ITC HOTELS

INTRODUCTION

Incorporated in August 24, 1910 Annual turnover stood at $7 billion Renamed ITC Limited in 2001 Employs over 29,000 people at more than 60 locations across India World's Best Big Companies, Asia's 'Fab 50' World's Most Reputable Companies by Forbes magazine

MISSION
To In

enhance the wealth generating capability

a globalising environment superior and sustainable stakeholder

Delivering

value.

VISION
Sustain One

ITC's position

of India's most valuable corporations world class performance

Through Creating For

growing value

the Indian economy and the Company's stakeholders.

VALUES
Trusteeship Customer Respect

Focus

for people

Excellence

Innovation
Nature

Orientation

No. 2 in Size No. 1 in Profitability

ITC HOTELS

Launched in 1975 - The Greenest Luxury Hotel Chain in the World India's second largest hotel chain Pioneered the concept of 'Responsible Luxury' in the hospitality industry

BRANDS OF HOTELS
CATEGORY
LUXURY

BRAND
ITC Hotel: Luxury Collection

POSITIONING
Mansions of Luxury

UPPER UPSCALE

WelcomHotel:Sheraton

Passion for Quality

UPSCALE- MID SCALE

Fortune Hotels

Promise of True Value Unique Experiences

HERITAGE

WelcomHeritage

Responsibility Centre
Cost Centre

Laundry Engineered cost Centre Engineering Maintenance Training and accounting Discretionary cost Centre Human Resource

Revenue Centre
Room, Reservation Sales department

Profit Centre
F&B department/manager

Q-1 Outline the management control system at ITC HOTELS ?

Organizational structure

ITC Hotels follows STRUCTURE.

FUNCTIONAL

ORGANIZATIONAL

The organizational structure at ITC Hotels consists of eight functional departments, namely:

Food and Beverages Production Food and Beverages Service Front Office Housekeeping Engineering Sales Finance Human Resource

Q-2 How do ITC assure that after having so many department there is optimum co-ordination between the department?

Attributes on which employees are rated

Likert scale of 1 to 5
Representing a behaviour or a skill

Score is further multiplied to the weights

Scores for each attribute is finally added.

JOB KNOWLEDGE Punctuality Skills Attendance Efficiency Initiative Attitude towards work Responsibility Co-operation

Factor Rating Method

SCORE OBSERVATION RATING RECOMMENDATIONS
0-25 Re Rating Poor Worker File needs to be built

25-60

Needs further input

Average Worker

One increment

60-80

Needs to be groomed
Should be retained

Good

Two increments

80-100

Excellent

Three increments/Promotion

Balanced Score Card

Customer Perspective
Internal Processes Perspective

Financial Perspective
Employee Perspective

Social Perspective

Q-3 Is the method used by ITC for performance management appropriate for their control systems?

CULTURE
PARTICIPATIVE
Promotes Offers

STYLE of management

diversity

equality of opportunity to all employees of partnerships

Culture A

discrimination-free workplace

Q-4 How important role does the organizational culture play in ITC Hotels control process?

Six Sigma Control Systems

WOW Ratios Areas

Model

Process

Line Charts

Q-5 Should ITC modify any of their control systems?

Key Performance Indicators

Currently used
Hotels/rooms in operation Hotels/rooms under development Occupancy RevPAR(Revenue Per Available Room) Service cost per room

Proposed

F&B Revenue per night Revenue per staff member Expenditure per staff member Energy expenditure per night

Guest satisfaction
Staff efficiency Quality leisure services.

Service Blueprinting
Map or a diagrammatic representation of service delivery process Helps in identifying recruitment, training and development needs

Budgeting Improvements
introduction of Zero Based Budgeting Gives hotel operators the flexibility to create different scenarios and associate each expense as it relates to the business General Managers must involve all departments when preparing monthly forecast and annual budgets. Make department managers part of the planning process

THANK YOU

Group Members

Yesha Shah-12BSP1427 Zainab Saherwala-12BSP1432 Yashika Jain-12BSP1425 Avinash Kumar-12BSP1499