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The Indian Hospitality Industry is considered to be among the fastest growing segment of the

Indian economy. Due to rise in income level and the economic escalation that the country has

witnessed in recent years, this industry has evolved as one of the most important sectors driving

India¶s economy. This industry accounts for 2.2% of India¶s Gross Domestic Product (GDP)

with a market size of US$ 23 billion. Increase in the double-income households and growing

disposable incomes has played a vital role in this growth trend. The total market size of the

hospitality industry in India is likely as a summation of revenues of two sectors i.e. revenues

generated from travelers, who travel for reason¶s such as leisure, business, visiting relatives and

friends, pilgrimage, conferences and meetings, and the other sector consist of revenue generated

from consumers eating out at any outlet ± fine dining, restaurants, dhaba¶s, take-a-ways, Quick

Service Restaurants (QSRs) or any other type of unorganized eateries (Kumar et.al, 2009).

According to a study conducted by the Technopak and Economy Survey of India (2008), the

hotel industry in India is likely to have a market size of US $ 17 billion; nearly 70% of the above

contribution i.e. US$ 11.85 billion comes from the informal sector and the residual 30% i.e. US$

5.08 billion is collected from the formal sector. The major input of the organized sector is

collected from 5-star properties and hotels. In spite of a serious plunge in 2009, an upward

inclination is expected in the overall growth of the Indian hotel sector, it is estimated to grow up

to US$ 36 billion by 2018.A constant increase in the quantity of hotel rooms is recorded in recent

years, with an increase of 5% between 3-4 years. However, this speed of development is still not

sufficient to compliment the growing demand; auxiliary investment is essential to balance the

uneven relationship of supply and demand. Indian hotel industry is likely to see an anticipated

speculation of US$12.17 billion within the next two years (Kumar et.al, 2009).



Indian hotel industry is witnessing incredible boom in recent years and is undergoing an exciting

phase. Among many, one of the chief reasons for the amplified demand for more and more hotel

rooms is the boom in the overall country¶s economy and sectors like telecom, IT, real estate and

retail. Growing stock market and Innovative business openings have played an important role in

magnetizing hordes of overseas investors and foreign corporate travelers who are in search of

business opportunities in other countries (http://www.articlesnatch.com/Article/Information-of-

Hotel-Industry-Laws-In-India---Part1/396523).

Since hotel industry is inseparably linked to tourism industry, growth in the tourism sector has

ignited the growth of hotel industry in India. With vast funds flowing into the country for the

improvement of infrastructure such as highways, roads, convention centers and airports, curiosity

in hotel development is striking new highs as the tourism sector is on the rise. The flourishing

tourism sector has had a surging effect on the hotel sector with a rise in the average room rates

and occupancy ratio. And with this continuous rise in demand, lots of international hospitality

players are attracted and eager to invest in the Indian hotel industry. Rising income levels and

spending power combined with Governments open policies along with rise in spending power

and income level have provided a massive thrust. With this fast growing pace of industry, the

demand for hotel rooms is also increasing both in metropolitan and small cities. It is believed

that India is expected to have approximately 40 foreign hotel brands by the end of 2011. This

booming hotel industry has distorted into a authentic basket of luxurious rooms, palatable food

and drinks, business and health facilities, tour packages and all other things that one can think

about. New international entrants are competing with present local players with a view to

provide top-class services at a price suitable to every pocket. The upcoming commonwealth

games held in India in 2010 will lead to rise in demand for class accommodation (http://www.arti



clesnatch.com/Article/Information-Of-Hotel-Industry-Laws-In-India---Part1/396523).

However along with the growth and investment opportunity there are several challenges that the

Indian hotel industry faces. These problems if not dealt at the correct time may prove fatal for the

hotel and also its brand image. Some problems are general and some are specific in nature. One

of the most general but serious problem is the problem of food wastage. Terrorism is one such

hurdle the Indian hotel industry has to deal with carefully. The terror attack in Mumbai (TAJ and

TRI DENT) is considered to be the biggest terror event in India. This terror event captured

worldwide attention and created a negative impact in the minds of foreign investors.

Hotels losing staff to retail rush and BPOs is one the most important problem Indian hotels are

facing these days. The Indian hotel industry is currently tackling with the issue of high shortage

of manpower across different classes of star hotels, facing fierce competition from Retail

industry and BPOs, who offer higher- paying jobs to the hotel employees. There is a greater

possibility of knowledge spillover of confidential matter associated with such frequent turnover

of employees. The average employee turnover in the 5-stardeluxe hotels in India is 29%, while in

the case of 4-star and 3-star it is much higher at 32 %, 47% and 43% respectively

(http://economictimes. Indiatimes.com/article show /2015762.cms).

There is no single reason behind the migration of employees from the hotel sector to BPOs and

retail industry. It might be an issue related to HR or the management. Human resource is the

department that deals with the employment and training of personnel, on behalf of the hotel.

Human resource is the department in a hotel that is facing the maximum pressure of employee

retention and motivation. The major challenges that HR and management has to face are as

follows:- 1. Shortage of skilled staff: One of the utmost challenges infecting the hospitality

sector is the unavailability of skilled and quality employees. The hotel industry has botched to



retain skilled professionals. 2. Retaining valuable and quality personnel: Retention of the staff

through development and training in the industry is an issue and abrasion level is too high. 3. HR

development: few services needed in the hotel industry are highly personalized, and require

personal attention no degree of mechanization can surrogate for personal customized service

providers. The country is focusing more on white rather than blue collar jobs. This deficiency of

blue collar staff will masquerade various intimidations to the industry. 4. Customer

expectations: since India is emerging as a tourist destination on the worldwide travel map,

expectations of clientele are rising eventually. The company has to center on customer fidelity

and recurring purchases. To establish this relationship is a biggest challenge

(http://www.expresscomputeronline.com/20021209/indtrend 1. shtml).

