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PROJECT REPORT
ON
PERFORMANCE APPRAISAL
IN
HOTEL MEGHALAYA
VISAKHAPATNAM
A Project report submitted to ANDHRA UNIVERSITY in partial fulfillments
Of requirements for the award of the degree.
SUBMITTED BY
CH.VASANTHA RANI
BACHELOR OF BUSINESS ADMINISTRATION
CERTIFICATE
EXTERNAL EXAMINER
NAME:
DATE:
PLACE: VISAKHAPATANM
DECLARATION
Place: Visakhapatnam
Date:
CH.VASANTHA RANI
(116127307013)
ACKNOWLEDGEMENTS
I would also like to thank my internal guide Lect Mrs.A. Jaya Lakshmi
(INTERNAL GUIDE) (HOD), for giving their precious time and relevant
information and experience, I requested, without which the Project would have
been incomplete.
Finally I would like to thank all lecturers, friends and my family for their kind
support for me
CH.VASANTHA RANI
CONTENTS
CHAPETER-1
INTRODUCTION
OBJECTIVE OF THE STUDY
SCOPE OF THE STUDY
NATURE OF THE STUDY
DATA COLLECTION
LIMITATIONS OF STUDY
CHAPTER-2
INDUSTRY PROFILE
COMPANY PROFILE
CHAPTER-3
THERIOTICAL FRAMEWORK
CHAPTER-4
CHAPTER-5
ANEXTURE
BIBILIOGRAPHY
CHAPTER-1
INTRODUCTION
INTRODUCTION
PERFORMANCE APPRAISAL
To collect PA data, there are three main methods: objective production, personnel, and
judgmental evaluation. Judgmental evaluations are the most commonly used with a large variety
of evaluation methods. Historically, PA has been conducted annually (long-cycle appraisals);
however, many companies are moving towards shorter cycles (every six months, every quarter),
and some have been moving into short-cycle (weekly, bi-weekly) PA. The interview could
function as “providing feedback to employees, counseling and developing employees, and
conveying and discussing compensation, job status, or disciplinary decisions”. PA is often
included in performance management systems. PA helps the subordinate answer two key
questions: first, "What are your expectations of me?" second, "How am I doing to meet your
expectations?"
Performance management systems are employed “to manage and align" all of an organization's
resources in order to achieve highest possible performance. “How performance is managed in an
organization determines to a large extent the success or failure of the organization. Therefore,
improving PA for everyone should be among the highest priorities of contemporary”
organizations.
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 disruptive to existing employees. Also, it
takes time to develop ‘cultural awareness’, product / process / organization knowledge and
experience for new staff members.
OBJECTIVES OF PERFORMANCE APPRAISAL
SCOPE
LIMITATIONS
1. Errors in rating
2. Lack of reliability
3. Negative approach
4. Multiple objectives
5. Lack of knowledge
CHAPTER-2
INDUSTRY PROFILE
COMPANY PROFILE
INDUSTRY PROFILE
The hospitality industry consists of land category of fields within the service industry that
includes lodging, restaurants, event planning, theme parks, transportation, cruise line, and
additional fields within the tourism industry. The hospitality industry is a several billion dollar
industry that mostly depends on the availability of leisure time and disposable income. A
hospitality unit such as a restaurant, hotel, or even an amusement park consists of multiple
groups such as facility maintenance, direct operations (servers, housekeepers, porters, kitchen
workers, bartenders, etc.), management, marketing, and human resources.
The hospitality industry covers a wide range of organizations offering food service and
accommodation. The industry is divided into sectors according to the skill-sets required for the
work involved. Sectors include accommodation, food and beverage, meeting and events, gaming,
entertainment and recreation, tourism services, and visitor information.
Hospitality is all about offering warmth to someone who looks for help at a strange or
unfriendly place. It refers to the process of receiving and entertaining a guest with goodwill.
