Chapter 1: PROFILE OF THE COMPANY 1.

1 COMPANY PROFILE
1. Name of the firm/company, its complete address along with telephone numbers,

1.1 Corporate Office (India) : Imperial Blue Janpath, New Delhi, 110001New Delhi - 110016, India Website: http://imperial.blue.com Phone No. 011-41689181/82

One can not talk about the Imperial Hotel in Delhi without talking about one of the most fascinating part of history of the city as well as India. It was during the year 1911 when King Emperor George V had declared New Delhi as the Capital of India. The task of creating a capital city which would replace Calcutta, was undertaken by Sir Edwin Landseer Lutyens, without doubt one of the greatest architects of the XX century, who put together what boldly wanted to be the plan of an ideal city. Much bigger than London itself, the new capital was built on a land dominated by history, but much unlike his predecessors, Lyuten has successfully incorporated various features from the local and traditional Indian architecture as well. He invented his own new order of classical columns, which is known as the "Delhi Order" and which he later used in several designs in England, such as Campion Hall or Oxford. The project, completed in 1929 and officially inaugurated in 1931, also brought much deserved recognition to one other personality in the architecture field, Rai Bahadur Sardar Narain Singh. He was first requested by the Maharaja of Patiala to build a tunnel and from there several other significant achievements are attributed to him such as the building of Dheradun followed by the building of other landmarks like the Prince of Wales College, Doon 1

School, Forest Research Institute of India and all the bridges in the valley. The Empress herself on the occasion of the grand Coronation Durbar where he was presented with the title of Rai Sahib and awarded the Durbar medal recognized his great work. His son S.B.S. Ranjit Singh continued his father amazing work and in 1931 together with one of Lutyens associates, D.J. Bromfield, he built The Imperial. The Hotel was meant to be the finest monuments of Lutyens grand vision and it succeeded thoroughly. Bringing together an unique blend of Victorian, old colonial and a touch of informal art deco, the hotel was decorated, named and conferred the lion insignia together with its exquisite final touches by the Lady Wellington herself. The Hotel is even today one of Delhis landmarks, a silent witness to great moments in Indian history. Nehru, Gandhi, Jinnah or Lord Mountbatten have discussed about the Partition of India and the creation of Pakistan at its shelter. Nehru family had a permanent suite here and most of the Embassies were located in the premises of the Hotel. Today amidst numerous restoration works, the Hotel has not lost anything of its former glory. In spite technological facilities subtly inserted to offer the comfort of a world-class hotel, The Imperial has managed to preserve its unique charm and old perfume. From furniture, to personnel attires everything comes together to recreate an era that was a milestone towards the countrys independence. The original Frasers and Daniells paintings and the tavern named after them, the symbolically baptized 1911 restaurant and bar, the Royal ballroom were the places to meet for Indian and English aristocracy then and are still one of the most sought after places to go to even today. The Hotel is a jewel of architecture and its location in the heart of the city makes it the ideal venue for tourists around the world. The Imperial is not only one of Asias finest hotels but a different experience in itself and experience one should never miss while visiting Delhi.

1.2 Nature Hotel Industry Review

Indian hotel industry has kept up the growth momentum that was started in the second half of 2004. It has once again showed a robust performance, even in the so-called slack period of the industry cycle. Indias emergence as a BPO hub, continuing war on airfares, and growing infrastructure thrust by the government were among the contributing factors to this growth. Tourist arrival, occupancies and room rates witnessed strong growth during the quarter under review. The industry was affected due to torrential rains in July to some extent, however it was back on growth trajectory in the subsequent months. Tourist arrival grew by 12.9% to 1.6mn for the first half of FY06 compared to the same period last year.

Chart: Tourist arrival in India

Source: Ministry of Tourism and GOI Outlook With the busy season for hotel industry already approaching, overall ARR and occupancy rates of the industry would increase. Cities like Bangalore, Chennai and Hyderabad are expected to see the highest growth in ARR and occupancy. The tourist inflow is likely to continue further. With stress now being laid on improving the facilities at the airports and

developing road infrastructure across the country, the tourism industry is all set to gain even more. Hoteliers have already increased their room rates in the light of very few capacities being added to bridge the demand supply gap. The Hotel industry is poised for growth with companies undertaking refurbishment as well as expansion programmers.

1.3 Functionality of Hotels

Food Production

Food & Beverage

Core Departments

Front Office

Housekeeping
A hotel is compartmentalized as follows: Front Office House Keeping F&B Kitchen Marketing and Sales 4

Mission And Vision :

The topic of the study is, Employee Motivation. This topic required a lot of research. A research is defined by Collins English Dictionary as systematic investigation to establish facts or principles or to collect information on a subject. The main reason for choosing this topic was to learn about motivation theories and how they can be implemented effectively in any work environment. 1.3.1 Background of the study A vital managerial function in any organization is to motivate employees. This is because motivation is inextricably linked to employee satisfaction and ensures employees consistently excel at their jobs. Motivation is especially important in the hospitality and tourism industry, where employee satisfaction and competence are key determinants of service quality. Motivation is the key to keeping the employees performing continuously at the highest standards. For a company to succeed, it is necessary for employees to be competent, for the company to be organized in efficient ways, for the firm to provide the employees with necessary materials and resources to do the job, and for employees to have a desire to do their best. When employees have a desire to do their best, they are said to be motivated. According to Stephen P. Robbins, motivation is defined as: The willingness to exert high levels of effort toward organizational goals conditioned by the efforts ability to satisfy some individual need. From an employers perspective, money/compensation is the prime motivator. However not all employees have the same needs and wants. As a result compensation does not

work as a motivator for all kind of employees. As a result motivation policies rarely succeed when the companies base motivation solely on monetary rewards.

