EMPLOYEE HR POLICIES IN HOSPITALITY INDUSTRIES

CHAPTER 1

INTRODUCTION

 Human Resource
 Human Resource Management
 Human Resource Development
 Human Resource Policies
 Hospitality Industry

1
 EMPLOYEE HR POLICIES IN HOSPITALITY INDUSTRIES

CHAPTER 1
INTRODUCTION

1.1 HUMAN RESOURCE

Human resources is used to describe both the people who work for a company or organization
and the department responsible for managing resources related to employees. The term human
resources was first coined in the 1960s when the value of labor relations began to garner
attention and when notions such as motivation, organizational behavior, and selection
assessments began to take shape.

Human resource management is a contemporary umbrella term used to describe the management
and development of employees in an organization, also called personnel or talent management
(although these terms are a bit antiquated). Human resource management involves overseeing all
things related to managing an organization’s human capital.

Human resource management is therefore focused on a number of major areas, including:

 Recruiting and staffing

 Compensation and benefits

 Training and learning

 Labor and employee relations

 Organization development

Due to the many areas of human resource management, it is typical for professionals in this field
to possess specific expertise in one or more areas. Just a few of the related career titles for HR
professionals include:

 Training development specialist

 HR manager
2
  Benefits specialist

 Human resource generalist

 Employment services manager

 Compensation and job analysis specialist

 Training and development manager

 Recruiter

 Benefits counselor

 Personnel analyst

Human resource management involves developing and administering programs that are designed
to increase the effectiveness of an organization or business. It includes the entire spectrum of
creating, managing, and cultivating the employer-employee relationship.

For most organizations, agencies, and businesses, the human resources department is responsible
for:

 Managing job recruitment, selection, and promotion

 Developing and overseeing employee benefits and wellness programs

 Developing, promoting, and enforcing personnel policies

 Promoting employee career development and job training

 Providing orientation programs for new hires

 Providing guidance regarding disciplinary actions

 Serving as a primary contact for work-site injuries or accidents

Human resource management is about:

3
  Addressing current employee concerns: Unlike company managers who oversee the
day-to-day work of employees, HR departments deal with employee concerns such as
benefits, pay, employee investments, pension plans, and training. Their work may also
include settling conflicts between employees or between employees and their managers.
 Acquiring new employees: The human resource management team recruits potential
employees, oversees the hiring process (background checks, drug testing, etc.), and
provides new employee orientation.
 Managing the employee separation process: The HR management team must complete a
specific set of tasks if an employee quits, is fired, or is laid off. Paperwork must be
completed to ensure that the process was completed legally. Severance pay may be
offered or negotiated, benefits must be settled, and access to company resources must be
severed via the collection of keys, badges, computers, or sensitive materials from the
employee.
 Improving Morale: Effective HR teams encourage company employees to do their best,
which contributes to the overall success of the company. Their work often involves
rewarding employees for good performance and creating a positive work environment.

The role of human resources professionals is to ensure that a company’s most important asset—
its human capital—is being nurtured and supported through the creation and management of
programs, policies, and procedures, and by fostering a positive work environment through
effective employee-employer relations.

The concept behind human resource management is that employees who are subject to effective
human resource management are able to more effectively and productively contribute to a
company’s overall direction, thereby ensuring that company goals and objectives are
accomplished.

Today’s human resource management team is responsible for much more than traditional
personnel or administrative tasks. Instead, members of a human resource management team are
more focused on adding value to the strategic utilization of employees and ensuring that
employee programs are impacting the business in positive and measurable ways.

4
An August 2014 Forbes article explored the shifting goal of today’s human resource
management teams. More specifically, the article found that HR teams focused on things that
don’t add true value to the organization are often deemed reactive, uncreative, and lacking basic
business understanding. On the other hand, HR professionals who want to be recognized as true
business partners must see themselves as business people who specialize in HR, not as HR
people who advise a business.

1.2 HUMAN RESOURCE MANAGEMENT

Human Resource Management is the process of acquiring, developing, motivating and retaining
human resources in an organization. It is concerned with activities that are designed for and
coordinates the activities of human resource. Since human resource is essential component of all
organization, human resource management plays vital role in utilizing their services, developing
their skills, motivating them for enhancing performance and keeping them committed to the
organization for accomplishing the organizational objectives.

