Ob Final (Copy)

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PREPARED FOR:

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AcknowledgementI would like to express my sincere appreciation to Prof. Preeti for giving us an


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opportunity to do project on THE BEST PRACTICES IN HOTEL INDUSTRY. Allthose whose support and encouragement made this research possible. This project isgreat source of learning. It was not easy to to this project but it feels great toovercoming the difficulties and complete it. We have worked as a team forcompletion of this project.

Abstract

This paper explores the service quality, productivity and human resource


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management practices of selected hotels, in an attempt to elicit common themes forsuccessful Human Resource practices in hotel management.It compares the practicesused in different cultural and employment settings with contemporary managementstyles.

Table Of Contents

History & Evolution


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Introduction

Research

People's Philosophy: Key Principles

Employee Motivation

Best Practices

Consequences Of Failure

Summary & Conclusions

Bibliography

History & Evolution


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A 'hotel' or 'inn' is defined by the British law as 'the place where a bonafide travellercan receive food and shelter provided he is in a position to pay for it and is in a fitcondition to be received'. Hence a hotel must provide food and lodging to a travelleron payment and has, in turn, the right to refuse if the traveller is drunk, disorderly,unkempt or is not in a position to pay for the services.

Early travellers were either warriors, traders or people in search of knowledge. Thiswas before the advent of hotels. Thus, warriors and conquerors pitched their tents foraccommodation, while traders and people travelling for knowledge placed a highvalue on hospitality and sometimes traded their merchandise for lodging. Inn-keepingcan be said to be the first commercial enterprise, and hospitality one of the firstservices for which money was exchanged. Inns of biblical times offered only a cot ora bench in a corner. Guests stayed in large communal rooms with no sanitation and

privacy. The rates were, of course, reasonable. The company was rough. Travellersshared the same quarters with their horses and animals. In the third century AD, the

Roman Empire developed an extensive network of brick-paved roads throughoutEurope and Asia Minor, and a chain of roadside lodges was constructed along themajor thoroughfare from Spain to Turkey.

Till the industrial revolution of the 1700s, no significant improvement was made inthe inns and taverns, and they were not very suitable for aristocrats. To accommodatewealthy travellers, luxurious structures were constructed with private rooms,individual sanitation and the comforts of a European castle. These elegant newestablishments adopted the French word for mansion - 'Hotel'. Not surprisingly, theirrates, too, were beyond the reach of an ordinary person. In America early inns were

modelled after European taverns, with sleeping quarters shared by two or moreguests.

Early history of accommodation for travellers can be traced back to the Greek word'xenia' which not only meant hospitality, but also the protection given to a travellerfrom discomforts. The city was bound to traditions of hospitality. In Sparta city,despite rigorous customs restricting visitors, goddess Athena was considered a

'protector of strangers'.

In this period travellers were mainly diplomats, philosophers, intellectuals and

researchers. Guests were invited to stay with the nobleman. In ancient Olympia,buildings constructed with the aim of accommodating strangers are still visible. Theywere called 'Leonardo' and were built in fourth century BC. The concept ofhospitality can also be traced back to ancient times. Mention of it is found in Iliad andThe Odyssey by Homer. Hotel keeping can also be traced back to many centuries andits evolution through the ages has been brought about by Britain's economical andindustrial changes and developments. The next stage in the cycle of evolution of thehotel industry was the coming of the motor car. It enabled people to visit those parts

of the country which could not be reached by railways. This gave birth to inlandresorts and the hotel industry began to flourish. International air travel has helped


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create the modern stop-over hotel. With the increase in this form of travel, thenumber of hotels built close to airports has multiplied. Another trend in hotel keepingis the Motel, which is the twentieth century version of the old Coach Inn. Peopletravelling the country by car, stopping overnight here and there; require not onlyrefreshment for themselves, but also safe parking for their cars. Post houses,

developed by the Trust houses Forte Group, are in fact the modern version of the oldcoaching inns. This is probably why Britain is considered as the 'motherland of hotelindustry'.

Price, Service, Amenities

Hotels (as well as other forms of accommodations) are generally segmented by theservices and amenities offered. These two factors, along with location, also have a

bearing on the price range.

