Indian Hotels Company Limited

Published Date: 02 Nov 2017

INTRODUCTION TO ORGANIZATION

HOLISTIC VIEW

The Indian Hotels Company Limited (IHCL) and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces and are recognised as one of Asia's largest and finest hotel company. Incorporated by the founder of the Tata Group, Mr Jamsetji N. Tata, the company opened its first property, The Taj Mahal Palace Hotel, Bombay in 1903.

Taj Hotels Resorts and Palaces comprises 93 hotels in 55 locations across India with an additional 16 international hotels in the Maldives, Malaysia, Australia, UK, USA, Bhutan, Sri Lanka, Africa and the Middle East.

IHCL operate in the luxury, premium, mid-market and value segments of the market through the following:

Taj (luxury full-service hotels, resorts and palaces) is the flagship brand for the world's most discerning travellers seeking authentic experiences given that luxury is a way of life to which they are accustomed. Spanning world-renowned landmarks, modern business hotels, idyllic beach resorts, authentic Rajput palaces and rustic safari lodges, each Taj hotel reinterprets the tradition of hospitality in a refreshingly modern way to create unique experiences and lifelong memories.

Taj Exotica is the resort and spa brand found in the most exotic and relaxing locales of the world. The properties are defined by the privacy and intimacy they provide. The hotels are clearly differentiated by their product philosophy and service design. They are centered on high end accommodation, intimacy and an environment that allows its guest unrivalled comfort and privacy. They are defined by a sensibility of intimate design and by their varied and eclectic culinary experiences, impeccable service and authentic Indian Spa sanctuaries.

Taj Safaris are wildlife lodges that allow travellers to experience the unparalleled beauty of the Indian jungle amidst luxurious surroundings. They offer India's first and only wildlife luxury lodge circuit. Taj Safaris provide guests with the ultimate, interpretive, wild life experience based on a proven sustainable ecotourism model.

Vivanta by Taj Hotels & Resorts span options for the work-hard-play-hard traveller across metropolitan cities, other commercially important centres as well as some of the best-loved vacation spots. Stylish & sophisticated, Vivanta by Taj delivers premium hotel experiences with imagination, energy & efficiency.

The Gateway Hotel (upscale/mid-market full service hotels and resorts) is a pan-India network of hotels and resorts that offers business and leisure travellers a hotel designed, keeping the modern nomad in mind. At the Gateway Hotel, the company believe in keeping things simple. This is why; the hotels are divided into 7 simple zones- Stay, Hangout, Meet, Work, Workout, Unwind and Explore.

Ginger (economy hotels) is IHCL's revolutionary concept in hospitality for the value segment. Intelligently designed facilities, consistency and affordability are hallmarks of this brand targeted at travellers who value simplicity and self-service.

Each of these brands has their unique selling preposition and information system in narrow terms and analogous and co-ordinated information system in broader sense. In order to have in depth study of the management information system, the report will emphasis on the "The Gateway Hotel Athwalines, Surat" from a narrow perspective connecting it to its parent company IHCL

THE GATEWAY HOTEL

Part of the Taj Group of Hotels, The Gateway Hotels & Resorts are full service upscale hotels and resorts in the South Asia region. The company offers consistent, quick and crisp service for smart travellers seeking hassle-free and contemporary experiences.

The company is very well aware about that the guests are looking for comfort, familiarity and flexibility when they travel. That's why the hotels are divided into 8 zones - Enter, Stay, Hangout, Meet, Work, Workout, Unwind and Explore. The 24/7 services such as the 24/7 breakfast, 24/7 "active studio" and 24/7 laundry are all designed to cater to guests round-the-clock. They deliver fitness through services like "in-room yoga" and "active foods". They let their guests enjoy their space. They take the unwanted surprises out of travel with a welcoming, consistent and enjoyable stay experience, unobtrusive service and warm, friendly hospitality.

The Gateway Hotels & Resorts are located in 21 cities and holiday destinations with plans to open in many more. The company currently have 40 operating and signed up hotels and plan to take this number to at least 50 over the next few years

CHAPTER II

INTRODUCTION TO MANAGEMENT INFORMATION SYSTEM

The concept of the MIS has evolved over a period of time comprising many different facets of the organizational function. MIS is a necessity of all the organizations.