Human Resource Management is the term used to describe formal systems devised for the
management of people within an organization. The responsibilities of a human resource manager
fall into three major areas: staffing, employee compensation and benefits, and defining/designing
work. Essentially, the purpose of HRM is to maximize the productivity of an organization by
optimizing the effectiveness of its employees. This mandate is unlikely to change in any
fundamental way, despite the ever-increasing pace of change in the business world.

1.2.1 Position and Structure of Human Resources Management

Human resource department responsibilities can be subdivided into three areas: individual,
organizational, and career. Individual management entails helping employees identify their
strengths and weaknesses, correct their shortcomings; and make their best contribution to the
enterprise. These duties are carried out through a variety of activities such as performance
reviews, training, and testing. Organizational development, meanwhile, focuses on fostering a
successful system that maximizes human (and other) resources as part of larger business
strategies. This important duty also includes the creation and maintenance of a change program,
which allows the organization to respond to evolving outside and internal influences. Finally,
there is the responsibility of managing career development. This entails matching individuals
with the most suitable jobs and career paths within the organization.
5
HRM structures vary widely from business to business, shaped by the type, size, and governing
philosophies of the organization that they serve. But most organizations organize HRM functions
around the clusters of people to be helped- they conduct recruiting, administrative, and other
duties in a central location. Different employee development groups for each department are
necessary to train and develop employees in specialized areas, such as sales, engineering,
marketing, or executive education. In contrast, some HRM departments are completely
independent and are organized purely by function. The same training department, for example,
serves all divisions of the organization.

HR is viewed and included as an integral part of the business process, similar to its marketing,
finance, and operations counterparts. However, HR will retain a centralized functional
relationship in areas where specialized expertise is truly required," such as compensation and
recruitment responsibilities.

Figure 1: HRM functions

1.2.2 Human Resource Management: Key Responsibilities

Human resource management is concerned with the development of both individuals and the
organization in which they operate. HRM, then, is engaged not only in securing and developing
the talents of individual workers, but also in implementing programs that enhance
communication and cooperation between those individual workers in order to nurture
organizational development.

6
The primary responsibilities associated with human resource management include: job analysis
and staffing, organization and utilization of work force, measurement and appraisal of work
force performance, implementation of reward systems for employees, professional development
of workers, and maintenance of work force.

 Job analysis consists of determining, often with the help of other company areas, the
nature and responsibilities of various employment positions. This can encompass
determination of the skills and experiences necessary to adequately perform in a position,
identification of job and industry trends, and anticipation of future employment levels
and skill requirements. "Job analysis is the cornerstone of HRM practice because it
provides valid information about jobs that is used to hire and promote people, establish
wages, determine training needs, and make other important HRM decisions transfers and
promotions, and out of an organization. Once the recruiting part of the staffing process
has been completed, selection is accomplished through job postings, interviews, reference
checks, testing, and other tools.
 Performance appraisal is the practice of assessing employee job performance and
providing feedback to those employees about both positive and negative aspects of their
performance. Performance measurements are very important both for the organization
and the individual, for they are the primary data used in determining salary increases,
promotions, and, in the case of workers who perform unsatisfactorily, dismissal.
 Employee development and training is another vital responsibility of HR personnel.
HR is responsible for researching an organization's training needs, and for initiating and
evaluating employee development programs designed to address those needs. These
training programs can range from orientation programs, which are designed to acclimate
new hires to the company, to ambitious education programs intended to familiarize
workers with a new software system.

1.3 HUMAN RESOURCE DEVELOPMENT

Human resource development includes training an individual after he/she is first hired, providing
opportunities to learn new skills, distributing resources that are beneficial for the employee’s
tasks, and any other developmental activities.

7
This set of processes within the HR department is critical to employee on-boarding and retention.
Without proper training, employees cannot succeed. Without learning and development of
personal and professional skills, employees grow stale and stagnant.

