Description
The PPT includes performance management in the hotel/hospitality industry.It also takes Taj and Orchid into account.
Performance Management System in the Hospitality Industry
? Introduction
and key facts: hospitality
sector ? Opportunities ? Challenges ? Future Trends ? HR implications ? PMS in Taj ? PMS in Orchid
? ? ?
HOSPITALITY: “The act of being kind or receptive to guests or visitors.” The mutual dependency of Hospitality and Tourism sectors make it very tough to segregate one from another. However, the Hospitality industry can broadly be classified into 4 major categories viz.:?
Hotels
? ? ?
Restaurants Catering services Hospitality services
? ? ? ?
?
?
India is a country which believes in “Atithi Devo Bhava” History of Hospitality industry as a business in India can be traced back to the years of “Saraiye Khanas” and “Ashramas”. Concept of Hotels was introduced late in India with the advent of the British. ITC Maurya and Taj Mahal Palace were among the pioneer hotels of India. However, the major developments in the sector came about in the last two decades after hospitality and tourism industries got focus of the government With the Indian tourism industry growing due to reasons like cheap tourism destination, hot destination for medical tourism and marketing by the tourism industry, the hospitality sector is also getting great boom.
? ? ?
?
? ? ?
?
?
Hospitality sector is likely to see US$ 11.41 billion in the next two years. India is likely to have around 40 international hotel brands by 2011. The industry is dominated by 4-5 large Indian hotel owner-managers – The Taj Group, Oberoi, ITC, Leela and Bharat Hotels The branded segment represents approximately 30,000 rooms or 30% of the total hotel stock Occupancy ratio is around 75-80 per cent. Average increase in room rates hovered around 22-25 per cent (JulySeptember 2007). Global hospitality majors have evinced a keen interest in the Indian hospitality sector. Eg. chains like the Hilton, Accor, Marriott International have announced major investment plans that would translate in to 65,000 additional rooms. Travel and Tourism is a $32 billion industry in India, 5.3% of GDP Foreign tourists during the first ten months of 2007 to reach 3.89 million as against 3.46 million during the corresponding period last year.
?Demand and • Current
supply
supply of 110,000 rooms; Shortage of 150,000.
• Demand is
•
going to exceed supply by at least 100% over the next 2 years.
Demand-supply disparity, hotel rates in India are likely to rise by 25% annually and occupancy by 80%, over the next two years. This will affect the competitiveness of India as a cost-effective tourist destination.
• ? Increase ? Lack
in real estate prices.
of proper spaces
? ? ? ? ? ? ? ? ? ?
Growth in Indian economy led to increase in middle class income. Booming IT sector Aggressive campaign – “incredible India”... Growth of inbound and domestic tourism Indian tourism demand will grow at a CAGR of 8.8 per cent over the next decade till 2015 The aviation and real estate boom Initiatives to liberalize foreign investment and improve infrastructure From a seven-eight brand hotel market a few years ago, India will be a 40brand hotel market by 2010 The occupancy is currently 85-90 per cent in the star category and 55-60 per cent in the budgetary class hotels. the hotel management institutes in India have mushroomed from just 18 to over 280 today
? ? ? ? ? ? ? ? ? ?
Global hotel chains have shown considerable interest in India. Marriage between hospital and hotels The mall boom was really the cream on the cake as it provided fuel for the growing restaurant sector in India Development of serviced apartments. Improved infrastructure facilities, strong performance of the corporate sector, various government initiatives . 100 per cent FDI regime in Tourism sector. The Delhi National Capital Region (NCR) has got a five year tax holiday for new two -, three - and four-star hotels Growth of SEZs. The maximum potential in hospitality lies in the budget segment - both in metros and non-metro Tier I and II cities. A large chunk of margins to middlemen and tour operators.
? Role of
govt. of taxation across all the states.
• Uniformity
• Rationalization of
? Global
taxations
uncertainty
Emergence of the new class of entrepreneurs • Increased competition from foreign players • Improved quality of service • Mergers with international firms • Indian players will make a global mark • Focus on tourism will boost hospitality sector • International events will boost the sector • Government will be a key player in development of the industry • Emergence of New concepts “Hospitel”
•
? ? ? ? ? ? ?
Manpower Crunch Attrition Expat Talent Quality Workforce Organizational Structure Compensation Incentives
?
? ?
?
? ? ?
Job Knowledge Customer Service Interpersonal Skills Teamwork Adaptability Action oriented personality Integrity
Behavioural - Etiquettes - Courtesy - Business Communication Functional Food, Restaurants, Hotels and Hospitality - Bar Tending - Restaurant management - Culinary skills -Food preparation and safety Leadership and Chain Management Hotel and Restaurant Health and Safety Skill Based - Multiple skills - Cross training - Skill training
?
