challenges issue- hotel

8/8/2019 Challenges Issue- Hotel

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The Human Resource Challenges And Issues Faced By The Hotel Sector Worldwide InManaging The Acute Shortage Of Labour Due To Explosive Growth Of The Hotel IndustryAnd High Attrition Rate Of Workforce.

ACKNOWLEDGEMENT

I would like to take this opportunity to thank Ms Vaishali Shinde faculty of HumanResource Management, librarians Mrs. Rupa Mathew, Mr Gajanan, Mrs. BhagwatiBhainsara, and Ms. Monali Sarode for helping us in finding appropriate books for compiling the above document. This is an assignment, which was undertaken to enable usto gain knowledge about the human resource management.SYNOPSIS

It is party time for hotel companies in India and various countries around the world !Domestic companies are aggressively adding rooms and setting up green-field projects.Foreign hotel companies are making full use of the relaxed norms for foreign directinvestment in India. In the next five years, we should expect to see around 40 differenthotel brands dotting the Indian landscape. Four years ago, hotel managers talked of raising occupancy and average rate as their biggest challenge. Matters like HumanResources were low on their list of priorities. Today, however, hotels are vying with each

other to capture the best talent. Most of the time, it simply a matter of numbers: as morerooms and more properties are added, a larger number of people are needed – to lead, tomanage and to execute the various functions involved in operating a hotel. Hotelmanagers are acknowledging the short supply of quality manpower to be the biggestobstacle they face. Trained personnel are being actively recruited not only by competinghotel companies but also by sunrise sectors like retail, BPO and aviation. The ‘balance of power’ is steadily shifting from employers to employees. The addition of even one newhotel in a city seriously impacts the HR equilibrium of existing hotels with similar marketorientation. If the present situation is disturbing, the not-so-distant future is frightening!This article aims to assess the human resource requirement for the hospitality industryand the steps Human Resource should take to survive from the acute labor shortage.TABLE OF CONTENT|NO |INDEX |PAGE No |

|A |DECLARATION |1 ||B |ACKNOWLEDGEMENT |2 ||C |SYNOPSIS |3 ||D |TABLE OF CONTENT |4 ||1 |INTRODUCTION |6 ||2 |HUMAN RESOURCE MANAGEMENT |7||2.1 |IMPORTANCE OF HUMAN RESOURCE MANAGEMENT IN ORGANIZATION..|8 ||2.1.1 |AFFECT OF EXTERNAL INFLUENCES ON HRM……………………………………|9 ||2.1.2 |THE HRM STRATEGIC ENVIRONMENT……………………………………………...|10 |

|2.1.3 |GOVERNMENT LEGISLATION…………………………………………………………|10 ||2.1.4 |LABOUR UNIONS………………………………………………………………………….|11 ||2.1.5 |MANAGEMENT THOUGHT……………………………………………………………...|11 ||2.2 |MEANING OF Human Resource Management……………………………….|11 ||2.3 |need for human resource management…………………………………...|12 |



|2.4 |human resource objectives…………………………………………………….|13 ||2.5 |downsizing and rightsizing……………………………………………………..|14 ||3 |HUMAN RESOURCE MANAGEMENT PROCESS|15 ||3.1 |STAFFING…………………………………………………………………………………..|16 ||3.1.1 |RECRUITING……………………………………………………………………………….|17 ||3.1.2 |PERFECTING INTERVIEW PROCESS…………………………………………………|19 ||3.1.3 |EVALUATING CANDIDATES……………………………………………………………|20 ||3.2 |TRAINING AND DEVELOPMENT………………………………………………………|20 ||3.2.1 |VARIOUS TRAINING METHOS…………………………………………………………|22 ||3.2.2 |DETERMINING TRAINING NEEDS…………………………………………………….|24 |

|3.2.3 |ORIENTATION……………………………………………………………………………..|25 ||3.3 |MOTIVATION………………………………………………………………………………|25 ||3.3.1 |MASLOW’S HIERACHY OF NEED THEORY…………………………………………|25 ||3.3.2 |HERZBERGS THEORY OF MOTIVATION…………………………………………….|27 ||3.3.3 |APPRAISALS………………………………………………………………………………..|28 ||3.3.4 |REWARDS AND BENEFITS………………………………………………………………|29 ||3.3.5 |COMPENSATION…………………………………………………………………………..

|30 ||3.3.6 |PAY STRUCTURE………………………………………………………………………….|30 ||3.3.7 |INCENTIVES………………………………………………………………………………..|31 ||3.3.8 |EMPLOYEE BENEFITS……………………………………………………………………|31 ||3.4 |MAINTENANCE…………………………………………………………………………….|32 |

|4 |GLOBAL HUMAN RESOURCE PRACTICES|34 ||4.1 |MAHAGING WORKPLACE DIVERSITY………………………………………………

|34 ||4.2 |TRAINING AND DEVELOPMENT………………………………………………………|35 ||4.3 |PERFORMANCE AND PRODUCTIVITY……………………………………………….|35 ||4.4 |EMPLOYEE SATISFACTION TRAKING SYSTEM…………………………………...|35 ||4.5 |REWARD PROGRAMS……………………………………………………………………|36 ||4.6 |STRATEGIC DEVELOPMENT OF HUMAN CAPITAL RESOURCES……………



|36 ||4.7 |REDUCING EMPLYEE TURNOVER……………………………………………………|37 ||4.8 |VOCATIONALLY EDUCATED STAFF…………………………………………………|37 ||4.9 |LEGAL CONSTRAINS AFFECTING HRM……………………………………………..|38 ||5 |BALANCE SCORECARD |41||5.1 |ADVANTAGE OF BALANCE SCORECARD…………………………………………...|44 ||5.2 |SHORTCOMING OF THE BALANCE SCORECARD…………………………………|45 ||5.3 |BALANCE SCORECARD: HOTEL PRESPECTIVE…………………………………...|45 ||5.4 |LIMITATIONS ON APPLICATION OF BALANCE SCORECARD………………….|46 ||6 |PERFORMANCE MANAGEMENTR SYSTEM: AN OVERVIEW|47 ||7 |INDIAN HOTEL SCENARIO |52

||8 |CONCLUSION |54 ||9 |BIBLIOGRAPHY |57 |1. INTRODUCTION

The most important resource of an organization is its human resources – the people whowork in the organization. People are vital for the effective operation of a company. To meetthe challenges and competitive atmosphere of today’s business environment, managersmust recognize the potential of human resources, and then acquire, develop and retainthese resources. This forms the basis of human resource management (HRM). HRM is themanagement of various activities that are designed to enhance the effectiveness of themanpower in an organization in the achievement of organizational goals. Acquiring skilled,talented, and motivated employees is an important part of HRM.

Human resource management forms a crucial function in organizations of all sizes. Larger firms usually have a separate HRM department. Small organizations, however, cannotalways afford to have a separate HRM department that can continually follow theperformance of individuals in the organization and review their accomplishment of goals.Instead, in such organizations, each manager is responsible for utilizing the skills andtalents of the employees under him, effectively. Traditionally, HRM departments had arelatively small role to play in the organization’s overall mission and plans. Theydeveloped staffing plans, handled complaints, determined benefits and compensation, andconducted performance appraisal programs.

These activities were, and still are, very important in managing an organization. However,today HRM departments are playing a more strategic role in charting the course of their

firms.

Changes in the environment, such as increasing costs, changing demographics andlimited skilled labor supply, rapid technological changes and the need for new skills, havecreated a strategic need for HRM expertise. These changes have led to theacknowledgment that human resources need careful attention and are vital to the successof any business.

We will first discuss HR planning. The other steps in the HRM process – staffing, trainingand development, performance appraisal, and compensation will also be discussed. The



later part of the chapter will discuss the two important elements of staffing – recruitmentand selection. The chapter concludes with a description of the socialization process of new employees.

