project report on performance appraisal system and effectiveness in flora hotel cochin

“A PROJECT REPORT ON PERFORMANCE APPRAISAL

SYSTEM AND ITS EFFECTIVENESS IN FLORA HOTEL,

COCHIN”

A Dissertation Report

Submitted in partial fulfillment of the requirement for the

Award

Of the degree in

Bachelor of Business Administration

MAHATMA GANDHI UNIVERSITY, KOTTAYAM, KERALA.

Under the Guidance of

Mr. AHAMMED JIMSHAD K

Submitted by

P. S. NEEMISH

REG NO- 12118369

DEPARTMENT OF BUSINESS ADMINISTRATION

M E S COLLEGE, MARAMPALLY

(2012-2015)

DECLARATION

I P. S. NEEMISH BBA student of MES College Marampally do hereby declare

that the project work entitle “PERFORMANCE APPRAISAL SYSTEM AND

ITS EFFECTIVENESS IN FLORA HOTEL, COCHIN” submitted to the

MAHATMA GANDHI UNIVERSITY in partial fulfilment of the requirements

for the award of the degree of Bachelor of Business Administration.

I further declare that this work is not partially or wholly submitted for any

purpose and that the date include in the report are collected from various sources,

and true to my knowledge.

P.S.NEEMISH

Marampally REG NO: 12118369

ACKNOWLEDGEMENT

This project has been made possible by the co-operative and suggestion of many

people to whom I would like to express my great sense of gratitude and profound

thanks.

I also extend my sincere gratitude to Dr Sopna V Muhammad(HOD), faculty,

MES College Marampally Aluva. Whose advice and guidance helped me in the

success of this work.

I am highly indebted to Mr. AHAMMED JIMSHAD K for their valuable

guidance and suggestions for the fulfillment of my project.

I can’t express in words in words my deep gratitude to the Employees of Flora

Hotels Cochin. And to my respondents who had provided the data which I needed

for my project work.

It is my great pleasure to express my deep sense of gratitude to our facilities of the

MES College for their constant encouragement and support during the entire project

work.

I express my heartfelt thanks to Dr. A. Biju, Principal, MES College marampally.

I am also expressing my deep gratitude to my friends and family who helped me

out and gave me good suggestions for my work.

Marampally P.S.NEEMISH

CONTENT

CHAPTER TITLE PAGE

NO NO:

: INTRODUCTION

GENERAL INTRODUCTION 2

STATEMENT OF THE PROBLEM 4

SCOPE OF THE STUDY 5

OBJECTIVES 6

LIMITATIONS OF THE STUDY 7

PROFILE HISTORY

INTRODUCTION TO THE HOTEL INDUSTRY 9

COMPANY PROFILE 16

REVIEW OF LITERATURE 28

RESEARCH

RESEARCH METHODOLOGY 45

SOURCES OF DATA 47

FLORA HOTEL APPRAISAL SYSTEM 50

DATA ANALYSIS AND INTERPRETATION 51-68

FINDINGS, SUGGESTIONS AND CONCLUSION 69-72

BIBLIOGRAPHY AND ANNEXTURE 73-77

LIST OF GRAPHS

GRAPH TITLE PAGE

NO NO:

: 1.1 Figure showing Genderwise Classification of Respondents 52

1.2 Figure showing Age Wise Classification of Respondents 53

1.3 Figure showing Experience Wise Classification of Respondents 54

1.4 Figure showing Department Wise Classification of Respondents 56

1.5 Figure showing Qualification Wise Classification of Respondents 57

1.6 Figure showing Which person evaluates the performance 58

1.7 Figure showing Performance Appraisal is improving Employee

Motivation and Job Satisfaction 59

1.8 Figure showing Meeting in the beginning to explain & clarify

Activity task & goals to be achieved 60

1.9 Figure showing Organization have a fixed duration for

Performance Appraisal 61

1.10 Figure showing Performance Appraisal System is able to

improve Performance 62

1.11 Figure showing Performance Appraisal System will contribute

in identifying Potential Traits 63

1.12 Figure showing Promotion process in the organization is based on 64

1.13 Figure showing Performance Appraisal System is Transparent

& Free from bias 65

1.14 Figure showing Satisfaction with current Performance Appraisal 66

1.15 Figure showing Providing opportunity for growth and development 67

1.16 Figure showing Helping to identify your strength and weakness 68

LIST OF TABLES

TABLE TITLE PAGE

NO NO:

: 1.1 Genderwise Classification of Respondents 52

1.2 Age Wise Classification of Respondents 53

1.3 Experience Wise Classification of Respondents 54

1.4 Department Wise Classification of Respondents 55

1.5 Qualification Wise Classification of Respondents 57

1.6 Which person evaluates the Performance 58

1.7 Performance Appraisal is improving Employee Motivation

and Job Satisfaction 59

1.8 Meeting in the beginning to explain & clarify activity task & goals

to be achieved 60

1.9 Organization have a fixed duration for Performance Appraisal 61

1.10 Performance Appraisal System is able to improve Performance 62

1.11 Performance Appraisal System will contribute in identifying

Potential Traits 63

1.12 Promotion process in the organization is based on 64

1.13 Performance Appraisal System is Transparent & Free from bias 65

1.14 Satisfaction with the current Performance Appraisal 66

1.15 Providing opportunity for growth and development 67

1.16 Helping to identify your strength and weakness 68

1

CHAPTER 1

INTRODUCTION

2

GENERAL INTRODUCTION

The performance appraisal is the process of obtaining, analyzing and recording

information about the relative worth of an employee. The focus of the

performance appraisal is measuring and improving the actual performance of the

employee and also the future potential of the employee. Its aim is to measure

what an employee does.

Performance appraisals are regular reviews of employee performance within

organizations. Generally, the aims of a performance appraisal are too:

Give feedback on performance to employees.

Identify employee training needs.

Document criteria used to allocate organizational rewards.

Form a basis for personnel decisions: salary increases, promotions,

disciplinary actions, etc.

Provide the opportunity for organizational diagnosis and development.

Facilitate communication between employee and administration

It is a powerful tool to calibrate, refine and reward the performance of the

employee. It helps to analyze his achievements and evaluate his contribution

towards the achievements of the overall organizational goals. By focusing the

attention on performance, performance appraisal goes to the heart of personnel

management and reflects the management's interest in the progress of the

employees.

http://en.wikipedia.org/wiki/Document

http://en.wikipedia.org/wiki/Reward

http://en.wikipedia.org/wiki/Salary

http://en.wikipedia.org/wiki/Promotion_%28rank%29

http://en.wikipedia.org/wiki/Discipline

3

People differ in their abilities and their aptitudes. There is always some

difference between the quality and quantity of the same work on the same job

being done by two different people. Therefore, performance management and

performance appraisal is necessary to understand each employee's abilities,

competencies and relative merit and worth to the organization.

Performance appraisal rates the employees in terms of their performance.

Performance appraisal takes into account the past performance of the employees

and focuses on the improvement of the future performance of the employees.

The study on Performance Appraisal of employees was carried out at” FLORA

HOTELS COCHIN”. The main aim of the study was to explore the method

which is followed and effectiveness of the employees.

The primary data required for the study were collected through structured

questionnaire, personal interviews and informal talks. The second data was from

the company manuals and the website of the company. The data were analyzed

and the findings were arrived at the basis of which suggestions are made.

4

STATEMENT OF THE PROBLEM

Today’s working climate demands a great deal of commitment and effort from

employees, who in turn naturally expect a great deal more from their employers.

Performance appraisal is designed to maximize effectiveness by bringing

participation to a more individual level in that it provides a forum for consultation

about standards of work, potential, aspirations and concerns. It is an opportunity

for employees to have significantly greater influence upon the quality of their

working lives. In these times of emphasis on “quality”, there is a natural equation:

better quality goods and services from employees who enjoy better quality “goods

and services” from their employers.

Performance appraisal is a process of assessing, summarizing and developing the

work performance of an employee. In order to be effective and constructive, the

performance manager should make every effort to obtain as much objective

information about the employee's performance as possible. Low performance can

push the organization back in today’s tough competition scenario. The project is

aimed at analyzing the performance appraisal in FLORA HOTELS COCHIN.