Hospitality in the commercial context refers to the activity of hotels, restaurants, catering, inn,
resorts or clubs who make a vocation of treating tourists. Helped with unique efforts by
government and all other stakeholders, including hotel owners, resort managers, tour and travel
operators and employees who work in the sector, Indian hospitality industry has gained a level of
acceptance world over. It has yet to go miles for recognition as a world leader of hospitality.
Many take Indian hospitality service not for its quality of service but India being a cheap
destination for leisure tourism.
With unlimited tourism and untapped business prospects, in the coming years Indian
hospitality is seeing green pastures of growth. Availability of qualified human resources and
untapped geographical resources give great prospects to the hospitality Industry. The number of
tourists coming to India is growing year after year. Likewise, internal tourism is another area
with great potentials. The hospitality industry is a 3.5 trillion dollar service sector within the
global economy. It is an umbrella term for a broad variety of service industries including, but not
limited to, hotels, food service, casinos, and tourism. The hospitality industry is very diverse and
global. The industry is cyclical; dictated by the fluctuations that occur with an economy every
year.
A number of cities have blossomed with suburban "Silicon Valley" type Special
Economic Zones (SEZs). This is mostly driven due to strong growth in IT, BPO segments,
increase in foreign travelers, emphasized focus on tourism by government, affordable
airlines fares, etc. Several other factors such as Commonwealth Games in Delhi are fueling
the need further. The middle class is becoming more prosperous and native Indian tourist
travel is growing rapidly, particularly in places such as Goa, Kerala and Rajasthan.
Bangalore, Hyderabad, Chennai, Gurgaon, Pune and the suburbs of Mumbai are the areas
attracting international investment and as expected, are the cities with the largest
development pipelines. Combined, these cities account for 89 of the 161 projects in the
pipeline and 16,734 guestrooms, which is 68% of the rooms in India's total pipeline.
Today hospitality sector is one of the fastest growing sectors in India. It is expected to grow at
the rate of 8% between 2007 and 2016. Many international hotels including Sheraton, Hyatt,
Radisson, Meridian, Four Seasons Regent, and Marriott International are already established in
the Indian markets and are still expanding. Nowadays the travel and tourism industry is also
included in hospitality sector. The boom in travel and tourism has led to the further Development
of hospitality industry.
In 2003-04 the hospitality industry contributed only 2% of the GDP. However, it is
projected to grow at a rate of 8.8% between 2007-16, which would place India as the second-
fastest growing tourism market in the world. This year the number of tourists visiting India is
estimated to have touched the figure of 4.4 million. With this huge figure, India is becoming the
hottest tourist destination. The arrival of foreign tourists has shown a compounded annual growth
of 6 per cent over the past 10 years. Besides, travel and tourism is the second highest foreign
exchange earner for India. Moreover, it is also estimated that the tourism sector will account for
nearly 5.3 per cent of GDP and 5.4 per cent of total employment.
Services for
Hospitality Industry
DATA SERVICES
Over the last decade and half the mad rush to India for business opportunities has intensified and
elevated room rates and occupancy levels in India. Even budget hotels are charging USD 250 per
day. The successful growth story of 'Hotel Industry in India' seconds only to China in Asia
Pacific.
The hotel industry in India is a mature industry marked by intense competition, where an
increase in market share typically comes at a competitor’s price. The Indian hotel industry is on a
roll. At present this industry has a supply of 1, 25,000 rooms in India. The data available with the
World Travel and Tourism Council, India, indicates that India ranks 18th in business travel, and
should rank among the top 5 within this decade. It is estimated that demand is going to exceed
supply by at least 100 per cent over the next two years. With such demand-supply disparity,
room rates in Indian hotels are likely to rise by 25 per cent annually, with occupancy rates rising
to 80 per cent, over the next two years. With the commonwealth Games 2010 around the corner
in the country, there is a huge demand for rooms in the national capital. India ranks first with
regards to tourism fair attendance. Despite short and medium terms set backs, tourism revenues
are expected to rise by 42 per cent between 2007 and 2017. The medical tourism in India also
does not lag behind. The country today ranks second in medical tourism because of its highly
advanced treatment technologies wooing a large number of patients from various countries.
