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A PROJECT REPORT ON MANAGEMENT CONTROL SYSTEM AT ITC

Subject: - Management Control System (MCS)

Prepared By: (1) Alay H. Desai (1038) (2) Mitesh Rajput (1044) (3) Nimesh Chavda (1049)

Guided By:Mrs. Chetna Makwana NCM,Bharuch

Narmada College of Management, Bharuch

Gujarat Technological University, Ahmedabad MBA April-2012

Contents
CHAPTER 1 .................................................................................................................................................... 4 ITC LIMITED ................................................................................................................................................... 4 INTRODUCTION ......................................................................................................................................... 5 Organizational Structure ........................................................................................................................... 6 Chairman ............................................................................................................................................... 6 Executive Director ................................................................................................................................. 6 Non-Executive Director ......................................................................................................................... 7 Divisional / SBU Chief Executive Officer (CEO) ..................................................................................... 7 Control System .......................................................................................................................................... 7 ROLES OF VARIOUS ENTITIES ................................................................................................................ 7 Advantage ............................................................................................................................................. 8 Compensation Management and Remuneration System......................................................................... 8 Remuneration committee..................................................................................................................... 8 Composition .......................................................................................................................................... 8 Remuneration of Directors ................................................................................................................... 8 Employee Stock Option Schemes.......................................................................................................... 9 Service Contracts, Severance Fee and Notice Period ........................................................................... 9 MANAGEMENT COMMUNICATION SYSTEM........................................................................................... 10 Policies on human Rights .................................................................................................................... 10 Policy to Ensure Respect for Human Rights Policy across the Supply Chain ...................................... 11 Policy to Prevent Discrimination at Workplace .................................................................................. 12 Policy on Freedom of Association ....................................................................................................... 13 Policy on Information and Consultation on Changes.......................................................................... 13 CHAPTER 2 .................................................................................................................................................. 15 ITC HOTELS .................................................................................................................................................. 15 STRATEGIC BUSINESS UNIT “ITC – FIVE BRANDS OF HOTELS” ................................................................ 16 ITC HOTELS- Luxury Collection, Organizational Structure ...................................................................... 16 The organizational structure at ITC Hotels ............................................................................................. 17 COMMUNICATION .................................................................................................................................. 18 PERFORMANCE MANAGEMENT AT ITC HOTELS ..................................................................................... 18 MANAGEMENT CONTROL IMPLICATIONS .............................................................................................. 20

................................................................... 20 1) WOW Ratios .............................................................................................................. 21 2) Model Areas ........................................................................................................................................................................................................... 22 ......................... 21 AWARDS .........MANAGEMENT STYLE AND SIX SIGMA CONTROL SYSTEMS ......................................................................................................................................................... 21 Culture and the Management Style ..................................... 21 3) Process Line Charts ...................................................................................................

CHAPTER 1 ITC LIMITED .

Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine. Spanning the network the company has 11 Subsidiaries. Limited in 1974.T. the Packaging & Printing Business was set up in 1925. ITC also ranks among India's top 10 `Most Valuable (Company) Brands'. The ancient Imperial Tobacco Company of India Limited is ITC Limited today. 1910. in a study conducted by Brand Finance and published by the Economic Times. which was incorporated in August 24. It is rated among the World's Best Big Companies.C. Agri-Business Packaged Foods & Confectionery Information Technology Branded Apparel Personal Care Stationery Safety Matches and Other FMCG products. The growth after long way in its journey. . among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC has commitment with the business segments of            Cigarettes Hotels Paperboards & Specialty Papers Packaging. The Company's ownership progressively Indianised and the name of the Company was changed to I. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing environment. 3 JV Companies and 2 Associate Companies.INTRODUCTION ITC is one of India's foremost private sector company. As a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house. ITC posted its face as sector leader in its traditional businesses and spread over more than 60 locations across India.

