Chapter 1 Introduction to study 1.1 About Industry According to the British law, a hotel is a place where a benefited 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 B.C 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. Today, hotels not only cater to the basic needs of the guest like food and shelter but also provides personalized services like, 24-hour fitness center Complimentary Wi-Fi high-speed Internet access, Round Table Room and Bar etc. Today hotels are home away from home. Hospitality is the way of treating people in the way you want yourself to be treated. Hotels are called "home away from home" because it's the only place where we get food & accommodation, provided all luxuries and comfort. In ancient times, when wheel was not discovered since then people use to travel by walking, the cover long distance at that time since then the concept of hospitality was there but was no interest of money or any economic profit travelers use to stay in homes of villagers then slowly inns were accruable but in very low rent. Hotel industry largely depends upon the foreign tourist arrivals further classified into business travelers (around 65% of the total foreign tourists) and leisure travelers. Global travel increased by 13% in 2012 compared with 2011, crossing tourism forecasts for the fourth year in succession. Among the various regions, the Middle East registered the The Atria hotel
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highest growth in arrival of international tourists with 46 million tourists compared with 41 million in 2012, a growth of 12.2%. 1.2 Hotel industry in India Hotel Industry in India has witnessed tremendous boom in recent years. Hotel Industry is inextricably linked to the tourism industry and the growth in the Indian tourism industry has fuelled the growth of Indian hotel industry. The thriving economy and increased business opportunities in India have acted as a boon for Indian hotel industry. The arrival of low cost airlines and the associated price wars have given domestic tourists a host of options. The 'Incredible India' destination campaign and the 'Atithi Devo Bhavah' (ADB) campaign have also helped in the growth of domestic and international tourism and consequently the hotel industry. In recent years government has taken several steps to boost travel & tourism which have benefited hotel industry in India. These include the abolishment of the inland air travel tax of 15%; reduction in excise duty on aviation turbine fuel to 8%; and removal of a number of restrictions on outbound chartered flights, including those relating to frequency and size of aircraft. The government's recent decision to treat convention centers as part of core infrastructure, allowing the government to provide critical funding for the large capital investment that may be required has also fuelled the demand for hotel room. The opening up of the aviation industry in India has exciting opportunities for hotel industry as it relies on airlines to transport 80% of international arrivals. The government's decision to substantially upgrade 28 regional airports in smaller towns and privatization & expansion of Delhi and Mumbai airport will improve the business prospects of hotel industry in India. Substantial investments in tourism infrastructure are essential for Indian hotel industry to achieve its potential. The upgrading of national highways connecting various parts of India has opened new avenues for the development The Atria hotel
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of budget hotels in India. Taking advantage of this opportunity Tata group and another hotel chain called 'Homotel' have entered this business segment. 1.3 Trends in Hospitality Sector Trends that will shape the future of hospitality sector are: 1.LowCostCarriers 2.BudgetHotels 3.ServiceApartments 4.Technology 5.LoyaltyTravel 1. Low cost carriers: Travelers in general are more price sensitive to airfare than they are to hotel room rates. Often a low airfare will stimulate demand for travel even if hotel prices are increasing. LCCs are a good option for business travelers, as they have advantages like low costs, more options and connectivity. 2. Budget hotels: More than 50 per cent of occupancy of a majority of hotels comes from the business travel segment. The average room rate (ARR) realized from business travelers is normally higher than from leisure travelers. Heightened demand and the healthy occupancy rates have resulted in an increase in the number of budget hotels. Some of the new players entering into this category of hotels include homotel, kamfotel, courtyard by Marriott, country inns & suites, ibis & Fairfield inn. 3. Service apartments: The concept of service apartments, though a recent phenomenon in India, is an established global concept. Villas in Spain, flats in the UK and apartment complexes in the US have all created a viable market for those who want more than just a room in a The Atria hotel
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hotel. Service apartments are the latest trend in accommodation, offering the comfort and convenience of a home without the hassles of having to maintain or look after it. Ideally suited for medium-to-long staying guests, service apartments are a natural choice for corporate employees or expatriates relocating to a particular city, non-resident Indians visiting the country for long spells and foreigners visiting city for long duration. 4. Technology: Travel and technology have become inseparable. Technology is making its own advances with high-tech video conferencing facilities, web cameras and virtual reality mode of conferencing. On-line bookings, e-ticketing, Wi-Fi Internet connectivity, easy access to information, etc. are just a few areas where technology has compeletely changed the way we travel. 5. Loyalty travel: `Today, airline-credit card company tie-ups have brought a whole range of benefits to the travelers. These include insurance cover, upgrades, free tickets, access to executive lounges, and a host of other goodies. The top players in hospitality sector include the following: ITC Hotels Indian Hotels Company Ltd. (The Taj Hotels Resorts & Palaces) Oberoi Hotels (East India Hotels) Hotel Leela Venture Asian Hotels Ltd. Hotel corporation of India ITD Hotels The Atria hotel
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1.4 Classifications of Hotels 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, and type of services provided, facilities given and the clientele they cater to can help categorizing hotels. Hotels are classified based on following factors: Market segment Property type Size Level of services Owner ship and application Plans Type of patronage Length of guest stay Location etc.