India’s share in international tourism and the hospitality market is expected to increase over the
long term. New budget and star hotels are being set up in the country. Many foreign hospitality
players are heading towards Indian markets. The Indian hospitality sector is expected to touch a
gross business of US$275 billion in the next 10 years. The domestic hospitality sector is
expected to see investments of US$11 billion in the next 2 years, with 40 international hotel
brands establishing their presence in the country in the next few years.
The hotel industry in India is going through an interesting phase. One of the major reasons for
the increase in demand for hotel rooms in the country is the high growth in sectors like
information technology, telecom, retail and real estate. The growth of the tourism industry has
also added fillip to the hotel industry. In recent years the government has taken several steps to
boost travel and tourism, which have benefitted the hotel industry the most.
EVOLUTION
Hotel Industry in India has witnessed tremendous boom in recent years. Hotel Industry is
inextricably linked to the tourism industry and the growth in the Indian tourism industry has
fuelled the growth of Indian hotel industry. The thriving economy and increased business
opportunities in India have acted as a boon for Indian hotel industry. The arrival of low cost
airlines and the associated price wars have given2 domestic tourists a host of options. The
'Incredible India' destination campaign and the recently launched 'Atithi Devo Bhavah'
(ADB)campaign have also helped in the growth of domestic and international tourism and
consequently the hotel industry.
According to a report, Hotel Industry in India currently has supply of 110,000 rooms
and there is a shortage of 150,000 rooms fuelling hotel room rates across India. According to
estimates demand is going to exceed supply by at least 100% over the next 2 years. Five-star
hotels in metro cities allot same room, more than once a day to different guests, receiving almost
24-hour rates from both guests against 6-8 hours usage.
With 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. To overcome, this shortage Indian hotel industry is adding
about 60,000 quality rooms, currently in different stages of planning and development, which
should be ready by 2012. Hotel Industry in India is also set to get a fillip with Delhi hosting
common wealth games.
GROWTH IN FUTURE
Tourism in India is no longer limited to foreign tourist arrivals, with domestic tourism having
registered unprecedented growth over recent years due to a burgeoning upper-middle-class
population, which is driving demand for quality and branded accommodation. This group has
been breaking away from traditional lifestyles, and this changed mindset is creating huge
demand for hotels that provide quality at affordable rates. This is coupled with accelerated
infrastructure growth providing better accessibility by road, rail and air.
It is also important to note the continuous growth in business travel over the last few years, both
international as well as domestic.
COMPANY HISTORY AND COMPANY
PROFILE
INTRODUCTION TO THE DEPARTMENTS OF A HOTEL
FRONT OFFICE
This is the first point of contact between the guest and the hotel, whether in person or on the
phone. The front office department can be broken up, on the basis of its functions, as follows:
Telephones
Reservations
Registration / Information / Billing
The Bell Desk
Business Centre
Travel Desk
HOUSEKEEPING
Cleanliness of floors (rooms), public areas (lobby, restaurants, etc.) & service areas.
Upkeep of Hotel Linen and Staff Uniforms
Guest and Hotel Laundry
Lost and Found
Horticulture & Flower Arrangements
Pest Control
FOOD & BEVERAGE SERVICE
The F&B Service Department is responsible for service of Food & Beverages in Rooms,
Restaurants, Lounge, Business Centre & Banquet areas. It is a major revenue earner for the
Hotel.
FOOD PRODUCTION
Preparation of food for all the above mentioned areas. Hygiene in handling of food is of utmost
importance. The Food Production Department can broadly be divided into the following
sections:
KITCHEN STEWARDING
The Kitchen Stewarding Department is responsible for the cleanliness and maintenance of all the
F & B Service Equipment, glassware, crockery and cutlery. It is also responsible for the
cleanliness of the kitchen areas, the staff cafeteria and all kitchen equipment.
