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PROJECT REPORT

ON
“PERFORMANCE APPRAISAL IN HOTEL
INDUSTRY”

Submitted in partial fulfillment of the requirements


for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION


2015-18

Under the guidance of


Ms JYOTI GUPTA
(ASSISTANT PROFESSOR)

Submitted By
AAYUSH BATRA
00417701715
Vivekananda School of Business Studies
Vivekananda Institute of Professional studies
Guru Gobind Singh Indraprastha University Delhi

TO WHOM IT MAY CONCERN

I Aayush Batra Enrolment No. 00417701715 from BBA-VI Sem, of the


Vivekananda Institute of Professional Studies, Delhi hereby declare that the Project
Report entitled “Performance Appraisal in Hotel Industry” is an original work and
the same has not been submitted to any other Institute for the award of any other
degree.

Signature of the Student

ii
CERTIFICATE FROM GUIDE

Certified that the Project Report submitted in partial fulfillment of Bachelor of


Business Administration (BBA) to be awarded by G.G.S.I.P. University, Delhi by
ASHISH AGRAWAL, Enrollment No. (40317701715) has been completed under my
guidance and is Satisfactory.

Date:

Signature of the Guide

Name of the Guide : Ms JYOTI GUPTA


(ASSISTANT PROFESSOR)

iii
ACKNOWLEDGEMENT

It is my profound privilege and pleasure to express the over whelming sense of


gratitude, devotion and regards to my project guide Ms. JYOTI GUPTA for her
valuable suggestions, timely guidance and words of encouragement during the project
work. Without her co-operation this project would not have been in the form, as it is
today.

Also I am very grateful to my entire faculty guide for his kind support & guidance for
the accomplishment of this project work.

AAYUSH BATRA
BBA-VI Sem.
Enrollment No-00417701715

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EXECUTIVE SUMMARY

Efficient manager of human, technical and financial resources is very important for
accomplishment of objectives of any business .Every manager has to perform certain
functions to coordinate the efforts of the people working under him for effectiveness
and efficient use of physical resource. The quality of performance of these functions
determines the success of any organisation to a great extend.

This is true both at micro level .With the rapidly changing socio economic
environment and growing industry throughout world HR has become a very
challenging job .Today’s managers are require possessing certain relation and
conceptual skills in addition to wide reservoir of knowledge. Studying the
management science and practicing the principle and techniques of management can
acquire these skills. My project is an attempt to provide an efficient aid to the
development of an understanding of the basic concept that relates to the practices of
performance appraisal in various 5 star hotels. And also the employees approach
towards the existing performance appraisal system.

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TABLE OF CONTENTS

S. No. Topic Page No.


1. To Whom it May Concern ii
2. Acknowledgement iii
3. Executive Summary iv
4. Chapter I: Introduction 1-11
5. Chapter II: Review of Literature 12-34
6. Chapter III: Research Methodology 35-40
7. Chapter IV: Data Reduction, Presentation & Analysis 41-67
8. Chapter V: Data Interpretation 67-70
9. Chapter VI: Summary & Conclusions 71-73
10. References/ Bibliography 74-75
11. Appendices 76-81

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Chapter -1
Introduction
INTRODUCTION

Introduction to the hotel industry


“Hotel” or Inn is defined by British Law as a place where a bonafide traveler can
receive food and shelter, provided he is in a position to pay for it and is in a fit
condition to be received”.

The Hotel Industry is one important sector of the touristic infrastructure of the
country. The composite tourism industry including hotel is a part of expanding
International Trade in goods and services within which it represents the fastest
growing and largest elements of what economist call invisible trade and its earnings.
Today, tourism including hotels is the 2nd largest industry in the world with a rapid
growth.

The Hotel Industry has changed and developed considerably. The principle factor that
determines the guest attitude towards be hotel is service received.

Life is Service- is the motto of successful Hotel Men.


In Hotel industry the employees are usually taught to
- Push Sales - Maintain high standards
- Cut Cost - Work well as team member
- Have service awareness - Be a representative of his culture/country

Undoubtedly, just as an unsatisfied customer is a definite loss in potential revenue, a


satisfied customer is definitely a source of excellent publicity for the hotel.

Importance of HRM in hotel industry


HRM in Hotel Industry is an integral part of it, since it can make or end the enterprise.
Much depends on the right personnel with aptitude and interaction for the Hotel
Industry. After the right selection of personnel, proper training is most essential as
there is no end to man’s ambition for position, power and wealth.

Hence it is necessary the responsibilities and obligations of an employee should be


appraised initially and salary should be fixed accordingly so that an employee does
not feel that he is up a blindly with no further prospects of battering his position. An

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employee should be made to feel that good & honest work yields good result that will
invariably be appreciated and recognised.

Further, it came to light that these practices could be used to evolve a sound
framework for research if they were enhanced in the light of views of people
associated with the industry in different capacity. So, it the first stop in the direction
could be to get their opinion records in put down their comments in remarks on this
subject.

3
Overview of the HOTEL
Hotel Samrat

A luxury hotel in the heart of New Delhi’s prestigious Diplomatic enclave- yet only
10 Km from Delhi Airport. The Samrat combines the pleasures of a garden resort with
the facilities of a 5 Star international hotel. Samrat is an elegant stone and marble
structure built around a central flower filled atrium and open air courtyard.

Hotel Samrat
Location : 15 kms from International Airport, 10 kms from Domestic Airport, 9 kms
from New Delhi Railway Station.
Rooms: 255 A/C rooms.
Address: Hotel Samrat, Kautilya Marg.

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Introduction to the Organisation
India Tourism Development Corporation (ITDC) was established in 1966 as an
autonomous public sector corporation, entrusted with the task of helping develop
tourism infrastructure and promoting India as a tourist destination. Today, ITDC
provides a complete package of tourism services including accommodation, catering,
travel-related services, event management, publicity, hotel consultancy, duty free
shops, in-house travel agency, entertainment and shopping.

5
Hotels in New Delhi

Hotel Ashok Hotel Indraprastha Hotel Janpath

Hotel Kanishka Hotel Ranjit Hotel Samrat


HOTEL SAMRAT

Hotel Samrat started in 1982 crafted in Magnificent Dholapur Soft pink stone and
plush marble. Hotel Samrat is planned around a central flower filled atrium and open
air courtyard. While sharing the beautifully landscaped garden with the group’s
flagship property Ashok Hotel it has to also inherited the royal traditions of
hospitality. Its rooms overlook the enclosed terrace garden fountain water channels
and swimming pool while satisfying the demands of most discriminating guest.

A few kilometers away from the airport the Samrat Hotel welcomes you to share and
discover the variety of facilities in the luxury of the hotel itself.

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At Hotel Samrat, conventions and conferences are events to remember. Most modern
business amenities set amidst perfect conferencing ambience. Culinary tradition
cherished by most discovering guests from the world over. And the unmatched
reputation for being the finest in conferencing business.
A luxury hotel in the heart of New Delhi’s prestigious diplomatic enclave, the Samrat
has rooms with elegant décor, 24 hour room service, telephone, TV, video and
refrigerator and very soon all the rooms are going to be renovated with all the modern
luxuries a hotel can offer.

Hotel has two restaurants Red Chilli, the 24 hours Coffee Shop to cater to varied
tastes. It serves you snacks, mini-meals both Indian and Continental and drinks of
your choice. It is sheer delight to sit and eat in the Red Chilli overlooking the
Swimming Pool. Red Chilli is the place when you are in a rush and do not want to be
rushed. The other restaurant hotel has is Baradari, the specialty restaurant serving
Mughlai and Continental food. Baradari literally meaning courtyard in the place
where you can be out of home but still feel homely aromas rising. From the dishes can
build up your appetite. Here you would like to eat out of the Chef’s hand for our
Masters Chef’s excel in Mughlai Cuisine. Very soon Hotel Samrat is going to open a
Veg/Non-Veg. International Multi-Cuisine Restaurant-cum-Bar. Samrat not only
provides all the luxuries but also looks after the guest entertainment for which we
have Decibel, the Discotheque cum bar which operates four days a week from 8 PM
onwards for relaxation, the Samrat tempts you with a cool, blue, open air swimming
pool, tennis court, health club, beauty parlour and delightful shopping arcade.

