1

Declaration
We hereby declare that the project work entitled Quality Management Assignment on Hospitality Sector (5
Star Hotels) submitted to the Symbiosis International University, Pune, is a record of an original work done
by us under the guidance of Professor Atika Gupta of Symbiosis Centre for Management Studies, and this
project work is submitted in the partial fulfilment of the requirements for the award of the degree of
Bachelor of Business Administration. The results embodied in this project have not been submitted to any
other University or Institute for the award of any degree or diploma.











Craig Pinto (3253)
Navdeep Sinver (3268)
Sahil Sheth (3276)
Siddharth Kundu (3278)
Yusuf Hakim (3288)
Himanshu Agrawal (3290)









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Acknowledgement
It is a great pleasure for us to thank the many people who in different ways have supported and contributed
to the process of writing this project. We would first and foremost like to express our sincere gratitude to the
Almighty God for his guidance during this program. We would like to thank our family that have
encouraged us all along. Without their patience we would not have made it through this journey. We owe
special gratitude to the management of Hyatt Pune (Kalyani Nagar) that gave us their support and the people
that helped out during the time of gathering the data used for the project. Finally, we would also like to
thank our supervisor, Professor Atika Gupta, for her time and advice helping us getting started down the
right road and also for his constructive advice throughout the project.











Craig Pinto (3253)
Navdeep Sinver (3268)
Sahil Sheth (3276)
Siddharth Kundu (3278)
Yusuf Hakim (3288)
Himanshu Agrawal (3290)











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Total Quality Management in Hospitality sector
Total Quality Management methodology can help organizations to achieve business excellence. This
methodology is also useful for the hospitality industry; almost all hotels focus on quality management to
improve their business by enhancing customer satisfaction, competitive advantage and retaining guest
loyalty. TQM is teamwork; every functional department must work cohesively together and support each
other in order to achieve business excellence. Different departments in a hotel have different roles in
delivering the service to hotel guests. This dissertation is aimed to find out how the hotel on a whole carries
out the goal of quality management together with the factors and practices that could impact the hotel both
positively and negatively to achieve the quality.
In todays highly competitive business environment, a companys capability to sustain its competitive
advantage is crucial for the continuity of the business.
Quality is the most important factor for sustaining the competitive advantage. It is the measurement of how
well a company can meet or exceed its customers requirements and expectations.
Competition is extremely high in a free market. Customer satisfaction is essential in a free market due to the
following reasons:-
The products or services from the service providers are similar;
Customers within the market are price-sensitive;
Customers have stronger bargaining power as the cost to switch to another service is considered as
low.
The hospitality industry has strong market competition; therefore, customer satisfaction and retaining loyalty
will be crucial for a hotels success.
The Total Quality Management (TQM) methodology can help organizations to achieve business excellence
by improving customer satisfaction (both internal and external), cost effectiveness and competitive
advantage. This methodology is useful for the hospitality industry. In a hotel, any quality problem will
induce guest complaints; the impact is direct and immediate without any time delay. Also, a hotel serves
human beings and no two people are alike. People have different preferences and requirements which makes
it more difficult to control quality in a hotel.
For successful TQM practice, organizations have to integrate the quality management into the business
strategy and to align the goals both horizontally and vertically throughout the various levels within the
organization. In a typical hotel, there are three vertical levels - the senior management level, the business
level (middle management) and the functional level (shop floor). Horizontally, there are departments front
office, food and beverage (F&B), housekeeping, sales and marketing, human resources, accounting,
engineering and culinary.
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Nowadays, almost all hotels focus on quality management to improve their business. Eminent personalities
emphasize that TQM is about teamwork; every functional department must work cohesively together and
support each other in order to achieve business excellence. The effectiveness of teamwork determines the
success of TQM in each hotel; this is why some hotels have better performance than others.
However, the focus of the most recent research on TQM in the hospitality industry is only on the service
from front-line departments such as front office and F&B; they ignore the efforts from back-of-house
departments.

















