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A
DISSERTATION REPORT
ON
A STUDY ON ATTRITION IN HOSPITALITY INDUSTRY
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARDS OF DEGREE OF MASTERS OF BUSINESS

ADMINISTRATION (M.B.A)
(SESSION 2010- 2012)
Under the Supervision of: -

Submitted By:-
Miss. SHWETA CHAUHAN TULIKA
FACULTY, U.I.M. M.B.A.
IV SEM
UTTRANCHAL INSTITUTE OF MANAGEMENT, DEHRADUN
BONAFIDE CERTIFICATE
Certified that this project report titled OFA STUDY ON ATTRITION IN HOSPITALITY I
NDUSTRY" is the bonafide work of Miss TULIKA student of MBA, H.R., 4th semester
who carried out the research under my supervision. Certified further, that to th
e best of my knowledge the work reported herein does not form part of any other
project report or dissertation on the basis of which a degree or award was confe
rred on an earlier occasion on this or any other candidate.
Date: Miss Shweta chau

han
Place: Faculty, Managem
ent
DECLARATION
I hereby declare that dissertation report entitled A STUDY ON ATTRITION IN HOSPIT
ALITY INDUSTRY written and submitted by me under the guidance of Miss Shweta Chau
han, faculty management, U.I.M, Dehradun, is my original work.
The empirical findings are based on data collected by myself. While preparing th
e report I have not copied from any source or other projects submitted for simil
ar purpose.
Date: (TULIKA)
Roll No.
:
Place: MBA 2010
-2012
ACKNOWLEDGEMENT
If words are considered as a symbol of approval and tokens of appreciation then
let the words play the heralding role of expressing my gratitude. It is a moment
of pleasure for me to acknowledge the help and support for those people who mad
e me able to present this dissertation report for evaluation as the partial fulf
illment of Master Of Business Administration.
I take this opportunity to thank and show gratefulness to my guide MS. SHWETA CH
AUHAN (Faculty, Management), Uttaranchal Institute Of Management, Dehradun for h
er precious guidance and mentoring but for which my training here would not been
so rewarding and fruitful.
At last it is my duty to record my heartiest gratitude to my parents and
my family who taught first lesson of life and inspired me to face the hardships
of life. At last, I would like to thank all my U.I.M.a friends for their faith a
nd support.
TULIKA
Contents
1. Introduction
2. Objective Of Study
3. Literature review
4. Research Methodology
Sample size
Method of sampling
Area of work
Parameters of study
Method of data collection
Tools
Findings
Recommendations
5. Conclusion
6. Bibliography
7. Questionnaire
INTRODUCTION:
INTRODUCTION TO THE HOTEL INDUSTRY
According to the British laws a hotel is a place where a bonafied traveler can rec
eive food and shelter provided he is in a position to for it and is in a fit con
dition toreceive.Hotels have a very long history, but not as we know today, way
back in the 6TheCentury BC when the first inn in and around the city of London b
egan to develop. The first catered to travelers and provided them with a mere ro
of to stay under. This condition of the inns prevailed for a long time, until th
e industrial revolution in England, which brought about new ideas and progress i
n 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 bu
siness but also for leisure reasons? This lead to the actual development of the
hotel industry as we know it today. Hotel today not only cater to the basic need
s of the guest like food and shelter provide much more than that, like personal
ized services etc. Hotels today are a Home away from home.
Hotel industry in India has been an important industry to the Indian Economy. It
is one of the largest foreign exchange earners, to the country and also one of
the largest employers, both directly and indirectly.
The hotel industry in India can be divided into eight segments based on the norm
s set by the Ministry of Tourism. They are 5-Star Deluxe, 5-Star, 4-Star, 3-Star
, 2-Star, 1-Star, Heritage and Unclassified. However, the 3-star, 2-star, 1star
and unclassified hotels in India are spread across the length and breadth of the
country and are highly fragmented in nature, whereas, the upscale, mid-market a
nd heritage categories are highly organized. The upscale category hotels are pri
marily present in the metros and the tier 1 cities and are now targeting the tie
r 2 cities for expansion.
The industry is characterized significantly by small unorganized players, labor-
intensive operations, seasonality, cyclicality, highly capital intensive nature
and highly sensitive to the external factors like economy, terrorism and politic
al status.The demand for the hotel rooms is driven by the rise in the number of
the domestic and well as the foreign tourists. The demand for the foreign touris
ts is driven by the level of growth in Global GDP, increased business activities
of other nations with India, growing number of tourist destinations, rise in tr
ade and sporting events, marketing efforts like AtithiDevoBhava & Incredible India.
Domestic tourist arrivals are the backbone of Indian Hotel Industry as the numbe
r of domestic tourists is more than 100 times as compared to foreign tourists. D
omestic tourists are of 2 types, leisure travelers and business travelers. Growt
h in leisure travelers is driven by rising personal discretionary income, evolvi
ng lifestyle, and growing number of multi earner families, weekend vacation cult
ure, and improvement in rail, air as well as road connectivity, diverse topograp
hy and rich cultural heritage. Drivers of domestic business traveling are rise i
n trade and commerce, increasing geographical spread of companies, growing MICE
culture.
In the upscale category, global majors in the hospitality industry like IBIS, We
stin, Novatel, Ritz-Carlton, Sofitel, Pullman, Ista, Aloft, Dusit D2, Shangri la
are planning to enter India or expand their existing operations.
Players like Lemon Tree, IBIS, Park, Sarovar and Ginger have identified that the
re is dearth of quality rooms in the mid-market segment across the country, espe
cially in the tier 1 and tier 2 cities. Approximately, 55 per cent of the upcomi
ng inventory is expected to be in the mid-market and economy segment. Entry of s
uch organized players is expected to improve the quality of offerings and bridge
the wide gap between mid-market and upscale category.
CARE Research has identified ten major cities for study of Hotel Industry in Ind
ia. These cities represent a healthy mix of business and leisure destinations wi
th varied topography and culture. These ten locations are expected to see a surg
e in room inventory. Overall, CARE Research expects about 27,000-28,000 rooms to
be added in the upscale category in the ten cities up to CY15. CARE Research be
lieves that the performance of the industry in the medium term will be a mixed r
esult, with some cities showing a robust growth, whereas some cities will suffer
due to the huge supply influx.
SWOT ANALYSIS OF HOTEL INDUSTRY

1. Natural and cultural diversity: India has a rich cultural heritage. The "unit
y in diversity" tag attracts most tourists. The coastlines, sunny beaches, backw
aters of Kerala, snowcapped Himalayas and the quiescent lakes are incredible.
2. Demand-supply gap: Indian hotel industry is facing a mismatch between the dem
and and supply of rooms leading to higher room rates and occupancy levels. With
the privilege of hosting Commonwealth Games 2010 there is more demand of rooms i
n five star hotels. This has led to the rapid expansion of the sector
3. Government support: The government has realized the importance of tourism and
has proposed a budget of Rs. 540 core for the development of the industry. The
priority is being given to the development of the infrastructure and of new tour
ist destinations and circuits. The Department of Tourism (DOT) has already start
ed the "Incredible India" campaign for the promotion of tourism in India.
4. Increase in the market share: India s share in international tourism and hosp
itality market is expected to increase over the long-term. New budget and star h
otels are being established. Moreover, foreign hospitality players are heading t
owards Indian markets.
WEAKNESSES
1. Poor support infrastructure: Though the government is taking necessary steps,
many more things need to be done to improve the infrastructure. In 2003, the to
tal expenditure made in this regard was US $150 billion in China compared to US$
21 billion in India.
2. Slow implementation: The lack of adequate recognition for the tourism industr
y has been hampering its growth prospects. Whatever steps are being taken by the
government are implemented at a slower pace
3. Susceptible to political events: The internal security scenario and social un
rest also hamper the foreign tourist arrival rates.
OPPORTUNITIES
1. Rising income: Owing to the rise in income levels, Indians have more spare mo
ney to spend, which is expected to enhance leisure tourism.
2. Open sky benefits: With the open sky policy, the travel and tourism industry
has seen an increase in business. Increased airline activity has stimulated dema
nd and has helped improve the infrastructure. It has benefited both internationa
l and domestic travels.
THREATS
1. Fluctuations in international tourist arrivals: The total dependency on forei
gn tourists can be risky, as there are wide fluctuations in international touris
m. Domestic tourism needs to be given equal importance and measures should be ta
ken to promote it.
2. Increasing competition: Several international majors like the Four Seasons, S
hangri-La and Aman Resorts are entering the Indian markets. Two other groups - t
he Carlson Group and the Marriott chain - are also looking forward to join this
race. This will increase the competition for the existing Indian hotel majors.
NOW A DAYS HOTEL INDUSTRY IS FACING KEY CHALLENGES IF EVERY ASPECTS