ENGINEERING
The basic responsibility of the Engineering Department is to maintain the utility assets of the
company in operational condition, so as to meet the basic requirements of guests. The functions
of the Engineering Department may be broken up as follows:
AC and refrigeration
Electrical, Plumbing & Pool Filtration
Boiler & Generator maintenance
Electronic and telephone equipment
Kitchen and Laundry Equipment
Carpentry work, Painting and polishing
Masonry work
Elevator Maintenance
Fire Fighting Equipment
MATERIALS
Purchase
Receiving
Stores
As the name suggests, the Materials Department is responsible for all materials (food, stationery,
equipment, etc.) that are procured for the Hotel. These are purchased as per the Standard
Purchase Specifications, checked for quality on receipt and appropriately stored until they are
required to be issued to the user Department.
SALES
The sales team of the hotel is responsible for spreading awareness in the market of the existence
of the hotel and its features and facilities, thereby bringing in revenues for the hotel from the sale
of rooms, food & beverage and banquet venues.
ACCOUNTS
The Accounts Department is responsible for reporting on the overall financial position of the
company. Gives us a regular update on Sales, Costs, Occupancy and profitability and helps us
compare current position with the budgeted as well as previous year’s figures.
The F & B Controls Department, which forms a part of the Accounts Department, is
responsible for tabulating F & B sales, Food Cost %, Liquor and food consumption. There is a
regular control on consumption by periodic inventories and daily tallying of KOTs with bills.
PERSONNEL
TRAINING
The Training Department is responsible for all staff development activities, helping staff grow in
terms of knowledge, skills and attitudes.
CHAPTER-3
THEORETICAL FRAME WORK OF THE STUDY
ORGANISATIONAL STRUCTURE
GM
HEAD OF THE
DEPARTMENT/MANAGERS(10)
EXECUTIVES
SUPERVISORS
TRAINEES
Meaning
It is the systematic evaluation of the performance of employees and to understand the abilities of
a person for further growth and development. Performance appraisal is generally done in
systematic ways which are as follows:
1. The supervisors measure the pay of employees and compare it with targets and plans.
2. The supervisor analyses the factors behind work performances of employees.
3. The employers are in position to guide the employees for a better performance.
It is said that performance appraisal is an investment for the company which can be justified by
following advantages:
1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion
programmes for efficient employees. In this regards, inefficient workers can be dismissed
or demoted in case.
2. Compensation: Performance Appraisal helps in chalking out compensation packages for
employees. Merit rating is possible through performance appraisal. Performance
Appraisal tries to give worth to a performance. Compensation packages which include
bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on
performance appraisal. The criteria should be merit rather than seniority.
3. Employees Development: The systematic procedure of performance appraisal helps the
supervisors to frame training policies and programmes. It helps to analyse strengths and
weaknesses of employees so that new jobs can be designed for efficient employees. It
also helps in framing future development programmes.
4. Selection Validation: Performance Appraisal helps the supervisors to understand the
validity and importance of the selection procedure. The supervisors come to know the
validity and thereby the strengths and weaknesses of selection procedure. Future changes
in selection methods can be made in this regard.
5. Communication: For an organization, effective communication between employees and
employers is very important. Through performance appraisal, communication can be
sought for in the following ways:
a. Through performance appraisal, the employers can understand and accept skills of
subordinates.
b. The subordinates can also understand and create a trust and confidence in
superiors.
c. It also helps in maintaining cordial and congenial labour management
relationship.
d. It develops the spirit of work and boosts the morale of employees.
3. Measuring Performance
Appraisal discomfort
Lack of objective
Halo\horn effect
Leniency\ strictness
Central tendency
Recent behavior bias
Personal bias (stereotyping)
Manipulating the evaluation
Employee anxiety
Immediate supervisor
Subordinates
Peers and team members
Self –appraisal
Customer appraisal
PERFORMANCE APPRAISAL METHODS
TABLE-5.1
Total
1, 2%
2, 4%
1
11, 23% 6, 12% 2
3
4
29, 59% 5
(blank)
Disagree(2) 2 4%
Agree(5) 11 23%
Total 50 100%
INTERPRETATION
This table shows that 2% respondents strongly Disagree that performance appraisal is
essential for the company. About 4% disagree with this. 12% respondents are neutral.