1) According to market segment Economy Hotel Mid Market Hotels All Suite Hotels First Class Hotels
2) According to size: Small Hotels [150 Rooms] Medium Hotels [Up To 299rooms] Large Hotels [Up To 600rooms]
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1.5 Structure of the industry Hotels in India are broadly classified into 7 categories by the ministry of tourism, Government of India, based on the general features and facilities offered. They include: Five stat deluxe Five star Four star Three star Two star One star Heritage hotels
1.5 Players in the market ITC Windsor The ITC Windsor, Bangalore merges an old world ambiance with international service to create a hotel experience that goes beyond... Style: Classic Luxury The Lalit Ashok It nestled in an oasis of 10 acres of sprawling landscape and manicured lawns, The Lalit Ashok is one of the finest five star hotels... Style: Classic Luxury. The Atria hotel
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Park Plaza Bangalore Hotel Park Plaza is proud to deliver its renowned international expertise to India's IT hub. Style: Classic Luxury
The Oberoi Bangalore Located at MG Road, in the heart of the business and shopping districts of Bangalore, the luxury hotel has an abundance of greenery. Style: Classic Luxury
ITC Royal Gardenia It is the first green luxury hotel in the city that believes in delivering the best in 'Responsible Luxury' and giving back more. Style: Boutique/Design
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HOTEL CHAINS IN INDIA There are many hotel chains in India out of which Indians hotels company ltd. (IHCL) operating under the Taj brand, is the largest hotel chain in the country. EIH operating under the Oberoi brand is the second largest hotel chain followed by ITC hotels (ITCH), Asian hotels (AHL), Bharat hotels (BHL), Oriental hotels as well as hotel Leela venture (HLV). While the 7star and 5 star hotels are the domains of renowned hotel companies. An unorganized market exists for hotels operating below these ratings. Hotel companies such as EIH and ITCH as well as International hotel chains are aggressively entering into the mid- budget hotel segment. Average room rate (ARR) AND Average occupancy rate (AOR) are the most critical factors that determine the profitability. Since most of the marginal revenue gets added to the bottom line, ARR in turn depends upon factors such as location, brand image, star rating and quality of facilities and services offered and also the seasonal factors.
DEMAND FOR HOTELS IN METRO CITIES Demand for hotels in cities like Mumbai and Delhi are the highest. In fact currently, out of the total 19000 five star and five star deluxe rooms in the country, 50 per cent are accounted for by these two cities. These cities along with Bangalore and Chennai serve as gateways to important tourist destinations in India. Presently the five star and four star hotels room capacity in the four metro cities is close to 13000 rooms. Mumbai and Delhi account for the bulk of the total room availability. In the long-term, the hotel industry in India has latent potential for growth. This is because India is an ideal destination for tourist from various countries as it is the only country with the most diverse topography. At present India accommodates more than 5 million annual foreign tourists and 562 million domestic tourism visits. The hotel industry is one of modern Indias big success stories. It has created a new model for development and growth; a model that is uniquely Indian. One of the worlds best hotels is Vanyavilas, a small luxury resort run by the Oberoi group near Ranthambhore in Rajasthistan.Vanyavilas was accorded this distinction by Travel & Leisure magazine which produces a list of the hundred best hotels in the world every year. As big a deal as the honour is, it is not the first time that an Indian hotel has topped the list. In 2007, Udaivilas, another Oberoi property (in Udaipur) was rated as the best hotel in the world. The Atria hotel
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1.6 Industry volume: Hotels in India' have supply of 110,000 rooms. According to the tourism ministry, 4.4 million tourists visited India last year and at current trend, demand will soar to 10 million in 2010 - to accommodate 350 million domestic travelers. 'Hotels in India' has a shortage of 150,000 rooms fuelling hotel room rates across India. With tremendous pull of opportunity, India is a destination for hotel chains looking for growth. The World Travel and Tourism Council, India, data says, India ranks 18th in business travel and will be among the top 5 in this decade. Sources estimate, demand is going to exceed supply by at least 100% over the next 2 years. Five-star hotels in metro cities allot same room, more than once a day to different guests, receiving almost 24-hour rates from both guests against 6-8 hours usage. With demand-supply disparity, 'Hotel India' room rates are most likely to rise 25% annually and occupancy to rise by 80%, over the next two years. 'Hotel Industry in India' is eroding its competitiveness as a cost effective destination. However, the rating on the 'Indian Hotels' is bullish.
Current scenario: The hospitality industry is becoming another high-profile casualty of the slowing economy, with nearly 75 big hotels putting up the 'for sale' boards and several others raising the red flag amid falling check-ins and wilting room rates. Most hotels in the country are running half empty, as the GDP growth slips to 5% levels this fiscal year, says the Federation of Hotel and Restaurant Associations of India (FHRAI). In a preliminary report, The Atria Hoteliers' body has found that average hotel occupancy in 2012-13 dropped to the lowest in a decade at 58.3% and average room rates fell to Rs 6,214, the lowest in six year Hotel occupancies had reached a high of 71.5% in 2010-11 growing from 64.8% in 2006- 07. Average room rates peaked at Rs 7,989 in 2010-11. It was Rs 3,569 in 2006-07.