1. Shortage of skilled employees: One of the greatest challenges plaguing the ho
spitality industry is the unavailability of quality workforce in different skill
levels. The hospitality has failed to retain good professionals.
2. Retaining quality workforce: Retention of the workforce through training and
development in the hotel industry is a problem and attrition levels are too high
. One of the reasons for this is unattractive wage packages. Though there is boo
m in the service sector, most of the hotel management graduates are joining othe
r sectors like retail and aviation.
3. Shortage of rooms: The hotel industry is facing heavy shortage of rooms. It i
s estimated that the current requirement is of 1, 50,000 rooms. Though the new i
nvestment plan would add 53,000 rooms by 2011, the shortage will still persist.
4. Intense competition and image of India: The industry is witnessing heightened
competition with the arrival of new players, new products and new systems. The
competition from neighboring countries and negative perceptions about Indian tou
rism product constrains the growth of tourism. The image of India as a country o
verrun by poverty, political instability, safety concerns and diseases also harm
s the tourism industry.
5. Customer expectations: As India is emerging as a destination on the global tr
avel map, expectations of customers are rising. The companies have to focus on c
ustomer loyalty and repeat purchases.
6. Manual back-end: Though most reputed chains have IT enabled systems for prope
rty management, reservations, etc., almost all the data which actually make the
company work are filled in manual log books or are simply not tracked.
7. Human resource development: Some of the services required in the tourism and
hotel industries are highly personalized, and no amount of automation can substi
tute for personal service providers. India is focusing more on white collar jobs
than blue collar jobs. The shortage of blue collar employees will pose various
threats to the industry.
TRENDS IN HOSPITALITY SECTOR

Trends that will shape the future of hospitality sector are:
1. Low Cost Carriers
2. Budget Hotels
3. Service Apartments
4. Technology
5. Loyalty Travel
1. Low cost carriers: Travelers in general are more price sensitive to airfare t
han they are to hotel room rates. Often a low airfare will stimulate demand for
travel even if hotel prices are increasing. LCCs are a good option for business
travelers, as they have advantages like low costs, more options and connectivity
.
2. Budget hotels: More than 50 per cent of occupancy of a majority of hotels com
es from the business travel segment. The average room rate (ARR) realized from b
usiness travelers is normally higher than from leisure travelers. Heightened dem
and and the healthy occupancy rates have resulted in an increase in the number o
f budget hotels. Some of the new players entering into this category of hotels i
nclude Hotel, Kamfotel, Courtyard by Marriott, Country Inns & Suites, Ibis and F
airfield Inn.
3. Service apartments: The concept of service apartments, though a recent phenom
enon in India, is an established global concept. Villas in Spain, flats in the U
K and apartment complexes in the US have all created a viable market for those w
ho want more than just a room in a hotel. Service apartments are the latest tren
d in accommodation, offering the comfort and convenience of a home without the h
assles of having to maintain or look after it. Ideally suited for medium-to-long
staying guests, service apartments are a natural choice for corporate employees
or expatriates relocating to a particular city, non-resident Indians visiting t
he country for long spells and foreigners visiting the city for long duration.
4. Technology: Travel and technology have become inseparable. Technology is maki
ng its own advances with high-tech video conferencing facilities, web cameras an
d virtual reality mode of conferencing. On-line bookings, e-ticketing, Wi-Fi Int
ernet connectivity, easy access to information, etc. are just a few areas where
technology has completely changed the way we travel.
5. Loyalty travel: Today, airline-credit card company tie-ups have brought a who
le range of benefits to the travelers. These include insurance cover, upgrades,
free tickets, access to executive lounges, and a host of other goodies.
OBJECTIVE OF THE STUDY