In an attempt to reason out the migration of the employees from the hotel sector to other sectors,

it can be said that this act of theirs was a counter-reaction to their dissatisfaction of the working

conditions in the hotel industry. There are a number of general problems that employees have to

encounter while working in a hotel. These problems, either on its own or in combination,

indirectly or directly, may lead to dissatisfaction and stress, or further may result in employee

turnover and resignation of the employee. The problems are as follows:-

Long and heavy shifts, irregular working hours

One of the chief reasons for stress for a lot of employees in the hotel industry initiates from the

fluctuating and unstable timetables and work during irregular hours, together with hours

including evenings and nights. Usually most of the restaurants follow a Shift-work pattern which

also includes split shifts. Working on Sunday¶s (this day is considered to be a rest day in India

and in many other countries) is frequent. Though a huge percentage of employees work for



Home ± work interface

According to a study done by Babin and Boles, that workers who experiences superior levels of

role disagreement and role haziness face many work-family-disputes, along with low job

satisfaction. The consequence of role disagreement and vagueness on job satisfaction seems

hence to be mediated by family- work-conflicts (Hoel et. al, 2003)

Customer service is the main motive of hotel industry. To be a customer-focused hotel, it is

essential to initiate by focusing on the employees. Employees in any subdivision, especially

those who come in to direct contact with the customer, play a vital role in influencing the

satisfaction levels of the customers on behalf of the organization. A dis-satisfied employee can

compel more than one client away. And once it turns out the industry tends to lose more and

more clientele on account of poor-treatment of workers and mismanagement of human resources.

This has a direct or indirect effect on the management and also the company¶s image.

Dissatisfied employee can perform theft and pilferage as a counter effect of the ill-treatment

given to them by the management.(http://ayushveda.com/blogs/business/human-resource-

management-policies-retail-theft-and-employee-engagement/). The above argument posses a

question ³The problems faced by employees in Indian hotels and its effect on the management

and the company¶s brand image´. This question will be used as the base question for the project

and act as a tool for analysis of the findings and help in drawing the conclusion. The case of

hotel HYATT REGENCY, MUMBAI will be analyzed with the help of detailed questionnaire

drafted only for the employees of the hotel. Hotel Hyatt Regency, Mumbai is the city¶s leading

doorway hotel situated adjacent to Mumbai CST international airport. It is 15 minutes away from

the domestic airport, this hotel falls in a close vicinity to the commercial and business centers of



Northern part of the city (http://mumbai.regency. hyatt.com/hyatt/images hotels/

mumbai/factsheet.pdf).

This main objective behind this research study is: To explore the current situation of Indian

Hotel Industry. It also aims to find out the different problems faced by the Hotel Industry in

India, specifically those problems faced by employees and its effect on the employee himself and

also its counter effect on the management and company¶s brand image. This project may also

help in providing certain solutions to tackle these problems. I personally believe that the

knowledge which I have gained as an intern during my industrial training at Hotel Hyatt

Regency, Mumbai, will prove to be valuable for this project. During my industrial training at

Hotel Hyatt I have managed to gain an insight about the overall working of that hotel and the

industry as whole. Training was an opportunity for me to sense the problems faced by employees

in a hotel. I am planning to start my own hotel in near future. Therefore I not only want this

project to be interesting, but also relevant for contemporary management practice in the

hospitality sector. This project can prove useful for management of various hotels who deal with

similar kind of problems pertaining to employees.



It is not essential that the interviewer has to be a trained expert. Secondly, questionnaire¶s can

gather enormous amounts of information in a very short time period. Thirdly, its comparatively

cheaper than other techniques (Saunders et al.,2009). Moreover, questionnaires are easy to

understand and comment upon because of the simplicity of the language used. Moreover, the

responses which are collected are in more standardized format, and so questionnaires prove to be

pretty objective in character (Saunders et al.,2009). But along with the advantages of

questionnaire there are many drawbacks associated with them. Firstly, alike many other study

tools, these questionnaire also crops up successive to the occurrence, There is a possibility that

these respondents might at times ignore significant issues. Besides, questionnaires¶ being

standardized makes it tricky to express some points which the respondents may misinterpret.

Furthermore, open-ended questions in the questionnaire can generate vast amounts of data that

might take a extended time to analyze. Also, if questionnaires are lengthy then they tend to be

boring and the respondents tend to answer ostensibly and try to maneuver their response, which

may lead to inaccuracy (Saunders et al.,2009).

.



LITERATURE REVIEW

Prior to 1760 people usually went to taverns for having their meals. It was in such places where

families used to host their guests. Inn owners also provided boarding and lodging services to

their guests. The term ³hostel´ was used initially, and then later it was changed to ³hostelier´

meaning chief of the unit or place. The Norman citizens created the word ³hotel´. This word

³hotel´ was originally used in England and officially since 1760. The actual expansion of

modern hotel industry was initiated in the US with the launch of the ³City Hotel´ in New York in

1974. This was the first construction raised for the hotel purposes. This era also witnessed the

commencement of chain operations under the leadership and guidance of E.M. Statler. It

involved huge investments, large profits and skilled experts to run the business

(http://www.hospitalitynet.org/news/4017990.search).

The depreciation in 1930 proved to have a disastrous consequence on the hotel industry after the

Second World War and brought about an incredible upsurge in the hotel business with constant

success of the industry. Group travel is a new phenomenon that surfaced after the Second World

War. Mass tourism went on to grow as political freedom, economic means and social fairness

stretched across the globe. Moreover, there was an expansion in global travel and thus growth in

the hotel industry, as the economic engine of progress ran at full steam. Estimates abound as to

the importance and size of housekeeping. Certainly, its economic contribution is critical to the

global economy whether as a service to the business community (http://www.hospitalitynet. org/

news/4017990.search)..