an Executive Director is in the nature of a Managing Director for those businesses and functions reporting to him. inter alia. As an Executive Director accountable to the Board for a wholly owned subsidiary or its wholly owned subsidiary.Organizational Structure Board of Directors Audit Committee Compensation Committee Nominations Committee Investor Services Committee Corporate Management Committee Divisional/Strategic Business Unit (SBU) Management Committees. for ensuring that all relevant issues are on the agenda and for ensuring that all Directors and CMC members are enabled and encouraged to play a full part in the activities of the Board and the CMC. Executive Director The Executive Directors. In the context of the multi-business character of the Company. He is also responsible for the balance of membership of the Board. respectively. . EHS. Communications. contribute to the strategic management of the Company’s businesses within Board approved direction / framework. He presides over General Meetings of Shareholders. each headed by a Divisional/SBU Chief Executive Businesses include: FMCG. He keeps the Board informed on all matters of importance. Legal. Executive Directors assume overall responsibility for the strategic management including governance processes and top management effectiveness for businesses / functions reporting to them. he acts as the custodian of ITC’s interests and is responsible for its governance in accordance with the charter approved by the Board. Accounting. as members of the CMC. subject to Board and Shareholder approvals. Hotels. Paperboards. each headed by a HOD Corporate Functions include: Planning and Treasury. His primary role is to provide leadership to the Board and the CMC for realizing Company goals in accordance with the charter approved by the Board. Internal Audit and Information Technology Chairman The Chairman of ITC is the Chief Executive of the Company. He is responsible. Specialty Papers & Packaging and Agri-Business Corporate Functions. He is the Chairman of the Board and the CMC. Human Resources. for the working of the Board and the CMC. Secretarial.

performance. its wholly owned subsidiaries and their wholly owned subsidiaries. Corporate Management Committee (CMC) The primary role of the CMC is strategic management of the Company’s businesses within Board approved direction / framework. including Independent Directors. As trustees. also periodically reviews its role. The CMC operates under the strategic supervision and control of the Board. The Board also provides direction and exercises appropriate control to ensure that the Company is managed in a manner that fulfils stakeholders’ aspirations and societal expectations. The Board. play a critical role in imparting balance to the Board processes by bringing an independent judgment on issues of strategy. . resources. The Board sets strategic goals and seeks accountability for their fulfillment. Control System Strategic supervision BOARD OF DIRECTORS Strategic management Corporate Management Committee Executive management Divisional / Strategic Business Unit (SBU) Chief ROLES OF VARIOUS ENTITIES Board of Directors (Board) The primary role of the Board is that of trusteeship to protect and enhance shareholder value through strategic supervision of ITC. as part and parcel of its functioning. the Board ensures that the Company has clear goals relating to shareholder value and its growth.Non-Executive Director Non-Executive Directors. standards of Company conduct etc. Divisional / SBU Chief Executive Officer (CEO) The Divisional / SBU CEO for a business has the overall executive responsibility for its day-to-day operations and provides leadership to the DMC / SBU MC in its task of executive management of the business.

under the nomenclature 'Compensation Committee'. Advantage The three-tier governance structure ensures that: (a) Strategic supervision (on behalf of the shareholders). efficiency and effectiveness of the business. The recommendations of the Compensation Committee are considered and approved by the Board subject to the approval of the Shareholders. focuses on enhancing the quality. thereby sharpening accountability of management. Composition The Compensation Committee presently comprises five Non-Executive Directors. This Committee also has the responsibility for administering the Employee Stock Option Schemes of the Company. The names of the members of the Compensation Committee. Remuneration of Directors Remuneration of Chairman and other Executive Directors is determined by the Compensation Committee comprising only Non-Executive Directors. and (c) Executive management of a Division or Business. (b) Strategic management of the Company. free from collective strategic responsibilities for ITC as a whole. four of whom are Independent Directors. recommends to the Board the compensation terms of Executive Directors and the senior most level of management immediately below the Executive Directors. uncluttered by the day-to-day tasks of executive management. can be conducted by the Board with objectivity. The Chairman of the Committee is an Independent Director. The Chairman and Executive Directors are entitled to Performance Bonus for each financial year up to a maximum of 200% and 150% of their consolidated salary. are provided under the section 'Board of Directors & Committees' in the Report and Accounts.Divisional Management Committee (DMC) / SBU Management Committee (SBU MC): The primary role of the DMC / SBU MC is executive management of the Divisional / SBU business to realize tactical and strategic objectives in accordance with Board approved plan. Compensation Management and Remuneration System Remuneration committee The Remuneration Committee of the Board. inter alia. remains focused and energised. including its Chairman. . being free from involvement in the task of strategic management of the Company.