The aim of this dissertation is to further understand the current and future tre
nds of the hotel industry in India. Exactly how is the industry coming of age an
d what are the new elements emerging within the industry. The reason behind the
selection of this topic is that while not much has been written on it so far, th
ere is a lot to be discovered and researched.
The hotel industry is one of the big new industries of the future. There is pro
jected shortfall of over 100,000 hotel rooms. The Indian economy is growing be
tween 8 to 9%, resulting in demand for more mid-market business and leisure hote
ls.
The objectives of the research were to:
Recognize and evaluate the problems of the workers in hotel industry
To draw an attrition risk matrix.
To know employees of hotel industry, their performance and working era and
perception towards attrition.
To determine the potential, stability of attrition rate in the near future.
The research looks into the impediments and challenges that the industry is faci
ng with the human resource crunch and rising land prices.
The approach was to identify the scope of growth and the likely hurdles on the w
ay.
In keeping with this target, five of the top professionals from the industry wer
e interviewed, who are looking at development, stand alone and chain hotels. \
LITERATURE REVIEW
As cited b y Taylor, since the late 1990s, the overall national figur
e reported by theca and CBI surveys has been between 15 and 20 perc
ent, which is quite high by historical standards reflecting strong econ
omic conditions and the presence of tightlabour mark ets. By contrast, in
the early 1990s recessionary y conditions led to national turnover rates of
only 10 percent. The more opportunity people have to move ,As cited by
Taylor (1 998), aside from the costs directly associated with the resig
nation, there are further good reasons for employers to minimize the n
umbers of employees leaving
Taylor (1998) argues that some writers have emphasized the potentially
positive effects of a continuous transfusion of fresh blood into the
organization.
The ratio of the number of workers that had to be replaced in a given time perio
d tothe average number of workers is the staff turnover or employee turnover (Ta
ylor, 2008). It is gaining or losing employees at a particular rate measured. It
is measuredor individual companies and for their industry as a whole. If an emp
loyyear is said to have a high employee turnover relative to its competitors, it
means that employees ofHat Companyhave a shorter average tenure than those of o
ther companies in the same industry. Employee turnover is not good for the orgen
erations. High r ate of turnover ay lead to decrease in productivity, service de
livery and spread of organisationsinformation or knowledge (naukrihub.com, 2010).
There could be many reasons for employee turnover, while some depart involuntari
ly as a result of dismissal, redundancy or forced retirement, the vast majority
resign of their own volition some to take up new jobs, others to take a permanen
t ortemporary break from participation in the workforce, some to start new busin
esses of their own (Taylor, 1998). As per Taylor (1998) there ar e two types of
employee turnover voluntary and involuntary turnover. Taylor broadly defines tha
t voluntary release or turnover includes all resignations not formally initiated
by the employer.
On the other hand involuntary release could be initiated by the employer. Taylor
argues that voluntary release are avoidable and co ntrollable which includes em
ployees who quit primarily because of dissatisfaction with some aspect of their
job or theorganisation whereas involuntary are un avoidable that would have occu
rredanyway and uncontrollable reasons make that happen such as resignation by an
employee because of ill health, relocation of spouses, etc.
Few reasons of voluntary release may be (naukrihub.com, 2010):
Compensation package d ifferencesJob and employee skill mismatch: the job
may be less or more challenging according to the employee
Inferior facilities, tools, etc.
Less reco gnition
Less or no appreciation for work done
Less growth opportunities
Poor training
Poor supervision
Less work and life balance practices
Employers, the more likely they are to do so. As per Taylor man y belie
ve high turnover results in skills shortages and according to this the
ory skills shortages constrain productivity, which leads to lower output
and higher unemployed t. Thus, changes in the labour market create ups and do
wns of the economic cycle.
Prior research has offered mixed conclusions based on both theoretical
and empirical analysis and according g to previous research that turnove
r has negative effects on operating performance due to disruption of e
xisting routines. Others have suggested that firms may benefit from the
innovative thinking or increased motivation that networkers bring to the
job (scribd.com, 2010). There is no set level ofemployee turnover that dete
rmines at what point turnover starts to have a n negativeimpact on anOrganizatio
ns performance. Ever thing depends on the type of labour markets in whic
h you compete. Where it is relatively easy to find and train new em
ployees quickly and at relatively little cost (that is where the labou
r market is loose), it is possible to sustain high quality levels of
service provision despite having a high turnover rate (cipd.co.uk, 2010).
By contrast, where skills are relatively scarce, where recruitment is cost
ly or where it takes several weeks to fill a vacancy, turnover is li
kely to be problematic for the organization. This is especially true of s
ituations inwhich you are losing staff to direct competitors or where
customers have developed relationships with individual employees.
This means some employee turnover positively benefits organizations. This happ
ens when a poor performer is replaced b y a more productive employee, and
can happen when a senior retirement allows the promotion or acquisition of
welcome fresh blood . A functionalturnover (that is, beneficial) serves to
promote innovative ideas and methods and canthus renew a stagn ating o
rganization. Modern ate levels of staff turnover can also help to reduce
staff costs in organizations where business levels are unpredictable m
onth on month. When business is slack it is straightforward to hold o
ff filling recently created vacancies for some weeks ( cipd.co.uk, 20 10).
Resignation from a valuable employee could be more damaging when theye
y move onto Work for competitors. . These include productivity losses,
impaired quality of service, lost business opportunities, an increased
administrative burden and employee demoralization. Thus, it is safe to
conclude that, for mostorganizations, turnover in ex cess of 5-10 perc
ent has more negative than positive consequences.
Employee retention is a process in which the employees are encouraged
to remain with the organization for the maximum period of time or un
til the completion of the project. Employee retention is beneficial for the
organization as wellas the employee.
Employees today are different. They have got good opportunities in hand because
of the wide market. As soon as they feel dissatisfied with the current
employer or the job, they switch over to the next job (Taylor, 1998
). It is the responsibility of the employer to retain their best employees
. If they dont, they would be left with no good employees. A good employer should
know how to attract and retain its employees. Its not only the cost incurre
d by a company th at emphasizes the need of retaining employees but
also the need to retain talented employees from getting poached. The pr
ocess of employee retention will benefit an organization in the following ways(n
uakrihub.com, 2010): The purpose of the literature review, to takee a broader pe
rspective, is to remove the need to rediscover knowledge that has alr
eady been reported (Fisher, 2007). The literature review helps researche
r to build upon the work that has already been done in the field, r
esearcher is researching. According to Saunders, Lewis and Thorn hill (2
009), reviewing the literature critically provides the foundation on which
the research is built. Its main purpose is to help the researcher to develop
a good understanding and Insight into relevant previous research and the trends
that have emerged.
Improving employee retention
The first two steps to take when developingan employee retentionstrategy are tof
ind out:
Why employees in hard to recruit groups are leaving?
What employee turnover among these groups is costing an organization?
Data from exit interviews can be used to develop a coasted retention
strategy that focuses on particular causes of turnover in a particular organiz
ation. Following are the elements which play a positive role in improving retent
ion (cipd.co.uk, 201 0):
Job previews:
A realistic job preview should be given to the prospective
Employees at the recruitment stage. One should not raise employees
Expectations so that it effects later. Advances in technology present employher
ewith increasing opportunities to familiarize potential candidates with
theorganisation before they accept a position.
Line managers accountable:
Line managers should be made accountable for staff turnover in their teams. Rewa
rd managers with a good record for keeping peopleby including the subject in app
raisals. Line managers should be trained
in people management and development skills before being appointed or
Promoted. Re-training opportunities should be offered to existing manager
Who have a high level el of turnover in their team?
Career development and progression:
Organizations should try y to maximize opportunities for individual employe
es to develop their skills and move on in their careers. Where promotion
s are not feasible, a company can look for sideways moves that vary exper
ience and can make the work more interesting.
Consult employees:
Employees should be given enough chance to voice through consultative bodi
es, regular appraisals, attitude surveys and grievancesystems. This will
provide dissatisfied employees with a number ofchanisms to sort out pr
oblems before resigning. Where there is no opportunity to voice dissatisfacti
on, resigning is the only option.
Be flexible:
Wherever possible an employees working hours preferences
Should be taken care of. Where people are forced to work hours that do
not suit their domestic responsibilities they will invariably be lookin
g for r another job which can offer such hours.
Avoid the development of a culture of presenters:
Where people feel obliged to work longer hours than are necessary simp
ly to impress management. Evaluation of individual commitment should bebased
onresults achieved and not on hours put in.
Job security:
Organizations should provide asmuch job security as possible.
Employees who are mad e to feel that their jobs are precarious may put a
great deal of effort in to impress, but they are also likely to be
looking for more secure employment at the same time. Security and stabilit
y are greatly valued by most employees.
Treat people fairly:
Discrimination against employees should be avoided. A
perception o f unfairness, whatever the reality when seen from a manage
ment point of view, is a major cause of voluntary resignations. While
the overall level of pay is unlikely to play a major role unless it i
s way below the market rate, perceived unfairness in the distribution of rewa
rds is very likely to lead to resignations.
Defend your organization:
Organizations should defend themselves against enetration by headhunters
and others seeking to poach your staff. Keep internal e-mail addresses
confidential, refuse to do business with agents who aver poached your
staff, and enter into pacts with other employers not to each one anoth
er s staff.
EXCUTIVE SUMMARY
ITC Maurya, New Delhi
ITC Maurya, a premier 5 star hotel in Delhi is named after the famous Mauryan dyna
sty which gave Indian history its golden age where art, culture and architecture
flourished. This luxury hotel in Delhi has 440 rooms, including 29 uniquely-desi
gned suites, are available in a bouquet of room categories, from the Executive C
lub which pioneers a tradition in corporate hospitality to the Towers eight luxur
ious floors of elegance and tranquility. The Mauryan Chamber combines the best o
f opulence, space, and service standards and the ITC one PURE rooms our premium
room category offers an allergy friendly environment with magnificent decor, imp
eccable service, and the latest in modern conveniences and amenities. Behind the
lavishness is a crisp efficiency and a deep understanding of the needs of the g
lobal traveler.
Accommodation
Luxury, space and service opened with warm courtesy and a smile that captures th
e
Essence of India.
The hotel has 440 rooms, including beautifully designed suites. The divergent ro
om
Categories are all designed to meet the needs of our various guests and include:
Executive Club Rooms (288 sq. ft.) - Elegant rooms with contemporary
In-rooms facilities.
The Towers (330 sqft) - Exclusive wing with a separate check in/check out
Desk. These rooms have their own Towers club, library bar and private
Boardrooms.
Eva Rooms (330 sqft) - These rooms which are located in the Towers annexe
Are exclusively designed with special amenities and women butlers to meet
the needs of the single lady traveler.
Mauryan Chambers (575 sqft) - These spacious rooms include an ante
Room, a sitting entertainment area, plush bathing space providing the best
Combination of luxury, space and service.
ITC One PURE Rooms (440 sqft) - Situated in an exclusive wing with a
Separate check in/check out desk, these rooms over state-of-the-art in-room
Facilities, exclusive lounge, personal butler and other services that anticipate
The guests every need. With a private den, leather recliner, a mini bar and an
o_ce alcove, these are the _rst hotel rooms in India to be PURE. They have
Been specially pureed using a six-step process to make them allergy
Friendly.
Deluxe & Luxury Suites (485 sq. to 640 sq.) - Beautifully designed with
a harmonious balance between the classic and the modern, these sprawling
Suites de_ne grandeur and luxury.
Presidential Suites (1022 sq.ft.) - The exclusive Presidential Suites are
Synonymous with opulence, luxury, comfort and style and are equipped
With state-of-the-art business and security features. These are your own
Private apartments with a dining room, spacious bathrooms and opulent
DIVISION OF DEPARTMENT IN THE PALACE
The departments are classified into two broad categories:
Operational
Palace service - Name given to butler service, as itcmaurya is a palace he prope
rly
Food and Beverage (Production)- The kitchen and bakery section
Food and Beverage (Service)- In charge of the sale and service of food and bever
age in the hotel
Housekeeping-Responsible for the cleanliness, maintenance & aesthetic up keep of
the hotel
NON-OPERATIONAL
Human-resource- In charge of employee development & manpower recruitment
Finance and accounts- Take acre og the balancing and auditing of the managers an
d employees work
MAINTANANCE-Ensure smooth functioning of all kinds of equipment and appliances.
Sales and Marketing- Building public relation and maintain customer relationship
Security-Ensure security in the palace.
Attrition
Attrition is one of the most serious concern of the organizationtoday, irrespect
ive of the industry in which they are operating attrition is all about people us
ing organization with the highest promotion and using no uspect and commitment t
o the coh they rampancy in which they are walking.
Attrition Rate
The term attrition rate can be defined as "A reduction in the number of employ
ees through retirement, resignation or death." It denotes the percentage change
in the labour force of an organization. High percentage of labour turnover is no
t desirable for the organization because new workers are engaged in place of the
workers who left the organization
According to HUMAN RESOURCE DICTIONARY" in training the percentage of employee t
rainees dropped from training as a result of their failure to make progress or a
chieve desired result" is known as attrition rate.
Generally one to notice the following types of attrition in any organization-
Fresher attrition - the member of fresher who leaves the concern within a year .
It tells how many are using the company as a springboard.
Infant Mortality-percentage of people who leaves the concern within one year .Th
is indicates the case with which people adapt to the company.
Critical resource attrition- This is key man exit
Low performance attrition- Those who leaves due to poor performance.
A graded system can probably predictthe true picture of an organization as the m
anpower is distributes among different department, where similar tasks are group
ed together which makes easier for the observer to the lapses.
Why Attrition Happens:
Attrition happens in two ways, one is because of employer and other is because o
f employee
1. Higher pay
2. Work timings
3. Career Growth
4. Higher education
1. Workplace / Environmental Influences:
Working hours and toughness of work will play major role in employee satisfactio
n. Employee will see for other opportunities if working hours wont suitable to sp
end for his personal life and family.
2. Training:
Besides the induction and project training, not much investment has been done to
evolve a "continuous training program" for the agents. Motivational training is
still to evolve in this industry
3. Vague Vision & Values:
Senior management must articulate a clear and compelling vision for the organiza
tion in order for it to succeed. People join and stay with companies where they
feel their job is important to organizations growth.
5. Lack of Positive Direction:

Poorly prepared management can potentially communicate an undesirable message of
apathy andfrustration to employees, which can be detrimental the growth of the
organization.6.Limited or Lack-Lustre
6. Training:
Employees want to continually upgrade their skills and expect that employers w
ill facilitate. In fact, research shows that employees are three times more like
ly to leave a company that does not provide job-related training.
7. Hiring that Misfires:
While hiring people have to check whether candidate fits for organizational cu
lture and job environment. Because best suited employee can be stick to organiza
tion for longer time
8. Women in Workforce:
Most of women leave work after marriage or because of social pressure in working
hours or working place. It is true in most cases in Hotel industry because of w
ork timings.
9. Inadequate Managers:
The companies should have the foresight to invest in management teams that can g
row faster than the production staff. A lot of firms are losing people because t
heir managers are too thinly staffed who are always fighting fires rather than d
oing proactive work.
10. Employee Database Leakage:
Normally database leakage will happen because of the HR staff or database admin
istrators or any other employee when he joins another organization or through ou
tsourced human resource vendors. It will lead to attrition.
11. Overwork & Burnout:
Unrealistic expectations are de-motivators, not incentives. Irregular hours and
meal-times, lack of rest resulting in physical strain, high-stress environments,
etc., cause employees to burn out and re-evaluate their willingness to work in
places like call centers.HR managers have work on these aspects to get reduction
in Attrition.
Background
Attrition has emerged as the learning concern today due to several factors .Many
meeting concern points to the internet as the primary curprit; however there ar
e other factors that have contributed to the rapid rise of this new concern. In
early 201, the U.S economy began to weaken and the business travel market starte
d a significant downward trend. This unfortunate reality, combined with the effe
cts of the terrorist attacks in the fall of 2001, took what had been a healthy t
rend market and turned it upside down. It was those economic condition coupled w
ith their growing popularity of the internet as event organizer to meet their pe
rformance based commitment with hotel partners.
In response to the growing concern over attrition, industry leaders in early 200
3 to discuss an appropriate response and course of attrition as a result of thes
e discussion, the convention industry council launched project attrition in Apri
l of 2003 .This short-term industry collaboration was designed to help educate t
he meetings, Connections and exhibitions industry on the issue and simultaneousl
y pursue solution to minimize the impact of the problem.
ATTRITION COMPONENTS:
1)case study resource- The development of an outgoing industry resource servant
case study information .The recourse provide an opportunity fir meeting professi
onals to gain knowledge of techniques and policy arrangement that are being succ
essfully utilized by other meeting professionals.
2)educational tools- The development of planning templates and timelines designe
d to exist organizer, the convention and bureau executive and the hostel executi
ve in minimizing attrition potential.
3) Industry research- The implementation of an industry wide researcher study of
both the event organizer and the attitude exhibitions.
4) Technology Review-A review and analysis of the available technology resource
for the industry.
5) Long term recommendation- A serious of long term recommendation on the attriti
on issue will be reported to the APEX using and registration.
6) Legal consideration for event management- A review of approaches to shifting
the risk and the bonded of attrition through inclusion of attrition and force ma
jored clauses in event
Contracts.
WHY PEOPLE LEAVE?
Most employees leave their work for reasons other than money - and your organiza
tion can correct these reasons. Most leaving employees seek opportunities that a
llow them to use and develop their skills. Leaving employees want more meaning i
n their work ... they often indicate that they want to use their qualities and s
kills in challenging teamwork led by capable leaders.
Hourly employees notice whether they are treated with respect, have capable mana
gement and interesting work
Clerical employees voice concerns such as "type of work," "use of skills and abi
lities" and "opportunities to learn"
Professional employees cite concerns about "supervisory coaching and counseling,
" "company direction" and interesting work
Managerial staff cite "career growth" and "leadership" as the major factors that
influence their decisions to stay or leave, together with "opportunities for ma
nagement" "ability of top management" "use of skills and abilities" and "work/fa
mily balance"
Right candidate for the right job. One important aspect of hiring is in defining
the job responsibilities of the new-hire.
Do the hiring managers give adequate details on the job requirement?
Are the line managers involved in the short-listing and interview process.
Are the job-descriptions consistent and available to all people in the hiring pr
ocess.
Without well-defined job-descriptions that are available to all people in the re
cruitment process, it may be difficult to identify the right candidates. Most at
trition happens because we try to fit a round peg in a square hole.
Off boarding. "No one utilizes my capability & capacity for work", said one empl
oyee in an exit interview. In organizations where no process exists to manage Of
f boarding, there may be many such unnoticed employee separations.
HR Strategy. Most management teams are focused on increasing revenues & profits.
While it is true that most organizations exist primarily for financial growth,
it is important to realize that this growth is not sustainable without keeping a
unified and integrated HR strategy in mind.
Tracking achievements. Employees are hired based on their past experience and tr
ack-record and it is assumed that they will do well in the new job. However, act
ual performance is a true test of their capabilities.
If you can t assign goals and track achievements periodically, how do you differ
entiate between the performers and non-performers - and reward them appropriatel
y? This may frustrate talented employees and they may look elsewhere - where the
y are appreciated more.
Planning Growth. Without capabilities to assign and track goals, managers cannot
look at the performance of their reportees objectively.
Employees cannot be counseled regularly and effectively.
Performance evaluation tends to be subjective with primary aim being completion
of the performance appraisal process.
Development needs cannot be identified at line-manager level.
It is difficult to launch schemes that recognize performers - such as Pay for Pe
rformance
Training is not effective and does not map to required development needs.
In such a scenario, how do you plan the growth of high potential employees?
Our experience indicates that over a period of time those employees quit, who ar
e not recognized adequately yet have the maximum capability to deliver. They per
ceive that their current organization cannot offer them the challenges, growth &
recognition matching with their career ambitions.
Identifying the Problem of workers in hotel
Many problems are complex and ill-defined.
Communication skills in reference to English
Complex working hours
Low pay scale
Innovative Workforce Solutions to Help the Hospitality Industry.
In June 2005, the U.S. Department of Labor has announced a series of investments
totaling more than $2 million to address the workforce needs of the hospitality
industry. These investments result from forums which the U.S. Department of Lab
or hosted over the past year with industry leaders, educators, and the public wo
rkforce system to identify the industry s hiring, training, and retention challe
nges.
DOL has sought to understand and implement industry-identified strategies to con
front critical workforce challenges. It has listened to employers, representativ
es from industry associations, and other stakeholders in the hospitality industr
y regarding their efforts to identify challenges and implement effective workfor
ce strategies. However, the challenges they face are too complex for one organiz
ation to solve alone. DOL s Employment and Training Administration is supporting
comprehensive partnerships that include employers, the public workforce system,
and other entities that have developed innovative approaches that address the w
orkforce needs of business while also effectively helping workers find good jobs
with good wages and promising career pathways in the hospitality industry.
All too often, employers and employees fall into disagreement. Sometimes it is o
ver a simple issue, like arranging vacation days so the office is always covered
. At other times the conflict may grow out of a larger problem, such as the numb
er of paid holidays each year.
Larger companies sometimes resort to larger efforts for resolving disputes, such
as unions, arbitration, or mediation. Smaller companies, however, typically man
age internal differences informally, through meetings or collaboration.
If you work for a company that is struggling with small-scale discord, here are
a few ideas that might help:
. Get the parties who disagree to write about their perspectives. Sometimes orga
nizing a problem on paper can help frame it in a way that makes sense to the per
son(s) who have raised it. Outlining a problem in writing helps a writer to expl
ore features and consider solutions before bringing it forward to others. This w
ay, potential concerns or objections can be anticipated and planned for.
2. Arrange a meeting for conflicting parties to discuss the written concerns. Ea
ch group may want to nominate a spokesperson. If there are several groups, admin
istrators may decide to meet with each separately. Have a secretary available wh
o can take careful, objective notes of the proceedings. Ask for a summary of the
problems and a list, if any, of possible solutions or compromises, as well as a
ny action steps that have been recommended.
3. If resolution is not achieved by a first round of meetings, a second round ma
y need to be scheduled. Try to set the follow-up session off company property, p
erhaps at a local hotel or restaurant conference room, for a neutral environment
. Have soft drinks and snacks available, or perhaps a meal. A relaxed atmosphere
can contribute to a proactive discussion.
4. Encourage all parties to negotiate rather than maintain an inflexible stance,
and to compromise rather than insist on others capitulation. You may want to d
istribute a list of positive suggestions for participants to follow during the m
eetings, especially if known or suspected hot heads will attend.
5. When things cool down, schedule a conflict resolution workshop to prepare emp
loyees for future disagreements. Bring in an expert who can objectively share te
chniques to benefit all company employees on a wide variety of employment-relate
d topics, such as interpersonal conflict, benefits, management issues, and job d
uties. Keep printed materials on hand for distributing to staff members who may
need them to address one-to-one or small-scale disagreements.
6. Emphasize company harmony. Employee picnics, award events, a company newslett
er, and other activities help to focus people s attention on the organization s
strengths. While keeping employees informed of all major news, avoid accenting e
vents that emphasize bad news or problems.
7. Discourage gossip, the company grape vine, or rumor mills, which can breed fa
lse alarms and discontent. Promote an open environment that protects confidentia
lity, nurtures equality, and encourages free (though respectful) expression.
Disputes are an inevitable part of any organization. Take proactive steps to lim
it and control conflict before it damages company employees and interests. A hea
lthy approach to handling conflict can lead to a more productive workplace for a
ll
COST OF ATTRITION
There are a number of costs which are incurred by a BPO when they hire any new e
mployee. These costs can be in terms of monetary or can be in terms of time wast
ed or any other intangible things. Some of these costs can be as stated below: -
I. Recruitment Costs:
1. The cost of advertisements; agency costs; employee referral costs; internet p
osting costs.
2. The cost of the internal recruiter s time to understand the position requirem
ents, develop and implement a sourcing strategy, review candidates backgroun
ds, prepare for interviews, conduct interviews, prepare candidate assessments, c
onduct reference checks, make the employment offer and notify unsuccessful candi
dates. This can range from a minimum of 30 hours to over 100 hours per position.
3. Calculate the cost of the various candidate pre-employment tests to help asse
ss candidates skills, abilities, aptitude, attitude, values and behaviors.
II.Training Costs
1.The cost of orientation in terms of the new person s salary and the cost of th
e person who conducts the orientation. Also include the cost of orientation mate
rials.
2.The cost of departmental training as the actual development and delivery cost
plus the cost of the salary of the new employee.
3. The cost of the person(s) who conduct the training.
4. The cost of various training materials needed including company or product ma
nuals, computer or other technology equipment used in the delivery of training.
III. Lost Productivity Costs
As the new employee is learning the new job, the company policies and practices,
etc. they are not fully productive. Use the following guidelines to calculate t
he cost of this lost productivity:
1. Upon completion of whatever training is provided, the employee is contributin
g at a 25% productivity level for the first 2 4 weeks. The cost therefore is 75%
of the new employees full salary during that time period.
2. During weeks 5 - 12, the employee is contributing at a 50% productivity level
. The cost is therefore 50% of full salary during that time period.
3. During weeks 13 - 20, the employee is contributing at a 75% productivity leve
l. The cost is therefore 25% of full salary during that time period.4. Calculate
the cost of mistakes the new employee makes during this elongated indoctrinatio
n period.
IV.New Hire Costs
1.The cost of bring the new person on board including the cost to put the person
on the pay roll, establish computer and security passwords and identification c
ards, telephone hook ups, cost of establishing email accounts, or leasing other
equipment such as cell phones, automobiles.
2.The cost of a manager s time spent developing trust and building confidence in
the new employee s work
V. Lost Sales Costs
1. Calculate the revenue per employee by dividing total company revenue by the a
verage number of employees in a given year. Whether an employee contributes dire
ctly or indirectly to the generation of revenue, their purpose is to provide som
e defined set of responsibilities that are necessary to the generation of revenu
e. Calculate the lost revenue by multiplying the number of weeks the position is
vacant by the average weekly revenue per employee. Thus we can say that if a pe
rson leaves a job company has to suffer losses as it involves many costs.
EIGHTEEN RETENTION TOOLS FOR CURBING ATTRITION RATE
In today s scenario ATTRITION has become the most dangerous alarm to all HRemplo
yees ears and Organization is facing troubles to fight it out. Suggested Retentio
n Tools for curbing attrition to a great extent are submitted herewith. These ne
ed not be brainstormed and implementation strategy should be worked out immediat
ely.
1. OFFER COMPENSATION ATTRACTIVE AND COMPETITIVE:
Fair compensation alone does not guarantee employee loyalty, but offering below-
market salaries makes it much more likely that employees will look for greener p
astures. Use of Industry Surveys and other data tools to stay informed on wage t
rends. To benefit both company and employees, tie increased one time performance
pay to meeting specific goals aligned with business objectives. Collect data fr
om exit interviews to document trends from your departing employees, and then us
e this data to make business case for increasing salaries across the board. Go f
or Employee Engagement Surveys / ESS, to find out what perks, benefits and forms
of compensation other than money will help keep them motivated. Let employees d
ecide their own compensation package / reimbursements once the quantum is fixed.
Pay Exception is a procedure at FedEx, which allows managers to recommend and g
ive exceptional pay increases to their highly performing employees when it is no
t covered by normal policy. Extensive performance measuring scheme and incentive
policies by Sasken Communications, Awards and recognition like "Best project" ,
"contribution, mentorship" by Aztec Software and Formal Individual / group recog
nition at departmental / organization levels by Intel Technologies India Pvt Ltd
are few outstanding examples.
2.TRAIN YOUR FRONT-LINE, MANAGERS AND ADMINISTRATORS.
Improve managers leadership, communication and interpersonal skills throughcoach
ing,training and feedback. Rate these key skills in their evaluations, and tieco
mpensation toperformance.Create a safe environment and process for employees to
bring up concerns with theirmanagers.In Whirlpool Appliances, there are highly s
elective leadership developmen mentor programs. Managers selected to participate
as mentors go through a rigorous selection process and are then monitored close
ly to ensure that only managers who consistently produce results remain in the p
rogram.
3.. ROLES AND RESPONSIBILITIES NEEDS TO BE DOVETAILED
.Make sure your employees know what is expected of them every day, every monthan
devery year, what types of decisions they are allowed to make on their own, and
towhomthey are supposed to report. Provide clear vision, brawny and consistent c
ommunication, teamwork and respect for human capital efforts. Share the company v
ision/mission clearly and regularly. Collaborate, communicate and listen. Conten
ted employees achieve amazing things.EliLilly & Co.(India) Pvt. Ltd has a Red Bo
ok on Code of Business Conduct which provides standards for conducting business
consistent with the company s legal obligations,globalpolicies and co values. Em
ployees are taken through the corporate values, visionandmission and Red Book..
4..ENHANCEMENT, ADVANCEMENT AND PROGRESSION OPPORTUNITIES
To foster employee loyalty, implement a career ladder and make sure employeeskn
owwhat they must do to earn and go in for progression. A clear professional deve
lopmentplangives employees an incentive to stick around. Do away with you Perfor
manceManagementSystem if it has turned to NOVA (Non Value Added Activity) and go
in for instantperformance rewards. Think! Think out of the box! Assess employees
performanceagainst the focus areas set in their performance agreement for the ap
praisal year and improves their proficiency.
5.. OFFER RETENTION BONUS:
Employee longevity typically is rewarded with an annual raise and mandatory vaca
tion time after three, five or ten years. But why not offer other seniority-base
d rewards such as a paid membership in the employee s professional association a
fter one year, a paid membership to a local gymnasium and clubs after two years,
and full reimbursement for the cost of the employee s formal dress. Build a hig
h degree of recognition value into every reward you offer. Reduce entitlement sa
nd link as many rewards as possible to performance. Troubleshoot your reward sys
tem to make sure that what it is rewarding is what you really want to happen..In
crease the longevity of your rewards Intel Technologies has cash bonus plans and
performance based bonuses for employees.
6..GO IN FOR EMPLOYEE ENGAGEMENT PRACTICES:
You won t know what s wrong... or what s right unless you practice. To check th
epulseof your organization, conduct employee satisfaction surveys on a regular b
asis. Go in forits analysis and implementation. Oneidea: Ask employees what they
want more of and what they want less of Capture Voice of Employees Value additi
on in terms of ASKPT (Attitude, Skills, Knowledge, Practices, and Trust) has to
be the end product. Stay Interviews and its implementation, call back your emplo
yees and ensureombudsmenconcept. From the very beginning, Mind tree Consulting h
as been active in its socialresponsibilities.Infact, Mind Tree has identified so
cial responsibility as one of its core values andtherefore,regularly encourages
it in the organization.
7...TEAMWORK AND CROSS FUNCTIONAL TEAMS:
It takes effort to build an effective team, but the result is greater productivi
ty, better use of resources, improved customer service and increased morale. Giv
e great emphasis oncrossfunctional approach as it endorses acceptance and accoun
tability. Make sure everyone understands the department s purpose, mission or go
al. Encourage discussion, participation and the sharing of ideas. Rotate leaders
hip responsibilities depending on your employees abilities and the needs of the
team. Involve employees in decisions; ask them to help make decisions through c
onsensus andcollaboration. Encourage team members to show appreciation to their
colleagues for superior performance or achievement. Sapient Corporation has a pr
actice known as Team Storming. When a team (projectteamor an internal team) has wo
rked very hard, teams from across the office get togetherandstorm the team with
a goodies basket to recognize the team and lift their morale.
8. PAPERLESS ORGANIZATION:
If your high performers and technologists spend nearly as much time filling outp
aperwork,it s time for a change. Convert paperwork to an electronic format; and
hire non- techadministrative staff to take over as much of the paperwork burden
as is allowed underlegalor regulatory restrictions Intranet facility Centralized
servers for data storage.
9. FUN IS MUST.
Celebrate successes and recognize when milestones are reached. Buffet lunches,bi
rthdayparties, employee picnics and creative contests will help remind people wh
y anorganization is a great place to work. The companies organizes cultural prog
ram as and when possible but most of thetimes, once in a quarter, in which all t
he employees are given an opportunity to display theirtalents in dramatics, sing
ing, acting, dancing and sports programs such as Cricket,football etc Fun elemen
ts at work like Parties, bashes, outings, picnics at Aztec Software & Technology
Services Ltd and De-motivation to work on holidays by Phillips India are few goo
dIllustrations
10. MISSION STATEMENT FOR EACH FUNCTIONAL AREA.
Everyone wants to feel that they are working toward a meaningful, worthwhile goa
l.Workwith your human capital to develop a departmental mission statement aligne
d withcompanys vision, Make sure employees understand how their contribution isim
portant.A place where people work with a smile on their faces and dreams in thei
r eyesA place where your views can be freely voiced and are received with an ope
n mind place where you know whenever you need help, there is a family of 2000 me
mberswaiting to help you out
11. ASSIGNMENTS FOR JOB ENRICHMENT:
Identify your employees talents and then encourage them to stretch their abilit
ies into new areas. You have to have a great mentor or mentors. A variety of cha
llengingassignments helps keep the organization stimulating. Lay emphasis on str
etch Key Result Areas. Employees today want more than just a job. They want to c
ontribute to the big pictureandhelp the company sustain it through the tough tim
es. Provide challenging andmeaningfulwork assignments that stimulate them.When e
mployees feel bored, their motivation declines and they lose focus on howtheirwo
rk fits into the big picture.Delegate meaningful work whenever possible so emplo
yees can learn something newandfeel challenged. Additionally, provide regular de
velopment and learning opportunities. Johnson & Johnson conducts a Strategic Roa
dmap Meeting which is a large-scale interactive process (LSIP) of communicating
with employees and getting their buy-inonthe strategic goals set by the company.
This is a theme based motivational event.
12. TRANSPARENCY IN COMMUNICATION
.Employees are more loyal to a company when they believe management or those att
hehelm of affairs keep them informed about key issues Communication is the first
step toward creating the kind of environment that peoplecareabout, and if they
care, they just may stay, keep your people in the loop about whats happening with
the company. At any time, all of your employees should have a pretty good idea
of how business has been carried out. They should be aware of what issues the co
mpany is attempting to address. Everyone from new recruit to CEO is treated as s
ame in Nokia. Everyone flies thebusinessclass and everyone stays in luxury hotel
s.
13. ENCOURAGE HIGHER LEARNING.
Create opportunities for your key performers and technologists to grow and learn
. Encourage every employee to learn at least one new thing every week, and youll
creatework force that is excited, motivated and committed. To keep morale high,
coach and facilitate every day. The I tell/you do method of management simply does
not work for motivating and retaining people. Instead, become a coach to your p
eople and encourage them to trythingstheir own way. Allowfor mistakes to happen,
as mistakes are often our greatest learningopportunities.Most people are gratef
ul for constructive feedback. It shows that youre paying attentionto theirprogres
s FedEx has Personality Development Systems, amount of 3000 $ annually as educat
ion reimbursement and an Online training library with 600 courses.
14. FLEXIBILITY AND PRAGMATISM:
Employees will be loyal to organizations that make their lives more convenient b
yofferingon-site childcare centers, on-site hair styling and dry cleaning, flexi
ble work hours,parttimepositions, job-sharing or involving spouses in CSR activi
ties and promote ownershipculture.Employees of school-age children might appreci
ate the option to work nine months ayearand have the summers off to be with thei
r children.
15. DEVELOP AN EFFECTIVE INDUCTION PROGRAM
Implement a formal orientation program that s at least three weeks long and incl
udes thorough overview of every area of your department and an introduction to o
therdepartments.Infosys has a 23 days Induction Program with ISB BangaloreSona G
roup has tied up with MDI Gurgaon for one month Induction Program
16. WORKPLACE AMBIENCE.
No one wants to work with equipment that s old or constantly breaking down. Prov
ide employees with the highest quality supplies you can afford. Cheap, leaky pen
s may seem like a small thing, but they can add to employees overallstress level
. A career-oriented, valued employee must experience growth opportunities within
your organization.
17. NEVER, NEVER, EVER THREATEN AN EMPLOYEE S JOB OR INCOME.
Even if you know layoffs loom if you fail to meet targets, it is a mistake to fo
reshadowthisinformation with employees. It makes them nervous; no matter how you
explain theinformation, even if you re absolutely correct, your employees will
update theirresumesDemonstrate a vibrant workplace that retains and promotes tal
ents and at the sametimeencourages development of non-performers to perform bett
er and dissuade pink slips.
18. VALUE YOUR EMPLOYEES.
Recognize outstanding achievements promptly and publicly, but also take time toc
ommendon the many small contributions your staff makes every day to the organiza
tions vision, mission and growth.
Research Methodology
After completing the literature review on training in hospitality industry the G