Hotel industry by itself is a budding, multi-billion dollar venture. It is an exhilarating business

that presents countless development opportunities. It is a diverse industry i.e. people can work in



different departments such as Housekeeping, Food production, Food and Beverage service and

so on. In spite of such diversity the hotel industry allows people to work in different areas of

interest and still be employed within the same industry. Such a trend exists not just in India, but

also worldwide. Hotels are regarded as places where travellers stop, cease being tourists and turn

into customers. The definition offered and presented by Stuart Mc Namara, a hotel operator to

the authorities of the National Recovery Administration, Washington, seems to be quite

comprehensive. The definition says that, ³First and foremost, a hotel is basically an organization

which supplies boarding and lodging facilities and is not involved in inter±state trade or in any

intra±state trade, competitive with or influencing inter±state commerce (or so linked that the

regulation of one engages the control of other) (http://www.docstoc.com/docs/246

29475/INTRODUCTION-TO-HOTEL-INDUSTRY).

The hotel may provide accommodation and amenities for gathering of people for social, business

or any entertainment reasons and may involve in holding segments of its property for shops and

other businesses whose stability (i.e., proximity) is believed to be suitable to a hotel. The

meeting of people for social, business and entertainment reasons makes it necessary for the

hotels to also be well-furnished with a large conference hall where there is room for maximum

possible accommodation.(http://www.docstoc.com/docs/246 29475/INTRODUCTION-TO-

HOTEL-INDUSTRY).

In today¶s scenario, the restaurant, catering and hotel industry encompasses a vast series of

diverse businesses, which includes hotels, restaurant and pubs, contract catering in different

commercial and industrial premises, takeaways and fast food centers, bistros and cafes. Hotel

industry plays a vital role of job creator in the field of service sector and also in the financial

system of various EU states. In 2004, this industry provided jobs for almost 7.8 million



inhabitants, which comprises of about 4% of the overall employment in Europe (Protecting

workers in hotels, restaurants and catering).

It is a fact that employees are considered to be the most essential stakeholders in any

organization (Brewster et al, 2007). Employees are considered as a prime source for achieving

competitive advantage in a service-oriented business. This means that, these employees play a

vital role in the firm¶s success and if they are dissatisfied it might have a negative effect on the

business and also on the brand image. Consummate customer service is the core differentiation

strategy adopted by the hotel sector (Enz et.al, 2000). Aligning employee attitude with the

organization¶s objective and strategic values is hence significant for the firm¶s success (Warech

et.al, 2004). Even though hotels progressively anticipate their employees to display exceptional

service behaviors, what these hotels value most might not all the time concur with what workers

value (Kuo, 2009).This means that, the organization and employees not always have the same

opinion on which definite behaviors represent service brilliance. This is regarded as a lack of fit

between organization-employees perception of service value (Kristof, 1996). The (P±O) i.e

Person±organization fit literature proposes that individuals desire to work in an

organization/environment that possesses values or characteristics parallel to their own (Kroeger,

1995). When these values are harmonized, they are supposed to be fit or incongruence. Such P±

O fit or value equivalence has extensively been documented for its capability to foster a mixture

of optimistic work attitudes and results, including organizational commitment, job satisfaction,

performance and retention (Hoffman et.al, 2006). Hence, the intense the connection between the

organization and employee the more is the probability for the service quality to be enhanced.

Various studies have avowed the role of proficient and trusty workers in boosting the

organizational proceeds (Hinkin et.al, 2000). A hotel without its employees is similar to a mobile



retention rate. It may include reimbursement such as compassionate leave, leave for getting

married, office parties, holiday house and training lessons for personality development, etc.

Several benefits are premeditated to be family oriented in order to balance employees¶ family

desires owing to the erratic nature of job. However, from the viewpoint of work±life balance in

present operational setting, these¶ benefits¶¶ can only be considered as a piece-meal approach to

support staff. In an organization that is exemplified by lengthy and lopsided working hours, are

these current µfamily-friendly¶¶ practices sufficient for workers to deal with regular family

responsibilities? Do they consider individual¶s wants?

In the presence of the foregoing distress in the hotel sector, it is a big challenge for the

organization to motivate and stimulate its workers to continue on the job, by promising measures

that will enhance the working condition and counter turnover (Yu, 1999). Finding of various

studies have accredited the bang of enhanced quality of work life (QWL) on condensed turnover

(Ference, 1982). Quality of work life (QWL) has been envisioned as a course by which an

industry reacts to workers wants permitting them to share wholly in constructing decisions that

intend their work life (Robbins, 1998). QWL also aims at ensuring the happiness and comfort of

employees. Beside this background, QWL surface as vital tool to counteract the problem of

employee turnover. According to various researches an individuals¶ QWL is prejudiced by her or

his own job experience and familiarity and their future career prospects (Chatman, 1989). The

phrase µµquality of work life¶¶ (QWL) was introduced in the year, 1972 during a Global Labor

Relations meeting (Hian et.al, 1990). Since from then it has been viewed in various ways such as

a movement or a series of institutional interventions, and also as a kind of work life by workers

(Carlson,1980).