5

SCOPE OF THE STUDY

The study covers employees of Flora Hotel Cochin.

A survey was conducted for information about the performance appraisal

system that was used in the company.

The study focuses on type, effectiveness and employee attitude of the

appraisal system.

To help management plan future development and growth.

The sample size of 50 employees was selected at random from all

departments.

6

OBJECTIVES

Identification of the technique of performance appraisal in Flora Hotels.

Employee attitude towards the present appraisal system.

To identify the effectiveness of performance appraisal system for

employees.

Identifying performance appraisal leading to the discovery of unfound

talents amongst the employees.

To provide suggestions and recommendations to improve the performance

appraisal effectiveness

7

LIMITATIONS OF THE STUDY

The Company’s policy of not disclosing some data and information

for obvious reasons, which would have been very much useful for the

report.

Few employees sometime felt disturbed, as they were busy with their job.

It is difficult to make information based a rich report in a short time of

period.

The sample size was restricted to 50 employees.

The answers given by the respondents highly depend on the mood and

interest and thus the accuracy fluctuates sometimes.

8

CHAPTER 2

PROFILE HISTORY

9

INTRODUCTION TO THE HOTEL INDUSTRY

According to the British laws a hotel is a place where a “bonafide” traveler can

receive food and shelter provided he is in a position to for it and is in a fit

condition to receive.

Hotels have a very long history, but not as we know today, way back in the 6th

century BC, when the first inn in and around the city of London began to

develop. The first catered to travelers and provided them with a mere roof to stay

under. This condition of the inns prevailed for a long time, until the industrial

revolution in England, which brought about new ideas and progress in the

business at inn keeping.

The invention of the steam engine made traveling even more prominent. Which

had to more and more people traveling not only for business, but also for leisure

reasons. This lead to the actual development of the hotel industry as we know it

today.

The hotel today not only cater to the basic needs of the guest like food and

shelter provide much more than that, like personalized service etc.

Hotels today are a “Home away from home”.

CLASSIFICATION OF HOTEL

Hotel can be classified into different categories or classes, based on their

operational criteria. For example the type of accommodation they provide,

location of the property, type of services provided, facilities given and the

clientele they cater to can help categories hotels today.

Hotels today are basically classified into the following categories:

1) Market segment:

• Economy / limited service hotel

• Mid-market hotel

• All suite hotels

• Time-share hotels

• Condotel / Condiminium

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• Executive hotels

• Luxury / Deluxe hotels

Property type:

• Traditional hotel

• Motels

• Bread and breakfast inns

• Commercial hotel

• Chain hotel

• Casino hotel

• Boutique hotels

• Resorts

• Spa’s

• Conference resorts

2) According to size:

• Small hotels [150 rooms]

• Medium hotels [up to 299 rooms]

• Large hotels [up to 600 rooms]

Other classification can be based on:

a) Market segment

b) Property type

c) Size

d) Level of services

e) Ownership and application

f) Plans

11

g) Type of patronage

h) Length of guest stays

i) Location etc…

MARKET SEGMENT

Economy hotel:

It provides efficient sanity private rooms with bath. The furnishing and decor are

acceptable to the majority of travelers. Food and beverage service may or may

not be available.

Mid-market hotels:

They offer comfortable accommodation with private on premises bath. Food and

beverage services and uniformed bell staff. They offer above average luxury.

All Suite hotels:

It offers separate sleeping and living areas along with a kitchenette and a stocked

bar, and offer class service.

First class hotels:

They are luxury hotels with exceptional decor better than average food and

beverage service, uniformed bell services. They often have 2 or 3 dining rooms,

swimming pool, spas etc.

Deluxe hotels:

They are better and offer more specialized services than first class hotels. They

also provide limousine services.

PROPERTY TYPE

Traditional hotels:

They have the basic concept of rooms with breakfast, bell desk services and the

other usual services.

Motels:

They are located on highways. The guest is given parking right outside their

rooms. They usually have a gas station / workshop attached to them.

Resorts:

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They are usually situated in tourist locations like on rivers, mountains, jungles,

or the sea. They give more privilege to sports activities, leisure and re-creation

activities like sightseeing, adventure sports, etc.

Resident hotels:

Where guest stays for longer duration, stay like weeks, months even years.

Casino hotels:

They are hotels, usually in tourist spots and mainly cater to people who are on

holidays. Casino hotels like the name suggest offer gambling facilities along

with accommodations.

SIZE

Small hotel – up to 150 rooms

Medium hotels –150 to 299 rooms

Large hotels – 299 to 600 rooms

Extra large hotels – above 600 rooms

LEVEL OF SERVICES:

World class services:

They target top business executives and provide services that cater to the needs

of such people like laptops in the rooms, business centre and sectarian services.

Mid-range services:

They appeal to the larger segment of traveling public [tourist]. The services

provided by the hotel are moderate and sufficient to budgeted travelers.

Economy / Limited service hotel:

They provide comfortable and inexpensive rooms and meet the basic

requirement of the guest. These hotels may be large of small in size depending

on the kind of business they get. The key factor behind the survival of these

hotels is that they are priced very low and are in the budget of most of the

travelers.

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OWNERSHIP AND AFFILIATION:

Independent hotels:

They have no application with other properties. They have their own

management and are single properties with one owner.

Chain hotels:

They impose certain minimum standards, levels of service, policies and

procedures to be followed by their entire establishment. Chain hotels usually

have corporate offices that monitor all their properties and one management runs

these properties. That is all the hotels under the chain are completely owned and

run by the chain itself.

Franchised hotels:

The franchisee grants the entities, the right to conduct business provided they

follow the established pattern of the franchisee, maintains their standards, levels

of service, practice their policies and procedures.

AWARDING OF CLASS:

Awarding of the class is done by the HRACC in India. These are a few things

listed down that are taken into consideration while awarding star category to any

hotels.

Number and types of rooms the hotel has a vital role in this. The factors which

effects this are as follows.

• Elegant and comfortable surroundings

• Rooms efficiency

• Cleanness and sanitation

• Staff size and specialization

• Range and level of services

• Number of Restaurants

• Bars and Beverage services

• Concierge services

• Accessibility to entertainment

• Availability of transportation

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• Spa and swimming pool facility

• Reservation and referral services.

Star category of hotels [India]

One star [*]

Two star [**]

Three star [***]

Four star [****]

Five star [*****]

Five star deluxe [***** deluxe]

ONE STAR CATEGORIES:

These hotels belong to the no-frills variety that offers basic bedding and

bathroom facilities. The furniture, décor, etc. May not be of high quality, but is

most comfortable. Arrangements for meals may or may not be included, but if

they are, this could be restricted to breakfast only. And remember in one star

hotels you will not have bellboys or hotel staff available for carrying your

luggage.

TWO STAR CATEGORIES:

The extra star here is for a proper reception desk and some amount of staff

presence. Breakfast could be complimentary, but you will need to pay for other

meals. Because of the limited staff, there won’t be room service. Two star hotels

are suitable for people with limited budgets but who are traveling with their

families and need a reasonably safe place to stay.

THREE STAR CATEGORIES:

For a hotel to be recognized as a three star property the architectural features and

general features of the building should be very good there should be adequate

parking facilities. At least 50% of the rooms must be air-conditioned. Also the

ambience and decor of the place must be ecstatic.

They should provide reservation and information facility apart from reception,

information, bell service at least two gourmet dining facility should be available.

15

The establishment may or may not have banqueting facility. They should

provide high levels of personalized services. The staff must be well-trained and

proper standards of hygiene and sanitation must be followed. Also, all properties

have to keep in mind that proper waste management is done.

FOUR STAR CATEGORIES

The premium variety of hotels starts from here. You can expect larger rooms,

better décor, more amenities, better services like availability of porters, 24-hour

room service, laundry, and multi-cuisine restaurants. Four star hotels are mostly

used by corporate travelers where the company pays for the stay.

FIVE STAR CATEGORIES:

Five star category, is only allotted to properties, which have all the qualities of a

three star property and a few additional. Like the entire property must be

centrally air- conditioned. The building on the property must be an attractive

one. All the rooms must be spaced. The property must have a proper banqueting

facility, business centre.

Proper and well-maintained pool and health club a spa is optional. The property

must have 24 hour coffee shop, round the clock room service, a bar, and a

minimum of 1 gourmet restaurant.