ap for status report on training practices was identified. This chapter outlines
the research methodology adopted to complete the study in a scientific manner
Hospitality sector is growing at a very fast rate in India. The sector is growin
g at a rate of approximately 8%. This sector can be broadly classified into hote
l industry, travel and tourism, restaurants, pubs, clubs and bars, contract cate
ring, and aviation. Other than that, hospitality is applicable at various places
like in universities, sporting venues, exhibition centers and smaller events ma
nagement companies. The industry was earlier part of travel and tourism but now
it has a separate industry status. Like aviation industry which was part of trav
el & tourism, hospitality industry.
The major challenge of this sector is shortage of skilled employees along with t
he challenge of attrition rate. Skilled chefs and managers are in greatdemand. M
anagers require huge range of competencies such as, people management, viable sk
ills, business insights, analytical skills, succession planning, and resource de
velopment in order to get success in this sector. In addition to that, employees
are not enough trained on Business Etiquettes, Courtesy, and Business Communica
tion. Hospitality is all about handling people. So an employee must have right a
ttitude, tolerance, and listening skills in order to move up the hierarchy. Ther
e is still a long way to go to inculcate good public relations, interpersonal sk
ills.
.
Research Methodology
Research Methodology is a systematic way to solve the research problem. When we
talk research methodology, we not only talk of research methods but also conside
r the logic behind the methods we use in the research study and try to explain w
hy we are using a particular method or technique and why we are not using the ot
her, so that research results are evaluated by the researcher himself or by othe
rs.
In fact research is an art of scientific study/investigation of the problem stat
ed
Research Design:
A research design is the arrangement of conditions for collection and analysis of
data in
a manner that aims to combine relevance to the research purpose with economy in
procedure.
Research design is the conceptual structure within which research is conducted;
it constitutes the blueprint for the collection, measurement and analysis of da
ta. The type of research design used in the project was exploratory research
, because it helps to describe a particular situation prevailing within a compan
y. Careful design of the exploratory studies was necessary to ensure the complet
e interpretation of the situation and to ensure minimum bias in the collection o
f data.
Exploratory research
Exploratory research is conducted into an issue or problem where there are few o
r no earlier studies to refer to. The focus is on gaining insights and familiari
ty for later investigation. Secondly, descriptive research describes phenomena a
s they exist. Here data is often quantitative and statistics applied. It is used
to identify and obtain information on a particular problem or issue. Finally ca
usal or predictive research seeks to explain what is happening in a particular s
ituation. It aims to generalize from an analysis by predicting certain phenomena
on the basis of hypothesized general relationships.
SAMPLE SIZE:
Survey is done to find out the attrition rate in hotel ITC MAURYA. Sample size i
s 46.
METHOD OF SAMPLING
The techniques of sampling taken random sampling and systematic sampling. I have
adopted random sampling for the conduct of the survey.
Area of work Delhi
Duration of study
THE STUDY WAS CARRIED OUT FOR PERIOD OF TWO MONTH I.E 28 FEB-30 APRIL2012
Data Collection:
Primary data as well as secondary data is used for the present study
Primary Data is collected through the Questionnaire, Observation,Interviews and
feedback, from General Managers, HR Managers, Line manager , Employees (at all l
evels), Trainers ( Internal and External), observation of training programs.
Secondary Data is collected through previous records, data andfeedback forms, HR
Manual, Policies, Library resources: Newspapers. Business Magazines, Internet.
Present study is a case study method but to overcome of this method survey was a
lso conducted. To conduct the survey simple random sampling was done.
The Study comprises of case study of , with the coverage of at least 100 employe
es survey each. Total data collection and feedback regarding training process wi
ll be done by at least 100 employees under various organizations under hospitali
ty industry.
Tools for Data Analysis:-