the quantum of which is determined by the Board. as determined by the Board. since they already have a Service Contract with the Company. ITC also empowers the employees with the following options like:  Gives them an option to switch division if the person can perform better in some other division. There is no separate provision for payment of severance fee under the resolutions governing the appointment of Executive Directors who have all been drawn from amongst the management cadre.80.for attending each meeting of the Board. 2010 to the Bonus share issue. are presently 20. and as may be determined by the Board on the recommendation of the Compensation Committee. Nominations Committee and Sustainability Committee and 5. A separate Service Contract is not entered into by the Company with those elevated to the Board from the management cadre. inter alia. within the limit approved by the Shareholders. Audit Committee.individually. .respectively.92. in the ratio of 1 Bonus share for every existing 1 Ordinary share.000/. Service Contracts. up to a maximum of 6. 1999. Non-Executive Directors are also entitled to coverage under Personal Accident Insurance. Compensation Committee. Pursuant to the Shareholders' approval on 23rd July. consequent to which 1. adjustment was made to the outstanding Options with respect to the number of Options and the exercise price. Severance Fee and Notice Period The appointment of the Executive Directors is governed by resolutions passed by the Board and the Shareholders of the Company.600 Options during the financial year to the eligible employees of the Company and some of its subsidiary companies. The statutory provisions will however apply.432 Bonus Options were allocated during the year. Non-Executive Directors are entitled to remuneration by way of commission for each financial year.30. which cover the terms and conditions of such appointment read with the service rules of the Company. in accordance with the Employee Stock Option Schemes of the Company read with the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines. 00.000/.000/for each meeting of the Investor Services Committee. based on qualitative and quantitative assessment of Company performance. on Company performance and regulatory provisions and is payable on a uniform basis to reinforce the principle of collective responsibility. Non-Executive Directors are also entitled to sitting fees for attending meetings of the Board and Committees thereof. Employee Stock Option Schemes The Company granted 42. a notice of one month is required to be given by a Director seeking to vacate office and the resignation takes effect upon the expiration of such notice or its earlier acceptance by the Board. The sitting fees. In terms of the Articles of Association of the Company. NonExecutive Directors' commission is determined by the Board based. as approved by the Shareholders.

 MANAGEMENT COMMUNICATION SYSTEM ITC management communication system that it follows across the groups to avoid asymmetry of information within the group. At the end of the year the individual's performance is assessed against the objectives set. assistance for further education/self development etc.    Company also encourage cross business movements for the capable employee. medical assistance for self and family. race. All managers are members of ITC's Retirement Funds. ITC ensures that it upholds the spirit of human rights as enshrined in existing international standards such as the Universal Declaration and the Fundamental Human Rights Conventions of the ILO. gender. The rating is determined by the manager's boss and endorsed by his boss. leave travel assistance. A constant focus is given on the career development of the employees. Therefore. managers are provided with company maintained cars and the facility of a club membership for business purposes. managers are provided with quality accommodation. This it has a very robust and a clear cut defined communication strategy that it follows: Policies on human Rights ITC believes that all its employees must live with social and economic dignity and freedom. The individual agrees to performance objectives at the beginning of the year with his/her superiors. Other benefits include the facility of holiday homes. etc. There is no age barrier when it comes to growth. These objectives naturally flow from the objectives of the unit/business. They have a proper performance system in place . the Pension Scheme being one of the most attractive in the country. economic status or religion. two individuals are involved in assessing a manager's performance The appraisal process also gives the individual an opportunity to share in a formal manner his/her own career aspirations and what the individual needs from the organization to enhance Their compensation package is very comprehensive . At middle and senior levels. The appraisal attaches as much importance to ''how'' results were achieved as to the results themselves. it is the individual's responsibility to ensure he/she enhances his/hers competencies to shoulder higher responsibilities. regardless of nationality.the organization provides opportunities for learning and growth. In the management of its businesses and operations therefore. .Apart from the monetary component which comprises Consolidated Salary and Supplementary Allowance.The cornerstone of the performance management system is the Appraisal System.