Employers frequently combine incentives or benefits with wages or salaries to form a total compensation package for employees. Most employers recognize a direct link between performance and incentives. Rewards must be substantial enough to encourage effort. Whether money or merchandise, the rewards must be desirable. Too often managers set rewards those employees perceive as not worth their effort. Performance is a function of both ability level and the motivation to use ability. Performance standards in essence are physical measures of labor productivity. Increases in productivity and performance should be tied to other rewards such as advancement. Rewards must be linked to output, not to time invested. The basic principle for any incentive plan should be that the employees would produce more if the reward were linked to productivity. Money and fringe benefits satiate physiological and security needs. Hygiene factors such as "interpersonal relations and supervision satiate social needs. Motivators such as increased responsibility, challenging work and growth and development satiate the esteem and self-actualization needs. The physiological, safety, social and part of the esteem needs related to hygiene factors. The esteem needs have two parts status an recognition. Status may be acquired through influence and partiality and thus may not reflect actual personal achievement. However, recognition is acquired through competence and achievement. Therefore, while status is considered as a hygiene factor, recognition is a motivator. In the light of above motivators organizations seek to get maximum quantity and quality output from their employees.

1.4 SCOPE OF THE STUDY 1.4.1 SCOPE

The scope of the study is to investigate whether motivation leads to better productivity in employees. Money was considered to be the only motivating factor, in earlier times, but 6

recent literature supports other factors as well to be important drivers of motivation, like job security, work conditions, growth and promotions etc. The scope here is to examine if motivation induces better productivity and to determine the factors constituting motivation.

1.5 OBJECTIVES
The objectives towards achieving the aim of the study are identified as: Work & gain knowledge of real business environment, Analyse how theoretical concepts taught are applied/not applied in real situations, Analyse best practices of a company/industry in different functional areas, Enhance analytical & application abilities of students Develop skills in technical report writing through data collection, data analysis, data presentation and draw lessons.. To suggest the recommendations accordingly.

1.6 HOTELS STUDIED For research, three of New Delhis five star hotels were chosen, namely: 1. The Claridges Hotel 2. Hotel The Imperial 3. Hotel The Crowne Plaza The survey contains two questionnaires, one for the staff and one for the managers. Due to time constraint, it was decided to question 30 people from staff and 7 managers from the three hotels.

The reason for using workers is to know as to what are their expectations from the employers. And managers and supervisor were surveyed to know what steps are they taking so as to motivate their staff and how it relates with enhancement of their productivity.

1.7 MARKET SHARE AND POSITION OF THE COMPANY : Its a growing company with the annual turnover of Rs.700 cr. (2010-11) so it is not listed in the stock exchange and hence not having its market share now. As the hotel has diversified into fields with unique features direct comparison is not possible with the other existing companies.

1.8 PRESENT LEADERSHIP:

Sardar Hardev Singh Akoi & Sardar Jasdev Singh Akoi (CEO) M/s Akoi Saab (COO)

During the Course of My Summer Training I interacted with the Following People:

1.) Vijay wanchoo (Seiner executive) 2.) Mr. Gaurav Sindwani (Director sales & strategic planning) 3.) Mr. Surender Singh Thakur (director food & beverages) 4.) Ms. Aparupa Ray Ganguly (Director marketing & public relations)

1.9 SOURCES OF DATA COLLECTION:

9.1 Primary Sources: By personal interaction with the HR Service Professionals, HR Coordinator and Financial Advisor Officer. Visiting for training every day in their Delhi Office. By practicing under HR Dept.

9.2 Secondary sources: The sites have been used to collect information regarding the project are following: 1. Official website of Net Creative Mind: http://www.netcreativemind.com

2. www.wikipedia.org

CHAPTER 2 SWOT ANALYSES Strengths

India's rich cultural heritage Located in Central Delhi Ranked as 5 STAR hotel in India Member of Preferred Hotels & Resorts Worldwide Demand far exceeds Supply Inclusion in EPCG* scheme

Weaknesses
Capital intensive Lack of adequate Man power Comparatively Poor infrastructure Less corporate ownership

10

Opportunities
Boom in tourism Upcoming Commonwealth Games Gaining International Standards Increase in disposable incomes Boost in tax concessions

Threats
Competition from rival Hotels. Economic crisis High service & luxury taxes may render India as an unviable destination. Lack of trained human resources

The Imperial Hotel

Ratings:5Star Address: 1, Janpath, New Delhi -110 001, India.

11

Accessibility: Airport: 17 km., Railway Station: 3 km., Bus Station: 8 km.

LocationalAdvantage: Situated in serene Diplomatic Enclave close to City center/business district & Airport. HotelDescription: The Imperial in New Delhi is not only a distinguished hotel but one which is primus interpares within the community of Asia's fine hotels. The 24 king palms that lead on to the porch, are an integral part of and witness to the very creation of New Delhi. Designed by Bromfield, one of Sir Edwin Lutyen's associates, it was placed on the prestigious Queensway, now Janpath, and bequeathed with a somewhat unconventional style and design. A mixture of Victorian, old colonial and a playful dosage of informal art-deco.

ACCODMATION AT IMPERIAL BLUE HOTEL 263 aesthetically appointed spacious singles, doubles and suites, the rooms at The Imperial retain the regal flourishes of a wondrous past. With its high ceilings, impeccable dcor, and all the comforts of a more modern world. Amenities.at.Hotel.Imperial: Swimming Pool, Water Sports, Shopping Arcade, Doctor on call, Health Centre, CTV with satellite connection, Business center, Safe Deposit Lockers, Foreign Exchange Counter, EPBAX Telephones, Arrangement for golf, tennis, Discotheque, Centrally airconditioned, Beauty Parlour, Sauna, Jacuzzi

SERVICES AT HOTEL IMPERIAL

12

Doctor on Call, Laundry, Valet, Travel Desk Service, Dry Cleaning, Post, Baby Sitting, Currency Exchange, Hair Dryer, Newsstand, Safety Deposit Box, Secretarial Services, Wake up service

Organizational Structure at The Imperial Hotel :-

13

General Manager

Audit

House Keeping

Front Desk

Sales

Maintain -ance

CHAPTER 3 Analysis of Functional Operations undertaken at the Company

14

1 Details of the functional management area on which work has been carried out There are many tasks every business needs to do if it is going to succeed. So, the functional areas of management of Crafts International also cover various aspects to ensure its growth from last two years. Each of these tasks is described as being a function of a business. The following is a brief introduction to each of these functions:

1. Human Resources - ensures the business has the best staff for the job and that they are able to work effectively in a safe environment

2. Marketing and sales - will try and maximize the level of sales by carrying out market research and promoting the goods or service through a motivated sales team; 3.) Customer Service - will help the customer before and after a sale has been made by providing information, giving advice, providing credit facilities, delivering goods and providing after-sales support;

4.) Research and development - will help the business remain competitive by developing new goods and services and updating the existing

15

Employees Are Satisfied With Their Jobs and Moderately Engaged

Organizations understand that employee job satisfaction and engagement are important to their business sustainability. In todays uncertain economy, the best-performing employers know that taking their employees pulse and linking it to their business goals will help companies succeed and put them at a competitive advantage. According to this study, 83% of U.S. employees reported overall satisfaction with their current job, with 41% of employees indicating they were very satisfied and 42% somewhat satisfied. Despite this high percentage of satisfied employees, the level of overall satisfaction has been trending downward.

Employee Relationship With Management

The relationship an employee has with his or her supervisor is a central element to the employees affiliation with the organization, and it has been argued that many employee behaviors are largely a function of the way they are managed by their supervisors. One of the components of a good relationship is effective communication. When there are open lines of communication (e.g., encouraging an open-door policy), supervisors can respond more effectively to the needs and problems of their employees. Effective communication from senior management can provide the workforce with direction. In addition, managements recognition of employees performance through praise (private or public), awards and incentives is a cost-effective way of increasing employee morale, productivity and competitiveness.

16

Employee Satisfaction

Employee satisfaction means different things to different people. While we intuitively believe that employee satisfaction is necessary for high performance, studies in the past have not supported this belief. Several years ago, Wilson Learning Worldwide began asking why, and concluded that the problem was in the definition of satisfaction. The dictionary defines satisfaction as gratification of an appetite and pleasure. In general, people most often associate satisfaction with happiness and comfort. It is likely that in most of the previous studies, people responded to the question Are you satisfied? by interpreting the question as Are you comfortable in your work? Do you feel secure and content? While this may not have been the intent of the question, this understanding of the question does suggest why organizational.

Redefining Employee Satisfaction

performance has not been linked statistically to employee satisfaction. We dont often associate high performance with contentment, security, and comfort. However, we do tend to associate high performance with enjoyment of the work, fulfillment in accomplishment, and effective work relationships. Therefore, the researchers at Wilson Learning Worldwide decided to explore a new definition of satisfaction, one that taps the elements of fulfillment, empowerment, and engagement. In the process, we have identified a powerful tool for creating a high-performance, high-fulfillment work environment.

Fulfillment Satisfaction

17

We call our approach Fulfillment Satisfaction (or, just fulfillment) to differentiate it from the traditional definition of satisfaction (that is, satisfaction as being comfortable). It is our belief that, if you can identify and measure a more meaningful definition of satisfaction, you will find a closer causal relationship to organizational performance. We began our research by identifying the principal elements of fulfillment, empowerment, and engagement. We identified five: Satisfaction with the job: To be fulfilled, people need to value their day-to-day work activities. People need to have a sense of accomplishment or pleasure from the work itself. Satisfaction with relationships: People also need to value the relationships they have on the job to be fulfilled. People want to like working with their coworkers. While people know that conflicts will arise, they want to be assured that the focus is not on the interpersonal differences, but the task differences.

Satisfaction with leadership: If people do not think that they are being managed or led effectively, it is hard to have fulfillment in the work. Knowing that others are satisfied in their work: One of the key findings from our research is the importance of the open expression of fulfillment in the workplace. Knowing that others gain fulfillment in their work is a powerful motivator. Knowing that others are satisfied with the organizations leadership: It is difficult to be fulfilled if there is not open trust and support for leadership. Equally, when that open trust and support is present, it helps create an environment where people feel

18

empowered and willing to give their full engagement. This combination of both personal satisfaction and communication of group satisfaction is a critical distinction between Fulfillment Satisfaction and traditional definitions of satisfaction. In todays work environment, few objectives are met solely through one individuals efforts. In addition, as people work together in group settings, they are likely to influence each others attitudes and beliefs. Because of the roles that teamwork and joint effort play in organizational success today, tapping into these elements seems critical. One might feel personally satisfied, but not perceive satisfaction in others. As a result, the overall sense of fulfillment that one feels will be diminished. Organizations that encourage open communication, where employees discuss their level of satisfaction, promotes high performance.

A.H. MASLOW'S Approach:

According to Maslow's theory individuals are motivated by five levels of need, when individual has been satisfied by first level of need then he moves to second level of need so as to satisfy himself and then further on.

19

The five levels of need are: i) Physiological need -It includes basic needs such as food, shelter, clothing, heat and light. ii) Security -Maslow argued, once physiological needs have been met the individual will seek security at home, tenure at work and protection against reduced living standards. iii) Social -'Most people desire affection, they want to belong to a community, and to feel wanted.' People create social, religious, cultural, sporting and recreational groups and at work they create activity, groups and communication systems. iv) Esteem: It includes needs for recognition, authority and influence over others. This could be met by having high-ranking jobs, together with the provision of status symbols. v) Self -actualization: According to Maslow, this is the highest level of need as to concerns activity and hunt for personal fulfillment. Few people over reach this final stage. 2.4.3 Maslow's Theory: Maslow's hierarchical concept of human needs is based on the, view of prepotency of needs. These needs include the physiological needs, safety needs, love, esteem and the need for self-actualization. After the satisfaction of physiological needs, the need for safety tends to motivate human behaviour. This need refers to freedom from fears of external threats including criminal, attacks and climate distress, protection, comfort, peace and orderly and neat surroundings. The need for love involves the acceptance, group participation and desire for affectionate relationships among family members and other associates. It propels the individuals to belong to warm, supportive associations of other persons. Then comes the need for esteem (i. e recognition and prestige, confidence and leadership, achievement and ability, etc.) which refers to the wish of an individual for a high valuation of his personal worth. This need reveals itself in two manners: (I) an individual requires self-knowledge of competence in certain aspects of accomplishments, and (2) he requires the recognition or approval of these accomplishments by other persons. 20