Data Analysis is done through basic statistical methods. MS-Excel was used to an
alyze the data and graphical representation of data. Since research mainly invol
ves qualitative data, to collate the data MS Excel was used to convert the prima
ry data to give pictorial representation in form of charts and graphs.
Improving Employee attrition inITC Maurya Hotel
In hospitality industry, an organization or hotel should consider following poin
ts whenplanning for employee retention (articlebase.com, 2007):
Respect: Any relationship blooms under the swathe of respect. It is, therefore,
Importantfor theemployers to honour cultures, languages, traditions, and age
Of their employees.
Transparent policies and procedures: After induction, employees need to be
Educatedabout the policies and workingg procedures of the hotel. Keeping
Those transparent, fair andconsistent will help employees see the hotel in good
Light.
Recognition of performance: Compensation in terms of bonuses, rewards,
Peer recognition etc. Is necessary as a recognition strategy. Innovative
performance b asked perks such as an insurance cover and time off can
also beincluded in these.
Training programs: Development initiatives and training programs should be
Made a part of the job. Repeated training is a good way to in grain part
icular concepts into employees minds. Such initiatives help employees hon
e theirskills at the same time allowing the hotel to use them as per thei
r requirement.
Employees are also glad at the prospect of career development through
Continuous training.
Discuss career paths: Career development is important to everyone.
Organizations should advice and help on their employees career development,
Highlighting how their job will cater to their needs. Employees should be made
to feel that the employer is interested in investing time and money in
them
Provided they stick to their job. This will help both employer and employeeachi
eve mutual goals.
Make yourself approachable: Making emplo yees feel comfortable enough to
Share their problems with the management always helps. Managers, who take
weekly rounds of departments finding out the way employees function an
d
whether anybody has a grievance, make them appear friendly and
approachable.
Analyze: Finding out the reasons for the turnover rates at the hotel
is ver y
Important. This can be effectively done through exit interviews of the
Employees planning to leave. HR departmentshould be trained in doing these
and should derive an inference from the answers to such questions which
will
help to give an insight into the needs of the employees and allows employer to
sort out any problem areas.
Conduct employee surveys: Giving out questionnaires to be filled in b
y the
working people to gauge what they think about working with the hotel
will
help in bringing up issues that need immediate attention. Emplo yers should b
e
Prepared to address them as this will lead to employee satisfaction.
Make working fun: Social groups should be formed within the organization,
Wherein the staff can mingle. Arran ging outings or making a newsletter that
carries information abou t and for the employees that is important to
them.
Find out if any o f the staff members is volunteering for a socially re
sponsible
group. If yes, plan a donation for it, or at least make a recogniti
on of his
contribution to society by patting him on the back.
Semi-structured interviews:
As per Fisher (2007), in this type of interviews the interviewer has
a schedule to remind them of the main issues and topics that need to
be covered by the respondent. The respondent has much latitude
to respond to the questions in the ways that seem sensible to them.
The respondent is also asked to think of occasions in their working lif
e when theyhad to deal with a particular kind of issue. The interviewee choose
s an incidentand then is encouraged by the interviewer to explain the incident i
n full detail.
Open interview was also rejected. It is a straightforward method. The
interviewerengages in informal conversation with the respondent about a
particular area ofinterest. In this type generally the respondent lea
ds the direction of the interview This would have not helped in coll
ecting the important data requiredfor the particular problem, hence it was r
ejected.
Pre-coded interview was also considered as the strategy for the research b
ut rejected.
These interviews are controlled by the researcher unlike open interview
(Fisher,2007). In these interviews the interviewer generally reads from a
prepared script andis expected not to deviate from it. These kind of
interviews are controlled and do notprovide much information as the int
erviewee is given options for the questions toanswer and not given a chan
ce to elaborate.
DATA ANALYSIS AND INTERPRETATION
RESULT AND INTERPRETATION