Human resource development is the integrated use of training, organization, and career
development efforts to improve individual, group, and organizational effectiveness. HRD
develops the key competencies that enable individuals in organizations to perform current and
future jobs through planned learning activities. Groups within organizations use HRD to initiate
and manage change. Also, HRD ensures a match between individual and organizational needs

Figure 2: HRD functions

1.3.1 Benefits of Human Resource Development

Human resource developments considered as the key to higher productivity, better relations and

greater profitability for any organization. Appropriate HRD provides unlimited benefits. Some of
the most important are:

 HRD (Human Resource Development) makes people more competent. HRD develops new
skills, knowledge and attitudes of the workforce.

8
  With an appropriate HRD program, people become more committed to their jobs. People
are assessed on the basis of their performance by having a acceptable performance
appraisal system.

 An environment of trust and respect can be created with the help of human resource
development.

 Acceptability toward change can be created with the help of HRD. Employees found
themselves better equipped with problem-solving capabilities.

 It improves the all around growth of the employees. HRD also improves team spirit in the
organization.

 It also helps to create an “efficiency culture” in the organization. It leads to greater

organizational effectiveness. Resources are properly utilized and goals are achieved in a
better way.

 It improves employee participation. Workers feel a sense of pride and achievement while
performing their jobs.

 It also helps to collect useful and objective data on employee programs and policies which
further facilitate better human resource planning.

1.4 HUMAN RESOURCE POLICIES

Human resource policies are the formal rules and guidelines that businesses put in place to hire,
train, assess, and reward the members of their workforce. These policies, when organized and
disseminated in an easily used form, can serve to preempt many misunderstandings between
employees and employers about their rights and obligations in the business place. It is tempting,
as a new small business owner, to focus on the concerns of the business at hand, and put off the
task of writing up a human resource policy. All business analysts and employment lawyers will
advise a new business owner to get a policy down on paper, even if it is a simple one drafted
from a boilerplate model. Having policies written is important so that it is clear to all what the
policies are and that they are applied consistently and fairly across the organization. Moreover,
when issues concerning employee rights and company policies come before federal and state

9
courts, it is standard practice to assume that the company's human resource policies, whether
written or verbal, are a part of an employment contract between the employee and the company.
Without clearly written policies, the company is at a disadvantage.

Small businesses and especially business startupscannot afford to fritter away valuable time and
resources on drawn-out policy disputes or potentially expensive lawsuits. Having a human
resource policy in place from the start can help to avoid this situation. The business owner who
takes the time to establish sound, comprehensive human resource policies will be far better
equipped to succeed over the long run than the business owner who deals with each policy
decision as it erupts. The latter ad hoc style is much more likely to produce inconsistent,
uninformed, and legally questionable decisions that may cripple an otherwise prosperous
business. For as many small business consultants state, human resource policies that are
inconsistently applied or based on faulty or incomplete data will almost inevitably result in
declines in worker morale, deterioration in employee loyalty, and increased vulnerability to legal
penalties. To help ensure that personnel management policies are applied fairly, business owners
and consultants alike recommend that small business enterprises produce and maintain a written
record of its HR policies and of instances in which those policies came into play.

1.4.1 Subjects Covered by Company HR Policies

Small business owners should make sure that they address the following basic human resource
issues when putting together their personnel policies:

 Equal Employment Opportunity policies

 Employee classifications

 Workdays, paydays, and pay advances

 Overtime compensation

 Meal periods and break periods

 Payroll deductions

 Vacation policies

10
  Holidays

 Sick days and personal leave (for bereavement, jury duty, voting, etc.)

 Performance evaluations and salary increases

 Performance improvement

 Termination policies

Templates that may be used to create a first human resource policy document are available from
many sources. Two such sources that are reputable and offer information of a full range of
employment issues are the National Human Resource Association and the Society for Human
Resource Managers. Each maintains a Web site with information on the services it provides and
pointers to other reputable service providers.