FIVE STAR DELUXE CATEGORIES:

Called deluxe/ luxury hotels, these cater to the movers and shakers of the world.

A private balcony, fully stocked mini bar, personal masseur, king-sized beds –

these are just some of the rare luxuries you can treat yourself to at a five star

deluxe hotel. The most well-known brands belonging to this category include the

Taj, Hilton, Leela Palace, Grand Hyatt, etc to name a few. Needless to add, the

tariffs are exorbitant. Nowadays there are some that claim to be seven-star

hotels. The Burj Al Arab Hotel in Dubai is one such super deluxe hotel. The 54-

Storeyed beach-side hotel boasts of ferrying its customers in Rolls Royce cars,

having royal suites with revolving canopy beds, private mosques, transporting

guests to the airport by helicopter and lots more.

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COMPANY PROFILE

At Flora Airport Hotel Kochi, your business and leisure needs are our priority.

To ensure you have the best possible experience, at the heart of their hospitality

ethos is their attention to detail, service quality and guest convenience.

They offer an exclusive location providing all the luxurious trappings of a four

star hotel experience, where hospitality is defined by the Flora Group Hotels

promise of Pure Value, Pure Quality, Pure Service, Friendly and courteous staff

is committed to making stay as comfortable and rewarding as possible at Flora

Group Hotels. Are more than just visitors are our esteemed guest.

Flora Group Hotels are created to be your home away from home. Hotels have a

very family oriented environment with no entertainment venues or bars. Hotels

are the ideal choice for both, business travelers and holidaymakers, where they

can safely enjoy a superior range of facilities and services. What‘s more, the

convenient locations of our hotels near the shopping and tourist area ensure a

wonderful time for family members to enjoy the sights and sounds of the city.

17

Flora Group Hotel of unique hotels and hotel apartments that redefine

luxury delighting guests with unparalleled experiences at every location. We

work hand to ensure that guests enjoy superlative service in keeping with our

values.

VISION OF THE HOTEL

The sky is the limit for us. We recognize and act on hospitality opportunities and

continue to develop and manage world class hotels and hotel apartments that

define the category. The group aims to deliver value, excellence and a sense of

pride to its associates, guests, investors and owners.

MISSION OF THE HOTEL

Mission is to completely delight and satisfy our guests, always exceeding their

expectations in a family oriented environment. We are committed to making a

difference every day; continually getting better to keep us ahead and help us

raise the bar when it comes to service standards.

VALUES OF THE HOTEL

Integrity

Professionalism

Commitment

Developing outstanding people

Passion

Teamwork

Appreciation & respect for all

Safety & respect for the environment

18

PROFILE OF THE HOTELS

Name of the Hotel : FLORA AIRPORT HOTEL

Year of established : 2008 (24/08/2008)

Type of Hotel : 4 Star Hotels

Group : Opp. Cochin International

Airport, Nedumbassery

Telephone : +91 484 261 1520,21,22

Fax : +91 484261 1524

Email : [email protected]

Web : www.florahotelsindia.com

Transport : Airport-100 meters

Railway station-

Always Railway Station - l4km

Angamaly Railway Station- 12km

Accommodation : 60 Guest rooms

Location : Nedumbassery, Cochin

19

GREAT LOCATION

Their location is one of the key features. It is located 100 meters from Cochin

International Airport, close to the business district of Kochi, cultural capital of

Thrissur and in close proximity to the approach route to Munnar Hill Station.

100 meters from Cochin International Airport.

02 km to the 18 Hole CIAL Golf Course.

01 km to the CIAL Trade and Exhibition Centre.

Conveniently connected to the highways, railway stations and major

tourist destinations in Kerala.

Luxury Living and Home Away From Home

The hotel offers 60 centrally air-conditioned rooms and suites featuring

modern interiors and furnishings. Each elegant room is ideal for the corporate

travelers and families alike. The rooms are fitted with LCD Television with

Satellite Channels, High Speed Wi-Fi Internet Connectivity, Work Desk, Direct

Dial Telephone, Electronic Safe Deposit Box, well stocked Mini Refrigerator,

Tea/Coffee Maker and En Suite Bathroom.

ROOMS

Deluxe king - 20 Rooms.

Deluxe twin - 27 Rooms.

Executive club - 07 Rooms.

Business suite - 01 Rooms.

Flora suite - 04 Rooms.

Presidential suite- 01 Room.

20

FACILITES AND SERVICES

This hotel ensures that every facility that the guests desire are always

available for their ultimate comfort.

General:

24-Hour Front Desk, Air Conditioning, Breakfast Buffet, Designated Smoking

Area, Elevator. Express Check-In/checkout, Family Rooms, Luggage Storage,

Newspapers, Non-Smoking Rooms, Restaurant, Rooms/Facilities for Disabled

Guests, Safety Deposit Box, Snack Bar, Soundproofed Rooms, Coffee Shop, Spa

& Wellness Centre, Fitness Centre and Rooftop Swimming Pool.

Services:

Airport Shuttle, Babysitting/Child Services, Breakfast in the Room, Business

Centre, Secretarial Services, 24 hrs Concierge Service Dry Cleaning,

Fax/Photocopying, Ironing Service, Laundry, Valet Laundry, Meeting/Banquet

Facilities, Private Check-in/out, Room Service, Shoe Shine, Airport Shuttle

Service, Souvenirs/Gift Shop, 24hrs Security, Spa Treatments and Massages,

Doctor on call, Laptop Rental (on request).

Internet

High speed WI-Fi internet is available (charges are applicable). Business centre

internet is available.

Guest Parking

Private parking is possible on site (reservation is not needed) and is free of

charge.

Activities:

Golf Course (within 3 km)

21

FOOD AND BEVERAGE EXPERIENCE

Blue Bell Multi-Cuisine Restaurant

A delightful multi cuisine restaurant serving throughout the day offers both the

option of buffet as well as A la carte menu.

Peppermint Café

At peppermint cafe they offer fast food including Arabic, Chinese, Italian, and

Indian specialties with a wide range of ice cream flavors, pastries, Juices, Mock

tails and hot beverages which includes tea and varieties of coffees.

Dedicated banqueting team providing business support Meeting facilities in the hotel includes 2 Boardrooms with video conferencing

arrangements and state of the art equipment’s, Ideal for a perfect business

meeting. The banquet hall has a capacity of 1200 pax with theme lighting and

live internet streaming.

Why Choose Flora Airport Hotel Meetings And Event Space?

State of the an equipment

Drop down screens, LCD projectors, data ports, laptop rentals

Wi-Fi and high speed internet

Video conferencing facilities

Natural Daylight in all meeting rooms

Balcony space attached to meeting rooms

Dedicated banqueting team providing business support

1. Boardroom

Dahlia

Maple

Iris

Orchid

2. Banquet Hall

Pearl

Poolside

Daffodils

3. Ball room 4. Interview Room

Mehfill Tulips

22

HEALTH AND LEISURE

Serenity Spa:

The Serenity Spa and Wellness Centre Dubai, hosts Flora Airport Hotels Spa,

fitness and recreational facilities. Indulge and pamper yourself in our outdoor

swimming pool, sauna and steam room facilities. To relax or for something a

little more energetic, choose from the Serenity Spa’s:

Spa treatments, therapies and massage

State of art gymnasium

Outdoor swimming pool with baby pool

Whirlpool facilities, sauna and steam rooms.

Male and female changing facilities and locker rooms.

Health Club

The Flora Kochi Airport hotel boasts advanced cardio equipments and a wide

variety of free weights with an array of the latest in strength training equipment.

23

ORGANIZATION STRUCTURE

VARIOUS DEPARTMENTS IN THE HOTEL

Front Office

The front office department is headed by the front office duty manager (FOM)

whose main duty is to enhance guest services by constantly developing services

to meet guest’s needs. This font-of-the house terms includes those portions of the

hotel with which the guests come in direct contact with during the period of their

stay in the hotel, such as building exterior, lobby, front desk, guest rooms,

function rooms etc.

CMD

RD

SALES

OM

HUMAN

RESOURCES

FINANCE ENGINEER FRONT

OFFICE PRODUCTION HOUSE

KEEPING

SERVICE

Duty Mgr.

FO EX.