It has been experienced that the technique of defining QWL varies according to several different

perspectives of others. Davis (1983) defined Quality of work life (QWL) as, µthe superiority of

the connection between workers and the overall operational environment along with human

dimensions added to the common economic and technical consideration¶. This means that QWL

refers to the enhance relationship between employee and his overall surrounding in his work

environment. Additional, Carayon (1997) defined QWL as a multifarious communication of the

rudiments of the overall work system; namely organizational factors, individual task, tools and

technology and environment. In the earlier times, some studies have concentrated only on few

definite attributes or a particular situation, in order to define QWL. For example, based on the

behavioral response with respect to the current work environment, Nachmias in (1988) inferred 5

discrete dimensions of Quality of work life (QWL) for the federal staff namely: relations with

co-workers, job task, supervision, financial well-being and relations between work groups

(Nachmias, 1988). Later on, Ghosh in 1992 acknowledged financial compensations for work,

work environment, scope of progression, and hours of work, remuneration and safety services as

the core rudiments of QWL based on job activities (Gosh, 1992). In current studies QWL is

expressed in terms of organizational climate and professional aspect (Rose et.al, 2006).

What causes hotel employees to get annoyed or be contented with their work? What inspires

them? The hotel industry has long hovered over these questions. The answer to these questions is

high staff turnover rate in the hotel industry. Factors that are presumed to contribute to this high

turnover rate are the nature of the work, low salaries, and the long hours of work. Thus, in order

to efficiently tackle this issue of staff turnover, employee motivation could prove to be a critical

subject for managers involved in hotel operations. The Expectancy theory of Motivation is a

theory that can be useful to prevail over this problem. The expectancy theory of motivation,



initially created by Vroom (1964), is a theory that elucidates the method persons employ to make

decisions on a range of behavioral options. The motivational force needed for a particular

behavior, action, or job proves out to be a function of three different insights mainly, expectancy,

valence and instrumentality. Motivational force is the force that directs explicit behavioral

options that are recommended while choosing among behavior alternatives. Expectancy theory

normally is assisted by experiential facts (Vansteenkiste et.al, 2005) and is one among the most

widely used motivation theories in the workplace (Campbell and Pritchard, 1976). This theory

also offers a general structure for evaluating, understanding, and assessing employee

performance in knowledge, decision-making, attitude development, and motivation (Chen and

Lou, 2002). Hotel workers need intellect, work knowledge and skills, and ability to manage time

but without motivation employees will not progress in their careers. Many motivation factors

have been inspected in the hotel industry such as disbursement, monetary benefits, opportunities

for improvement and promotion and so on Also, some other motivation factors including work

accountability, acknowledgment from public, work challenge, the feeling of achievement and

growth of self-worth have been recognized as significant for hotel members of staff (Wong et al.,

1999).

Expectancy theory is introduced as: motivation force=expectancy ×instrumentality ×valence.

The theory declares that the hotel management will pick the alternative with the utmost

motivation forces. Expectancy is the apparent prospect that efforts will lead to excellent

presentation; variables influencing a person¶s expectancy insight comprise of self-efficacy,

difficulty to achieve a goal, and presumed control. Expectancy that an effort will direct to a

preferred outcome is dependent on precedent experience, self-confidence, and the apparent

complexity of the goal. Instrumentality is the professed likelihood that good quality performance



will direct to preferred results; conviction, control, policies are factors impacting the person¶s

instrumentality perception. Therefore, instrumentality is the conviction that if an entity doe¶s

meet up to the performance expectation, he/she will obtain a superior reward. Valence refers to

the worth a person individually places on incentives: the function of requirements, objectives,

principles and inclinations. Expectancy theory usually is backed by empirical substantiation

(Vansteenkiste et.al, 2005) and is one among the most universal theories of motivation used in

the place of work (Campbell and Pritchard, 1976). Expectancy theory explicates the process of

motivation. Instead of merely describing what factors will stimulate an employee, process

theories describe how motivation occurs. Process theories are thus operational representations of

the decision-making procedures that persons execute in order to decide if they will be stimulated

to undertake a certain task and maintain a certain height of efficiency. Process theories help

define and clarify how behavior is directed, keyed up, maintained, or put to a halt. Whilst quite a

few process theories of motivation subsist, one of the most appreciated and valued motivation

theory amongst industrial and organizational psychologists is the process theory of expectancy.

Nevertheless, Mitchell (1974) stated that among the mechanisms of expectancy theory, the

construct validity tends to be a little misunderstood. Numerous explanations, organizational

strategies, applications, and processes of statistical examination have been utilized in

combination with the expectancy theory, but a chief worry about the validity component of the

expectancy theory continues to be indistinct and unclear(Van Eerde et.al, 1996). Landy and

Becker (1990) recommended that the solution to bettering the forecasts of an expectancy model

may lie in aspects like the number of results, the valence of these outcomes, and the specific

dependent variable selected for the study.



As mentioned earlier there are various motivational factors such as money, grant, benefits etc

which play an important role in motivating and stimulating the hotel employees. Rewards signify

imperative mechanisms by which workers¶ behavior can be unified with the benefit of the

organization or the industry (Eisenhardt, 1989). Specifically,(PFP) i.e. pay for performance, is a

reward practice that associates one¶s performance to his pay. Pay for performance (PFP) can be

used as a tool to sustain, motivate and direct enviable behaviors, such as creativity, customer

satisfaction, quality and information sharing Therefore, PFP plays a vital role in nurturing

organization-employee value alliance i.e. (P±O fit) (Chaing et,al. 2010). In addition to its

strategic role in fostering employee±organization goal congruence (Eisenhardt, 1988), PFP

serves both instrumental (monetary incentives) and symbolic (recognition) motivational

properties (Stajkovic and Luthans,2001). It establishes the behavioral criteria by which rewards

are allocated and in doing so underpins the alignment of employee behavior with organizational

values and objectives (e.g., service quality). Simply put, if an employee achieves his/her

performance objectives then he/she receives a pay increase. This visible connection or link

between pay and performance recognizes an employee for a specific level of accomplishment,

thereby fostering favorable work attitudes, such as satisfaction and commitment Heneman et al.,

1988).