? ?
•
Every Employee of TAJ would be an important member of TAJ family Taj Family would always strive to attract, reward and retain the best talent in the industry Taj Family would commit itself to formal communication channel and foster transparency.
•
•
TAJ People Philosophy
•
Covers all the people practices of the group
In line with Tata Business Excellence model Three major areas: - Work systems and Processes - Learning & Development - Employee welfare
•
•
Business Strategy
Assessment
Business Unit Goals & Objectives
Periodic Reviews
Functional Goals & Objectives
Annual Work Plan
•
Individual Performance linked with Group’s overall strategy Enhancing individual and Enterprise performance Performance measured against a set of predefined targets and variances identified Implemented even at the lowest level of hierarchy Includes Employee Satisfaction Tracking System
•
•
•
•
•
Financial and Operational Results
Customer Satisfaction results Employee Satisfaction Entrepreneurial and Leadership dimensions
•
•
•
Inputs from SPP,SBUs, BSC, Stakeholder’s Expectations
Action Plan for SBUs Functional Level Goals
Individual KRAs
Enablement
Mid Year Review Annual Appraisal
PERFORMANCE Exceptional 1 .Superior TRAINEE 2 . Candidate for Growth 4. Seasoned Professional Fully Performing 3. Stretch Candidate 5. Candidate for Challenge Partially Contributing 6. Needs Careful Watching 8. Needs Close Watching
GROWTH
MASTERY
7 . Potential 9 . Plan for Seasoning Separation Rotate Lower
Annual Appraisal
Rewards and Recognition
Training Needs Identified
Compilation at Units Review and Analysis Of Feedback Training Calendar
High Performers Identified
L & D Opportunities
Feedback System
•
Strong measures to weed out underperformers 360 degree feedback system Evaluate performance of all top officials Evaluation done by immediate subordinates Followed by personal interviews and counselling sessions
•
•
•
•
An Ecotel hotel The first hotel in Asia which is environmental friendly. Only ecotel hotel that has been certified ISO14001. The only 5-star hotel of the kamats.
? ? ?
ENVIRONMENT TEAM SPIRIT JOB PERFORMANCE
The orchid, Asia's first 5 star ecotel hotel, is committed to enhancing the guest ,experience while setting a new standard of environmental responsibility ,by conserving natural resources, educating, enlightening and motivating our staff, and cultivating community relationship.
Orchid Hotel
Gadh
Vits
Concept Hospitality
Resturants
FnB
orchid
Front office
Support function
?
Strategically located near the airport. Being the one of the few ecotel hotels, is has successfully attracted the foreign nationals. The customer service by their front line staff.
?
?
Started with the incentive scheme in 2003-04 ? The management decides how much of revenue earned is to be given as incentives. ? A 5-point rating system ? Competency based. ? Mainly for the executives senior level.
?
Incentive scheme has four parameters: ? A Set amount-which everyone gets and is divided and given equally grade wise ? Achievement of the GOP (gross operating profit) ? Loyalty to the organisation . ? Mystery audit
?
The PMS is at very nascent stage at Orchid. ? 19 competencies for rating identified ? Team based appraisals. ? Equal remuneration leads to free riders. ? This is for the executives posts only and haven’t been developed for the non executive cadre
?
?
MBR’S and goals linked to the budget Only once an appraisal is done Feedback on informal basis
?
?
?
No performance evaluation.
final appraisals (once a year)
Goal setting exercises (MBR’S)
Mid year reviews (very poor feedback system)
Competency gaps are listed out ? For coaching they follow the D1-D4 model. ? When a new employee joins the hotel he is given 3-4 tasks randomly and his multitasking is seen. ? After this he is assigned a particular task seeing his competencies. ? The HR and the HOD sits together for the career planning of the subordinates.
?
KRA’S not yet linked to the competencies. ? No differentiation of the A,B,C players. ? Do not have efficient training and development programs. ? The career development path is also not very well sketched. ? Social loafing present due to improper team appraisals.
?
Key Learning's
?
? ? ?
?
PMS should be both a team based and an individual based exercise. Rigidity prevails in PMS practices in Indian Hospitality As the industry grows so will the demand for experts and need for companies to retain them. The final objective of the PMS should be to enrich the working atmosphere and morale. Individual, Team, and Organization development and growth. If PMS is built to check attrition then there is a high possibility that a large number of free-riders will be onboard.
doc_713335138.ppt
The PPT includes performance management in the hotel/hospitality industry.It also takes Taj and Orchid into account.