2. Human Resource Management

According to Metter E., 1995, “A Human Resource is a single person or employee withinyour organization”. Human resources are the most important part of an organization andwithout the presence of Human resources; a company or an organization would not beable to move.

According to Dessler G., 1997, Human Resource Management, “the policies and practicesone needs to carry out the people or human resource aspects of a management position,including recruiting, screening, training, rewarding and appraising”. Human resourcemanagement refers to the practices and the policies you need to carry out the people or personnel aspects of your management job. These include

• Conducting the job analysis (determining the nature of each employee’s job)• Planning labor needs and recruiting job candidates• Selecting job candidates

• Orienting and training new employees• Managing Wages and Salaries (how to compensate employees)• Providing incentives and benefits• Appraising performance• Communicating (Interviewing, counselling, disciplining)• Training and developing• Building employee commitment2.1 IMPORTANCE OF HUMAN RESOURCE MANAGEMENT IN ORGANIZATION:

Prior to 1960’s Human Resource Management departments were called the health andhappiness crews. Their earlier work was planning picnics, allotting vacations, enrollingworkers for health care coverage, ad planning retirement parties. That has changed duringthe past three decades. Federal and state laws have placed on employers many new

requirements concerning hiring and employment practices. Jobs have also changed. Theyhave become more technical and require employees with greater skills. There are nolonger job boundaries which mean in the past a worker performed job in a specificdepartment, working with people who did similar tasks, however now a days workers findthemselves working with people all across the organization. Global competition hasincreased the importance of improving workforce productivity and looking globally for thebest qualified workers. Thus organizations now need Human Resource Managementspecialists trained in psychology, sociology, organization and work design and law.

Federal legislation requires organizations to hire the best qualified candidates irrespectiveof sex, caste, religion or national origin – and someone must ensure that this is done. Thetraining of employees is very important and again someone must oversee this andcontinuously work towards the personnel development of the employees someone must

ensure that the workers maintain their productive affiliation with the organization.According to Boella M J, 1992, The work environment must be structured to encourageworker retention and attracting new applicants. All this while, someone’s that we refer toare the Human Resource professionals.

Today’s Human Resource professionals have got an elevation in their jobs and theimportance of Human Resource professionals has increased with time. Although the termpersonnel and human resource management are frequently used interchangeably, the twohave quite different meanings. The Human Resource head, once as ingle individualheading the personnel function, may be a vice president sitting on executive boards ad



Human Resource Management is individual oriented as it helps in the personal✓ development of individuals.

Human Resource Management is people oriented as it all about people at work as✓ individuals or groups.

Human Resource Management is development oriented as it intends to develop the✓ full potential of employees.

Human Resource Management tries to build and maintain cordial relations between✓ people at various levels.

Human Resource Management department exist to assist and advise the line to do✓ work properly.

Human Resource Management is a continuous function.✓

2.3 Need for Human Resource Practices

Statistics have proven that the service industry is responsible for over three-fourths of allemployment and is expected to account for almost all the net job growth during the nextdecade. It is predicted that as this industry grows in size and in economic importance,companies need to rediscover the value of those who deliver service in their organization.These would only be possible if the companies find creative approaches to finding,training and retaining the best customer contact employees. While, unfortunately, most

companies still view them as mindless robots, a few have managed to realize their importance and have made headway in encouraging them through conscientiousmanagement programmes in the façade of the human resources division in anorganization such as in hotels and restaurants.

A large chunk of the GDP is provided by this section of people, therefore making it fair tosay that the prosperity of the service oriented companies, as well as the economy as awhole, depends to a growing extent on the workers who provide such service. Yet whilethis customer contact employees, front line service providers constitute of a large sectionof development in India, they sometimes remain less appreciated.

According to Kuemmler .K et al, 1996, This being the scenario, companies require to workharder to please their value driven customers, more emphasis is being placed on the

process of finding, training and keeping those employees who can provide extraordinaryservice. This does not necessarily mean employers are looking for workers with advancedlevels of education, technical expertise, or experience. It just means that as expectationsare increasing and organizational hierarchies are flattening, people are needed who areimaginative yet compassionate, ambitious yet competent, and flexible all at the same time.

The company’s priority goal should however be to find and keep these people. Companiesare encouraged to hire friendly people, treat them kindly, provide them with the finesttechnology, and encourage emotional bonding between the company and employee. Inaddition, to survive this period of rapid evolution, companies must grant these employeesmore authority, provide them with more training, and link at least part of their pay tocustomer satisfaction. In natural succession then, both customers and profits would beexpected to show.

2.4 Human Resource Objectives

According to Torrington Hall and Taylor, 2002, Human resource management is a series of objectives which first: enables working people and the organization which uses their skillsto agree about the objectives and their nature of the working relationship and, secondly,ensures that the agreement is fulfilled.

In training and development, the human resource department performs as in housetrainers, particularly in management development. Increasingly the term ‘consultant’ is



used instead of officer or manager to describe the training specialist’s role, indicating ashift towards a situation wherein the line managers determine the training that they wantrather then the training section providing a standardized portfolio of courses.

2.5 DOWNSIZING and Rightsizing

Once upon a time the rule was very simple; you hire in the good times and you let go inthe bad ones, but no longer hold true. Organisations are laying off thousands of employees from their overall staff. This trend of downsizing is due to the attempt beingmade by organisations to become more flexible, creating flatter hierarchy and redesigningwork structure to increase work efficiency, thus requiring fewer employees. Downsizing asbecome a strategy being implemented by organisations to balance staff to meet thechanging needs. But on the other hand is the fact that organisations are increasing staff inorder to add value to the organisation. Known as ‘rightsizing’, this term bridges staffing toorganisational aims and promotes the use of outside firms to provide the necessary inorder to become more flexible and responsive to the continually changing environment.3. HUMAN RESOURCE PROCESS

Various functions performed by the human resource management are the following:Staffing❖

Training and Development❖

Motivation❖

Maintenance❖

3.1 STAFFING

According Kuemmler .K et. al, 1996, Finding an employee who can devote himself for thesuccess of the company along with his growth is highly crucial in staffing of anorganization. To find a front-line worker who will not only stay with the company, but willprovide the services in such a way as to represent the quality and character of thecompany is very important for the success of the company.

The cost that goes into hiring and training employees: For each mis-hire, costs of up to

30-50 per cent of the employee’s annual salary are accumulated in lost productivity andexpenses associated with finding a replacement.

As for finding a replacement, costs can accumulate in many ways in just filling the lowest-wage positions. First, there are the expenses involved in advertising. Then, as theinterviewing process begins (again), staff time is taken away from business and used ininterviewing applicants. Secretarial help is needed also in completing benefit forms.Finally, once the new applicant is hired, training is often necessary for even the mostrudimentary job. On the other hand, other problems may transpire if the wrong person ishired and does not leave. In such a case the cost may be even higher. He/she may makecostly mistakes, damage the morale of other employees, and may even ruin customer relations.

According to Kuemmler .K et. al, 1996, The answer to this staffing question is thatcompanies require finding a better way in choosing their employees by improving their recruiting process. Business owners are starting to understand the importance of thoroughly screening potential employees and of matching those employees to thespecific job requirements. In particular, much more attention is being paid to thepersonality and psychological content of potential employees. This exploration deep intothe make-up of potential employees demonstrates the emphasis companies are placing onthe emotional content of those who occupy the front-line jobs. Companies such as Disney,Goodyear, and Service Master, for example, use this “life themes” approach to evaluateprospective employees which, simply put, involves identifying their passions and then



fitting them to the appropriate position.

A recent article suggests that due to staffing issues, some of the restaurants in parts of Europe and America have actually found strategic solutions because of the same. Casual-dining companies, over the past five years of increasingly intense competition for talentedworkers, have instituted new programs to find them, expanded benefits to keep them andprovided enriched training to motivate them, human resources executives in the segmentsay. According to Ruggless. R 2000, the market is divided into three segments and thepeople are recruited based on the type of people who come to restaurants, old peopleserve the old, the young serve the young and the medium aged serve the medium agedcreating a knowledge based understanding. Hence increasing the available labor market,which was empty than before.

