In recent years, Korean economy which has boasted of its miracluous growth for the last two decades, has confronted with unsurmountable tidal wave of economic crash since the Korea War in the early 1950s. In order to survive, Korea has requested subst...
In recent years, Korean economy which has boasted of its miracluous growth for the last two decades, has confronted with unsurmountable tidal wave of economic crash since the Korea War in the early 1950s. In order to survive, Korea has requested substantial amount of money from the International Monatory Fund. The impact from this unexpected economic disaster is felt in every comer and cranny of our society. Every institutions including major corporations are busy with restructuring, downsizing and reengineering, First and formost, major firms become mean and lean. Many of them are interested in keeping in shape by laying off their staff in spade. In light of this background, the authors try to find the strategic utilization of contingent work force in the food service establishments in the Seoul area. The study, first of its kind in the field of restaurants in Korea, aims at delving into the theoretic aspects of the notion of contingent workers from the review of literature in other fields. And then equipped with the theoretical background, the aurthors try to examine the current status of the contingent work force in the restaurants. To do this, the researchers use a set of questionnaires to find out the hypotheses formulated for this study. Although there are some limitation in this study, the authors have come up with the following major findings. First, most of the restaurants are using contingent workers without any tactical or strategic labor plans in mind. Secondly, most of the restaurants are not systematic in hiring, training, staffing the contingent employees. Thirdly, many of restaurants considers the utilizing these workers from the economic viewpoints although they know the restaurant business is $quot;people`s business$quot;. The implication for these findings are: 1) Those engaged in the restaurant business, one of major hospitality industry, first of all, should understand the nature of business in which they are and have to approach the issue of contingent work force systematically. 2) With regards to the fringe benefits, most of the employees hire in this category are not entitled to them, thus demoralizing them, which leads them to an assorted of problems such as low productivity, absenteeism, and turnover etc. 3) As to the positive aspects, the restaurant owners/managers can manage the ever-increasing labor cost if they have the proper system in place. With respect to employees, they can make the most of their time by working part-time such as going to school or taking care of their children. 4) In regards to the relationship between the management and the labor in a large restaurant firm, there must be new rules and regulations with respect to hiring, staffing and placing the contingent workers. The aurthors try to shed a light on the nature and magnitude of the contingent work force in the food service establishments. It is recommended that the studies should be directed at more segmented restaurant markets such as fast food, family restaurant or deluxe/upscale full-service eateries in the future.