FO Asst.

Drivers

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House Keeping

The housekeeping department requires the following information from the

front desk: Check-in, occupied and check out rooms in order to organize room

cleaning. Special requests from guests, such as baby cot or extra blanket, etc. So

that extra amenities and services can be provided to guests.

In return, the housekeeping department will provide the actual room status

to the front desk for comparison with the computer record which ensures that the

front desk has the correct room status. Any discrepancy found will be double

checked by the Assistant Manager.

Food and Beverage

The food and beverage (F&B) department provides food and beverage services

to the hotel guests and visitors through a variety of outlets and facilities/services.

Examples include coffee shop, restaurants, banquet service and room service

(also called in-room dining).

Ex.Hk.

HK Sup.

HK Asst.

Asst. F&B Mgr.

F&B Ex.

Captains

F&B Asst.

Ex. Chef

Sous Chef

CDP

DCDP

Commi. Asst.

25

Sales and Marketing

The main functions of the sales and marketing department involve generating

new business for the hotel, coordinating advertising, as well as sales promotions

and public relations activities aiming at enhancing the hotel’s image.

Human Resources

The human resources (personnel and training) department is responsible for

hiring, orientation, training, wages and benefit administration, labor relations,

employee relations and staff development.

Sales Mgr.

Sales EX.

Sales Cord.

HRM

HR Ex.

HR Asst.

Security

26

Engineering

The engineering department is responsible for maintaining the physical plant of

the hotel such as electricity, plumbing, air conditioning, heating and elevator

systems; and for overseeing all mechanical and technical conditions of the hotel.

They are also responsible for the project working of sewage treatment plant also.

Accounting

The accounts department is headed by the financial manager who, as a key

member of the management team, can guide the hotel to an increasing

profitability through better control and asset management. In addition, this

department is responsible for monitoring all of the financial activities of a hotel.

Examples include overseeing accounts receivable, accounts payable, payroll, and

cost control systems of the hotel; keeping records of assets, liabilities and

financial transaction of the hotel; preparing the monthly profit-and-loss

statement, coordinating with purchasing department and information technology

department and handling guest's inquiries about billing.

Chief Engineer

Supervisor

Technicians

FM

Sr. Acct Ex

Ex. Acct

Security

Store Asst.

27

Information Technology

Their IT department is a service and support oriented. They continually update

their knowledge and skills base to keep pace with the fast moving and

enhancements in technology.

Their main function is as follows.

IT audits

Application support

Disaster recovery

Mobile/telephone support

Server management

Web support

Security

Security is an important concern in every hotel. The security department is

responsible for implementing procedures which aim at protecting the safety and

security of hotel guests, Visitors, hotel employees and the hotel itself. Examples

include monitoring surveillance equipment’s, patrolling the hotel premises and

maintaining alarm systems.

28

REVIEW OF LITERAUTURE

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human Resource (or personnel) management, in the sense of getting things done

through people, is an essential part of every manager's responsibility, but many

organizations find advantages to establish a specialist division to provide an

expert service dedicated to ensuring that the human function is performed

efficiently.

"People are most valuable asset" which no member of any senior management

team would disagree with. Yet, the reality for many organizations is that their

people remain undervalued, under trained and underutilized.

The market place for talented, skilled people is competitive and expensive.

Taking on new staff can be disrupted to existing employees. Also, it takes time

to develop 'cultural awareness', product / process / organizational knowledge and

experience for the new staff members.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource Management that are

essential for the effective functioning of the organization.

1. Recruitment

2. Selection

3. Induction

4. Performance appraisal

5. Training and Development

Recruitment

The process of recruitment begins after manpower requirement is determined in

terms of quality through job analysis and quantity through forecasting and

planning.

29

Selection

The selection is the process of ascertaining whether or not candidates possess the

requisite qualification, training and experience required.

Induction

Induction is the technique by which a new employee is to rehabilitate into the

changes surrounding and introduced to the practices, policies and purposes of the

organization.

WHAT IS "PERFORMANCE APPRAISAL"?

Performance appraisal is defined as the process of assessing the performance and

progress of an employee or a group of employees on a given job and his / their

potential for the future development. It consists of all procedure used in working

organization and potential of employees.

Performance appraisal means systematic evaluation of the personality and

performance of each employees by his superior or some other persons trained in

the technique of merit rating. It employs various ratings technique for comparing

individual employees in a work group, in terms of personnel qualities or

deficiencies and the requirements of their respective jobs.

DEFINITION

According to Dale Yoder, "Performance appraisal includes all formal

procedure used to evaluate personalities and contributions and potential of

group members in a working organization. It is a continuous process to

secure information's necessary for making corrections and objective

decisions of employees".

According to Flippo, "Performance appraisal is the systematic, period and

an importance rating of an employee's excellence in matters pertaining to

his present job and his potential for a better job".

30

CHARACTERISTICS

✓ Performance appraisal is a process.

✓ It is the systematic examination of the strength and weakness of employees

during the term of his job.

✓ It is a scientific and objective study. Formal procedure is used in the study.

✓ It is an ongoing and continuous process wherein the evaluations are arranged

periodically according to a definite plan.

✓ The main purpose of performance appraisal is to ensure information necessary

for making objectives and correct decision an employee.

PROCESS

The process of performance appraisal:

✓ Establishing performance standards

✓ Communicating the standards

✓ Measuring performance

✓ Comparing the actual with the standards

✓ Discussing the appraisal

✓ Talking corrective action

PURPOSES OF PERFORMANCE APPRAISAL

The objective of performance appraisal falls into two categories:

1. ADMINISTRATIVE

2. SELF IMPROVEMENT

31

ADMINISTRATIVE OBJECTIVES

Promotion: This is perhaps the most important administrative use of

performance appraisal. It is the common interests of both the management and

employees to promote employees into a position where they can most effectively

utilize their abilities. A properly developed and administrated performance

appraisal system can aid in determining whether individuals should be

considered for promotion. The system must rate, the rate for the present job and

his potentialities for the higher job.

Transfer: In an organization, it may be necessary to consider various types of

personnel actions such as transfer, layoffs, demotions, and discharged. In some

cases, such actions are called for because of unsatisfactory performance while in

other cases it may be called for due to economic conditions over which the

organization has no control because of changes in the production process. Such

actions can be justified if they are based on performance appraisal.

Wages and Salary Administration: In some cases, the wage increases are based

on the performance appraisal reports. In some cases, appraisal and seniority are

used in combination.

Training and Development: An appropriate system of performance appraisal can

be helpful in identifying the areas of skills or knowledge in which certain

employees are not up to par, thus pointing out general training deficiencies

which presumably should be corrected by additional training, discussions, or

counseling.

Personnel Research: Performance appraisal helps in search in the field of

personnel management. Various theories in human relationship are the outcome

of the efforts to find out the cause and effect relationship between the personnel

and their performance.

32

SELF IMPROVEMENT

The performance appraisals bring out the deficiencies and the shortcoming of the

employees. A discussion between the boss and the subordinates conducted in a

spirit of co-operation and mutual understanding gives the chances to employee to

have an insight on his performance in the general set up of the organization.

Performance appraisal helps human resource development in another way also.

A promotion minded individual can ask for the target program for a position he

seeks and use the information given by performance appraisal to prepare him for

the job and enhance his candidacy.

Performance appraisal also helps to spot out a person's ability to see an

organizational problem, devise ways of attacking it, translate his ideas into

action, and incorporate new information as it arises and carry his plan through

the result. It should be noted that the best predictor of future success as a

manager is past success in managerial duties. The appraisal program asks the

rater to look at the record of managerial success, not the manager's personality.

IMPORTANT RESONS OR BENEFITS OF PERFORMANCE

APPRAISAL

A good system of performance of performance appraisal helps the superior to

evaluate the performance of his employees systematically and periodically. It

also helps him to assign that work to individuals for which they are best suited.

Performance rating helps in guiding and correction, superior may use the result

of rating for the purpose of constructively guiding in the efficient performance of

the work.

The ability of the staff is recognized and can be adequately rewarded by giving

them special increments

Ratings can be used to evaluate the effectiveness of training programs.

Weaknesses of employees are revealed by merit rating and the training program

can be modified accordingly.

Performance appraisal provides an incentive for the employees to better their

performance in aid to improve their rating over others.