Once an organization identifies its human resource needs through employment planning,it can begin the process of recruiting potential candidates for actual or anticipatedorganizational vacancies.

3.1.1 Recruiting

Trying to locate those employees who provide the “right fit” is one task managers must

face in recruiting. Recruiting brings together those with jobs to fill and those seeking jobs.

A good place to look for a recruit is within the organization. This is because; the peoplewithin organizations recruit themselves much more easily, as opposed to those acquiredthrough an outside agency. Some reasons why recruiting is done more so often internally:It builds good public relations, morale building, encouragement of ambitious employeesand members of protected groups, availability of information on existing employeeperformance, internal candidates’ knowledge of the organization, it saves cost, preparesto build mid- and top-level managers who can further work the company withoutadditional training costs. Cast members at Disney, for example, stay on as numerousopportunities for advancement exist. In fact, two thirds of Disney’s salaried employees,such as marketers, designers, and managers, are acquired from within the company.

Another possibility, should no one in the company fit the opening properly, is throughreferrals provided by other employees. Hiring through the referral process not only savessome of the administrative costs, but those employees are also more likely to stay with thecompany longer than those obtained through job agencies or advertisements.

The advantages in this case include boosting employee’s motivation to make a goodrecommendation, the availability of accurate job information for the recruit and more soemployee referrals tend to be more acceptable applicants, to be more likely to accept anoffer and to have a higher survival rate.

Constraints on recruiting efforts include the organization’s image; job attractiveness maybring about many sects of people, government influence in procedural working such asdiscrimination laws and the like and largely the recruiting costs incurred.

In any case, whatever means is taken to get in contact with potential employees, inchoosing among candidates preference should be given to those who have approachedthe organization themselves. Given that they made the first move, there is a greater chance they will stay.

The management responsibility in recognizing the employee’s needs is a key region wherethe company can reduce turnover. Practices like feedback between employees andmanagement, empowerment of employees in solving problems, two way communicationsystems, team building, flatter organization structure, employee satisfaction surveys,



effort to improve the work environment, salary benefits, and frequent recreational facilitieswhen implemented would strive to reduce the employee turnover rate.

The attitude of In-patriates versus Expatriates

Expatriates are brought from primary organizations to control the working of an overseasoperation which deals with the parent job. Since, this employee comes from a differentculture trying to impart more of his characteristic to the destination where he is employedit gives him an edge over an in-patriates who might apply for the same position. However its consequences also need to be matched. Operating across cultures effectively will be acritical success factor for managers in the global marketplace which could prove to be afailure. With respect to an expatriation strategy, these individuals are typically used for asingle assignment and ‘have earned their stripes’. Therefore, each time there is anoverseas assignment there is a great deal of uncertainty regarding the turnover behaviour the monitoring success of the expatriate. Motivation needs can be applied to friction inthis area to sort out operational issues.

Some of the recruiting agencies that are prevalent in India are Vira International, JCGAssociates, Phoenix HRD, Allied Boston Consultants India Pvt Ltd and Mafoi India.

3.1.2 Perfecting the interview process

The interviewing process itself is a task managers must perfect in order to hire the correctperson. This first involves being aware of the common failures of untrained interviewers,which are: not fully analyzing the requirements of the position; failing to ask the rightquestions to determine whether or not they are suitable for the position (which includes adiscussion of their strengths and weaknesses); and relying too much on a “gut” feelingrather than an objective evaluation. With this in mind, the interviewer can now prepare for and hold interviews. Before the date and time of the interview the manager should make alist of the duties of the position. This does not mean an in-depth job description, but rather a concise and concrete narrative of what the position entails. Next, as the interview itself gets under way, the manager should avoid cantering the discussion on the applicant’srésumé. Instead, the interview should be structured around the job to be filled. Finally, the

manager must be ready to listen. The skilled interviewer learns to listen at least 80 per cent of the time and talk only the remaining 20 per cent. Obviously, each organization, withdifferent people, different cultures, and different needs, will have, in addition to the basics

just mentioned, a particular set of criteria for judging applicants and/or a unique way of going about the whole interviewing process.

3.1.3 Evaluating candidates

In evaluating the applicants, companies want to know what each of their levels of motivation is. In particular they look for accomplishments. This is often a difficult task asthe interviewer must be able to determine to what extent the task was truly accomplishedby the individual and what part of the story might be a mere exaggeration. As companieswant more than just job participation from their workers, they must be able to ask

questions strategically which, when answered, will pinpoint exactly what the applicant’sinvolvement was in the accomplishment. A way of aiding in this is to check the referencesnamed on applicants’ résumés. While this “networking” can be helpful, it must, however,be taken for what it is and not taken necessarily too seriously. With a list of candidatesnow in hand, companies can go even one step further in determining their suitability withthe company by submitting the applicants to some sort of testing. IQ tests, for example,may well predict a worker’s future performance. Lie detector tests can be used to verifywhether applicants have ever stolen. The expense involved must also prove worth thetrouble.



3.2 TRAINING AND DEVELOPMENT

Training is an activity which helps in learning a lot of experience and in that it seeks arelatively permanent change in an individual that will improve an individual’s performanceof a particular job which he or she is performing. Training involves a lot changes to bebought in an individual, any individual who will be recruited in our company must haveworked earlier in a different company and must have adopted the previous company’sskills, so they need to be changed according to our own company, it also includes anoverall change in terms of his knowledge according to the new work which will beperformed by him or her, and also a vast change in terms of his or her attitude or behaviour. They will also be trained regarding how to deal with different customers andalso the co – workers and supervisors.

According to De Cenzo. D A, 2005, On the other hand, development is more future orientedby design, and also is more concerned with education than employee training. The wordeducation, should not be misinterpreted in terms of an individuals qualifications, in fact itis more about the activities which will be installed for an employee development which willattempt to in still sound reasoning processes to enhance one’s ability to understand andinterpret knowledge rather than imparting a body of facts or teaching a specific set of motor skills. Development, therefore, focuses more on the employee’s personal growth.

Successful employees prepared for positions of greater responsibility, have analytical,human, conceptual and specialized skills. The employees have better thinking andunderstanding. More over training is something, which cannot overcome an individual’sinability to understand cause and effect relations, to synthesis from experience, tovisualize relationships, or to think logically. As a result, it can be suggested that anemployee development be predominantly a more of an education purpose rather than atraining process.

There is a great need of training and development, as it is a vital and necessary activity inall the organizations. It plays a major role in determining the effectiveness and efficiencyof the establishment. If training and development is practiced in an organization it reducesthe learning time for an individual. The learning time can be reduced by having qualifiedinstructors; they can carefully control the learning situations. Training and development

also helps in improving the overall performance of an establishment. It is something whichis not only applicable for the new employees but also helps the experienced people aswell, as it helps in increasing their level of performance and thus, finally an improvedperformance of an establishment. Main motive of a training and development activity is tobring all the employees towards the common goals of an enterprise, which also helps inmoulding employees attitudes to achieve support for company activities and then toobtain better corporation and also greater loyalty.3.2.1 Various training methods

The most popular training methods used by various organizations are:On the job Training➢

Off the job training➢

On the job training includes, job rotation, apprenticeship, committee assignments, etc.

Off the job includes vestibule training, role playing, lecture methods, conferences,programmed instructions etc.

All the training programs whether they are on the job or off the job Training they all arevery helpful in making an individual work more effectively and efficiently, and thus makingan organization more profitable.

It also aid in solving various operational problems. If the activity of training and



development is performed for both the supervisory and hourly aid employees can helps toreduce turnover, absenteeism, accidents and also grievance rates. Training anddevelopment department is the only department which takes an initiative in solving lowmorale, poor customer service, excessive waste and scrap loss, and also poor workmethods as, solving all these issues are one of the major responsibilities for them toperform better and better.

