CHAPTER 1 AN OVERVIEW OF THE HOTEL INDUSTRY

ORIGIN

It was the post World War II era that witnessed the growth in the hotel industry. As industry and commerce grew, people started traveling extensively. Mass tourism was on the rise as social equality, economic wherewithal and political freedom spread across the globe. Prior to the 1980s the Indian hotel industry was nascent and comprised relatively static, single hotel companies. However, the Asian Games in 1982 and the subsequent partial liberalization of the Indian economy generated tourism interest in India with significant benefits accruing to the hotel and tourism sector in terms of improved demand patterns. Fortunes of the hotel industry are tied to the fortunes of tourism and the general business climate. In the country, which is why the economic liberalization initiatives implemented since 1991, led to a soaring demand supply.

CURRENT STATUS

One of the fastest growing sectors of the economy of is the hotel industry. The hotel industry alone us a multi billion dollar industry and is a growing enterprise. It is exciting, never boring and offers unlimited opportunities. The hotel industry is diverse enough for people to work in different areas of interest and is still be employed within the hotel industry. This trend is not just in India, but also all around the world. The Indian hotel industry has, in the recent years, experienced tremendous growth. Due to the efforts taken by the Indian Government to boost Indian tourism through the Incredible India campaign the influx of tourists has increased. Also, the abolishment of the inland air travel

tax of 15%; reduction in excise duty on aviation turbine fuel to 8%; and removal of a number of restrictions on outbound-chartered flights, including those relating to frequency and size of aircraft has given a boost to the industry. The government's recent decision to treat convention centres as part of core infrastructure, allowing the government to provide critical funding for the large capital investment that may be required has also fuelled the demand for hotel rooms. The thriving economy and increased business opportunities in India have also acted as a boon for Indian hotel industry. Thus this industry has tremendous scope for further growth. It is estimated that hotel rates in India are likely to rise by 25% annually and occupancy by 80%, over the next two years.

DEPARTMENTS

Typically a hotel comprises the following departments:

Front Office:It is the most important department of the hotel. The main function of this department is to give warm welcome to the guest . It helps to create good image in front of the guest. This is the first department where guest comes in contact with. It generates the maximum revenue for the hotel as it sells room to the guests. This also includes sub departments like reservation, Bell desk, and Information desk. It also provides some facilities like concierge service to the guest.

Food and Beverage Service:It is a department that serves food and beverage to the guest in a very attractive and pleasing manner, which creates good impression on the guest. There are several kind of food and beverage outlets like restaurants, Bars, Coffee shops, take away banquets etc. It is second most revenue-producing department of the hotel by selling different types of food and beverage to the guest.

Housekeeping: This department is responsible for cleaning and maintaining hotel premises that include public area, guest rooms, lobby, swimming pool area etc. generally this department is not visible to the guest. It works for guest satisfaction through keeping the environment clean and hygiene. Horticulture is one of the most important features of

housekeeping department, which deals with different types of flower arrangement and maintaining the garden. This department works to give pleasant look of the hotel to the guest.

Food Production: It is a department with deals with the preparation of different types of food items. It is not a visible department to the guest because it usually works in the back area. It makes the food more delicious and attractive by different styles of cooking method. Different cuisine has their own kitchen and specialized chef to work on it according to their skills. Bakery departments comes under this which include preparation of desserts, breads etc.

Support departments(cost centres) :

Sales and marketing : Sales and marketing has become one of the most vital functions of the hotel business and an integral part of modern hotel management. It includes public relations, packaging for selling, sales promotion, sales promotion and advertising. The marketing division is charged with the responsibility of keeping the rooms in the hotel occupied at the right price and with the right mix of guests.

Engineering and Maintenance :The energy crisis throughout the world has given great importance to the engineering department of a hotel. this department provides on a day-today basis the utility services, electricity, hot water, steams, air-conditioning and other services and is responsible for the repair and maintenance of equipment furniture and fixtures in the hotel. this department has an important role in satisfying the guest demand and helps to maintain the profit level of the hotel. the cleaning, up keep, repair, replacement, installation and maintenance of property and its furnishing, machinery and equipment are the joint responsibilities of the Engineering/Maintenance and the Housekeeping Department. Finance, Accounting and Control :A hotels accounting department is responsible for the many business transactions that occur in the hotel. the department does more than simply keep the books of accounts. Financial Management is perhaps a more appropriate description of what the accounting department does. Whereas the control department is concerned with

the cost control guidelines by way of reduction in unnecessary investment, reduction in operating cost, control of food service costs, control of beverage costs, labour cost control.