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CHAPTER2 Company profile
The Atria Hotel #5089, 1, Palace Road, Bangalore-5600001
The Atria hotel
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2.1 History The Atria group of companies was founded 40 years ago by A.S.K. Brothers, Sri A.S. KuppaRaju, Sri A.S. Narayan Raju and Sri A.S ChinnaswamyRaju. The group has grown into a large diversified operation through sharp business acumen displayed by its founders over the years. It was started as a construction company, but its activates now range from construction, building material manufacturers, hotel services, information technology, educational institutes, financial services, power projects and real estate development. The Group considers hotels a major thrust area and intends to focus its effort in the line of business. The Atria group of companies started its activities in hotel business with the objective of addressing the needs of the business class. The Atria Hotel, Bangalore The Atria hotel located in Bangalore, Karnataka offers flawless hospitality, contemporary facilities and reasonable rates, and these factors combine to form an unbeatable bargain in this hotel for those who want to explore the silicon valley of India. It is located at #5089, 1, Palace Road, Bangalore-5600001 which is in the heart of Bangalore city .It is easily accessible to M.G. Road the corporate hub of Bangalore which is just 5kms away. It is very convenient to locate the place from the airport and the railway station as it is in the centre of the city. Hence The Atria Hotel has a great competitive advantage with respect to location in the city. The Atria hotel was commissioned in 1993, initially with 18 rooms, a coffee shop and also limited room service. Today the Atria Hotel is most preferred and a business class hotel with star facilities. Hotel Atria offers delightful stay options and caters to all the needs of the customers with elegant style. The Atria hotel
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The Atria Hotel has a sprawling split-level atrium lobby and there are four floors above the lobby level and a minus 2 level with 3 guests elevators and 2 service elevators. Today hotel is running with 168 rooms including 8 Suits (each floor has 2 suites), 7 banquet walls, an exclusive Indian restaurant (Tijori), Pan Asian restaurant (silk winds), coffee shop (1498 AD), Bar (Aqua bar) and a business centre with Board rooms and cyber zone with internet facilities. They have a 24 hour room service and 24 hour check in/checkout service. They have 7 banquet halls, with a capacity of 12 to 1000 pax. The business centre is operational from 8 a.m. to 11 a.m. The business centre is newly opened with well decorated wooden interiors with 2 Board rooms having a capacity of 5-12 pax for conference. The cyber zone is located in the business centre where 2 P.Cs are dedicated for internet browsing for the guests.
2.2 Vision and Mission, Vision To be the best business class hotel in the country, by giving personalized attention at value for money, to the guest. Mission The professional and dedicated team at the hotel strives to delight every guest every time.
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2.3 Milestones 2012: Hotel has upgraded it life style rooms. 2011: Hotel has separated HR department and purchase department and given identification of HR department and purchase department. 2010: Hotel has upgraded its technology in production department. 2008: They constructed new bakery, butchery. 2005: cold store room has constructed. 2004: Hotel has introduced its information system.
2.4 Operation area and business: The Atria group consists of the three different businesses they are: The Atria Hostility The Atria Power The Atria Educational Institution
The Atria hotel
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2.5 Product and Service profile: Rooms:
The Atria hotel facilitates rooms that are mostly of inviting surprises. The 168 rooms that are there may be categorized into King Leisure rooms, superior suites and standard suites. All the rooms of Atria hotel offer facilities such as: Hot and cold water shower Bath tubs Guest amenities such as dental kit, soaps, comb and shaving kit, sewing kit, businessman kit, coffee maker, hair drier and shaving razor Television with cable connection Direct phone facilities STD/ISD Safe deposit lockers Acceptance of major credit cards Internet cord The Atria hotel
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A/C central Mini bar 24 hours check in/check out There is a travel desk that is situated at the lobby for all travel related assistance and for car time. Growth of the organization The hotel has been growing at a fast pace, initially when the hotel was opened they had only 18 rooms but today the hotels business has grown to a large extent, Atria Hotel Bangalore offers 85 newly renovated rooms, named as lifestyle rooms, which have contemporary design and interiors to meet present day business needs and life style. A sprawling split-level atrium lobby surrounded by 168 centrally air-conditioned rooms, suites and theme suites with two scenic elevators to take you up to your rooms. The hotel has improved a great deal on the quality of services that they offer and is now in par with various international 5 star hotels.
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Restaurants: The Coffee Shop (1498 AD)
This is located below the lobby level; the coffee shop has been christened as a tribute to the famous Portuguese navigator Vasco Di Gama. The coffee shop has multi cuisine delights, sumptuous buffets and interesting lunch sessions pampers the customers at this posh coffee shop. Evening snacks and dinner is on a-la=carte, serving traditional Andhra/Coastal/Indian and Continental food.
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Tijouri:
This is a truly Indian restaurant, which has authentic mouth-watering flavors of Hindustani cuisine to the rhythmic accompaniment of melodious music in a soft and cozy ambience. The restaurant has an ethnic Rajastani ambience and serves North frontier and Mughlai food. It is a 65 cover restaurant which is located in minus one level next to the guest capsule lift.
Silk Wind This is a pan Asian Restaurant offers an exotic repertoire Szechwan and Cantonese delicious dishes with a distinctive oriental ambience. It has a seating capacity of 62 covers. It is located at the lobby level next to the guest capsule lift.
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Aqua Bar
A well shocked bar with an extensive selection of premium labels. It is replete with plush interiors and cozy ambience. The bar has a capacity 0f 26 covers and is located in the main lobby.
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Banquet and Conference Facilities:
All the banquet halls are located in minus one level except the committee hall which is located next to the Silk Winds restaurant at the lobby level. There are 6 banquet halls which can seat up to 1000 people. It is equipped with the latest conferencing aids and sumptuously appointed; the banquet halls provide the perfect setting for any occasion.
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B) Service Profile: 24 hour check-in/check-out Free safe deposit lockers Travel desk Laundry/Dry cleaning service Florist Doctor on call Business centre Foreign exchange STD/ISD Direct dialing Internet, fax and secretarial service Wheel chair Golf arrangements on close proximity Daily choice of complimentary newspaper Provision of seasonal fruits on request
2.6 Competitor: The Lalit Ashok ITC Windsor Park Plaza Bangalore Hotel The Oberoi Bangalore
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2.7 Policies of the organization: Employees will get their salaries on 5 th of every month. Employee will get 12 Causal leave after one year employee will get paid leave. If employee not comes for organization for more than 15 days without intimation than the employee will be terminated according to labor act. Employee cant disclose any of the official matter of the organization to outsiders.