5

About Hyatt Group of Hotels
Hyatt are a global hospitality company with widely recognized, industry leading brands and a tradition of
innovation developed over our more than fifty-year history. Their mission is to provide authentic hospitality
by making a difference in the lives of the people we touch every day. They focus on this mission in pursuit
of their goal of becoming the most preferred brand in each segment that Hyatt serves for their associates,
guests, and owners. They support their mission and goal by adhering to a set of core values that
characterizes our culture.
Hyatt manages, franchises, owns and develops Hyatt branded hotels, resorts and residential and vacation
ownership properties around the world. As of December 31, 2013, the company's worldwide portfolio
consisted of 549 properties.

History of Hyatt Group of Hotels
Hyatt was founded by Jay Pritzker in 1957 when he purchased the Hyatt House motel adjacent to the Los
Angeles International Airport. Over the following decade, Jay Pritzker and his brother Donald Pritzker,
working together with other Pritzker family business interests, grew the company into a North American
management and hotel ownership company, which became a public company in 1962. In 1968, Hyatt
International was formed and subsequently became a separate public company. Hyatt Corporation and Hyatt
International Corporation were taken private by the Pritzker family business interests in 1979 and 1982,
respectively. On December 31, 2004, substantially all of the hospitality assets owned by Pritzker family
business interests, including Hyatt Corporation and Hyatt International Corporation, were consolidated
under a single entity, now named Hyatt Hotels Corporation.








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Brands owned by Hyatt and their accolades

Hyatt Hotels Corporation
Environmental Excellence Award 2011 Microsoft Preferred Supplier Program (MPSP) Excellence
Awards
2012 Gallup Great Workplace Award
25
th
on 201 Information week 500 List
2012 Best Places to Work for LGBT Equality Human Rights Campaign
Top 100 Workplace in Chicago (#2 Large Company) Chicago Tribune

Hyatt Hotels & Resorts
2012 Readers Choice Top 50 Employers CAREERS & the disabled Magazine
Best Overseas Hotels (#1) Travel Awards 2012 The Guardian and Observer
Top 50 Places to Work in 2013 Employees Choice Awards Glassdoor
Top 50 Most Admired for HR HR Executive Magazine
Top Employer for Hospitality Management Students Universum 2012 IDEAL Employer Surveys
Top 30 Employer for Business Undergraduates Universum 2012 IDEAL Employer Surveys
Top 50 Employer for Liberal Arts Undergraduates Universum 2012 IDEAL Employer Surveys
Top 75 Employer for Students in Switzerland Universum 2012 IDEAL Employer Surveys

Andaz
Best Lifestyle Hotel (#1) 2012 GT Tested Awards Global Traveller




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Park Hyatt
Best International Hotel Chain (#5) 2012 GT Tested Awards Global Traveller
Best Domestic Hotel Chain (#5) 2012 GT Tested Awards Global Traveller
Best Hotel Chain in Asia (#7) 2012 GT Tested Awards Global Traveller

Grand Hyatt
Best Business Hotel Brand in the World (#2) 2012 Business Traveller Asia-Pacific Awards Business
Traveller Asia Magazine
Best Business Hotel Brand in Asia-Pacific (#3) 2012 Business Traveller Asia-Pacific Awards Business
Traveller Asia Magazine
Best Business Hotel Brand in North America (#2) 2012 Business Traveller Asia-Pacific Awards
Business Traveller Asia Magazine
Best Hotel Chain in Latin America (#8) 2012 GT Tested Awards Global Traveller
Best Hotel Club Floor (#2) 2012 GT Tested Awards Global Traveller

Hyatt Place
Ranked First in Select Service Category 2012 Hotel Chain Survey Business Travel News

Hyatt House
Ranked First in Extended Stay Upscale Category 2012 Hotel Chain Survey Business Travel News

Hyatt Gold Passport
Best Elite Program in Asia 2012 Freddie Awards
Best Hotel Rewards Program in the World (#5) 2012 GT Tested Awards Global Traveller
Best Frequent-Stay Elite-Level Program (#7) 2012 GT Tested Awards Global Traveller
Best Frequent-Stay- Affinity Credit Card (#7) 2012 GT Tested Awards Global Traveller

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About Hyatt Pune (Kalyani Nagar)
Five Star Hotel in Pune Located Close to the Airport
Hyatt Pune is an upscale Business Hotel in Pune with an intimate, tranquil and serene ambience. With the
key themes of light, air and water highlighted with every design element, the hotel interiors are bound to
leave a lasting impression on all guests visiting the hotel.
Located within close proximity of Pune airport, key business hubs and entertainment/shopping areas, the
luxury 5 star hotel is ideal for business as well as leisure travellers. With its fully equipped business centre,
meeting rooms & ball room(s), the hotel can host multiple small & medium size social and corporate events.