Samrat is adept in hosting business meets and get-together as well in


Chanakya/Chandragupt and Kautilya Hall to accommodate 200-250 pax with
sophisticated audiovisual equipments and conference facilities. Smaller parties and
buffets too are handled professionally and impeccably.

The following is about the organisation:-

Our Mission
Guest: - We are committed to meeting & exceeding the expectations of our guest
through our unremitting dedication to perfection in every aspect of services.

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Our Employees: - We are committed to growth, Development and welfare of our
people upon whom we rely to make this happen.

Our Vision: - To be brand recommended by knowledgeable international b/s market


sought after by, service oriented employees and engaged by profit driven, global hotel
investors.
Location
Hotel Samrat, New Delhi
Kautilya Marg, Chanakyapuri,
New Delhi-110021
15 Kms. From Indira Gandhi International Airport
12 Kms. From Domestic Airport
09 Kms. From New Delhi railway Station
06 Kms. From Shopping Complex and Pragati Maidan, venue of
Intl. Exhibition and Fairs.
MANPOWER
Currently employing 441 employees, which includes:-
 18 Executives
 423 Non Executives

Branch Office:-
India Tourism Development Corporation
6th Floor, Scope Complex, Core 8,
 7, Lodhi Road,
 New Delhi.

Accommodation
 Total number of rooms : 255
 Luxury suites 2
 Double rooms {Large Bed} 39
 Single rooms {Twin Bed} 201
 Apartments 13

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Food and Entertainment
 Baradari (Indian Cuisine)
 Gardenia (24 hrs coffee shop)
 Hunt Room, Saloon Bar
 Tea Lounge

Facilities
 Swimming Pool
 Health Club
 Baby-sitter
 Travel Desk
 Shopping Arcade
 24hours currency exchange
 Exclusive exhibition area

Services
Beauty Parlour and Barber Shop, Courier Service, Round the Clock Currency
Exchange, Laundry and Dry Cleaning Service, Doctor on Call, Shopping Arcade, safe
Deposit, Baby Sitter. In addition, having Special rooms for the Physically Challenged.

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Dinning & Entertainment

 Red Chilli 24 Hours Multicuisine Coffee Shop

 Baradari Indian and Mughlai Specialty-Amidst timeless

Ghazals

Timing: 1230 hrs to 1500 hrs & 1930 hrs to 2330 hrs.

 Decibel Disco cum Night Club.

Timings: 2030 hrs. to 0000 hrs.

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Convention & Banquet Facilities
 Kautilya Hall – Designed to accommodate 300 delegates.
 Chadragupt and Chanakya.
 Sprawling lawns for outdoor parties, theme & gala dinners.
 Complete Audio Visual aids, Secretarial Services.

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Chapter-2
Literature Review

13
PERFORMANCE APPRAISAL

DEFINITION:
According to Heyel-
“Performance appraisal is the process of evaluating the performance and
qualifications of the employees in terms of the requirements of the job for which he is
employed, for the purpose of administration including placement, selection for
promotions, providing financial rewards and other actions which require differential
treatment among the members of a group as distinguished from actions affecting all
members equally.”

Performance appraisal roots up in the early twentieth century can be traced to Taylor’s
pioneering time and motion studies. As a distinct and formal management procedure
used in the evaluation of work performance, appraisal really dates from the time of
second world war- not more than 60 years ago. Yet in a broader sense, the practice of
appraisal is a very ancient art.

The performance appraisal is a formal means of communication between a supervisor


and an employee that provides an opportunity to acknowledge mutual understanding
of job duties and responsibilities and to discuss performance expectations and future
objectives for the position. The performance appraisal process is the culmination of all
informal communications and training that has occurred during the rating period.
Permanent employees are evaluated during the annual performance evaluation cycle.
Supervisors are not limited to establish evaluation cycles, but can build on that
structure to maintain a positive flow of communication and feedback.

PURPOSE:
According to Cummings-
“The overall objective of performance appraisal is to improve the efficiency of an
enterprise by attempting to mobilize the best possible efforts from individuals
employed in it. Such appraisals achieve four objectives including the salary review,
the development and training of individuals, planning job rotation and assistance
promotions.”

14
Performance appraisal has been considered as a most significant and indispensable
tool for an organization, for the information it provides, is highly useful in making
decisions regarding various personal aspects such as promotion and merit increases.
Performance measures also links information gathering and decision making
processes which provides a basis for judging the effectiveness of personnel sub
divisions such as recruiting, selection, training and compensation. They help pinpoint
weak areas in the primary system (example: - marketing, finance and production). It is
easier for mangers to see which employees need training or counselling, because jobs
are grouped by categories (example: - production foreman, sales manager, financial
analyst).

If valid performance data are available, timely, accurate, objective, standardized and
relevant, management can maintain consistent promotion and compensation policies
throughout the total system.

Effective performance appraisal system contains two basic systems operating in


conjunction
 An evaluation system
 A feedback system

The main aim of evaluation system is to identify the performance gap, if any. This gap
is the shortfall that occurs when performance does not meet the standard set by the
organization as acceptable.

Benefits
The process provides opportunities for individuals to: -
 Understand and clarify their job role and responsibilities.
 Know how they contribute towards the achievement of the company’s aim and
objectives
 Discuss the standards of performance expected for their job
 Get constructive feedback from their line managers, which can enable the
employees to bring about changes in their behaviors, attitudes, skills and
knowledge and set realistic goals for themselves.
 Discuss views and ideas on how their job role could be improved.

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 Understand their line manager’s role, responsibilities and priorities.
 Performance appraisal generates significant, relevant and useful information about
the promotability and potential of employees. The information is used to assess
the organization’s internal supply of human resources and availability of
managerial personnel for succession and planning.
 Information gathered through performance appraisal provides inputs for making
decisions concerning salary administration, financial incentives, appreciations,
additional responsibilities, promotion etc. On the basis of this, achievers and poor
performers can be given appropriate signals.

The Evaluation Process


The performance appraisal process is an essential activity designed to foster open
communication between supervisor and employee. Performance appraisal should
provide both supervisor and employee with clear and obtainable goals, activities and
overall performance.

The performance evaluation process is an essential activity designed to provide


consistent annual reviews for all employees. The process is designed to offer both the
employee and the appraiser (usually the direct supervisor) with improved
communication, fair assessment and objective views of abilities that relate to the job
responsibilities.

The appraisal process is only one step in the process of continued skill development,
career growth and job satisfaction. Effective performance appraisal is a continuous
process of change and improvement, not on a single annual event. The focus is on
growth and development, not solely on past performance. The performance appraisal
must be a collaborative process.

As an appraiser, you must conduct the performance appraisal process in a consistent,


professional manner. The focus of the process is on the employee’s job performance
and requirements of the goals and standards for the next review period. There are
three important parts to the appraisal process: -
 Employee self-appraisal, where the employee evaluates himself on the grounds of
his knowledge to understand the company’s policies and objectives, etc.
 Appraiser evaluation is when the appraiser evaluates the employee on certain
norms and detects the need for any additional help, etc.

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 Performance appraisal meeting provides the supervisor and employee with an
opportunity to engage in an open and constructive discussion regarding the
employee’s job performance, accomplishments, areas of needed improvement,
training and development and future performance goals and expectations.

