“A PROJECT REPORT ON PERFORMANCE APPRAISAL

SYSTEM AND ITS EFFECTIVENESS IN FLORA HOTEL,

COCHIN”

A Dissertation Report

Submitted in partial fulfillment of the requirement for the

Award

Of the degree in

Bachelor of Business Administration

MAHATMA GANDHI UNIVERSITY, KOTTAYAM, KERALA.

Under the Guidance of

Mr. AHAMMED JIMSHAD K

Submitted by

P. S. NEEMISH

REG NO- 12118369

DEPARTMENT OF BUSINESS ADMINISTRATION

M E S COLLEGE, MARAMPALLY

(2012-2015)
 DECLARATION

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

that the project work entitle “PERFORMANCE APPRAISAL SYSTEM AND
ITS EFFECTIVENESS IN FLORA HOTEL, COCHIN” submitted to the
MAHATMA GANDHI UNIVERSITY in partial fulfilment of the requirements
for the award of the degree of Bachelor of Business Administration.

I further declare that this work is not partially or wholly submitted for any
purpose and that the date include in the report are collected from various sources,
and true to my knowledge.

P.S.NEEMISH

Marampally REG NO: 12118369

 ACKNOWLEDGEMENT

This project has been made possible by the co-operative and suggestion of many
people to whom I would like to express my great sense of gratitude and profound
thanks.

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

MES College Marampally Aluva. Whose advice and guidance helped me in the
success of this work.

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

guidance and suggestions for the fulfillment of my project.

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

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

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

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

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

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

out and gave me good suggestions for my work.

Marampally P.S.NEEMISH
 CONTENT
CHAPTER TITLE PAGE

NO NO:

: INTRODUCTION
GENERAL INTRODUCTION 2
STATEMENT OF THE PROBLEM 4

SCOPE OF THE STUDY 5

OBJECTIVES 6

LIMITATIONS OF THE STUDY 7

PROFILE HISTORY
INTRODUCTION TO THE HOTEL INDUSTRY 9

COMPANY PROFILE 16

REVIEW OF LITERATURE 28

RESEARCH
RESEARCH METHODOLOGY 45

SOURCES OF DATA 47

FLORA HOTEL APPRAISAL SYSTEM 50

DATA ANALYSIS AND INTERPRETATION 51-68

FINDINGS, SUGGESTIONS AND CONCLUSION 69-72

BIBLIOGRAPHY AND ANNEXTURE 73-77

LIST OF GRAPHS
GRAPH TITLE PAGE

NO NO:

: 1.1 Figure showing Genderwise Classification of Respondents 52

1.2 Figure showing Age Wise Classification of Respondents 53

1.3 Figure showing Experience Wise Classification of Respondents 54

1.4 Figure showing Department Wise Classification of Respondents 56

1.5 Figure showing Qualification Wise Classification of Respondents 57

1.6 Figure showing Which person evaluates the performance 58

1.7 Figure showing Performance Appraisal is improving Employee

Motivation and Job Satisfaction 59

1.8 Figure showing Meeting in the beginning to explain & clarify

Activity task & goals to be achieved 60

1.9 Figure showing Organization have a fixed duration for

Performance Appraisal 61

1.10 Figure showing Performance Appraisal System is able to

improve Performance 62

1.11 Figure showing Performance Appraisal System will contribute

in identifying Potential Traits 63

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

1.13 Figure showing Performance Appraisal System is Transparent

& Free from bias 65

1.14 Figure showing Satisfaction with current Performance Appraisal 66

1.15 Figure showing Providing opportunity for growth and development 67

1.16 Figure showing Helping to identify your strength and weakness 68

LIST OF TABLES
TABLE TITLE PAGE

NO NO:

: 1.1 Genderwise Classification of Respondents 52

1.2 Age Wise Classification of Respondents 53

1.3 Experience Wise Classification of Respondents 54

1.4 Department Wise Classification of Respondents 55

1.5 Qualification Wise Classification of Respondents 57

1.6 Which person evaluates the Performance 58

1.7 Performance Appraisal is improving Employee Motivation

and Job Satisfaction 59

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

to be achieved 60

1.9 Organization have a fixed duration for Performance Appraisal 61

1.10 Performance Appraisal System is able to improve Performance 62

1.11 Performance Appraisal System will contribute in identifying

Potential Traits 63

1.12 Promotion process in the organization is based on 64

1.13 Performance Appraisal System is Transparent & Free from bias 65

1.14 Satisfaction with the current Performance Appraisal 66

1.15 Providing opportunity for growth and development 67

1.16 Helping to identify your strength and weakness 68

 CHAPTER 1
INTRODUCTION

1
 GENERAL INTRODUCTION

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

information about the relative worth of an employee. The focus of the
performance appraisal is measuring and improving the actual performance of the
employee and also the future potential of the employee. Its aim is to measure
what an employee does.

Performance appraisals are regular reviews of employee performance within

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

 Give feedback on performance to employees.

 Identify employee training needs.
 Document criteria used to allocate organizational rewards.
 Form a basis for personnel decisions: salary increases, promotions,
disciplinary actions, etc.
 Provide the opportunity for organizational diagnosis and development.
 Facilitate communication between employee and administration

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

employee. It helps to analyze his achievements and evaluate his contribution
towards the achievements of the overall organizational goals. By focusing the
attention on performance, performance appraisal goes to the heart of personnel
management and reflects the management's interest in the progress of the
employees.

2
People differ in their abilities and their aptitudes. There is always some
difference between the quality and quantity of the same work on the same job
being done by two different people. Therefore, performance management and
performance appraisal is necessary to understand each employee's abilities,
competencies and relative merit and worth to the organization.

Performance appraisal rates the employees in terms of their performance.

Performance appraisal takes into account the past performance of the employees
and focuses on the improvement of the future performance of the employees.

The study on Performance Appraisal of employees was carried out at” FLORA
HOTELS COCHIN”. The main aim of the study was to explore the method
which is followed and effectiveness of the employees.

The primary data required for the study were collected through structured
questionnaire, personal interviews and informal talks. The second data was from
the company manuals and the website of the company. The data were analyzed
and the findings were arrived at the basis of which suggestions are made.

3
 STATEMENT OF THE PROBLEM

Today’s working climate demands a great deal of commitment and effort from
employees, who in turn naturally expect a great deal more from their employers.
Performance appraisal is designed to maximize effectiveness by bringing
participation to a more individual level in that it provides a forum for consultation
about standards of work, potential, aspirations and concerns. It is an opportunity
for employees to have significantly greater influence upon the quality of their
working lives. In these times of emphasis on “quality”, there is a natural equation:
better quality goods and services from employees who enjoy better quality “goods
and services” from their employers.

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

work performance of an employee. In order to be effective and constructive, the
performance manager should make every effort to obtain as much objective
information about the employee's performance as possible. Low performance can
push the organization back in today’s tough competition scenario. The project is
aimed at analyzing the performance appraisal in FLORA HOTELS COCHIN.

4
 SCOPE OF THE STUDY

 The study covers employees of Flora Hotel Cochin.

 A survey was conducted for information about the performance appraisal

system that was used in the company.

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

appraisal system.

 To help management plan future development and growth.

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

departments.

5
 OBJECTIVES

 Identification of the technique of performance appraisal in Flora Hotels.

 Employee attitude towards the present appraisal system.

 To identify the effectiveness of performance appraisal system for

employees.

 Identifying performance appraisal leading to the discovery of unfound

talents amongst the employees.

 To provide suggestions and recommendations to improve the performance

appraisal effectiveness

6
 LIMITATIONS OF THE STUDY

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

for obvious reasons, which would have been very much useful for the
report.
 Few employees sometime felt disturbed, as they were busy with their job.

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

period.

 The sample size was restricted to 50 employees.

 The answers given by the respondents highly depend on the mood and
interest and thus the accuracy fluctuates sometimes.