For the Business Traveller
Ideal for the business traveller, the Hyatt Pune hotel offers 209 guestrooms, including 12 suites that have
exclusive access to the Executive Lounge on the fourth floor of the hotel. Elegantly appointed rooms are
situated from the second to seventh floors and offer panoramic views.
The luxury hotel is just three kilometres away from Pune International Airport and is easily accessible by
hotel limousine or taxi. The hotel is located in Punes IT hub and is close to many SEZ areas, industrial belts
and top automobile manufacturing companies, including Mercedes, Volkswagen, General Motors, Fiat, John
Deere among others.

For the Leisure Seeker
For those seeking some leisure, a selection of world-class dining and recreational experiences are available
on property.
Dining options include: Our all day restaurant Eighty Eight, which offers international cuisine and outdoor
dining.
Our very popular Oriental restaurant Baan Tao - an award-winning restaurant that serves up authentic
Chinese and Thai cuisine.
Also on the property is the Fish Bowl lounge, which is all set to become one of the hottest nightspots, with
its Saturday night celebrity DJ concept - the HYNITE. On other evenings the Fish Bowl lounge is known for
the wonderful drinking ambience, live screenings of popular sports activities and premium cocktails.


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Weekend Getaway to Pune
For those looking to explore the city of Pune, Hyatt Pune Kalyani Nagar is nestled right in the heart of the
city, adjacent to the tranquil Aga Khan Palace One of Punes best-known landmark. What's more, the hotel
is just a 10 minute drive away from the ashram or abode of the Indian Guru Bhagwan Shree Rajneesh or
Osho and the many pubs, eateries and hang out places at Koregaon Park.
At the property you can celebrate total wellbeing through the fusion of traditional Ayurveda and
international treatments at the hotel speciality spa in one of our five beautifully appointed rooms or sweat it
out in the hotel Fitness Centre.




















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Aim and Objective of the research
The main objectives of this research are to highlight the benefit of TQM implementation at Hyatt Pune by
examining the basic principles of TQM in the hotel. It will thus compare and contrast the performance of
TQM hotels and Non TQM hotels by measuring statistically three major added values namely:-
Customer satisfaction
Employee satisfaction
Operational effectiveness
The outcome of these comparison will show the need for benchmarking by the non- TQM hotels, in other to
derive the value created by its implementation.
Different departments in a hotel have different roles in delivering the service to hotel guests. Also, front-of
house and back-of-house departments play different roles in the quality chain.
This dissertation intends to find out the roles and responsibilities of the various department in hotels, and
how the departments support the overall hotel quality performance.















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Problems found in the organisation
After talking to some of the employees at the hotel and interviewing them we came to this conclusion
regarding the problems at the hotel

Description Vote Ranking
Bureaucratic policy traditional financial practice 5 2
Cost cutting excises 1
Hard to recruit new staff 2
High turnover rate 1
Incorporation to save energy by staff of other
department
2
Insufficient training 1
Incompetent staff 1
Insufficient staff 1
Inadequate support from senior management 6 1
Inadequate support from owner 2
Long approval time 1
Long working hours for staff in hotel 1
Poor management and leadership skills 1
Poor attitude of the hotel staff 1
Poor communication 1
Unfair work environment 5 3
Imbalance of work and personal life 1
Resources constraint 2