None of the above three steps may be eliminated from the process. Both employee
and appraiser must use the same appraiser form. As the appraiser, you will need to
complete the following steps. The process of completing the appraisal forms may be
aided by reviewing the employee’s history including but not limited to job skills,
training, experience, past jobs and job performance. The following outline will help
you complete the process in an orderly and timely manner.

 Describe the process to your staff (either individually or in a group)


 Distribute self-evaluation forms.
 Set a date and time for the performance appraisal with each staff member.
 Complete your appraisal of employee’s performance
 Collect and review the self evaluation
 Conduct the appraisal meeting

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THE EVALUATION PROCESS

ESTABLISH PERFORMANCE
STANDARDS

COMMUNICATE PERFORMANCE
EXPECTATIONS TO EMPLOYEES

MEASURE ACTUAL
PERFORMANCE

PERFORMANCE
COMPARE ACTUAL PERFORMANCE
WITH STANDARDS

DISCUSS THE APPRAISAL WITH THE


EMPLOYEE

IF NECESSARY, INITIATE
CORRECTIVE ACTION

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THE EVALUATION PROCESS
1. Establish Performance Standards
At the time of designing a job and formulating a job description, performance
standards are usually developed for the position. These standards should be clear and
not vague, and objective enough to be understood and measured. These standards
should be discussed to find out which different factors are to be incorporated, weights
and points to be given to each factor and these then should be indicated on the
Appraisal Form, and later on used for appraising the performance of the employees.

2. Communicate Performance Expectations to the Employees


The next step is to communicate these standards to the employees, for the employees
left to themselves, would find it difficult to guess what is expected of them. To make
communication effective feedback is necessary from the subordinate to the manager.
Satisfactory feedback ensures that the information communicated by the manager has
been received and understood in the way it was intended.

3. Measure Actual Performance


To determine what actual performance is, it is necessary to acquire information about
it. We should be concerned with how we measure and what we measure. Four sources
are frequently used to measure actual performance:
 Personal observations
 Statistical reports
 Oral reports
 Written reports

4. Compare Actual Performance with Standards


The employee is apprised and judged of his potential for growth and advancement.
Attempts are made to note deviations between standard performance and actual
performance.

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5. Discuss the Appraisal with the Employee
The results of appraisal are discussed periodically with the employees, where good
points, weak points and difficulties are indicated and discussed so that performance is
improved.

6. If Necessary, Initiate Corrective Actions


Coaching, counseling may be done or special assignments and projects may be set;
persons may be deputed for formal training courses, and decision making
responsibilities and authority may be delegated to the subordinates. Attempts may also
be made to recommend for salary increases or promotions, if these decisions become
plausible in the light of appraisals.

The details given above may vary from organization to organization but these steps
usually form the principal steps/features of a sound evaluation programme.

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METHODS OF PERFORMANCE APPRAISAL
(a) Graphic Rating Scale Method
The graphic rating scale method provides a form wherein, for each person who is to
be rated, the number of qualities and characteristics are enumerated, e.g.- the
analytical ability, decisiveness, leadership, job performance, emotional stability, etc.
One form of the rating scale is the continuous scale wherein the rater places a mark
somewhere on a continuum as the tabular matter shows.

WORK ATTITUDE

0 5 10 15 20

NO INDIFFERENT INTERESTED ENTHUSIASTIC VIGOROUS


INTEREST TO IN
IN WORK INSTRUCTION WORK

The rating system generally depends on the allocation of marks in order to qualify

The measurement of performance. The exact allocation of marks to differentiate the


performance of one individual from another is, of course, a delicate job. Generally, in
the rating, if a man is given 90 marks and another 88, it is hardly possible to
discriminate accurately on this basis. There are many variations of this method in the
graphic form or descriptive form.

Employee Comparison Method


The employee comparison method can be sub divided into two further categories, viz

Ranking Method
The ranking system requires the rater to rank his subordinates on overall performance.
This consists in simply putting a man in a rank order. The major drawback in this
method is that it does not pinpoint the person strength or weaknesses nor tell us of his
absolute worth. This system also cannot be applied in a large undertaking since simple
ranking is a difficult job and has limited utility.

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Forced Distribution Method
This method is designed to prevent the supervisors from clustering their men mostly
on the high side or on the low side. It tackles the errors due to excessive lenience,
stiffness and central tendency. It requires the rater to allocate the rating of his
subordinates in a pattern confirming to a normal curve, e.g.: the supervisor must put
10% of his people in the top few, 20% in the next highest category, 40% in the
middle, 20% in the lower and 10% at the bottom category. Although it is true that
most organizations have a work force whose abilities and performance fall in a normal
curve, yet, this system disregards exceptional cases where most of the person may fall
into the top category or into the lowest category.

Critical Incident Method


Some organizations follow this method, which requires every superior to adopt the
practice of keeping a notebook of significant incidents in each employee’s behavior
that indicates his successful or poor performance. There are specially designed
notebooks containing appropriate characteristics and categories on the basis of which
the performance rating is done. The danger in such a method is that it leads to a
danger where the subordinates feel that their boss is breathing down their necks.
Sometimes, it creates a difficulty in maintaining high morale.

Field Review System Method


The essence of this method is that line officers do not themselves fill up the rating
form; instead representatives of the personnel department come to the shop floor and
interview the supervisors to obtain pertinent information about employees. This
information is then sent to the supervisors for approval. Then, the men are categorized
on this basis. Compared to the system of personnel men assessing directly, this system
has a better potential for objectivity.

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Free Form Essay Method
In this form, no scale, checklists or other devices are used, but a supervisor is simply
required to write down his impressions about an individual on a sheet of paper. This
system has obvious limitations.

Checklists Method
Checklist method can also be further sub divided in two broad categories, viz;

Weighted Checklist Method


In this system a large number of statements that describe a particular job are given.
Every statement has a weight or scale value attached to it. While rating an employee
the supervisor checks all those statements that most closely describe the behavior of
the individual under attachment. Averaging the weights of all the statements checked
by the rater then scores the rating sheet. A checklist is constructed for each job by
having persons who are quite familiar with the jobs. Judges then categorize these
statements and weights are assigned to the statements in accordance with the value
attached by the judges. This system, however, involves too much of staff work and is
not feasible in a large undertaking where great many jobs and men are involved.

Forced Choice Method


In this system a rating form is specially constructed for a type or group of jobs with a
group of four to five statements for each factor. The appraiser is asked to pick up the
statement, which is the least applicable to the appraisal. The weight age assigned to
the statements is kept secret from the supervisors. They are only supposed to give the
correct description of the performance of the individual in terms of the higher officer
or the appraiser as to which is in favor and which is against the individual.

Group Appraisal Method


The group appraisal method is in vogue in some organizations. Decisions pertaining
to promotions, pay increases, job changes and other such issues are discussed in a
meeting between the supervisors and the subordinates.

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Management by Objective
Douglas McGregor has developed a new performance appraisal technique. His
method envisages a subordinate setting up his own short-term performance goals in
cooperation with his supervisor. The supervisor guides this process to ensure that it is
encouraged to make an analysis of his job, its strengths and weaknesses. Every few
months, the two get together, discuss the progress towards the goals and the individual
participates in the process of evaluation. This method is useful for executive cadres,
but is not applicable in the case of a large work force and has limitations in the form
of availability of time and attention.

Behaviourally Anchored Rating Scale Method


BARS combines major elements from the critical incident and graphic rating scale
approaches. The appraisal rates the employee on actual behavior on the given job
rather than the general traits. This method reduces the amount of judgment required of
the rater and relies mostly on rater’s power of observation.

