A

COMPREHENSIVE PROJECT REPORT

ON

STUDY OF HR PRACTICES AND PERFORMANCE

MANAGEMENT SYSTEM AT WELCOM HOTEL
VADODARA
Submitted To
C.K Shah Vijapurwala Institute of Management
IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE
DEGREE OF

MASTER OF BUSINESS ASMINISTRATION

In Gujarat Technological University
UNDER THE GUIDANCE OF

Company Guide

Faculty Guide

Ms. Dipti Barot

Ms. Ranjita Banerjee

(HR Executive)

(Asst. Prof. CKSVIM)

Submitted By
Bhavita Vin (2059)
Radhika Shah (2044)
MBA SEMESTER III
Affiliated to Gujarat Technological University Ahmedabad
2015

Preface
In recent years, the rapidly changing environment has put pressure on the
Human Resource Management to justify its existence. As such the Human
Resource function must demonstrate that it can add value and deliver
results to the organization and its stakeholders.
It means the human resource management practices should and retain
excellent employees who, in turn, will enable a firm to provide high quality
products and services.
However, the contribution of HR management to the firm's performance is
being debated and number of scholars has stressed the need to view
human resource management from strategic perspective.
The emphasis has been on linking Human Resource Management (HRM)
practices on strategy in order to increase the organizational
competitiveness and effectiveness. At present there is a dearth of research
linking human resource practices with firm's performance.
As an attempt to contribute to this area, the present study aims to explore
the impact of high performance human resource practices on turnover,
productivity and financial performance among the corporate in India and
Singapore.

Acknowledgements
We would also like to take this opportunity to express our deepest gratitude
to our director, Dr. Rajesh Khajuria, Director, CKSVIM.
We owe our indebtedness and gratitude to Ms.Dipti Barot (HR Executive)
Mr. Chirag Vispute (Asst. HR), Mr. Anurag Mishra (Personnel Manager)
and to the entire staff of Welcom Hotel for their wonderful support.
We would like to thank Ms. Ranjita Banerjee. (Asst. Prof., CKSVIM) for
her great help and support without her this project would never have taken
this shape.

Bhavita Vin
Radhika Shah

Table of Contents
Sr.
No.

Particulars

Pg.
Nos

Semester

PART-1 GENERAL INFORMATION

1

About the Company / Industry / Sector

Overview of World Market Overview of
Indian / Gujarat Market Growth of the
Company / industry / Sector

III

About major Companies in the Industry

21

III

Product Profile (Major Products)

23

III

25

III

6
7
8
9
10

PART II PRIMARY STUDY

Introduction of the Study
4.1 Literature Review
4.2 Background of the Study
4.3 Problem Statement /Rationale / of
the Study
4.4 Objectives of the Study
Research Methodology
5.1 Research Design
5.2 Source/s of Data
5.3 Data Collection Method
5.4 Population
5.5 Sampling Method
5.6 Sampling Frame
5.7 Date Collection Instrument
Data Analysis and Interpretation
Limitations of the study
Results and Findings
Conclusion
Bibliography

32
33

33
34

III

37

IV
IV
IV
IV
III/IV

60
61
62
63

LIST OF TABLES
Table No.

Title

1
2
3

Monthly Hotel occupancy rate

Efforts are taken to generate awareness amongst the employees

about the organizations need
HR Policies are up to the mark.

5
6
7
8
9
10

Number of Hotels and Restaurants in India

Organizations HR executives are fully aware of the business
needs and strategies.

Employees are rotated from one job to another.

Job rotation is necessary.
The organization has a formal policy of career planning and
development.
Job is secured at work place.
Authority and Responsibility is passed on to the employees

Pg.
No.
14
18
37
38

39
40
41
42
43
44

appropriately.

11
12
13
14
15

The organization conducts exit interviews.

The organization encourages employees to suggest product/process
improvement.
The organization has been managing change by integrating the HR
issues with the business strategies
Performance appraisal system is extended to all members of the
organization.
Performance standards are carefully developed on the basis of
employees opinion.

45
46
47
48
49

16

The Performance management system helps me to communicate to my

team what is expected from them.

50

17

The organization has provision for employee recognition programs

and awards.

51

18
19
20
21

I am satisfied that I am given consistent and fair rating.

52
53
54
55

22
23
24
25

I am comfortable with conducting performance reviews.

Performance review techniques impacts on employees productivity.
The documentation associated with performance management is clear
and helpful.
Appropriate feedback is given to all the employees regarding their
performance.
Age
Gender
Years of service at WelcomHotel.

56
57
58
59
5

LIST OF GRAPHS
Graph
Title
No.
1
Direct Contribution of tourism and hospitality to GDP
Organizations HR executives are fully aware of the business needs and
2
strategies.

3
4
5
6
7
8
9
10
11
12
13
14

Efforts are taken to generate awareness amongst the employees about

the organizations need
HR Policies are up to the mark.
Employees are rotated from one job to another.
Job rotation is necessary.
The organization has a formal policy of career planning and development.
Job is secured at work place.
Authority and Responsibility is passed on to the employees appropriately.
The organization conducts exit interviews.
The organization encourages employees to suggest product/process
improvement.
The organization has been managing change by integrating the HR issues
with the business strategies
Performance appraisal system is extended to all members of the
organization.
Performance standards are carefully developed on the basis of employees
opinion.

Pg.
No.
19
37
38

39
40
41
42
43
44
45
46
47
48
49

15

The Performance management system helps me to communicate to my team

what is expected from them.

50

16

The organization has provision for employee recognition programs and

awards.

51

17
18
19
20
21
22
23
24

I am satisfied that I am given consistent and fair rating.

52
53
54
55
56
57
58
59

I am comfortable with conducting performance reviews.

Performance review techniques impacts on employees productivity.
The documentation associated with performance management is clear and helpful.
Appropriate feedback is given to all the employees regarding their performance.
Age
Gender
Years of service at WelcomHotel.