About 59% Strongly Agree. And 23% of respondents agree. Majority of people strongly
agree that performance appraisal is essential for the company.
Table 5.2
Total
1, 2%
6, 12% 8, 16%
1
2
3
4
15, 31%
5
19, 39%
(blank)
Disagree(2) 19 39%
Agree(5) 1 2%
Total 50 100%
INTERPRETATION
This table shows that 39% of employees disagreed that their superior are giving feedback on
regular basis .and 31% of employees are neutral towards this statement. and 16% of employees
are strongly disagreed about this statement and 12% of employees strongly disagreed that their
superior are giving feedback on regular basis but only 2% of employees agreed that their
superior giving feedback regularly.
TABLE 5.3
4, 8%
11, 23% 2
10, 20% 3
4
5
0 0%
Strongly Disagree (1)
4 8%
Disagree(2)
10 20%
Neutral (3)
24 49%
Strongly Agree (4)
11 23%
Agree(5)
50 100%
Total
INTERPRETATION:
This table shows that 49% of the respondents strongly agree that their performance appraisal
system encouraging to plan their work well and advanced, and 23%of respondents agree that
their performance appraisal system encouraging to plan their work well and advanced, 20% of
the respondents are neutral towards . and rest are only 20% of them agreed with this statement.
TABLE 5.4
Strengths and weakness of the subordinates
Total
5, 10% 5, 10%
1
2
3
16, 33% 15, 31%
4
5
(blank)
8, 16%
5 10%
Strongly Disagree (1)
15 31%
Disagree(2)
8 16%
Neutral (3)
16 33%
Strongly Agree (4)
5 10%
Agree(5)
50 100%
Total
INTERPRETATION:
This table shows that 33% of the respondents strongly agree that the performance appraisal
system is helping them to know the strengths and weakness of the subordinates, 31% of the
respondents disagree that the performance appraisal system is helping them to know the
strengths and weakness of the subordinates, 16% of the respondents are neutral that the
performance appraisal system is helping them to know the strengths and weakness of the
subordinates, 10% of the respondents strongly disagree that the performance appraisal system is
helping them to know the strengths and weakness of the subordinates,10 % of the respondents
agree that the performance appraisal system is helping them to know the strengths and weakness
of the subordinates .
TABLE 5.5
Performance appraisal system encourages the people to their work well and advance?
Total
1, 2%
4, 8%
2
16, 33% 3
4
5
28, 57%
(blank)
OPTION NO. OF PERCENTAGE
RESPONDENT
0 0%
Strongly Disagree (1)
4 8%
Disagree(2)
1 2%
Neutral (3)
28 57%
Strongly Agree (4)
16 33%
Agree(5)
50 100%
Total
INTERPRETATION
This table shows that 57% this system is helping the respondent to work well and advance. And
33% of respondent agreed with this statement and 8% of employees disagreed with this
statement and only 2 % of respondent are neutral.
TABLE 5.6
Best power to assess performance of an employee?
Total
1, 2%
6, 12% 1
8, 16%
2
3
11, 23% 4
23, 47% 5
(blank)
1 2%
Strongly Disagree (1)
8 16%
Disagree(2)
11 23%
Neutral (3)
23 47%
Strongly Agree (4)
6 12%
Agree(5)
50 100%
Total
INTERPRETATION
The table shows that 47% of respondent strongly agreed that this is the best power to assessing
the performance of employees, and 23% of respondent neutral towards this statement. And 16 %
of respondent disagreed with it and 12% of respondent agreed that best power to asses
performance of the employee and only 2% of respondent strongly disagreed.
TABLE5.7
Total
6, 13% 4, 8%
2
10, 21% 3
4
5
28, 58% (blank)
0 0%
Strongly Disagree (1)
4 8%
Disagree(2)
10 21%
Neutral (3)
28 58%
Strongly Agree (4)
6 13%
Agree(5)
50 100%
Total
INTERPRETATION:
This table shows that 58% of respondent strongly agreed that low performance is due to lack of
skill, and 21% of respondent neutral to it. And 13% of employees agreed that low performance is
due to lack of skill, and 8% of respondent disagreed with it.