7
 CHAPTER 2
PROFILE HISTORY

8
INTRODUCTION TO THE HOTEL INDUSTRY

According to the British laws a hotel is a place where a “bonafide” traveler can
receive food and shelter provided he is in a position to for it and is in a fit
condition to receive.
Hotels have a very long history, but not as we know today, way back in the 6th
century BC, when the first inn in and around the city of London began to
develop. The first catered to travelers and provided them with a mere roof to stay
under. This condition of the inns prevailed for a long time, until the industrial
revolution in England, which brought about new ideas and progress in the
business at inn keeping.
The invention of the steam engine made traveling even more prominent. Which
had to more and more people traveling not only for business, but also for leisure
reasons. This lead to the actual development of the hotel industry as we know it
today.
The hotel today not only cater to the basic needs of the guest like food and
shelter provide much more than that, like personalized service etc.
Hotels today are a “Home away from home”.

CLASSIFICATION OF HOTEL
Hotel can be classified into different categories or classes, based on their
operational criteria. For example the type of accommodation they provide,
location of the property, type of services provided, facilities given and the
clientele they cater to can help categories hotels today.
Hotels today are basically classified into the following categories:
1) Market segment:
• Economy / limited service hotel
• Mid-market hotel
• All suite hotels
• Time-share hotels
• Condotel / Condiminium

9
• Executive hotels
• Luxury / Deluxe hotels

Property type:
• Traditional hotel
• Motels
• Bread and breakfast inns
• Commercial hotel
• Chain hotel
• Casino hotel
• Boutique hotels
• Resorts
• Spa’s
• Conference resorts

2) According to size:
• Small hotels [150 rooms]
• Medium hotels [up to 299 rooms]
• Large hotels [up to 600 rooms]

Other classification can be based on:

a) Market segment
b) Property type
c) Size
d) Level of services
e) Ownership and application
f) Plans

10
g) Type of patronage
h) Length of guest stays
i) Location etc…
MARKET SEGMENT
Economy hotel:
It provides efficient sanity private rooms with bath. The furnishing and decor are
acceptable to the majority of travelers. Food and beverage service may or may
not be available.
Mid-market hotels:
They offer comfortable accommodation with private on premises bath. Food and
beverage services and uniformed bell staff. They offer above average luxury.
All Suite hotels:
It offers separate sleeping and living areas along with a kitchenette and a stocked
bar, and offer class service.
First class hotels:
They are luxury hotels with exceptional decor better than average food and
beverage service, uniformed bell services. They often have 2 or 3 dining rooms,
swimming pool, spas etc.
Deluxe hotels:
They are better and offer more specialized services than first class hotels. They
also provide limousine services.

PROPERTY TYPE
Traditional hotels:
They have the basic concept of rooms with breakfast, bell desk services and the
other usual services.
Motels:
They are located on highways. The guest is given parking right outside their
rooms. They usually have a gas station / workshop attached to them.
Resorts:

11
They are usually situated in tourist locations like on rivers, mountains, jungles,
or the sea. They give more privilege to sports activities, leisure and re-creation
activities like sightseeing, adventure sports, etc.
Resident hotels:
Where guest stays for longer duration, stay like weeks, months even years.
Casino hotels:
They are hotels, usually in tourist spots and mainly cater to people who are on
holidays. Casino hotels like the name suggest offer gambling facilities along
with accommodations.

SIZE
Small hotel – up to 150 rooms
Medium hotels –150 to 299 rooms
Large hotels – 299 to 600 rooms
Extra large hotels – above 600 rooms

LEVEL OF SERVICES:
World class services:
They target top business executives and provide services that cater to the needs
of such people like laptops in the rooms, business centre and sectarian services.
Mid-range services:
They appeal to the larger segment of traveling public [tourist]. The services
provided by the hotel are moderate and sufficient to budgeted travelers.

Economy / Limited service hotel:

They provide comfortable and inexpensive rooms and meet the basic
requirement of the guest. These hotels may be large of small in size depending
on the kind of business they get. The key factor behind the survival of these
hotels is that they are priced very low and are in the budget of most of the
travelers.

12
OWNERSHIP AND AFFILIATION:
Independent hotels:
They have no application with other properties. They have their own
management and are single properties with one owner.
Chain hotels:
They impose certain minimum standards, levels of service, policies and
procedures to be followed by their entire establishment. Chain hotels usually
have corporate offices that monitor all their properties and one management runs
these properties. That is all the hotels under the chain are completely owned and
run by the chain itself.
Franchised hotels:
The franchisee grants the entities, the right to conduct business provided they
follow the established pattern of the franchisee, maintains their standards, levels
of service, practice their policies and procedures.

AWARDING OF CLASS:
Awarding of the class is done by the HRACC in India. These are a few things
listed down that are taken into consideration while awarding star category to any
hotels.
Number and types of rooms the hotel has a vital role in this. The factors which
effects this are as follows.
• Elegant and comfortable surroundings
• Rooms efficiency
• Cleanness and sanitation
• Staff size and specialization
• Range and level of services
• Number of Restaurants
• Bars and Beverage services
• Concierge services
• Accessibility to entertainment
• Availability of transportation

13
• Spa and swimming pool facility
• Reservation and referral services.

Star category of hotels [India]

One star [*]

Two star [**]
Three star [***]
Four star [****]
Five star [*****]
Five star deluxe [***** deluxe]
ONE STAR CATEGORIES:

These hotels belong to the no-frills variety that offers basic bedding and
bathroom facilities. The furniture, décor, etc. May not be of high quality, but is
most comfortable. Arrangements for meals may or may not be included, but if
they are, this could be restricted to breakfast only. And remember in one star
hotels you will not have bellboys or hotel staff available for carrying your
luggage.

TWO STAR CATEGORIES:

The extra star here is for a proper reception desk and some amount of staff
presence. Breakfast could be complimentary, but you will need to pay for other
meals. Because of the limited staff, there won’t be room service. Two star hotels
are suitable for people with limited budgets but who are traveling with their
families and need a reasonably safe place to stay.

THREE STAR CATEGORIES:

For a hotel to be recognized as a three star property the architectural features and
general features of the building should be very good there should be adequate
parking facilities. At least 50% of the rooms must be air-conditioned. Also the
ambience and decor of the place must be ecstatic.
They should provide reservation and information facility apart from reception,
information, bell service at least two gourmet dining facility should be available.

14
The establishment may or may not have banqueting facility. They should
provide high levels of personalized services. The staff must be well-trained and
proper standards of hygiene and sanitation must be followed. Also, all properties
have to keep in mind that proper waste management is done.
FOUR STAR CATEGORIES
The premium variety of hotels starts from here. You can expect larger rooms,
better décor, more amenities, better services like availability of porters, 24-hour
room service, laundry, and multi-cuisine restaurants. Four star hotels are mostly
used by corporate travelers where the company pays for the stay.
FIVE STAR CATEGORIES:
Five star category, is only allotted to properties, which have all the qualities of a
three star property and a few additional. Like the entire property must be
centrally air- conditioned. The building on the property must be an attractive
one. All the rooms must be spaced. The property must have a proper banqueting
facility, business centre.
Proper and well-maintained pool and health club a spa is optional. The property
must have 24 hour coffee shop, round the clock room service, a bar, and a
minimum of 1 gourmet restaurant.
FIVE STAR DELUXE CATEGORIES:
Called deluxe/ luxury hotels, these cater to the movers and shakers of the world.
A private balcony, fully stocked mini bar, personal masseur, king-sized beds –
these are just some of the rare luxuries you can treat yourself to at a five star
deluxe hotel. The most well-known brands belonging to this category include the
Taj, Hilton, Leela Palace, Grand Hyatt, etc to name a few. Needless to add, the
tariffs are exorbitant. Nowadays there are some that claim to be seven-star
hotels. The Burj Al Arab Hotel in Dubai is one such super deluxe hotel. The 54-
Storeyed beach-side hotel boasts of ferrying its customers in Rolls Royce cars,
having royal suites with revolving canopy beds, private mosques, transporting
guests to the airport by helicopter and lots more.