Finally, the self-actualization need refers to realization of individual's intrinsic potentials. This need can be regarded as the desire to become more and. more what one is, to become everything which one is capable of becoming, to do things purely for the challenge of accomplishment, intellectual curiosity and fulfillment, and creativity and aesthetic appreciation. There are many other features of Maslow's theory, which deserve attention: (I) this hierarchy relates to the motivational scale of normal, healthy individuals belonging to a highly advanced society. This society ensures satisfaction of ~ physiological and safety needs. (2) From the standpoint of what actually motivates human behaviour it can be asserted that a satiated need is no longer a motivator. (3) In advance society, the physiological and safety needs do not form motivators for most normal adults. It is only in underdeveloped regions that these needs dominate human behaviour. In advance regions, these needs motivate only a small segment of population which is either abnormally deprived or, has not experienced warm affiliate relationships and the esteem of others. The theory asserts that it is perhaps only the search for higher level needs, which form the motivating factor for a normal adult individual. In the light of above facts, the author is of opinion that, motivation is needed at all levels and pay forms a unique, incentive, which is one of the major driving force for the people at all levels.

Herzbergs Two Factor Theory

The present theory of Herzberg is called the "two-factor theory" or the "motivationhygiene theory". It incorporates two kinds of factors: intrinsic or motivators and extrinsic or hygiene factors. The extrinsic factors are related to job dissatisfaction whereas the intrinsic factors are related to job r satisfaction. In situations where the extrinsic factors are not provided up to a minimum acceptable level, people become dissatisfied. Yet, if the extrinsic factors are provided beyond, this minimum acceptable level, they do not cause increase in satisfaction. These factors are also called as maintenance factors because their presence maintains satisfaction. They operate primarily to dissatisfy individuals when they are not adequately provided but their presence in adequate degree does not motivate them significantly. On the other hand increase in the intrinsic factors 21

are associated with satisfaction. These factors are called motivational factors. The absence of these factors will not necessarily cause job dissatisfaction. Yet, they operate primarily to build strong motivation and high job satisfaction. For several years managers had been wondering as to why their fringe benefits and personnel policies were not enhancing employee motivation in work settings. The difference between motivational and maintenance factors helped answer their question. Their fringe benefits and personnel policies are related to maintenance factors and not motivational factors. Thus, the definition of hygiene and motivation and the relationship of these factors to the behaviour of men at work have significant implications. It provides valuable guidelines for structuring the jobs to make them more interesting as well as for dealing with the problems of selection, supervision, mental health and participation, effectively. .

Herzberg asked professionals (engineers and accountants), the factors that increase or reduce their motivation during work place and Herzberg conclude that factors reducing employee's satisfaction are: Inadequate Pay Poor personal relations .Poor management Unpleasant working conditions Lack of incentives and other fringe benefits.

Maintenance or Hygiene factors- these factors prevent dissatisfaction by controlling the factors mentioned above. Some of the main constituents are: Good pay Good working environment Good relationships with colleagues and managers. Level of job security

22

Studying the Relationship between Fulfillment, Performance, and Leadership

From the work above, we were able to develop a reliable and valid measure of fulfillment. However, measuring the relationship between fulfillment and business performance requires reliable measures of performance in addition to a measure of fulfillment. It is nearly impossible to identify measures of performance that are consistent across industries, or even across organizations within an industry. As a result, the relationship between satisfaction and performance was examined in 14 separate studies, with each study using a unique measure of performance.

Redefining Employee Satisfaction

The measure had a direct impact on bottom-line performance

Linking Employee Satisfaction with Productivity, Performance, and Customer Satisfaction

Research aimed at quantifying the links between employee satisfaction and customer satisfaction, productivity, and financial performance began in 1980 with Benjamin Schneiders survey of satisfaction levels of bank customers and employees.1 Studies such as Frederick Reichhelds The Loyalty Effect, (1996) and James Heskett, W. Early Sasser, and Leonard Schlesingers The Service Profit Chain (1997) produced the first sets of hard data quantifying these links. Both studies conclude that there are direct and quantifiable links between customer service variables (such as satisfaction and loyalty),

23

employee variables (such as satisfaction, enthusiasm, loyalty, commitment, capability, and internal service quality), and financial results.2,3 In 1997, Development Dimensions International (DDI) conducted focus groups, customer interviews, literature reviews, and surveys to determine drivers of an effective service environment. DDI found evidence of a circular relationship between employee satisfaction and retention, and customer satisfaction and loyalty, and increases in company profitability. In addition, employee satisfaction was strongly related to employee commitment and loyalty, and both measures have proven relationships to retention and productivity. Discussion: In this we studied that the respondents with more work experience are regarded as they are more satisfied with their job and is regarded with the phsycological satisfaction being accomplished and opposite in the case where employees are less satisfied or young in this field.

Are you satisfied with your present job profile?

Hotel The Claridges The Imperial The Crowne Plaza 8 7 6 5 4 3 2 1 0 Claridges Imperial Crowne Plaza 24 4 3 2 6 Yes 6 7 8 No 4 3 2 8 Yes No

Findings: The satisfaction level varied in all the three hotels. While in The Claridges, six respondents were satisfied with their profile and four respondents were not satisfied. In The Imperial seven respondents were satisfied and three people were not satisfied. In The Crowne Plaza eight people were satisfied and two people were not satisfied. Discussion: In this we studied that as suggested by Herzberg two factor theory which are intrinsic and extrinsic factors i.e, motivation and hygiene factors. In situations where employees are not satisfied the extrinsic factors are not provided up to a minimum acceptable level, people become dissatisfied. Yet, if the extrinsic factors are provided beyond, this minimum acceptable level, they do not cause increase in satisfaction. These factors are also called as maintenance factors because their presence maintains satisfaction. They operate primarily to dissatisfy individuals when they are not adequately provided but their presence in adequate degree does not motivate them significantly. On the other hand, increase in the intrinsic factors are associated with satisfaction. These factors are called motivational factors. The absence of these factors will not necessarily cause job dissatisfaction. Yet, they operate primarily to build strong motivation and high job.