Last but not the least, training and development is something which will help in gainingbenefits for the employees themselves, because of this department the employees tend toacquire new knowledge and job skills as well. As they can perform better with more andmore of useful skills, so, the values of an individual employer increases and therebyincrease in their job security as well. Further, qualifying an individual employee for apromotion is giving him more responsible jobs. (CBSE, NCERT)

There is a lot of difference between training and development but still the two words areused together. Training is something which is referred to as teaching skills and behaviour.It is usually reserved for people who have to be brought up to performing level in somespecial skills. The skills are almost always behavioural as distinct from conceptual or intellectual. Development, in contrast, is considered to be more general than training andmore oriented to individual needs in addition to organizational needs. Thus, it is more

often aimed towards management people. Basically, the intent of development is toprovide knowledge and understanding that will enable people to carry out non – technicalorganizational functions more effectively, such as problem – solving, decision making andrelation to people.

Author, had an experience of working in one of the Hotels, in New Delhi where she noticedthat the utility workers being not very educated and don’t know much about how to handlethings in an effective manner, so they were given a training for fire Fighting so that theycan handle the situation when ever necessary, and after that they were also taken to thefire exit area, and were given a practice for the same, the whole process of training wasorganized by the human resource department, training is nothing just a learningexperience which is designed to achieve a relatively permanent change in an individualthat will improve the ability of an individual to work. There is a lot of need of training in

today’s world because the time is changing so fast the customers expect that where ever they go they should have the best experience.

3.2.2 DETERMIMNING TRAINING NEEDS

|Is there a need of Training |

| ||What deficiencies, if any do incumbents have ||in the skills, knowledge, or abilities, ||required exhibiting the necessary job ||behaviour? || |

| ||What are the Organization’s Goals? |

| || ||What tasks must be completed to achieve its ||goals? |

| ||What behaviours are necessary for each job |



|incumbent to complete his or her arranged ||tasks? |

Thus, training is meant for operatives, and development is meant for the managers.

3.2.3 Orientation

An orientation is basically, all about introducing every selected employee to his fellowemployees. With the process of orientation is becomes easy for the newly recruitedemployee to understand the various rules and regulations of a particular organization. Anemployee is assisted in making personal adjustments as essential for his effectiveperformance as a member of the work team. This also involves becoming acquainted withassociates and the duties of the job, as well as being oriented to company’s policies andgoals.

3.3 MOTIVATION

Motivation refers to the entire class of drive, desires, needs, wishes and similar forces.Motivation is to inspire people to work, individually or in groups such as to produce thebest of results. It is the will to act by exerting high level of efforts towards achieving

organizational goals, conditioned by smart and efficient working and the ability to satisfysome individual needs. It comprises the abilities to communicate, to set an example, tochallenge, to encourage, obtaining feedback, to involve, to delegate, to develop and train,to inform, to brief and to provide a just reward. There are various theories supportingmotivation. The author would like to explain two of the theories in detail and motivation isone of the most important part of the

3.3.1 MASLOW’S HIERACHY OF NEED THEORY

One of the most mentioned theories of motivation is the hierarchy of needs theory putforth by psychologist Abhram Maslow. Maslow saw human needs in the form of hierarchy,ascending from the lowest to the highest, and he can concluded that when one set of needis satisfied, this kind of need says to be a motivator. The hierarchic theory is often

represented as a pyramid, with the larger, lower levels representing the lower needs, andthe upper point representing the need for self actualization. Each level of pyramid isdependant on the previous level. For example a person does not feel the second need untilthe demands of the first have been satisfied.

•• Physiological needs – these are the basic needs for sustaining human life itself, such

as food, water, warmth, shelter and sleep. Maslow took the position that until these needsare satisfied to the degree necessary to maintain life, other needs will not motivate people.

• Security and Safety needs – These are needs to be free of physical danger and of fear of loosing the job, property, food and shelter.

• Affiliation, or acceptance needs – Since people are social beings, the need to belong,to be accepted by others.

• Esteem needs – According to Maslow, once people begin to satisfy the needs tobelong, they tend to want to be held in esteem both by themselves and by others. Thiskind of need produces such satisfactions as par, prestige, status and self confidence.

• Need for self-actualization – Maslow regards this as a highest need in his hierarchy. Itis the desire to become what one is capable of becoming to maximize ones potential andto accomplish something.

3.3.2 HERZBERGS THEORY OF MOTIVATION

Frederick Herzberg developed a second historically significant theory of motivation



referred as two factor theory; it was first introduced in the late 1950’s and gainedpopularity only later. Herzberg referred two groups of factors that affect motivation:[pic]

1. Hygiene Factors – Those factors must be addressed to avoid dissatisfaction.2. Motivating Factors – Those factors which motivate an individual.

The initial framework for the two factor theory was derived from interviews with twohundred accountants and engineers in the Pittsburgh area. Using what is known as thecritical incident method the accountants and the engineers were asked to provideinterviewers with examples of times when they felt exceptionally good or bad about their

jobs. The examples were analyzed and showed that the factors producing job satisfactionwas entirely separate from those producing job dissatisfaction. Thai is, although anunpleasant work environment might be a reason given from job dissatisfaction, a pleasantwork environment might not be sighted as a reason for job satisfaction. This suggestedthat job satisfaction and job dissatisfaction are not simple opposites. Hence, it wasconcluded that a two factor theory was needed to explain employee motivation.Traditionally managers had viewed job satisfaction and job dissatisfaction as oppositeends of the same continuum. In contrast, Herzberg’s findings suggested that the oppositeof satisfaction is not dissatisfaction, but simply no satisfaction.

These two theories along with various other theories have proven how employees getmotivated.

3.3.3 APPRAISALS

Appraisals meaning getting a feedback for the work you have done in the organization.They say money is not the only way to motivate your employees. Along with money thereare several other factors which lead to motivation for the employees. For every employeeit’s different for example for someone it might be saying a word of praise to an individualwhereas for others it might be giving a bonus or promotion. Appraisal is one of the waysto motivate employees.

There is an appraisal process that is followed in the organization. It is a step by step

process that is followed. First and foremost the standards of the organization are setalong with the employees. Once the standards are set then along with employees themutual goals are set. After this is done the performance of the employee is measured indifferent terms. Then comes the comparison of the set standards with the measuredperformance. Then the appraisal is marked and discussed out with the employee. And thelast step if necessary some corrective actions are taken.

There are different kinds of appraisal methods as well:-• Evaluating Absolute Standards.• Critical Incident Appraisal.• Checklist Appraisal Behaviourally Anchored Rating Scales (BARS) ad may more.• 360-degree Appraisals – These are one of the most important appraisal methods used

in the organizations to motivate employees. In this Performance evaluation is done I which

peers, supervisors, employees, customers and the like evaluate the individual.

3.3.4 REWARDS AND BENEFITS

What’s in for me? That’s the question every employee asks when he joins a neworganization. Our knowledge of motivation tells us as to what the employees need tosatisfy themselves. The most obvious reward that employees receive from their work ispay. However it might be other things such as promotions, smile, and acceptance and soon. Amongst the several ways to classify rewards the most basic classification is intrinsicand extrinsic rewards. Intrinsic rewards are satisfaction derived from the job itself, such



as pride in one’s work, a feeling of accomplishment, or being a part of the team adextrinsic rewards must be benefits provide by the employer, usually money, promotion or benefits. The author in short through a diagram would like to explain various rewards.There are financial rewards like commissions, compensations, incentives, cost of livingetc, there are no financial rewards like lunch hours, business cards, own secretary,impressive titles, Performance based rewards like commission, bonus and Membershiprewards like protection programs, pay for time not worked a so on.