Paired Compaison Method


This is a modified form of man to man ranking. Herein, each employee is compared
with all others in pair one at a time. The number of times an employee is judged better
than the others determines his rank. Comparison is made on the basis of overall
performance. The number of comparisons to be made can be decided on the basis of
the formula: -
N (N-1)/2
Where N is the number of persons to be compared. This method is illustrated as
under:
A B C D E FINAL
A - - - + + 3
B + - - + + 2
C + + - + + 1
D - - - - + 4
E - - - - - 5

Herein, plus sign (+) implies that the employee is considered better and minus sign (-)
means worse than other employees. In the pair ‘C’ gets the highest number of plus
signs, therefore, his rank is the highest and so on.

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Paired comparison method is easier and simpler than ranking method. But it is
subjective because appraisal is not based on specific job related performance.
Secondly, it becomes very cumbersome when the number of employees to be related
is large.
Confidential Report Method
This is traditional form of appraisal used in most Government organizations. A
confidential report is a report prepared by the employee’s immediate supervisor. It
covers the strengths and weaknesses, main achievements and failure, personality and
behavior of the employee. It is descriptive appraisal used for promotion and transfer
of employees. But it involves a lot of subjectivity because appraisal is based on
impression rather than on data. No feedback is provided to the employee. The
employee who is apprised never knows his weakness and the opportunities available
for overcoming them.

Human Resource Accounting Method


Human resource is a valuable asset of any organization. This asset can be valued in
terms of money. When competent and well-trained employee leaves an organization,
the human asset is decreased and vice versa. Under this method, performance is
judged in terms of costs and contribution of employees. Costs of human resource
consist of expenditure on human resource planning, recruitment, selection, induction,
training, compensation, etc. contribution on human resource is the money value of
labor productivity or value added by human resources. Difference between cost and
contribution will reflect the performance of employee. This method is still in the
transition stage and is therefore not popular at present.

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Assessment Centre Method
An assessment center is a group of employees drawn from different work units. These
employees work together on an assignment similar to one they would be handling
when promoted. The evaluators observe and evaluate employees as they perform.
Experienced managers with proven ability serve as evaluators. They evaluate all
employees individually and collectively by using simulation techniques like role
playing, business games and in basket exercises. Employees are evaluated on job
related characteristics considered important for job success. With assessment center
method, rater’s personal bias is reduced. But this is a time consuming and expensive
method. Further, the candidate who receives negative report may feel demoralized.

Problems of Performance Appraisal


The ideal approach to performance evaluation is that in which the evaluator is free
from personal biases, prejudices, and idiosyncrasies. However, a single foolproof
evaluation method is not available. Inequities in evaluation often destroy the
usefulness of the performance system- resulting in inaccurate, invalid appraisals,
which are unfair too. There are many significant factors, which deter or impede
objective evaluation. These factors are:

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LENIENCY/ HALO EFFECT
STRICTNESS CENTRAL
TENDENCY TENDENCY

PROBLEMSOF
PERFORMANCE
APPRAISAL

MISCELLANEOUS
BIASES

SOCIAL
DIFFERENTIATION
SIMILARITY
ERROR

The Halo Effect or Error


The halo effect is a tendency to let assessment of an individual’s one-trait influences
the evaluation of that person on other specific traits. The halo effect refers to the
tendency to rate an individual consistently high or low or average on the various
traits, depending upon whether the rater’s overall impression of the individual is
favorable or not. The halo effects arise when traits are unfamiliar, ill defined and
involve personal relations.

This often occurs when an employee tends to be more conscientious and dependable,
that the appraiser might become biased towards that individual to the extent that the
appraiser rates him high on many desirable attributes; or when the employee is more
friendly or unfriendly towards the appraiser.

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Leniency or Strictness Tendency or Constant Error
Relative to the true and actual performance an individual exhibits, some supervisors
have a tendency to be liberal in the rating i.e. they consistently assign high values to
the employee, while at other times they may have a tendency to assign low ratings.
The former tendency is known as positive leniency error, while the latter as negative
leniency error.

Both these trends usually arise from varying standards of performance observed by
supervisors and from different interpretation of what they evaluate in employee
performance.

The Central Tendency Problem


It is the most commonly found error. It assigns average ratings to all the employees
with a view to avoiding commitments or involvement; or when the rater is in doubt or
has inadequate information or lack of knowledge about the behavior of the employee
or when he does not have much time at his disposal. Such tendency seriously distorts
the evaluations, making them most useless for promotion, salary or counseling
purposes.

Similarity Error
This type of error occurs when the evaluator rates other people in the same way he
perceives himself. For example, the evaluator who perceives himself as aggressive
may evaluate others by looking for aggressiveness. Those who show this
characteristic may be benefited while others may suffer. This error also washes out if
the same evaluator appraises all people in the organization.

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Social Differentiation
Rating is sometimes impeded by the evaluator’s style of rating behavior. Pigou has
classified raters as: high differentiators- i.e. using all or most of the scale. He
observes: low differentiators tend to ignore or suppress differences, perceiving the
universe as more uniform than it really is. High differentiators, on the other hand, tend
to utilize all available information to the utmost extend and, thus, are better able to
perceptually deny anomalies and contradictions than low differentiators. Social
differentiators make evaluation using trait criteria unreliable.

Miscellaneous Biases
Bias against employees on ground of sex, race, religion or position is also common
error in rating. Besides these, there may be opportunity bias, group characteristic bias
and knowledge-of-predictor bias.

29
Performance appraisal in hotel Samrat
These are 3 kinds of Performance Appraisal forms through which the emp1oyees are
appraised.
 Managers Performance Appraisal form.
 Supervisors Performance Appraisal form
 Employees Performance Appraisal form.

Potential of employee is evaluated after every 6 months. Hotel also has a self
appraising system.

Rating is divided in 3 categories.


i) Employee
ii) Supervisory
iii) Management

The performance of executives and supervisor is appraised both by the appraiser and
appraisee. According to the evaluation. Transfers arid Promotions takes place

The scale used for all the three categories are.


i) Poor
ii) Average in
iii) Good
iv) Excellent

In the Employee Performance Appraisal form the appraisers as well as the appraisees
comments are taken after the appraiser gives his remarks after this comments of the
head of the department is taken along with Personnel Manager’s and General
Manager’s comments.

Finally, the personnel Action form is filled at along with the final comments of the
personnel Manager and the head of the Department

Thus, the Employees Performance Appraisal form of the comments & remarks
from:
i) Appraiser (Supervisor)
ii) Appraisee (Employee/staff)

30
iii) Head of the Department
iv) Personnel Manager
v) General Manager

In the supervisor’s performance Appraisal form the comments of the appraiser and
appraisee are taken after the remarks from the appraisee himself.

After this the appraisers along with the head of the department comments are also
consider.

Then finally, HRD & Personnel/Administration Manager as well as the Senior Vice
President and General Manager gives their comments.

Finally, the Personnel action form is filled up, along with the final comments of the
Personnel Manager and the head of the department.

Thus the supervisor’s Performance Appraisal form consists of the comments and
remarks from:
i) Appraisee (Supervisor)
ii) Appraiser
iii) Head of the department
iv) Personnel Manager
v) Senior Vice President & General Manager.

Management Performance Appraisal forms consists of 3 sections.


Section 1 - General Performance Appraisal.
Section 2— Overall Performance Appraisal
Section 3 — Individual Training and Development Plan.
In section of General Performance Appraisal the comments of the Appraise and
Appraiser are taken en several aspects such as

31
Appearance/Grooming
Administrative skills
Quality of responsibility
Leadership qualities etc.

The section of overall performance appraisal considers all aspects of the appraiser’s
performance and achievements which is filled up by the appraiser after considering
his as well as appraiser’s comments on the following scale.
1. Excellent Performance
2. Good Performance
3. Average Performance
4. Unsatisfactory Performance

In the section of Industrial Training and Development Plan the appraisee himself
gives the comments on in which area he needs the training and whether the past has
been carried out successfully. Similarly the appraiser gives comments regarding the
training need of appraise.