The initial concept of MIS was to process data from the organization and presents it in the form of reports at regular intervals. The system was largely capable of handling the data from collection to processing. It was more impersonal, requiring each individual to pick and choose the processed data and use it for his requirements. This concept was further modified when a distinction was made between data and information. The information is a product of an analysis of data. This concept is similar to a raw material and the finished product. What are needed are information and not a mass of data. However, the data can be analysed in a number of ways, producing different shades and specifications of the information as a product. It was, therefore, demanded that the system concept be an individual- oriented, as each individual may have a different orientation. Towards the information this concept was further modified, that the system should present information in such a form and format that it creates an impact on its user, provoking a decision or an investigation. It was later realized then even though such an impact was a welcome modification, some sort of selective approach was necessary in the analysis and reporting. Hence, the concept of exception reporting was imbibed in MIS. The norm for an exception was necessary to evolve in the organization. The concept remained valid till and to the extent that the norm for an exception remained true and effective. Since the environment turns competitive and is ever changing, fixation of the norm for an exception becomes futile exercise at least for the people in the higher echelons of the organization. The concept was then evolved that the system should be capable of handling a need based exception reporting. This need maybe either of an individual or a group of people. This called for keeping all data together in such a form that it can be accessed by anybody and can be processed to suit his needs. The concept is that the data is one but it can be viewed by different individuals in different ways. This gave rise to the concept of DATABASE, and the MIS based on the DATABASE proved much more effective.

Over a period of time, when these conceptual developments were taking place, the concept of the end user computing using multiple databases emerged. This concept brought a fundamental charge in MIS. The change was decentralization of the system and by different individuals in different ways. This gave rise to the concept of DATABASE, and the MIS based on the DATABASE proved much more effective. Over a period of time, when these conceptual developments were taking place, the concept of the end user computing using multiple databases emerged. This concept brought a fundamental charge in MIS. The change was decentralization of the system and the user of the information becoming independent of computer professionals. When this becomes a reality, the concept of MIS changed to a decision making system. The job in a computer department is to manage the information resource and leave the task of information processing to the user. The concept of MIS in today’s world is a system which handles the databases, databases, provides computing facilities to the end user and gives a variety of decision making tools to the user of the system.

The concept of MIS gives high regard to the individual and his ability to use information. An MIS gives information through data analysis. While analysing the data, it relies on many academic disciplines. These include the theories, principles and concepts from the Management Science, Psychology and Human Behaviour, making the MID more effective and useful. These academic disciplines are used in designing the MIS, evolving the decision support tools for modelling and decision - making.

The foundation of MIS is the principles of management and if its practices. MIS uses the concept of management Information System can be evolved for a specific objective if it is evolved after systematic planning and design. It calls for an analysis of a business, management views and policies, organization culture and the culture and the management style. The information should be generated in this setting and must be useful in managing the business. This is possible only when it in conceptualized as system with an appropriate design. The MIS, therefore, relies heavily on the systems theory offers solutions to handle the complex situations of the input and output flows. It uses theories of communication which helps to evolve a system design capable of handling data inputs, process, and outputs with the best possible noise or distortion in transmitting the information form a source to a destination. It uses the principles of system Design, Viz., an ability of continuous adjustment or correction in the system in line with the environmental change in which the MIS operates.

Such a design help to keep the MIS tuned with the business managements needs of the organization.

The concept, therefore, is a blend of principle, theories and practices of the Management, Information and System giving rise to single product known as Management Information System (MIS).

The Physical view of the MIS can be seen as assembly of several subsystems based on the databases in the organization. These subsystems range from data collection, transaction processing and validating, processing, analysing and storing the information in databases. The subsystem could be at a functional level or a corporate level. The information is evolved through them for a functional or a department management and it provides the information for the management of business at the corporate level.

The MIS is a product of a multi- disciplinary approach to the business management. It is a product which needs to be kept under a constant review and modification to meet the corporate needs of the information. It is prescribed product design for the organization. The MIS differs since the people in two organizations involved in the same business. The MIS is for the people in the organization. The MIS model may be the same but it differs greatly in the contents.

The MIS, therefore, is a dynamic concept subject to change, time and again, with a change in the business management process. It continuously interacts with the internal and the external environment of the business and provides a corrective mechanism in the system so that the change needs of information are with effectively. The MIS, therefore, is a dynamic design, the primary objectively. The MIS, therefore, is a dynamic design the primary objective of which is to the information the information for decision making and it is developed considering the organizational fabric, giving due regard to the people in the organizational the management functions and the managerial and the managerial control.

The MIS model of the organization changes over a time as the business passes through several phases of developmental growth cycle. It supports the management of the business in each phase by giving the information which is crucial in that phase. Every has critical success factors in each phase of growth cycle and the MIS model gives more information on the critical success factors for decision making.

MIS DEFINITION

The Management Information System (MIS) is a concept of the last decade or two. It has been understood and described in a number ways. It is also known as the Information System, the Information and Decision System, the Computer- based information System.