Budget hotels offer clean albeit simple rooms that provide the basics of places tosleep and shower. Usually budget hotels are designed for travelers looking tomaximize their funds and minimize expenses. Prices can range from $20US per nightto $70US per night.

Business hotels offer a high standard by providing rooms equipped with whatbusiness travelers would consider necessities. Usually found in business-class hotelrooms are high speed Internet connections, alarm clocks, comfortable beds, irons and

ironing boards, coffee makers, complimentary newspaper delivery and hairdryers.Rates can range from $80US per night to $250US per night.The facility of a business hotel would also offer an in-house restaurant, bar, exerciseroom and shuttle service to nearby airports. Limit concierge assistance is oftenincluded as well as room service, laundry and dry cleaning and wake-up calls.

Luxury hotels are known for their lavish decor and extraordinary service. Withsuperior amenities, accommodations at luxury hotels are designed to thoroughly

pamper and impress guests. According to a Business Week Online article, those in the

luxury market are getting harder to please stating that luxury goods and serviceproviders can't afford to blunder with the level of service and customer experiencethey provide. For this reason, many luxury hotels go far beyond the norm by

providing a lifestyle experience equal to or better than what guests have becomeaccustomed to at home.

Luxury hotels frequently offer full-service day spas, five-star restaurants staffed by


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world-class chefs, ballrooms, lavish pools, golf packages and guest services that areunsurpassed by any other class of hotel. In addition, luxury rooms generally includethose amenities found in business class hotels plus in-room safes, goose downcomforters and pillows, marble showers and tubs, larger rooms, separate sitting orliving area and fog-free bathroom mirrors. Rates can range from $129US per night to

$2,000US per night.

Rates vary greatly depending on location and proximity to popular events andattractions. There are other classifications of hotels , however, most will fall into oneof these three or a combination of these three. With the lines between business and

personal becoming more blurred, many entrepreneurs and business executives willattend conferences or embark on business trips with family in tow. Hotels are awareof this common occurrence and have become adept at providing facilities and service

both business and recreational travelers enjoy.


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Introduction

Designing integrated the most powerful ways to ensure the creation of value forcustomers and profitability for owners. In todays competitive environment, high-

performing organizations have learned how to deploy human- resources (HR)practices to enhance competitive advantage. The most successful firms create a bundleof employee practices that are customer focused, are aligned with each other, andreinforce the organizations strategic position. Innovative hotel companies aredeveloping their human-resources practices to help build and sustain organizationaleffectiveness. In a comprehensive study on best practices in the lodging industryconducted by professors affiliated with Cornell Universitys hotel school, a selectgroup of companies was identified as being notable for their human-resources efforts.In this paper we have examined five categories of HR best practices on the specific

practices adopted by champions.

The five categories of best practices are:

(1) Leader development,

(2) Training and knowledge building,

(3) Employee empowerment,

(4) Employee recognition, and

(5) Cost management.

In addition, we present the practices of three champions who devised comprehensivepractices that incorporated many different types of HR practices. We provide anoverview of the human-resources champions and their practices and discuss the

practices benefits and then conclude with the insights and advice of the practice

champions to assist those who may want to adapt and improve a practice for thebenefit of their own firms. In the best-practices study the largest number of championswas in the area of human resources. This finding is not surprising given the centralrole that employees play in successful hotel operations. The champions in humanresources identified by peer organizations and managers are listed with a briefdescription of the practice and the name and address of a contact person.

The goals of the management development practices of Choice Hotels, MarriottInternational, Motel 6, and Day Hospitality are to ensure that their future leadersdevelop essential skills and competencies and, furthermore, that the pipeline of futureleaders remains full. Two of these champions Choice Hotels and MarriottInternationaldeveloped comprehensive, chain-wide leadership-development

programs.


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Research

As understood by outcome of several studies, employee loyalty and efficacy are core

reasons behind the success and superiority of several hotels. We have taken intoconsideration the HR policies of three hotel chains in India that are consideredamongst he best hotels within the country and abroad. In accordance to Businessoutlook, Taj is ranked as 3rd , ITC as 5th and Oberoi as 15th best employer.