Finally, the Vice President and General Manager gives their comments. After taking
down all the comments, personal action form is filled up, along with the final
comments of the Personal manager and the General Manager.

The Objectives of Performance Appraisal in Hotel Samrat


Performance Appraisal in Hotel Samrat is done mainly to meet the following
objectives:
1. Manpower Planning
2. For creating and maintaining a satisfactory level of performance of employees in
the present job.
3. For identifying training and development needs.
4. For promotion
5. For salary increment
6. To motivate the employees
7. To know the feeling of the employees toward the hotel practices and policies and
about the other staff.
Steps taken by the hotel for performance appraisal below standards:
1. Waring letters are given to the employee

32
2. Termination
3. Increments are held
4. Promotions are held
5. Provide training
6. Counselling is given

Awards for good performance in hotel:

 Monthly Best worker Award Scheme

AIM:

To enhance the performance level and motivate positively their workers for
achieving higher level of guest satisfaction.

SCOPE:

This scheme shall cover all confirmed employees of the hotel.

FEATURES:

1.All employees are judged objectively by Head of Deptt on the following


parameters:

 Punctuality

 Grooming

 Work Output and work knowledge

 Adherence to disciplinary norms.

 Excellence in guest service

 Ability to relate and guide colleagues/subordinates

 Organizing ability and execution

33
2.The employees must have made some positive and tangible contribution to
his/her deptt.

Procedure for selection;

All HOD’s will nominate person who they think fit and worthy the award along
with a write up on the personality traits of the individual.

All nominations should reach the HR deptt. by 28th of each month in the format
provided.

A meeting chaired by the General Manager along with other HOD’s will them
choose the person for the monthly best worker award.

PRIZE:

1. Cash reward of Rs.501

2. Certificate of merit by Managing Director/ General Manager

Annual Best Worker Award:

Features:

All the employees will be judged objectively by Deptt. heads on the following
parameters:

 Same as that of Monthly Best Worker Award

 Organizing Ability and execution

 High level of initiative in guest services, positive comments by guests.

 High degree of self improvement willingness to learn and improve

 Potential for further growth

 Employee must have made same tangible contribution to his/her deptts.

Procedure for selection:

34
The staff selected as Best Employee on monthly basis in one calendar yr
( April- March) will be entitled to be voted by each concerned deptts as
employee of the year.

All nomination should reach the HR deptt by 15th March in the format
provided.

A meeting Chaired by General Manager along other HOD’s will then choose
the person for the Annual Best Worker Award.

PRIZE:

1. A Return Air Ticket for two to any destination in India with stay for 2 nights
and 3 days.

2. Cash reward of Rs. 2001

3. Certificate of Merit by Managing Director/ General Manager

Beach observes

“Actual experience with rating has demonstrated that supervisors will rate their
people near the middle of the spectrum (average) if their bosses put pressure on them
to correct the sub-par performers (or get rid of them) and if they are called upon to
really justify an outstanding rating. In other words, they will follow the path of least
resistance because they know that the Big Boss will question them about those rated
low or very high.

35
Chapter-3
Research Methodology

36
Research Methodology

Objectives

The main objective of this project is to understand the procedure of Performance


Appraisal practice in Hotel SAMRAT and also to compare the procedure of the
Performance Appraisal of other 5 star Hotels with SAMRAT. Keeping in mind the
following objectives, the various methods are taken into consideration:

1. To study the existing Performance Appraisal practice in SAMRAT.


2. To compare their view and their approach towards the Performance Appraisal
system in the hotel.
3. To give suggestions if any to the Hotel SAMRAT to make the Performance
Appraisal more beneficial and strong in comparison with other hotel.

Scope of the Study:


A HR development is basically depends upon Performance Appraisal and training and
development, the present study give us some suggestions for making the present
performance appraisal system in hotel Samrat more effective and useful.

37
Managerial usefulness of the study
The comparative study of the Performance Appraisal in the hotel industry which is
undertaken by me and the suggestions given in it should be such as that it can be
useful to the managerial level mainly of HOTEL SAMRAT to such extent that they
should satisfied with it and the management of the hotel can carry their appraisal
system more beneficially in the following ways:

 To identify employees efficiency and achievement for a specific period.


 To identify Training and Development needs.
 To identify Promotions, Transfers, Increments etc. on the basis of performance of
the employees.
 To enhance communication between superior-subordinate in terms of appraiser
and appraisee.
 Satisfaction to the employees in terms of monetary and fringe benefits and
through participation.
 Motivate their employees so that the organization can easily achieve their goals.

38
Research
Research in common language refers to a search for knowledge. Research is a
scientific and systematic search for pertinent information on a specific topic. In fact,
research is an act of scientific investigation. Research methodology is a systematic
way to solve research problems. It may be understood as a science of studying how
research is done scientifically. In it we study the various steps that are generally
adopted by researchers in studying their research problems. It is necessary for the
researchers to know not only research methods but also the methodology.

The most desirable approach and regard to the election of methodology depend on the
nature of particular problem, time and resources available. The project has been
undertaken as research work and the findings are compiled in this project.

The research process consists of a series of closely related activities. Why a research
study has been undertaken, how the research problem has been defined, in what way
and why the hypothesis has been formulated, what data has been collected and what
particular methods have been adopted and a host of similar questions are usually
answered, when we talk of research methodology concerning a research problem or
study.

The methodology adopted by me during the study involves 4 main stages:


STAGE 1: Understanding the objectives of the study
STAGE 2: Framing of questionnaire
STAGE 3: Analysis of survey
STAGE 4: Findings and suggestions

The project is based on facts, reliable data and other environmental situations. It is a
descriptive research study where focus is on the following topics.

Selection of Sample:

39
Sampling is an important aspect in research study. Sampling means taking out
sufficient representatives of respondents from the population used for the purpose of
this project:

 As I have to find out the view point and knowledge of employees of Hotel
SAMRAT regarding their Performance Appraisal.
 As I have to compare the Hotel SAMRAT with other 5 star hotels in terms of their
Performance Appraisal system.

SAMPLE SIZE: For the second purpose


The total work force of Hotel SAMRAT is 500 who are ranked according to their job
profiles from grades K1 to Kk and A1 to Ag .As it was not possible to cover all the
employees of the Hotel for this purpose, I have selected a sample of 10 employees
from each department.

SAMPLE SIZE: For the first purpose:


In Delhi there are 25 five star Hotels. As it was not possible to compare each and
every Hotel of Delhi as many of them are not ready to disclose anything about their
Hotels. Therefore I have taken sample of 5 hotels including Hotel SAMRAT for this
purpose.

Hotels participated:
1. Le Meridian
2. Hyaat Hotel
3. Radisson Hotel
4. Maurya Shereton

40
Data Collection
The most desirable approach in regard to the selection of the methodology shall
depend on the nature of particular problem, time and resources available. The project
has been undertaken as a research work and the findings are compiled in this report.

For the purpose of gathering information and collection of data regarding


performance appraisal system of SAMRAT, India, two types of methods have been
adopted namely: -
 Primary data
 Secondary data

Primary Data
Primary data is the one, which is collected by the direct sources like conducting
interviews and getting the questionnaire filled up, where the efforts of collection of
data are in the primary source. To collect this data, I had got the questionnaire filled
up in the form of schedule because of the confidentiality of the questionnaire. During
the days of the project, I came across with the people working in the organization that
helped me to draw a picture of the working of the company, and the way their
appraisal is done, how successful it is and other aspects too.

Secondary Data
The source of secondary data collection was through company’s journals, business
magazines, newspapers, the employee’s induction manual and the ITDC’s official
website.

41
Chapter-IV
Data Reduction,
Presentation &
Analysis

42
43
DATA ANALYSIS

Q1. Are you aware of the appraisal system of your organisation keeping in
mind your performance?