1.4.2 Advantages of Formal Human Resource Policies

Business owners who have prepared and updated good personnel management policies have
cited several important ways in which they contribute to the success of business enterprises.
Many observers have pointed out that even the best policies will falter if the business owners or
managers who are charged with administering those policies are careless or incompetent in doing
so. But for those businesses that are able to administer their HR policies in an intelligent and
consistent manner, benefits can accrue in several areas:

 Communication with employees: A well written and thoughtfully presented human

resource policy manual can establish the tone that a new business person wishes to
maintain within his or her business. Such a policy also serves to disseminating
information about what employees may expect from the company as well as what the
employer expects from the employees regarding work performance and behavior while
on the job.
 Communication with managers and supervisors: Formal policies can be helpful to
managers and other supervisory personnel faced with hiring, promotion, and reward
decisions concerning people who work under them.
 Time Savings: Prudent and comprehensive human resource management policies can
save companies significant amounts of management time that can then be spent on other
11
 business activities, such as new product development, competitive analysis, marketing
campaigns, etc.
 Curbing litigation: Members of the legal and business communities agree that
organizations can do a lot to cut off legal threats from disgruntled current or ex-
employees simply by creating—and applying—a fair and comprehensive set of personnel
policies.

1.4.3 Making changes To Existing HR Policies

Companies typically have to make revisions to established HR policies on a regular basis, as the
company grows and as the regulatory and business environments in which it operates evolve.
When confronted with the challenge of updating HR policies, however, it is important for small
businesses to proceed cautiously. Small business owners need to recognize that changes in HR
policy have the potential to impact, in one way or another, every person in the
company, including the owner. Proposed changes should be examined carefully and in
consultation with others in the organization who may recognize potential pitfalls that other
managers, or the business owner herself, may have failed to detect. Once a change in policy is
made, it should be disseminated widely and effectively so that everyone within the business is
working from the same human resource policy at all times.

1.5Hospitality Industry
The hospitality industry is broad category of fields within the service industry that includes
lodging, event planning, theme parks, transportation, cruise line, travelling and additional fields
within the tourism industry. The hospitality industry is a multibillion-dollar industry that depends
on the availability of leisure time and disposable income. A hospitality unit such as a restaurant,
hotel, or an amusement park consists of multiple groups such as facility maintenance and direct
operation (serves, housekeepers, porters, kitchen workers, bartenders, management, marketing,
and human resources etc.)

The hospitality industry is much broader than most other industries. The majority of business
niches are composed of only a handful of different businesses, but this industry applies to nearly
any company that is focused on customer satisfaction and meeting leisurely needs rather than

12
basic ones. While this industry is very broad, there are some defining aspects that are important
to understand.

One of the most defining aspects of this industry is that it focuses on customer satisfaction.
While this is true of nearly every business, this industry relies entirely on customers’ being
happy. This is because these businesses are based on providing luxury services. Very few
hospitality businesses provide a basic service that people need, like food or clothing.

Another defining aspect of this industry is its reliance on disposable income and leisure time. For
this reason, the majority of these businesses are for tourists or rich patrons. If disposable income
decreases due to a slump or recession, then these are often the first businesses to suffer because
customers won’t have the extra money to enjoy their services.

1.5.1 Different Businesses

Most people think that hotels alone belong to the hospitality industry, but hotels are only one
sector of this industry. Many forms of transportation that cater to tourists are also part of this
business world. For example, this niche includes airlines, cruise ships and even fancier trains.
Restaurants, general tourism and event planning also belong to this niche.

Some of these businesses partially belong to the hospitality industry. For example, a fast food
restaurant would be considered convenient. A restaurant that provides fancy food with amazing
service would be providing a hospitality service.

1.5.2 Level of Service

Regardless of the business, this industry relies heavily on providing an excellent level of service.
Customers are visiting the business to get away from their troubles. A bad experience might keep
them from returning ever again. Brand loyalty is very important to these customers, so the
associated companies do their best to provide the best service.

Companies hire employees based on skill and behavior. Most of these employees are great with
customers, and they can flawlessly give the customer what he or she needs.

1.5.3 Themes
Another defining aspect of the hospitality industry is its theme. This doesn’t apply to every
business in this industry, but many of them use a certain theme to attract customers. For
13
example, a fancy restaurant might have a Mediterranean theme to attract customers who like that
type of food and atmosphere.