technology. are shared across the entire supply chain because ITC is committed to the importance of a socially responsible and accountable supply chain. Implementation The Corporate Human Resources function of ITC is responsible for the Human Rights Policy design. Common values. A very small proportion of ITC's business consists of supply chains comprising local vendors and suppliers. relating to human rights performance. equipment and inputs from reputed international and Indian manufacturers and suppliers.Policy ITC upholds international human rights standards. machinery and equipment are sourced from reputed and globally benchmarked suppliers/vendors who are expected to follow internationally accepted norms and standards on human rights. Monitoring & Audit The assessment procedures for different constituents of this policy are defined against each specific policy. ITC's major businesses are vertically integrated across several Divisions. Being a major agri-based company. implementation and updation. The policy framework for such entities is enunciated separately in 'Policy to Ensure Respect for Human Rights across the Supply Chain'. Common values relating to human rights performance are shared across this supply chain. The policy is implemented at all locations of ITC through a set of separate policies and procedures covering each of the main constituents of human rights applicable at the workplaces. For all its operations. does not condone human rights abuses. and creates and nurtures a working environment where human rights are respected without prejudice. the agriculture sector is a major supplier of inputs for its operations. 4. Consideration of Human Rights Impacts Across the Supply Chain As a large and multi-product enterprise whose products are benchmarked nationally and internationally. Policy to Ensure Respect for Human Rights Policy across the Supply Chain ITC provides products and services of superior quality and value by sourcing its technologies. . A substantial part of the supply chain is therefore internal through strategic backward linkages. ITC's main supply chains can be grouped as follows: 1. 2. Policy ITC nurtures an internal working environment which respects human rights without prejudice. The bulk of agricultural commodities are procured from state controlled trading platforms and the open market. 3.

The policy is communicated internally through policy manuals and intranet portals. age. Monitoring & Audit ITC has established a policy intent for mapping/monitoring progress and performance of existing and potential vendors/suppliers on human rights performance. pari passu. access to training. and externally by the HR personnel of concerned units to vendors/suppliers. religious. race. Policy ITC's approach to its human resources is premised on the fundamental belief in fostering meritocracy in the organization which. compliance of the policy is ensured through a robust grievance handling procedure and the presence of a union that brings violations to the notice of the unit HR head. A discrimination-free workplace for employees provides the environment in which diverse talents can bloom and be nurtured. Implementation The policy is communicated to all employees through induction programmes. ancestry. ITC's complaints resolution procedure is premised on the freedom of employees to approach higher officials beyond his/her immediate superior. it expects its business partners to establish a human rights compliant business environment at the workplace. promotion. Implementation The responsibility for implementation of this policy rests with the Divisional Chief Executive of the concerned business and the Unit Manager. Monitoring & Auditing The accountability for the application of the non-discrimination employment policy rests with the Unit Head who reviews anti-discriminatory complaints annually or on a case-by-case basis. . compensation. The Corporate Human Resources function conducts non-discrimination reviews annually on a sample basis with unit heads and through on-site assessments. This is achieved by ensuring that a non-discrimination policy and practice is embedded across the Company in line with corporate principles and benchmarked business practices. gender. promotes diversity and offers equality of opportunity to all employees. or union organization or minority group. religion. The custodian of this policy is the head of each operational unit and Divisional Chief Executives of the respective business. For the unionized employees. ITC does not engage in or support direct or indirect discrimination in recruitment. termination or retirement based on caste. policy manuals and intranet portals.Likewise. marital status or affiliation with a political. color. disability. Policy to Prevent Discrimination at Workplace ITC acknowledges that every individual brings a different and unique set of perspectives and capabilities to the team.

policy manuals and intranet portals. The responsibility for the implementation of the policy rests with the Unit's HR Department in the case of unionized employees and with the concerned Divisional Management Committees for other employees. employees are not discriminated against for exercising this right. ITC thus harnesses the creative potential of all its employees by promoting a culture of partnerships to unleash relevant synergies between different groups of employees. Policy on Information and Consultation on Changes ITC's core values support an employee engagement process that aligns its employees with a shared vision and purpose of the Company in the belief that every individual brings a different perspective and capability to the team. Implementation Business plans are shared with employees at all units through a series of formal communication meetings. Implementation The policy is communicated to all employees through induction programmes. Compliance with the Policy is regularly monitored by Divisional and Corporate HR. Unionised employees at the concerned units are informed of all major changes well in advance through their representatives. In keeping with the spirit of this Policy. and through the intranet portals. manning norms and other productivity linked issues are carried out after discussions with the employees and the recognized unions at each location. Policy All major changes in operations involving work processes.Policy on Freedom of Association ITC's culture is characterized by cooperative relationships and high employee involvement that relies on building partnerships and interdependence. independent from supervision by the management. collective bargaining agreements and minutes from worker meetings. The custodian of this policy is the HR head of each operational unit who reports directly to Unit Head on such issues. . Policy ITC respects the employees' right to organize themselves into interest groups as initiatives of the workers. Monitoring & Audit Each ITC Unit has appropriate systems and checks to ensure compliance with the Policy and statutory provisions. sustain and strengthen harmonious employee relations in the organisation. including means for filing of grievances. The actualization of this policy is evident from the joint agreements and minutes that are signed between the union and the management. Adhering to these principles has helped build.