TAJ Group of Hotels:

The Taj Group of Hotels is run by IHCL, a part of the Tata Group. IHCL was foundedby Jamsetji Nusserwanji Tata on April 1, 1902. The hotels in the Taj Group fall intothree categories hotels owned by IHCL and its subsidiaries; hotels owned byassociate companies; and hotels with third party management contracts in whichIHCL has no stakeIn March 2001, the Taj Group launched an employee loyalty program called the'Special Thanks and Recognition System' (STARS). STARS was an initiative aimedat motivating employees to transcend their usual duties and responsibilities and havefun during work. This program also acknowledged and rewarded hard workingemployees who had done excellent work.The Taj Group had always believed that their employees were their greatest assetsand the very reason for the survival of their business. In 2000, to show itscommitment to and belief in employees, the Taj Group developed the 'Taj People

Philosophy' (TPP), which covered all the people practices of the group. TPPconsidered every aspect of employees' organizational career planning, right from theirinduction into the company till their superannuation. TPP offered many benefits tothe Taj Group. It helped the company boost the morale of its employees and improveservice standards, which in turn resulted in repeat customers for many hotels in thegroup.Some of the key points of the Taj Charter are given below:Every employee of the Taj Group would be an important member in the Taj family.The Taj family would always strive to attract, retain and reward the best talent in the

industry. The Taj family would commit itself to formal communication channels,which would foster transparencyThe Taj Group introduced a strong performance management system, called theBalanced Scorecard System (BSS) that linked individual performance with thegroup's overall strategy. BSS was based on a model developed by Kaplan and

Nortan , and focused on enhancing both individual as well as enterprise performance.BSS measured the performance of employees across all hierarchical levels against aset of predefined targets and identified their variances.STARS, operative throughout the year (from April to March), was open to all

employees across the organization, at all hierarchical levels. It aimed to identify,recognize and reward those employees who excelled in their work. STARS wasactively promoted across the group's 62 chain of hotels and among its 18,000


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employees globally, out of which 15,000 were from India.STARS had five different levels. Though employees did not receive any cash awards,they gained recognition by the levels they attained through the points theyaccumulated for their acts of kindness or hospitality. 'Level 1' was known as the'Silver Grade'. To reach this level, employees had to accumulate 120 points in three

months. To attain 'Level 2', known as the 'Gold Grade,' employees had to accumulate130 points within three months of attaining the silver grade. To reach 'Level 3', calledthe 'Platinum Grade', employees had to accumulate 250 points within six months ofattaining the gold grade. To attain 'Level 4', employees had to accumulate 510 ormore points, but below 760 points, to be a part of the Chief Operating Officer's club.'Level 5' which was the highest level in STARS, enabled employees to be a part of theMD's club, if they accumulated 760 or more points.Points were granted to employees on the basis of parameters like integrity, honesty,kindness, respect for customers, environmental awareness, teamwork, coordination,

cooperation, excellence in work, new initiatives, trustworthiness, courage andconviction, among others. Suggestions by employees that benefited the organizationfetched them significant points (Refer Exhibit III). Such suggestions in each hotel ofthe Taj Group were examined by the General Manager, HR Manager and trainingmanager of the hotel the employee worked in. The suggestions could also be postedon the web, which were constantly monitored.Employees could also earn points through appreciation by customers, 'compliment-a-colleague' forums[1] and various suggestion schemes. Employees could also get'default points' if the review committee did not give feedback to the employee withintwo days of his/her offering a suggestion for the betterment of the organization. Insuch cases, the employee concerned was awarded '20 default points.' Hence, in anindirect manner, the system compelled judges of the review committee to givefeedback to employees as early as possible.STARS helped employees work together as a team and appreciate fellow employeesfor their acts of kindness and excellence. It enhanced their motivation levels and ledto increased customer satisfaction. In one case, a bellboy in one of the group's hotelwho received an American customer went out of his way to care for the customer.

Noticing that the customer, who had arrived late at night, was suffering from cold, heoffered to bring him a doctor. However, the customer refused the boy's offer. The

bellboy then, on his own, offered a glass of warm water mixed with ginger and honey,a traditional Indian home remedy for cough and cold. The customer felt surprised andalso happy at the bellboy's gesture. He left a note of appreciation for him, whichadded to his existing points.According to the number of points accumulated, employees would receive a star,which could be pinned on to their coat. When a certain number of points werecollected, employees received gift hampers, cash vouchers or a vacation in a TajHotel of their choice in India. The winners of STARS were felicitated at a functionheld in Taj, Mumbai. The winners' photographs were displayed on a big screen at the

function and they received awards given by the MD of the Taj Group. This awardsceremony significantly boosted their morale.