(i) Yes

(ii) No

S.No. Factors Samrat Le-Meridian Radisson Hyatt Maurya


Shereton

a) Yes     

b) No

A= Factors

B= Total no. of hotels agreed to the factor in their Performance


Appraisal system

A a b

B 5 0

44
It is clear from the above data that executives of all Hotels are well aware of the
appraisal system of in their organisation.

45
Q2. What do you feel about the importance of performance appraisal?

 Of limited importance
 Useful but not necessary
 Very important
 Useless

S.No. Factors Samrat Le-Meridian Radisson Hyatt Maurya


Sheraton

a) Of limited
importance

b) Useful but not 


necessary

c) Very    
important

d) Useless

A a b c d

B 0 1 4 0

The above date shows that Hotel Le-Meridian feels that the performance appraisal is
useful but not necessary in an organisation. But on the other side Hotels like Samrat,

46
Radission, Hyatt, Murya Sheraton feels that Performance Appraisal plays a vital role
in an organisation.
Q3. What is the objective of conducting performance appraisal in your hotel?
(i) Maintaining performance level
(ii) Training and Development needs
(iii) Promotion
(iv) Salary increments
(v) Employee motivation
S.No Factors Samrat Le- Radisson Hyatt Maurya
. Meridia Sheraton
n
a) Maintaining    
Performance level
b) Training and  
development
needs
c) Promotion   
d) Salary increments    
e) Employee  
motivation
A a b c d e
B 5 2 3 5 2

5 5
5
4.5
4
3.5 3
3
Rank

2.5 2 2
2
1.5
1
0.5
0
Maintaining Training and Promotion Salary increments Employee
performance level Development motivation
needs
Factors

47
It is clear from the above analysis that the factors a and d i.e, maintaining
performance level and salary increments are the most important objective meet by the
performance Appraisal system in the hotels.

48
Q4. What is the period of appraisal in your organisation

(i) Monthly

(ii) Quarterly

(iii) Half yearly

(iv) Annually

S.No. Factors Samrat Le- Radisson Hyatt Maurya


Meridian Sheraton
a) Monthly
b) Quarterly
c) Half yearly  
d) Annually   
A a b c d

B 0 0 2 3

The above data and histogram shows that in majority and hotels like Le-Meridian,
Radisson, Hyatt Performance Appraisal is carried out annually, only in 2 hotels i.e.,
Samrat, Murya Sheraton performance Appraisal is carried out Half yearly.

49
Q5. Do you agree that besides the job required qualities, behavioural qualities
are also considered while appraising an employee?
(i) Strongly agree

(ii) Agree

(iii) Neither Agree nor disagree

(iv) Strongly disagree

S.No. Factors Samrat Le- Radisson Hyatt Maurya


Meridia Sheraton
n
a) Strongly agree 
b) Agree  
c) Neither agree nor  
disagree
d) Strongly disagree
A a b c d

B 2 1 2 0

2 2
2
1.8
1.6
1.4
1.2 1
Rank

1
0.8
0.6
0.4
0.2 0
0
Strongly agree Agree Neither Agree Strongly
nor disagree disagree
Factors

It is clear from above that Hotels like Samrat and Maurya Sheraton are strongly agree
with the statement that besides the job required qualities, behavioural qualities are
also considered while appraising and employee, Hotel Le-Meridian is agree with the
statement while Hotel Radisson and Hyatt are neither agree nor disagree.

50
Q6. Who is authorized for your appraisal?
(i) Department head
(ii) Peers
(iii) Immediate supervisor
(iv) All the above

S.No. Factors Samrat Le- Radisson Hyatt Maurya


Meridia Sheraton
n
a) Department    
head
b) Peers  
c) Immediate   
supervisor
d) All the above    
A a b c d

B 3 2 1 0

3
3

2.5
2
2
Rank

1.5
1
1

0.5
0
0
Department Peers Immediate All the above
head supervisor
Factors

This analysis proves that in Hotels like Samrat, Hyatt performance Appraisal is done
by the departmental head, in Hotel Le-Meridian and in Hotel Radisson Performance
Appraisal is done by peers but in Murya Sheraton performance Appraisal is done by
immediate supervisor. Departmental head in Radission also does performance
Appraisal.

51
Q7. What is the step taken if the actual performance of the employees is below
standard?

(i) Warning

(ii) Termination

(iii) Increments are held

(iv) Promotions are held

(v) Provide training

(vi) Counselling

S.No. Factors Samrat Le- Radisson Hyatt Maurya


Meridian Sheraton
a) Warning    
b) Termination 
c) Increments are  
held
d) Promotions are    
held
e) Provide    
training
f) Counselling 
A a b c d e f
B 5 1 3 5 5 1

52
This depicts that the factors a, d, e, i.e., warning, promotions are held and provide
training are the common steps taken by Hotels if the actual performance of the
employees is below standard.

53
Q8. Are you given the feedbacks of your appraisal?

(i) Always
(ii) Sometimes
(iii) Never

S.No. Factors Samrat Le-Meridian Radisson Hyatt Maurya


Sheraton
a) Always   
b) Sometimes  
c) Never
A a b c
B 3 2 0

3
3

2.5
2
2
Rank

1.5

0.5
0
0
Always Sometimes Never
Factors

It is clear that in majority of hotels like Samrat, Maurya Sheraton, Hyatt, Radisson
feedback is given to the employees but in Hotel Le-Meridian feedback is given
sometimes.

54
Q9. Are the employees of your hotel satisfied with the appraisal system?
(i) Yes (iii) Very much
(ii) No (iv) Not at all

S.No. Factors Samrat Le- Radisson Hyatt Maurya


Meridian Sheraton

a) Yes    

b) No

c) Very much 

d) Not at all

A a b c d

B 4 1 0 0

4
4
3.5
3

2.5
Rank

1.5
1
1
0.5
0 0
0
Yes No Very much Not at all
Factors

This analysis proves that mostly the hotels are satisfied with the appraisal system but
Hotel Samrat employees are very much satisfied with the appraisal system.

55
Q10. Does your organisation feels need to adopt some new method of
performance appraisal? If yes it is because of

(i) Standards are not clear

(ii) Biased

(iii) Not precise and clear

(iv) Poor feedback/faulty feedback

S.No. Factors Samrat Le- Radisson Hyatt Maurya


Meridian Sheraton
a) Standards are 
not clear
b) Biased 
c) Not precise and 
clear
d) Poor feedback/  
faulty feedback

A a b c d

B 1 1 1 2

2
2
1.8
1.6
1.4
Ra 1.2 1 1 1
nk
1
0.8
0.6
0.4
0.2
0
Standards are Biased Not precise and Poor feedback/
not clear clear faulty feedback
Factors

56
Q11. Does manager or appraiser in your hotel receive any training to act as
appraiser?
(i) Yes
(ii) No

S.No. Factors Samrat Le-Meridian Radisson Hyatt Maurya


Sheraton

a) Yes  

b) No   

A a b

B 2 3

2.5 2

2
Rank

1.5

0.5

0
Yes No
Factors

It is clear from the above data that the manager or appraiser in Hotel Le-Meridian and
Samat receive training to act as the appraiser.