The above mentioned concepts and theories play an important role in motivating the employees

and reducing the turnover rate and help in avoiding knowledge spillover (a term discussed in the

Introduction of this project). This may indirectly lead to employee satisfaction and help them to

overcome the problems which they face. This has a positive counter effect on the hotel and the

overall brand image as well.



DATA FINDINGS AND ANALYSIS

The data which is collected is an outcome of two different questionnaires focusing on employees

of hotel Hyatt Regency, Mumbai and employees of other hotels. The sample size is 10

employees from each sector (Hotel Hyatt and other hotels) as mentioned in the research

methodology. The analysis of the findings is done in a sequential manner as per the questions

given in the questionnaire which is attached in the appendix.

The findings and the analysis of the findings can be summarized as follows:

The attitude of employees from other hotels is convincingly unfavorable when asked about the

benefits offered to them by the hotel with respect to their family. About 50% of the employees

from other hotel disagree to the given statement (Pie 1). There exists a balance between the

percentage of number of employees who have agreed and those who have strongly disagreed,

which is 20% each. Very few employees i.e. 10% of the employees of the other hotels believe

that the hotel in which they work provides them rewards that secure their and their family¶s

future. The scenario is a bit inverse in the case of the employees of hotel Hyatt Regency,

Mumbai. As you can see, about 30% of the employees from Hyatt disagree and 40% of the

employees agree to the statement given below, which shows a difference of 20% each

(percentage of agree and disagree) as compared to the response of employees from other hotels.

Around 10% of the employees from hotel Hyatt, strongly disagree and 20% strongly agree,

which shows a difference of 10% each (percentage of strongly agree and strongly disagree) as

compared to the employee from other hotels.

This shows that the majority of employees from other hotels feel that the reward which they

receive from their hotel is insufficient to provide security to them and their family. While most



of the employees of Hotel Hyatt Regency are satisfied with the reward they get. This embosses

the issue of unhealthy reward practices carried out by other hotels which is disturbing the

employees and might affect their performance.

(Pie chart 1)

10%

20%

50%

20%

The benefits offered

provide security for

me and my family

(Other Hotel)

Strongly

agree

Agree

disagree

strongly

disagree

20%

40%

30%

10%

The benefits offered

provide security for

me and my family

(Hotel HYATT )

Strongly

agree

Agree

disagree

strongly

disagree



The response of employees from other hotels is quiet surprising with respect to this statement

given in (Pie chart 2) as compared to the earlier one. In-spite of the unhealthy reward system

nearly 40% of the employees believes to have a growth prospect in their current job. About 20%

of the employees strongly believe to prosper in their existing hotel, which make a total of 60%.

While 30% of the employees disagree with this and the remaining 10% is strongly against this

statement. The case is somewhat similar with the employee of hotel Hyatt. Nearly 60% of the

employees sense an opportunity to enhance their career in the hotel itself which is similar to the

response of other hotel employees. But the only difference is this percentage is divided equally

i.e.30% between the employee who agree and strongly agree with this statement. The remaining

30% of the employee feel that there is no scope for improvement in this hotel and the residual

10% are totally against.

(Pie Chart 2)

20%

40%

30%

10%

I can advance at my

hotel

Strongly

agree

Agree

disagree

strongly

disagree

30%

30%

30%

10%

I can advance

at HyattRegency, Mumbai

Strongly

agree

Agree

disagree

strongly

disagree



Such a high rate of acceptance by the employees of Hotel Hyatt Regency, Mumbai and the

employees of other hotels is a good sign of proper motivation of employees. But the bad sign is

that nearly 40 % of employees feel that there is no scope for further advancement which is quite

a big amount.



The attitude of employees from both the areas i.e. Hotel Hyatt Regency and other hotels is seen

to be negative with respect to the further statement (Pie Chart 3). Nearly 50% of employees from

both the areas have an opinion that the hotel does not adopt any such approach like PFP while

paying their employees. About 10% of the employees each from the combined areas strongly

oppose this statement. The remaining 40% of employee agree the existence of such practice in

their hotel. However, it is striking to note that almost 40% of Hyatt employees are affirmative

about the presence of this practice. This can mean two things: either the remaining 60% were

unaware of the presence of PFP or it could be possible that different departments in the same

hotel have different reward practices.

(Pie Chart 3)

20%

20%50%

10%

My Hotel follows a Pay

For Performance(PFP)

Practice

Strongly agree

Agree

disagree

strongly

disagree

10%

30%50%

10%

Hyatt Regency, Mumbai

follows a Pay For

Performance(PFP)

Practice

Strongly agree

Agree

disagree

strongly

disagree



This proves that a majority of employee from both the area deny the existence of PFP in their

hotels. This seconds the finding of the first question i.e. most of the hotels follow unhealthy

reward practices as mentioned earlier. Pay for performance (PFP) is a tool that can be used to

sustain, motivate and direct desirable behaviors as mentioned in the literature review. This PFP

plays a vital role in fostering organization-employee value alliance i.e. (P±O fit) (Chaing et.al,

2010). With the absence of PFP approach we can say that, most of the hotels including Hotel

Hyatt, lack the alliance of employee attitude with the organization¶s objective and strategic

values, which is significant for the firm¶s success (Warech et.al, 2004). This is regarded as a lack

of fit between organization-employees perception of service value (Kristof, 1996) as mentioned

in the literature review. This can be regarded as one of the main problems which can have a

negative effect of the employees as they may be dissatisfied which may affect their performance

and the performance of the hotel as a whole. This may also end up de-motivating the employees.