PART 1
GENERAL
INFORMATION

CH: 1
ABOUT THE INDUSTRY
A Brief History of India's Hotel Industry
Before World War 11, most hotels in India were developed in locations that
were frequented by the British and Indian aristocracy. This period saw the
development of hotels being undertaken by individual British and Indian
entrepreneurs, with only a few companies owning hotels in India, such as
The Taj Group--Indian Hotel Company (owned by J. R. D. Tata) and
Faletti's Hotel, East India Hotel Oberoi Group.
The important hotels that were built during India's British period were:
The Rugby, Matheran (1876)
The ~aj Mahal Hotel, Mumbai (1900)
The Grand, Calcutta (1930)
The Cecil Hotels, Shimla and Muree (1935)
The Savoy, Mussoorie (1936)
India gained independence in 1947, and the hotel industry had a period in
which no hotel development took place. Upon his return from the NonAligned Movement Conference in 1956, Late Pundit Jawaharlal Nehru,
then Prime Minister of India, recognized that tourism could be an engine for
8

the country's economic growth and was inspired to build quality hotels in
India for visiting foreign dignitaries. This led to the first-ever government
investment in the hotel industry with the building of the Ashoka Hotel in
New Delhi.
The India Tourism Development Corporation (ITDC) was set up in 1966 as
a corporation under the Indian Companies Act of 1956, with the merger of
Janpath Hotel India Ltd. and India Tourism Transport Undertaking Ltd.
Today, ITDC provides a complete range of tourism services, including
accommodation,

catering,

and

entertainment

and

shopping,

hotel

consultancy, duty free shops, and an in-house travel agency. The

government gave the tourism industry another boost when it created the
Ministry of Tourism and Civil Aviation in 1967, separating it from the
Ministry of Transport and Shipping, thereby recognizing that tourism was
not simply about transporting people from point A to point B but had a
much wider role to play in the nation's economy.
Concurrently, Rai Bahadur M. S. Oberoi, Chairman of East India Hotels
Ltd., was expanding his empire by constructing New Delhi's first modern
multi-story hotel, which was franchised to U.S.-based Inter-Continental
Hotels. The portfolio of Oberoi hotels consisted of
The Cecil, Shimla;
The Oberoi Grand, Calcutta;
The Oberoi Clarks ,Shimla;
The Oberoi Palm Beach;
Gopalpur on the Sea.
9

The Taj Mahal Hotel in Bombay was the next to follow this franchising trend
in 1970 when it adopted an Inter-Continental hotel franchise for its new
hotel

in

Bombay.

Simultaneously,the

Oberoi

Tower

Hotel

under

construction in Bombay entered into a franchise and management

agreement with Sheraton. Holiday Inn also made its entry into India through
franchising its hotel project in Bombay.
This was the beginning of the methodical planning, designing, decorating,
and furnishing of hotels in India, along with the installation of systems for
operating various departments in a hotel. The training of managerial and
other personnel was an important franchise benefit, and the first few
batches of managers trained by the Inter-Continental
Hotel Company set a new trend of competent professional hotel
management for India's hotels that continues to influence and guide India's
hotel industry today. Before the marketing impact of hotel franchising and
hotel management by expatriate managers could be assessed and could
proliferate, however, there was a surge of nationalism in India, resulting in
the elimination of management service as an integral part of franchise
agreements.

10

OVERVIEW OF THE WORLD MARKET

Definition of Hotel
The Oxford English Dictionary online defines a hotel as
an establishment providing accommodation, meals and other services
for travellers and tourists, by the night.
A hotel is an establishment that provides paid lodging on a short-term
basis. The provision of basic accommodation, in times past, consisting
only of a room with a bed, a cupboard, a small table and a washstand
has largely been replaced by rooms with modern facilities, including
en-suite bathrooms. Additional common features found in hotel rooms
are a telephone, an alarm clock, a television, a safe, a mini-bar, and
facilities for making tea and coffee. Luxury features include bathrobes
and slippers, a pillow menu, twin-sink vanities, and Jacuzzi bathtubs.
Larger hotels may provide additional guest facilities such as a swimming
pool, fitness centre, business centre, childcare, conference facilities and
social function services.
Size
The global size of the hotel industry is not as easy to quantify as one
might imagine. Data on the size of the global hotel market is scarce,
subjective (with regard to what constitutes a hotel) and is only published
with relative infrequency outside the US.
11

There is also a range of factors that cloud the issue:

The hotel industry ranges from very small privately owned family
businesses to major international groups with over 600,000 rooms.
The industry covers the whole of the globe from the US to the smallest
of islands.
There is no official definition of hotel nor is there an internationally
recognised grading system.
Countries each have their own systems of quantifying the industry and
grading it.
The International Hotel Industry report (2009),Mintel using UN World
Tourism Organization (UNWTO) data, estimated that in 2008, the
number of rooms in hotels and similar establishments was 20.1mn
and that it had been growing at an estimated rate of 2.2% over the
previous five years. This estimate, however, was based upon previous
estimates.
In the same report, the actual breakdown of rooms was as shown
below:
Europe 36%
Americas 35%
Asia Pacific 24%
Middle East 2%
Africa 2%

12

However it is important to note that UNWTO statistics include not just

hotels but also inns, bed & breakfasts and other similar establishments,
thus overestimating the size of the actual hotel industry.
In 2009, STR Global estimated that the global hotel industry was more
in the area of 11mn rooms, but this just included hotels as opposed to
hotels and similar establishments2
Recent research by MKG Consulting estimated that the US rooms
accounted for 65% of total room count, which corresponded with WTO
and Mintel estimates.