2.8 Number of employees in different levels or catagories Total number of employees in the organization is 313 Employees are divided into 2 categories they are
Operation and Administration Department OPERATION NO of EMPLOYEES ADMINISTRATION NO OF EMPLOYEES F&B(S) 67 HR 4 F&B(P) 58 SECURITY 12 MAINTANANCE 54 FINANCE 20 HOUSE KEEPING 88
FRONT OFFICE 10
2.9 Performance of the organization: The Atria Hotel turnover was 1 crore Revenue is generated from F&B and Front office In the month of July revenue from front office was 60 lack. The Atria hotel
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2.10 Organizational Chart
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2.11 Management or Board of Directors Sri ChinnaswamyRaju Managing Director Sri C.S.SunderRaju Director Sri K Nagaraju Director Sri P.K Nair General manager Sri D.N Reddy Deputy general manager Sri vinay Sharma Front office manager Sri M.T.Babu HR Manager Sri suryanarryana Executive housekeeping Sri Ajit Motra Training manager Sri Mani varma F&B Manager
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CHAPTER-3 Study of Functional area/departmental study
3.1 Human Resource Department Personal department or human resources as it is better known deals with all employee and employment related issues like selection, recruitment and training of staff and development and proper utilization of employees. Human Resource Management is that part of management that is concerned with people at work and with their relationships in an effective organization; it is concerned with the functions of planning, organizing directing and controlling of the procurement, development compensation, integration, maintenance and separation of Human Resources to the end such that individual, organizational and societal objectives are achieved. Human Resource Management is a function of all management decisions and practices that directly affect or influence the people, or human resources who work for the organization. It is also a function of hiring, motivating and maintaining people in an organization. It focuses on people and is concerned with peoples dimensions in an organization.
Objectives of HR Department: The HR department has five main objectives. They are: To give meaning and purpose to the job of the employee. To maintain a high level of motivation and morale. To ensure that the employees are properly qualified. To train and cross train all employees on a timely basis. To minimize absenteeism and keep track of attendance of all the employees. The Atria hotel
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Atria hotel HR Function: Recruitment Employee on boarding Compensation and Benefits definition Info store Posting (manages employee organization unit changes and maintains history) Performance Management Leave Management Training Management Career view Separation
Employee information Atria hotel HR tracks and provides all employee related information - that includes Personal details Organization unit related information Contact details Family and Nomination details Career details History of salary changes undergone , Compensation details The Atria hotel
Leave management Atria hotel HR allows you to create any number of leave types. Group employees on any organization units for the purpose leave policy definition. Employees can make a request for approval of manager. Managers can approve, reject a leave request. Tracks employee leave balances. Allows managers to view leave calendar of the team Track leave balances Definition of holidays Definition of Week off Leave encashment Leave request , approval, Compensatory off
Training department: The training department is also a part of the personal department. The personal department has a separate training manager for the training department or in very small properties the personal manager himself is appointed as the training manager.
The training department acts as the backbone for all the operation in The Atria Hotel. The main emphasis of the training department is to train new employees at the time of training, brush up the knowledge and skills of the existing staff, to help increase their efficiency.
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The training department uses various techniques to train and motivate the staff at The Atria Hotel. The training classes conducted on weekly basis for people of different departments.
Training objectives: Competency development of employees at all levels based on Training Need & Identification. Training Effectiveness to be sustained to 90 percent. Emphasis on application oriented programs to improve functional efficiency. Impart more behavioral programs for attitudinal change/team working
Training on Functional Needs (Discipline wise requirement) Behavioral Needs (Conduct/Perform. require.) Training hours Staff 15 days Workmen 15 Hours
Internship training This sort of training is important to employees who are transferred from other units, freshers or to the employee promoted in new jobs. This is advanced vocational training system.
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External training Every year before March annual training calendar is prepared after consulting all the concerned departmental heads on various need based training program on different aspects like technical, marketing and of HRD administration to develop skills and latest technical know-how and same is approved by the management.
Training execution 65-70% programs through Internal Faculty. 15-20% programs through External Faculty. 05-10% programs through External programs.
Training evaluation Feedback by the participants Training Effectiveness Review System (TERS)
Performance management Employee is appraised on a Five Point Rating Scale, they are: a. Non Performer b. Performer c. Consistent Contributor d. High Achiever e. Exceptional Achiever The Atria hotel
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The company organizes training program on need basis regularly for freshers and for existing employees. The type of training is as under: On the job training for all categories of employees. Learning new techniques through internal training or by external agencies. Refreshers training and training for promotion in the organization. Remedial training and general training in safety, discipline, culture, rules and regulations of the company, statutory matter and procedure.
HIERARCHY OF HUMAN RESOURCE DEPARTMENT:
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3.2 Front office department:
The mere mention of the word hotel conjures up exciting images, a busy lobby filled with international dignitaries, celebrities, and large exceptions, business person, family vacationers, etc. The excitement that you put in a hotel lobby is something one will remember forever in his/her career.
This is the beginning of understanding the concept of providing hospitality to guests. As they begin to grasp the principles of a well-operated hotel, they discover the important role the Front Office plays in keeping this excitement intact.
The Front Office is the nerve centre of a hotel property. Selling of rooms, communication and accounting are the most important function of the front desk employees. Executive communication with guests employees of other department within The Atria Hotel paramount is projecting a hospitable in projecting a hospitable image. Answering guest inquiries about hotel services and other guests, marketing and sales department request for information on run availability and housekeeping department inquiries concerning guest reservation are some of the routine tasks performed almost constantly by a hotel font office in its role as a communication hub. The very fact that role of front office manager contributes to more than 50% of the revenue makes the front office of a hotel a position of great importance. The profit percentage from the sale of rooms is very high.
In addition to this it plays a role of image building for The Atria Hotel, as it is the first and last paint of contact of the guest. If one talks notice of each component of the role of the front office, one could have a better perception of the department. Front office is the nerve centre of The Atria Hotel. The guests get a first impression about the efficiency of The Atria Hotel through the front office. The front office desk is usually the focal point of activity for the front office and is prominently located in The Atria Hotels lobby. The front office staffs have more contact with guest than any other hotel The Atria hotel
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staff. A hotel derives it major income from the sale of rooms to guests who are seeking accommodation in a specific location. Guest comes to the front desk register and receives room assign to them, to inquire about available services, facilities and information about other cities, or surrounding areas. The front office often serves as The Atria Hotel control centre for guest requests concerning housekeeping. Also it becomes the base of operations during emergency such as fire or injury to guests.