List two welfare activities carried out by your Hotel

The respondents at the hotel said that there were many welfare activities that were carried out by the hotel. The employers in all the three hotels provided with : Health and Accident insurance, which typically pays for hospital and doctor, expenses. The Imperial also offered dental plans to employees.

25

The employees in all the three hotel chains are provided with facilities such as transport at early morning and late night hours(after 8:00pm for girls, and 12:00am for boys)

And subsidized food.

List two schemes at your hotel aimed at motivating employees. The respondents in all the three hotel chains said that the hotel adapted to various schemes to motivate them. The two schemes that the respondents from all the three hotels discussed were: Fringe benefits that were given to them from time to time to motivate them. Also all the respondents told that the hotels conducted training sessions from time to time to keep them motivated and these training programmes were conducted for all levels of employees. Does your company appreciate your work? Hotel The Claridges The Imperial The Crowne Plaza Yes 4 7 6 No 6 3 4

7 6 6 5 4 4

7 6 Yes No

4 3

3 2 1 0 Claridges Imperial Crowne Plaza

26

APPRECIATION OF WORK--- Findings: The response to this question was different for all the three hotels. The 40% employees at The Claridges said that they were appreciated for their work while 60% respondents that they were not appreciated for their work. 70% people at The Imperial said that they were appreciated for their work and 30% said that they were not appreciated for their work. While 60% respondents at The Crowne Plaza said that they were appreciated for their work while 40% respondents said that they were not appreciated. The response from The Claridges was slightly averse, as the employees seemed to be dissatisfied with the employers and felt that they were not appreciated for their good work. While at the other two hotels it seemed that employees were appreciated for their work. Discussion: In this we concluded that most of the companies provide appreciation of work on time so that the workers remain motivated and will put in all efforts:: (i)Efforts will lead to high levels of productivity (ii)High levels of productivity will result in desired outcomes. (iii)Desired outcomes will satisfy personal needs. Expectancy theory states that people will decide how much they are going to put into their work. Does the company provide you incentives? Hotel
10 The Claridges 9 8 6 5 4 3 2 1 0 Claridges Imperial Crowne Plaza

Yes 6 7
6

No 4
83 9
Yes No

The Imperial
7 The Crowne Plaza

4 2 1

27

INCENTIVES--

Findings: 60% of the respondents at The Claridges, 80% respondents at The Imperial and 90% respondents at The Crowne Plaza said that they were provided with incentives while others said that they were not provided with incentives. Incentives create a positive work environment amongst employees leading to positive attitude and thus increased productivity. Discussion: In this we concluded that most of the companies provide incentives on time so that the workers remain motivated and will put in all efforts and money is the vital thing which is required to fulfill all our basic needs after which one can think of satisfying other needs. Please rank the motivation factors as to how they motivate you to perform well (on a scale of 1 to 5) for the following: 5 means Highly Motivating 1 means least Motivating. Hotel Job Salary & Empowermen t 35 Work Culture 28 Career Prospects 35 Any Other

Security wages The Claridges 39 37

28

The Imperial The Crowne Plaza

40

43

34

30

36

41

39

28

31

35

Marketing
Marketing Functional area (marketing)

29

Best way of marketing with No additional cost to achieve your marketing objectives. As an addition to your marketing organization, Imperial Blue can provide as much support as you need to meet your business objectives including the following:Imperial blue has a customer base of more than 50,000 family members spread all over the India & the number is continuously increasing

We run regular business and social events for members, all of which help to build relationships with members & company.

We circulate Business Emails, Sahara Care Magazine is an informative and entertaining with latest products, practical advice with product features regularly to our members.

Throughout the year we hold different activities across India where you got a chance to show you products & services.

We will add your name in the partners with us list which help you to promote your brand name.

If you have a product or service you feel will benefit to our members, please fill up the below form and download your partner with us agreement form. Complete the form and briefly describe your products / Service. Please include the costs and benefit / discount to Imperial bluemembers.

Advertisment
In marketing management texts advertising is conventionally regarded as one element of the promotional mix, a management tool defined by its explicitly promotional, mediated

30

and paid-for character, and differentiated from other marketing communications disciplines such as public relations, personal selling, corporate communications, sales promotion and so on. In turn, promotion is regarded as one sub-category of the marketing

management mix of price, product (design) and distribution. The advertising industry often pays little regard to such hierarchical sub-divisions, preferring to see all marketing elements as interacting parts of a whole. This view cuts across communications disciplines and acknowledges the interlocking and symbiotic relation of the elements of marketing. Advertising man Bill Bernbachs reputed comment that Nothing kills a bad product faster than good advertising illustrates well the pitfalls of taking compartmentalized view of marketing activities. Marketing operations and marketing

communication are interdependent in important respects. Having looked at a number of options for advertising and promotions, you need to decide which ones you might use. Keep things simple and consistent. Remember that you are an advert for your business. Make your choices according to what you can afford (budget), what fits with your business (image) and where you have the expertise i.e. what you can do yourself. .

Creating An Image
When creating an image, you can make use of: Stationery : Letterheads, continuation sheets, business cards, invoices, statements, envelopes, franking, stamps, email, e-business cards Publicity : Adverts, leaflets, price lists,

31

Presentation : You, your equipment, your vehicle, your operations Image is created not just by what you say but how you do things. For instance, answering phones promptly says one thing, being unable to help a caller say another. Getting to know your customers says one thing, creating distance and bureaucratic walls say another.

Marketing Mix
Product/Service What is it that you are selling? What is its quality? How will it be packaged or presented? Price This plays a critical role in a marketing strategy and there are three ways you can approach it: Cost pricing means that you work out what it costs you to do something and then add a bit for a profit You find out what you think the customer will pay You discover what the competition is doing and find out the going rate Promotion Products or services need the support of well-devised schemes of promotion. It is a good idea to plan how you will promote what you are selling with leaflets, advertisements in newspapers, etc. Dont do it in a haphazard way but plan it over the year.