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The STARS program had generated lot of attention among the employees at the TajGroup. During the initial phase, not every hotel seemed to be serious about adoptingSTARS, but after the first awards ceremony was conducted, every hotel in the groupreportedly became very serious about the implementation of STARS. Reportedly,

customer satisfaction levels increased significantly after the implementation ofSTARS. Commenting on the success of STARS, Martyris said, "After the campaignwas launched, a large number of employees have started working together in the truespirit of teams and this helps us value our human capital. There are stars all around us

but very often we look only at stars outside the system. Many employees do that extrabit and go that extra mile, out of the way to dazzle the customer satisfaction withemployee recognition. Employee recognition is, hence, directly linked to customersatisfaction. It is recognition for the people, of the people and by the people." STARSwas also used by the group as an appraisal system, in addition to its regular appraisal

system.

ITC Group of Hotels:

ITC was incorporated on August 24, 1910 under the name Imperial TobaccoCompany of India Limited. As the Company's ownership progressively Indianised,the name of the Company was changed from Imperial Tobacco Company of IndiaLimited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in1974.In 1975 the Company launched its Hotels business with the acquisition of ahotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'.ITC's hotel division, known as ITC hotels is one of the leading and fastest growinghotel chains in India. ITC hotels, together with the Welcome group (known as ITC-WelcomeGroup of hotels) have a chain of more than 70 five-star hotels across sixty

places in India. ITC hotels are the pioneers for various practices and landmarks in thehospitality industry.

Communication of Company Plans

All major business developments and decisions involving expansion, growth andfinancial performance of the organisation are shared with employees and otherstakeholders through several communication media and platforms. These include

ITC News, the corporate house journal which reaches out to all employees withinthe organisation and Intranet portals like the Learning Curve, Manthan andBhadranet. Senior managers of the Company visit each location to communicate

business plans to help align employees aspirations and efforts with corporate andbusiness goals.ITC Hotels has institutionalised Departmental Open Fora. All employees of adepartment meet once every quarter under these fora to formally discuss issuesrelating to productivity, service and working conditions.


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Employee Benefit Schemes

ITC has a number of employee benefit schemes that go much beyond what is legallymandated. One of these is the post retirement non-contributory pension, which waslaunched in 1986 as a platinum jubilee gift for unionised employees. Some of the

other employee benefit options in this category include the Family HospitalisationAssistance Scheme, Welfare Assistance, Accident Relief, Emergency Relief, supplyof uniforms to all unionised employees, and in some locations, also to managementstaff.ITC also offers Housing Loan Assistance, Educational Assistance and coachingclasses for employees children at Munger, Saharanpur, Chirala, and Anarparti, careerguidance for employees children at Kidderpore and the Head Office in Kolkata.Recreation Clubs have been set up at Bengaluru, Kidderpore, Munger, Bhadrachalam,Tribeni and all ILTD locations. There are ITC-aided schools in remote locations likeTiruvottiyur, Munger, Saharanpur, Tribeni and Bhadrachalam. ITC has set upsubsidised canteens in factories and other establishments and co-operative stores atsome of its locations. Co-operative societies in most ITC establishments promotethrift and provide loans on nominal interest charges.ITC-Welcomgroup runs a premier hotel management institute, the WelcomgroupGraduate School of Hotel Administration at Manipal in Karnataka. It is run inassociation with the Dr TMA Pai Foundation, affiliated to the Manipal Academy ofHigher Education (MAHE), a deemed university. The institution runs a 4-yearBachelor of Hotel Management programme and is considered a leader in this field.ITCs Hotels Business also runs the Welcomgroup Hotel Management Institute at

Gurgaon, near Delhi.