15
 COMPANY PROFILE

At Flora Airport Hotel Kochi, your business and leisure needs are our priority.
To ensure you have the best possible experience, at the heart of their hospitality
ethos is their attention to detail, service quality and guest convenience.
They offer an exclusive location providing all the luxurious trappings of a four
star hotel experience, where hospitality is defined by the Flora Group Hotels
promise of Pure Value, Pure Quality, Pure Service, Friendly and courteous staff
is committed to making stay as comfortable and rewarding as possible at Flora
Group Hotels. Are more than just visitors are our esteemed guest.
Flora Group Hotels are created to be your home away from home. Hotels have a
very family oriented environment with no entertainment venues or bars. Hotels
are the ideal choice for both, business travelers and holidaymakers, where they
can safely enjoy a superior range of facilities and services. What‘s more, the
convenient locations of our hotels near the shopping and tourist area ensure a
wonderful time for family members to enjoy the sights and sounds of the city.

16
 Flora Group Hotel of unique hotels and hotel apartments that redefine
luxury delighting guests with unparalleled experiences at every location. We
work hand to ensure that guests enjoy superlative service in keeping with our
values.
VISION OF THE HOTEL
The sky is the limit for us. We recognize and act on hospitality opportunities and
continue to develop and manage world class hotels and hotel apartments that
define the category. The group aims to deliver value, excellence and a sense of
pride to its associates, guests, investors and owners.
MISSION OF THE HOTEL
Mission is to completely delight and satisfy our guests, always exceeding their
expectations in a family oriented environment. We are committed to making a
difference every day; continually getting better to keep us ahead and help us
raise the bar when it comes to service standards.
VALUES OF THE HOTEL
 Integrity
 Professionalism
 Commitment
 Developing outstanding people
 Passion
 Teamwork
 Appreciation & respect for all
 Safety & respect for the environment

17
 PROFILE OF THE HOTELS

Name of the Hotel : FLORA AIRPORT HOTEL

Year of established : 2008 (24/08/2008)
Type of Hotel : 4 Star Hotels
Group : Opp. Cochin International
Airport, Nedumbassery
Telephone : +91 484 261 1520,21,22
Fax : +91 484261 1524
Email : info@florahotelsindia.com
Web : www.florahotelsindia.com
Transport : Airport-100 meters
Railway station-
Always Railway Station - l4km
Angamaly Railway Station- 12km
Accommodation : 60 Guest rooms
Location : Nedumbassery, Cochin

18
GREAT LOCATION
Their location is one of the key features. It is located 100 meters from Cochin
International Airport, close to the business district of Kochi, cultural capital of
Thrissur and in close proximity to the approach route to Munnar Hill Station.

 100 meters from Cochin International Airport.

 02 km to the 18 Hole CIAL Golf Course.
 01 km to the CIAL Trade and Exhibition Centre.
 Conveniently connected to the highways, railway stations and major
tourist destinations in Kerala.

Luxury Living and Home Away From Home

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

modern interiors and furnishings. Each elegant room is ideal for the corporate
travelers and families alike. The rooms are fitted with LCD Television with
Satellite Channels, High Speed Wi-Fi Internet Connectivity, Work Desk, Direct
Dial Telephone, Electronic Safe Deposit Box, well stocked Mini Refrigerator,
Tea/Coffee Maker and En Suite Bathroom.

ROOMS
 Deluxe king - 20 Rooms.
 Deluxe twin - 27 Rooms.
 Executive club - 07 Rooms.
 Business suite - 01 Rooms.
 Flora suite - 04 Rooms.
 Presidential suite- 01 Room.

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 FACILITES AND SERVICES

This hotel ensures that every facility that the guests desire are always
available for their ultimate comfort.
General:
24-Hour Front Desk, Air Conditioning, Breakfast Buffet, Designated Smoking
Area, Elevator. Express Check-In/checkout, Family Rooms, Luggage Storage,
Newspapers, Non-Smoking Rooms, Restaurant, Rooms/Facilities for Disabled
Guests, Safety Deposit Box, Snack Bar, Soundproofed Rooms, Coffee Shop, Spa
& Wellness Centre, Fitness Centre and Rooftop Swimming Pool.

Services:
Airport Shuttle, Babysitting/Child Services, Breakfast in the Room, Business
Centre, Secretarial Services, 24 hrs Concierge Service Dry Cleaning,
Fax/Photocopying, Ironing Service, Laundry, Valet Laundry, Meeting/Banquet
Facilities, Private Check-in/out, Room Service, Shoe Shine, Airport Shuttle
Service, Souvenirs/Gift Shop, 24hrs Security, Spa Treatments and Massages,
Doctor on call, Laptop Rental (on request).

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

Guest Parking
Private parking is possible on site (reservation is not needed) and is free of
charge.

Activities:
Golf Course (within 3 km)

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FOOD AND BEVERAGE EXPERIENCE
Blue Bell Multi-Cuisine Restaurant
A delightful multi cuisine restaurant serving throughout the day offers both the
option of buffet as well as A la carte menu.
Peppermint Café
At peppermint cafe they offer fast food including Arabic, Chinese, Italian, and
Indian specialties with a wide range of ice cream flavors, pastries, Juices, Mock
tails and hot beverages which includes tea and varieties of coffees.

Dedicated banqueting team providing business support

Meeting facilities in the hotel includes 2 Boardrooms with video conferencing
arrangements and state of the art equipment’s, Ideal for a perfect business
meeting. The banquet hall has a capacity of 1200 pax with theme lighting and
live internet streaming.
Why Choose Flora Airport Hotel Meetings And Event Space?
 State of the an equipment
 Drop down screens, LCD projectors, data ports, laptop rentals
 Wi-Fi and high speed internet
 Video conferencing facilities
 Natural Daylight in all meeting rooms
 Balcony space attached to meeting rooms
 Dedicated banqueting team providing business support
1. Boardroom
 Dahlia
 Maple
 Iris
 Orchid
2. Banquet Hall
 Pearl
 Poolside
 Daffodils
3. Ball room 4. Interview Room
 Mehfill Tulips

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HEALTH AND LEISURE

Serenity Spa:

The Serenity Spa and Wellness Centre Dubai, hosts Flora Airport Hotels Spa,
fitness and recreational facilities. Indulge and pamper yourself in our outdoor
swimming pool, sauna and steam room facilities. To relax or for something a
little more energetic, choose from the Serenity Spa’s:
 Spa treatments, therapies and massage
 State of art gymnasium
 Outdoor swimming pool with baby pool
 Whirlpool facilities, sauna and steam rooms.
 Male and female changing facilities and locker rooms.

Health Club

The Flora Kochi Airport hotel boasts advanced cardio equipments and a wide
variety of free weights with an array of the latest in strength training equipment.

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 ORGANIZATION STRUCTURE

CMD

RD

SERVICE

OM

FINANCE ENGINEER HOUSE PRODUCTION FRONT HUMAN SALES

KEEPING OFFICE RESOURCES

VARIOUS DEPARTMENTS IN THE HOTEL

Front Office

Duty Mgr.

FO EX.

FO Asst.

Drivers

The front office department is headed by the front office duty manager (FOM)
whose main duty is to enhance guest services by constantly developing services
to meet guest’s needs. This font-of-the house terms includes those portions of the
hotel with which the guests come in direct contact with during the period of their
stay in the hotel, such as building exterior, lobby, front desk, guest rooms,
function rooms etc.

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House Keeping

Ex.Hk.

HK Sup.

HK Asst.

The housekeeping department requires the following information from the

front desk: Check-in, occupied and check out rooms in order to organize room
cleaning. Special requests from guests, such as baby cot or extra blanket, etc. So
that extra amenities and services can be provided to guests.
In return, the housekeeping department will provide the actual room status
to the front desk for comparison with the computer record which ensures that the
front desk has the correct room status. Any discrepancy found will be double
checked by the Assistant Manager.

Food and Beverage

Asst. F&B Mgr. Ex. Chef

F&B Ex. Sous Chef

Captains CDP

F&B Asst. DCDP

Commi. Asst.

The food and beverage (F&B) department provides food and beverage services
to the hotel guests and visitors through a variety of outlets and facilities/services.
Examples include coffee shop, restaurants, banquet service and room service
(also called in-room dining).

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Sales and Marketing

Sales Mgr.

