Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
ON
“PERFORMANCE APPRAISAL IN HOTEL
INDUSTRY”
Submitted By
AAYUSH BATRA
00417701715
Vivekananda School of Business Studies
Vivekananda Institute of Professional studies
Guru Gobind Singh Indraprastha University Delhi
ii
CERTIFICATE FROM GUIDE
Date:
iii
ACKNOWLEDGEMENT
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
vi
Chapter -1
Introduction
INTRODUCTION
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.
2
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.
4
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 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.
6
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.
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.
7
Our Employees: - We are committed to growth, Development and welfare of our
people upon whom we rely to make this happen.
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
8
9
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.
10
Dinning & Entertainment
Ghazals
Timing: 1230 hrs to 1500 hrs & 1930 hrs to 2330 hrs.
11
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.
12
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.
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.
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.
15
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 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.
16
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.
17
THE EVALUATION PROCESS
ESTABLISH PERFORMANCE
STANDARDS
COMMUNICATE PERFORMANCE
EXPECTATIONS TO EMPLOYEES
MEASURE ACTUAL
PERFORMANCE
PERFORMANCE
COMPARE ACTUAL PERFORMANCE
WITH STANDARDS
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.
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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.
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
The rating system generally depends on the allocation of marks in order to qualify
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.
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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;
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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.
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.
25
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.
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LENIENCY/ HALO EFFECT
STRICTNESS CENTRAL
TENDENCY TENDENCY
PROBLEMSOF
PERFORMANCE
APPRAISAL
MISCELLANEOUS
BIASES
SOCIAL
DIFFERENTIATION
SIMILARITY
ERROR
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.
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.
The performance of executives and supervisor is appraised both by the appraiser and
appraisee. According to the evaluation. Transfers arid Promotions takes place
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)
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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.
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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.
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2. Termination
3. Increments are held
4. Promotions are held
5. Provide training
6. Counselling is given
AIM:
To enhance the performance level and motivate positively their workers for
achieving higher level of guest satisfaction.
SCOPE:
FEATURES:
Punctuality
Grooming
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2.The employees must have made some positive and tangible contribution to
his/her deptt.
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:
Features:
All the employees will be judged objectively by Deptt. heads on the following
parameters:
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.
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
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:
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 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.
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.
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.
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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
a) Yes
b) No
A= Factors
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
a) Of limited
importance
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
(iv) Annually
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
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.
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Q6. Who is authorized for your appraisal?
(i) Department head
(ii) Peers
(iii) Immediate supervisor
(iv) All the above
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
(vi) Counselling
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
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
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
(ii) Biased
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
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
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
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
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
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% 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
74
C) Counseling is given
In RADISSION:
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:-
75
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
76
Chapter VI
Summary &
Conclusions
77
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.
78
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.
79
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
81
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
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
83
Q6. Who is authorized for your appraisal?
Department head
Peers
Immediate supervisor
All the above
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
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
84
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
85
QUESTIONNAIRE (EMPLOYEES)
Q1. Are you well aware with the existing performance Appraisal system?
(i) Yes (ii) No
Q3. Do you have regular discussions with the supervisor about your
performance and development?
(i) Always
(ii) Sometimes
(iii) Never
86
Q7. Does the appraisal system enhance communication between you and your
supervisors?
(i) Yes
(ii) No
(iii) Sometimes
87
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
88