Performance Management System in the Hospitality Industry
? Introduction
and key facts: hospitality
sector ? Opportunities ? Challenges ? Future Trends ? HR implications ? PMS in Taj ? PMS in Orchid
? ? ?
HOSPITALITY: “The act of being kind or receptive to guests or visitors.” The mutual dependency of Hospitality and Tourism sectors make it very tough to segregate one from another. However, the Hospitality industry can broadly be classified into 4 major categories viz.:?
Hotels
? ? ?
Restaurants Catering services Hospitality services
? ? ? ?
?
?
India is a country which believes in “Atithi Devo Bhava” History of Hospitality industry as a business in India can be traced back to the years of “Saraiye Khanas” and “Ashramas”. Concept of Hotels was introduced late in India with the advent of the British. ITC Maurya and Taj Mahal Palace were among the pioneer hotels of India. However, the major developments in the sector came about in the last two decades after hospitality and tourism industries got focus of the government With the Indian tourism industry growing due to reasons like cheap tourism destination, hot destination for medical tourism and marketing by the tourism industry, the hospitality sector is also getting great boom.
? ? ?
?
? ? ?
?
?
Hospitality sector is likely to see US$ 11.41 billion in the next two years. India is likely to have around 40 international hotel brands by 2011. The industry is dominated by 4-5 large Indian hotel owner-managers – The Taj Group, Oberoi, ITC, Leela and Bharat Hotels The branded segment represents approximately 30,000 rooms or 30% of the total hotel stock Occupancy ratio is around 75-80 per cent. Average increase in room rates hovered around 22-25 per cent (JulySeptember 2007). Global hospitality majors have evinced a keen interest in the Indian hospitality sector. Eg. chains like the Hilton, Accor, Marriott International have announced major investment plans that would translate in to 65,000 additional rooms. Travel and Tourism is a $32 billion industry in India, 5.3% of GDP Foreign tourists during the first ten months of 2007 to reach 3.89 million as against 3.46 million during the corresponding period last year.
?Demand and • Current
supply
supply of 110,000 rooms; Shortage of 150,000.
• Demand is
•
going to exceed supply by at least 100% over the next 2 years.
Demand-supply disparity, hotel rates in India are likely to rise by 25% annually and occupancy by 80%, over the next two years. This will affect the competitiveness of India as a cost-effective tourist destination.
• ? Increase ? Lack
in real estate prices.
of proper spaces
? ? ? ? ? ? ? ? ? ?
Growth in Indian economy led to increase in middle class income. Booming IT sector Aggressive campaign – “incredible India”... Growth of inbound and domestic tourism Indian tourism demand will grow at a CAGR of 8.8 per cent over the next decade till 2015 The aviation and real estate boom Initiatives to liberalize foreign investment and improve infrastructure From a seven-eight brand hotel market a few years ago, India will be a 40brand hotel market by 2010 The occupancy is currently 85-90 per cent in the star category and 55-60 per cent in the budgetary class hotels. the hotel management institutes in India have mushroomed from just 18 to over 280 today
? ? ? ? ? ? ? ? ? ?
Global hotel chains have shown considerable interest in India. Marriage between hospital and hotels The mall boom was really the cream on the cake as it provided fuel for the growing restaurant sector in India Development of serviced apartments. Improved infrastructure facilities, strong performance of the corporate sector, various government initiatives . 100 per cent FDI regime in Tourism sector. The Delhi National Capital Region (NCR) has got a five year tax holiday for new two -, three - and four-star hotels Growth of SEZs. The maximum potential in hospitality lies in the budget segment - both in metros and non-metro Tier I and II cities. A large chunk of margins to middlemen and tour operators.
? Role of
govt. of taxation across all the states.
• Uniformity
• Rationalization of
? Global
taxations
uncertainty
Emergence of the new class of entrepreneurs • Increased competition from foreign players • Improved quality of service • Mergers with international firms • Indian players will make a global mark • Focus on tourism will boost hospitality sector • International events will boost the sector • Government will be a key player in development of the industry • Emergence of New concepts “Hospitel”
•
? ? ? ? ? ? ?
Manpower Crunch Attrition Expat Talent Quality Workforce Organizational Structure Compensation Incentives
?
? ?
?
? ? ?
Job Knowledge Customer Service Interpersonal Skills Teamwork Adaptability Action oriented personality Integrity
Behavioural - Etiquettes - Courtesy - Business Communication Functional Food, Restaurants, Hotels and Hospitality - Bar Tending - Restaurant management - Culinary skills -Food preparation and safety Leadership and Chain Management Hotel and Restaurant Health and Safety Skill Based - Multiple skills - Cross training - Skill training
?