Sales EX.

Sales Cord.

The main functions of the sales and marketing department involve generating
new business for the hotel, coordinating advertising, as well as sales promotions
and public relations activities aiming at enhancing the hotel’s image.

Human Resources

HRM

Security
HR Ex.

HR Asst.

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

hiring, orientation, training, wages and benefit administration, labor relations,
employee relations and staff development.

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Engineering

Chief Engineer

Supervisor

Technicians

The engineering department is responsible for maintaining the physical plant of

the hotel such as electricity, plumbing, air conditioning, heating and elevator
systems; and for overseeing all mechanical and technical conditions of the hotel.
They are also responsible for the project working of sewage treatment plant also.

Accounting

FM

Security
Sr. Acct Ex

Store Asst.
Ex. Acct

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

member of the management team, can guide the hotel to an increasing
profitability through better control and asset management. In addition, this
department is responsible for monitoring all of the financial activities of a hotel.
Examples include overseeing accounts receivable, accounts payable, payroll, and
cost control systems of the hotel; keeping records of assets, liabilities and
financial transaction of the hotel; preparing the monthly profit-and-loss
statement, coordinating with purchasing department and information technology
department and handling guest's inquiries about billing.

26
Information Technology

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

their knowledge and skills base to keep pace with the fast moving and
enhancements in technology.
Their main function is as follows.
 IT audits
 Application support
 Disaster recovery
 Mobile/telephone support
 Server management
 Web support

Security

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

responsible for implementing procedures which aim at protecting the safety and
security of hotel guests, Visitors, hotel employees and the hotel itself. Examples
include monitoring surveillance equipment’s, patrolling the hotel premises and
maintaining alarm systems.

27
 REVIEW OF LITERAUTURE

INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human Resource (or personnel) management, in the sense of getting things done
through people, is an essential part of every manager's responsibility, but many
organizations find advantages to establish a specialist division to provide an
expert service dedicated to ensuring that the human function is performed
efficiently.
"People are most valuable asset" which no member of any senior management
team would disagree with. Yet, the reality for many organizations is that their
people remain undervalued, under trained and underutilized.
The market place for talented, skilled people is competitive and expensive.
Taking on new staff can be disrupted to existing employees. Also, it takes time
to develop 'cultural awareness', product / process / organizational knowledge and
experience for the new staff members.
FUNCTIONS OF HUMAN RESOURCE MANAGEMENT
Following are the various functions of Human Resource Management that are
essential for the effective functioning of the organization.
1. Recruitment
2. Selection
3. Induction
4. Performance appraisal
5. Training and Development

Recruitment
The process of recruitment begins after manpower requirement is determined in
terms of quality through job analysis and quantity through forecasting and
planning.

28
Selection
The selection is the process of ascertaining whether or not candidates possess the
requisite qualification, training and experience required.

Induction
Induction is the technique by which a new employee is to rehabilitate into the
changes surrounding and introduced to the practices, policies and purposes of the
organization.

WHAT IS "PERFORMANCE APPRAISAL"?

Performance appraisal is defined as the process of assessing the performance and
progress of an employee or a group of employees on a given job and his / their
potential for the future development. It consists of all procedure used in working
organization and potential of employees.
Performance appraisal means systematic evaluation of the personality and
performance of each employees by his superior or some other persons trained in
the technique of merit rating. It employs various ratings technique for comparing
individual employees in a work group, in terms of personnel qualities or
deficiencies and the requirements of their respective jobs.

DEFINITION
 According to Dale Yoder, "Performance appraisal includes all formal
procedure used to evaluate personalities and contributions and potential of
group members in a working organization. It is a continuous process to
secure information's necessary for making corrections and objective
decisions of employees".
 According to Flippo, "Performance appraisal is the systematic, period and
an importance rating of an employee's excellence in matters pertaining to
his present job and his potential for a better job".

29
CHARACTERISTICS
✓ Performance appraisal is a process.

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

during the term of his job.
✓ It is a scientific and objective study. Formal procedure is used in the study.

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

periodically according to a definite plan.
✓ The main purpose of performance appraisal is to ensure information necessary
for making objectives and correct decision an employee.

PROCESS
The process of performance appraisal:
✓ Establishing performance standards

✓ Communicating the standards

✓ Measuring performance

✓ Comparing the actual with the standards

✓ Discussing the appraisal
✓ Talking corrective action

PURPOSES OF PERFORMANCE APPRAISAL

The objective of performance appraisal falls into two categories:
1. ADMINISTRATIVE
2. SELF IMPROVEMENT

30
ADMINISTRATIVE OBJECTIVES

Promotion: This is perhaps the most important administrative use of

performance appraisal. It is the common interests of both the management and
employees to promote employees into a position where they can most effectively
utilize their abilities. A properly developed and administrated performance
appraisal system can aid in determining whether individuals should be
considered for promotion. The system must rate, the rate for the present job and
his potentialities for the higher job.
Transfer: In an organization, it may be necessary to consider various types of
personnel actions such as transfer, layoffs, demotions, and discharged. In some
cases, such actions are called for because of unsatisfactory performance while in
other cases it may be called for due to economic conditions over which the
organization has no control because of changes in the production process. Such
actions can be justified if they are based on performance appraisal.
Wages and Salary Administration: In some cases, the wage increases are based
on the performance appraisal reports. In some cases, appraisal and seniority are
used in combination.
Training and Development: An appropriate system of performance appraisal can
be helpful in identifying the areas of skills or knowledge in which certain
employees are not up to par, thus pointing out general training deficiencies
which presumably should be corrected by additional training, discussions, or
counseling.
Personnel Research: Performance appraisal helps in search in the field of
personnel management. Various theories in human relationship are the outcome
of the efforts to find out the cause and effect relationship between the personnel
and their performance.

31
SELF IMPROVEMENT
The performance appraisals bring out the deficiencies and the shortcoming of the
employees. A discussion between the boss and the subordinates conducted in a
spirit of co-operation and mutual understanding gives the chances to employee to
have an insight on his performance in the general set up of the organization.
Performance appraisal helps human resource development in another way also.
A promotion minded individual can ask for the target program for a position he
seeks and use the information given by performance appraisal to prepare him for
the job and enhance his candidacy.
Performance appraisal also helps to spot out a person's ability to see an
organizational problem, devise ways of attacking it, translate his ideas into
action, and incorporate new information as it arises and carry his plan through
the result. It should be noted that the best predictor of future success as a
manager is past success in managerial duties. The appraisal program asks the
rater to look at the record of managerial success, not the manager's personality.

IMPORTANT RESONS OR BENEFITS OF PERFORMANCE

APPRAISAL
A good system of performance of performance appraisal helps the superior to
evaluate the performance of his employees systematically and periodically. It
also helps him to assign that work to individuals for which they are best suited.
Performance rating helps in guiding and correction, superior may use the result
of rating for the purpose of constructively guiding in the efficient performance of
the work.
The ability of the staff is recognized and can be adequately rewarded by giving
them special increments
Ratings can be used to evaluate the effectiveness of training programs.
Weaknesses of employees are revealed by merit rating and the training program
can be modified accordingly.
Performance appraisal provides an incentive for the employees to better their
performance in aid to improve their rating over others.
Performance appraisal can be used as a basis of sound personnel policy in
relation to transfer and promotion. If the performance of an employee is better
than others, he can be recommended for promotion, but if a person is not doing
well on a job, he may he transferred to some other job.

32
Systematic appraisal will prevent grievances and develop confident amongst the
employees if they are convinced of the impartial basis of evaluation. The records
of merit rating are available in permanent form to protect the management
against subsequent charges discrimination which might be leveled by the trade
union leaders.
Performance appraisal has a beneficial effect on both the persons doing the
appraisal and being appraised. The appraisal brings prominently to the attention
of superiors or executives the importance of knowing their subordinates as a
human resource. The necessity of performance appraisal leads the appraiser to a
thoughtful analysis of people rated and tends to make him more alive with
opportunities and responsibilities in developing the subordinates.