Place This refers to where the product or service will be made available to the customer. For some businesses this is more critical than for others but it is an important consideration as it directly influences the market you will be targeting.

32

GENERATING PUBLICITY Why?

To create a consistent image To identify and reach target groups To raise the profile of the organisation To change attitudes To widen the customer, funder and user base What? Are you trying to say or achieve (a better image, better understanding, awareness or appreciation). Who? Are you trying to reach (existing or potential customers, funders, users or supporters SALES PROMOTION
Not everyone enjoys selling - so find someone who has the skills. A common problem of many small businesses is an inability to sell. No matter how good your product is or how marvellous your service, you have to convince other people. Here are some points worth bearing in mind: Presentation It is important that the goods or service being offered are well presented. Packaging should be pleasing and smart. Services should be offered in a professional way which gives an immediate impression that you know exactly what you are doing.

Reliability

33

You must be able to do what you say you will do. Time schedules must be adhered to. Promptness Dealing with enquiries promptly and delivering promptly always gives a good impression. In many cases this will ensure repeat orders. Punctuality Nothing is more irritating than sales personnel continually arriving late for appointments. In the present economic climate small things like this may be crucial in selling. Personal Appearance From the customers viewpoint, the initial impressions of the community enterprise may well be formed by the personal appearance of the individual doing the selling. It is therefore important for this person to look neat, tidy and smart. This is not to say that smart looking people can sell poor quality goods or services; simply that signs of scruffiness may inhibit potential customers from further investigation. Telephone Manner

HUMAN RESOURCE
The Net Creative Mind Human Resources Policy and Procedures Manual have been developed to facilitate the implementation and clearly define Net Creative Mind policies on human resource management.

The Manual provides guidelines to be followed in the administration of these policies, and assists all the employees in defining each human resource management decision and the correct procedure to be followed. RECRUITMENT & SELECTION PROCESS: The respective departments will forward their manpower requirements in prescribed

34

Requisition forms to the Human Resource Department creation of posts indicating there in the last dates by which placement of personnel is desired for different posts keeping in view the normal lead time for recruitment. All applications received against a specific notification/advertisement will be subject to A preliminary scrutiny by the Human Resource Department who will ensure that: Applications are duly completed and accompanied by the prescribed application Fees and were received within permitted time. Age of the applicant is within the prescribed limit. Qualifications and experience of the candidates conform to those prescribed. Applications have been submitted Through Proper Channel wherever required. PROCESS
Preliminary Screening: The applications that fulfil the prescribed requirements

after preliminary scrutiny as

above will be listed and forwarded to the

Department concerned for further scrutiny with a view to selecting for test/interview only those candidates who are considered suitable in terms of nature and quality of technical knowledge and professional expertise required for each specific post.

Candidates Eligible: On completion of the screening by the function concerned,

the Head of the Department will forward to the Human Resource Department the list of candidates considered eligible for test/interview, spelling out clearly the criteria adopted for screening and the basis of rejection of applications in each case.

35

 Reserved Vacancies: After the applications are finally screened, Human Resource

Department will prepare a final list of eligible candidates in order of merit based on the criteria determined in the course of earlier scrutiny and other relevant factors keeping in view the reserved vacancies.
Selection Tests: Various selection methods like trade tests, written tests, group

discussions etc. may be employed depending on the requirements of the job for which selection is being made and for this purpose, the Human Resource Department in association with the concerned Department, wherever necessary will evolve and prescribe uniform methods of selection in all Units for similar jobs.
Panel Selection: The interview must be conducted by a panel, the suggested

composition of which is detailed in the procedures. All interviews for one post must be conducted by the same panel. All candidates will be asked a standard format of questions, which will have been decided by the interview panel prior to the interviews. All questions must be related to the job requirements and the candidates suitability to undertake the role.

Skill Tests: As part of the selection process, Departments may wish candidates to

partake in a series of skills tests. These tests must be directly related to the role in question and must be measurable against objective criteria. Candidates must be informed of the details in the letter inviting them for interview. Details of any skills tests, including the criteria to be measured and the method of measuring must be provided in advance to HRD.

36

 First Round: The first round of Interview should be conducted telephonically

either by the HR or the Department. Head in cases where the candidate is based far away to assess the basic suitability.
Percentage Marks: Keeping in view the qualifications, experience, results of

tests/group discussion, if any and other relevant facts vis-a-vis the specific requirements of the posts and on the basis of the standards of technical skill, professional competence and overall personality factors as assessed from the candidates performance in the interview, the Selection Board will assign a final percentage marks to each candidate considered suitable and recommend a panel of names of all such suitable candidates in order of merit on the basis of the marks so assigned.
Offers of Appointment: Human Resource Department will issue the offers of

appointment in the prescribed form in duplicate and the contract of appointment will be complete on receipt of the letter of acceptance along with the copy of offer duly signed by the candidate.
Joining Date: Based on the length of notice period, for release from the present

employment as indicated in the application form or during interview and depending on the urgency of filling the vacant post, the offer of appointment will state the last date
Training Employees: Those Employees who are joining Organization as a Trainee

Engineer/ On Internship they will get their appointment letter after the completion of Training period after their appraisal process.

37

 Employees who leaved: If Employee leaves before the appraisal or training

period, they will not get appointment letter

IMPORTANCE OF FINANCIAL PLANNING

Financial Planning also helps you to decide upon the right investment strategy. Besides your individual requirement, your investment strategy would also depend upon your age, personal circumstances and your risk appetite. These aspects are typically taken care of during financial planning. Financial Planning also helps to strike a balance between risk and returns. By prudent planning, it is possible to arrive at an optimal mix of risk and returns, that suits particular needs and requirements. Financial planning means putting your money to work to earn more money. Done wisely, it can help you meet your financial goals like buying a new house, paying for college education of your children, of your enjoying a comfortable retirement, or whatever is important to you. You do not have to be wealthy to be an investor. Investing even a small amount can produce considerable rewards over the long-term, especially if you do it regularly. But you need to decide about how much you want to invest and where . To choose wisely, you need to know the investment options thoroughly and their relative risk exposures.