Safety and Security :The security of guests, employees, personal property and the hotel itself is an overriding concern for todays hoteliers. In the past, most security precautions concentrated on the prevention of theft from guests in the hotel. However, today such violent crimes as murder and rape have become a problem for some hotels. Unfortunately crime rates in most of the major cities are on the rise. Hence today security department also concentrates on these additional criminal activities.

Administration :Top organizational members usually supervise the Administration department in hotel. This department is responsible for all thework connected with administration, personnel, manpower, employee welfare, medical health and security.

Human Resource Department :This department has newly taken a step in the hotel industry and within a short period of time, it has become a very important part of the organization. It plays the role of facilitator between the bargainable cadre and the non-bargainable cadre of the hotel.

CHAPTER 2 NATURE & SCOPE OF HUMAN RESOURCE MANAGEMENT

Human resource management can be defined as The planning, organizing, monitoring and controlling of processes in the Human Capital vertical which include Sourcing, Induction, Compensation management, Performance Appraisals, Training & Development, Career Planning, Job rotation, Transfers & Promotions, Safety & Welfare, Employee Relations, Staff Exits. It is a set of systematic and planned activities designed by an organization to provide its Human capital with the necessary skills to meet current and future job demands. HRM performs diverse functions and they can be put into three broad categories of Talent Attraction

Talent Retention Talent Development

DISTINGUISHING HR IN HOTEL INDUSTRY FROM OTHER INDUSTRIES

Majority of the labour has to be skilled. Its a service industry. So, the key area to work on in order to give quality service is human resource. Special personalities/ qualities are demanded from a hotel employee. The human resource has to constantly adjust to the changing trends in demands. The human resource in hotel industry does not have to just sell a particular product. Here, they sell the experience. For this, a strong teamwork plays a key role. The demands of the job from the employees keep changing. Extreme supervision. Grooming the employee totally to organisations culture takes a lot of time (has to totally camouflage) Here, the employee not only provide mechanical but also psychological service in equal ratio. The hotel industry differs from any other industry because of the relative importance given to people and customer service. The offering of this industry is highly intangible. Physical evidence and the manpower of an industry is all that a guest can see. Therefore the onus is on the employees to deliver the desired levels of customer service. All the services provided, right from lodging, boarding to dining & entertainment, are the responsibility of the hotel employees. An error on their part can cause the hotel to lose lucrative opportunities. Technology has minimal application in this industry. It is limited to computer systems in the back office, sophisticated room amenities, telephone operations, a wi-fi system and the like. The services of a receptionist, bellboy, room service assistant, a restaurant host or hostess, the various entertainment providers cannot be mechanised. Humans perform them. The actions of humans cannot be standardised. However, they can be perfected. This is where Human Resources Management steps in. It caters to individual as well as organisational needs in order to achieve certain pre-planned objectives. It understands the dynamics of human nature and strives to develop them so that the organisation and the individual can flourish. The hotel industry is highly customer centric. The customer is truly the king here. Each customer is different from the other. The basic needs may be the same but each has his or her personal, intrinsic needs in a hotel. The satisfaction of these needs defines the quality and the superiority of customer service. The product offering is the same. It is the delivery of that enjoyable experience which differs with each guest. Customer satisfaction is judged on various parameters. And these parameters change from customer to customer. Thus the employees have to be trained rigourously and continuously to be customer focused and understand his pulse.