It is noticed that level of motivation is too low among the employees of other hotels. Nearly 60%

of the total employees feel the motivation level to be too squat at their work place, further on

about 10% of the employees are totally against this statement and strongly deny of any

motivation at their work place. The remaining 30% of the employees agree that the management

plays a chief role in motivating them. Surprisingly the percentage of employees who strongly

agreed was 0. As compared to hotel Hyatt Regency, Mumbai, the picture is a bit different.

Approximately 40% of employees strongly feel that the management of Hyatt Regency Mumbai

strives hard to motivate its employees. While the further 20% back their view by agreeing to this

statement. The remaining 40% is divided equally between employees who strongly disagree and

oppose this idea.(Pie chart 4)

(Pie Chart 4)

0%

30%

60%

10%

Does the management

motivate the

employees for better

performance and fulfill

their expectations

(Other Hotel).

Strongly agree

Agree

disagree

strongly

disagree

40%

20%

20%

20%

Does the management

motivate the

employees for better

performance and fulfill

their expectations

(Hyatt Hotel).

Strongly agree

Agree

disagree

strongly

disagree



The above finding clearly embosses the fact that most of the other hotels have a deficiency of

employee motivation. The management of these hotels fails to motivate their employee which

may lead to employee dissatisfaction. The reason behind this can be the growing power distance

in Indian organizations. Power distance is a degree to which the public admits that power in

organizations should be disseminated unequally. India ranks 10th all over the world with respect

to the Power distance (Brewster et al, 2007). This score designates a high level of disparity of

wealth and power in the society. While in case of hotel Hyatt majority of employees feel

motivated by their management. Despite of the power distance present in the country there is a

greater possibility that the management follows the Expectancy theory of motivation of

employees. The Expectancy Theory developed by Vroom (1964) is one among the most widely

used motivation theories in the workplace (Campbell and Pritchard, 1976) as mentioned in the

literature review.



Majority of employees from other hotels responded positive to this statement (Pie Chart 5).

Practically 60% of the overall strength of respondents from other hotels and 30% of the

respondents from Hotel Hyatt Regency strongly agreed on the point of moving to some other

hotel for better pay. Shockingly more 20% employees from other hotels and 30% from hotel

Hyatt Regency were fantasized with this idea and agreed further to support this statement. The

remaining 40% of employees from both the areas (40% from Hotel Hyatt and 40% other Hotels)

seem to be loyal to their hotel and oppose the idea of moving to other hotel for better pay.

(Pie Chart 5)

As majority of respondent from both the areas (Hotel Hyatt and other hotels) support the idea of

shifting to other hotels for a better pay prospect. It can be assumed that the pay scale of most of

60%20%

20%

0%

I am ready to join

some other hotel for

a better pay (Other

Hotel)

Strongly

agree

Agree

disagree

strongly

disagree

30%

30%

30%

10%

I am ready to join

some other hotel for

a better pay (Hotel

Hyatt)

Strongly

agree

Agree

disagree

strongly

disagree



the employees is below their expectation. This is the main reason behind Indian hotels losing

staff to retail rush and BPOs who offer higher- paying jobs to these hotel employees.

(http://economictimes. Indiatimes.com/articles how/2015762.cms) as mentioned in the

introduction of this report. This can de-motivate the employees and lead to dissatisfaction. A dis-

satisfied employee can compel more than one client away. This has a direct or indirect effect on

the management and also the company¶s image (http://ayushveda.com/blogs/business/human-

resource-management-policies-retail-theft-and-employee-engagement/) as mentioned in the

introduction of this project.



Approximately 40% of the employee from the other hotels and 30 % of the employee from hotel

Hyatt Regency, Mumbai seem to be totally against this point. Furthermore 30% employees from

other hotels and 40% form hotel Hyatt tend to disagree with this statement. The remaining 30%

of the employees from other hotels support this point and agree that they don¶t have to work

beyond their shift time. Co-incidentally the response of the employees of hotel Hyatt Regency is

exactly same as compared to the employees of hotel i.e. 30% of employees say that the hotel

doesn¶t ask them to work beyond their shift. They get the check-out on time.

(Pie Chart 6)

From the above findings we can comment that the majority of employees (including employees

from hotel Hyatt and other hotels) have to work beyond their shift time. Almost all the

employees face the problem of long shift hours. Lengthy shift duties, long working hours and

10%

20%

30%

40%

I dont have to work

beyond my shift (Long

working hours)

Strongly agree

Agree

disagree

strongly

disagree

10%

20%

40%

30%

In Hyatt

Regency,Mumbai I

dont have to work

beyond my shift (Long

working hours)

Strongly agree

Agree

disagree

strongly

disagree



managing challenging and tricky customers in the hotels has turn out to be a taken-for-granted

trend in the industry (Hsieh et al., 2004). This can create an imbalance in the work life of the

employees. And if employees experience an imbalance in their work±life, they might abscond

their job and hunt for µµquality of life¶¶. This may affect the performance of the organization and

may also damage the company brand image, as mentioned in the literature review.



Only 10% of the employees of other hotel strongly agree and 20 % of the employees agree to

have a job security at their workplace, which make a total of 30%. The remaining 70% deny of

having any job security. They have the fear of losing their job at any point of time. The scenario

is inverse when it comes to Hotel Hyatt Regency, Mumbai. Roughly 60% of the employees have

a sense of job security. They think that their job is totally secured and the hotel cannot remove

them from job whenever they feel like. The residual 30% of employees feel that they have the

fear of losing their job.