LIMITATIONS OF PERFORMANCE APPRAISAL

Performance appraisal may not yield the desired results because of the following
deficiencies:
If the factors included in the assessment are irrelevant, the result of merit rating
will not be accurate.
Different qualities to be rated may not be given proper weight, age certain in
cases.
Some of the factors are highly subjected like the initiative and personality of the
employees, so the actual rating may not be on scientific lines.
Supervisors often do not have the critical ability in assessing the staff.
Something, they are guided by their personal emotions and likes. So the ratings
are likely to be biased.

33
METHODS OF PERFORMANCE APPRAISAL
There are various methods of merit rating, which may be classified into:

• Traditional methods and

• Modern methods

The methods differ for various obvious reasons.

First, they differ in the source of traits or qualities to be rated. The qualities may
differ due to differences in job requirements, statistical requirements and opinion
of the management. For instant, 'corporation' may not be considered at all
necessary by the management. Then, it is difficult also to reliable rate such
factors as co-operation.
Second, they differ with respect to the coverage who is being rated.
Third, variations may be caused due to the degree of precision attempted in the
evaluation.
Finally, may differ with respect to the methods used to obtain Weight age for the
various traits.
As far as practicable, merit rating should be a continuous process and made at
regular intervals. Any good method of merit rating should assess the following
personal qualities of the employees:
I. Knowledge of work
II. Ability to do the work
III. Quality and quantity of output
IV. Personal qualities like dependability, adaptability, initiative, etc.
V. Special qualities like confidence, leadership, etc.

34
TRADITIONAL METHOD
Traditional methods are very old technique of performance appraisal. They are
based on trait- oriented appraisal. Evaluation of employee is made on this basis
of standards of personal traits or qualities such as attitudes, judgment, versatility,
initiative, dependability, leadership, loyalty, punctuality, knowledge of the job,
etc.
There are seven traditional methods of appraisal

Performance Appraisal

TRADITIONAL METHODS MODERN

METHODS
1. Unstructured Appraisal 1. Management by
Objectives
2. Employee Ranking Rating 2. Behavioral Anchored
3. Forced distribution Rating Scales
4. Graphic- rating scales 3. 3600 Appraisal
5. Check- lists
6. Critical incidents
7. Field review
Fig.1

35
Unstructured appraisal
Under this, the appraiser is required to write down his impression about the
person being appraised in an unstructured way. However, in some organization,
comments are required to be grouped under specific heading such as quality of
job performance.
Reasons for specific job behaviors, personality traits, and development needs.
This system highly subjective and has got its merit in its simplicity and is still in
use especially in the small firm.

Ranking methods
Ranking is a simple process of placing employees in a rank according to their
job performance. It permits comparison of all employees in any single rating
group, regardless of the type of work. All workers are judged on the same factors
and they are rated on the overall basis with reference to their jot, performance
instead of individual assessment of traits.
Paired comparison is an improvement over simple ranking. Under this, every
employee in a job family is compared with every other employee to determine
which the better worker is.

Forced Distribution Methods

The forced distribution system is devised to force the appraiser to fit the
employees being appraised into predetermined ranges of scale. It has an
advantage over the paired comparison system in that two or more employees can
be divided into five point’s scale of outstanding, above average, below average
and poor.
This method obviously eliminates the room for subjective judgment on the part
of supervisors. Besides this, the system is easy to understand and administer. The
objective of this technique is to spread out ratings in the form of a normal
distribution which is open to criticism. Many times, categories are not found in
Workgroup, particularly when the size of the group is comparatively smaller. As
a matter of fact, forced distribution of rankings is feasible for a large group.

36
Graphic Rating Scale
Under this method, scales are established for a number of specific factors and
qualities. Five degrees are established for each factor and general definition
appears at points along the scale. Generally, the rater is supplied with a printed
form, one for each person to be rated. The selection of factors to be measured on
the graphical rating scales is an important point under this system. These are two
types:

I. Characteristics, such as initiatives and dependability.

II. Contributions, such as quantity and quality of work.
Graphic scales impose a heavy burden upon the supervisor. He must report and
evaluate the performance of his subordinates on a scale involving as many as
five degrees on perhaps ten different factors, the main drawback of this system
that the rater may be biased. However, one means of ensuring that the rater has
based his scoring upon substantial evidence is to leave space on the form after
each factor and required him to explain the reason for his rating.

Checklist
It also consists of two techniques:
a. Weighted checklist
b. Forced choice

Weighted check list

Under this method, various statements are prepared in such a manner that they
describe various types and levels of behavior for a particular job. Each statement
is attached with a scale value. At the time of rating the employees, the superior
just collects and checks all the statements. After the weight or values are
attached to the individual traits, the rating up to this level is gathered on the
rating sheet. Then the weights are averaged and employee is evaluated.
The weighted checklist should be prepared by the persons thoroughly acquainted
with job and perfect in preparing and weighting statements. When this process is
over, rating is placed on separated cards. Then these cards are sorted by raters by
who actually observed the accomplishment of the work.

37
Forced choice
This method is used particularly with the objective of avoiding scope for
personal prejudices. Under this method, they are forced to choose between
descriptive statements of seemingly equal worth describing the person in
question. Statements are chosen both the side favorable as well as unfavorable.
For example: the following two pairs of statements may be given to the rater and
the may be asked to select one statement from each pair that is represented by
superiors.
❖ Gives clear instruction to his subordinates.

❖ Can be dependable upon to complete any job assigned.

❖ Makes promises that he knows he cannot keep.

❖ Shows favoritism to some employees.

The rater may feel that either of the two statements in a pair is applicable, but he
must select the one that is more descriptive. Only one of the statements in each
pair is correct in identifying the better performance and his scoring key secret
from the rafter. In this bias is removed from the appraisal process.
Forced choice method is also not free from drawbacks.
❖ It is very expensive to install the system

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

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

item is scored by the personnel department.

Critical incident methods

A critical incident means a significant act by an employee exceeding or failing
any of the requirements of his job. The method requires every supervisor to
record all such significant incidents in each employee's behavior which indicate
effective or successful action and those which indicate ineffective or poor
behavior. These are recorded in a specially designed notebook which contain
categories or characteristics under which various behaviors can be recorded.

38
Under the critical incident methods, the supervisor is supposed to retain from
passing overall judgment and concentrate upon discussing facts as he sees them.
Theoretically, this should provide a sound and an objective basis for appraisal of
the performance of an employee. Strictly speaking, the critical incident methods
are not a rating method as it requires the supervisor to pay close attention to what
an employee is doing.
This method suffers from the defect that outstanding incident happens so
frequently that an individual appraisal may not vary markedly between any two
time periods. It has been observed that most of the time the employees have
neither positive nor negative incident. If the critical event does not happen, it
will be difficult to rate an employee.

Field review method

Under this method, the supervisors are interviewed by an expert from the
personnel department. The expert questions the supervisor to obtain all the
pertinent information on each employee and takes notes in his book. Thus, there
is no rating from with factors or a degree, but overall ratings are obtained. The
workers are usually classified into three categories as outstanding, satisfactory,
and unsatisfactory.

CRITICISM OF TRADITIONAL METHOD

The general criticism of traditional performance appraisal system is that they are
too subjective in nature because all of them are based on personal judgment of
the rater. The personal judgment is always subjected to personal bias or
prejudice as well as pressure from certain other areas. The appraiser may not be
able to judge the competence of the employees because of lack of training.
Because of the judgmental role of the superior under the traditional system,
performance ratings are frequently subjected to a number of errors and
weaknesses which are discussed below.
a) Halo error
b) Central tendency
c) Leniency or strictness
d) Recent behavior bias
e) Miscellaneous bias

39
MODERN APPRAISAL METHODS
There are two important methods of performance appraisal, which are used by
the modern concern. The first is Management by Objectives (MBO) which
represent result oriented appraisal. The second one is Behaviorally- Anchored
Rating Scale (BARS) which is based on rating the behavior of the subordinates

Management by Objective
It was Peter Ducker, who proposed goal setting approach to performance
appraisal, which he called 'Management by Objectives and self control'. This
approach was further strengthened by Douglas McGregor was concerned with
the fact that most traditional appraisal system involved ratings of traits and
personal qualities that he felt were highly unreliable. Besides, the use of such
trait ratings produced two main difficulties.
1. The management was uncomfortable about using them and resisted making an
appraisal.
2. It had a damaging effect on the motivation and development of the
subordinates.