Human Resource Management helps the employee perform better by perceiving the gaps in required abilities in and the actual abilities possessed by an individual. Training is the single most important function of the HR Department in a hotel. Another major role of Human Resource Management in the hotel industry is employee retention. The hotel industry differs from most industries due to its high turnover rate. After the BPO industry, the hotel industry has the highest turnover rate. This industry is glamourous by nature. A lot depends on physical appearance. The better looking the hotel and its staff, the better is its perception in people's eyes. Thus in search of better pay and status, employees move from one hotel to another. Even a higher salary if Rs.100 can motivate an employee to take up another job. Hotels function in a highly competitive environment. Thus retaining talented, skilled and wellqualified employees is a daunting task. Better pay and status is only one of the reasons of labour turnover. Another significant reason is the monotony of work and long hours. The employees, especially the middle and lower level technical employees perform the same job day in and out. The service provision process does not vary too much with each guest. However different each guest is from another, finally they are all buying the same core product of sleep and rest and the same services. This monotony in work leads to frustration and leads the employee to search for other job avenues. The HR department thus has to strive to reduce, if not remove, this monotony for its employees by undertaking various programmes and activities. High levels of employee motivation and committment are an indication if a healthy organisation with robust Human Resources practices. The employees need to contribute their full skill, care and effort to the activities and operation of the hotel. To achieve this objective it is required that the management be knowledgeable about needs and desires. It must provide the communication, incentives, recognition and rewards. It is often seen that the problem of employee motivation gets complicated because of the widely disparate view of the management and employees on what individuals want from their job. For example, management thought material considerations ranked uppermost in the mind of employees as regard to job satisfaction on the other hand, employees rated the psychological satisfaction more important. The administration department in a hotel is usually supervised by a Director (administration). He is responsible for all the work connected with administration, personnel, manpower, employees welfare, medical, health and security of the hotel. In large hotel the work is sub-divided and separate departments are created to look after human resource development, administration and security. Hotel industry offers relatively limited opportunities for the application of improved technology, therefore, improved productivity and performance on the part of the employees represent the best chance of realizing, operating, saving and improving profits for the hotel. Chain operators are dominating the industry, convenience food standardized operating techniques. This requires ability, training, dedication, involvement, and interest and service orientation of employees. The management of hotel has to depend totally on the employees for guest satisfaction, which is the most important ingredient for success of a hotel. In addition, payroll and related expenses account for approximately one-third of the distribution of the rupee income. Thus the money and effort expended in obtaining, training and retaining qualified and highly motivated personnel is one of the most rewarding investment in a hotel business.

ORGANISATION OF HR DEPARTMENT IN THE HOTEL INDUSTRY

Training within the hotel provides the best opportunity to influence the attitude and performance of employees. Training programmes include are as such as introduction, fire, food hygiene, control of substances hazardous to health, manual handling first-aid, technical skills, product knowledge, customer service. In many other areas, there is a statutory requirement to carry out training. In small hotels the various aspects of personnel functions are the responsibility of the hotel manager. Medium-sized hotels delegate these responsibilities to assistant manager. Whereas in large hotels due to increase in the size of operation, the personnel function is the responsibility of a separate personnel department headed by a personnel manager. Typically the HR department in hotels is structured as follows :

GENERAL MANAGER

HR DIRECTOR

HR MANAGER

HR OFFICER

PERSONNEL RESEARCH & DEVELOPMENT OFFICER

PERSONNEL

TRAINING

Training Recruitment Welfare

Operating Training Supervisory Training Management Training Training Instructions Training Aids & Equipments

CHAPTER 3 HUMAN RESOURCE PLANNING:

MEANING Human Resource planning may be defined as a strategy for the acquisition, utilization, improvement and preservation of the human resources of an enterprise. It is the activity of the management, which is, aimed ay co-ordinating the requirements for and the availability of different types of employees. This involves ensuring that the firm has enough of the right kind of people at the right time and also adjusting the requirements to the available supply. The same can be applicable at a macro level say HRP for an industry like hospitality or a government planning at the national level. The major activities of manpower planning include: 1] Forecasting future manpower requirements 2] Inventorying present manpower resources and analyzing the degree to which these resources are employed optimally 3] Anticipating manpower problems by projecting present resources into the future and comparing them with the forecast of requirements 4] Planning the necessary programmes of recruitment, selection, and training

NEED FOR HUMAN RESOURCE PLANNING IN HOTEL INDUSTRY: Like any other industry, the hotel industry to has to sytemmatically plan its manpower requirements. However, in a hotel manpower needs fluctuate rather frequently compared to other industries. This is because the demand for the services of the hotel industry is not constant. It is greatly dependant on the season. In the winter months, the demand for accommodation and convention centres is high as it is the wedding season. During festivals like Diwali and Christmas, hotels run at almost full occupancy levels. The demand for restaurants is also during this period. However the starting few months of the year and even the summer months (if the hotel is not located in a tourist destination city or town) are lean. Occupancy levels are low. Thus depending on the demand, hotels have to plan their manpower requirements. Generally excess demand is met by hiring casual labour. Hiring permanent staff for the peak season is not viable option as this same staff would become obsolete and burdensome during the lean period.