3.1. Data analysis and interpretation:
1.SATISFACTION OF EMPLOYE ES IN REFRNCE TO SALARY PACKAGE

Table 3.1.1:
S.no Level of satisfaction No. of respondent percentage
1 Highly satisfied 4 8.7
2 Satisfied 23 50
3 Neutral 10 22
4 Dissatisfied 6 13
5 Highly dissatisfied 3 6.3
46 100
Table 3.1.1:
INFERENCE:
It is seen from the table that 8.7% of employees are highly satisfied with the s
alary package and 50% of employees are satisfied, 22% of employees are neutral,
13%of employees are dissatisfied, and 6.3% of employees are highly dissatisfied
with
2. SATISFACTION OF EMPLOYEES IN CURRENT JOB
Table 3.1.2
S.no Level of satisfaction No. of respondent Percentage
1 Highly satisfied 5 11
2 Satisfied 27 59
3 Neutral 12 26
4 Dissatisfied 2 4
5 Highly dissatisfied 0 0
46 100
.
Table 3.1.2
INFERENCE:
It is seen from the table that 11% of employees are highly satisfied with curren
t job and 59% of employees are satisfied, 26% of employees are neutral, 4% of em
ployees are dissatisfied, and 0% of employees are highly dissatisfied
3. CASUAL LEAVE
Table 3.1.3
2 Satisfied 19 41
3 Neutral 16 36
4 Dissatisfied 7 15
46 100
Table 3.1.3
INFERENCE:
It is seen from the table that 4% of employees are highly satisfied with the cas
ual leave and 41% of employees are satisfied, 36% of employees are neutral, 15%
of employees are dissatisfied, and 4% of employees are highly dissatisfied with
the casual leave
BONUS
Table 3.1.5:
2 Satisfied 19 41
3 Neutral 16 36
4 Dissatisfied 7 15
46 100
Table 3.1.4
INFERENCE:
It is seen from the table that 11% of employees are highly satisfied with the bo
nusand 45% of employees are satisfied, 24% of employees are neutral, 20% of empl
oyees are dissatisfied, and 0% of employees are highly dissatisfied with the bon
us
MEDICAL FACILITIES
Table 3.1.4:
SI. No Level of satisfaction No. of Respondents Percentage
1 Strongly agree 8 17
2 agree 18 39
3 moderate 10 22
4 disagree 6 13
5 Strongly disagree 4 9
46 100
Table 3.1.4:
INFERENCE:
It is seen from the table that 17% of employees are highly satisfied with the me
dical facilities and 39% of employees are satisfied, 22% of employees are neutra
l, 13% of employees are dissatisfied, and 9% of employees are highly dissatisfie
d with the medical facilities.
Canteen facilities
Table 3.1.6:
2 agree 20 43.5
3 moderate 14 29.5
4 disagree 3 7
46 100
Table 3.1.6:
INFERENCE:It is seen from the table that 20% of employees are highly satisfied w
ith the canteen facility and 43.5% of employees are satisfied, 29.5% of employee
s are neutral, 7% of employees are dissatisfied, and 0% of employees are highly
dissatisfied .
ESI & PF
Table 3.1.7:
1 highly satisfied 8 17
2 satisfied 20 44
3 neutral 16 35
4 dissatisfied 2 4
5 highly dissatisfied 0 0
46 100
Table 3.1.7:
INFERENCE:
It is seen from the table that 17% of employees are highly satisfied with the ES
I & PF and 44% of employees are satisfied, 35% of employees are neutral, 4% of e
mployees are dissatisfied, and 0% of employees are highly dissatisfied with the
ESI & PF.
HEALTHY & SAFETY WORKING CONDITIONS

Table 3.1.8:
1 highly satisfied 8 17.5
2 satisfied 23 50
3 neutral 13 28.5
4 dissatisfied 2 4
46 100
Table 3.1.8:
INFERENCE:
It is seen from the table that 17.5% of employees are highly satisfied with the
healthy and safety working conditions and 50% of employees are satisfied, 28.5%
of employees are neutral, 4% of employees are dissatisfied, and 0% of employees
are highly dissatisfied with the healthy and safety working conditions
Job security
Table3.1.9:
2 satisfied 29 63
3 neutral 7 15
4 dissatisfied 3 7
46 100
Table3.1.9:
INFERENCE:
It is seen from the table that 11% of employees are highly satisfied with the jo
b security and 63% of employees are satisfied, 15% of employees are neutral, 7%
of employees are dissatisfied, and 4% of employees are highly dissatisfied with
the job security.
Promotion policy
Table 3.1.10:
2 satisfied 20 43.5
3 neutral 17 36.5
4 dissatisfied 2 4
46 100
..
Table 3.1.10:
INFERENCE:
It is seen from the table that 7% of employees are highly satisfied with promoti
on policy and 43.5% of employees are satisfied, 36.5% of employees are neutral,
4% of employees are dissatisfied, and 9% of employees are highly dissatisfied wi
th promotion policy
Proper communication with employees
Table 3.1.12:
2 agree 18 39
3 moderate 12 26
4 disagree 7 15
46 100
.
Table 3.1.12:
INFERENCE:
It is seen from the table that 20% of employees are highly satisfied with the at
tention of changes and 39% of employees are satisfied, 26% of employees are neut
ral, 15% of employees are dissatisfied, and 0% of employees are highly dissatisf
ied with the attention of changes
CORDIAL RELATIONSHIP AMONG EMPLOYEES
Table 3.1.13:
2 agree 25 54
3 moderate 16 35
4 disagree 3 7
46 100
Table 3.1.13:
INFERENCE:
It is seen from the table that 4% of employees are highly satisfied cordial rela
tionship among employees and 54% of employees are satisfied, 35% of employees ar
e neutral, 7% of employees are dissatisfied, and 0% of employees are highly diss
atisfied cordial relationship among employees.
Training
Table 3.1.14:
SI.No Level of satisfaction No. of Respondents Percentage
2 satisfied 21 45
3 neutral 16 35
4 dissatisfied 3 7
46 100
Table 3.1.14:
INFERENCE:
It is seen from the table that 11% of employees are highly satisfied with traini
ng and 45% of employees are satisfied, 35% of employees are neutral, 7% of emplo
yees are dissatisfied, and 2% of employees are highly dissatisfied with training
.
SATISFACTION IN PERFORMANCE APPRAISAL