Performance appraisal can be used as a basis of sound personnel policy in

relation to transfer and promotion. If the performance of an employee is better

than others, he can be recommended for promotion, but if a person is not doing

well on a job, he may he transferred to some other job.

33

Systematic appraisal will prevent grievances and develop confident amongst the

employees if they are convinced of the impartial basis of evaluation. The records

of merit rating are available in permanent form to protect the management

against subsequent charges discrimination which might be leveled by the trade

union leaders.

Performance appraisal has a beneficial effect on both the persons doing the

appraisal and being appraised. The appraisal brings prominently to the attention

of superiors or executives the importance of knowing their subordinates as a

human resource. The necessity of performance appraisal leads the appraiser to a

thoughtful analysis of people rated and tends to make him more alive with

opportunities and responsibilities in developing the subordinates.

LIMITATIONS OF PERFORMANCE APPRAISAL

Performance appraisal may not yield the desired results because of the following

deficiencies:

If the factors included in the assessment are irrelevant, the result of merit rating

will not be accurate.

Different qualities to be rated may not be given proper weight, age certain in

cases.

Some of the factors are highly subjected like the initiative and personality of the

employees, so the actual rating may not be on scientific lines.

Supervisors often do not have the critical ability in assessing the staff.

Something, they are guided by their personal emotions and likes. So the ratings

are likely to be biased.

34

METHODS OF PERFORMANCE APPRAISAL

There are various methods of merit rating, which may be classified into:

• Traditional methods and

• Modern methods

The methods differ for various obvious reasons.

First, they differ in the source of traits or qualities to be rated. The qualities may

differ due to differences in job requirements, statistical requirements and opinion

of the management. For instant, 'corporation' may not be considered at all

necessary by the management. Then, it is difficult also to reliable rate such

factors as co-operation.

Second, they differ with respect to the coverage who is being rated.

Third, variations may be caused due to the degree of precision attempted in the

evaluation.

Finally, may differ with respect to the methods used to obtain Weight age for the

various traits.

As far as practicable, merit rating should be a continuous process and made at

regular intervals. Any good method of merit rating should assess the following

personal qualities of the employees:

I. Knowledge of work

II. Ability to do the work

III. Quality and quantity of output

IV. Personal qualities like dependability, adaptability, initiative, etc.

V. Special qualities like confidence, leadership, etc.

35

TRADITIONAL METHOD

Traditional methods are very old technique of performance appraisal. They are

based on trait- oriented appraisal. Evaluation of employee is made on this basis

of standards of personal traits or qualities such as attitudes, judgment, versatility,

initiative, dependability, leadership, loyalty, punctuality, knowledge of the job,

etc.

There are seven traditional methods of appraisal

Performance Appraisal

TRADITIONAL METHODS MODERN

METHODS

1. Unstructured Appraisal 1. Management by

Objectives

2. Employee Ranking Rating 2. Behavioral Anchored

3. Forced distribution Rating Scales

4. Graphic- rating scales 3. 3600 Appraisal

5. Check- lists

6. Critical incidents

7. Field review

Fig.1

36

Unstructured appraisal

Under this, the appraiser is required to write down his impression about the

person being appraised in an unstructured way. However, in some organization,

comments are required to be grouped under specific heading such as quality of

job performance.

Reasons for specific job behaviors, personality traits, and development needs.

This system highly subjective and has got its merit in its simplicity and is still in

use especially in the small firm.

Ranking methods

Ranking is a simple process of placing employees in a rank according to their

job performance. It permits comparison of all employees in any single rating

group, regardless of the type of work. All workers are judged on the same factors

and they are rated on the overall basis with reference to their jot, performance

instead of individual assessment of traits.

Paired comparison is an improvement over simple ranking. Under this, every

employee in a job family is compared with every other employee to determine

which the better worker is.

Forced Distribution Methods

The forced distribution system is devised to force the appraiser to fit the

employees being appraised into predetermined ranges of scale. It has an

advantage over the paired comparison system in that two or more employees can

be divided into five point’s scale of outstanding, above average, below average

and poor.

This method obviously eliminates the room for subjective judgment on the part

of supervisors. Besides this, the system is easy to understand and administer. The

objective of this technique is to spread out ratings in the form of a normal

distribution which is open to criticism. Many times, categories are not found in

Workgroup, particularly when the size of the group is comparatively smaller. As

a matter of fact, forced distribution of rankings is feasible for a large group.

37

Graphic Rating Scale

Under this method, scales are established for a number of specific factors and

qualities. Five degrees are established for each factor and general definition

appears at points along the scale. Generally, the rater is supplied with a printed

form, one for each person to be rated. The selection of factors to be measured on

the graphical rating scales is an important point under this system. These are two

types:

I. Characteristics, such as initiatives and dependability.

II. Contributions, such as quantity and quality of work.

Graphic scales impose a heavy burden upon the supervisor. He must report and

evaluate the performance of his subordinates on a scale involving as many as

five degrees on perhaps ten different factors, the main drawback of this system

that the rater may be biased. However, one means of ensuring that the rater has

based his scoring upon substantial evidence is to leave space on the form after

each factor and required him to explain the reason for his rating.

Checklist

It also consists of two techniques:

a. Weighted checklist

b. Forced choice

Weighted check list

Under this method, various statements are prepared in such a manner that they

describe various types and levels of behavior for a particular job. Each statement

is attached with a scale value. At the time of rating the employees, the superior

just collects and checks all the statements. After the weight or values are

attached to the individual traits, the rating up to this level is gathered on the

rating sheet. Then the weights are averaged and employee is evaluated.

The weighted checklist should be prepared by the persons thoroughly acquainted

with job and perfect in preparing and weighting statements. When this process is

over, rating is placed on separated cards. Then these cards are sorted by raters by

who actually observed the accomplishment of the work.

38

Forced choice

This method is used particularly with the objective of avoiding scope for

personal prejudices. Under this method, they are forced to choose between

descriptive statements of seemingly equal worth describing the person in

question. Statements are chosen both the side favorable as well as unfavorable.

For example: the following two pairs of statements may be given to the rater and

the may be asked to select one statement from each pair that is represented by

superiors.

❖ Gives clear instruction to his subordinates.

❖ Can be dependable upon to complete any job assigned.

❖ Makes promises that he knows he cannot keep.

❖ Shows favoritism to some employees.

The rater may feel that either of the two statements in a pair is applicable, but he

must select the one that is more descriptive. Only one of the statements in each

pair is correct in identifying the better performance and his scoring key secret

from the rafter. In this bias is removed from the appraisal process.

Forced choice method is also not free from drawbacks.

❖ It is very expensive to install the system

❖ The procedure involved is very lengthy and hence more time consuming

❖ It is difficult for a superior to discuss rating switch subordinates because the

item is scored by the personnel department.

Critical incident methods

A critical incident means a significant act by an employee exceeding or failing

any of the requirements of his job. The method requires every supervisor to

record all such significant incidents in each employee's behavior which indicate

effective or successful action and those which indicate ineffective or poor

behavior. These are recorded in a specially designed notebook which contain

categories or characteristics under which various behaviors can be recorded.

39

Under the critical incident methods, the supervisor is supposed to retain from

passing overall judgment and concentrate upon discussing facts as he sees them.

Theoretically, this should provide a sound and an objective basis for appraisal of

the performance of an employee. Strictly speaking, the critical incident methods

are not a rating method as it requires the supervisor to pay close attention to what

an employee is doing.

This method suffers from the defect that outstanding incident happens so

frequently that an individual appraisal may not vary markedly between any two

time periods. It has been observed that most of the time the employees have

neither positive nor negative incident. If the critical event does not happen, it

will be difficult to rate an employee.

Field review method

Under this method, the supervisors are interviewed by an expert from the

personnel department. The expert questions the supervisor to obtain all the

pertinent information on each employee and takes notes in his book. Thus, there

is no rating from with factors or a degree, but overall ratings are obtained. The

workers are usually classified into three categories as outstanding, satisfactory,

and unsatisfactory.

CRITICISM OF TRADITIONAL METHOD

The general criticism of traditional performance appraisal system is that they are

too subjective in nature because all of them are based on personal judgment of

the rater. The personal judgment is always subjected to personal bias or

prejudice as well as pressure from certain other areas. The appraiser may not be

able to judge the competence of the employees because of lack of training.