13

Table: 1 Monthly hotel occupancy rates worldwide from 2012

to 2015, by region
Year

Asia Pacific Americas Europe

Middle East and Africa

Sep 13

68.5%

63.5%

77.1%

58.1%

Oct 13

72.5%

64.7%

73.2%

63.1%

Nov 13

72.4%

58%

67.3%

64.6%

Dec 13

66.3%

50.5%

56.5%

59.6%

Jan 14

62.1%

52.5%

52.8%

62%

Feb 14

67.1%

60.6%

60.8%

67.4%

Mar 14

69.2%

65.2%

64.9%

66.9%

Apr 14

68.8%

65.4%

68.3%

67%

May 14

67.6%

66.9%

74%

63.5%

Jun 14

66.4%

71.2%

75.1%

61.3%

Jul 14

70%

73.2%

73.9%

49.3%

Aug 14

72.6%

71.6%

75.7%

64.3%

Sep 14

69.2%

65.7%

79.4%

65.5%

Oct 14

72%

67.7%

74.7%

67.6%

Nov 14

72.2%

59.3%

68.2%

67.4%

Dec 14

67%

52.7%

59.3%

61.9%

Jan 15

64.7%

54.5%

54.4%

62.8%

Feb 15

64.6%

62.3%

62.6%

67.2%

Mar 15

68.7%

66.6%

66.5%

68.7%

Apr 15

69.6%

66.5%

69.5%

66.2%
14

May 15

68.1%

67.1%

74.1%

65.1%

Jun15

66.2%

72.6%

78.1%

56.1%

Jul 15

70.7%

74.8%

77.3%

55.1%

Aug 15

72.7%

70.6%

77.1%

62.9%

Sep 15

68.1%

67.6%

80.7%

64.9%

:-(http://www.statista.com/statistics/206825/hotel-occupancy-ratein-2011-by-region/)
SOURCE

15

OVERVIEW OF INDIAN MARKET

The Indian hospitality industry has emerged as one of the key industries
driving growth of the services sector in India. The fortunes of the hospitality
industry have always been linked to the prospects of the tourism industry
and tourism is the foremost demand driver of the industry. The Indian
hospitality industry has recorded healthy growth fuelled by robust inflow of
foreign tourists as well as increased tourist movement within the country
and it has become one of the leading players in global industry.
Trends in the Industry:
Budget Hotels as the next trigger
Medical Tourism
New avenues of growth
Shifting focus to Tier II and Tier III cities
Marketing Strategies

Emergence of Mixed Land Usage

Huge spurt of international brands

Innovative operating models
The Indian hotel industry is highly fragmented with a large number of small
and unorganized players accounting for a lion's share. The major players in
the organized segment include Indian Hotels Company Ltd, Hotel Leela
Venture Ltd, EIH Ltd, ITC Hotels and ITDC.
The industry is likely to experience robust growth on the back of rising
disposable incomes and favorable industry statistics. The market is
estimated to reach US$ 30 billion by 2015.

16

GROWTH OF THE INDUSTRY

India has the potential to become the number one tourist destination in the
world with the demand growing at 10.1 per cent per annum, the World
Travel and Tourism Council (WTTC) has predicted.
The WTO (World Travel Organisation) predicts that India will receive 25
million tourists by year 2015.
Major attractions in India are the world's highest mountains, miles of
coastline with excellent beaches, tropical forests and wildlife, desert safari,
lagoon backwaters, ancient monuments, forts and palaces, adventure
tourism and, of course, the Taj Mahal.
India currently has over 200,000 hotel rooms spread across hotel
categories and guest-houses and is still facing a shortfall of over 100,000
rooms (source: FHRAI).
The country is witnessing an unprecedented growth in hotel constructions
and will be adding almost 114,000 hotel guest rooms to its inventory over
the next five years. (source: HVS)
The earlier setbacks in global tourism have strengthened the Department of
Tourism's resolve to promote India's tourism through aggressive marketing
strategies through its campaign 'Incredible India'.
The 'marketing mantra' for the Department of Tourism is to position India as
a global brand to take advantage of the burgeoning global travel and trade
and the vast untapped potential of India as a destination.

17

Table: 2

Number of hotels and restaurants in India in 2014:

Hotel category

No. of Hotels

No. of Rooms

5 star deluxe/5 star

165

43, 965

4 Star

134

20, 770

3 Star

505

30,100

2 Star

495

22,950

1 Star

260

10,900

Heritage

70

4,200

Uncategorised

7,078

Total

8,707

1,32,885

Restaurants

12,750

(Source :- Shodhganga)
What the future holds:
Despite the global recession, inflation, terrorism and other factors, the
overall outlook for the Indian hospitality market is optimistic and will remain
so says HVS
India remains the second fastest growing economy in the world and the
economic growth of the country is at 7.1% of the GDP as declared by Mr.
Pranab Mukherjee, Finance Minister, India.
The Tourism Ministry, Government of India, has set a target of 10
million tourists to India by 2010
The WTO (World Travel Organisation) predicts that India will receive 25
million tourists by year 2015

18

Growth of Tourism and Hospitality in India

Tourism in India accounts for 6.8 per cent of the GDP and is the third largest foreign
exchange earner for the country
The tourism and hospitality sectors direct contribution to GDP totalled US$ 44.2 billion
in 2015
Over 200615, direct contribution is expected to register a CAGR of 10.5 per cent
The direct contribution of travel and tourism to GDP is expected to grow 7.2 per cent
per annum to US$ 88.6 billion (2.5 per cent of GDP) by 2025

Graph :-1

19

ABOUT THE INDUSTRY

WELCOME HOTEL

A Grand Revival
In an ambience steeped in history, complemented by a richness of culture
acquired through centuries, Welcome Hotel, is a leading 5 star hotel in
Vadodara which brings you world class luxury with the warmth of Indian
hospitality in an experience that is unmistakably grand. This 5 star
business hotel presents a range of cuisines, accommodation and
recreation options that are comparable with the best in Vadodara.

