Performance Management Process Of Ramada

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Performance management process of RamadaSubmitted to: Mam SaimaCourse instructor: Performance Management SystemBBA 7Submission date: 7th may 2013

Group members :Ammara habibHoorulain siddiquiJansher junejoMaryam mukhtarMehwish brohiMir mansha ali2

PrefaceDepartment of management sciences, the Bahria university, Karachi campus has always beenadmirable in its efforts to equip the future executives with arms of creativity, flexibility andadaptability to meet the challenges offered by fast changing business environment. To achievethe above goals the department is providing both text and practical knowledge to its studentswith its available resources. Text knowledge is very well transferred to the students within thepremises of the department; practical knowledge requires the kind co-operation of variousbusiness 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 managementsciences. We have tried our best to make it analytical as well as informative.May Allah help us in this world. (ameen)3

AcknowledgementWe owe our heartfelt thanks to god almighty, who enabled us to discharge such responsibilitywith due care and caution. Life is a learning experience”. We have learned the validity of thisstatement time and time again. Every time we think we know something, we look back a yearlater and realize how little we know and how much we have learned. This literature reviewreport has convinced us again, not in the learning but also in terms of the vast team of talentedpeople that take part in creating this report. We believe each person plays a piece of a puzzle tomake the complete picture, some pieces are bigger than others, but without anyone piece thepicture would not be completed.Tribute goes to our worthy teachers the main source of the enlightenment of our minds and thedevelopment of our natural potential. We are indebted to our honorable, kind and supportiveteacher Mam Saima Zia who made our concepts, regarding the analysis very palpable. Heguided 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 manyother 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.4

ContentsOUR MISSION: . 6We will be the global leader in travel accommodations welcoming our guests to iconic brands andvacation destinations through our signature count on me! Service. . 6RAMADA INTERNATIONAL: . 6DERIVATION: . 6LOCATION: . 6HOTEL TIERS: . 6OUR CULTURE: . 7OUR CORE VALUES: . 7PERFORMANCE MANAGEMENT SYSTEM : . 7PERFORMANCE MANAGEMENT SYSTEM ACCORDING TO RAMADA HOTEL: . 7OBJECTIVES OF PERFORMANCE APPRAISAL IN RAMADA HOTEL: . 8PERFORMANCE MANAGEMENT PROCESS: . 8TRAITS OF THE BEST PERFORMANCE MANAGEMENT SYSTEMS . 11PERFORMANCE APPRAISAL BIASES:. 12HOW RAMADA AVOID PERFORMANCE APPRAISAL BIASNES: . 135

OUR MISSION:We will be the global leader in travel accommodations welcoming our guests to iconic brandsand vacation destinations through our signature count on me! Service.RAMADA INTERNATIONAL:Ramada international is the company that owns, operates, and franchises hotels using theramada name outside of the united states and canada. Ramada international was formerlyowned by marriott international, a competitor of cendant, which owned ramada in the unitedstates 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 sameownership, ramada and ramada international remained separate entities. In 2006, the hotelsand 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 totemporary open air structures called ramadas that were made of brush or branchesAnd were popular in arizona during harvest time.LOCATION:Our ramada plaza karachi airport hotel near jinnah international airport is close to downtown and lyariexpressway. Begin your mornings with free breakfast to refuel for the day ahead of you. Take advantageof thoughtful conveniences like airport shuttle, free internet access, guest laundry, 32-inch flat-screentvs and free parking. Our hot tub, sauna, gym and outdoor pool provide you with plenty of opportunitiesto unwind. Handicapped-accessible and non-smoking rooms are available.HOTEL TIERS:The chain offers different hotel "tiers" based on price and services offered. Ramada limited—budget-oriented properties, typically with no on-site restaurant, though a pooland deluxe continental breakfast are standard. Some ramada limited consist of rooms mixed withsuites, or are entirely suites.Ramada inn/inn & suites/suites—full-service properties with swimming pools, exercise rooms, roomservice, and free breakfast items. If there is no restaurant on site, a convenience store is usually onthe 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 fitness6

