ITC HOTELS MANAGEMENT CONTROL SYSTEMS
Roll Number 11215, 11222, 11236,11245,11267
Agenda
Introduction to ITC ITC Hotels
STRATEGIC BUSINESS UNIT ITC FIVE BRANDS OF HOTELS Organizational Structure Communication Performance Management Six sigma control systems Key performance indicators CPM model Balanced Score Card Responsibility centres
Conclusion
Introduction to ITC
ITC is one of India's Indias leading company Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine The ancient Imperial Tobacco Company of India Limited is ITC Limited today ITC posted its face as sector leader in its traditional businesses and spread over more than 60 locations across India
Introduction to ITC
(contd)
Segments
Cigarettes Hotels Paperboards & Specialty Papers Packaging, Agri-Business Packaged Foods & Confectionery Information Technology Branded Apparel Personal Care Stationery Safety Matches and Other FMCG products.
ITC Hotels
STRATEGIC BUSINESS UNIT ITC FIVE BRANDS OF HOTELS
ITC Hotels - Luxury Collection are super deluxe and premium hotels, located at strategic business and leisure locations. ITC-Welcomgroup Sheraton Hotels offer warm, comforting services to the global traveller and a chance to connect. WelcomHotels offer five-star hospitality for the discerning business and leisure traveller. Fortune Hotels offer full service properties all over India, including smaller towns and cities, ideal for the budget traveller. WelcomHeritage brings together a chain of palaces, forts, havelis and resorts that offer a unique experience.
ITC Hotels
ITC Hotels follows a functional organizational structure. This type of structure involves a manager who brings specialized knowledge to bear on decisions related to a specific function, as contrasted with the general-purpose manager who lacks that specialized knowledge. A skilled marketing manager and a skilled production manager are likely to make better decisions in their fields than would a manager responsible for both functions
Organizational Structure
GENERAL MANAGER
F&B MANAGER
EXECUTIVE CHEF
FRONT OFFICE MANAGER
EXECUTIVE HOUSEKEEPER
CHIEF ENGINEER
SALES MANAGER
UNIT FINANACIAL CONTROLLER
HUMAN RESOURCE MANAGER
ASSISTANT F&B MANAGER
SENIOR SOUS CHEF
ASSISTAN FRONT OFFICE MANAGER
ASSISTANT HOUSEKEEPER
ASSISTANT CHIEF ENGINEER
ASSISTANT SALES MANAGER
ASSISTANT FINANCIAL CONTROLLER
ASSISTANT HR MANAGER
F&B EXECUTIVE
JUNIOR SOUS CHEF
FRONT OFFICE EXECUTIVE
HOUSEKEEPING EXECUTIVE
SALES EXECUTIVE
HHR EXECUTIVE
ASSISTANT MASTER CHEF
MANAGER LEARNING SERVICES
Performance Management
Mechanism that improves the likelihood that the organization will implement the strategies successfully Each professional is a cost to company so ROI should be calculated wisely
Time to time Performance appraisal Follows yearly appraisal system JOB KNOWLEDGE SKILLS CO-OPERATION RESPONSIBILITY ATTITUDE TOWARDS WORK INITIATIVE EFFICIENCY ATTENDANCE PUNCTUALITY DISCIPLINE
The various attributes on which they are rated are:
Performance Management(Contd.)
The employee is scored on a likert scale of 1 to 5 Score for each attribute : weight of attribute * score on likert scale Actions are taken and ratings are provided to the concerned employee. It is known as FACTOR RATING METHOD
Six sigma control systems
A separate department has been set up in each of its hotels called the six Sigma Assurance Department. The department comprises of 2 to 3 people and focuses on streamlining hotel processes. Ensure performance by
WOW
ratios Model Areas Process Line Charts
Key performance indicators
Figures are compared with the previous period and analysed
Hotel/rooms
in operation Hotels/rooms under development (pipeline) Occupancy RevPAR(Revenue Per Available Room) Service cost per room
Planning and Budgeting
The following business metrics drive the budget process at ITC:
Revenue Quotas Planned head count company wide Planned headcount by group/dept. Marketing spend Overhead rates Cost budget per dept. Fixed compensation plans Variable compensation plans Research and development investments Bottom Up Top Down
Two Approaches
CPM model
Balanced Score Card
ITC hotels use a three year balanced score card there are five perspectives
Customer
Perspective Internal Processes Perspective Financial Perspective Employee Perspective Social perspective
Responsibility centres
Cost (Expense centers)
Engineered Cost Centres
Housekeeping Laundry Engineering & Maintenance Human Resources, Legal Training, Accounting
Discretionary Cost Centres
Revenue Centre
Rooms department/division Sales/Marketing departments Reservation department
Profit centers
General
Manager /Head of ITC hotels Food and Beverages (F & B) department/manager restaurant kitchen (food production department)
Investment Centre (example)
if
the General Manager of an existing ITC Maurya Sheraton hotel in Delhi oversees the investment decision for expanding the existing hotel or opening a new hotel, and then he becomes an investment center.
Advantages & Problems of Responsibility Centers
Adverse performance identified Morale is high Greater job satisfaction and motivation
Quick reporting of performance
Chance to gain management expertise
Problems Controllability Involvement of Management Loss of ethical behavior
Conclusion
New KPIs
Apart from the existing KPIs, following can be used by ITC Hotels for a better performance management:
F&B Revenue per night Revenue per staff member Expenditure per staff member Debts per room Energy expenditure per night
In addition, the company can give special focus to guest satisfaction, staff efficiency and quality leisure services. Budgeting Improvements
Zero-base budgeting