Built around the swimming pool in style of the step wells of Gujarat, this
contemporary structure offers modern furnishing and comforts, with the
azure waters of swimming pool cooling environment during the hottest
months. Vadodara, a rapidly developing industrial city, where the past is
still alive in its traditional handicrafts, its culture and legends. WelcomHotel
Vadodara the citys only five star hotel, is located in the heart of the
downtown business and entertainment district.

Elegant and distinguished

In Vadodara, just 8 km away from the airport, this majestic 5 star luxury
hotel reaffirms the grandeur and popular architectural styles of Gujarat.
A luxurious business hotel built to capture the essence of Vadodaras rich
history, Welcomhotel Vadodaras building was conceived as an oasis in
20

the busy downtown locality. The design and architecture reflects

adaptations of various facets of Gujarat the Sunken Courtyard in the
middle of the hotel is inspired by the Vaovdi, the fenestration in the
external faade is based on the Jain temples which is one of the most
popular architectural styles in Gujarat.

Refined artistry
Among the most luxurious of Vadodaras 5 star business hotels. The hotel
has some splendid work of art by Indias renowned artist, Anjolie Ela
Menon. Art in general has been important to city as the royal family were
great collectors and patrons of fine art.

This gracious and comfortable hotel exuding warmth from the very first
glimpse. Light heartedly, portraits of a business man and his wife are
encased in window-like frames, reminding visitors that they are indeed in
the state of Gujarat. .

A world of comfort and luxury, with responsibility

Welcome Hotels reputation as Vadodaras leading 5 star luxury hotel is
anchored in many factors. Having the distinction of being the citys only
Five Star Hotel, it has been the hotels ongoing endeavour to meet and
exceed the expectations of our guests. The hotel offers 133 room including
6 suites of plush accommodation and top-of-the-line Business, Conference
and Leisure facilities tailored to the requirement of the discerning and
modern day business traveller.
21

CH: 2
MAJOR PLAYERS IN HOTEL INDUSTRY
The Indian Hotels Company
The Indian Hotels Company and its subsidiaries are collectively known as Taj Hotels
Resorts and Palaces, recognized as one of Asia's largest and finest hotel company.
Incorporated by the founder of the Tata Group, Jamsetji N Tata, the company opened
its first property, The Taj Mahal Palace Hotel, Bombay, in 1903. The Taj, a symbol of
Indian hospitality, completed its centenary year in 2003. Taj Hotels Resorts and Palaces
comprises 59 hotels at 40 locations across India with an additional 17 international
hotels in the Maldives, Mauritius, 76 Malaysia, United Kingdom, United States of
America, Bhutan, Sri Lanka, Africa, the Middle East and Australia. The company has
had a long-standing commitment to the continued development of the Indian tourism
and hospitality industry. From the 1970s through the 1990s, the Taj played an important
role in launching several of India's key tourist destinations. Working in tandem with the
Indian government, the Taj developed resorts and retreats while the government
developed roads and railways to India's hidden treasures.

The Leela Group

Founded in 1957 by Capt. C.P. Krishnan Nair, the Leela Group is engaged in the
business of ready-made garments and luxury hotels and resorts. The Leela Kempinski,
Mumbai and The Leela, Goa and the newly opened Leela Palace Kempinski New Delhi
are some of the best hotels in India, and have also won considerable international
acclaim.

The Bharat Hotels Group

The Bharat Hotels group is a major player in Indias tourism and hotel sector. It operates
its hotels under THE GRAND banner and its present portfolio of hotels incorporates
FOURTEEN

luxury

hotels

in

the

five-star

deluxe

segment.

These

include

InterContinental The Grand hotels in New Delhi, Mumbai, Goa & Srinagar and The

22

Grand Ashok Bangalore, The Grand Laxmi Vilas Palace Udaipur and The Grand
Temple View Khajuraho.

The EIH Ltd (The Oberoi Group)

Asian elegance is the key to running hotels, if you ask EIH (better known as The Oberoi
Group). The company owns and operates about 20 luxury hotels, about 10 mid-range
hotels, and two inland cruises; The Oberoi Group operates primarily in India, but also in
Australia, Egypt, Indonesia, Mauritius, and Saudi Arabia. Most of the company's luxury
properties bear the Oberoi banner.

Jaypee Hotels Ltd

Jaypee Hotels Limited primarily engages in the ownership and operation of hotels in
India. The company owns three Five Star Deluxe Hotels, namely Jaypee Palace Hotel
at Agra, and Jaypee Vasant Continental and Jaypee Siddharth Hotel at New Delhi. It
also manages the operation of the hotels Jaypee Residency Manor at Mussoorie and
Jaypee Green Resorts. In addition, Jaypee Hotels involves in construction operations.
The company is headquartered in New Delhi, India. Jaypee Hotels Limited is a
subsidiary of Jaiprakash Associates Limited.

23

CH: 3
PRODUCT PROFILE- SERVICE INDUSTRY
Facilities & Amenities provided on complimentary basis :

Hotel Facilities:
24 hour concierge service
24 hour currency exchange
24 hour room service
Access to Spa, Salon and Health Club
Access to Swimming Pool
Valet and self-parking facilities

In Room Facilities:
Internet usage at the Business Centre for 30 minutes per day
Electronic Safe
Multi-channel television
Daily newspaper
Guest stationary
Bottled mineral water
Tea/Coffee maker
Personal care amenities

24

PART II
PRIMARY
STUDY

25

CH: 3
INTRODUCTION OF THE STUDY
LITERATURE REVIEW

A. V. Ramana Rao (May 1999), in his article mentions that in order to be globally
competitive and successful, Indian organizations will have to practice international
business strategies as well as international human resource strategies because
ultimately it is the human resource that provide competitive edge that is difficult to
imitate. Human aspect of management can contribute substantially to better employee
relations and higher productivity. A. V. Ramana Rao in his article "Higher productivity
through better HRM" (Indian management, May, 1999). He feels that human being is
wanting in nature and human demands are infinite, so an organization needs to analyse
properly which needs of its employees are to be carefully considered and fulfilled.
Organization can ensure its current and continuing profitability byntaking care of its
people.