Because of the judgmental role of the superior under the traditional system,

performance ratings are frequently subjected to a number of errors and

weaknesses which are discussed below.

a) Halo error

b) Central tendency

c) Leniency or strictness

d) Recent behavior bias

e) Miscellaneous bias

40

MODERN APPRAISAL METHODS

There are two important methods of performance appraisal, which are used by

the modern concern. The first is Management by Objectives (MBO) which

represent result oriented appraisal. The second one is Behaviorally- Anchored

Rating Scale (BARS) which is based on rating the behavior of the subordinates

Management by Objective

It was Peter Ducker, who proposed goal setting approach to performance

appraisal, which he called 'Management by Objectives and self control'. This

approach was further strengthened by Douglas McGregor was concerned with

the fact that most traditional appraisal system involved ratings of traits and

personal qualities that he felt were highly unreliable. Besides, the use of such

trait ratings produced two main difficulties.

1. The management was uncomfortable about using them and resisted making an

appraisal.

2. It had a damaging effect on the motivation and development of the

subordinates.

Goal setting approach or "management objectives" is the same as behavioral

approach to subordinate appraisal, actually called work planning and review in

case of General Electric Co, U.S.A under this approach, an employee is not

appraised by his recognizable traits, but by his performance with respect to the

agreed goals or objectives. Thus, the essential feature of this approach is the

mutual establishment of job goals. The application of goal setting approach to

performance involves the following steps:

1. The subordinates discuss his descriptions with his superior and they agree on

the contents of his job and the key result areas.

2. The subordinates prepare a list of reasonable objectives for the coming period

of six to twelve months.

3. He sits with his superior to discuss these target and plans, and a final set is

worked out.

4. Check- points are established for the evaluation of progress, and the ways of

measuring progress are selected.

41

5. The superior and the subordinate's efforts to meet the target mutually

established.

The goal setting approach is based on clear and time bound objectives from the

corporate level to the operate level. This approach can be applied with great

success if the performance appraisal program consists of the following elements:

1. Good job description is available to help setting of goals from different

positions.

2. Superiors have trust in the subordinates to establish reasonable goals.

3. There is emphasis on solving problems rather than criticism of the

performance of the subordinates.

The goal setting approach has done away with the judgmental role of the

superior in the appraisal of their subordinates. It has led to greater satisfaction,

greater agreement, greater comfort and less tension and hostility between the

workers and the management. This approach is considerably superior to the

traditional approach of performance appraisal, It emphasis training and

development of individuals. It is also a problem solving approach rather than tell

and sell approach. This approach has also got a built -in device of self -appraisal

by the subordinates because they know their goals and the standards by which

their performance will be measured.

The goal setting approaches suffer from the following limitation:

1. This approach can be applied only when the goal setting is possible by the

subordinates. It is doubtful if such a procedure can be applied for the

subordinates.

2. This approach is not easy to administer. It involves considerable time, through

and contract between the superior and the subordinates. If the span of

supervision is quite large, it will not be possible for the superior to have

discussions with each and every subordinate for setting up mutually agreed

goals.

3. This approach mainly emphasis counseling, training and development. It is

argued that critical evaluation and modification to improve are incompatible. But

in practice, it is not possible to forego the critical aspect of performance

appraisal.

42

Behavioral Anchored Rating Scales

Behavioral anchor rating scale (BARS) is designed to identify the critical area of

performance of a job, and to describe the more effective and less effective job

behavior for getting results. Performance is evaluated by asking the rater to

record specific, observable job behaviors of an employee and then to compare

these observations with a "behaviorally anchored scale"

Behaviorally anchored rating scale approach combines elements of the

traditional rating scale and critical incident method. Using BARS, job behaviors

from critical incident- effective and ineffective behaviors- are described more

objectively. This method employs individual who are familiar with a particular

job to identify its major components. They are asked to rank and validate

specific behaviors for each of the components.

The various steps involved in developing BARS are as follows:

a. Identification of critical incident of behaviors.

People With knowledge of the task of the job to be probed such as holders and

supervisors, specific examples of effective and ineffective behavior related to job

performance.

b. Identification of performance dimensions

People are assigned the task of developing the instrument cluster pertaining to

the incidents into a small set of key performance dimension.

c. Reclassification of critical behavior

Another group of people who are knowledgeable about the job is instructed to

retranslate or reclassify the critical incidents generated under the previous step.

d. Assigning a scale value to the critical behavior

Each incident is related on a one-to-nine scale with respect to how well it

represents performance on the appropriate dimension.

e. Development of bar instrument

About six or seven incidents for each performance dimension- all having met

both the translation and standard deviation criteria — are sued as behavioral

anchor. The final BARS instruments consist of a series of vertical scale anchored

by the final incident. Each incident is positioned on the scale according to its

mean value.

43

360 DEGREE APPRAISALS AND FEEDBACK

The 360 degree appraisal involves rating of an employee or manager by

everyone above, alongside and below him. Although deployed mostly as a fact-

fining technique, 360 degree appraisal is also used to design promotion and

reward in the organization. Structured questionnaire is used to collect responses

about the employee from his superior’s peers and subordinates.

Merits of 360 degree appraisal

1. The 360 degree appraisal leads to greater self- awareness of those appraised. It

reveals strength and weaknesses in their working style.

2. The gap between self assessment and the view of one's colleagues or peer

group in reduced.

3. If facilitate empowerment of subordinates who get a say in the appraisal of

their bosses.

4. Inflexibility managers are forced to initiate self- change.

5. Facts about organizational culture and ambience are brought to light by the

multiple appraisals.

Limitation of 360 degree appraisal

1. The 360 degree appraisal system ignores performance appraisal in terms of

goals.

2. The candidate being appraised may not accept negative feedback from the

subordinates and peers. He might feel humiliated.

3. Responses from colleague often tend to be biased.

4. Linking rewards to finding less than 360 degree appraisal can prove to be

unfair.

5. The subordinates and might not be fully competent in appraisal.

44

CHAPTER 3

RESEARCH

45

RESEARCH METHODOLOGY

AIM OF THE RESEARCH

The assigned task was to conduct a survey for a well reputed company. The

research is concerned with the systematic and objective collection, analysis and

evaluation of the information about specific aspects in order to help management

make effective decisions. Once the aspect is identified and defined it is the

responsibility of the researcher in a successful manner.

The methodology used in the study involves the collection of primary as well as

secondary data. Research in common parlance refers to a search of knowledge.

One can also define research as a scientific and systematic search for pertinent

information on a specific topic.

RESEARCH DESIGN

Research Design refers to "framework or plan for a study that guides the

collection and analysis of data". Though each research study has its own specific

purpose, but the research design of this project on FLORA HOTEL is

Conclusive in nature.

CONCLUSIVE RESEARCH DESIGN:

Conclusive Research Studies are more formal in nature and are conducted with a

view to eliciting more precise information for the purpose of making marketing

decisions.

These studies can be either:

a) Descriptive or

b) Experimental

Thus, it was a mix of both the tools of Research Design that is, Explorative as

well as Conclusive.

SAMPLE DESIGN

46

A sample design is defined as a plan determined before any data are actually

collected for obtaining a sample from a given population. Sample can be either

probability sample or non-probability sample.

In designing the sample the researcher must specify three things.

1. Sampling unit.

2. Sample size.

3. Sampling technique.

SAMPLING UNIT

The unit Comprises of employees from all departments of the hotel.

SAMPLE SIZE

The sample size taken for this survey was 50 employees of Flora Hotel. Employees

from every department was selected according to their availability.

SAMPLING TECHNIQUE USED

When field studies are under undertaken in practical life, consideration of time,

cost and some other factors almost invariably lead to selection of respondents. The

selected respondents constitute a sample and the selection process is called

sampling technique.

I have selected simple random sampling in my project.

SIMPLE RANDOM SAMPLING

This type of sampling is also known as chance sampling or probability sampling,

where each item in the population has an equal chance of being selected in the

sample.

47

SOURCE OF DATA

This research study is exclusively based on primary data collected.

PRIMARY DATA

The objective of the study has been accomplished with the help of primary

data collected from 50 employees. The selected samples are met in persons and

the data has been collected with the help of a questionnaire.