The Policy is actualized through consultative meetings with representatives of employees. if any.The employees are given enough time to consider the implications of change and an opportunity to discuss their apprehensions. with the management. . culminating in joint minutes/agreements. Monitoring & Auditing Compliance with the Policy is regularly monitored by the Unit Head.

CHAPTER 2 ITC HOTELS .

This type of structure involves a manager who brings specialized knowledge to bear on decisions related to a specific function. comforting services to the global traveler and a chance to connect. • ITC-Welcome group Sheraton Hotels offer warm. Second. First.STRATEGIC BUSINESS UNIT “ITC – FIVE BRANDS OF HOTELS” • ITC Hotels . ideal for the budget traveler. as contrasted with the general-purpose manager who lacks that specialized knowledge. in a functional organization there is no unambiguous way of determining the effectiveness of the separate functional managers because each function contributes jointly to the organization’s final output.Luxury Collection. the product engineering department and the sales office. Finally. including smaller towns and cities. 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. located at strategic business and leisure locations. Moreover. ITC HOTELS. . There are even a few disadvantages attached to a functional structure. • Fortune Hotels offer full service properties all over India. just as skilled higher-level managers should be able to provide better supervision of lower-level managers in the same or similar function. if the organization consists of managers in one function who report to higher-level managers in the same function who in turn. an important advantage of a functional structure is efficiency. • Welcome Heritage brings together a chain of palaces. Thus. report to still high-level managers in that function. even though it may have originated at a much lower organizational level. • Welcome Hotels offer five-star hospitality for the discerning business and leisure traveler. Organizational Structure ITC Hotels follows a functional organizational structure. there is no way of measuring what fraction of determining how much of the profit was earned respectively by the several production departments.Luxury Collection are super deluxe and premium hotels. Therefore. then a dispute between managers of different functions can be resolved only at the top. havelis and resorts that offer a unique experience. However. functional structures prevent cross-functional coordination in areas such as new product development. functional structures are inadequate for a firm with diversified products and markets. Thirdly. this problem can be eliminated by supplementing the vertical functional structure with lateral cross-functional processes such as cross-functional job rotation and teambased rewards. the skilled specialist should be able to supervise workers in the same function better than the generalist would. forts.

. namely: 1.The organizational structure at ITC Hotels The organizational structure at ITC Hotels consists of eight functional departments. Food and Beverages Production Food and Beverages Service Front Office Housekeeping Engineering’ Sales Finance Human Resource Every department has its respective head of the department (HOD) as shown in the chart below: 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 Under every department. 6. 3. who is at the top of the hierarchy. 2. 8. 4. 5. Each department has a clearly defined responsibility and thereby accountability and authority attached to it. 7. there are two to three executives who report to the supervisor above them and to the respective HODs and all the HODs report to the general manager.

that measures and rewards people to carry on tasks and targets that help the company achieve its strategy. its difficult to suggest the skills of people involved very objectively. An important role of management control systems is to motivate organizational members to attain those goals. The management realizes the importance of appraising and evaluating each employees contribution objectively. it is a service industry where the organization delivers experience. A doctor’s skill can be measured by the success ratio of operations. there needs to be proper coordination and communication among all the departments which is maintained through daily morning meetings among all the HODs and the general manager to discuss the guest feedback and daily issues. is designing a performance measurement system. but in a service unit. Each organization has a strategy and the strategy’s success depends on its soundness. Since. The performances of employees who are in constant touch with the guests are more scrutinized in behavioral aspects while those involved in providing food and beverage have a lot to do with their skills and knowledge in their area. PERFORMANCE MANAGEMENT AT ITC HOTELS Every organization has goals. two-way communication system where the flow of information is from top to bottom and from the bottom to top. Each professional working in the organization is a cost to company and return on this investment should be calculated wisely.COMMUNICATION ITC Hotels follow a participative. What needs to be done here. and hence follows an yearly appraisal system. The various attributes on which they are rated are: 1) 2) 3) 4) 5) 6) JOB KNOWLEDGE SKILLS CO-OPERATION RESPONSIBILITY ATTITUDE TOWARDS WORK INITIATIVE . This is taken care of by appraising every employee’s performance from time to time and making his contribution to the overall organization as objective as possible. A performance management system is simply a mechanism that improves the likelihood that the organization will implement its strategies successfully. where each guest is looking for a different experience.