Mr. R. K. Rao (Oct-Dec 1999) in his article Management by values (personnel today,
vol. xx, no.3, oct-dec; 1999) has mentioned about the importance of ethics in an
organization and management. According to him an organization that follows a set of
guiding beliefs and communicates those ethical values to its employees to follow them
and thus institutionalize as a culture, can win and sustain loyalty of the customers for
longer period of time.Also, such organizational culture has a positive impact on the
performance of its employees.
(Mohanty, 2009).True cost of employee turnover has long been underappreciated and
underestimated by human resource managers and all stakeholders entangled in the
issue .

26

Wolf and Zwick (2008) found that employee involvement and financial incentives and
inducement were often honored as efficient way for increasing the organizational
productivity. They revealed that employee job involvement lifted up the organizational
productivity, but monetary incentive scheme did not do so.
Schneider and Bowen (1993) postulated that by recruiting and selecting right people,
training them to work in the market segment allocated to them, rewarding them
according to the objective achieved by them would get benefits to the organization.
Efficient service deliveries were the result of the quality of employee improvement and
welfare, including environment for work, training and development, job design, and
attention to the employee interests. The outcome of the analysis pointed out that the
service approach reflecting the magnitude of employee development derived employee
outcomes such as efficiency and productivity and employee job satisfaction. The
outcomes of employees due to such activities were significantly correlated with the
customer satisfaction and, thus, with the business performance, but only some
associations to financial performance were significant.
Delaney and Huselid (1996) categorized the human resource management practices
into the factors that improved employee skills, motivated and inspired the employees,
and arrangement design of the workplace. They concluded that at least the following
four human resource management dimensions could be acknowledged in his work,
these were, employee feedback, their training and development, workplace design, and
the employee pay system
According to Khatri (1999), people are one of the most important factors providing
flexibility and adaptability to organizations.
Rundle (1997) argues that one needs to bear in mind that people (managers), not the
firm, are the adaptive mechanism in determining how the firm will respond to the
competitive environment.
Several scholars have noted that managing people is more difficult than managing
technology or capital

27

Barney (1991); Lado and Wilson (1994) are of the opinion that those firms that have
learnt how to manage their human resources well would have an edge over others for a
long time to come because acquiring and deploying human resources effectively is
cumbersome and takes much longer
Wright et al., (1994) believes that HRM can help firms improve organizational behavior
in such areas as staff commitment, competency and flexibility, which in turn leads to
improved staff performance
Koch and McGrath (1996) in their study revealed that in order to develop a sound
HRM system , the organization should have effective Human Resource Management
practices.HRM practices refer to organizational activities directed at managing the pool
of human resources and ensuring that the resources are employed towards the
fulfillment of organizational goals
Schuler & Jackson (1987); Schuler &MacMillan (1984); Wright & Snell, (1991), in
their articles stated that HRM practices may differ from one organization to another and
from one country to another.
Many researches on HRM practices have been conducted from time to time and
researchers have identified different practices by different names.
Kok Jan de et al., (2003), refer to certain sets of HRM practices influenced by the HRM
profession as best practice,or high-performance (Huselid, 1995), formal (Aldrich
and Langton, 1997; de Kok and Uhlaner, 2001; Heneman and Berkley,1999),
sophisticated (Golhar and Deshpande, 1997; Hornsby and Kuratko, 1990; Goss et al.,
1994; Wagner, 1998) or as professional (Gnan and Songini, 2003; Matlay, 1999).
Pfeffer(1994; 1998), argued the most appropriate term is Best HRM Practices .
Chandler and McEvoy (2000) , one of the lingering questions in HRM research is
whether or not there is a single set of policies or practices that represents a universally
superior approach to managing people . Theories on best practices or high commitment
theories suggest that universally, certain HRM practices, either separately or in
combination are associated with improved organizational performance. Researchers
28

have also found that those well-paid, well motivated workers, working in an atmosphere
of mutuality and trust, generate higher productivity gains and lower unit costs
Boxall, 1996; Lowe and Oliver, 1991; Pfeffer, 1994 believe that several attempts have
been made from time to time by different researchers to identify the type of HRM
practices in different sectors.
Pfeffer (1994) identified 16 practices which denote best practice. This was later refined
to the following seven practices:
1. Employment security
2. Selective hiring
3. Self-managed teams/team working
4. High compensation contingent on organizational
performance
5. Extensive training
6. Reduction in status difference
7. Sharing information
Redman and Matthews (1998) identify an HRM bundle of key practices which support
service organizations quality strategies, these being:
1. Careful recruitment and selection, for example, total
quality recruitment, zero defects recruitment, right
first time recruitment.
2. Extensive remuneration systems, for example, bonuses
available for staff willing to be multi-skilled.
3. Team working and flexible job design, for example,
29

encouraging a sense of cohesiveness and designing

empowered jobs.
4. Training and learning, for example, front line staff having
enhanced interpersonal and social skills.
5. Employee involvement, for example, keeping employees
informed of key changes in the organization.
6. Performance appraisals with links to contingent reward
systems, for example, gathering customer feedback to
recognize the work by employees over and above their
expected duties, which in turn is likely to lead to a bonus
for staff.

