Dr. B.

R Ambedkar University Delhi

School of Business, Public Policy and
Entrepreneurship
Compensation and Reward Management

A REPORT PREPARED BY

Members
Bonu Hembram (S213F0008)
Mahica Kain (S213F0021)
Modoni Annie (S213F0026)
Milind (S213F0024)
Rishabh Saxena (S213F0032)
 I. Strategy and Structure

Hospitality Industry in India

The hospitality industry in India is a rapidly growing sector that includes a wide
range of businesses, including hotels, restaurants, resorts, and other related
services. The industry has seen significant growth in recent years due to
increased tourism and business travel to India, as well as a growing middle class
with higher disposable incomes.

The hotel industry is a major component of the hospitality sector in India, with
both domestic and international hotel chains operating throughout the country.
Many of these hotels offer a range of amenities and services, including fine
dining restaurants, spa and wellness facilities, and meeting and event spaces.

In addition to hotels, the restaurant industry in India has also experienced

significant growth in recent years, with a wide variety of local and international
dining options available to consumers. The rise of online food delivery services
has also contributed to the growth of the restaurant industry in India.

The tourism industry is a major driver of growth in the hospitality sector in India,
with millions of domestic and international tourists visiting the country each year.
The government of India has implemented several initiatives to promote tourism,
such as the "Incredible India" campaign, which aims to showcase India's rich
cultural heritage and diverse tourist destinations.
History of Ama Cafe
The cafe was founded in 2013 by Tenzin Thardoe with an aim to provide a
holistic experience of the Himalayan region through coffee and food in a setting
that provides a feeling of being in the mountains.

Website: http://www.amacafe.co

The cafe which was started out as a small corner inspired by the tea stalls and
cafes in Dharamsala and Kathmandu now has grown up as an all-day breakfast
outlet focusing on coffees and bakery. The Founder and Director, Tenzin
Thardoe, wanted to bring his experience of the hills to Delhi.

Ama Cafe - Majnu ka Tila, New Delhi

Product Offerings
What are different work areas/functions in the
organization? What is the role and contribution of
each work area?
Owner/Manager: The owner or manager oversees the entire operation of the
cafe, including financial management, staffing, marketing, and customer service.

Chef: The chef is responsible for creating the menu, preparing food, and
ensuring that the food is of high quality and presented well.

Barista: The barista is responsible for making and serving coffee and other
beverages, as well as providing excellent customer service.

Server: The server takes orders, serves food and drinks, and interacts with
customers to ensure they have an enjoyable experience.

Cashier: The cashier handles payment transactions and assists with general
customer service.

Dishwasher: The dishwasher is responsible for cleaning dishes, utensils, and

kitchen equipment.

Cleaner: The cleaner is responsible for ensuring that the cafe is clean and tidy at
all times, including the kitchen, dining area, and restrooms.

What are the different levels of work in the

organization?

Levels of Work in the Ama Cafe

● Entry-level or front-of-house staff: These employees typically have

responsibilities such as greeting customers, taking orders, preparing
beverages, handling transactions, and maintaining a clean and organized
cafe environment. They may also be responsible for basic food preparation
and service.

● Supervisors or shift leaders: These employees are responsible for

overseeing the daily operations of the cafe, including managing staff,
 handling customer complaints, ensuring that the cafe is stocked with
necessary supplies, and overseeing food and beverage preparation.

● Management or store managers: These employees are responsible for

the overall operation of the cafe, including hiring and training staff,
managing finances and inventory, creating schedules, and ensuring that
the cafe is in compliance with health and safety regulations.

What is the basis on which these work levels are

decided?

1. Experience: Experience in the hospitality industry is also an important

factor in determining work levels. Ama Cafe may prefer candidates with
previous experience in a similar role or in a similar restaurant chain.
2. Skills: Skills such as communication, customer service, problem-solving,
and leadership are critical to success in the hospitality industry. Ama Cafe
may evaluate the candidate's skills during their walk-in interview to
determine their suitability for different work levels.
3. Performance: The cafe may also evaluate a worker's performance in their
current role to determine their potential for advancement to higher work
levels. Workers who consistently meet or exceed performance
expectations may be considered for supervisory positions.

II. Pay for Position

Job Description for the position of Chef

Job overview
Here at Ama Cafe (MKT).we are the leading company in our industry in the
Capital City area. We are hiring an experienced Chef to help us keep growing. If
you're dedicated and ambitious, AMA Cafe is an excellent place to grow your
career.