Not only does this set the business apart from competitors, but it also allows customers to judge
the business on another level. Hospitality businesses that provide an authentic theme are often
appreciated more than general hospitality businesses. If the above restaurant cooks authentic
Mediterranean cuisine and uses the proper decorating elements, then this will make customers
happy and more willing to visit the business.

A hospitality business doesn’t need a theme, but the vast majority of them use one because
customers love themed businesses.

While this is a very broad industry that can incorporate many different businesses, there are some
defining elements that set it apart from similar businesses. Not only do these companies focus on
service and luxury, but they also depend on disposable income and giving customers what they
want. The broad-reaching hospitality industry ensures that every customer is happy because
brand loyalty is essential.

14
 EMPLOYEE HR POLICIES IN HOSPITALITY INDUSTRIES

CHAPTER 2
COMPANY PROFILE

NAME OF THE COMPANY

Figure 3: LOGO OF COMPANY

2.1 INTRODUCTION
Name of the Company is India’s fastest growing branded network of budgeted hotels founded
by entrepreneur _________ on _______. Within a short span of time, Name of the Company
currently operating in more than 100 Indian cities including Delhi, Gurgaon, Mumbai,
Bangalore, Hyderabad, Goa, Chennai, Kolkata are few to name. Similarly, Name of the
Company has been trying to be present in major Metros, Regional Hubs, Leisure destinations
and Pilgrimage towns.

According to research carried out by CB insight, a US based business analytics firm, for The
New York Times Name of the Company is among the companies that may be the next start-up
unicorn. As it provides standardized rooms at budget hotels with features such as an air
condition, complimentary breakfast and free WIFI with 24 hours customer service support
number of guest using _______ App for booking hotels has been increasing exponentially. Since
the services are fully IT enabled guest can also order beverages and request room service through
the ________ App. Hotel owner who are partner with Name of the Company are connected via
world’s first tablet based property management App and became a part of Name of the
Company.

Typeof business Private

15
 Founded

Headquarters

Area served

Founder(s)

Industry Hospitality

website

Current status Online

2.2 History
Oravel Stays, a website designed to enable listing and booking of budget accommodation. After
three months of research and staying in over 100 bed and breakfasts,guest houses, and
small hotels, he pivoted Oravel to OYO in 2013. OYO partners with hotels to give similar
experiences across cities.

In late 2017, OYO launched OYO Home, an Airbnb-like marketplace for short-term managed
rentals. OYO Home has presence in more than 10 leisure destinations of India including Goa,
Shimla, Pondicherry, Udaipur, Kerala etc. In April 2018, OYO launched its first international
OYO Home in Dubai.

16
2.3 Organizational Structure

2.3.1 Current Organization’s Member :

 Chief Executive Officer (CEO):
 Chief Operating Officer (COO):
 Chief Technical Officer(CTO):
 Chief Financial Officer (CFO):
 Chief Procurement Officer(CPO):
 Chief Growth Officer (CGO):
 Chief Strategy Officer (CSO):

2.3.2 Regional Heads:

 North Head:
 South Head:
 East Head:
 West Head:

Figure 4: ORGANISATION STRUCTURE

17
2.4 Vision
The company’s vision is to become the most preferred and trusted hotel brand in the world. OYO
revolutionized the fragmented and legacy-driven budget hospitality space in India by enabling
standardization of services, amenities and in-room experience. Through use of its proprietary
apps for inventory-management, room-service, revenue-management and customer-relationship
management, OYO has delivered predictable, affordable and available budget-room
accommodation to millions of travellers in India. A booking with OYO comes with the promise
of hassle-free stays. The popular OYO app (> 10 MILLION downloads) enables guests to search
and book rooms, request room-service (food and beverages), book a cab and also search nearby
restaurants. OYO also offers a unique concierge-like assistance service through OYO Captains -
the company’s local representatives at hotels who ensure on-ground support for hassle-free

18
travelling and on-stay experience. Guest can avail their services by booking via call centre, app
or website.

Hotel-owners partnering with OYO see a significant increase in occupancy levels, get access to
the world’s first tablet-based property management apps and become part of a brand recognized
and loved by travelers nationwide.

2.5Values
2.5.1 Standardize

Name of the Company promises to provide same amenities and the same awesome experience
across all its rooms.