The selling of room is done through a systematic method of reservation, registration and assigning of rooms. In general the functions of the front office include: Selling and assigning of rooms to guests. Providing information about The Atria Hotel and surroundings. Planning accurate room status information.
Function of the front office department at the Hotel, Bangalore include 1. To sell guest room. Accept and process reservations. Handle walk-in. Perform registration. Assigning of room
2. Provide information on hotel service Concerning internal hotel operations About external events and locations.
3. Coordinate guest service Act as a liaison between front and back office area. Handle guest problem Handling guests calls, mails. The Atria hotel
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4. Chart room status Coordinate room status with housekeeping Occupied Vacant. Departure.
5. Maintain guest account Construction of guest folios. Pasting charges onto the folio and updating the folio. Documentation of guest transaction.
6. Settlement of guest account Settlement of guest folio. Perform check out procedure
7. Construct guest history Record the guest personal data for future reference to marketing.
The following sections of the front office carry out the above-mentioned operations: Reservation Reception Information Bell desk Cash Telephones Hospitality desk (Guest Relations)
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Hierarchy of front office department
Front office operations: Like any other hotel the front office department of The hotel plays a key role in revenue generation as it contributes to more than 57% of The Atria Hotel revenue generated, only through the sale of rooms.
The smooth and efficient working of the front office department is only achieved through coordination between the different sections of the front office department. The main function of the front office department is to support and facilitate guest transactions and services. The Atria hotel
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3.3 Housekeeping department
In The atria, the housekeeping department is one of the key departments and employs a large no. of people. The housekeeping department has the great responsibility of taking and upkeep of the various departments and different areas of the property and covers a wide area. It coordinates with other departments to ensure the smoother functioning of the establishment. Though it is not a direct source of revenue, its contribution to the operation of The Atria Hotel is critical and cannot be ignored. It is the housekeeping department, which makes the stay of a guest in The Atria Hotel comfortable by creating a warm and homely atmosphere. It caters to the guests requirements and provides the necessities in the right shape and order. After the front office, this is the most important area which creates a long and lasting impression upon the guest and can influence the guest to patronize the particulars hotel time and again. An incomplete housekeeping department of any hotel can detract guest & loose clientele & consequently the revenue. So, the housekeeping department in a hotel is responsible for the cleanliness, maintenance and aesthetic upkeep of The Atria Hotel. The role of housekeeping is to keep clean, comfortable and safe house.
Areas covered under House Keeping Department Housekeeping Control Desk. Guest Room. Public Area. Linen Supply / Room. Laundry. Uniform Issuing Room. Florist. Lost and Found. Stores. The Atria hotel
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Hierarchy of House Keeping Department
Job description of executive house keeper in The Atria Supervises and is responsible for the cleanliness order and appearance of The Atria Hotel rooms and public areas. Prepare reports when required. Participate in all department head meetings. Train all employees to perform the standard procedures as applicable to their position. The Atria hotel
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Work closely with the general managers on day to day housekeeping requirements. Prepare the annual housekeeping budget and submit it to the general manager.
Importance of House Keeping: The housekeeping department has the responsibility for the only and daily and periodic cleaning of the guest rooms and public areas. Consequently, the department has in case then and furnishing carpets and furniture beds and bedding and sometimes laundry work for the guests and other department.
In all its work the aims of housekeeping department is to maintain as standard which are constant with good housekeeping practice and which are reflected through satisfied guest.
Among other aspects of hotel life, comfortable guest room and efficient provision of service are assessed by guest who can do influence potential customers. The reputation of the residential establishment also depends upon the efficiency and loyalty of staff.
3.4 Sales and Marketing Department A large number of radical strategic activities covered in marketing that tells the clientele about the services and facilities offered to the guest so that the clientele knows about the market mix. This is a key department in any hotel because determination of the sale is important for any hotel. The activities undertaken include determination of rooms and f&b sale, miscellaneous sales, sales of The Atria Hotel is a well guarded company secret.
Marketing includes: Range of sales activities. Advertising in all media. Public relation. Development of communication services and reservation. The Atria hotel
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Sales techniques: Selling of hotel services is done through marketing groups or directly with public through travel agencies. The process of selling is done with certain policies in mind. Planning is important aspect that includes group and convention sales, travel agents, and banquets sales. Detailed research is carried out to ascertain sources of business, other job include administering and managing the departments for the proper delivery of service sold, communicating with sources of business.
Function of the Sales Department in The Atria: Supervision of this area by Corporate Director of Sales & Marketing Guide development and implementation of Marketing Plan Coordinate advertising and marketing Provide sales and marketing training at regular sales meetings Provide tools and systems for effective tracking and implementation of programs Review and approve specific marketing strategies, programs, and print materials (brochures, ads, flyers, etc.) Corporate review of monthly sales reports Participation and membership in key sales related organizations; i.e., National Tour Association, Hospitality Sales and Marketing Association, and Society of Government Meeting Planners Assist in recruiting, interviewing, developing, and hiring of sales staff Review and approval of specific marketing strategies, programs, and printed materials Arrangement of group advertising and marketing Continued sales and marketing training Tools and systems for effective tracking and implementation of programs Corporate review of monthly sales reports Sales leads to The Atria Hotels through our Inter sales program Participation and membership in key sales related organizations The Atria hotel
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Extensive corporate database for direct mail marketing
Comprehensive Sales & Marketing Direction Connect with new customers through an expert mix of traditional and modern sales channels. The Atria Hotel has been filling hotel rooms since 1993, and over the years they have established a track record for properties that consistently exceed their fair market share. One of the keys to their long-term success is their ability to develop and implement hotel- specific marketing plans that efficiently allocate marketing, both locally and nationally, to promote sales for their hotels. They have proven strategies that employ traditional media and they have been pioneers in leveraging powerful online channels as they evolve.