? ?
•
Every Employee of TAJ would be an important member of TAJ family Taj Family would always strive to attract, reward and retain the best talent in the industry Taj Family would commit itself to formal communication channel and foster transparency.
•
•
TAJ People Philosophy
•
Covers all the people practices of the group
In line with Tata Business Excellence model Three major areas: - Work systems and Processes - Learning & Development - Employee welfare
•
•
Business Strategy
Assessment
Business Unit Goals & Objectives
Periodic Reviews
Functional Goals & Objectives
Annual Work Plan
•
Individual Performance linked with Group’s overall strategy Enhancing individual and Enterprise performance Performance measured against a set of predefined targets and variances identified Implemented even at the lowest level of hierarchy Includes Employee Satisfaction Tracking System
•
•
•
•
•
Financial and Operational Results
Customer Satisfaction results Employee Satisfaction Entrepreneurial and Leadership dimensions
•
•
•
Inputs from SPP,SBUs, BSC, Stakeholder’s Expectations
Action Plan for SBUs Functional Level Goals
Individual KRAs
Enablement
Mid Year Review Annual Appraisal
PERFORMANCE Exceptional 1 .Superior TRAINEE 2 . Candidate for Growth 4. Seasoned Professional Fully Performing 3. Stretch Candidate 5. Candidate for Challenge Partially Contributing 6. Needs Careful Watching 8. Needs Close Watching
GROWTH
MASTERY
7 . Potential 9 . Plan for Seasoning Separation Rotate Lower
Annual Appraisal
Rewards and Recognition
Training Needs Identified
Compilation at Units Review and Analysis Of Feedback Training Calendar
High Performers Identified
L & D Opportunities
Feedback System
•
Strong measures to weed out underperformers 360 degree feedback system Evaluate performance of all top officials Evaluation done by immediate subordinates Followed by personal interviews and counselling sessions
•
•
•
•
An Ecotel hotel The first hotel in Asia which is environmental friendly. Only ecotel hotel that has been certified ISO14001. The only 5-star hotel of the kamats.
? ? ?
ENVIRONMENT TEAM SPIRIT JOB PERFORMANCE
The orchid, Asia's first 5 star ecotel hotel, is committed to enhancing the guest ,experience while setting a new standard of environmental responsibility ,by conserving natural resources, educating, enlightening and motivating our staff, and cultivating community relationship.
Orchid Hotel
Gadh
Vits
Concept Hospitality
Resturants
FnB
orchid
Front office
Support function
?
Strategically located near the airport. Being the one of the few ecotel hotels, is has successfully attracted the foreign nationals. The customer service by their front line staff.
?
?
Started with the incentive scheme in 2003-04 ? The management decides how much of revenue earned is to be given as incentives. ? A 5-point rating system ? Competency based. ? Mainly for the executives senior level.
?
Incentive scheme has four parameters: ? A Set amount-which everyone gets and is divided and given equally grade wise ? Achievement of the GOP (gross operating profit) ? Loyalty to the organisation . ? Mystery audit
?
The PMS is at very nascent stage at Orchid. ? 19 competencies for rating identified ? Team based appraisals. ? Equal remuneration leads to free riders. ? This is for the executives posts only and haven’t been developed for the non executive cadre
?
?
MBR’S and goals linked to the budget Only once an appraisal is done Feedback on informal basis
?
?
?
No performance evaluation.
final appraisals (once a year)
Goal setting exercises (MBR’S)
Mid year reviews (very poor feedback system)
Competency gaps are listed out ? For coaching they follow the D1-D4 model. ? When a new employee joins the hotel he is given 3-4 tasks randomly and his multitasking is seen. ? After this he is assigned a particular task seeing his competencies. ? The HR and the HOD sits together for the career planning of the subordinates.
?
KRA’S not yet linked to the competencies. ? No differentiation of the A,B,C players. ? Do not have efficient training and development programs. ? The career development path is also not very well sketched. ? Social loafing present due to improper team appraisals.
?
Key Learning's
?
? ? ?
?
PMS should be both a team based and an individual based exercise. Rigidity prevails in PMS practices in Indian Hospitality As the industry grows so will the demand for experts and need for companies to retain them. The final objective of the PMS should be to enrich the working atmosphere and morale. Individual, Team, and Organization development and growth. If PMS is built to check attrition then there is a high possibility that a large number of free-riders will be onboard.
doc_713335138.ppt