57
Q12. If no, do you think such training shall be given to make performance
appraisal more effective?
(i) Yes
(ii) No

S.No. Factors Samrat Le-Meridian Radisson Hyatt Maurya


Sheraton

a) Yes 

b) No  
A a b
B 1 2

2
1.8
1.6
1.4
1
1.2
Rank

1
0.8
0.6
0.4
0.2
0
Yes No
Factors

The above analysis shows that in Hotel Hyatt training shall be given to make
performance appraisal more effective, while in Hotel Maurya Sheraton and Hotel
Radisson, no such training is required to make performance appraisal more effective

58
Q13. Do you agree that in your organisation, the appraisal system helps in the
identification of:
(i) Training and Development
(ii) Salary increments
(iii) Promotions
(iv) Improvement in work area

S.No. Factors Samrat Le-Meridian Radisson Hyatt Maurya


Sheraton
a) Training and  
development
b) Salary   
increments
c) Promotions   
d) Improvement  
in work area
A a b c d

B 5 5 5 3

5 5 5
5
4.5
4
3.5 3
3
Rank

2.5
2
1.5
1
0.5
0
Training and Salary Promotions Improvement in
Development increments w ork area

Factors

It is clear that the factors a, b, c, i.e., training and development, salary increments and
promotions are identified with the help of appraisal system in the Hotels.

59
Q14. Are there any reward for the best performance in your hotel?
 Yes
 No
S.No. Factors Samrat Le- Radisson Hyatt Maurya
Meridian Sheraton
a) Yes     
b) No
A a b c d
B 1 1 1 2

5
4.5
4
3.5
3
Rank

2.5
2
1.5
1
0
0.5
0
Yes No
Factors

This analysis proves that every hotel has reward for the best performance.

60
QUESTIONNAIRE (EMPLOYEES)
Q1. Are you well aware with the existing performance Appraisal system?
(i) Yes (ii) No

13%

Yes
No

87%

87.5% people are well aware of the appraisal system existing in the organisation
whereas 12.5% employees say that they are not aware of the appraisal system keeping
in mind their own performances.

61
Q2. What do you feel about the importance of P.A.?
 Very necessary
 Useful but not necessary
 of Limited importance
 Useless

6% 6% 0%
Very necessary

Useful but not


necessary
of Limited
importance
Useless

88%

As shown in the pie chart above 88% people believe it very necessary, 6% say its
useful but not necessary and another 6% believes that P.A. is of limited importance
but 0% say that its useless.

62
Q3. Do you have regular discussions with the supervisor about your
performance and development?
 Always
 Sometimes
 Never

13% 13%

Always
Sometimes
Never

74%

12.5% agree that they have regular discussion with their supervisors regarding their
development needs, 75% says they sometimes have discussions and 125.% employee
say that they never have any kind of discussion with their supervisor which could help
in their better performance and their development.

63
Q4. Are the standards of performance well communicated to you?
 Always
 Sometimes
 Never

13%

38%
Always
Sometimes
Never

49%

37.5% agree that the standards of performance are very communicated to them, 50%
say that they have well communication about the standards of performance only
12.5% believe that the standards of performance are not well communicated to them.

64
65
Q5. Do you get the feedback of your appraisal?
(i) Always
(ii) Sometimes
(iii) Never

44%

50% Always
Sometimes
Never
6%

According to the data analysed 43.75% say that they are always provided with a
feedback after the appraisal, 6.25 quote that they are sometimes given a feedback and
the remaining 50% employees say that they are never given any kind of feedback

66
Q6. Do you agree that your supervisor is effective at communicating
important issues that may affect your job?
 Strongly agree
 Agree
 Neither agree nor disagree
 Disagree
 Strongly disagree

Strongly agree

10% 5%
Agree
35%
Neither agree nor
disagree
30%
Disagree
20%
Strongly disagree

35% of the employees strongly agree that supervisor is effective at communicating


important issues that may affect the job, 20% agrees that supervisor is effective
whereas 10% contradict the statement while saying that they are totally disagree with
the statement, 5% also support the statement by saying they don’t agree, 30% people
neither agree nor disagree with this statement.

67
Q7. Does the appraisal system enhance communication between you and your
supervisors?
 Yes
 No
 Sometimes

13%

38%
Yes
No
Sometimes

49%

37.5% say that the appraisal helps to internet with their superiors, whereas majority
with 50% contradict the statement by saying that the appraisal system does not
enhance any kind of communication, whereas 12.5% employee agree that it
sometimes helps them to interact and communicate with their supervisors.

68
Q8. What are your views regarding the procedure of performance appraisal
in your organisation?
 Lengthy
 Very subjective
 Should be more objective
 Best in its present form
 Needs full alteration

Lengthy
6.25 0
25 Very subjective

Should be more
objective

56.25 Best in its present form


12.5
Needs full alteration

56.25% employees are happy with the procedure of appraisal as they like it in its
present form, 12.5% say that the appraisal procedure is very subjective, 25% are
of the opinion that the appraisal system should be more objective, 6.25% wants full
alteration in the present system whereas 0% employees say that the appraisal system
is lengthy.

69
Q9. In what way the corrective measures are taken after
the appraisal?
 Counselling
 Training
 Coaching
 None of the above

25%
Counselling
Training
Coaching
56%
0% None of the above

19%

25% employees say that they are counselled after their appraisal for better results in
future, 0% say that they are given a coaching, 18.75% agree with training being given
to them and 56.25% say that none of the above mentioned corrective measures are
taken care of after the appraisal.

70
Q10. Do you agree that in your organisation the appraisal
system helps in the identification of:
 Training and development
 Salary increment
 Promotion
 Improvement in work area
 All the above

6% Training and
development
19%
44% Salary increment

Promotion
0%
Improvement in work
31% area
All the above,

6.25% employees agree that it helps in the identification of the need of training and
development, 18.75% say it help to raise the salary of the capable employees, 0%
agrees with the statement of promotion being the motive of appraisal, 31.25% say that
it helps in the improvement in works areas for employees and the majority with
43.75% agree with the above statement.

71
Q11. Are you satisfied with the present appraisal system in
your hotel?
 Very much
 Yes
 No
 Not at all

6% 13%
6%

Very much
Yes
No
Not at all

75%

12.5% employees are very happy and satisfied with the present appraisal system, 75%
say ‘yes’ for the satisfaction level they have 6.25% say they are not satisfied and the
remaining 6.25% are not at all satisfied with the present appraisal system.

72
Chapter-V
Data
Interpretation

73
DATA INTERPRETATION

 In all the Hotels, Performance Appraisal is one of the most important function of
the HR Deptt. because so many decisions and policies depends upon it like
Promotion, increments and the Best Employee Award etc.
 In every hotel there is a policy for Appraisal system, which is mainly conducted
for salary increments, promotions and to identify Training and Development
 In the Hotels, there is a different method for the Appraisal system for the staff
categories to the executive categories i.e; for the staff category appraisal is done
by their superior and executives, there is self appraisal also.
 Performance Appraisal in most hotels is calculated annually and this frequency is
same for all categories of employees.
 Following measures are taken in various hotels if the actual performance is not as
desired.

In SAMRAT:
A) Warning letter is given
B) Termination
C) Increments are held
D) Promotions are held
E) Training is given
F) Counseling is given

In LE MERIDIEN:
A) Warning letter is given
B) Increments are held
B) Training is given

In HYAAT:

A) Training is given

B) Warning letter is given

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C) Counseling is given

In RADISSION:

A) Increments are held

B) Counseling is given

In MAURYA SHERETON:

A) Training is given

B) Counseling is given

 In all the hotels, Appraisal are effectively carried out by giving feedback of
appraisal to the employees of all hotels are satisfied with the procedure of
Performance Appraisal in their respective organization.
 HR Manager of no hotel feels that there is any disadvantage of their present
Appraisal system.
 Laundry Manager of SAMRAT told me during such talk that employees of
Laundry deptt. Who are hardly educated are not at all aware of Performance
Appraisal system in their hotel. It is never communicated to them and these
employees believe that Performance Appraisal form is piece of paper, which helps
them to get salary and increments.
 Mostly in all the hotels according to all the HR manager, the employees are very
much satisfied with the existing Appraisal System and there is no such
disadvantage in the systems they are following.
 In Hotel Hyatt and Le-Meridian ranking method is followed where as in Samrat,
Maurya Sheraton and Radisson grading method is followed:-