centers. Many of the international hotels also offer suites in addition to rooms, and a few have aresort and hotel together.Ramada plaza—lower "upscale" properties offering business centers, full-restaurants, enhancedroom service, and concierges at many locations.OUR CULTURE:We are striving to become the widely-recognized service leader in the hospitality industry. We have aservice-oriented culture in which each associate strives to be responsive, be respectful and deliver greatexperiences 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 lifecrumble.Respect everyone, everywhere: whether we are working with a customer, a hotel franchisee, asenior executive or a security guard - respect knows no boundaries.Provide individual opportunity and accountability: as leaders, we need to actively includediversity 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 affiliateswith 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 thecommunities in which we operate. But the Ramada philosophy is that is not enough. We need togive 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 indiviualsand teams through training and counseling .also the performance management system should bealigned 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 individual’sand teams through training and counseling them. According to Ramada’s mission they have tocomplete industrial peace and staff should be motivated and directed towards giving best servicesand serving the guests and this is done by performance appraisals coming under heading ofperformance management system.7

OBJECTIVES OF PERFORMANCE APPRAISAL IN RAMADA HOTEL: Grow salesReduce costs in the organizationStop project overrunsAligns the organization directly behind the Ceo's goalsOptimizes incentive plans to specific goals for over achievement, not just business as usualImproves employee engagement because everyone understands how they are directlycontributing to the organizations high level goalsCreate transparency in achievement of goalsHigh confidence in bonus payment processProfessional development programs are better aligned directly to achieving business level goalsFlexible, responsive to management needsDisplays data relationshipsIt is given to keep employees motivated.Also its given to keep employees directedIts done for evaluating employees on regular basisTo detect weak areas of employees and get them trainedTo train and coach staff according to standards of services providing to guestsTo monitor and resolve problemsTo promote employees whose performance is up to the markIncrease in salaries is doneFor improving understanding of organizational goalsMeans to ensure that organizational goals are being metTo establish new performance standard and reviewing performancePERFORMANCE MANAGEMENT PROCESS: Conduct job analysisSet performance standardsAppraise performanceEvaluate employeesGive feedback to employeesGive rewards and recognitionDevelopmental plans1. CONDUCT JOB ANALYSIS :First step of performance management process is to conduct job analysis, it’s done onthe basis of activities, tasks, products, services and processes. Specific knowledge, skills8

and abilities are also required. As we are explaining the performance managementsystem of Ramada hotel so according to human resource director specialized jobdescriptions are made in order to align them as organizational goals and personal goalstogether .this strategic aligning is done by job analysis. Job analysis is done basically byvariety of tools, interviews and questionnaires.2. SET PERFORMANCE STANDARDS :As described earlier that job analysis is done in order to set performance standards. Thehotel industry is basically service industry. There customers are called guests andhospitality factor is the prime factor. The perspective of setting performance standardsis basically completing industrial peace and give best services to guests. Performancestandards are set differently for newcomers and old employees.Probationary performance standards are set for employees in probation period andpermanent employees have some different standards.3. APPRAISE PERFORMANCE:Performance appraisal is done after setting performance standards. Two types ofemployees are appraised in hotel ramada.i.ii.Employees on probation period.Permanent employeesEmployees who are on probation periods are appraised every month. On other side theemployees who are permanent are appraised and evaluated biannually after every sixmonths appraisal is done. Performance is judged by department head by observing themand by their quality of tasks performed. While appraisals are done the employee is sittingwith his department head and human resource director. Employee is allowed tocommunicate whatever problems he has not only during appraisals but also in daily routine4. EVALUATION OF EMPLOYEES:Evaluation is done after appraising the employees. All employees are evaluated inramada on their tasks performed that how well they have performed in comparisonwith others. Evaluation is done on the basis of ksao’s and these are taken from the jobanalysis. Evaluation is also done for the sake that whether performance standards havebeen met or not. Also p decisions are made in evaluation process. As merit increase andpromotions etc. Are decided according to evaluation here.9