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3.3.5 COMPENSATIONEmployees exchange work for rewards. Probably the most important and the mostobvious one is money. Compensation is another term that relates to motivation of employees. The goal of compensation administration is to design a cost effective paystructure that will attract, motivate ad retain competent employees an also the structureshould be fair enough for all the employees. The government also plays a big role in thecompensation administration. It has laid forward various acts which help in the designingof the compensation program. There are two acts which are designed for this one beingthe Fair Labor Standards Act (FLSA) and the other being The Civil Rights and Equal PayAct.

3.3.6 PAY STRUCTUREThe pay structure of the organization depends upon the job evaluation that is done.Accordingly the wage structure and the wage curve is derived. A wage structure means apay scale showing ranges of pay within each grade. Whatever the structure of the pay is itis very important that the employees are informed about it and communicated about howthe structure is designed. It develops a sense of tryst among employees ad ultimatelyleads to motivation.

3.3.7 INCENTIVESNot all the employees are ready to leave their family and friends for a long time. Thusmobility inducements to go o foreign assignments are regularly offered. These mayinclude monetary payments or services such as housing, car, chauffer ad other incentives.

But companies nee to pay attention to what their incentives will be. This is another way of motivating employees.

3.3.8 EMPLOYEE BENEFITSWhen an organization designs its compensations program one of the most critical area tothink about is what benefits to provide? Today’s workers expect more than just a hourlywage or a salary, they want additional considerations in an employment setting are calledas employee benefits. As the time passes by there is a considerable increase in thedemand of employee benefits. Today’s organization must satisfy the diverse benefit needsof their employees. Consequently they adjust benefit programs to reflect a different focusto achieve the goal of “something of value” for each worker. Employee benefits areclassified as:

1. Legally Required Benefits –These benefits have to be provided to the employees asthey are a part of the governmental law. These benefits are like Social Security whichmeans retirement, disability ad survivor benefits paid by the government. Unemploymentcompensation - employee insurance which provides some income continuation in theevent when employee is laid off. Workers compensation act- Employee insurance thatprovides income continuation if a worker is injured on the job ad the last is the family andmedical leave act.

2. Voluntary Benefits – These are limited by the management’s creativity and budget.Health insurance, Health Maintenance Organization, Preferred Provider Organizations andEmployer Operated coverage is included in this.



After all thee benefits there are certain retirement benefits also which the employeereceives after he retires from the organization.

3.4 MAINTENANCEThe last phase of the HRM process is called the maintenance function. As the nameimplies, the objective of this phase is to put into place activities that will help retainproductive employees. When one considers how job loyalty of employees has declined inthe last decade -- brought about in part by management responses to leveraged buyouts,mergers, acquisitions, downsizing, changing family requirements and increasedcompetition -- it is not difficult to see the importance of maintaining employeecommitment. To do so requires some basic common sense and some creativity.

HRM must work to ensure that the working environment is safe and healthy; caring for employees' well-being has a major effect on their commitment. HRM must also realize thatany problem an employee faces in his or her personal life will ultimately be brought intothe workplace. Employee assistance programs, such as programs that help individualsdeal with stressful life situations, are needed. Such programs provide many benefits to theorganization while simultaneously helping the affected employee.

In addition to protecting an employee's welfare, it is necessary to HRM to operateappropriate Communication Programs in the organization. Included in such programs isthe ability for employees to know what is occurring around them and to vent frustrations.Employee relations programs should be designed to ensure that employees are kept wellinformed and to foster an environment where employees' voices are heard, if time andeffort are expended in this phase.

HRM may be available to achieve its ultimate goal of having competent employees, whohave adapted to the organization's culture, with up-to-date skills, knowledge, and abilities,who exert high energy levels, and who are now willing to maintain their commitment andloyalty to the company. This process is difficult to implement and maintain but therewards should be such that the effort placed in such endeavors is warranted.

Below given are few points to be done to maintain the employees in the organizations.• Schemes for occupational sick pay, extended sick leave and access to the firm's

medical adviser;• Schemes for bereavement or other special leave;• The rehabilitation of injured/unfit/ disabled employees and temporary or permanent

move to lighter work;• The maintenance of disablement statistics and registers (there are complicated legal

requirements in respect of quotas of disabled workers and a need for 'certificates' wherequota are not fulfilled and recruitment must take place);

• Provision of financial and other support for sports, social, hobbies, activities of manykinds which are work related;

• Provision of canteens and other catering facilities;• Possibly assistance with financial and other aid to employees in difficulty (supervision,

maybe, of an employee managed benevolent fund or scheme);• Provision of information handbooks,• Running of pre-retirement courses and similar fringe activities;• Care for the welfare aspects of health and safety legislation and provision of first-aid

training.

The location of the health and safety function within the organization varies. Commonly asplit of responsibilities exists under which 'production' or 'engineering' management caresfor the provision of safe systems of work and safe places and machines etc., but HRM isresponsible for administration, training and education in awareness and understanding of



the law, and for the alerting of all levels to new requirements.4. Global Human Resource PracticesThis part of paper will highlight on how practices in the hospitality sector enableorganizations to remain competitive in today’s ever evolving market."Human resourcemanagement aims to improve the productive contribution of individuals whilesimultaneously attempting to attain other societal and individual employee objectives."Schwind, Das & Wagar (2005). Enlisted below are some of the Global Human Resourcepractices today:

• Managing Workplace Diversity• Training and Development• Performance and Productivity• Employee Satisfaction Tracking System• Reward Programs• Strategic Development of Human Capital Resources• Reducing Employee Turnover • Vocationally Educated Staff

The researcher has identified the above as the most widely used Human Resourcepractices, based on these critical points the researcher shall explain the global humanresource practices to stay on top in today’s competitive world.

4.1 Managing Workplace Diversity

In today’s modern and competitive world workplace diversity includes a lot of areas butare not only restricted to the ones mentioned below “age, ethnicity, ancestry, gender,physical abilities/qualities, race, sexual orientation, educational background, geographiclocation, income, marital status, military experience, religious beliefs, parental status, andwork experience.” According to the researcher handling workplace diversity is one of themost crucial and difficult practice that the Human resource department performs on adaily basis.4.2 Training and DevelopmentAs hospitality organizations plan for the training and development of their employees inthe future, they will clearly need to work more on their planning process as the currentview is fairly negative. As to training methods "on the job" appears to be the most

preferred theme, although this approach should diminish somewhat in the future. Some of the more popular development programs include multi-skilling, cross-training and career succession and there are clear plans to significantly expand their use in the future. Therealso appears to be widespread use of employee participation programs.

4.3 Performance and ProductivityAs human capital becomes more expensive to recruit, train and develop, increasingattention is being devoted to those factors that affect productivity. Empowerment,education, training, recognition programs and technology will all play different roles inthis area in the future. The area with greatest prospective impact on productivity appearsnot surprisingly, to be training.

4.4 Employee Satisfaction Tracking System

Employee recognition programs, the opportunity for career advancement and exposure totraining followed in order of impact. Improving performance is desirable but it also needsto be measured. And while most organizations tend to rely heavily on an employee'simmediate supervisor for performance review, the increasing popularity of alternativesystems such as self, peer and subordinate review to provide "360 degree feedback" arewell worth noting as are those involving customers. The leading yardstick appears to beemployee turnover. Employee surveys are destined for much greater usage in the future,along with upward evaluations.4.5 Reward ProgramsReward programs generally refer to incentive plans that involve employees in a common



effort to improve organizational performance, and are based on the concept that theresulting incremental economic gains are shared among employees and the company. Inmost cases, workers voluntarily participate in management to accept responsibility for major reforms. This type of pay is based on factors directly under a worker’s control .Gains are measured and distributions are made frequently through a predeterminedformula. Because this pay is only implemented when gains are achieved, gain-sharingplans do not adversely affect company costs.

4.6 Strategic Development of Human Capital ResourcesIt was globally identified that human resources(HUMAN RESOURCE) is an importantfeature of long term planning, it is also seen that many companies believe that humanresource practices, polices and procedures were aligned with their overall businessstrategy.