They are said to be behaviorally anchored in that the scales represent a continuum of descriptive statements of behaviors ranging from least to most effective.e. i. . there are various actions that are taken and ratings are provided to the concerned employee.: SCORE 0-25 25-60 60-80 80-100 OBSERVATION Re Rating Needs further input Needs to be groomed Should be retained RATING Poor Worker Average Worker Good Excellent RECOMMENDATIONS File needs to be built One increment Two increments Three increments/Promotion The likert scale so developed is a modification of BARS. Behavioral Anchored Rating Scale. each level representing a certain level of behavior or skill.7) EFFICIENCY 8) ATTENDANCE 9) PUNCTUALITY 10) DISCIPLINE      Each of these attributes carries certain weight age depending upon their importance to the overall performance target of an individual. The score is further multiplied to the weights and scores for each attribute is finally added. The employee is scored on a likert scale of 1 to 5. Behaviorally anchored rating scales (BARS) are rating scales whose scale points are defined by statements of effective and ineffective behaviors. Score for each attribute : weight of attribute * score on likert scale Depending upon the overall score. Such an appraisal system followed by ITC HOTELS is known as FACTOR RATING METHOD For e. An evaluator must indicate which behavior on each scale best describes an employee's performance.g.

In addition to this the company is following the requirements of Six Sigma inorder to ensure quality control.g. Co operation inclined to be troublesome 2 Co operates to an adequate degree 3 Co operates willingly. ITC Hotels is well known for its participative style of management. time and other resources: 1) Training of individuals. ITC Hotels offers traditional Indian Hospitality combined with globally benchmarked services and sustainable business practices.The following are a few examples of the work this department is responsible for:- . 3) Understanding who needs to be retained in the organization and who needs to be layed off.The department comprises of 2 to 3 people and focuses on streamlining hotel processes.: OPERATION. fits easily to his group CO- 4 Co operates willingly and helps others fit into the group easily. 2) Deciding on who needs what level of increments. deciding who needs to be trained and in which area. Employees are constantly encouraged to recommend any process improvements and are regularly asked for recommendations. For e. MANAGEMENT CONTROL IMPLICATIONS Following a strict and regular appraisal system helps the organization have a clear account of average. good and excellent performers and further helps in taking important decisions that involve considerable budget. Everyday the HOD’s and General Managers meet to discuss feedback on the previous day’s performance. 4) Controlling employees behavior and check its sync with the organization culture and values. A separate department has been set up in each of its hotels called the 6 Sigma Assurance Department.This department is responsible for quality control and maintaining operational efficiency. ATTRIBUTE CO OPERATION 0 1 Co-operates Gives limited grudgingly. MANAGEMENT STYLE AND SIX SIGMA CONTROL SYSTEMS With over 100 hotels at more than 90 destinations across the country. A good indicator of this dedication to excellence is the fact that ITC Hotels have been regularly voted as amongst the best employers in Asia in the hospitality sector (latest being in 2009).Each attribute in the appraisal tells about different levels of behaviors.