Also except for departments like accounts and administration, all other departments are service and performance based departments. Specific skills and knowledge is mandatory pre requisite for hiring employees for Room Service, House Keeping, Laundry, Food & Beverage, and Kitchen. Thus estimation of current needs has to be done carefully else there will be direct repercussions on the customer service level.

METHODOLOGY

Manpower needs in most hotels is expressed in terms of Room Inventory/ Food & Beverage Outlets to Number of Employees. Room inventory indicates the occupancy level in the hotel. For e.g. the occupancy level is 70% indicates that out of every 100 rooms in the hotel, guests occupy 70. The occupancy level in a hotel at any point in time helps in determining the manpower requirements. There is a direct positive correlation between the number of rooms occupied and the number employees required. The Food & Beverage (F &B) Outlets indicate the number of restaurants, banquet halls, spa treatment and entertainment facilities a hotel has. Depending on this number and how busy they are, manpower needs can be projected. Thus Manpower Planning in hotels involves determining how big is the product offering. This involves finding answers to the following questions : How many rooms are occupied? How big are the restaurants, spa treatment and entertainment facilities in terms of

guests it can serve at one time? How many rooms can one room boy clean and prepare in a day? How many spa treatments can the spa therapist give out in a day How many tables can a waiter serve in a day? How many arrivals & departures are expected in a given time frame, say a week,

fortnight or month? It is on the basis of answers to these questions that further calculations about manpower requirement can be done. Another factor to be keyed in while deciding manpower requirement is the leave, weekly offs, shift timings and relievers of employees.

In most hotels this manpower ratio is that of 1:2, i.e., if say the number of rooms is 200 then the number of employees required to service them will be 400. The norm is good hotels is to have a ratio of 1:2 or 1:1.5. This is a benchmark ratio but it also varies from hotels to hotels and a certain margin of variation can be accommodated. However, in good hotels the ratio is never lower than 1:2. It may be higher, but never lower than this. In hotels that have many F&B Outlets, this ratio can be as high as 1:3. This type of manpower planning is generally done on department specific basis. This is because trends typical to a certain function inthe he organisation are best known by the specific department. There always exists a trend in manpower needs in each department. For example, House Keeping will need more number of room service employees during the peak holiday season. The kitchen will need a greater number of chefs during the festive season. Thus in hotels, it is best for each department to predict its manpower requirement and communicate the same to the HR department. The two factors that a department takes into consideration are : Past trends Room Booking

Once a specific department determines its manpower needs, it communicates the same to the HR Department. The HR Department, before taking any further action, will check the cause of this need. It checks the efficiency levels to determine whether the hotel is running at 100% efficiency or lower. If lower it finds out the cause fir the same. It checks the time utilisation and time wastage by employees. It finds out whether employees require additional training and whether plugging these training gaps will fulfill the manpower needs of the department. It may also suggest to the department to employ part time or casual employees to fulfill the present needs. This practice is very popular in hotels. During peak seasons, the manpower needs of the hotels increases, especially of lower level and technical jobs. Thus the hotel hires casual, temporary employees and relieves them if service once the lean period sets in. The accuracy of manpower can never be 100%. Room bookings change very suddenly. Thus manpower planning systems in hotels must be flexible and accommodate any sudden changes in manpower requirements.

RECRUITMENT, SELECTION, AND INDUCTION

Recruitment is the positive process of attracting and encouraging people to apply for posts within the organization. It aims at creating a pool of suitable people from which the organization can select the most appropriate candidate through scientific selection processes. Recruitment in hotels takes place for technical as well as managerial staff. Technical staff would include : Receptionist Bellboy Room Service employees Telephone operators Kitchen employees Waiters Spa therapist Gym Instructors

Managerial Staff would include all head of departments of House Keeping Food & Beverage Accounts Human Resources Marketing

It also includes senior level managers and directors of the above-mentioned department and the General Manager of the hotel.