As to the impact of technology, opinion was evenly split as to whether it will reduce thenumber of general staff required in the future, although there were some importantdifferences regionally. Globally it was discovered that advent of technology willnecessitate a change in the skills people require. Adding to which it was also stated thattechnology could improve job motivation and job satisfaction.

Clearly the human resource function of the future will have a more bottom-line businessorientation than it has had in the past. For this transition to be effective, however, agreater alignment of human capital management with the core business strategy will berequired, coupled with more sophisticated measurements of performance. While thehuman resource function gets redefined within the organization, its component parts areon offer without. Increasingly popular as a tool for more effective business management,outsourcing appears destined to make in-roads into the Human Resource function, part of a larger trend toward increased use of specialized vendors and other partners. In thefuture, we can expect to see more Human Resource functions outsourced.4.7 Reducing Employee Turnover Sound recruitment planning is critical to the establishment of adequate human resourceswithin the industry, but it is seen that very few have any such processes in place. In theabsence of a solid recruitment plan, hiring can only be reactive - a less than desirable

practice given the industry's problem with high turnover and the ever-increasingcompetition for qualified labor from better-paying industries. Recruiting people to one’sorganization is unfortunately only one of today's human capital challenges. Employeeretention appears to be just as big a headache and it may get worse before it gets better.

To counter this, all organizations plan an array of strategies, including the increased useof incentive pay, more job enrichment programs, improved working conditions, improvedscreening tools and increases in benefits. Once recruited, the number of variousstrategies used to reduce employees turnover some effective, others less so. Improvingthe work environment, sharing information and increasing employee involvement indecision making are some of the leading choices.

4.8 Vocationally Educated Staff

The relevance of a vocational background with addition to required surrogate skills for theemployee to be hired must be a must. Also the organizations should encourage younger people to go in for professional courses relevant to their organization, by setting upinstitutions for them or by providing affiliated certificate course. This is a progressive toolfor conditioned hiring and also to know your employee beforehand. It is what they call anacid-test method for the safety and progress of an organization.4.9 LEGAL CONSTRAINS AFFECING HRM

WALKMAN COMPENSATION ACT - 1923According to this act, it says that in case of any accidents that happen organization has to



give him or her benefits in terms of money. Depending on the amount of disablement theamount of money is given to the accident affected employee.

FACTORIES ACT - 1948This act is now applicable even to Hotel industry. It has many sections which is hard todiscuss. It talks about the different provisions available eg. Time span of people to work,spread over of work for women should be equal to men i.e 14 hours of shift. It also talksabout decided shift timings for employees, overtime pay, rectory safety, rules to befollowed. It also has section stating within how much time the factory should be painted,description of ventilation system, for how much staff hoe much water cooler to be keptatc. This act is basically made to see that employee working at his work area gets theessential treatments which are their rights.

EMPLOYEE PROVIDENT FUND AND MISCELLANEOUS PROVISION ACT- 1952Applicable to every establishment which is a factory engaged in any industry specified inSchedule I and in which twenty or more persons are employed. Clauses of this act areinferred as follows, the employer deducts 12% from basic salary amount of money fromwages of the employee. Employer also puts in 13.6% of basic salary amount of money andboth the amount are summed up and submitted to Provident Fund Commissioner before15 days of disbursement of salary. When the employee leaves the organization he gets all

the money with 8.5%interest.

ESIC ACTThis is applicable to employees earning salary less than 13000 rupees. Where theemployee doesn’t get company benefits but will get generous benefits from ESIC. Thereare many benefits such as employee availing ESIC cannot be fired, 3 months maternityleave for ladies with salaries, medical benefits, ritual benefits, death benefits, etc.Provisions: 1.5% deducted from employees basic salary + 3.75% employee’s basic salaryput by employer that is to be submitted to Provident Fund Commissioner before 21 daysof disbursement of salary.

PAYMENT OF GRATUITY ACT – 1965This act says that an employee who works for 5 or more than 5 consecutive years is

eligible for gratuity. Where employee gets basic salary + 15 days salary as gratuity everyyear after 5 years.

MODEL STANDNG ORDER ACT – 1946In an organization there are various types of employees like casuals, permanent; contractlabour etc. law has decided certain activities by employees in organization asmisconducts. As act designer cannot know everything, a particular organization canmodify to some limits and presume them as misconducts. To bring it in action allemployees must sign on it and both the parties should agree on it.

INDUSTRIL DISPUTE ACTThis act is about maintaining harmonic relations between employee and employer. Wherethe employer cannot close hi/her organization without informing the labour department.

There are various segments to this act. The employer has to get permission from labour commissioner, and provide notice to employees 2 months prior in case of more than 100employees.CONTRACT LABOUR REGULATION AND ABOLITION ACT – 1971If the task is not of perivial in nature and if it is not fundamental task of organization, thenemployer can deploy contract labour. Today the condition is different, even mainemployees are contracted, but Fixed Term Contract (FTC) where the employer can gt rid of this provision.

APPRENTICE ACT - 1962



It is an act where objective is to create a space for new students who are studying.Companies require basic trate skills which the institute does not provide, so this ispracticed to gain practical knowledge. On successful completion of this certificate to theemployee is provided. The candidate gets very nominal salary where no labour laws,ESIC, provident fund, are applicable. Only they are registered under apprentice act andonly this is applicable.

MINMUM WAGES ACTEach state government declares D.A salary twice a year. Each employee deserves thebasic salary that has been decided by law according to their grade of skill, unskilled, level

SHOP ESTABLISHMENT ACTThis is also a state act that governs all hotels, restaurants, shops that are governed onsimilar lines of factories act. Eg. Beginning and ending of shifts, hours for each shifts etc.

EQUAL REMUNERATION ACTThis act states that the female employees working should get the same salary as menworking at same level in the organization. There should be no discrimination on basis of caste, colour, religion, sex etc5. BALANCE SCORECARD

A new approach to strategic management was developed in the early 1990's by Drs.Robert Kaplan (Harvard Business School) and David Norton. They named this system the'balanced scorecard'. Recognizing some of the weaknesses and vagueness of previousmanagement approaches, the balanced scorecard approach provides a clear prescriptionas to what companies should measure in order to 'balance' the financial perspective.

The balanced scorecard is a management system (not only a measurement system) thatenables organizations to clarify their vision and strategy and translate them into action. Itprovides feedback around both the internal business processes and external outcomes inorder to continuously improve strategic performance and results. When fully deployed, thebalanced scorecard transforms strategic planning from an academic exercise into thenerve center of an enterprise.

Kaplan and Norton describe the innovation of the balanced scorecard as follows:

"The balanced scorecard retains traditional financial measures. But financial measures tellthe story of past events, an adequate story for industrial age companies for whichinvestments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluatingthe journey that information age companies must make to create future value throughinvestment in customers, suppliers, employees, processes, technology, and innovation."

The balanced scorecard suggests that we view the organization from four perspectives,and to develop metrics, collect data and analyze it relative to each of these perspectives:A. The Learning and Growth Perspective:

This perspective includes employee training and corporate cultural attitudes related toboth individual and corporate self-improvement. In a knowledge-worker organization,people – the only repository of knowledge -- are the main resource. In the current climateof rapid technological change, it is becoming necessary for knowledge workers to be in acontinuous learning mode.

Kaplan and Norton emphasize that 'learning' is more than 'training'; it also includes thingslike mentors and tutors within the organization, as well as that ease of communicationamong workers that allows them to readily get help on a problem when it is needed. It alsoincludes technological tools; what the Baldrige criteria call "high performance work



systems."

B. The Business Process Perspective.This perspective refers to internal business processes. Metrics based on this perspectiveallow the managers to know how well their business is running, and whether its productsand services conform to customer requirements (the mission). These metrics have to becarefully designed by those who know these processes most intimately; with our uniquemissions these are not something that can be developed by outside consultants.