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

approach to subordinate appraisal, actually called work planning and review in
case of General Electric Co, U.S.A under this approach, an employee is not
appraised by his recognizable traits, but by his performance with respect to the
agreed goals or objectives. Thus, the essential feature of this approach is the
mutual establishment of job goals. The application of goal setting approach to
performance involves the following steps:
1. The subordinates discuss his descriptions with his superior and they agree on
the contents of his job and the key result areas.
2. The subordinates prepare a list of reasonable objectives for the coming period
of six to twelve months.
3. He sits with his superior to discuss these target and plans, and a final set is
worked out.
4. Check- points are established for the evaluation of progress, and the ways of
measuring progress are selected.

40
5. The superior and the subordinate's efforts to meet the target mutually
established.
The goal setting approach is based on clear and time bound objectives from the
corporate level to the operate level. This approach can be applied with great
success if the performance appraisal program consists of the following elements:
1. Good job description is available to help setting of goals from different
positions.
2. Superiors have trust in the subordinates to establish reasonable goals.
3. There is emphasis on solving problems rather than criticism of the
performance of the subordinates.
The goal setting approach has done away with the judgmental role of the
superior in the appraisal of their subordinates. It has led to greater satisfaction,
greater agreement, greater comfort and less tension and hostility between the
workers and the management. This approach is considerably superior to the
traditional approach of performance appraisal, It emphasis training and
development of individuals. It is also a problem solving approach rather than tell
and sell approach. This approach has also got a built -in device of self -appraisal
by the subordinates because they know their goals and the standards by which
their performance will be measured.

The goal setting approaches suffer from the following limitation:

1. This approach can be applied only when the goal setting is possible by the
subordinates. It is doubtful if such a procedure can be applied for the
subordinates.
2. This approach is not easy to administer. It involves considerable time, through
and contract between the superior and the subordinates. If the span of
supervision is quite large, it will not be possible for the superior to have
discussions with each and every subordinate for setting up mutually agreed
goals.
3. This approach mainly emphasis counseling, training and development. It is
argued that critical evaluation and modification to improve are incompatible. But
in practice, it is not possible to forego the critical aspect of performance
appraisal.

41
Behavioral Anchored Rating Scales
Behavioral anchor rating scale (BARS) is designed to identify the critical area of
performance of a job, and to describe the more effective and less effective job
behavior for getting results. Performance is evaluated by asking the rater to
record specific, observable job behaviors of an employee and then to compare
these observations with a "behaviorally anchored scale"
Behaviorally anchored rating scale approach combines elements of the
traditional rating scale and critical incident method. Using BARS, job behaviors
from critical incident- effective and ineffective behaviors- are described more
objectively. This method employs individual who are familiar with a particular
job to identify its major components. They are asked to rank and validate
specific behaviors for each of the components.
The various steps involved in developing BARS are as follows:

a. Identification of critical incident of behaviors.

People With knowledge of the task of the job to be probed such as holders and
supervisors, specific examples of effective and ineffective behavior related to job
performance.
b. Identification of performance dimensions
People are assigned the task of developing the instrument cluster pertaining to
the incidents into a small set of key performance dimension.
c. Reclassification of critical behavior
Another group of people who are knowledgeable about the job is instructed to
retranslate or reclassify the critical incidents generated under the previous step.
d. Assigning a scale value to the critical behavior
Each incident is related on a one-to-nine scale with respect to how well it
represents performance on the appropriate dimension.
e. Development of bar instrument
About six or seven incidents for each performance dimension- all having met
both the translation and standard deviation criteria — are sued as behavioral
anchor. The final BARS instruments consist of a series of vertical scale anchored
by the final incident. Each incident is positioned on the scale according to its
mean value.

42
360 DEGREE APPRAISALS AND FEEDBACK
The 360 degree appraisal involves rating of an employee or manager by
everyone above, alongside and below him. Although deployed mostly as a fact-
fining technique, 360 degree appraisal is also used to design promotion and
reward in the organization. Structured questionnaire is used to collect responses
about the employee from his superior’s peers and subordinates.

Merits of 360 degree appraisal

1. The 360 degree appraisal leads to greater self- awareness of those appraised. It
reveals strength and weaknesses in their working style.
2. The gap between self assessment and the view of one's colleagues or peer
group in reduced.
3. If facilitate empowerment of subordinates who get a say in the appraisal of
their bosses.
4. Inflexibility managers are forced to initiate self- change.
5. Facts about organizational culture and ambience are brought to light by the
multiple appraisals.

Limitation of 360 degree appraisal

1. The 360 degree appraisal system ignores performance appraisal in terms of
goals.
2. The candidate being appraised may not accept negative feedback from the
subordinates and peers. He might feel humiliated.
3. Responses from colleague often tend to be biased.
4. Linking rewards to finding less than 360 degree appraisal can prove to be
unfair.
5. The subordinates and might not be fully competent in appraisal.

43
CHAPTER 3
RESEARCH

44
RESEARCH METHODOLOGY

AIM OF THE RESEARCH

The assigned task was to conduct a survey for a well reputed company. The
research is concerned with the systematic and objective collection, analysis and
evaluation of the information about specific aspects in order to help management
make effective decisions. Once the aspect is identified and defined it is the
responsibility of the researcher in a successful manner.
The methodology used in the study involves the collection of primary as well as
secondary data. Research in common parlance refers to a search of knowledge.
One can also define research as a scientific and systematic search for pertinent
information on a specific topic.

RESEARCH DESIGN

Research Design refers to "framework or plan for a study that guides the
collection and analysis of data". Though each research study has its own specific
purpose, but the research design of this project on FLORA HOTEL is
Conclusive in nature.

CONCLUSIVE RESEARCH DESIGN:

Conclusive Research Studies are more formal in nature and are conducted with a
view to eliciting more precise information for the purpose of making marketing
decisions.
These studies can be either:
a) Descriptive or
b) Experimental
Thus, it was a mix of both the tools of Research Design that is, Explorative as
well as Conclusive.

SAMPLE DESIGN

45
A sample design is defined as a plan determined before any data are actually
collected for obtaining a sample from a given population. Sample can be either
probability sample or non-probability sample.

In designing the sample the researcher must specify three things.

1. Sampling unit.

2. Sample size.

3. Sampling technique.

SAMPLING UNIT

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

SAMPLE SIZE

The sample size taken for this survey was 50 employees of Flora Hotel. Employees
from every department was selected according to their availability.

SAMPLING TECHNIQUE USED

When field studies are under undertaken in practical life, consideration of time,
cost and some other factors almost invariably lead to selection of respondents. The
selected respondents constitute a sample and the selection process is called
sampling technique.

I have selected simple random sampling in my project.

SIMPLE RANDOM SAMPLING

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

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

46
SOURCE OF DATA
This research study is exclusively based on primary data collected.

PRIMARY DATA
The objective of the study has been accomplished with the help of primary
data collected from 50 employees. The selected samples are met in persons and
the data has been collected with the help of a questionnaire.
The questionnaire used in this survey consists of structured type of questions. It
is mixed type of questionnaire which contains both close ended and other type of
questions. Primary data refer to the data collected from primary sources. The
primary data were obtained by distributing questionnaires among the employees.
The questionnaires contributed main source of primary data. Also Interview with
HR Manager also contributed in the finding of the research.

SECONDARY DATA
Secondary data were collected from official records of the organization, websites
and from other publications. Data which are not originally collected but rather
obtained from a published or unpublished source, are known as secondary data
The Main Sources are:
1. Journals and records.
2. Magazines.
3. Web sites.