(Pie Chart 7)

Job security can be considered as a biggest source of motivation for employees. As per the report

by KPMG, global consultancy firm, more than 75% of graduates in India who join as employees

rank job security as their first priority with respect to pay (http://timesofindia.indiatimes.com/biz/

international-business/Job-security-more-important-for-graduates-than-pay-Survey/articleshow/

10%

20%

40%

30%

I do not fear losing my

job(Other Hotel)

Strongly agree

Agree

disagree

strongly

disagree

20%

40%20%

20%

I do not fear losing my

job (Hotel Hyatt)

Strongly agree

Agree

disagree

strongly

disagree



5681831.cms). Hence this makes it clear that majority of other hotels leaving hotel Hyatt

Regency Mumbai fail to provide a job security to their employees. This again can have a

negative impact on the employee and the same negative counter effect on the hotel. The

employee can even shift their job in case search of a secured job which again is dangerous for the

hotel as it cause knowledge spillover as mentioned in the introduction.



Regency has managed well to provide a quality work life to its employees (according to the

findings). An employee with an imbalance work±life, may leave his job and search for µµquality

of life¶¶. This can be regarded as a turnover of employees in other words. , QWL also acts as a

vital tool to counteract the problem of employee turnover as mentioned in the literature review.

Hence this is a disadvantage for other hotels as they lack in QWL, which can save them from the

problem of high employee turnover.



Nearly 60% of the employees of other hotels are not satisfied with the working pattern of their

hotel. While the remaining 40% of feel fully satisfied. On the other hand , the situation is exactly

opposite in case of hotel Hyatt regency Mumbai where exactly 60% of the employee feel that

they gel very well with the working pattern of the hotel and they are fully satisfied with it. The

remaining 40 % seem to be dissatisfied with the working pattern of hotel Hyatt Regency.

(Pie chart 10)

On asking the reasons for dissatisfaction, the employees from other hotels justified their stand by

giving reasons such as: Long working hours, Low salary, unbalanced quality of work life, High

Power distance, Lack of motivation, no job security and so on. If we go to group the most

common responses, lengthy working hours, low salary, lack of motivation and work life balance

will top the charts. Lack of two way communication between the subordinates and management

was something new and uncommon to be focused upon among the responses. This embellishes

40%

60%

Are you satisfied with

the working pattern of

your hotel?

yes

No

60%

40%

Are you satisfied with

the working pattern of

hotel Hyatt?

yes

No



the fact that most of the hotels are working in an unsatisfactory manner as per the employees¶

perspective. This unhealthy pattern of working can prove fatal for the life and image of these

hotels in long run. As employees¶ are considered to be the back bone of any industry frequent de-

motivation and dissatisfaction of these employees should be avoided for the better future of the

industry.

The employees of Hotel Hyatt Regency are very much in favor of the hotel. Their view towards

their hotel is somewhat contradicting to the view of the employee of other hotels. On asking the

reason, the most common responses were as follows: Open two way communications, Improved

and balanced QWL and so on. Most of the employees mentioned about Celebrate Our People

(COP) to be their biggest motivation. Celebrate our people is an event which is held once a year

in every Hyatt property all over the world. In (COP), The hotel recognizes, acknowledges and

awards its employee for outstanding performance (http://www.explorehyatt.jobsindex_flash

.php?docid=54). This shows that Hotel Hyatt Regency Mumbai strives hard to enhance the life of

its employees and provide them maximum comfort at work. Events such as COP play an

important role in motivating the employee. This adds on to the fact that there exists a level of

motivation in hotel Hyatt Regency Mumbai.

When the employee of Hotel Hyatt Regency Mumbai and Other hotels were asked what they

would like to change in their hotel, some employee from the other hotels wanted to change the

working pattern, while some wanted to change the management itself. Few wanted to change the

pay policy and follow PFP and few employees wanted to stop the practice of long working

hours. Majority of the employees opted for changing the working pattern and the reward policy.

The responses of some employees of hotel Hyatt Regency were similar to the responses of

employee from other hotels. Surprisingly, some employee opposed the idea of changing



anything in hotel Hyatt. These employees claimed to be satisfied with everything around them in

their hotel.

Suggestions for Hotel Hyatt:

Based on the analysis of the findings from the research study, certain suggestions can be made to

Hotel Hyatt Regency, Mumbai so that they can convert the dissatisfaction of their employees on

various issues into satisfaction.

To begin with, a large proportion of employees of Hyatt state that the Pay for Performance(PFP)

system is non-existent in their hotel. This clearly shows lack of appropriate reward system which

goes against the basic HR functions of any hotel. PFP actually is given based on an evaluation of

the employees¶ performance in the hotel. It is essential that this practice should exist as it is the

right of the employees to get a feedback of their performance and to be remunerated adequately

for it; not more, not less. Therefore, Hotel Hyatt should try and include this system of reward in

its HR practices and make their employees happy. Moreover, as seen in the analysis that a

slightly lesser but prominent section of employees speak about the existence of such a practice in

hotel Hyatt; this may mean that the rest 60% did not know about this fact and so here arises the

responsibility of the HR manager of Hyatt to constantly keep briefing the employees regarding

their rights and benefits along with their duties. Maybe this can reduce the discrepancy in

thought that exists among employees of the same hotel on the same issue.

Furthermore, the issue of 60% hotel Hyatt¶s employees¶ wanting to shift to other hotels if offered

a better package poses a serious question on the reputation of the hotel. Employee retention is a

major factor which strengthens the reputation of any hotel. The employees should value job

security and satisfaction more than mere salaries. This will happen if the hotel management and



HR department uses different means to motivate and retain employees. They should understand

the needs of their employees and empathize with their expectancies in order to keep them loyal

towards their hotel. They can organize more events such as the COP in order to motivate

employees. Also, employee feedback can be taking through anonymous questionnaires and the

necessary changes can be brought about to meet their expectations. Also, employees should be

remunerated well for the work they do, so that they need not bother going to other hotels in

search of high paid jobs.