For example: Assuming the HR department decided to undertake improvement of the laundry room of the hotel. For example: The process of availing of a duplicate key in case an employee misplaced his/hers involved contacting an HR representative and gaining access to the duplicate. has been kept in line with ITC’s core values. It acknowledges that every individual brings a different and unique set of perspectives and capabilities to the team. Thus the Six Sigma Assurance Department plays a major role in controlling employee performance by motivating them through rewards and incentives.Based on industry benchmarks and research it then goes ahead and creates a new improved process chart. A discrimination-free workplace for employees . The new process required two individuals who would be incharge of duplicate keys in 2 shifts i.Which clearly defines the process flow of any department or function.not necessarily relating to their functional area . as well as the management style. These ratios indicate the performance of each department on a likert scale as per the previous day. Culture and the Management Style The culture. for the purpose of improvement. Moreover constant involvement of employee in process improvements encourages a sense of loyalty and ensures that the hotel is adopting best practices.1) WOW Ratios At the daily meetings each department submits its WOW ratios. They would be required to submit their recommendations and costing to the senior management on how they can improve this space. Permission for access would be granted by an HR representative over the phone and this improved the efficiency of the process and saved time. Each of the hotels department then compete with each other on the basis of the above mentioned plans for improvement and the best recommendation is rewarded.e one in the morning and one at night. 3) Process Line Charts The 6 Sigma Assurance department also looks at Process line charts. promoting diversity and offering equality of opportunity to all employees fostering meritocracy in the organisation. 2) Model Areas Each month departments have to take up Model Areas. The performance of each department is compared on a monthly basis the best performing department is rewarded for they’re performance in the form of incentives and perks. The department look into the old process charts and tries to make process improvements . Each department has to choose a specific area within the organization . The problem with this process was that the HR representatives left the office at 6 every evening and in case of an emergency duplicate keys were not available.

. the interaction with the customers. the company conducts elaborate programmes to educate all employees on disabilities and how to work with disabled people. India’s ITC Hotels. Malaysia. In the same regards. According to Hewitt’s research. The Conrad Bangkok and The RitzCarlton Millenia. serving dollops of commitment to a common goal. Hewitt produced a separate list of the five best hotel employers. There is postretirement counseling on health and finance matters for the retiree and spouse. in recognition of ITC’s philosophy of an ‘equal opportunities’ employer in keeping with its policy to ensure respect for Human’s Rights and Prevention of Discrimination at Workplace. Government of India honored ITC Hotels with ‘Best Employer’ National Award for Empowerment of Persons with Disabilities The Government of India. the winners of this category being Four Seasons. Ministry of Social Justice and Empowerment had conferred ITC Hotels with the 2011 ‘Best Employer’ National Award for Empowerment of Persons with Disabilities. Hotels as an industry understood very strongly the link between the employee. This is achieved by ensuring that a non-discrimination policy and practice is embedded across the Company in line with corporate principles and benchmarked business practices.8 Employee Turnover: 9% Workplace Quotient: The hotel community works as one big family. With more than 200 associates/managers from the DAP (Differently-Abled People) category. There have been various examples to prove why the subsidiary is recognized and praised worldwideIndia’s best companies to work for 2009 -2010 Rank: 14 Gender Ratio (F:M): 1:11. AWARDS ITC Hotels awarded as Hewitt Best Employers in Asia for the Year India’s management culture has been moving away from a traditional top-down culture where age equals seniority toward a merit-driven system that promotes young achievers and strives to bring out the best in employees. Singapore. The award was presented by Minister of Social Justice and Empowerment. They are also provided medical reimbursement as long as they live.provides the environment in which diverse talents can bloom and be nurtured. JW Marriott Hotel Bangkok. Resort Langkawi. and business results. Best Practices: It’s a never-ending engagement. Shri Mukul Wasnik.

ITC Hotels is the only hospitality chain. The first two years are devoted to the basics in hoteliering. COO. This competitive hotel management programme. perhaps in the world to have a unique programme like the "Welcomlegionnaire".'' ITC Welcome group. personality development. Teleworking. along with a bachelors in Tourism Administration. The two institutes are  The Welcomgroup Management Institute. Gurgaon The Welcomlegionnaire Programme . -Opportunity to work and become self-sufficient -People involved in Housekeeping. Bakery and as Musicians. thus providing the students valuable hands on practical experiences with solid theoretical knowledge. etc.Dipak Haksar. There lies a spirit of excellence that pervades at all ITC Hotels in key business and leisure locations. showcasing the best from India to the world.empowering differently-abled people -Everyone should be treated with sympathy and empathy. “The recognition further validated the fact that our company starts with the work culture and we’ve really focused on making ITC Welcomgroup an organization where employees grow beyond professionals. recruits students on their completion of class 12 for a 4-year course. ITC Hotels has been redefining standards. ITC Hotels.. said. culture building. The remaining 2 years are spent as Hotel Executive Trainees in sync with in house Management Training Programmes. How do they do it? Over the years.