TABLE 5.8
Total
1, 2% 2, 4%
1
8, 16% 2
9, 19%
3
4
9, 18% 5
20, 41%
8
(blank)
2 4%
Strongly Disagree (1)
9 19%
Disagree(2)
9 18%
Neutral (3)
20 41%
Strongly Agree (4)
1 2%
Agree(5)
50 100%
Total
INTERPRETATION:
This table shows that 41% of respondents strongly agreed with the statement and 19% of
employees disagree with it. And 18% of respondents are neutral to it., 4% of the respondents
strongly disagree to the statement, and 2% of the respondents agree to the statement that
Performance appraisal helps in assessing the training needs of the subordinates.
TABLE 5.10
Managers can get work out of the employees without performance appraisal system?
Total
1, 2% 3, 6%
7, 14% 1
2
3
10, 21% 4
28, 57% 5
(blank)
3 6%
Strongly Disagree (1)
28 57%
Disagree(2)
10 21%
Neutral (3)
7 14%
Strongly Agree (4)
1 2%
Agree(5)
50 100%
Total
INTERPRETATION:
This table shows that 57% of the respondents disagree that managers can bring out work from
employees without performance appraisal, 21% of the respondents are the neutral to the
statement, 14% of the respondents strongly agree to it, 6% of the respondents strongly disagree
to the statement,2% of the respondents agree to it.
TABLE 5.11
Total
3, 6%
6, 12%
2
3
13, 27%
4
5
27, 55% (blank)
0 0%
Strongly Disagree (1)
3 6%
Disagree(2)
13 27%
Neutral (3)
27 55%
Strongly Agree (4)
6 12%
Agree(5)
50 100%
Total
INTERPRETATION:
This table shows that 55% of the respondents strongly agree that there are proper basis for
promotion regarding rewarding system,27% of the respondents are neutral to the statement,12%
of the respondents agree to it, and 6% of the respondents disagree.
CHAPTER -5
FINDINGS
SUGGESTIONS
CONCLUSION
SUGGESTIONS
2. To market such a concept, it should not start at bottom; instead it should be started by the
initiative of the top management. This would help in percolating down the concept to the
advantage of all, which includes the top management as well as those below them. This
means that the top management has to take a welcoming and positive approach towards the
change that is intended to be brought.
3. Further, at the time of confirmation also, the appraisal form should not lead to duplication
of any information. Instead, detailed appraisal of the employee’s work must be done –
which must incorporates both the work related as well as the other personal attributes that
are important for work performance.
4. It should be noted that the appraisal form for each job position should be different as each
job has different knowledge and skill requirements. There should not be a common
appraisal form for every job position in the organization.
5. The job and role expected from the employees should be decided well in advance and that
too with the consensus with them.
6. A neutral panel of people should do the appraisal and to avoid subjectivity to a marked
extent, objective methods should be employed having quantifiable data.
BIBLIOGRAPHY
AND
ANNEXURE
BIBLIOGRAPHY
Websites:
1. En.wikipedia.org
2. www.ntpc.co.in
3. www.google.com
4. www.monkeysurevey.com
Books Referred:-
FINDINGS
According to the opinion of various respondents in Rockdale clarks inn suite was found that
majority of employees are not satisfied with their feedback.
1. Majority of employees are not satisfied with their performance appraisal process.
2. Employees are praised for their good performance.
3. According to employees opinion mostly employees are agreed that performance appraisal
is essential for the company.
4. Employees are not getting feedback on regular basis.
5. It’s helping to know the strength and weakness of the subordinate.
6. Performance appraisal encouraging the employees to work in advance.
7. Employee’s performance is low due to the lack of skill.
8. It’s not assessing the competence in an origination.
9. Performance appraisal should be conducted properly in an organization.
10. According to the survey performance appraisal is good in the organization but it needs to
be improved in some aspects