SOURCES OF RECRUITMENT

1. Campus recruitment is the most popular mode of recruitment for hotel staff. Hotel Management Schools are the ideal place to recruit fresh employees. These graduates are fresh out of School and are technically trained and professionally competent. Some of the popular Hotel Management Schools in India are : Institutes of Hotel Management Mumbai, Delhi,Bangalore, Chennai, Calcutta, Ahemadabad& Aurangabad Oberoi Centre, Delhi Welcomgroup Graduate School of Hotel Administration Manipal Christ College, Bangalore Merit Swiss Asian School of Hotel Management FHRAI Institute of Hospitality Management Dr Ambedkar Institute of Hotel Management Rizvi College of Hotel Management, Mumbai

Hotels generally have a tie up with these institutes and as per their requirement they select appropriate candidates. The hotels provide information about the jobs for which recruitment is being conducted. They generally make an audio video presentation about the hotel, its past, its achievements, its vision and mission, the company structure. This kind of detailed information enables the job seekers to get a bird's view of the hotel and helps them decide whether they want to apply for a job in a particular hotel. After a preliminary screening, selection interviews and tests are conducted and the most appropriate candidate is selected.

Consultants are another popular source of selection. These private employment search firms are very useful while selecting middle level executives. These consultants have an exhaustive database of qualified applicants. A hotel gives the job specifications to the consultants, who in exchange for a fee, selects the most appropriate candidate and forwards their CV to the hotel. Instead of undergoing the tedious task of receiving a large number of applications, the hotel can employ the services of professional consultants who make the job easier. Generally these

consultants are experienced and can sense the pulse and needs of a particular hotel. On the basis of this understanding, they contact people who may be interested in a new job opening and forward their details to the hotel. The hotel may further shortlist the candidates and select accordingly. This is a very important source of recruitment, as hotels require trained employees. The hotel trains the selected employee in the certain areas that are typical and unique to that particular hotel. However basic knowledge, depending on the area of specialisation is imperative.

Job portals like naukri.com and monster.com are another good source of recruitment. Hotels have a tie up with these portals, which like management consultants provide a pool of suitable candidates to select from.

For top management head hunting is generally employed. A "headhunter" is industry term for a third-party recruiter who seeks out candidates, often when normal recruitment efforts have failed. Headhunters are generally considered more aggressive than in-house recruiters or may have preexisting industry experience and contacts. Consultants also poach successful employees in different hotels and try to recruit them. Higher salary and benefits are used too attract such employees to take up a job in their client's hotel and give up their current job.

Call enquiries of unsolicited applicants are also a source for higher-level posts. People make enquiries about job availability in the hotels. The details of such job enquiries are always maintained. Whenever there is an opening in the hotel, these candidates are intimated to apply.

Casual labourers are required very often in hotels. These employees are employed only for a specific period if time. These employees are employed on a contractual basis. The hotel has a tie up with formal contractors or with hotel management schools, which provides part time unskilled and semi skilled employees as and when needed. These part time employees are generally needed to meet the manpower needs during peak seasons. The functions for which casual labourers are employed are : Security Banquet hall staff including catering staff required during events like company meetings, conventions, and weddings.

Laundry Part time employees required in various departments Janitorial services All hotel management

SELECTION PROCEDURE

The selection procedure in any hotel is not standard and it differs from hotel to hotel. However, the general selection procedure is as follows : Selection tests 3-4 rounds of interviews

Conducting tests has become a very popular and important part of the selection process. The different types of tests conducted in hotels are : 1. Aptitude tests - These tests, generally designed by the HR department, check the candidates potential to learn certain skills and to check their general knowledge and awareness levels. It is essential that the candidate has the requisite knowledge and skills for the function he is being screened for.

2. Psychometric testing - Such tests like personality tests, interest tests, and projective tests check the interpersonal skills, interest areas, emotional balance, motivation, introversion. extroversion and self-confidence of the employees. These tests are needed to judge the soft skills f a candidate. Soft skills are very important in the hotel industry. Since the industry is so customer focused, certain levels of extroversion, communication skills and good interpersonal skills are required. Unless the candidate is being selected for a back office job, these soft skills are very important.

3. Trade tests - These tests are conducted to check the technical skill of the candidate. These tests are basically conducted for technical and lower level staff. For e.g. - a candidate for the post of a chef would be asked to cook something.