Human Rights

All relevant principles and guidelines pertaining to human rights, as prescribed bythe International Labour Organisation (ILO), have been enshrined in the IndianConstitution. These form the bulwark of the different labour statutes prevalent in ourcountry that guide our operations.In the management of businesses and operations that create economic value for thenation, ITC scrupulously adheres to all the applicable laws and regulations at all

levels. The Factories Act and the Shops and Establishments Act forbid the use ofchild labour. All ITC Units strictly comply with this policy. According to ITCsstanding instructions, anybody who has not completed eighteen years of age cannot

be employed. The policy is enforced not only through the Companys HumanResources function, but also, through the Companys security system that preventsminors from entering any ITC premises to work. ITCs labour policies and workculture encourage freedom of association across different classes of employees anddo not allow for any form of discrimination or forced labour.ITC conducts its disciplinary procedures in strict conformity with the principles of

natural justice and in accordance with the Companys Standing Orders and StandingInstructions at each business location.Maintaining absolute neutrality in dealing with peoples grievances and ensuring


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natural justice are the cornerstones of ITCs interaction with its people andconfidential handling of employees grievances. Compliance with statutes andcorporate policies is regularly monitored by the Corporate Internal Audit function,external statutory auditors and relevant statutory authorities, who are responsible forensuring the framing, implementation and monitoring of these statutes.

ITC is committed to ensuring a gender-friendly workplace in order to:

Provide equal opportunities for men and womenPrevent/stop/redress sexual harassment at the workplaceGuarantee good employment practicesITC set up a Committee in 1999 to enquire into complaints of sexual harassment, ifany, and to recommend appropriate action relating to complaints that aresubstantiated with adequate evidence. Men and women are equally represented onthis Committee. The Committee, which is headed by a woman, also has an NGO

representative.

OBEROI Group of Hotels:

Oberoi Hotels and Resorts, a leading player in Asia's hospitality sector, was foundedin 1934. A part of The Oberoi group, Oberoi Hotels and Resorts are ranked amongsthe top 10 players in the global hospitality industry. The Oberoi group has 32 hotels infive countries under the two brands of Oberoi Hotels and Resorts and Trident Hilton.Oberoi Hotels and Resorts are known for its services, luxury and services throughoutthe world and enjoys the loyalty of its customers.

The Oberoi Group employs more than 12000 employees across the world. Selectedafter tough and thorough recruitment processes, Oberoi Group has a well trained andgroomed staff, committed to excellence and quality services. The group also has TheOberoi Centre of Learning and Development (OCLD), for the training anddevelopment of its employees. Recruitment activities are conducted very year fortraining programs in OCLD and for various other specialists and support functions.The Oberoi Group employs more than 12000 employees across the world. Selectedafter toughand thorough recruitment processes, Oberoi Group has a well trained andgroomed staff,committed to excellence and quality services.The group also has The

Oberoi Centre of Learning and Development (OCLD), for the traininganddevelopment of its employees. Recruitment activities are conducted every year fortraining programs in OCLD and for various other specialists and support functions.


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PEOPLE PHILOSOPHY: Key Principles

Organisation structure and meaning: Organisational structures are lean, with aminimum number of levels and with clear individual reporting and accountability.

Recruitment and selectionAt every level of the organization, people of the highest quality and with the highest

potential to advance business are selected.

Performance appraisal

To inculcate a culture of personal growth and organizationalexcellence based onprinciples of performance based results.

Learning and development

They aim for world class managerial and technical excellenceusing continuouslearning and development to support the business and encourage growth fromwithin.

Career development

We will provide careers, not merely jobs, to our people, throughdeveloping them inways where organizational needs are matched with personal strengths and potential.

Succession planning

Our focus on development of people will reflect our internationalcharacter and ensure

that we have the right number of employees with the appropriate skills inthe rightplace at the right time.

Training

Transfers, national and international, will be based on organizational needs andcareerdevelopment requirements of the individual.

Compensation

Our compensation philosophy will enable us to recruit and retain the best andthe most

highly motivated talent, and will encourage the highest level of performanceamongstour employees through result based reward and recognition, and be related tothe Companysoverall business performance.

Employee relations

To create preserve and open harmonious environment in whichemployees at all levelswill want to give off their very best in delivering world class service atthe highestlevel of productivity.

Retention

Retention of talent is the key management responsibility as is separation ofthosewhose performance is consistently below par or who breach the accepted ethical


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standards andrules of conduct

Employee Motivation

Management structures and styles:

Hotel management structures, along European lines, have traditionally beenhierarchical and segmented,with clear divisions between departments and littleupward communication.Costs,inefficiencies and inflexible guest services have often

been the result.