The questionnaire used in this survey consists of structured type of questions. It

is mixed type of questionnaire which contains both close ended and other type of

questions. Primary data refer to the data collected from primary sources. The

primary data were obtained by distributing questionnaires among the employees.

The questionnaires contributed main source of primary data. Also Interview with

HR Manager also contributed in the finding of the research.

SECONDARY DATA

Secondary data were collected from official records of the organization, websites

and from other publications. Data which are not originally collected but rather

obtained from a published or unpublished source, are known as secondary data

The Main Sources are:

1. Journals and records.

2. Magazines.

3. Web sites.

48

STATISTICAL TOOLS

The secondary tools used for analyzing the collected data are:-

1. Percentage

Percentage analysis: percentage refers to the s in making Pedal kind of ratio

which is used comparison between two or more series of data. Percentage can

also be used to compare relative terms and the distribution of two or more series

of data the ease and simplicity of calculating, the general understanding of its

purpose and the universal acceptability of the present static have made it the

most widely and standardizing tool in researchers. Since the percentages reduce

meaningful comparison to be made with data.

Percentage analysis formula

Percentage = (Number of Respondents/ Total population of the sample) x 100

TOOLS FOR THE DATA COLLECTION

QUESTIONNAIRE

Structured questionnaire in which the questions were based on the objective set

for the research was used for collecting the information and to some extend

observation also helped the researcher to give some additional information.

VARIABLES: Sex, age, educational qualification, experience.

INTERVIEW

This method was also adopted for data collection. The interview was mainly

done with Managers so that they will give more details about the kind of

appraisal methods they were following in the past and the present. The details

are as follows.

49

TECHNIQUES USED FOR ANALYSIS

The most convincing and appealing ways in which data may be presented are

tables, charts and pictures. Pictorial representation helps in quick understanding

of the data. Charts have greater memorizing effect as the impressions created by

them last much longer than those created by the figure. A chart can take the

shape of either a diagram or a graph.

To analyze the collected data, simple tool of percentage methods issued. The

study diagram representations are adopted. The data are presented through

different types of diagram are as follows.

1. Table

2. Charts

3. Bar diagram

50

FLORA HOTEL APPRAISAL SYSTEM

A detailed discussion with HR head Mr. Sujith Raj S of Flora Hotel, gave us the

insight in the performance appraisal system followed in the company. The

appraisal model which is followed on an annual basis starting from the month of

April to March. Head of Department's Performance Appraisal was done using

Management by Objectives method and workers Performance Appraisal was

done using 900 method by their own department heads. The same method was

being used by the company from the beginning to the present time.

Process for workers

Appraisal sheet will be given 45 days before the appraisal month to the HOD

who will fill all general information about the workers and start appraisal on

individual basis. During that process worker’s past one year work history will be

filled along with recommendation to HR Department.

General Manager, Head of the Human resource, Head of Department will decide

final promotion of the staff if necessary. Then Head of the Human resource,

Head of Department will find out any problems analyzed in that period, if found

training or counselling will be given to solve that problem.

Process for Head of Department

In the beginning of each financial year HOD will prepare KIP (Key Index

Points)/MBO, only three points will be there, but that will cover the whole

working area of the company. What they can fulfill and achieve during the

year, after the period what they have attained and what was their goal in the

beginning is compared problems are found out if any found training or

counselling will be given to solve that problem.

From the HR we come to know that these methods were highly effective in the

whole hotel industry and in Flora hotels as well, that is why they did not change

it up to the present.

51

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

52

GENDERWISE CLASSIFICATION OF RESPONDENTS

Classification No. of Responses Percentage

Male 40 80%

Female 10 20%

Total 50 100%

Table 1.1

Interpretation

From the above table it can be inferred that 80 % of respondents were male and

20% were females.

80%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Male Female

Graph 1.1

Response Rate

53

AGE WISE CLASSIFICATION OF RESPONDENTS


20-30 25 50%

31-40 15 30%

41-50 7 14%

51-60 3 6%

Total 50 100%

Table 1.2

Interpretation

From the above table it can be inferred that 50% of respondents was in 20-30

years age, 30% was in 31-40 years age, 14% of the respondents was in 41-50

years age, 6% of the respondents was in 51-60 years age.

50%

30%

14%

6%0%

10%

20%

30%

40%

50%

60%

20-30 31-40 41-50 51-60

Graph 1.2

Response Rate

54

EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS


Less than 3 years 20 40%

4-8 years 17 34%

9-15 years 10 20%

More than 15 years 3 6%

Total 50 100%

Table 1.3

Interpretation

From the above table it can be inferred that 40% of the respondents experience

are less than 3 years, 34% of the respondents experience is 4-8 years, 20 % of the

respondents experience is 9-15 years, 6% of the respondents experience are more

than15 years.

40%

34%

20%

6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Less than 3 years 4-8 years 9-15 years More than 15 years

Graph 1.3

Response Rate

55

DEPARTMENT WISE CLASSIFICATION OF RESPONDENTS


HR Department 1 2%

IT Department 1 2%

Engineering Department 5 10%

Accounting Department 3 6%

Front Office Department 8 16%

House Keeping Department 10 20%

Food & Beverage

Department

12 24%

Sales Department 2 4%

Security Department 8 16%

Total 50 100%

Table 1.4

56

Interpretation

From the above table it can be inferred that 2% of the respondents were from HR

Department, 2% from IT Department, 10% from Engineering Department, 6%

from Accounting Department, 16% from the Front Office Department, 20% from

the House Keeping Department, 24% from Food & Beverage Department, 4%

from Sales Department and 16% of us.

2% 2%

10%

6%

16%

20%

24%

4%

16%

0%

5%

10%

15%

20%

25%

30%

HRDepartment

ITDepartment

EngineeringDepartment

AccountingDepartment

Front OfficeDepartment

HouseKeeping

Department

Food &Beverage

Department

SalesDepartment

SecurityDepartment

Graph 1.4

Response Rate

57

QUALIFICATION WISE CLASSIFICATION OF

RESPONDENTS


UG degree 21 42%

Other 14 28%

Diploma 11 22%

Post Graduate 4 8%

Total 50 100%

Table 1.5

Interpretation

From the above table it can be inferred that 425 of the respondents have a UG

degree, 8% have PG degree, 22% have ITI, 28% have other qualifications.

42%

28%

22%

8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

UG degree PG degree Other ITI Post Graduate

Graph 1.5

Response Rate

58

1. Who evaluates your performance?

Opinion No. of Responses Percentage

HOD 47 94%

GM 03 06%

External Consultant 0 0%

Others 0 0%

Total 50 100%

Table 1.6

Interpretation

From the above table it can be inferred that 94 % of the employee performance is

evaluated by the Head of the Department. The Head of the Department that is 3

persons 6% is evaluated by GM.

94%

6% 0% 0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

HOD GM External Consultant Others

Graph 1.6

Response Rate

59

2. Does Performance Appraisal is improving Employee Motivation and Job

Satisfaction?


Yes 40 80%

No 10 20%

Total 50 100%

Table 1.7

Interpretation

From the above table it can be inferred that 80% of the employees believe that

performance appraisal is improving their motivation and job satisfaction, but 20

% of the employees think performance appraisal is not improving their

motivation and job satisfaction.

80%

20%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes No

Graph 1.7

Response Rate

60

3. Do you have meeting in the beginning to explain & clarify activity task &

goals to be achieved?


Yes 50 100%

No 0 0%

Total 50 100%

Table 1.8

Interpretation

From the above table it can be inferred that 100 % of the employees have a

meeting in the beginning to explain and clarify activity task and goals to be

achieved in that year.

100%

0%0%

20%

40%

60%

80%

100%

120%

Yes No

Graph 1.8

Response Rate

61

4. Should organization have a fixed duration for Performance Appraisal?


Yes 50 100%

No 0 0%

Total 50 100%

Table 1.9

Interpretation

From the above table it can be inferred that 100% of the employees agreeing the

stating organization should have a fixed duration for performance appraisal.