30

TVS Rao: Performance management system (PMS) is the heart of any people
management " process in organization. Organizations exist to perform. If people do not
perform organizations don't survive. If people perform at their peak level organization
can compete and create waves.
Armstrong and Baron (1998) defined it as A strategic and integrated approach to
increasing the effectiveness of organizations by improving the performance of the
people who work in them and by developing the capabilities of teams and individual
contributors
(Lockett,). Performance management is The development of individuals with
competence and commitment, working towards the achievement of shared meaningful
objectives within an organisation which supports and encourages their achievement
According to Walters. Performance management is the process of directing and
supporting employees to work as effectively and efficiently as possible in line with the
needs of the organization.
Alford and Beatty, are of the opinion that the evaluation or appraisal of the relative
worth to the company of a man's services on his job
Flippo suggests Performance appraisal is a systematic periodic and impartial rating of
employee's excellence in matters pertaining to his present job and to his potentialities
for a better job."
Kaplan and Nortons (1992)There are various ways in which these performance
measures can be categorized, ranging from
balanced scorecard through to framework of results and determinants. The rationale
underlying this article is that performance measures need to be positioned in a
strategic context, as they influence what people do. Measurement may be the
process of quantification, but its affect is to stimulate action.
Leong et al. (1990) claim that it is widely accepted that the manufacturing task,
and hence the key dimensions of manufacturings performance, can be defined in
31

terms of quality, delivery speed, delivery reliability, price (cost), and flexibility. Despite
this assertion, however, confusion still exists over what these generic terms
actually mean.

32

BACKGROUND OF THE STUDY

The hospitality industry, especially the hotel business, is a relatively new, and rapidly
growing industry in India. The last two decades resulted in a significant expansion of the
local hotel market, as well as of operations of international hotel chains. Thus,
competition among actors in the industry, along with the companies need to
differentiate their offerings from those of competitors, has risen. Branding strategies are
increasingly used by companies for achieving better positioning on the market, as well
as for gaining a competitive advantage and customers loyalty. Knowing that global
brands play an important role for firms visibility on the market, it is important to
recognize, and understand the factors influencing marketing management- and
branding-related activities. To accomplish this, an in-depth understanding behind the
structure and branding strategies of international hotel chains should be developed.
The hospitality industry has seen tremendous change over the last decade. Hospitality
business today is an integral part of the human life whether in a commercial scale or in
small scale. Although, the hospitality industry is seen to be booming as new structures
are being put up every day, it is yet to strike a major impact in the country as compared
to other hospitality businesses like the hotels in different African countries. The work
sought to access the impact of quality on hospitality businesses, the participation of staff
and employees in contributing to quality of services, to identify the link between quality
and customer satisfaction, and to find out the benefits of ensuring quality in the
hospitality business.

33

PROBLEM STATEMENT OF THE STUDY

Management Problem: - Effective HR practices and Performance management

system, in particular, have a direct impact on the productivity of the employees and so
to know the feedback of employees.
Research Problem: - To Study HR Practices and Performance management System
at Welcom Hotel.

OBJECTIVES OF THE STUDY

1. To know HR Practices at Welcom Hotel.

2. To know Performance Management System at Welcom Hotel.

3. To know the feedback of employees for HR Practices and Performance Management

System at Welcom hotel.

4. To suggest effective strategies to enhance the HR Practices and PMS at Welcom Hotel.
.

34

CH: 5
RESEARCH METHODOLOGY

Research design : Descriptive

Sources of data : Primary Data & Secondary Data
Primary Data The primary data for doing this project was obtained from the company
officials by administering a questionnaire. The information has been collected by way of
interactions with employees in the hotel through the questionnaire
Secondary Data: Secondary data are those data which have been collected from the
companys manuals, official records, various files operating procedures and booklets.
Data collection method
Survey Method
Population
Middle level staff to higher level employees of Welcom Hotel
Sample Size : 100
Sampling method
Non-Probability convenience sampling method
Sampling Frame
Respondents from the population of Welcom Hotel
Data collection Instrument
Structured Questionnaire

35

DATA ANALYSIS AND INTERPRETATION

Table 3:- Organizations HR executives are fully aware of the business needs
and strategies.
Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree
3 Neutral
4 Agree

44

88

50

100

5 Strongly agree
Total
Graph 2

120
100
100

88

80
60
No. of Employees
40
20

Percentage
4

0
12
34 Agree
5
Strongly Disagree Neutral
Strongly
Disagree
agree

Total

Here HR Executives are 88% agree that they aware of the business needs and strategies.

36

Table 4:- Efforts are taken to generate awareness amongst the employees
about the organizations need.
Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree
3 - Neutral

4 Agree

46

92

50

100

5 Strongly agree
Total

Graph 3
120

100

92

100
80
60

No. of Employees

40
20

Percentage
6

0
12
34 Agree
5
Strongly Disagree Neutral
Strongly
Disagree
agree

Total

Here 92% of the employees agree that efforts are taken to generate awareness about the organizations
need. 6% of employees are neutral. 2% of employees are strongly agree with the statement.

37

Table 5:- HR Policies are up to the mark.

Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree
3 - Neutral
4 Agree

35

70

5 Strongly agree

15

30

Total

50

100

Graph 4
120

100

100
80

70

60
40

No. of Employees

30

Percentage

20
0
12
3 - Neutral 4 Agree
5
Strongly Disagree
Strongly
Disagree
agree

Total

Here 70% of employees are agree with the statement.30% of employees are strongly agree.

38

Table 6:- Employees are rotated from one job to another.

Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree

3 - Neutral

4 Agree

42

84

50

100

5 Strongly agree
Total
Graph 5

120
100
100

84

80
60
No. of Employees
40

Percentage

20

0
1Strongly
Disagree

2
3 - Neutral 4 Agree
5
Disagree
Strongly
agree

Total

Here 84% of employees agree that their job rotation is done. 6% of employees are neutral and strongly
agree. 4% of employees are disagreeing with the statement.

39

Table 7:- Job rotation is necessary.

Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree
3 - Neutral

4 Agree

43

86

10

50

100

5 Strongly agree
Total

Graph 6

120
100
100

86

80
60
No. of Employees
40
20

Percentage
4

10

0
12
3 - Neutral 4 Agree
5
Strongly Disagree
Strongly
Disagree
agree

Total

Here 86% of employees are agree with the statement. 10% of employees are strongly agree with the
statement. 4% of employees are neutral.