In addition to the strategic management process, two kinds of business processes may beidentified:a) Mission-oriented processes, andb) Support processes.

Mission-oriented processes are the special functions of government offices, and manyunique problems are encountered in these processes. The support processes are morerepetitive in nature, and hence easier to measure and benchmark using generic metrics.

c. The Customer Perspective.Recent management philosophy has shown an increasing realization of the importance of

customer focus and customer satisfaction in any business. These are leading indicators: if customers are not satisfied, they will eventually find other suppliers that will meet their needs. Poor performance from this perspective is thus a leading indicator of futuredecline, even though the current financial picture may look good.

In developing metrics for satisfaction, customers should be analyzed in terms of kinds of customers and the kinds of processes for which we are providing a product or service tothose customer groups.

d. The Financial Perspective:Kaplan and Norton do not disregard the traditional need for financial data. Timely andaccurate funding data will always be a priority, and managers will do whatever necessaryto provide it. In fact, often there is more than enough handling and processing of financial

data. With the implementation of a corporate database, it is hoped that more of theprocessing can be centralized and automated. But the point is that the current emphasison financials leads to the "unbalanced" situation with regard to other perspectives. Thereis perhaps a need to include additional financial related data, such as risk assessment andcost-benefit data, in this category.

So, the balanced scorecard suggests that we view the organization from four perspectives, and to develop metrics, collect data and analyze it relative to each of theseperspectives:

• The Learning and Growth Perspective• The Business Process Perspective• The Customer Perspective• The Financial Perspective

5.1 ADVANTAGEs OF BALANCE SCORECARD:

Implementing a balanced performance measurement system can have far-reaching effectson your organization. It can be used for:

• deciding what the key drivers of performance are• refocusing and stimulating activity on these key business drivers• drawing attention to goals and targets• creating a culture of achievement• noticing in advance any trends affecting the business so that changes can be made in



good time.

5.2 Shortcomings of the Balanced ScorecardAs the Balanced Scorecard (BSC) is not a multiple stakeholder framework:

• Suppliers are excluded: through suppliers may be considered within the ProcessPerspective, this approach does not give suppliers the visibility they now deserve,especially in new business models characterized by outsourcing of almost all non-corefunctions and vertical integration

• Regulators are ignored: many non-negotiable standards have to be met, but they donot fit into the Balanced Scorecard's framework.

• Community and environmental issues are missing: nowadays environmental issuesand local communities are closely linked and companies need to measure and monitor theimpact they are having. If they don't, they may find themselves subject to attack bypressure groups who can damage the companies' reputation and ultimately destroy thebusiness.

• Competitors are ignored: Besides shareholders and customers, companies need tomonitor the business environment to track the competitor activity and technology. BSC isdesigned to answer the efficiency question, 'Is the chosen strategy being implemented?'but fails to ask the effectiveness question, 'Is the chosen strategy the right strategy for our business?' It does not monitor threats from non-traditional or future competitors.

5.3 Balance Score Card: Hotel Perspective

Although Balance Score Card is followed to a large extent across the hotel industry, therehas been a limited literature data on Balance score cards with regard to strategicmeasures and implementation in general and focusing on the BSC approach in particular.Although hotels are generally thought of in a service context, in reality they summarizethree different types of industrial activities – Rooms, Food and Beverages – which exhibitdiffering cost structures and business orientations. The underlying diversity of activitiesand their differing cost structures, can be argued, call for a diverse set of relevantperformance measures, which a framework such as BSC can incorporate.Implementation of BSC is generally a useful tool, that it brings together previouslydisparate measures of performance in a coherent model, thus helping it to unify all theparties involved i.e. Stake holders, internal and external customers. The success of

implementing BSC will owe a great deal to the organization’s unique circumstances (e.g.histories, strategies, opportunities and constraints) but however it is it imperative that theBSC approach is modified to take into account individual circumstances.

5.4 Limitations on application of Balance Score Card

The application of Balance score card is both dated and limited in its scale as the area of focus is restricted to a particular property and not to the entire organization. There hasbeen an obvious benefit in using the technique but however the Balance Score card for anindividual hotel is likely to vary from a scorecard implemented for a group of hotels, andthe measures would need to be continually reviewed in order to retain their relevance, andthat components need to be prioritized. In such case hotels predominantly focus on theshort term with little strategic use of information. Short term financial orientation includes:

• Increasing corporate ownership of hotels leads investors to set demanding financialtargets whilst paying little attention to the processes driving the results.• A large number of senior, managers may be promoted from operational roles

consequently tend to focus on real time operational control rather than future orientedstrategic intent.6. Performance Management systems in Organizations - An Overview

The hotel organizations have been measuring and thereby managing their performance onthe basis of financial measures using the traditional accounting methods. Theperformance measurement system that solely focuses on financial metrics would not



facilitate the organizations in valuing their intangible and intellectual assets. Intellectualassets such as motivated and skilled employees, responsive internal business process,satisfied and loyal customers need to be valued in this competitive business environment,as they are critical components of any business that determines success.

It is the need of the hour for organizations to expand their financial accounting model sothat there is a provision for intellectual asset valuation.[pic]

Balanced Scorecard is a Performance management system (not only a measurementsystem) that enables organizations to clarify their vision and strategy and translates theminto action. The balanced scorecard (Kaplan and Norton, 1996a.) is a StrategicMeasurement systems that contains outcome measures and the performance drivers of outcomes, linked together in cause-and-effect relationships (Kaplan & Norton, 1996a,Kaplan & Norton, 1996b) thereby making the performance measurement system a feedforward control system. The crux of the BSC is the linking together of the measures of thefour areas in a causal chain, which passes through all four perspectives. The objectivesand measures are derived from an organization’s vision and strategy and these viewsOrganizational Performance from four perspectives: The Perspectives are Financial,Customer, Internal Business Process and Learning and Growth. Thus Kaplan and Norton

(1996b) emphasize that non-financial strategic objectives should not consist of anarbitrary collection of measures, instead, they should involve a balanced representation of financial and non-financial measures:[pic]

Customer perspectiveThis perspective captures the ability of the organization to provide quality goods andservices, the effectiveness of their delivery, and overall customer service and satisfaction.Many organizations today have a mission focused on the customer and how anorganization is performing from its customers’ perspective has become a priority for topmanagement (Kaplan and Norton, 1992).

Internal business processes perspective

The business processes perspective is primarily an analysis of the organization’s internalprocesses. Internal business processes are the mechanisms through which performanceexpectations are achieved. This perspective focuses on the internal business results thatlead to financial success and satisfied customers’ expectations. Therefore, managersneed to focus on those critical internal operations that enable them to satisfy customer needs (Kaplan and Norton, 1992)

Learning and growth perspectiveThis perspective looks at issues, which includes the ability of employees, the quality of information systems, and the effects of organizational alignment in supportingaccomplishment of organizational goals. Processes will only succeed if adequately skilledand motivated employees, supplied with accurately and timely information, are drivingthem.

Financial PerspectiveFinancial performance measures indicate whether the organization’s strategy,implementation, and execution are contributing to bottom-line improvement. By makingfundamental improvements in their operations, the financial numbers will take care of themselves, according to Kaplan and Norton (1992).