A Service First philosophy demands close inter-departmental relationships(especially between housekeeping and front office) and the effective inclusion ofemployees in some levels of decision-making and problem-solving.

Those hotels which have embraced the concept have generally aimed to reducemanagement levels,adopt new managerial styles and improve both horizontal and

upward communication channels.

Some have removed management levels,encouraged existing managers to act asmentors,trainers and monitors,and instituted supervisor-employee meetings and hotelnewsletters.As examples,the Penang Resort and the Jakarta International haveattempted to adopt management styles which combine necessary control withemployee involvement or empowerment,and improved existing communicationchannels.Quality circles and,in some instances,total quality management

programmes,have been implemented to encourage employee ownership and allow forupward feedback.

The Seaview Resort,as earlier mentioned, has tried to encourage greater employeecommunication by conducting a series of small,work group meetings.


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Best Practices

However, the greatest impact on both service quality and productivity in hotels islikely to derive from efficient and effective Human ResoUrce practices.

The physical environment is both the arena for guest service and the workplace ofhotel service-providers.Thus its design should reflect both ambience and utility.Thiscan be achieved by the involvement of hotel managers,front office and housekeepingstaff at design phase as well as during subsequent renovations.Physical structures canalso reflect national environments or emphasise guest purposes. Room designsimilarly can satisfy guest expectations as well as improve employee productivity.

Management structures appear to be changing from traditional hierarchies to

leaner,service-focused,levels,improving communication with front-line employeesand providing more personalised and more efficient guest service.Some hotels haveremoved middle-management levels,others have adopted inverted pyramid, ServiceFirst structures.

Management styles inform or reflect structural changes,with the preferred mixturesof centralised and decentralised control,including, in some cases, substantialemployee empowerment. Guest and employee feedback is both encouraged andactively sought in the best hotels and subsequently used to remedy problems or adaptto changing guest expectations.

The achievement of service excellence and productivity standards is ensured byintegrated and comprehensive HR practices, including effective recruitmenttechniques; training and development programmes; appraisals, incentive and rewardschemes; job enlargement and niulti-skilling systems.


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Consequences Of Failure

Human Resources (HR) Planning is integral to the efficient running and continuedsuccess of businesses, enterprises and even start-up companies. At times, manycorporations and business owners due to circumstances, certain business factors orextraneous issues have a badly mismanaged top management tier and inconsequentialHR departments. The resultant poor human resource planning has an immediate andlong-term impact on organizational functioning, employee recruitment andmanagement policies and corporate profitability.Following are some points whichmay lead to failure in their management -

Poor HR Planning and Management

An incompetent and poorly functioning human resources department reflects theoverall state of affairs of an organization and its possible uncompetitive position inthe marketplace. There is a disconnect between the HR department and the executivemanagement leading to miscommunication, poor decision making on operationalaspects and critical mistakes. Employee training and development programs are not

properly budgeted for and hiring practices are skewed. Bad HR planning ensures thatthe HR assets of the organization are not aligned to organizational goals and

objectives.

Unmotivated Employees

The indifferent attitude of top management and HR quickly filter acrossorganizational levels and employee hierarchies. Work ethics get affected, there are

personality conflicts and teamwork becomes non-existent. There is grossunderutilization of skills and capabilities of experienced employees. Other talented

professionals are not groomed in a generally negative working environment. Poormotivation and lack of incentives and recognition lead to poor performance and even

production of poor quality of goods and services.

Employee Demand-Supply Mismatch

Recruiting and selecting employees is a continuous cycle. Based on business growth,expansion plans and requirements for specific projects and assignments, employeesneed to be hired. In a mismanaged organization, HR personnel with a lackadaisicalattitude and lack of communication with departmental managers and supervisors arehard-pressed to address workforce requirements. Vacancies and job postings don't getfilled in time and key business functions and operations get affected--having a knock-

on affect across the organization.


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Higher Staff Turnover

Poor human resource planning begins to reflect on the corporate ethos of anorganization. The working culture is affected and is generally negative. Performancereviews and performance appraisal systems are badly managed and employeesuncertain about their immediate and future prospects. Employee safety practices andworking conditions can be compromised at factories and manufacturing facilities.Poor working conditions force many workers to quit. Many other employees are alsoforced to leave the organization.