40

Table 8:- The organization has a formal policy of career planning and
development.
Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree
3 - Neutral
4 Agree
5 Strongly agree
Total

46

92

50

100

Graph 7

120
100

100

92

80
60
No. of Employees

40
20

Percentage
8

0
12
3 - Neutral 4 Agree
5
Strongly Disagree
Strongly
Disagree
agree

Total

Here 92% of employees are agree that organization do have a formal policy for career planning and
development. 8% of employees are strongly agree with statement.

41

Table 9:- Your job is secured at work place.

Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree
3 - Neutral

4 Agree

44

88

50

100

5 Strongly agree
Total

Graph 8
120

100

100

88

80
60
No. of Employees

40

Percentage

20

0
1Strongly
Disagree

2
3 - Neutral 4 Agree
5
Disagree
Strongly
agree

Total

Here 88% of employees are agree that their job is secured. 8% of employees are strongly agree with the
statement. 4% of employees are neutral.

42

Table 10:- Authority and Responsibility is passed on to the employees

appropriately.
Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree

3 - Neutral

20

40

4 Agree

22

44

50

100

5 Strongly agree
Total

Graph 9
120

100

100
80
60

40

44

No. of Employees

40
20

Percentage
8

0
1 - Strongly
2
3 - Neutral 4 Agree
Disagree Disagree

5
Strongly
agree

Total

Here 44% of employees are agree that authority and responsibility is passed on to the employees
appropriately. 40% of employees are neutral with the statement. And 8% of employees are strongly
agree. And remaining 8% of employees are disagreeing with the statement

43

Table 11:- The organization conducts exit interviews.

Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree
3 - Neutral

4 Agree

40

80

14

50

100

5 Strongly agree
Total

Graph 10
120
100
100
80
80
60
No. of Employees
40
20

Percentage
6

14

0
1 - Strongly
2
3 - Neutral 4 Agree
Disagree Disagree

5
Strongly
agree

Total

Here 80% of employees are agree with the statement. 14% of employees are strongly agree. 6% of
employees are neutral.

44

Table 12:- The organization encourages employees to suggest product/process

improvement.
Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree
3 - Neutral

4 Agree

42

84

10

50

100

5 Strongly agree
Total

Graph 11

120
100
100

84

80
60
No. of Employees
40
20

Percentage
6

10

0
12
3 - Neutral 4 Agree
5
Strongly Disagree
Strongly
Disagree
agree

Total

Here 84% of employees are agree with the statement. 10% of employees are strongly agree with the
statement. 6% of employees are neutral.

45

Table 13:- The organization has been managing change by integrating the HR
issues with the business strategies.
Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree

3 - Neutral

4 Agree

40

80

12

50

100

5 Strongly agree
Total
Graph 12

120

100

100

80

80
60
No. of Employees

40
20

Percentage

12

0
1Strongly
Disagree

2
3 - Neutral 4 Agree
5
Disagree
Strongly
agree

Total

Here 80% of employees are agree with the statement. 12% of employees are strongly agree. 6% of
employees are disagree with the statement. 2% of employees are neutral.

46

Table 14:- Performance appraisal system is extended to all members of the

organization.
Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree
3 - Neutral

10

20

4 Agree

28

56

5 Strongly agree

12

24

Total

50

100

Graph 13

120
100
100
80
56

60

No. of Employees
40
20

24

Percentage

20
0
12
3 - Neutral 4 Agree
5
Strongly Disagree
Strongly
Disagree
agree

Total

Here 56% of employees are agree that performance appraisal system is extended to all members. 24%
of employees are strongly agree with the statement. 20% of employees are neutral

47

Table 15:-Performance standards are carefully developed on the basis of

employees opinion.
Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree
3 - Neutral

16

4 Agree

28

56

5 Strongly agree

14

28

Total

50

100

Graph 14

120
100
100
80
56

60

No. of Employees
40
20

28

Percentage

16

0
12
3 - Neutral 4 Agree
5
Strongly Disagree
Strongly
Disagree
agree

Total

Here 56% of employees are agree that performance standards are carefully developed on the basis of
employees opinion. 28% of employees are strongly agree with the statement. 16% of employees are
neutral.

48

Table 16:- The Performance management system helps me to communicate to

my team what is expected from them.
Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree

3 - Neutral

4 Agree

34

68

18

50

100

5 Strongly agree
Total

Graph 15
120
100
100
80

68

60
No. of Employees
40
20

Percentage

18
8

0
12
3 - Neutral 4 Agree
5
Strongly Disagree
Strongly
Disagree
agree

Total

Here 68% of employees are agree with the statement. 18% of employees are strongly agree. 8% of
the employees are disagree. And remaining 6% of employees are neutral.

49

Table 17:- The organization has provision for employee recognition

programs and awards.
Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree
3 - Neutral

10

4 Agree

35

70

5 Strongly agree

10

20

Total

50

100

Graph 16
120

100

100
70

80
60

No. of Employees

40
10

20

Percentage

20

0
12
Strongly Disagree
Disagree

34 Agree
5
Neutral
Strongly
agree

Total

Here70% of employees are agree with the statement. 20% of employees are strongly agree. 10 of
employees are neutral.

50

Table 18:- I am satisfied that I am given consistent and fair rating.

Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree
3 - Neutral

4 Agree

39

78

16

50

100

5 Strongly agree
Total

Graph 17
120
100
100

Iamstifedh gvncositadfrg.

60
40
20
0

Iamstifedhgvncoafirt.

78

80

No. of Employees
Iamsatifedtha Iamgivenconsiten andfair ating.

16
6

Percentage

IamstifedthaI mgivencositenadfiratng.

I am satisfied that I am given consi tent and fair ating.