Responsibilities for Chef

● Collaborate with kitchen management on menu items.

● Attend all staff meetings.
● Prepare the kitchen before meal times.
● Prepare menu items as ordered.
● Ensure proper preparation of all food to be served.
● Assist head chef with large projects when requested.
● Maintain a clean kitchen at all times.
● Work in a safe and efficient manner.

Qualifications for Chef

● Degree in the Culinary Arts (preferred)

● 3+ years in a kitchen environment
● Understanding of different culinary profiles and techniques
● Capable of following instructions without variation
● Ability to regularly lift 35 lbs
● A desire to learn new flavors and techniques
● The capability to work safely, efficiently and neatly
● Willingness to work nights and weekends(rush days)
● Comfortable working long shifts of up to 12 hrs.

Job Evaluation Method

The best job evaluation method for Ama Cafe would depend on the specific
needs and circumstances of the organization. However, the Point Factor
Method is often considered to be the most accurate and widely used method for
job evaluation.

In a cafe setting, the Point Factor Method would involve breaking down each
job into various factors such as
● skills required
● responsibilities
● Working conditions, etc.
Each factor would then be assigned a point value based on its importance to the
job. The total points would then be used to determine the relative worth of each
job.

This method provides a more objective and systematic approach to evaluating

jobs, and can help ensure that employees are paid fairly based on the specific
requirements and demands of their job. However, it can be more time-consuming
and complex to implement compared to other methods such as the Ranking
Method. Ultimately, the best job evaluation method for a cafe would depend on
the specific needs and circumstances of the organization.

III. Benchmarking

Who are the labor market competitors? Why does the organization
benchmark against these competitors?

Some of the competitors of Ama Cafe in Delhi may include other cafes,
restaurants, and coffee shops in the area that offer similar products and services.
These competitors may include local and regional chains as well as independent
businesses. Some well-known cafes and coffee shops in New Delhi include Cafe
Coffee Day, Starbucks, The Coffee Bean & Tea Leaf, Barista, and Chaayos,
among others. In addition, Ama Cafe may also face competition from fast food
chains, bakeries, and other food establishments that offer breakfast, lunch, and
snack options to customers in Delhi.
Ama Cafe benchmark against these competitors because of the following
reasons

● To identify best practices: By benchmarking against other hotel chains

and independent hotels, Ama Cafe can identify best practices in areas
such as customer service, operations, and employee engagement. This
can help them to adopt and implement strategies that have been proven to
be successful by its competitors.

● To measure performance: By comparing its performance against its

competitors, Ama Cafe can gain a better understanding of how well it is
performing in various areas.

● To stay competitive: By benchmarking against its competitors, Ama Cafe

can keep up with the market trends and identify areas where it is falling
behind and develop strategies to catch up or surpass its competitors.

With respect to other enterprises in the same industry and geographical

area, how much does the organization pay to people (for different jobs)?

Job Position Experience (in years) Salary P.A.

Chef >3 4.8 LPA

Waiting Staff >0 1.8 LPA

Cleaner/Dishwasher >0 1.5 LPA

Shift Manager 0-3 2.8 LPA

IV. Pay Structure

The pay structure for a cafe in Delhi, India will depend on several factors, such
as the type of cafe, the location, the size of the cafe, and the job roles required.
Here is a pay structure designed by us for Ama cafe

● Cafe Manager: INR 30,000 - INR 35,000 per month + Over Time
● Head Chef: INR 35,000 - INR 40,000 per month + Bonus + Over Time
● Shift Manager: INR 20,000 - INR 25,000 per month + Over Time
● Server: INR 13,000 - INR 15,000 per month + Tips + Performance based
incentives + Over Time
● Dishwasher: INR 10,0000 - INR 13,000 per month + Performance based
incentives + Over Time

It's important to note that the above figures are only a rough estimate. It's also
important to consider benefits such as health insurance, paid time off, and profit
sharing plans as part of the overall compensation package.

In addition, it's recommended to review and adjust the pay structure periodically
to ensure that it remains competitive and fair based on changes in the market
and the specific needs of the cafe.

V. Pay for Person

What are the skills/competencies required by each of the levels in the

organization?

