Performance management process of Ramada

Submitted to: Mam Saima Course instructor: Performance Management System BBA 7 Submission date: 7th may 2013

Group members : Ammara habib Hoorulain siddiqui Jansher junejo Maryam mukhtar Mehwish brohi Mir mansha ali

Preface

Department of management sciences, the Bahria university, Karachi campus has always been admirable in its efforts to equip the future executives with arms of creativity, flexibility and adaptability to meet the challenges offered by fast changing business environment. To achieve the above goals the department is providing both text and practical knowledge to its students with its available resources. Text knowledge is very well transferred to the students within the premises of the department; practical knowledge requires the kind co-operation of various business organization of the country.

We have done our best efforts to complete this report efficiently and effectively with all abilities. We hope this report fulfills the criteria and expectations of department of management sciences. We have tried our best to make it analytical as well as informative.

May Allah help us in this world. (ameen)

Acknowledgement
We owe our heartfelt thanks to god almighty, who enabled us to discharge such responsibility with due care and caution. Life is a learning experience. We have learned the validity of this statement time and time again. Every time we think we know something, we look back a year later and realize how little we know and how much we have learned. This literature review report has convinced us again, not in the learning but also in terms of the vast team of talented people that take part in creating this report. We believe each person plays a piece of a puzzle to make the complete picture, some pieces are bigger than others, but without anyone piece the picture would not be completed.

Tribute goes to our worthy teachers the main source of the enlightenment of our minds and the development of our natural potential. We are indebted to our honorable, kind and supportive teacher Mam Saima Zia who made our concepts, regarding the analysis very palpable. He guided us at every step and helped us where we feel intricacy.

The planning and reinforcement of this report is not an effort of just our group. It involves many other persons, who helped us in the preparation of this report. We are gratified to our teachers. Who guided us and provide a lot of information related to our topic.

Contents OUR MISSION: ............................................................................................................................................... 6 We will be the global leader in travel accommodations welcoming our guests to iconic brands and vacation destinations through our signature count on me! Service. ........................................................... 6 RAMADA INTERNATIONAL: ........................................................................................................................... 6 DERIVATION: ............................................................................................................................................. 6 LOCATION: ................................................................................................................................................ 6 HOTEL TIERS: ............................................................................................................................................. 6 OUR CULTURE: .......................................................................................................................................... 7 OUR CORE VALUES: ................................................................................................................................... 7 PERFORMANCE MANAGEMENT SYSTEM : ................................................................................................... 7 PERFORMANCE MANAGEMENT SYSTEM ACCORDING TO RAMADA HOTEL: .............................................. 7 OBJECTIVES OF PERFORMANCE APPRAISAL IN RAMADA HOTEL: ............................................................... 8 PERFORMANCE MANAGEMENT PROCESS: ................................................................................................... 8 TRAITS OF THE BEST PERFORMANCE MANAGEMENT SYSTEMS ................................................................ 11 PERFORMANCE APPRAISAL BIASES:............................................................................................................ 12 HOW RAMADA AVOID PERFORMANCE APPRAISAL BIASNES: .................................................................... 13

OUR MISSION:
We will be the global leader in travel accommodations welcoming our guests to iconic brands and vacation destinations through our signature count on me! Service.

RAMADA INTERNATIONAL:
Ramada international is the company that owns, operates, and franchises hotels using the ramada name outside of the united states and canada. Ramada international was formerly owned by marriott international, a competitor of cendant, which owned ramada in the united states and canada. In 2004, however, cendant purchased ramada international from marriott, which gives cendant worldwide rights to the ramada name. Despite now being under the same ownership, ramada and ramada international remained separate entities. In 2006, the hotels and hospitality divisions of cendant were spun off into wyndham worldwide.

DERIVATION:
The name "ramada" is derived from the spanish term "rama" meaning branch and was applied to temporary open air structures called ramadas that were made of brush or branches And were popular in arizona during harvest time.

LOCATION:
Our ramada plaza karachi airport hotel near jinnah international airport is close to downtown and lyari expressway. Begin your mornings with free breakfast to refuel for the day ahead of you. Take advantage of thoughtful conveniences like airport shuttle, free internet access, guest laundry, 32-inch flat-screen tvs and free parking. Our hot tub, sauna, gym and outdoor pool provide you with plenty of opportunities to unwind. Handicapped-accessible and non-smoking rooms are available.

HOTEL TIERS:
The chain offers different hotel "tiers" based on price and services offered.

Ramada limitedbudget-oriented properties, typically with no on-site restaurant, though a pool and deluxe continental breakfast are standard. Some ramada limited consist of rooms mixed with suites, or are entirely suites. Ramada inn/inn & suites/suitesfull-service properties with swimming pools, exercise rooms, room service, and free breakfast items. If there is no restaurant on site, a convenience store is usually on the premises. Some hotels have mixed rooms and suites, and a few are entirely suites. Ramada hotel/hotel & suites/hotel & resort -found only in canada and international destinations, these are full-service hotels with room service, a full-service restaurant, and fully developed fitness 6

centers. Many of the international hotels also offer suites in addition to rooms, and a few have a resort and hotel together. Ramada plazalower "upscale" properties offering business centers, full-restaurants, enhanced room service, and concierges at many locations.