12
34 Agree
5
Strongly Disagree Neutral
Strongly
Disagree
agree

Total

Here 78% of employees are agree with the statement. 16% of employees are strongly agree. 6% of
employees are neutral.

51

Table 19:- I am comfortable with conducting performance reviews.

Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree
3 - Neutral

4 Agree

35

70

5 Strongly agree

12

24

Total

50

100

Graph 18
120

100

100
70

80
60

No. of Employees

40
20

24

Percentage

0
12
34 Agree
5
Strongly Disagree Neutral
Strongly
Disagree
agree

Total

Here 70% of employees are agree with the statement. 24% of employees are strongly agree. 6% of
employees are neutral.

52

Table 20:productivity.

Performance

review

Ratings

techniques

impacts

No. of Employees

on

employees

Percentage

1 - Strongly Disagree
2 Disagree
3 - Neutral

11

22

4 Agree

32

64

14

50

100

5 Strongly agree
Total

Graph 19
120

100

100
80

64

60
40
20

No. of Employees
22

Percentage

14

0
12
3 - Neutral 4 Agree
5
Strongly Disagree
Strongly
Disagree
agree

Total

Here 64% of employees are agree with the statement. 22% of employees are neutral. 14% of
employees are strongly agree.

53

Table 21:- The documentation associated with performance management is

clear and helpful.
Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree
3 - Neutral
4 Agree

37

74

5 Strongly agree

13

26

Total

50

100

Graph 20
120
100
100
80

74

60
No. of Employees
40

26

Percentage

20
0
12
34 Agree
5
Strongly Disagree Neutral
Strongly
Disagree
agree

Total

Here 74% of employees are agree with the statement. 26% of employees are strongly agree.

54

Table 22:- Appropriate feedback is given to all the employees regarding their performance.

Ratings

No. of Employees

Percentage

1 - Strongly Disagree
2 Disagree
3 - Neutral

4 Agree

33

66

5 Strongly agree

15

30

Total

50

100

Graph 21
120

100

100
80

66

60
20

No. of Employees

30

40

Percentage

0
12
3Strongly Disagree Neutral
Disagree

4
5
Agree Strongly
agree

Total

Here 66% of employees are agree with the statement. 30% of employees are strongly agree. 4% of
employees are neutral.

55

Table 24:- Age.

Ratings

No. of Employees

Percentage

Below 25

15

30

25-35

27

54

35-45

12

45 and above

50

100

ToTal

Graph 23
120
100
80
60
40
20
0

100
54

No. of Employees

30
12

Percentage
4
ToTal

Here the maximum no. of employees at WelcomHotel is of the age group 25-35 years of age i.e 54% and 30%
employees are of less than 25 years of age.

56

Table 25:- Gender

Ratings

No. of Employees

Percentage

Male

39

78

Female

11

22

Total

50

100

Graph 24
120
100
80

100
78
No. of Employees

60
40

Percentage

22

20
0
Male

Female

Total

Here 72% of employees are male. 22% of employees are female.

57

Table 26:- Years of service at WelcomHotel.

Ratings

No. of Employees

Less than 2 years

Percentage

2-4 years

27

54

5-7 years

18

36

50

100

8 years and above

ToTal

Graph 25
150
100
100
54
50
8

No. of Employees
36

Percentage
2

0
ToTal
Here 54% employees are working at WelcomHotel from 2-4 years and 36% employees are from 5-7 years.

58

LIMITATIONS OF THE STUDY

The following are the limitations of the study.
The response of the employees in giving information is based on their perception.
The study was limited to a brief period only. Also due to the busy schedule of the
employees, responses were delayed and subsequently less time was spent in analyzing
the results.
The questionnaire included objective answers, so it was difficult to reflect the
reasons for certain patterns. Since organizational climate is a study of perceptions the
accuracy of the findings remains doubtful.

59

RESULTS AND FINDINGS

88% respondents agree that HR is aware about the business needs

and strategies.
92% respondents agree that the efforts are taken to generate
awareness among the employees about the organizational needs.
100% respondents were on positive side that the HR policies are up to
the mark.
80% employees agree that job rotation is done in the organization.
92% respondents agree that organization do have formal poliy for
career planning.
88% employees feels that their jobs are secured.
44% employees agree that authority and responsibility are passed on
to the employees and 40% employees are neutral to the statement.
94% respondents gave positive reply that exit interviews are
conducted.
84% respondents said that organization encourages product and
process improvements.
92% employees agreed to the fact that organization is managing
change by integrating HR issues with the business strategis.
56% employees agree that performance appraisal is extended to all
employees.
86% respondents agree to the fact that performance management
team helps to communicate to team what is expected from them.
90% respondents agree that the organization has a provision for
employee recognition programs and awards.
96% respondents agree that appropriate feedback is given to all the
employees regarding performance.

60

 The majority i.e. of respondents are of the age group 25-35 years of
age.
The majority of respondents are male i.e. 78% and 22% respondents
are female.
54% of respondents are working in WelcomHotel from 2-4 years.

61

CONCLUSION
The data provided a description of a relatively young, well-educated
and trained work force which received moderate levels of financial
remuneration.
The superior should start delegating greater authority and
responsibilities to the subordinates.

The HR policies are all up to the mark.

The overall views of respondents are positive.

The management should look forward to increase the salaries of

employees to bring in competition to other Hotel Industries.
The HR department should look forward for better performance
appraisal.

62

BIBLIOGRAPHY
1. Rao R K (Oct-Dec 1999), Management by values, Personnel Today, Vol.XX, No.3.

2. http://www.statista.com/statistics/206825/hotel-occupancy-rate-in-2011-byregion/
3. -(http://www.statista.com/statistics/206825/hotel-occupancy-rate-in-2011by-region/)

4. World travel and tourism council ecomic impact 2015, TechSci Research
5. (http://www.statista.com/statistics/206825/hotel-occupancy-rate-in-2011-byregion/)

63