Position Skills Required

Entry level ● Time Management

● Food & beverage server ● Physical Stamina
● Front Desk Agent ● Teamwork
● Cleaners ● Customer Service

Supervisory & Management Position ● Leadership

● Shift Leader ● Business Acumen
● Restaurant Manager ● Excellent Communication
● Problem Solving
● Time Management
● Attention to Detail

General Manager ● Leadership

 ● Academic Qualification
● Years of Experience
● Strategic Planning
● Analytical Skills
● Problem Solving
● Financial Management
● Communication

VI. Pay for Performance

What systems of pay for performance are employed/can be employed in the

enterprise?

Pay for performance is a compensation system in which an employee's pay is

directly tied to their performance. In Ama cafe, pay for performance can be used
to incentivize employees to work harder and more efficiently, ultimately leading to
higher profits for the cafe.

Here are some steps that Ama cafe can take to implement a pay for performance
system:

● Define performance metrics: Identify key performance indicators (KPIs)

that are relevant to each job role in the cafe. For example, KPIs for a
server might include customer satisfaction ratings or the number of upsells
per table.

● Set performance targets: Establish clear performance targets for each

KPI, and communicate these targets to the employees. For example, a
server may be expected to achieve a customer satisfaction rating of 90%
or higher.

● Determine performance-based pay: Determine the amount of pay

increase or bonus that an employee will receive for achieving their
 performance targets. This amount should be significant enough to
incentivize employees to strive for high performance.

● Evaluate performance: Regularly evaluate employee performance based

on the established KPIs and targets. Provide feedback to employees on
their performance and identify areas for improvement.

● Adjust pay based on performance: Adjust employee pay based on their

performance. If an employee meets or exceeds their performance targets,
they should receive the agreed-upon pay increase or bonus. If they do not
meet their targets, their pay increase or bonus may be reduced or
eliminated.

It's important to note that implementing a pay for performance system can be
complex, and it's important to ensure that it is fair and transparent for all
employees. The cafe should establish clear guidelines and communicate them
effectively to employees to avoid misunderstandings or disputes. Additionally, it's
important to ensure that the performance metrics are relevant and meaningful for
each job role in the cafe.

What measures of performance is pay tied to/can be tied to? Why?

The measures of performance that pay can be tied to in a cafe can vary
depending on the job role and the cafe's goals and objectives. Here are some
examples of performance metrics that can be tied to pay in a cafe:

● Sales: Pay can be tied to individual or team sales performance, such as

the total amount of sales generated or the number of upsells made.

● Customer satisfaction: Pay can be tied to customer satisfaction ratings,

such as the average rating received on online review sites or customer
surveys.

● Productivity: Pay can be tied to productivity measures, such as the

number of tables served or the amount of food prepared in a certain period
of time.
 ● Attendance: Pay can be tied to attendance measures, such as the
number of shifts worked or the number of times an employee is late or
absent.

● Quality of work: Pay can be tied to the quality of work, such as the
number of errors made or the quality of customer interactions.

What kind of collective rewards or group pay/incentives the organization

offers or can offer?

Offering collective rewards or group pay/incentives can be a great way to

promote teamwork and collaboration among employees in a cafe. Here are some
examples of collective rewards or group pay/incentives that a cafe can offer:

● Team-based bonuses: Offer bonuses to the entire team when the cafe
achieves certain goals, such as hitting a monthly revenue target or
achieving a high customer satisfaction rating.

● Profit sharing: Offer employees a percentage of the cafe's profits,

distributed evenly among all employees or based on seniority or job role.

● Performance-based contests: Set up friendly contests between

employees or teams, with rewards for the winners. For example, the team
that sells the most specials in a week may receive a prize.

● Team outings: Plan team outings, such as a group lunch or an activity

outside of work. This can help promote team bonding and encourage
employees to work together more effectively.

Why are these offered/should be offered?

Offering group incentives can be beneficial for several reasons:

● Encourages teamwork: Group incentives encourage employees to work
together towards a common goal. This can improve teamwork,
communication, and collaboration among employees.

● Increases motivation: When employees work towards a shared reward,

they may be more motivated to perform well and contribute to the team's
success.

● Fosters a positive work environment: Group incentives can help create

a positive work environment where employees feel valued and supported.
This can lead to higher job satisfaction and lower turnover rates.

● Improves overall performance: Group incentives can improve overall

performance by encouraging employees to work harder and smarter.
When everyone is focused on achieving a common goal, it can lead to
better results for the cafe as a whole.

● Recognizes collective efforts: Group incentives recognize the collective

efforts of a team rather than singling out individual performers. This can
promote a sense of camaraderie and equality among employees.