Table 3.1.15:
2 satisfied 24 52
3 neutral 12 26
4 dissatisfied 6 13
46 100
Table 3.1.15:
INFERENCE:It is seen from the table that 7% of employees are highly satisfied pe
rformance appraisal and 52% of employees are satisfied, 26% of employees are neu
tral, 13% of employees are dissatisfied, and 2% of employees are highly dissatis
fied performance appraisal
GRIEVANCE REDRESSAL
Table 3.1.16:
2 satisfied 23 50
3 neutral 16 35
4 dissatisfied 2 4
46 100
.Table 3.1.16:
INFERENCE:
It is seen from the table that 9% of employees are highly satisfied with grievan
ce redressal and, 35% of employees are neutral, 4% of employees are dissatisfied
, and 2% of employees are highly dissatisfied with grievance redressal
Reward Recognition
Table 3.1.17:
1 Yes 19 41
2 No 27 59
46 100
.
Table 3.1.17:
INFERENCE:
It is seen from the table that 41% of employees are highly satisfied with reward
recognition and 59% of them are highly dissatisfied with reward recognition
Career development
Table 3.1.18:
1 Very high 4 9
2 High 19 41
3 Moderate 15 33
4 Low 6 13
5 Very low 2 4
46 100
Table 3.1.18:
INFERENCE:
It is seen from the table that 9% of employees are highly satisfied with the car
eer development and 41% of employees are satisfied, 33% of employees are neutral
, 13% of employees are dissatisfied, and 4% of employees are highly dissatisfied
with the career development.
FREEDOM TO DO THEIR OWN WORK
Table 3.1.19:
1 Very true 5 11
2 True 22 48
3 Somewhat true 8 17
4 Not too true 7 15
5 Not at all true 4 9
46 100
.
Table 3.1.19:
INFERENCE:
It is seen from the table that 11% of employees are highly satisfied, 48% of emp
loyees are satisfied, 17% of employees are neutral, 15% of employees are dissati
sfied, and 9% of employees are highly dissatisfied with the freedom of work
Finding
After speaking to the human resource manager and other HODS and after analysis t
he survey it was found out that: -
Attrition is mostly soft and net poached in the hotels.
Employees mostly do not have a say in company issue but there is an open .house
seniors where in they can talk about their problems with the
Poor compensation and benefits are the main cause of attrition in as it not best
pays master is the industry
Human resource department handles any grievances the employee might have related
to their working climate.
There are many levels in the organization but there is barrier of upward and dow
nward communication.
Recruitment and training and development is best of its kind .The practice of or
ange club is prevalent where in new employees are recognized for their performan
ce.
NO special non-cash benefits are provide to the employee
RECOMMANDATION
The foundation of recognition and motivation is that people need and want Acce
ptance, Approval and Appreciation. Almost all positive motivation is based on t
hese needs. People want to know that what they do makes a difference. Just rec
ognizing the staff is the most important step one can take. You may want to
count the number of "we s that are said instead of "I s in order to assess
the extent to which your staff feels part of the team and part of the bu
siness future. One saying is, "Powerlessness corrupts, and absolute powerless
ness corrupts absolutely."
These nine actions will help immensely to give your staff what they need:
Communicate, Communicate, Communicate, Recognize, Recognize, Recognize
Manager has to see whether the employee are being treated right
To ensure everything has been communicated to them effectively or not.
To see if there is room for improvement and if yes then how to go about it.
They need to interest with every one of their employees whether old or new and t
op confirm whether they know what exactly is needed of them
They need to counsel their employee and be there whenever they any help
They should take it as their responsibility to guide the cause growth of their e
mployees.
A more well defined job profile and prove job allocation
Teamwork communication within and the between the department should be ensured.
Enable multi taking and job rotation.
Use an unbiased performance management system
There should be scope for growth and leaving at all levels.
There should be a healthy and work environment for all employees.
Selection of employee of the month/quarter/year by peers not just management
Points given out at any time for anything, good attendance, helping out a guest
, etc., and are redeemable for prizes
When you reach a certain level in revenues, give all staff a reward, being
sure to give them the goal in advance
Spontaneous calls from corporate to line staff saying how they are appreciated
Fine those who arrive late to a meeting and distribute the money to those who w
ere there on time
Create a symbol of the team, maybe just property logo but put it on T-shirts, mu
gs, caps
Certificate of achievement, lunch, and mug for perfect attendance, gift cert
ificate to the one with longest perfect attendance
Allow those with perfect attendance record to enter a lottery to get a $100
or $200 gift certificate
Family orientation for new employees with slide show or video
program with refreshments
Several line staff call new hire to welcome him/her to the team the day b
efore he/she starts
Toll-free hot line to President where they can leave any question, suggestion, e
tc. and will get a response
Hold a regular meeting to tell staff what is going on and how they are doing
Always hang charts, graphs, etc. to depict regularly how the property is doing
Full page ad in newspaper once a year thanking employees and name all individual
ly
Public praising of an individual at a department or hotel meeting
Make sure all rewards, praise, bonuses, etc. are in public
Pins for uniforms that say "The guest comes first" or "I will do my best" or
"We re glad you re here" or something similar
Give a small gift on the date of their anniversary
Ask employees regularly what else we can do for them to enable them to do a good
job
Tell employees regularly what else they can do for management to enable you
to do a good job
Hold weekly meetings with small groups of employees to discuss anything, serve f
ood
Hold a weekly 20 minute meeting with one employee to discuss anything
Make it personal, people naturally commit themselves to other people, not to
organizations
Distribute daily reports of revenue performance last night and month-to-date
Imprint the hotel s four key business goals on T-shirts
Include career development discussion in all performance reviews
Send line staff to schools to do recruiting and interviewing
Always make sure their work environment is positive, attractive, and reflect
ive of your goals and values
Ideas for back-of-the-house areas: plants, framed art (let them choose),
clean unworn carpets, adequate ventilation, natural light, meeting s
pace, adequate work-space, well-functioning equipment, attractive break faci
lities
Form a recreation committee to plan monthly activities
CONCLUSION
Hereby, I conclude my project study done hotelITC-THE MAURYA GROUP, DELHI Select
ion and induction is executed is a well-managed and systematic manner leaving no
spot any kind of how as lapses in the courses.
After completing study on attrition, up starting that attrition rate in ITC is n
ot a big concern because percentage of employee turnover is not so high.
In a nut shell, this property is counted amongst top hotel inside which exhibits
that the manpower here and comes one of the major problem like attrition so wel
l and comes up with ratio raised solutions
ANNEXURE
QUESTIONNAIRE
PERSONAL DATA:
Name : _______________________
Sex : _______________________
Age:
Below 25 yrs. 25-35 yrs. 35-45 yrs. 45-55yrs Above55 yrs.
Educational Qualification : _______________________
Marital status : _______________________
Department : _______________________
Designation : _______________________
Experience: Less than 5 yrs. 5-10 yrs. 10-15 yrs. 15-20yrs A
bove20 yrs
1. Are you satisfied with your salary package?
Highly satisfied satisfied Neutral Dissatisfied Highly Dissatisf
ied
2. How far you are satisfied with your current job?
Highly satisfied satisfied Neutral Dissatisfied Highly Dissati
sfied
3. Is the organization providing casual leave with pay?
Strongly Agree Agree Moderate Disagree Strongly Disagree
4. What do you feel about the medical facilities provided by the concern?
5. Are you satisfied with the bonus provided to you?
6. Are you satisfied with your canteen facility?
Highly satisfied satisfied Neutral Dissatisfied Highly Dissatisfi
ed
7. How far you are satisfied with the ESI and PF given by the organization?
8. To what extend you are satisfied with the safety and healthy working con
ditions?
Highly satisfied satisfied Neutral Dissatisfied Highly Dissatisfied
9. What do you feel about the job security in your organization?
ied
10. Are you satisfied with the promotion policies in your organization?
Highly satisfied satisfied Neutral Dissatisfied Highly Dissatisfi
ed
11. What do you think about the quality of work life in the organization?
very good Good Ok Bad Very bad
12. The company communicates every new change that takes place from time to
time.
13. To what extend the cordial relationship exist among the employees and su
periors?
14. How far you are satisfied with the training given by the employer?
Highly satisfied satisfied Neutral Dissatisfied Highly Dissatisfie
d
15. Are you satisfied with the training method used in your organization?
Highly satisfied satisfied Neutral Dissatisfied Highly Dissatisfied
16. How do you find the performance appraisal methods adopted by your manage
ment?
ied
17. Are you satisfied with the Grievance Redressel?
ied
18. Are you getting reward as means of recognition?
YES NO
19. What is the scope of your career development in the organization?
Very high High Moderate Low Very low
20. Do they give freedom to decide how to do your own work?
Very true True Somewhat true Not too true Not at all true
REFRENCES
WEBSITE
WWW.indiainfoline.com
www.themanagement.com
www.itc.in
www.is.com
www.carlson.com
www.google.co.in
BOOKS
INDIAN HOTELS &TOURISM
INDUCTION MANUAL FOR KNOWLEDGE
HANDBOOK OF HOTEL

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SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARDS OF DEGREE OF MASTERS OF BUSINESS

Under the Supervision of: -

Date: Miss Shweta chau

SWOT ANALYSIS OF HOTEL INDUSTRY

NOW A DAYS HOTEL INDUSTRY IS FACING KEY CHALLENGES IF EVERY ASPECTS

TRENDS IN HOSPITALITY SECTOR

OBJECTIVE OF THE STUDY

5. Lack of Positive Direction:

After completing the literature review on training in hospitality industry the G

Tools for Data Analysis:-

DATA ANALYSIS AND INTERPRETATION

RESULT AND INTERPRETATION

1.SATISFACTION OF EMPLOYE ES IN REFRNCE TO SALARY PACKAGE

HEALTHY & SAFETY WORKING CONDITIONS

SATISFACTION IN PERFORMANCE APPRAISAL

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