47
STATISTICAL TOOLS
The secondary tools used for analyzing the collected data are:-
1. Percentage
Percentage analysis: percentage refers to the s in making Pedal kind of ratio
which is used comparison between two or more series of data. Percentage can
also be used to compare relative terms and the distribution of two or more series
of data the ease and simplicity of calculating, the general understanding of its
purpose and the universal acceptability of the present static have made it the
most widely and standardizing tool in researchers. Since the percentages reduce
meaningful comparison to be made with data.
Percentage analysis formula
Percentage = (Number of Respondents/ Total population of the sample) x 100

TOOLS FOR THE DATA COLLECTION

QUESTIONNAIRE
Structured questionnaire in which the questions were based on the objective set
for the research was used for collecting the information and to some extend
observation also helped the researcher to give some additional information.
VARIABLES: Sex, age, educational qualification, experience.

INTERVIEW
This method was also adopted for data collection. The interview was mainly
done with Managers so that they will give more details about the kind of
appraisal methods they were following in the past and the present. The details
are as follows.

48
TECHNIQUES USED FOR ANALYSIS
The most convincing and appealing ways in which data may be presented are
tables, charts and pictures. Pictorial representation helps in quick understanding
of the data. Charts have greater memorizing effect as the impressions created by
them last much longer than those created by the figure. A chart can take the
shape of either a diagram or a graph.
To analyze the collected data, simple tool of percentage methods issued. The
study diagram representations are adopted. The data are presented through
different types of diagram are as follows.
1. Table
2. Charts
3. Bar diagram

49
FLORA HOTEL APPRAISAL SYSTEM
A detailed discussion with HR head Mr. Sujith Raj S of Flora Hotel, gave us the
insight in the performance appraisal system followed in the company. The
appraisal model which is followed on an annual basis starting from the month of
April to March. Head of Department's Performance Appraisal was done using
Management by Objectives method and workers Performance Appraisal was
done using 900 method by their own department heads. The same method was
being used by the company from the beginning to the present time.
Process for workers
Appraisal sheet will be given 45 days before the appraisal month to the HOD
who will fill all general information about the workers and start appraisal on
individual basis. During that process worker’s past one year work history will be
filled along with recommendation to HR Department.
General Manager, Head of the Human resource, Head of Department will decide
final promotion of the staff if necessary. Then Head of the Human resource,
Head of Department will find out any problems analyzed in that period, if found
training or counselling will be given to solve that problem.
Process for Head of Department
In the beginning of each financial year HOD will prepare KIP (Key Index
Points)/MBO, only three points will be there, but that will cover the whole
working area of the company. What they can fulfill and achieve during the
year, after the period what they have attained and what was their goal in the
beginning is compared problems are found out if any found training or
counselling will be given to solve that problem.

From the HR we come to know that these methods were highly effective in the
whole hotel industry and in Flora hotels as well, that is why they did not change
it up to the present.

50
 CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

51
GENDERWISE CLASSIFICATION OF RESPONDENTS

Classification No. of Responses Percentage

Male 40 80%

Female 10 20%

Total 50 100%

Table 1.1

Graph 1.1
90%
80%
80%

70%

60%

50%

40%

30%
20%
20%

10%

0%
Male Female

Response Rate

Interpretation
From the above table it can be inferred that 80 % of respondents were male and
20% were females.

52
AGE WISE CLASSIFICATION OF RESPONDENTS

Classification No. of Responses Percentage

20-30 25 50%

31-40 15 30%

41-50 7 14%

51-60 3 6%

Total 50 100%

Table 1.2

Graph 1.2
60%

50%
50%
40%

30%
30%
20%

10% 14%

6%
0%
20-30 31-40 41-50 51-60

Response Rate

Interpretation
From the above table it can be inferred that 50% of respondents was in 20-30
years age, 30% was in 31-40 years age, 14% of the respondents was in 41-50
years age, 6% of the respondents was in 51-60 years age.

53
EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS

Classification No. of Responses Percentage

Less than 3 years 20 40%

4-8 years 17 34%

9-15 years 10 20%

More than 15 years 3 6%

Total 50 100%

Table 1.3

Graph 1.3
45%

40%
40%
35%

30% 34%

25%

20%
20%
15%

10%

5%
6%
0%
Less than 3 years 4-8 years 9-15 years More than 15 years

Response Rate

Interpretation
From the above table it can be inferred that 40% of the respondents experience
are less than 3 years, 34% of the respondents experience is 4-8 years, 20 % of the
respondents experience is 9-15 years, 6% of the respondents experience are more
than15 years.

54
DEPARTMENT WISE CLASSIFICATION OF RESPONDENTS

Classification No. of Responses Percentage

HR Department 1 2%

IT Department 1 2%

Engineering Department 5 10%

Accounting Department 3 6%

Front Office Department 8 16%

House Keeping Department 10 20%

Food & Beverage 12 24%

Department
Sales Department 2 4%

Security Department 8 16%

Total 50 100%

Table 1.4

55
 Graph 1.4
30%

25%
24%
20%
20%
15%
16% 16%

10%
10%
5%
6%
2% 2% 4%
0%
HR IT Engineering Accounting Front Office House Food & Sales Security
Department Department Department Department Department Keeping Beverage Department Department
Department Department

Response Rate

Interpretation
From the above table it can be inferred that 2% of the respondents were from HR
Department, 2% from IT Department, 10% from Engineering Department, 6%
from Accounting Department, 16% from the Front Office Department, 20% from
the House Keeping Department, 24% from Food & Beverage Department, 4%
from Sales Department and 16% of us.

56
QUALIFICATION WISE CLASSIFICATION OF
RESPONDENTS

Classification No. of Responses Percentage

UG degree 21 42%

Other 14 28%

Diploma 11 22%

Post Graduate 4 8%

Total 50 100%

Table 1.5

Graph 1.5
45%

40% 42%
35%

30%

25% 28%

20% 22%
15%

10%

5% 8%

0%
UG degree PG degree Other ITI Post Graduate

Response Rate

Interpretation
From the above table it can be inferred that 425 of the respondents have a UG
degree, 8% have PG degree, 22% have ITI, 28% have other qualifications.

57
1. Who evaluates your performance?
Opinion No. of Responses Percentage

HOD 47 94%

GM 03 06%

External Consultant 0 0%

Others 0 0%

Total 50 100%

Table 1.6

Graph 1.6
100%
90% 94%
80%
70%
60%
50%
40%
30%
20%
10%
6% 0% 0%
0%
HOD GM External Consultant Others

Response Rate

Interpretation
From the above table it can be inferred that 94 % of the employee performance is
evaluated by the Head of the Department. The Head of the Department that is 3
persons 6% is evaluated by GM.

58
2. Does Performance Appraisal is improving Employee Motivation and Job
Satisfaction?
Opinion No. of Responses Percentage

Yes 40 80%

No 10 20%

Total 50 100%

Table 1.7

Graph 1.7
90%
80%
80%

70%

60%

50%

40%

30%
20%
20%

10%

0%
Yes No

Response Rate

Interpretation
From the above table it can be inferred that 80% of the employees believe that
performance appraisal is improving their motivation and job satisfaction, but 20
% of the employees think performance appraisal is not improving their
motivation and job satisfaction.

59
3. Do you have meeting in the beginning to explain & clarify activity task &
goals to be achieved?

Opinion No. of Responses Percentage

Yes 50 100%

No 0 0%

Total 50 100%

Table 1.8

Graph 1.8
120%

100%
100%

80%

60%

40%

20%

0%
0%
Yes No

Response Rate

Interpretation
From the above table it can be inferred that 100 % of the employees have a
meeting in the beginning to explain and clarify activity task and goals to be
achieved in that year.

60
4. Should organization have a fixed duration for Performance Appraisal?
Opinion No. of Responses Percentage

Yes 50 100%

No 0 0%

Total 50 100%

Table 1.9

Graph 1.9
120%

100%
100%

80%

60%

40%

20%

0%
0%
Yes No

Response Rate

Interpretation
From the above table it can be inferred that 100% of the employees agreeing the
stating organization should have a fixed duration for performance appraisal.

61
5. Whether the Performance Appraisal System is able to improve Performance?