OUR CULTURE:
We are striving to become the widely-recognized service leader in the hospitality industry. We have a service-oriented culture in which each associate strives to be responsive, be respectful and deliver great experiences to our customers, guests, partners and communities as well as to each other.

OUR CORE VALUES:

Act with integrity in all that we do: without integrity, the foundations of business and life crumble. Respect everyone, everywhere: whether we are working with a customer, a hotel franchisee, a senior executive or a security guard - respect knows no boundaries. Provide individual opportunity and accountability: as leaders, we need to actively include diversity in our thought process. Diversity or inclusion - here at Ramada, it is the same concept. Being inclusive expands our horizons and our society. Improve our customers' lives: whether we are helping our hotel franchisees or resort affiliates with their businesses or creating memorable experiences for the guests visiting our properties we strive to improve their lives through their interaction with us. Support our communities: as a large company, we provide employment that helps out the communities in which we operate. But the Ramada philosophy is that is not enough. We need to give back to our communities to improve the world around us.

PERFORMANCE MANAGEMENT SYSTEM :

As its continuous process of identifying, measuring and developing the performance of indiviuals and teams through training and counseling .also the performance management system should be aligned with strategic goals of the organization.

PERFORMANCE MANAGEMENT SYSTEM ACCORDING TO RAMADA HOTEL:

As its continuous process of identifying, measuring and developing the performance of individuals and teams through training and counseling them. According to Ramadas mission they have to complete industrial peace and staff should be motivated and directed towards giving best services and serving the guests and this is done by performance appraisals coming under heading of performance management system.

OBJECTIVES OF PERFORMANCE APPRAISAL IN RAMADA HOTEL:

Grow sales Reduce costs in the organization Stop project overruns Aligns the organization directly behind the Ceo's goals Optimizes incentive plans to specific goals for over achievement, not just business as usual Improves employee engagement because everyone understands how they are directly contributing to the organizations high level goals Create transparency in achievement of goals High confidence in bonus payment process Professional development programs are better aligned directly to achieving business level goals Flexible, responsive to management needs Displays data relationships It is given to keep employees motivated. Also its given to keep employees directed Its done for evaluating employees on regular basis To detect weak areas of employees and get them trained To train and coach staff according to standards of services providing to guests To monitor and resolve problems To promote employees whose performance is up to the mark Increase in salaries is done For improving understanding of organizational goals Means to ensure that organizational goals are being met To establish new performance standard and reviewing performance

PERFORMANCE MANAGEMENT PROCESS:

Conduct job analysis Set performance standards Appraise performance Evaluate employees Give feedback to employees Give rewards and recognition Developmental plans

1. CONDUCT JOB ANALYSIS :

First step of performance management process is to conduct job analysis, its done on the basis of activities, tasks, products, services and processes. Specific knowledge, skills 8

and abilities are also required. As we are explaining the performance management system of Ramada hotel so according to human resource director specialized job descriptions are made in order to align them as organizational goals and personal goals together .this strategic aligning is done by job analysis. Job analysis is done basically by variety of tools, interviews and questionnaires.

2. SET PERFORMANCE STANDARDS :

As described earlier that job analysis is done in order to set performance standards. The hotel industry is basically service industry. There customers are called guests and hospitality factor is the prime factor. The perspective of setting performance standards is basically completing industrial peace and give best services to guests. Performance standards are set differently for newcomers and old employees. Probationary performance standards are set for employees in probation period and permanent employees have some different standards.

3. APPRAISE PERFORMANCE:
Performance appraisal is done after setting performance standards. Two types of employees are appraised in hotel ramada. i. ii. Employees on probation period. Permanent employees

Employees who are on probation periods are appraised every month. On other side the employees who are permanent are appraised and evaluated biannually after every six months appraisal is done. Performance is judged by department head by observing them and by their quality of tasks performed. While appraisals are done the employee is sitting with his department head and human resource director. Employee is allowed to communicate whatever problems he has not only during appraisals but also in daily routine

4. EVALUATION OF EMPLOYEES:
Evaluation is done after appraising the employees. All employees are evaluated in ramada on their tasks performed that how well they have performed in comparison with others. Evaluation is done on the basis of ksaos and these are taken from the job analysis. Evaluation is also done for the sake that whether performance standards have been met or not. Also p decisions are made in evaluation process. As merit increase and promotions etc. Are decided according to evaluation here. 9

5. FEED BACK TO EMPLOYEES:

This is the most important part of performance management system. According to human resource director of ramada the feedback is given after appraising employees. All the strategic goals are discussed along with strengths and weaknesses of the employees. As employees are the valuable asset of our organization so they are treated very well. No negative feedback is given .as our hotel have open door policy so there is no problem in giving feedback and then by employee response over that feedback. FEEDBACK is given so that employees may understand that where they excel and where they lack.