3. FINANCIAL REPORTS

38

3.1 Balance sheet

39

Mar 11(lacs)

' Mar 10(lacs)

' Mar 09(lacs)

' Mar 08(lacs)

' Mar 07(lacs)

Sources of funds
Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus 12.91 43.63 141.25 10.51 46.63 81.98 10.51 3.00 63.53 10.51 3.00 51.58 10.51 3.00 38.90

Loan funds
Secured loans Unsecured loans Total 127.97 41.98 367.74 107.42 29.10 275.63 123.21 40.19 240.43 105.64 30.36 201.09 79.90 33.93 166.24

Uses of funds
Fixed assets Gross block 401.19 Less : revaluation reserve Less: accumulated 151.97 depreciation Net block 249.22 Capital work-in-progress 6.90 Investments 19.11 350.81 121.57 229.24 2.83 8.19 258.58 95.69 162.89 12.26 7.93 226.01 75.68 150.33 9.68 7.75 146.05 0.57 60.37 85.11 37.69 6.00

Net current assets

Current assets, loans & 269.55 advances Less : current liabilities & 177.21 provisions Total net current assets 92.34 Miscellaneous expenses not 0.17 written Total 367.74 180.94 145.80 35.14 0.23 275.63 132.17 74.83 57.34 240.43 108.21 74.89 33.32 201.09 98.74 61.31 37.43 0.01 166.24

Notes:
Book value of unquoted 19.11 investments Market value of quoted investments Contingent liabilities 32.37 Number of equity 129.10 sharesoutstanding (Lacs) 8.19 42.39 105.05 7.93 49.54 105.05 7.75 27.17 105.05 6.00 48.38 105.05 40

3.2 Profit loss account

Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

Income
Operating income 912.31 597.05 454.68 403.46 392.41

Expenses
Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 638.00 25.69 99.52 66.23 829.44 82.87 14.60 97.46 17.15 33.58 46.73 11.83 34.90 -0.06 34.85 90.39 3.87 1.53 0.88 84.11 407.55 17.77 64.88 6.88 28.62 525.70 71.36 1.00 72.35 14.54 26.96 30.85 7.77 23.08 -0.21 22.87 63.72 3.15 0.42 0.59 59.55 309.40 11.36 47.21 5.94 22.04 395.94 58.74 1.01 59.75 16.63 21.43 21.69 5.81 15.89 -0.66 -0.06 15.17 48.23 2.63 0.27 0.49 44.84 281.67 11.68 43.56 5.18 19.29 361.38 42.08 1.21 43.29 11.63 17.12 0.01 14.54 4.09 10.45 5.27 15.72 40.46 2.63 0.27 0.49 37.07 292.89 9.97 30.01 4.40 16.14 353.41 39.01 1.49 40.50 5.27 13.51 0.01 21.71 7.86 13.86 -0.32 13.54 32.12 2.63 0.27 0.49 28.73

41

3.3 Ratios Analysis

42

Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07

Per share ratios

Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs) Dividend per share Operating profit per share (Rs) Book value (excl rev res) per share (Rs) Book value (incl rev res) per share (Rs.) Net operating income per share (Rs) Free reserves per share (Rs) 25.85 51.86 25.80 51.81 3.00 64.19 119.28 119.28 706.66 -0.13 21.57 47.23 21.37 47.03 3.00 67.93 87.82 87.82 568.35 75.65 14.87 35.27 14.18 34.58 2.50 55.92 70.47 70.47 432.82 58.31 9.69 25.99 14.71 31.01 2.50 40.05 59.10 59.10 384.06 47.33 12.93 25.80 12.63 25.50 2.50 37.13 47.02 47.56 373.55 35.81

Profitability ratios
Operating margin (%) Gross profit margin (%) Net profit margin (%) Adjusted cash margin (%) Adjusted return on net worth (%) Reported return on net worth (%) Return on long term funds (%) 9.08 5.40 3.75 7.38 21.67 21.63 17.37 11.95 7.43 3.82 8.36 24.55 24.33 18.96 12.91 8.20 3.32 8.18 21.09 20.12 19.74 10.42 6.18 3.88 6.81 16.39 24.89 15.32 9.94 6.49 3.43 6.95 27.50 26.85 20.94

Leverage ratios
Long term debt / Equity Total debt/equity Owners fund as % of total source Fixed assets turnover ratio 1.39 1.39 41.92 2.27 1.59 1.98 33.55 1.78 1.62 2.25 30.79 1.83 1.75 2.24 30.87 1.86 1.61 2.36 29.71 2.86

Liquidity ratios
Current ratio Current ratio (inc. st loans) Quick ratio Inventory turnover ratio 1.52 1.52 1.08 11.58 1.24 0.86 0.91 15.08 1.77 0.78 1.44 23.36 1.44 0.79 1.12 20.45 1.61 0.72 1.21 19.61

Payout ratios
Dividend payout ratio (net profit) Dividend payout ratio (cash profit) Earning retention ratio Cash earnings retention ratio 14.25 7.10 85.77 92.91 16.68 7.58 83.47 92.46 20.93 8.58 80.04 91.59 20.17 9.57 69.37 88.58 23.50 11.64 77.05 88.50

Coverage ratios
Adjusted cash flow time total debt Financial charges coverage ratio Fin. charges cov.ratio (post tax) 2.48 5.68 4.99 2.73 4.98 4.43 4.38 3.59 3.20 4.93 3.72 3.83 4.16 7.69 6.14

Component ratios
Material cost component (% earnings) Selling cost Component Exports as percent of total sales Import comp. in raw mat. consumed 70.98 4.66 11.00 69.52 1.15 6.21 8.73 67.81 1.30 7.75 7.60 70.79 1.28 5.95 9.37 74.51 1.12 43 4.34 4.90

CHAPTER 4 LESSONS LEARNT

Working Environment Company has a well motivated staff as every employee is engaged in performing

their own work. There is strict discipline regarding working hours in the company which reaps employee turnover. Good working conditions are provided to the employees so that employee can perform their task efficiently. If any employee has any doubt or clarification it can be easily resolved by consulting it with immediate superior. This makes an employee perform the tasks in the manner as required by the company.