Link between Features of Innovation and BSC|Innovation (Features) |Futures In Details |BSC Features |Rationalefor BSC & Innovation |



|Relative Advantage |Degree to which an innovation |Incorporates financial andnon |Extension of the traditional || |is superior to ideas it |financial measures |accountingmodel || |supersedes | | ||Compatibility |Degree to which an |BSC is linked to the vision and|Topmanagement commitment, || |innovation is consistent with |strategy of the organization |culturevision of firms plays a|| |values and past experiences of | |key role in BSCusage. || |adopters | | ||Complexity |Degree to which an innovation |BSC revolves around the |BSC demands the employees to || |is relatively difficult to |strategy of the business. |share acommon understanding of|| |understand and use |Construction of Strategy maps |goals,objectives, measures, || | |requires great care |vision and strategy toavoid |

| | | |implementation failures. ||Divisibility |Degree to which an |BSC’s Corporate level, |Pilot BSC’sfor individual || |innovation can be tried on a |divisional, departmental & |businessunits are also done || |limited basis |personal level exists. | ||Communicability |Degree to which the results of |Communication of BSC |BSC firms try to make strategy || |innovation is diffused to all |results gives intrinsic |as everyone’severyday job. || |members |motivation to employees ||

Empirical evidences on the contingency factors that facilitates BSC adoption• Firm Size• Market Position• Product lifecycle stage• Type of strategy and structure• Environmental uncertainty• Investment in intangible assets

Indian Organizations and BSC:• Tata Engineering• Infosys• Goodlass Nerolac Paints• Godrej-GE

• Ericsson India7. Indian Hotels Scenario:

The table below will show the new room supply expected to enter 10 key hotel markets inIndia. This encompasses the development of branded as well as quality independenthotels in India.

According to study conducted by HVS, India today needs more than 53,000 hotel rooms,all corresponding to hotels with brand affiliation, are in various stages of planning anddevelopment in the above ten cities, and expected to enter in a phased manner by 2011.



As, there are two major sports events lined in coming years such as Commonwealth in2010 and ICC World Cup in 2011. Rather than these two major sports event India isbooming in at tremendous pace in IT industry, Aviation & Automobile industry. Despite allthe interest generated by mid-market and budget hotel development, around 53% of thedevelopment is still concentrated in the luxury and first class (Five-star Deluxe and Five-star) segment. This segment is also characterised by its higher service orientation, whichmakes it particularly vulnerable to the manpower crunch.

[pic][pic]The table shows the manpower requirement all over the India in regards of new roomsupply and its growth in coming years.

As indicated before, branded hotels in the ten selected hotels market cities will requireapproximately 94,000 employees in next few years that is twice the existing requirement.In the terms of larger number of new rooms being added in luxury and first class hotelsand these segments will naturally require huge number of manpower.

According to study conducted by HVS, A major portion of demand is from cities likeDelhi/NCR and Mumbai, which account for around 23% and 21%, respectively. However,

the real challenge will be presented by cities like Bangalore, Hyderabad and Pune. Thoughindividually they only require around 12%, 11% and 6.5% of the demand pie, thepercentage increase in manpower is the highest in these markets, ranging between 500-900%. These cities have a relatively low room base and hence would find it more difficultto cope up with the explosive growth. Presently, these three cities offer a comparativelylower cost of living and higher quality of life, to their residents. The cost to company of anemployee in these cities will start increasing once demand starts kicking in. It is expectedto be comparable to Delhi and Mumbai by 2008. Thereafter, the low manpower base andcomparable salary levels would force these cities to look at established hotel markets likeMumbai and Delhi to obtain managerial and supervisory levels of hotel staff.8. CONCLUSIONToday the coming together of different corporate psychologies in a competitive businessenvironment makes a hotel professional move from one hotel to another and on a larger

canvas makes him move out of the hotel industry to other sectors. The reasons can bemany…a different work challenge, the expectation of faster career growth, aspirations for better work-life balance, a hospitality career being a poor fit with one's personality, or acombination of some of these factors. Last but not the least, the temptation of better payis, more often than not, a prime driver. Research shows that money is like Prozac. Neither necessarily makes you happy, however assists in preventing different forms of unhappiness --in the case of the former, less financial anxiety, affording better housing,better and bigger car, good schooling for the children, metro locations and softer loans.To summarize, it’s a fine mix of employee aspirations, the mirage of other sectors and thefinesse of an executive search firm that leads to migration from hotels!

According to Ambika Mehta, 2005, A growing list of industries and sectors, that arewitnessing hectic activity, expansions and are passing through a boom. A brief sector

analysis is presented below.

Retail - Market liberalization and an increasingly assertive metropolitan consumer population is now sowing the seeds of a prolonged retail transformation in India. The retailboom witnessed in India over the last 18-24 months has started bringing in bigger Indianand multinational operators on to the Indian retail scene. International brands such asWal-Mart, Tesco and Carrefour are eyeing India as their next expansion destination.According to a recent study undertaken by the Associated Chambers of Commerce andIndustry of India (ASSOCHAM), organized retail is expected to register an annual growth of 6.0% over the next five years and touch total business of US$17bn against its current



business volume of US$6bn. According to India Retail Report 2005 conducted by KSATechno park, India’s distinct advantage is that it is amongst the least saturated of all major global markets in terms of penetration of modern retailing formats. Amusement park,convention centre, serviced apartments and hotel are some mixed-use concepts that arebeing combined with retail to present a complete product mix. The opening up of the retailsector in India throws major challenges to the hotels for a majority of retail functions areidentical and it enables the retail players to go higher in the hierarchy of poaching,targeting mid to top level executives across key functional areas.

Aviation – International and domestic travel in India is growing by leaps and bounds. It hasbeen estimated that the aviation sector in India is likely to witness a 20.0% YOY growthover the next five years in passenger traffic from the existing almost 60mn. The entry of several low cost airlines in the domestic market, the Open Sky Policy that provides anopportunity for domestic carriers to fly to international destinations and keen focus by thecentral government on airport infrastructure development is key growth drivers for thesector. In the aviation sector today, apart from trained pilots, engineers and operationalstaff, there is also a great need for trained staff that can manage key functions such asreservations, yield management, guest relations, sales and marketing. Attractive perksand role enhancement make hotel employees a soft target for poaching since they comewith specific expertise, are highly presentable, well spoken and are trained in customer

service and guest interactions.

Business Process Outsourcing (BPO) - According to NASSCOM, the projected revenue of the BPO industry in India is expected to touch US$12bn in 2006. The sector hired anaverage of 400 people on every working day of the year in 2004/05. With annual growthprojected at 11.0%, the sector is expected to employ over 1.2 million people by 2008.Various BPO’s in India have enhanced their service portfolio by handling knowledge-based activities like budgeting or resource planning, giving their customers access to acomplete menu of end-to-end processes in functional areas like HR, finance and customer care growth. With their economic success BPO’s are now moving up the value chain andmany such outfits are being transformed into Knowledge Process Outsourcing companiesor KPO’s. The global KPO sector is expected to grow at a CAGR of over 45% to reachUS$17 billion by 2010. India, with its highly qualified professionals well versed with the

English language, is emerging as the location of choice for a wide variety of KPO work.

BPO industry is on a spree to hire hotel industry graduates. The hospitality industry inIndia today employs a large number of young executives in different areas of hoteloperations. These employees are well trained in different aspects of guest service andinteraction, have excellent service orientation and command over English. There is alsodemand for good chefs, stewards and housekeepers to undertake facilities managementrelated functions. Flexible work schedules, an informal work environment and good payare some aspects that facilitate the movement of employees from hotels to the BPOindustry.

Real Estate – The commercial and residential real estate industry in India is moving closer to the people. No longer is a purview of larger-than-life egos and insatiable developers, the

real estate industry more focused on the wants and needs of the consumer. The industryis emphasizing more on branding, and on the marketing of buildings as products that canprovide ‘experiences’. The real estate industry has been successful in attracting quite a lotof hotel professionals since they are assumed to excel in selling ‘intangibles’ and providethat unique experience to its demanding customers. Stories of poaching are also rife inemerging sectors like media, finance and investment banking, and insurance.

This paper has shown how HRM, today is not only HR managers job it is job of everymanager in the organization with context to operation development project. This hasexpanded the knowledge of Functions of HRM and how external factors affect them.



Showing ahead the challenges, legislations and trends that would help the futuremanagers of tomorrow to have a better hand on their employees and lead the organizationin better way by increasing profits and satisfying employees.BIBLIOGRAPHY

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perspective.[pic][pic][pic][pic]

challenges issue- hotel

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