6. REWARDS AND RECOGNITION:

After giving feedback reward and recognitions are done. In hotel ramada, hiring on senior level is disliked this means that they promote their employees on annual basis and also biannual basis merit increases are done. Rise in pay scale and fringe benefits are given as rewards. Thus by giving the rewards employee motivation and loyalty has been increased. As in march 82 employees were given rewards, some as pay rise and some as promotions and others as merit increase . Also rewards are given in forms of bonuses which are purely based on performance of employees.

7. DEVELOPMENTAL PLANS:
This is also a part of performance management system. Developmental plans are basically made for the betterment of employees. Also to make them more goal oriented and self-motivated and directed on the basis of discussion among managers and employees and the developmental plans are constructed. Training and development is also done on this basis but these are made in hotel Ramada not only by employee recommendation but also by monitoring employees and also those employees who are working in probationary period are assisted by some senior and than his/her developmental plan is made according to the recommendation of senior employee.

OR

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TRAITS OF THE BEST PERFORMANCE MANAGEMENT SYSTEMS

Performance management is a daily supervisory responsibility and integral to management. If proper goal setting, coaching and feedback are done periodically, then the results of the performance evaluation will not be a surprise. Supervisors understand and communicate how the goals of the organization directly impact the employee's job and performance. Supervisors see performance appraisal, training and development and career pathing as interrelated and essential for the organization's success. High performance is rewarded appropriately. Mediocre performance is not rewarded. Good managers are honest, fair and caring with all employees. They remember to listen and promote 2-way communications. Good managers know that turnover costs are high. They know that to retain employees, development and training are essential. Supervisors understand that following the policies and guidelines for performance management is critical for successful defense in a legal setting. Supervisors use the same process for all employees. Job content is used in developing goals and evaluating performance. Evaluations are behavior oriented and not personality trait oriented. Employees are given the right to respond to the evaluation in writing and both the supervisor and employee sign the final copy. Confidentiality is respected

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PERFORMANCE APPRAISAL BIASES:

Managers commit mistakes while evaluating employees and their performance. Biases and judgment errors of various kinds may spoil the performance appraisal process. Bias here refers to inaccurate distortion of a measurement. These are: First impression (primacy effect): raters form an overall impression about the ratee on the basis of some particluar characteristics of the ratee identified by them. The identified qualities and features may not provide adequate base for appraisal. Halo effect: the individuals performance is completely appraised on the basis of a perceived positive quality, feature or trait. In other words this is the tendency to rate a man uniformly high or low in other traits if he is extra-ordinarily high or low in one particular trait. If a worker has few absences, his supervisor might give him a high rating in all other areas of work. Horn effect: the individuals performance is completely appraised on the basis of a negative quality or feature perceived. This results in an overall lower rating than may be warranted. he is not formally dressed up in the office. He may be casual at work too! Excessive stiffness or lenience: depending upon the raters own standards, values and physical and mental makeup at the time of appraisal, ratees may be rated very strictly or leniently. Some of the managers are likely to take the line of least resistance and rate people high, whereas others, by nature, believe in the tyranny of exact assessment, considering more particularly the drawbacks of the individual and thus making the assessment excessively severe. The leniency error can render a system ineffective. If everyone is to be rated high, the system has not done anything to differentiate among the employees. Central tendency: appraisers rate all employees as average performers. That is, it is an attitude to rate people as neither high nor low and follow the middle path. For example, a professor, with a view to play it safe, might give a class grade near the equal to b, regardless of the differences in individual performances. Personal biases: the way a supervisor feels about each of the individuals working under him whether he likes or dislikes them - as a tremendous effect on the rating of their performances. Personal bias can stem from various sources as a result of information obtained from colleagues, considerations of faith and thinking, social and family background and so on. Spillover effect: the present performance is evaluated much on the basis of past performance. the person who was a good performer in distant past is assured to be okay at present also. Recency effect: rating is influenced by the most recent behavior ignoring the commonly demonstrated behaviours during the entire appraisal period.

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Stereotyping: when you judge a group of people who are different from you based on your own and/or others opinions and/or encounters.

HOW RAMADA AVOID PERFORMANCE APPRAISAL BIASNES:

They prepare for the performance appraisal in advance. The appraisal cover all attributes that they feel need a rating. Both management and employees are aware that they are scheduling rating appointments. Managers take enough time to thoroughly complete each appraisal. They pick a rater that works closely with the employee. A rating manager who consistently works with or supervises the employee has experience with the employee attributes listed on the appraisal. All department managers have been established the morning briefing gaining an enviable reputation for clarity, and relevance. They standardize the meaning and level of each attribute with all rating managers. They also train rating managers with techniques that minimize personal bias and train raters give bad news because sometime a manager will inflate attribute ratings because he doesn't want to tell the employee that she performs poorly. Their manager minimize the impact of the criticism by following up with a positive aspect of the employee. They follow up with constructive coaching. Now it is easier for the rating mangers to give low ratings if they know they'll be able to help the employees improve. They also hire female hr employee so that other females colleagues can easily discuss their issues. They observe employees on daily basis and do ask about their queries as well.

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