Impact on Bottom Line

A dysfunctional HR roadmap or ineffective HR management strategy has long-termconsequences for an organization. It affects the performance of a business and the

productivity levels of employees.Customer service on all fronts gets affected. Theloss of customers and medium-term revenues is quite immediate.Over a period oftime, the freefall leads to an impact on the bottom line of an organization.


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Summary and Conclusions

This project aimed to review the approaches of a selection of five-star hotels in

our nearest region, to service excellence, productivity and human resourcemanagement practice. It was to serve as a framework for a subsequent broadstudy of comparable Australian hotels, and ultimately to establish benchmarksfor best practice.

The relatively small sample of hotels studied, and their diverse nationalenvironments and labour market features preclude comprehensiveconclusions, but the study does raise several pertinent issues for all hotelmanagers.

All hotels in the future will need to recognise that their guest markets are

constantly changing in response to international economic conditions, regionalcompetition and governmental tourism strategies. Competition willincreasingly be internal, between five, four and three star hotels, as well asregional. It is therefore crucial that each hotel continuously defines its uniquefeatures, present and future guest markets, and develops appropriate strategicmarketing plans to maintain competitive advantage.

Additionally, governmental tourism strategies and industry support will beessential, in both promotional campaigns and infrastructure development.Australia and Singapore presently have advantages over Malaysia and

Indonesia in both these areas, but this is likely to change rapidly in future. TheSingapore Productivity 2000 movement and the Indonesian self-fundingtourism promotion charge may provide useful precedents here. Malaysia andIndonesia have considerable advantages in the availability, attitudes and costsof hotel labour. Australia will require creative industrial relations strategies torealise the opportunities offered by award restructuring and enterpriseagreements to redress this significant imbalance. They will undoubtedly needassistance from government and industry associations in this process.

However, as illustrated by several of the case-studies, hotel managers themselveswill also need to grasp the nettle of change, involving reviews of the physicalenvironment of their hotels, management structures and styles, definitions ofservice quality and productivity, their monitoring and measurement.

The physical environment is both the arena for guest service and the workplace ofhotel service-providers. Thus its design should reflect both ambience andutility. This can be achieved by the involvement of hotel managers, frontoffice and housekeeping staff at design phase as well as during subsequentrenovations. Physical structures can also reflect national environments, as in

Bali and Penang, or emphasise guest purposes, as in Jakarta and Singapore.Room design similarly can satisfy guest expectations as well as improveemployee productivity.


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Management structures appear to be changing from traditional hierarchies toleaner, service-focused, levels, improving communication with front-lineemployees and providing more personalised and more efficient guest service.Some hotels have removed middle-management levels, others have adoptedinverted pyramid, Service First, structures.

Management styles inform or reflect structural changes, with the preferredmixtures of centralised and decentralised control, including, in some cases,substantial employee empowerment. Guest and employee feedback is bothencouraged and actively sought in the best hotels and subsequently used toremedy problems or adapt to changing guest expectations.

The achievement of service excellence and productivity standards is ensured

by integrated and comprehensive human resource management practices,

including effective recruitment techniques; training and development

programmes; appraisals, incentive and reward schemes; job enlargement

and niulti-skilling systems.

The most successful hotels in this study appear to be those which have clearvisions, dynamic marketing strategies, comprehensive guest service andemployee satisfaction systems, regardless of national environment.


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Bibliography

http://www.google.com

http://www.naukrihub.com/best-workplaces/hospitality-employers

http://www.naukrihub.com/best-workplaces/hospitality-employers/oberoi-hotel.html

http://www.youtube.com/watch?v=q5kn4OBRxro
http://www.naukrihub.com/best-workplaces/hospitality-employershttp://www.naukrihub.com/best-workplaces/hospitality-employers/oberoi-hotel.htmlhttp://www.youtube.com/watch?v=q5kn4OBRxrohttp://www.naukrihub.com/best-workplaces/hospitality-employershttp://www.naukrihub.com/best-workplaces/hospitality-employers/oberoi-hotel.htmlhttp://www.youtube.com/watch?v=q5kn4OBRxro

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