Banquet Sales: This type of business includes wedding dinner, cocktail parties, social events, etc. pre- established menu along with their prices are used so that the customer could select an appropriate menu. The main source of business is the local community in which The Atria Hotel is situated. Proper relationships are maintained with people, companies and local organizations; because they have periodic functions and meetings.
Advertising It requires careful planning and organization. The steps are as followed: Carrying hotel messages to specific market. Advertising through media and newspaper. Finding what guest wants.
Selecting most communicative media. Setting aside funds for research. Hence sales and marketing are complementary. If marketing establishes what people need then sales demonstrates how their needs could be fulfilled. The Atria hotel
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Co-ordination with other department: Food and Beverage Service: Gets revenue by selling the different facilities of F & B service, banquets halls etc. Food and Beverage Production: By selling food and beverage with the help of advertising. Front Office: For marketing and selling of different kinds of rooms and suites with the help of advertisement.
Hierarchy of sales and marketing department:
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3.5 Finance Department The accounts department of The Atria Hotel is the one that keeps track of all money transactions of The Atria Hotel. The uniform system of accounting is followed by the Atria Hotel, in respect to the Atria Hotels income. All accounting that is planning, budgeting and analyzing is done by the accounts and finance department. It is also responsible for preparing financial reports with regard to income and expenditure. The Atria Hotels basically credits for two kinds of accounts: -
Accounts Payable Settlement of bills. Payment of cheques. Payment of salaries. Record for petty cash for purchases. Maintaining fund flow registers.
Accounts Receivable Payment by guests. Bills to company. Dues from travel agents.
Tools used for accounting purposes Guest check invoices and receipts. Cash receipts. Accounts receivable. Accounts payable. Purchase order. Cash disbursement. Pay roll.
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General cashiers: The general cashiers have their cabins in the back area of the restaurants. All the KOTs first copy comes to the cashier who then starts making folios for the KOTs table wise. If the guest signs the bill and charges it to the room then both the copies of the bill remain with the cashier, who then sends one to the FO cashier. Maintainingyea the outlet sales summary. There is one general cashier at the account department; his basic job is to keep track of all petit cash paid out for purchase purposes or any other purpose. He receives vouchers from purchase along with daily receivable report, goods bills of payment. At the month end a total summary is made and the total is posted in general ledger, one entry is done for the whole month.
The Finance and Accounting departments play a significant role in the management of atria Hotels & Restaurant, Inc. by providing the financial data used by all managers in their daily decision making, ensuring financially sound and thriving hotels.
At the property level, these departments work closely with General Managers and department heads to maximize their financial acumen, assist with recommendations for desirable economic options, safeguard owner assets with reliable internal control systems, and forecast and prepare monthly and annual reports.
At their corporate offices, Finance and Accounting play key roles in analyzing and driving business case recommendations and providing support for investments and strategic initiatives for our partnerships, loyalty programs, brands and the company overall.
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Co-ordination The account department coordinates with all the other revenue generating outlets of The Atria Hotel, for settlement of bills etc. It also coordinates with the personnel department to receive the monthly attendance statement of the employees, as it is the department, which is responsible for the payment of wages and salaries to the employees of The Atria Hotel.
Hierarchy of Financial Department
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3.6 Purchase and Stores Department
Purchasing can be defined as a function or a task concerned with the search, selection, buying, receipt, storage and final use of a commodity in accordance with the catering policy of the company.
It is very important to a hotels F&B department to exercise control when food is bought and stored. This is where the purchase department plays a vital role in checking the quantity and quality of the commodities.
The purchase department does not only do the purchasing of food and beverage commodities for an establishment but it is also responsible for receiving and storing them at The Atria hotel. Only the alcoholic beverages received are checked and handed over to the F&B controls and they, then further issue it to the bar and respective department on the demand of customer.
At The Atria hotel all the imported sprits and beers served were indented for, from the head purchasing office. Also was all the stationery. Only the IMFL and domestic beers and day-to-day edible food commodities were purchased locally.
All other non consumable items like soaps, shampoos etc. all are purchased at the central purchasing office and are then shifted to its respective department
Duties of Purchase Manager Responsible for the management of the purchasing office, receiving, stores and cellar areas. Direct supervision of the purchasing and storing of all types of commodities. Ensures a continuous supply of all items to the various departments of The Atria Hotel. The Atria hotel
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Research into new economical products, must study market structure, prices and trends in the market. He must possess high moral and ethical values and must be loyal to the establishment. He should have good judgment quality in terms of price, services, food items etc.
Purchase procedure A requisition form of an authorized member of staff related to any department makes a request for purchasing item. Then selection of the source of supply. Negotiating with the suppliers and entering into a contract with the suppliers. The contract with the supplier has to satisfy the all the condition of the contract, that is time of delivery, quality, quantity and size, mode of payment etc. & to reject goods if it is not to the norms. Accepts goods ordered after inspecting and maintain a register to make sure that materials obtained those for which order was placed & also adjust, if any discrepancies arise that can be solved later. Transfer commodities to the ordering dept. or to store / cellar.
Purchasing of Food material Purchasing of food items can be done by the following methods: - Specific Period Contract: Which aims at determining the source of supply, if goods with the agreed price for a separated period of time, it is often 3-6 months. Firms at Opening Price: In this method the contract is made with the supplier for a specific rate and irrespective of change in price, the supplier has to deliver goods on accepted price. Subject to Approval of Price: In this method the buyer has option if the price fixed in the contract is not acceptable, because of fall or rise in market price etc.
