much on the budgetary system in achieving its objectives and operation. An empirical investigation was undertaken, using the simple correlation analysis techniques specifically the Pearson Product Movement Correlation.. Following our findings, we advise the NPO managers and CEO operators to pay more attention to their budgetary control system, for those without an existing budgetary control system, they should put one in place, and those with a dummy or passive budgetary control system, It is time they re- establish a result- oriented budgetary control system as it goes a long way in repositioning the Church from its creeping in its performance and control measure level to an improved high capacity utilization point.
Budgeting has come to be accepted as an efficient method of short-term planning and control. It is employed, no doubt, in large business houses, but even the small businesses are using it at least in some informal manner. Through the budgets, a business wants to know clearly as to what it proposes to do during an accounting period or a part thereof. The technique of budgeting is an important application of Management Accounting. Probably, the greatest aid to good management that has ever been devised is the use of budgets and budgetary control. It is a versatile tool and has helped managers cope with many problems including inflation.
The Chartered Institute of Management Accountants, England, defines a 'budget' as under: " A financial and/or quantitative statement, prepared and approved prior to define period of time, of the policy to be persued during that period for the purpose of attaining a given objective." According to Brown and Howard of Management Accountant "a budget is a predetermined statement of managerial policy during the given period which provides a standard for comparison with the results actually achieved."
Budgetary Control is the process of establishment of budgets relating to various activities and comparing the budgeted figures with the actual performance for arriving at deviations, if any. Accordingly, there cannot be budgetary control without budgets. Budgetary Control is a system which uses budgets as a means of planning and controlling.
According to I.C.M.A. England Budgetary control is defined by Terminology as the establishment of budgets relating to the responsibilities of executives to the requirements of a policy and the continuous comparison of actual with the budgeted results, either to secure by individual actions the objectives of that policy or to provide a basis for its revision.
A non-profit organization is a group organized for purposes other than generating profit and in which no part of the organization's income is distributed to its members, directors, or officers. Non-profit corporations are often termed "non-stock corporations." They can take the form of a corporation, an individual enterprise (for example, individual charitable contributions), unincorporated association, partnership, foundation (distinguished by its endowment by a founder, it takes the form of a trusteeship), or condominium (joint ownership of common areas by owners of adjacent individual units incorporated under state condominium acts). Non-profit organizations must be designated as nonprofit when created and may only pursue purposes permitted by statutes for non-profit organizations. Non-profit organizations include churches, public schools, public charities, public clinics and hospitals, political organizations, legal aid societies, volunteer services organizations, labor unions, professional associations, research institutes, museums, and some governmental agencies.
Non-profit entities are organized under state law. For non-profit corporations, some states have adopted the Revised Model Non-Profit Corporation Act (1986). For non-profit associations, a few states have adopted the Uniform Unincorporated Non-Profit Association Act (See Colorado 7-30-101 to 7-30-119). Some states exempt non-profit organizations from state tax and state employment programs such as unemployment compensation contribution. Some states give non-profit organizations immunity from tort liability (see Massachusetts law giving immunity to a narrow group of non-profit organizations) and other states limit tort liability by enacting a damage cap. State law also governs solicitation privileges and accreditations requirements such as licenses and permits. Each state defines non-profit differently. Some states make distinctions between organizations not operated for profit without charitable goals (like a sports or professional association) and charitable associations in order to determine what legal privileges the respective organizations will be given.
Some NPOs may also be a charity or service organization; they may be organized as a nonprofit corporation or as a trust, a cooperative, or they exist informally. A very similar type of organization termed a supporting organization operates like a foundation, but they are more complicated to administer, hold more favorable tax status and are restricted in the public charities they support. Their mole is not to be successful in terms of wealth, but in terms of giving value to the groups of people they administer to.
1.1 BACKGROUND OF THE RESEARCH
There is hardly any aspect of human Endeavour that does not have economic implication because economics as a science is essentially concerned with the study of scarce resources, there allocation, management and utilization. This reality is what gave birth to a business budget in the 20th century. The term budget was first put to use in Europe to refer to first, a leather bag used to carry statement of revenue and expenditure, and later the term was referred to as the statement itself and not just the container.
Today, a budget play a greater role in the planning and control process of basically all organization, be it private or public sector, ministries and non profit-making organizations.
Organizations developed plans on how to go about its future operations. While control measures are used to correct any deviation from the plans. The budgetary process is an integral part of both planning and control. Budgeting is making plans for the future, implementing those plans and monitoring activities to see whether they conform to plans. To do this successfully, it requires maximum commitment by the top management, corporative and motivated middle management and staff, and well organized reporting system.
The importance of budget to households, business organization can never be over emphasized. Most families or members of households have at point developed a budget to guide them in allocating resources over a specific period of time. The family budget is a planning tool, but it also serve as control behaviour of family members by setting limits on what can be spent within each budget category. Budget enables house to know how much of their money is being spent. Such a situation can easily lead family into unexpected debt and severe financial difficulties.
Likewise, budgets play a similar planning and control role for managers within business units and budgets are a central part of a design and operation of management accounting system. As in household budget, budget in business organizations reflects in quantitative term, how to allocate financial and other resources to each organizational subunit, based on its planned activity objective. Budgeting activity to organizational unit can reflect how well unit managers understand the organizational and provides an opportunity for the organization’s top planners to correct misperceptions about the organization’s goal. Budgeting also aims at coordinating the organization’s many activities. For example, budget show the effect of sales level or volume on purchasing, production, administrative activities etc.
In reality, budgeting is the most widely used accounting tool for planning and controlling the activities of organizations. Budgeting system helps managers to forecast. By looking into the future and planning managers are able to anticipate and correct potential problems before they arise. Managers can then focus on exploiting opportunities instead of fighting fires as one observer said ‘‘few businesses plan to fail, but many of those that flop fail to plan’’ (Horngren, et al, 2002; 178).
The research is deeply concerned with the extent to which management of Brewery companies seize the advantages associated with budgeting process. The researcher is interested in finding out if managers of Brewery companies effectively and efficiently design and implement realistic budgets. Do they use budgets as a potent tool for resource allocation and control?
The choice of Catholic Church as a case study for this research work is informed by the industry’s relatively long-life span of production. Secondly, the relative low level of production at the industry has also prompted the researcher to investigate its budgetary system.
1.2STATEMENT OF RESEARCH PROBLEM
Budgeting and budgetary control is one of the essential functions of every organization (business, Nonprofit or governmental). Survival and growth of any corporate organization depends on effective budgetary control measures. This implies that if budgets are effectively designed and implemented, an organization can achieve massive results.
On the other hand, in Nigeria today, there are incidences of corporate failure in most organizations. It appears managers are not taking advantage of the budgetary process to the success of the organizations.
The behavioral or human aspect of budgeting is equally worrisome; how do people’s attitudes affect the budgets, and in turn, how do budget affect people’s behaviour? The questions intrigued social scientist to engage in extensive study about the human factors involved in budgeting.
Moreover, the research is aimed at knowing if budgeting and budgetary control is playing a significant role in controlling measure in the organization, to investigate the problems associated with the designing and implementation of budgets in organization, to find out whether poor performance and low productivity and development in some of the NPO is attributed to poor implementation and finally, to investigate the human aspect of budgeting.
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