44

Appropriate time for break is given to the employees of organisation.

Satisfaction with your present job profile

Findings: The satisfaction level varied in all the three hotels. In the Crowne Plaza highest number people were satisfied followed by THE IMPERIAL and least in claridges. List two welfare activities carried out by your Hotel The respondents at the hotel said that there were many welfare activities that were carried out by the hotel. The employers in all the three hotels provided with : Health and Accident insurance, which typically pays for hospital and doctor, expenses. The Imperial also offered dental plans to employees. The employees in all the three hotel chains are provided with facilities such as transport at early morning and late night hours(after 8:00pm for girls, and 12:00am for boys) And subsidized food.

List two schemes at your hotel aimed at motivating employees. The respondents in all the three hotel chains said that the hotel adapted to various schemes to motivate them. The two schemes that the respondents from all the three hotels discussed were: Fringe benefits that were given to them from time to time to motivate them. Also all the respondents told that the hotels conducted training sessions from time to time to keep them motivated and these training programmes were conducted for all levels of employees. Also there were hotel specific responses like: THE IMPERIAL HOTEL The Imperial Hotel also has benefit options like free family meals at the Hotels own restaurant The Spice Route.

45

They also have parties for staff and managers in their own banquet hall, when the hotel has earned profits.

Inter-hotel cricket tournaments for rejuvenating employees. Laundry Services free for Managers.

Gifts for employees on various festivals. Also special discounts and offers on employees birthdays and anniversaries, like cakes, cookies, assorted chocolates etc..

DIFFICULTIES FACED
The researcher faced some constraints while carrying out primary research:

Time restrictions. The research was conducted through only few employees and very few managers
from all three hotels.

Some people sent the questionnaire back without filling it. In hotels it is difficult to get across to workers without permission from their
managers, they refuse to give out any information pertaining to their hotel.

Sample size cannot be very large as number of people working is not very large as in
call centres and other industries.

Very long and in-depth questionnaires are not entertained.

46

CONCLUSION
The main objective of the dissertation was to study the impact of staff motivation on employee productivity in the hospitability industry. The survey was conducted in three Five Star Hotels of New Delhi namely The Claridges, The Imperial and The Crowne Plaza. Both primary and secondary research were carried out to collect data relevant for the purpose of the study. It is difficult enough to try and define what makes oneself tick, without trying to understand other peoples motivations. The fact that there are so many theories of motivations is an indication of the complexities of the issue. Perhaps the most important point for the potential manager is to consider that there is a very wide range of ways in which someone may be motivated. And that each individual has his/her own individual sets of needs and wants.

47

The study has proved through the survey of Managers and staff members of various Five Star Hotels in New Delhi that the productivity of employees improves when they are motivated. Though the motivation factors for different employees are different, as the physiological needs of two human beings can not be same as per different theories of Motivation. Also the hypothesis that apart from money there are other drivers of motivation holds true, as seen in the results of the survey. This can be clearly understood from the fact that Employees needs move around salaries and job security while Managers look for empowerment and work culture. But it is clear from the survey that Motivated employees are more productive in terms of their performance as compared to employees who are not motivated. Hence organizations must look for new methods other than what are mentioned in this report to motivate all levels of employees so that the employees are able to give their best to the organizations.

RECOMMENDATIONS
In view of the study and the live research conducted, I would like to make a few recommendations to the employers pertaining to motivating their employees. Few of these are generic recommendations and can be adopted by any organization irrespective of their nature of work, whereas rest are specific to the Hotel Industry.. Foster a good superior-subordinate relationship, the management style can make all the difference. It can help develop employees in a more significant way than money can. Enliven your work environment. Make people have fun at work. o Let them have their workplaces, painted and decorated as per their interests. o Send a joke or a motivational quote on email from time to time.

48

o Have dress themes on selective days and reward the best dressed person. Constant training and development helps keep up morale and boosts confidence Delegation of work to employees, makes them more responsible, committed and instills motivation. Recognition and appreciation at work are very vital drivers of motivation. It doesn't cost a thing to add a personal touch to your recognition efforts. People love being singled out, even in these simple ways. o Pleasure call. Call an employee into your office just to thank him or her; don't discuss any other issue during the visit. o Add a note. Add a line to a letter received, a reportee's paycheck or bonus, or just all on its own to say what you liked and why. o Join in. Help your employees when they're under pressure to finish a job. But don't be the "boss." Ask how you can help, and then do what you're told to help out. o Physical evidence. Establish a place to display photos, memos, and other evidence of progress on a major project. Don't wait for people to set something up themselves, and make it clear that everyone is free to post positive items about others and to sign their names as a special tribute. Non cash incentives also help in enhancing motivational levels. Like: o Interesting work. No one wants to do the same boring job over and over, day after day. And while any job will always require some boring, repetitive tasks, everyone should have at least a part of their job be of high interest to them. o Information. Information is power, and employees want to be empowered with the information they need to know to do their jobs better and more effectively. And, more than ever, employees want to know how they are doing in their jobs and how the company is doing in its business. Open the channels of communication in an organization to allow employees to be informed, ask questions, and share information.

49

o Involvement. Managers today are faced with an incredible number of opportunities and problems and, as the speed of business continues to increase dramatically, the amount of time that they have to make decisions continues to decrease. Involving employees in decision making, especially when the decisions affect them directly, is both respectful and practical. Those closest to the problem typically have the best insight as to what to do. As you involve others, you increase their commitment and ease in implementing new ideas or change. o Independence. Few employees want their every action to be closely monitored. Most employees appreciate having the flexibility to do their jobs as they see fit. Giving people latitude increases the chance that they will perform as you desire - and bring additional initiative, ideas, and energy to their jobs.

BIBLIOGRAPHY
Websites
www.hospitalitynet.com www.crowneplaza.com/homepage www.claridges.com/homepage/info. http ://www.google.co.in/delhi5starhotels http://theimperialindia.com/index.php

50

51