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Stores The main objective of a good store is to ensure that adequate supply of foods for the immediate needs of the establishment are available at all times. There are mainly 4 types of stores: - Dry Store. Dry Food Store. Refrigerated Storage. Frozen / Low Temp. Storage.
All the types of stores have their own advantages but the purchasing only maintains the dry stores and the beverages stores, while the kitchen staffs maintains the other two. As only very highly perishable items are stored in they and such items are ordered on a daily basis.
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Hierarchy of Purchase and Stores Department:
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CHAPTER 4 SWOT Analysis
Strengths: Location: The major strength of this hotel is location is because it nearer to places likes railway station, bus stand and local airport, vidhan soudha.
Competitive prices: Hotel provides delicious and quality food and service at very competitive prices compared to other hotels.
Reputation: The Atria hotel has started in 1993 from that time company has maintained its reputation by providing good service food and allotment of rooms.
Quality of food and service: Hotel is providing good quality of food and service to customer. The quality of food is provided according standard in terms of taste and quantity.
Ample space in rooms and parking space: Hotel has been constructed in a spacious area because the hotel is providing parking facility when some function is held like marriage etc.
Government support: Till a few years ago, the Indian government had a total apathy towards promotion of tourism. In fact, the industry did not find a place in the government's fund allocation. Things have, however, witnessed a change. The government seems to have realized the importance of tourism and is willing to spend towards the development of the industry. The 'Incredible India' campaign is a product of this realization. The focus on infrastructure, modernization of airports, open sky policy, development of new tourist destinations and circuits, more fund allocation towards The Atria hotel
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tourism are some of the initiatives taken by the government to promote tourism. The Indian hotel industry stands to gain from this pro activeness shown by the government.
Weakness: Hotel is not modernized: Hotel has not changed its interior from past 17 years it is major weakness of The Atria hotel.
Poor support infrastructure: The atria hotel is currently spending a miniscule amount compared with its needs, on infrastructure.
Huge turnover of the staff in F&B(s) and Housekeeping
Attrition: Atria are in an industry where attrition is one of the major areas of concern. This year, Atria has an annual attrition of 32% which is higher than average mainly due to ramping down activity during the year. The Company also faces a tough challenge in recruiting employable manpower from the large manpower pool available. Atria have been investing a lot of resources for training candidates on the basic skills that are required to make them employable. These are also done through partnering with educational institutions and governmental organizations. Atria must necessary processes are in place to ensure that right candidates are being hired, trained and retained. However, the availability of employable candidates is higher.
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Opportunities: Core competency: The strategy of Atria has always been to grow by developing its expertise in specific verticals. This has helped atria for sharpen training & processes for specific domains enabling to achieve domain specialization resulting in delivering quality service to each of their customers. Atria have the experience, expertise and customizable service that focus on customer delight. Its solutions are reflective of its outlook and focus.
Building lasting Relationships: Its a culture that percolates into everything it does. Atria look to grow in each of these horizontals and also identify and develop specialization into serving to grow our offerings continuously.
Rising Income: While there has been much talk about record number of foreign tourist arrivals, very little has actually been said or done about domestic tourism, which, according to our estimates, has registered a 40% annual growth in the last three years and is currently estimated at 300 m travelers. Per capita income grew by an impressive 7.1% in 2005, while Gross Domestic Savings touched an all time high of 28%. Significantly, the present-day consumption boom in India has been influenced more by higher disposable income rather than lower savings. This is good news, as income induced spending is likely to sustain itself for a longer period. Higher disposable incomes are also expected to enhance the concept of traveling for leisure. New business opportunities: Over the next three to five years, the biggest surge in accommodation demand is expected to come from commercial zones that are being developed in metro suburbs and secondary markets. Open sky benefits: The opening up of the aviation industry in India brings exciting opportunities for the hotel industry (airlines transport around 80% of international tourists). As the open skies policy has benefited both international and domestic travel.
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Threats: Infrastructure risks: The Company has invested substantially in the state of the art infrastructure and equipment in its centers to provide a world-class service to its customers. Service to our customer also depends on the uninterrupted functioning of these equipment, power and stability of equipments. Any obsolescence in the infrastructure and equipment leading to incompatibility with custom or any disruption in the essential services may affect the business of the company.
Increasing competition: There are many other Five star hotels in the area that creates tough competition i.e. Taj, Moven Pick, Four Seasons.
Event risk: Events like bomb blasts and terror attacks in Bangalore have severely impacted the tourism and hotel industry. It resulted in decreasing in the number of foreign tourists. Development in transportation facility: As transportation facilities are developed, customer having work of one or two hours in other city or country can return back to his home place within no time, this would cause decreasing in the customers who are using hotel facilities.
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Chapter 5 MCKINSEY 7S MODEL
The McKinsey 7S Framework is a management model developed by well-known business consultants Robert H. Waterman, Jr. and Tom Peters. The 7-S framework of McKinsey is a Value Based Management (VBM) model that describes how one can holistically and effectively organize a company. Together these factors determine the way in which a corporation operates. The 7S model can be used in a wide variety of situations where an alignment perspective is useful. Improve the performance of a company. Examine the likely effects of future changes within a company. Align departments and processes during a merger or acquisition. Determine how best to implement a proposed strategy.
The Seven Elements: The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements:
Hard Elements Soft Elements Strategy Structure Systems Shared Values Skills Style Staff
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"Hard" elements are easier to define or identify and management can directly influence them. These are strategy statements; organization charts and reporting lines; and formal processes and IT systems. "Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful. The way the model is presented below depicts the interdependency of the elements and indicates how a change in one affects all the others.