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Every hotel has some rewards for some rewards for the Best Performing
Employee:
In SAMRAT:
1. Monthly Best worker Award: Rs.500 + Certificate
2. Annual Best Worker Award:
In LE MERIDIEN:
1. Best Employee of The Month: Rs. 1000 + Certificate + Name on the notice board
2. Best employee Of The Year: Rs. 4000 + Certificate + Name on the notice board
In HYATT:
1. Best Employee of the Month – Rs 1000 + Badge + Certificate
2. Merit Employee of the Month – Rs 500 + Badge + Certificate
3. Best Employee of the Year – Rs 5000 + Badge + Certificate
4. Merit Employee of the Year – Rs 3000 + Badge + Certificate

In RADISSION:
1. Best Executive of the Year – Rs 5000 + Certificate
2. Best Staff of the Year – Rs 3000 + Certificate

In MAURYA SHERETON:
1. Best Monthly Employee: Wrist Watch + Certificate
2. Best Yearly Employee: Cash Rewards + Certificate

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Chapter VI
Summary &
Conclusions

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SUMMARY & CONCLUSIONS

6.1 Summary

Efficient manager of human, technical and financial resources is very important for
accomplishment of objectives of any business .Every manager has to perform certain
functions to coordinate the efforts of the people working under him for effectiveness
and efficient use of physical resource. The quality of performance of these functions
determines the success of any organisation to a great extend.

This is true both at micro level .With the rapidly changing socio economic
environment and growing industry throughout world HR has become a very
challenging job .Today’s managers are require possessing certain relation and
conceptual skills in addition to wide reservoir of knowledge. Studying the
management science and practicing the principle and techniques of management can
acquire these skills. My project is an attempt to provide an efficient aid to the
development of an understanding of the basic concept that relates to the practices of
performance appraisal in various 5 star hotels. And also the employees approach
towards the existing performance appraisal system.

7.2 Recommendation

In this comparative study undertaken by me, I have found that the Hotel SAMRAT is
having a standardized procedure of the Performance Appraisal but the system is
effectively carried out and hotel need to make some important changes in it so as to
carry its appraisal system more beneficially for the organization. some of my
suggestions are;
 The company’s rules, policies, regulation especially those regarding performance
should be made very clear to all employees.
 There should be punishments from time to time to motivate the employees of the
company.
 Employees should be given a chance to make suggestions regarding the appraisal
and the feedback given to them by supervisor.
 The power of appraising and giving feedback should not be in the hands of a
single person. Feedback system should be more transparent.

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 There should be same specification and importance given to special work done as
task which would motivate to the employee to take challenges in future also.
 It is my personal suggestion that Hotels Industry should adopt a modern method
of appraisal. They should introduce 360 appraisal in the hotel. Though a major
portion of the employees are not aware of the term. But still they want to be
appraised by their superior, peers and by self.
 Hotel should review its performance appraisals system as only few employees are
satisfied with the present performance appraisal system. If possible, the hotel
should adopt a modern approach of the appraisal.
 Employees performance can be evaluated twice in a year through which short
comings if any can be overcome in short span and which may also put a pressure
an employee to work hard.
 The 360 appraisal system should be used where the employee is not only
appraised by his superior only but by his subordinate and peers also. This will
reduce the degree of bias.
 The poor performers should be trained, counselled as coached for better results
and output.

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References/
Bibliography

80
REFERENCES/ BIBLIOGRAPHY

BOOKS:-
 Personnel Management (Management of HR)
Dr. C.B. Mamoria
 Performance Appraisal System
Archer North
 Annual Report
Hotel Samrat
 Human Resource Management
N.K. Singh
 Human Resource Management
Dr. C.B. Gupta
WEBSITES:-
 www.humanresources.about.com
 www.theashokgroup.com

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Appendix

82
QUESTIONNAIRE (COMMON)
Q1. Are you aware of the appraisal system of your organisation keeping in
mind your performance
 Yes
 No
Q2. What do you feel about the importance of performance appraisal?
 Of limited importance
 Useful but not necessary
 Very important
 Useless

Q3. What is the objective of conducting performance appraisal in your hotel?


 Maintaining performance level
 Training and Development needs
 Promotion
 Salary increments
 Employee motivation

Q4. What is the period of appraisal in your organisation


 Monthly
 Quarterly
 Half yearly
 Annually

Q5. Do you agree that besides the job required qualities, behavioral qualities
are also considered while appraising an employee?
 Strongly agree
 Agree
 Neither Agree nor disagree
 Strongly disagree

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Q6. Who is authorized for your appraisal?
 Department head
 Peers
 Immediate supervisor
 All the above

Q7. What method of Appraisal is used in your hotel?


Please mention.................................................

Q8. What is the step taken if the actual performance of the employees is below
standard?
 Warning
 Termination
 Increments are held
 Promotions are held
 Provide training
 Counselling

Q9. Are you given the feedbacks of your appraisal?


 Always
 Sometimes
 Never

Q10. Are the employees of your hotel satisfied with the appraisal system?
(iii) Yes (iii) Very much
(iv) No (iv) Not at all

Q11. Does your organization fees need to adopt some new method of
performance appraisal? If yes it is because of
 Standards are not clear
 Biased
 Not precise and clear
 Poor feedback/faulty feedback

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Q12. Does manager or appraised in your hotel receive any training to act as
appraiser?
 Yes
 No

Q13. If no, do you think such training shall be given to make performance
appraisal more effective?
 Yes
 No

Q14. Do you agree that in your organisation, the appraisal system helps in the
identification of:
(v) Training and Development
(vi) Salary increments
(vii) Promotions
(viii) Improvement in work area
(ix) All the above.

Q15. Are there any reward for the best performance in your hotel?
(i) Yes
(ii) No

Q16. If yes, kindly mention the rewards given


.............................. .............................. ..............................
.............................. .............................. ..............................
.............................. .............................. ..............................

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QUESTIONNAIRE (EMPLOYEES)
Q1. Are you well aware with the existing performance Appraisal system?
(i) Yes (ii) No

Q2. What do you feel about the importance of P.A.?


(i) Very necessary
(ii) Useful but not necessary
(iii) of Limited importance
(iv) Useless

Q3. Do you have regular discussions with the supervisor about your
performance and development?
(i) Always
(ii) Sometimes
(iii) Never

Q4. Are the standards of performance well communicated to you?


(i) Always
(ii) Sometimes
(iii) Never

Q5. Do you get the feedback of your appraisal?


(iv) Always
(v) Sometimes
(vi) Never
Q6. Do you agree that your supervisor is effective at communicating
important issues that may affect your job?
(i) Strongly agree
(ii) Agree
(iii) Neither agree nor disagree
(iv) Disagree
(v) Strongly disagree

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Q7. Does the appraisal system enhance communication between you and your
supervisors?
(i) Yes
(ii) No
(iii) Sometimes

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Q8. What are your views regarding the procedure of performance appraisal
in your organisation?
(i) Lengthy
(ii) Very subjective
(iii) Should be more objective
(iv) Best in its present form
(v) Needs full alteration

Q9. In what way the corrective measures are taken after the appraisal?
(i) Counselling
(ii) Training
(iii) Coaching
(iv) None of the above

Q10. Do you agree that in your organisation the appraisal system helps in the
identification of:
(i) Training and development
(ii) Salary increment
(iii) Promotion
(iv) Improvement in work area
(v) All the above,

Q11. Are you satisfied with the present appraisal system in your hotel?
(i) Very much
(ii) Yes
(iii) No
(iv) Not at all

Q12. Any additional comments as feedback about the system?


.............................. .............................. ..............................
.............................. .............................. ..............................
.............................. .............................. ..............................

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