5. FEED BACK TO EMPLOYEES:This is the most important part of performance management system. According tohuman resource director of ramada the feedback is given after appraising employees.All the strategic goals are discussed along with strengths and weaknesses of theemployees. As employees are the valuable asset of our organization so they are treatedvery well. No negative feedback is given .as our hotel have open door policy so there isno 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 wherethey lack.6. REWARDS AND RECOGNITION:After giving feedback reward and recognitions are done. In hotel ramada, hiring onsenior level is disliked this means that they promote their employees on annual basisand also biannual basis merit increases are done. Rise in pay scale and fringe benefitsare given as rewards. Thus by giving the rewards employee motivation and loyalty hasbeen increased. As in march 82 employees were given rewards, some as pay rise andsome as promotions and others as merit increase . Also rewards are given in forms ofbonuses which are purely based on performance of employees.7. DEVELOPMENTAL PLANS:This is also a part of performance management system. Developmental plans arebasically made for the betterment of employees. Also to make them more goal orientedand self-motivated and directed on the basis of discussion among managers andemployees and the developmental plans are constructed. Training and development isalso done on this basis but these are made in hotel Ramada not only by employeerecommendation but also by monitoring employees and also those employees who areworking in probationary period are assisted by some senior and than his/herdevelopmental plan is made according to the recommendation of senior employee.OR10

TRAITS OF THE BEST PERFORMANCE MANAGEMENT SYSTEMS Performance management is a daily supervisory responsibility and integral to management. Ifproper goal setting, coaching and feedback are done periodically, then the results of theperformance evaluation will not be a surprise.Supervisors understand and communicate how the goals of the organization directly impact theemployee's job and performance.Supervisors see performance appraisal, training and development and career pathing asinterrelated 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 andpromote 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 managementis 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 supervisorand employee sign the final copy.Confidentiality is respected11

PERFORMANCE APPRAISAL BIASES:Managers commit mistakes while evaluating employees and their performance. Biases and judgmenterrors of various kinds may spoil the performance appraisal process. Bias here refers to inaccuratedistortion of a measurement. These are: First impression (primacy effect): raters form an overall impression about the ratee on the basisof some particluar characteristics of the ratee identified by them. The identified qualities andfeatures may not provide adequate base for appraisal. Halo effect: the individual’s performance is completely appraised on the basis of a perceivedpositive quality, feature or trait. In other words this is the tendency to rate a man uniformly highor low in other traits if he is extra-ordinarily high or low in one particular trait. If a worker hasfew absences, his supervisor might give him a high rating in all other areas of work. Horn effect: the individual’s performance is completely appraised on the basis of a negativequality or feature perceived. This results in an overall lower rating than may be warranted. “he isnot 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 physicaland mental makeup at the time of appraisal, ratees may be rated very strictly or leniently. Someof the managers are likely to take the line of least resistance and rate people high, whereasothers, by nature, believe in the tyranny of exact assessment, considering more particularly thedrawbacks of the individual and thus making the assessment excessively severe. The leniencyerror can render a system ineffective. If everyone is to be rated high, the system has not doneanything to differentiate among the employees. Central tendency: appraisers rate all employees as average performers. That is, it is an attitudeto 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 thedifferences 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 fromcolleagues, 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 commonlydemonstrated behaviours during the entire appraisal period.12

Stereotyping: when you judge a group of people who are different from you based on your ownand/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 thatthey feel need a rating. Both management and employees are aware that they are schedulingrating appointments. Managers take enough time to thoroughly complete each appraisal. They pick a rater that works closely with the employee. A rating manager who consistentlyworks with or supervises the employee has experience with the employee attributes listed onthe appraisal. All department managers have been established the morning briefing gaining an enviablereputation 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 perso

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, . and serving the guests and this is done by performance appraisals coming under heading of performance management system. 8 OBJECTIVES OF PERFORMANCE APPRAISAL .

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