2.5.2 Affordable

Name of the Company offers rooms at prices that no other player in the budget segment offers
today.

2.5.3 Technology Driven

Name of the Company use technology to link all its function and provide the customer a
seamless awesome experience.

2.6 Growth

OYO Rooms started with one city and one hotel (OYO Rooms Huda City Centre) in Gurgaon in
May 2013 and has seen a tremendous growth. With whopping budget hotels under its branded
network across the India, OYO Rooms growth has been nothing short of phenomenal, and the
rapid expansion has meant that the funded start-up now owns India’s largest branded network of
hotels. The company as of August 2015 has more than 2000 hotels with more than 20000 room
capacity spread over 100 cities of India. Moreover, the company has planned to add more than
50 cities by the end of 2015. Now, OYO Rooms has been named India's largest budget hotel
chain. Continuing with its rapid expansion drive, OYO Rooms today crossed an important
milestone as it became India’s largest budget hotel chain. Backed by the funding from various
sources and strong consumer partners, OYO Rooms also has set itself a revised target to expand

19
its network. Ritesh Agarwal, Founder and CEO of OYO Rooms are quite hopeful that India’s
budget hospitality market is ripe for disruption and as the market leader; OYO is best poised to
lead this change. Strong customers’ feedback and loyalty encourages the company to redouble its
growth efforts to bring the OYO experience to as many Indian travelers in as many different
cities as possible and at the earliest. As a leader, OYO Rooms has created a new paradigm in the
hospitality sector through an asset-light managed marketplace model

2.7 OYO App

OYO Rooms had also launched its mobile app, which promised a hotel room booking in less
than 10 seconds, has now been at the heart of what the company does, it has been able to provide
its customers with a seamless experience from booking to check-out. The OYO Rooms mobile
app is also the world’s first personal room service app that allows guests staying at an OYO to
order room service directly from their smart phones. The app has already crossed more than
100,000 downloads within a month of its launch. Available on Android and IOS platforms, more
than 15,000 bookings have been made through the OYO Rooms mobile app within a week.
According company statement, OYO Rooms started its mobile app segment and is ahead of other
players who have recently entered this space. OYO is the pioneers in bringing the comfort and
experience of an expensive hotel at a really affordable price and use technology to enhance
customer experience. That is why most of the branded hotels associated with OYO witness more
than 80 per cent occupancy, which indicates a huge success of business and customers
satisfaction. It is what that made the company confidence to continue to grow at such a rapid
pace. OYO Rooms tried to redefine the meaning of a budget stay and provide our guests a truly
seamless experience with the app which allows customers to book an OYO in just a few clicks.
The app has been a real hit among users, with over 3 lakh downloads in just three months. The
company gets almost half of its bookings through the app as of today, which just goes on to show
how tech-enabled utilities are truly the way forward.

2.8 Future Prospect

Tech-enabled, branded hospitality network OYO Rooms, which went live with its website
oyorooms.com in April 2013, is set to become India’s largest branded hospitality network of
budget hotels in the near future. Of the 60,000 branded hotel rooms in the country, the largest

20
inventory is held by the The Taj Group with 9,000 –10,000 rooms. Pointing out that there are
350 million budget travelers in the country who are looking for high quality, standardized rooms
are 1.5 million unbranded budget rooms in the country. However, very few of them offer the
budget traveler a standardized, predictable experience with assured facilities, services and
amenities. OYO Roomsare equipped with comfortable beds, air-conditioning, TV, free unlimited
Wi-Fi, clean attached washrooms and complimentary breakfast service. Therefore, there are high
potentials of OYO to be the largest hotel chain of the country. Although currently OYO’s largest
market is Delhi NCR region in the next three to months, Bengaluru will take the lead and hold
that position for the next three years, reads the company’s website. OYO has a plan to expand its
Bengaluru offering from 300 rooms in 30 hotels in MG Road, Brigade Road, Koramangala,
Whitefield and Indira nagar to 2,000 rooms in 150 hotels over the next 12 months. The city
attracts a diverse customer base; repeat rate of customers is very high. While hotel stays are
always planned, the capability of these customers of making an impulse decision to stay in OYO
hotels is also high.

21