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S1: STRUCTURE Business needs to be organized in a specific form of shape that is generally referred to as organizational structure. Organizations are structured in a variety of ways, dependent on their objectives and culture. The structure of the organization often dictates the way it operates and performs. Traditionally, the organizations have been structured in a hierarchical way with several divisions and departments, each responsible for a specific task such as human resources management, finance or marketing. Many layers of management controlled the operations, with each answerable to the upper layer of management. Although this is still the most widely used organizational structure, the recent trend is increasingly towards a flat structure where the work is done in teams of specialists rather than fixed departments. The idea is to make the organization more flexible and devolve the power by empowering the employees and eliminate the middle management layers.
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S2: STRATEGY Strategy is the plan of action an organization prepares in response to, or anticipation of, changes in its external environment. Strategy is differentiated by tactics or operational actions by its nature of being premeditated, well thought through and often practically rehearsed. It deals with essentially three questions (as shown in figure): 1) Where the organization is at this moment in time, 2) Where the organization wants to be in a particular length of time and 3) How to get there. Thus, strategy is designed to transform the firm from the present position to the new position described by objectives, subject to constraints of the capabilities or the potential.
Focus strategy: It focuses more on tourists.
Differentiation: The Atria Hotel has the experience, expertise and customizable service that focus on customer delight. Cost leadership They charge low cost compared to other 5star Hotels. HOW DO WE GET THERE? WHERE DO WE WANT TO BE? WHERE ARE WE NOW? The Atria hotel
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S3: SYSTEMS Every organization has some systems or internal processes to support and implement the strategy and run day-to-day affairs. For example, a company may follow a particular process for recruitment. These processes are normally strictly followed and are designed to achieve maximum effectiveness. The Atria Hotel has been following a bureaucratic-style process model where most decisions are taken at the higher management level and there are various and sometimes unnecessary requirements for a specific decision to be taken. S4: STYLE It includes the dominant values, beliefs and norms which develop over time and become relatively enduring features of the organizational life. It also entails the way managers interact with the employees and the way they spend their time. Culture remains an important consideration in the implementation of any strategy in the organization. In The Atria Hotel decision making involves discussions among cross section of departments and/or formal decisions by the Competent Authority on office notes in accordance with the Instrument of delegation of Financial and Administrative powers. S5: SKILLS Skills refer to the capabilities of the staff within the organization as a whole. The employees of The Atria Hotel possess different skills which are relevant for their work. Skills refer to the capabilities of the staff within the organization as a whole. The employees of The Atria Hotel possess different skills which are relevant for their work. The Atria hotel
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Top level management, senior level management and middle level management possess conceptual and human skills. These skills are required as they are responsible for planning, evaluating and executing policies, strategies etc. Lower level management possesses technical and human skills. These skills are required to perform their job efficiently. S6: STAFF Organizations are made up of humans and it's the people who make the real difference to the success of the organization in the increasingly knowledge-based society. The importance of human resources has thus got the central position in the strategy of the organization, away from the traditional model of capital and land. The Atria Hotel has total staff strength of about 313. The selection procedure includes personal interview for non technical jobs and technical evaluation for technical jobs. The recruitments of job vacancies are made by publishing advertisement in newspaper, employment news paper, walk in etc. S7: SHARED VALUES All members of the organization share some common fundamental ideas or guiding concepts around which the business is built. These values and common goals keep the employees working towards a common destination as a coherent team and are important to keep the team spirit alive. Safety Service Excellence Teamwork Accountability Social responsibility The Atria hotel
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CHAPTER 6 6.1Findings
Findings: The Atria Hotel is large, well organized profitable Organization and maintained its reputation by providing good service. The Atria Hotel has efficient workforce. There is high turnover of staff in Atria Hotel. Employees arent satisfied with the salary package. The Atria Hotel is not modernized, as it has not changed its interior from past 17 years. There are no proper training sessions for the employees working in housekeeping and cleaning department, as a result of this, damage caused by the employees is high. Technical Maintenance is not up to the standards. The Atria Hotel has the experience, expertise and customizable service that focus on customer delight. The Atria Hotel is providing good quality of delicious food and service at very competitive prices compared to other hotels. In housekeeping department employees have to inhale hazardous gas while dry cleaning customers clothes.
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6.2Suggestions
Employees should be trained in regular intervals, in order to increase their productivity and efficiency.
Employees in Housekeeping department have to be given safety equipments so that they dont inhale the gas coming out from the machines while dry cleaning customers clothes which is hazardous to their health if they inhale.
Offer fair working conditions and above-average pay. Check on the pay and benefits offered to the competitor's employees and raise employees pay when necessary.
Technical aspects are to be taken care, like improving wi-fi quality, maintenance of surveillance cameras, etc.
Retain the trained employees, so that accidental damages would reduce and the quality of the service would increase.
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6.3 Conclusions
The project has been prepared to list out the operational aspects of different departments of The Atria Hotel. After compiling various information of different departments and providing solution to the various problems a solution may be drawn that no department is without problems.
The project has partially explains the various functions and procedures of department at The Atria Hotel. The hotel is running well and has a good share of business and corporate clientele but it is worthy to mention now that the system and procedures need an up gradation. A little more strain on the delegation of power should be given.
The Atria Hotel not only gives importance to passengers but also is concerned about it employees. The Atria Hotel makes sure that the employees follow the rules while they are on duty and are satisfied with work that they do. The organization takes care of the comforts of its employees and makes sure that even after their retirement they have benefits provided so that they can spend their old age at ease. Therefore one can confidently state that The Atria Hotel takes good and adequate measures to make sure that its employees are satisfied and contented working in this organization.
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Chapter 7 Bibliography
BOOKS: Strategic management theory CHARLES WE HILL Marketing management PHILIP KOTLER