Moreover, nearly 60% of the employees of hotel Hyatt complain about working beyond their

shift hours. This clearly portrays inefficiency in the management of the hotel and a clear

exploitation of the employees. This can even harm the image of the hotel in the case of violation

of the workers¶ rights as the employees are not willing to work beyond their shift hours. It¶s a

human tendency that if anyone is forced to work against his will; he might not perform the work

with utmost dedication which may lead to imperfection. Imperfect service may bother the

customer, which encourages negative marketing of the hotel and the brand. So hotel Hyatt

Regency need to take special care about this issue and try dealing with it by proper management

and scheduling of the duty rotas (shift timings of the employees). The hotel can give benefits and

reward to the employees for working extra time, which may motivate the employees to perform

well. It has to be a give and take relationship, because if the employees work extra time over and

above their shift they expect to get a compensation for those extra hours worked.

Lastly, approximately 60% of the total employees¶ believe that they can advance at hotel Hyatt.

This a positive sign for the hotel as this portrays that most of the employee of Hyatt Regency

believe in the hotel, believe in the brand. I personally have experienced this feeling at Hyatt.

They aspire of have a better future with Hyatt. This can be a counter effect of the QWL provided



to the workers at hotel Hyatt. Also the hotel strives hard to motivate the employees. The hotel

should keep up with its work and try and fulfill the expectation of its employees. This may

control the percentage of employee turnover and the remaining 40% might also start believing

the brand.

Suggestions for Other hotels or the Industry as whole :

Most of the suggestions given to Hotel Hyatt Regency, Mumbai, are also applicable to other

hotel or the entire hotel industry in India. Apart from the above mentioned recommendations,

there are few suggestions yet to be given to other hotels based on certain issues.

To begin with, nearly 70% of the employees from other hotel believe that the reward which they

receive is insufficient to provide security for him and his family. Family is given more

importance in Indian culture. This means that most of the workers are dissatisfied with the

reward system of the hotel. Rewards are considered to be one of the main sources of motivation

for the employees as mentioned many time in this project earlier. The industry should make sure

that the reward which they pay to their employees¶ should at least provide some security to the

employee¶s family. If the family of the employee is secured then gradually the employee will

feel secured and then he will try to work with utmost honesty and dedication leading to help in

building a successful brand.

Secondly, approximately 70% of the employees from other hotel have an opinion that the level

of motivation at their hotel is very low. The management of these hotels is least interested ore

neglects such an important issue of employee motivation which is the key to firms¶ success as

proved earlier. This clearly shows that there is hardly any use of the Expectancy theory of

motivation. The management should try analyzing what really motivates its employees and the



hit the bull¶s-eye by providing what these employees want. Expectancy theory explicates the

process of motivation. Instead of merely describing what factors will stimulate an employee, this

theory describe how motivation occurs. This theory is thus regarded as a operational

representations of the decision-making procedures that persons execute in order to decide if they

will be stimulated to undertake a certain task and maintain a certain height of efficiency as

mentioned in the literature review. The management of all the hotels should follow this theory in

order to motivate and stimulate its employees.

Furthermore, 70% of the employees from other hotel lack a sense of job security. As most of the

graduate student aspiring to join jobs rank job security over pay. The management should try

focusing on providing job security to the employees so that this might act a s a magnet to attract

more and more new talent and avoid employee turnover to BPO¶s and retail rush, thus acting in

favor of the hotel by retaining their staff and avoid knowledge spillover as discussed earlier.

These recommendations will not provide a complete assistance against these problems, but will

surely suggest some remedy to overcome the above mentioned problems. These

recommendations are verbal representation of my personal analysis and are subject to differ to

someone else¶s perspective.



Conclusion:

This section of the project will discuss about the conclusions that can be drawn from this entire

research study.

Hotel sector is considered to be a very vast sector it very difficult to speak about all the problems

pertaining to this industry. This project has thus narrowed down the research question by

focusing on the problems faced by employees in Indian hotels and its effect on the management

and the brand image. Problems do exist but appropriate management is the key to tackle this

problems. This study has been seconded by a firm and concentrated literature review that

illuminates all the theoretical and conjectural elements associated to hotel industry and its

constraints specific to employees. Thus literature review is mainly a theoretical structure of what

different secondary sources have cited about the main research question asked in the project.

Literature review is seconded by my research on the problems faced by employees in Indian

hotels. Employee from hotel Hyatt Regency, Mumbai, and other hotels were used as sample for

this study. The study pointed out the problems faced by employees in Indian hotels. This study

was supported by an in depth analysis of these reasons for existence of such problems and rock-

hard solutions to tackle these problems.

From the entire study we can conclude that, though Indian hotel Industry is considered to be a

booming industry, there are many loop holes which need to be taken special care of. Especially,

those problems related to employees. From the overall analysis we can comment that most of the

problems of these employees are rotating around few major issues like pay and reward policy,

motivation, Job security, Imbalanced QWL and lengthy hours. These problems can be regarded

as the main culprit behind generating smaller problems. Most of the respondents from hotel

Hyatt Regency, Mumbai, answered in support of the hotel, but this does not mean that, these



above mentioned core problems are totally eradicated from that hotel. Almost all the hotels face

these problems in some or the other way. The only difference is, these problems vary in intensity

from hotel to hotel. These problems are relative in nature. Thus, all the hotels including hotel

Hyatt needs to pay special attention to these problem of employees. The management of these

hotels needs to focus on employee satisfaction and motivation along with satisfaction of the

customers. This is because, employees are the one who come in direct contact with the customers

and if these employees are dissatisfied, they may turn many customers away by providing

improper service, which will end up spoiling the image of the hotel in the minds of the customers

as mentioned in the literature review. Thus in conclusion we can say that, if the employees face

any problem, it also has an counter effect on the management and the company¶s brand image.

literarure revew black

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