100%

0%0%

20%

40%

60%

80%

100%

120%

Yes No

Graph 1.9

Response Rate

62

5. Whether the Performance Appraisal System is able to improve Performance?


Yes 35 70%

No 15 30%

Total 50 100%

Table 1.10

Interpretation

From the above table it can be inferred that 70% of the employees Performance

Appraisal System are able to improve Performance and 30% of the Performance

Appraisal System is not able to improve Performance.

70%

30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes No

Graph 1.10

Response Rate

63

6. Do you think Performance Appraisal System will contribute in

identifying Potential Traits?


Yes 30 60%

No 15 30%

Cannot say 05 10%

Total 50 100%

Table 1.11

Interpretation

From the above table it can be inferred that 60% of the employees think that

Performance Appraisal System will contribute in identifying Potential Traits of

themselves, 15% do not agree that and 10 % cannot say.

60%

30%

10%

0%

10%

20%

30%

40%

50%

60%

70%

Yes No Can't say

Graph 1.11

Response Rate

64

7. Promotion process in the organization is based on-


Performance 03 06%

Experience 07 14%

Educational Qualification 02 04%

All of the above 38 76%

Total 50 100%

Table 1.12

Interpretation

From the above table it can be inferred that 6% of employee think that promotion

is based on performance, 14 % employee thinks it is based on experience, 4% on

educational qualification and 76% thinks all the factors are required for

promotion.

6%14%

4%

76%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Performance Experience Educational Qualification All of the above

Graph 1.12

Response Rate

65

8. Do you think that the past and the present Performance Appraisal System is

Transparent & Free from bias?


Yes 50 100%

No 0 0%

Total 50 100%

Table 1.13

Interpretation

From the above table it can be inferred that 100% of the employees think that the

past and the present Performance Appraisal System is Transparent & Free from bias.

100%

0%0%

20%

40%

60%

80%

100%

120%

Yes No

Graph 1.13

Response Rate

66

9. Are you satisfied with the current Performance Appraisal System?


Highly satisfied 28 56%

Satisfied 13 26%

Just satisfied 9 18%

Dissatisfied 0 0%

Total 50 100%

Table 1.14

Interpretation

From the above table it can be inferred that 56% of the employees are highly satisfied

with the current Performance Appraisal System. 26% are satisfied with the current

Performance Appraisal System. 18% are just satisfied with the current Performance

Appraisal System.

56%

26%

18%

0%0%

10%

20%

30%

40%

50%

60%

Highly satisfied Satisfied Just satisfied Dissatisfied

Graph 1.14

Response Rate

67

10. Do Flora Hotels provide opportunity for growth and development?


Yes 47 94%

No 3 06%

Total 50 100%

Table 1.15

Interpretation

From the above table it can be inferred that 94 % of the employees think Flora Hotels

provide opportunity for growth and development, 6% do not think so.

94%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yes No

Graph 1.15

Response Rate

68

11. Does Performance Appraisal helps to identify your strength and

weakness?


Yes 50 100%

No 0 0%

Total 50 100%

Table 1.16

Interpretation

From the above table it can be inferred that 100 % of the employees agreeing that

the Performance Appraisal helps to identify your strength and weakness.

100%

0%0%

20%

40%

60%

80%

100%

120%

Yes No

Graph 1.16

Response Rate

69

CHAPTER 5

FINDINGS, SUGGESTIONS AND CONCLUSION

70

FINDINGS

In Flora Hotel Cochin the appraisal model which is followed is on an

annual basis starting from the month of April till March. Head of

Departments Performance Appraisal was done using Management by

objectives methods and workers Performance Appraisal was done using

900 method by their own department heads. The same method was being

used by the company from the beginning to the present time.

Employee attitude towards the current performance appraisal method is

very much satisfactory, none of the employees said in the survey that they

were dissatisfied. From the HR department, we have found that all the

employees are fully cooperative in the full appraisal process. All

employees also agreed the fact that the past and present appraisal system

is transparent and bias free.

According to the employees majority of them told that performance

appraisal was able to improve their performance. It also increased

motivation as well because they felt that company is interested in their

performance and adopting methods to improve it.

The majority of the employees also told that performance appraisal system

was also helping in finding their hidden talent and putting into action as

well.

Promotion process in this organization is based on a mix of experience,

performance and educational qualification, in which experience to be the

first factor in the hotel industry.

The company also did provide opportunity for growth and development

and also helped to identify strength, weakness and hidden talent.

71

SUGGESTIONS

Implement more methods of performance appraisal and update the

employees about the type of method used for performance evaluation.

The whole performance appraisal should be kept more transparent and

free from bias in the future.

More opportunities should be provided for expressing their ideas and

plans to implement their level performance.

More training should be offered to the mentally stressed staff which

improve their potential and result in top appraisal points.

Overtime should be taken care of at the time of performance appraisal,

which would motivate the employees to perform better for longer hours.

Suggestion could be obtained from employees regarding framing the

performance appraisal system.

Appraisal feedback is very important in any performance appraisal

program. Should be carefully communicated by making high performers

increase their target and low performers to build up their confidence

72

CONCLUSION

Performance appraisal may be understood as the assessment of an individual's

performance in a systematic way. The performance being measured against such

factors as job knowledge, quality and quantity of output, initiative, leadership

abilities, supervision, dependability, co-operation, judgment, versatility, health and

the like. It also helps in developing strength and rectifies weakness of the employees.

Flora Hotel has been conducting performance appraisal from the past years from its

formation. Employees were cooperative and fully supporting the performance

appraisal in the institution and it was found to be highly effective in the employee’s

performance.

Flora Hotel has been running successfully for past several years and has created a

good name among its customers and society. People having poor background are

given training and provided with jobs. Performance appraisal can be conducted more

effectively by using the right tools and properly reviewing and updating the

performance appraisal program. Suggestion from employees and experienced

personnel can further enhance and make the performance appraisal an ideal

evaluation system.

73

CHAPTER 6

BIBLIOGRPAHY AND ANNEXTURE

74

BIBLIOGRAPHY

Books

Kothari C.R, “Research methodology”, New Delhi, New Age International (P)

Ltd, 2006.

Chabbra T.N, ”Human Resource Management”, Fifth Revised Edition, New

Delhi, Published By Dhanpat Rai and Co. (P) Ltd, Educational and Technical

publisher, 2005.

Aswathappa, “Human Resource Management”, Fifth Edition, Tara Mc Graw-

Hill publishing Company Ltd, 2005.

Milovich T.George and Newman M. Jerry, “Compensation Management”,

New Delhi, Tata Mc Graw-Hill Publication Company Ltd, 2005.

Flora hotel Cochin Records.

Web sites

http://www.florahotelsindia.com/contact-us.aspx

en.wikipedia.org/wiki/Performance_appraisal

http://www.hrwale.com/performance-management/performance-appraisal-

methods/

75

ANNEXTURE

QUESTIONNAIRE

Name :

Gender : ( ) Male ( ) Female

Age group : ( ) 20-30

( ) 31-40

( ) 41-50

( ) 51-60

Experience : ( ) Less than 3 years

( ) 4-8 years

( ) 9-15 years

( ) More than 15 years

Department: ______________________________

Qualification ______________________________

1) Who evaluates your performance?

a) HOD

b) GM

c) External consultant

d) Others

2) Does Performance Appraisal is improving Employee Motivation and

Job Satisfaction?

a) Yes

b) No

3) Do you have meeting in the beginning to explain & clarify activity task &

goals to be achieved?

a) Yes

b) No

76

4) Should organization have a fixed duration for Performance Appraisal?

a) Yes

b) No

5) Whether the appraisal system is able to improve performance?

a) Yes

b) No

6) Do you think that the Performance Appraisal System will also contribute

in Identifying Potential Traits?

a) Yes

b) No

c) Cannot say

7) Promotion process in the organization is based on-

a) Performance

b) Experience

c) Educational Qualification

d) All of the above

8) Do you think that the past and the present Performance Appraisal System

is Transparent & Free from Bias?

a) Yes

b) No

77

9) Are you satisfied with the current Performance Appraisal System?

a) Highly satisfied

b) Satisfied

c) Just satisfied

d) Dissatisfied

10) Do Flora Hotels provide opportunity for growth and development?

a) Yes

b) No

11) Does Performance Appraisal helps to identify your strength and

weakness?

a) Yes

b) No

Give your suggestion for the performance appraisal system in

FLORA HOTEL COCHIN

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