Opinion No. of Responses Percentage

Yes 35 70%

No 15 30%

Total 50 100%

Table 1.10

Graph 1.10
80%
70%
70%

60%

50%

40%
30%
30%

20%

10%

0%
Yes No

Response Rate

Interpretation
From the above table it can be inferred that 70% of the employees Performance
Appraisal System are able to improve Performance and 30% of the Performance
Appraisal System is not able to improve Performance.

62
6. Do you think Performance Appraisal System will contribute in
identifying Potential Traits?
Opinion No. of Responses Percentage

Yes 30 60%

No 15 30%

Cannot say 05 10%

Total 50 100%

Table 1.11

Graph 1.11
70%

60%
60%
50%

40%

30%
30%
20%

10%
10%
0%
Yes No Can't say

Response Rate

Interpretation
From the above table it can be inferred that 60% of the employees think that
Performance Appraisal System will contribute in identifying Potential Traits of
themselves, 15% do not agree that and 10 % cannot say.

63
7. Promotion process in the organization is based on-

Opinion No. of Responses Percentage

Performance 03 06%

Experience 07 14%

Educational Qualification 02 04%

All of the above 38 76%

Total 50 100%

Table 1.12

Graph 1.12
80%

70% 76%

60%

50%

40%

30%

20%

10% 14%
6% 4%
0%
Performance Experience Educational Qualification All of the above

Response Rate

Interpretation
From the above table it can be inferred that 6% of employee think that promotion
is based on performance, 14 % employee thinks it is based on experience, 4% on
educational qualification and 76% thinks all the factors are required for
promotion.

64
8. Do you think that the past and the present Performance Appraisal System is
Transparent & Free from bias?

Opinion No. of Responses Percentage

Yes 50 100%

No 0 0%

Total 50 100%

Table 1.13

Graph 1.13
120%

100%
100%

80%

60%

40%

20%

0%
0%
Yes No

Response Rate

Interpretation
From the above table it can be inferred that 100% of the employees think that the
past and the present Performance Appraisal System is Transparent & Free from bias.

65
9. Are you satisfied with the current Performance Appraisal System?

Opinion No. of Responses Percentage

Highly satisfied 28 56%

Satisfied 13 26%

Just satisfied 9 18%

Dissatisfied 0 0%

Total 50 100%

Table 1.14

Graph 1.14
60%

56%
50%

40%

30%

26%
20%
18%
10%

0%
0%
Highly satisfied Satisfied Just satisfied Dissatisfied

Response Rate

Interpretation
From the above table it can be inferred that 56% of the employees are highly satisfied
with the current Performance Appraisal System. 26% are satisfied with the current
Performance Appraisal System. 18% are just satisfied with the current Performance
Appraisal System.

66
10. Do Flora Hotels provide opportunity for growth and development?

Opinion No. of Responses Percentage

Yes 47 94%

No 3 06%

Total 50 100%

Table 1.15

Graph 1.15
100% 94%
90%
80%
70%
60%
50%
40%
30%
20%
10% 6%

0%
Yes No

Response Rate

Interpretation
From the above table it can be inferred that 94 % of the employees think Flora Hotels
provide opportunity for growth and development, 6% do not think so.

67
11. Does Performance Appraisal helps to identify your strength and
weakness?
Opinion No. of Responses Percentage

Yes 50 100%

No 0 0%

Total 50 100%

Table 1.16

Graph 1.16
120%

100%
100%

80%

60%

40%

20%

0%
0%
Yes No

Response Rate

Interpretation
From the above table it can be inferred that 100 % of the employees agreeing that
the Performance Appraisal helps to identify your strength and weakness.

68
 CHAPTER 5
FINDINGS, SUGGESTIONS AND CONCLUSION

69
FINDINGS

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

annual basis starting from the month of April till March. Head of
Departments Performance Appraisal was done using Management by
objectives methods and workers Performance Appraisal was done using
900 method by their own department heads. The same method was being
used by the company from the beginning to the present time.

 Employee attitude towards the current performance appraisal method is

very much satisfactory, none of the employees said in the survey that they
were dissatisfied. From the HR department, we have found that all the
employees are fully cooperative in the full appraisal process. All
employees also agreed the fact that the past and present appraisal system
is transparent and bias free.

 According to the employees majority of them told that performance

appraisal was able to improve their performance. It also increased
motivation as well because they felt that company is interested in their
performance and adopting methods to improve it.

 The majority of the employees also told that performance appraisal system
was also helping in finding their hidden talent and putting into action as
well.

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

performance and educational qualification, in which experience to be the
first factor in the hotel industry.

 The company also did provide opportunity for growth and development
and also helped to identify strength, weakness and hidden talent.

70
SUGGESTIONS

 Implement more methods of performance appraisal and update the

employees about the type of method used for performance evaluation.

 The whole performance appraisal should be kept more transparent and

free from bias in the future.

 More opportunities should be provided for expressing their ideas and

plans to implement their level performance.
 More training should be offered to the mentally stressed staff which
improve their potential and result in top appraisal points.
 Overtime should be taken care of at the time of performance appraisal,
which would motivate the employees to perform better for longer hours.
 Suggestion could be obtained from employees regarding framing the
performance appraisal system.

 Appraisal feedback is very important in any performance appraisal

program. Should be carefully communicated by making high performers
increase their target and low performers to build up their confidence

71
CONCLUSION

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

performance in a systematic way. The performance being measured against such
factors as job knowledge, quality and quantity of output, initiative, leadership
abilities, supervision, dependability, co-operation, judgment, versatility, health and
the like. It also helps in developing strength and rectifies weakness of the employees.

Flora Hotel has been conducting performance appraisal from the past years from its
formation. Employees were cooperative and fully supporting the performance
appraisal in the institution and it was found to be highly effective in the employee’s
performance.

Flora Hotel has been running successfully for past several years and has created a
good name among its customers and society. People having poor background are
given training and provided with jobs. Performance appraisal can be conducted more
effectively by using the right tools and properly reviewing and updating the
performance appraisal program. Suggestion from employees and experienced
personnel can further enhance and make the performance appraisal an ideal
evaluation system.

72
 CHAPTER 6
BIBLIOGRPAHY AND ANNEXTURE

73
BIBLIOGRAPHY
Books

 Kothari C.R, “Research methodology”, New Delhi, New Age International (P)
Ltd, 2006.

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

Delhi, Published By Dhanpat Rai and Co. (P) Ltd, Educational and Technical
publisher, 2005.

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

Hill publishing Company Ltd, 2005.

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

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

 Flora hotel Cochin Records.

Web sites

 http://www.florahotelsindia.com/contact-us.aspx
 en.wikipedia.org/wiki/Performance_appraisal
 http://www.hrwale.com/performance-management/performance-appraisal-
methods/

74
 ANNEXTURE
QUESTIONNAIRE
Name :
Gender : ( ) Male ( ) Female
Age group : ( ) 20-30
( ) 31-40
( ) 41-50
( ) 51-60
Experience : ( ) Less than 3 years
( ) 4-8 years
( ) 9-15 years
( ) More than 15 years
Department: ______________________________
Qualification ______________________________

1) Who evaluates your performance?

a) HOD
b) GM
c) External consultant
d) Others

2) Does Performance Appraisal is improving Employee Motivation and

Job Satisfaction?

a) Yes
b) No

3) Do you have meeting in the beginning to explain & clarify activity task &
goals to be achieved?

a) Yes
b) No

75
4) Should organization have a fixed duration for Performance Appraisal?

a) Yes
b) No

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

a) Yes
b) No

6) Do you think that the Performance Appraisal System will also contribute
in Identifying Potential Traits?

a) Yes
b) No
c) Cannot say

7) Promotion process in the organization is based on-

a) Performance
b) Experience
c) Educational Qualification
d) All of the above

8) Do you think that the past and the present Performance Appraisal System
is Transparent & Free from Bias?

a) Yes
b) No

76
9) Are you satisfied with the current Performance Appraisal System?

a) Highly satisfied
b) Satisfied
c) Just satisfied
d) Dissatisfied

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

a) Yes
b) No

11) Does Performance Appraisal helps to identify your strength and

weakness?
a) Yes
b) No

Give your suggestion for the performance appraisal system in

FLORA HOTEL COCHIN
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________

77