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The top three barriers are: inadequate support from senior management, unfair work environment and
bureaucratic policy traditional financial practice.
Inadequate support from senior management This is in line with the findings of the critical
success factors shown above. For a five-star chain hotel, senior management includes the general manager
of the hotel and the regional engineering head office. Their support has a profound effect on the
performance of the department.
Some of the hotel staff pointed out that most general managers like to see staff moving around in the hotel;
most general managers believe that the busy the hotel, the higher the moving.
Unfair work environment - Most interviewees pointed out that unfair reward packages for
technicians has been the biggest de-motivator in his department. The engineer explained that back-of-
house employees are considered as second level employees and their benefits are below that of front line
staff. He believes that this is due to the fact that management people do not fully know the work score of
staff from different departments; insufficient knowledge of staff causes less care for the staff. Also, the
grooming and appearance of technicians or engineering workers is low in comparing with front-line staff,
this may also be one of the causes of the discrimination. Discriminating de-motivates and lowers the
morale of the workplace.
Being fair is the basic requirement for building a high performance, effective and cohesive working team;
especially in a multi-cultural working environment.
Multiple-skills Multiple-skills means that technical staff possesses more than one trade skill. In
general, interviewees agreed that the promotion of multiple-skills could enhance the performance of the
engineering department. For example, it would increase the flexibility of allocating daily repair and
maintenance routines. Also, technicians with multiple skills could handle work orders more efficiently; they
could handle different trade problems by themselves instead of calling another technician for help.
Reduction of response time to work orders could enhance the customer satisfaction.

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Suggestions to Hyatt Pune
Quality is not an event but it is an on-going process. As far as service organizations are concerned, quality is
not the responsibility of the Quality Control Department only; rather it is a matter to be taken care of by the
entire business system. The following are our suggestions to the hotel for achieving service quality:-

Visionary leader: The presence of a visionary leader at the top is a necessary element for achieving
quality the vision of the leader guides the organizational effort into achieving a high standard of service
quality A visionary leader through his verbal and symbolic communication shows others where the future
lies.

Setting high performance standards: It must be made clear to every employee that one is
expected to give one's best. Casual attitudes will not work and will not be accepted in any case.

Management commitment and support: The process of quality improvement should receive total
commitment and support from the top management.

Preparing the employees: The organization needs to prepare employees so that they are capable of
delivering quality service. Employee training programmes to cultivate and develop technical and
interpersonal relations and communication skills need to be organized.

System for addressing customer complaints: There should be a system for handling complaints
and suggestions. The customer should be informed about the action taken and thanked for giving
suggestions.

Listening: Understand what customers really want through continuously listening to the expectation and
perceptions of existing customers and potential customers.

Reliability: Reliability is the single-most important dimensions of service quality and must be a service
priority.

Basic service: Service companies must deliver the basics and do what they are supposed to do keep
promises, use common sense, and listen to customers. Keep customers informed and be determined to
deliver value to customers.
Service design: Develop a holistic view of the service while managing its many details.
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Recovery: Service companies should encourage customers to complain (and make it is easy for them to
do so) if they encounter a service problem. Respond quickly and personally and develop a problem
resolution system.

Fair play: Service companies must make special efforts to be fair and to demonstrate fairness to
customers and employees.

Teamwork: Teamwork is what enables large organizations to deliver service with care and attentiveness
by improving employee motivation and capabilities.

Employee research: Conduct research with employees to reveal why service problems occur and what
companies must do to solve problems.
















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Conclusion
The findings of this research attest to the benefits that accrue from the implementation of TQM. It has
shown that it is a strategic tool for an organization to employ in the quest to remain competitive. If
adequately deployed, the principle brings about added value to an organization in terms of efficiency in
operation, employee satisfaction, customer satisfaction, and even profitability.
The finding also revealed that the relentless pursuit of improvement in service delivery bring about added
value to customers by making the organization focused on satisfying customers needs, while team work and
training empowers employees for the continuous improvement drive of the organization. The implication of
managing every facet of the organization was revealed, as each production unit is seen to affect and in turn
affected by others. That is, a dysfunction in the process of service delivery has an overall effect on the total
production process, thus showing the need for a holistic approach which involves every functional area to be
managed effectively.
The implication of not managing quality effectively was shown in the case on the non-TQM hotels, which
resulted in inefficiency and loss of patronage due to dissatisfaction of customers. The findings of this
research supports the idea that the management of the organization has a major role to play in terms of
ensuring a culture which permits every member of the organization to be involved and contribute to quality
improvement, as the involvement of employees in detecting and monitoring the quality performance requires
a decentralized organizational structure. This structure permits for innovation as it permits everybody in an
organization to seek solution to a particular quality problem.