The MIS has more than one definition, some of which are given below:

The MIS is defined as a system which provides information support for decision making in the organization.

The MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision making function in the organization.

The MIS is defined as a system based on the database of the organization evolved for the purpose of providing information to the people in the organization.

The MIS is defined as a Computer ñ based Information System.

Thought there are a number of definitions, all of them converge on one single point, i.e., the MIS is a system to support the decision making function in the organization. The difference lies in defining the elements of the MIS. However, in today’s world MIS a computerized .business processing system generating information for the people in the organization to meet the information needs decision making to achieve the corporate objective of the organization.

In any organization, small or big, a major portion of the time goes in data collection, processing, documenting it to the people. Hence, a major portion of the overheads goes into this kind of unproductive work in the organization. Every individual in an organization is continuously looking for some information which is needed to perform his/her task. Hence, the information is people-oriented and it varies with the nature of the people in the organization.

The difficulty in handling this multiple requirement of the people is due to a couple of reasons. The information is a processed product to fulfil an imprecise need of the people. It takes time to search the data and may require a difficult processing path. It has a time value and unless processed on time and communicated, it has no value. The scope and the quantum of information is individual-dependent and it is difficult to conceive the information as a well-defined product for the entire organization. Since the people are instrumental in any business transaction, a human error is possible in conducting the same. Since a human error is difficult to control, the difficulty arises in ensuring a hundred per cent quality assurance of information in terms of completeness, accuracy, validity, timeliness and meeting the decision making needs.

In order to get a better grip on the activity of information processing, it is necessary to have a formal system which should take care of the following points:

Handling of a voluminous data

Confirmation of the validity of data and transaction

Complex processing of data and multidimensional analysis

Quick search and retrieval

Mass storage

Communication of the information system to the user on time

Fulfilling the changing needs of the information

The management information system uses computers and communication technology to deal with these points of supreme importance.

CHAPTER III

INFORMATION TECHNOLOGY INFRASTRUCTURE

Information is the key for decision making in any business, therefore getting the right information at the right time, at the right place and faster makes lot of difference in any business and so especially in Hospitality Business where the decisions are taken instantly in some levels.

In this context the age old phrase "Garbage In and Garbage Out" is valid even today as incorrect information may lead to problems. It is not uncommon that one may have good computer system yet may not be successfully getting right information for the business. 

It is a combination of the Right People and the Right System that makes a business successful. Although lots of developments have taken place in terms of computers and its applications, making use of it completely rests with the person using it. Computer cannot replace men!

There was a time when people used to write simple expense statements and general ledger to balance sheet manually. Most difficult front office operation used to be monitored manually through a long sheet of paper. Computer pundits came out with great solutions specifically to hotel industry making life easier for front end staffs who need to attend to guests most of their time rather than looking at the paper. Information and good service is the key for success in hospitality industry. 

Today, computers do magic for the front end staff enabling them to devote more time in attending guest requirements in a pleasing way without compromising the Standard Operating Procedures (SOP). From the time of reservation until the time customer checks-out of the hotel everything is recorded and the data is available. The computer system really monitors the guest requirement, their likes and dislikes, their wants and satisfaction levels in a readable way that helps the hotel enhance their future services.

In order to achieve good results through the computer system one should first understand one’s requirement in terms of fastness of information, kinds of reports, formats etc. Second, the flow of work that takes place in each activity. Third comes the procedures and last its effective implementation. All this become the system component. Once this is understood, next step is to make a program or customization accordingly through the software. Software cannot work without hardware. A good Information Technology System comprise of three components, Systems, Software and Hardware.

Selecting the right type of system is most important for any hotel operation. Most of the hotels use special software made for hotels which are generally called as Property Management System (PMS). PMS comprise of both front end and back end solutions. There are various other solutions which are not part of PMS but, get interfaced with the PMS. There are very few property management systems that have the integrated solutions built-in with both front and back end, like IDS Fortune Enterprise. Choosing the right system requires expertise and knowledge about the hotel operation. 

Normally, all systems comes with Room Division – with Front Office System and House Keeping Module, Food and Beverage Division – with Point of Sale and Back End system – with Accounting, Inventory, Human Resources. 

System requirement for each facility differs and it should preferably be a cost effective solution. It is not necessary that all hotels require most expensive computer systems. Small hotels needs a simpler systems than the big operations where complicated services, standards, data assimilation and decision making tools are required. Many big operations require various interfacing such as Telephones, Internet, Interactive Television, Door Locking system, Yield Management, Global Distribution System, Visa/Master Card etc. 

All these can be automated through Property Management System in an efficient and effective way. This reduces not only the man power, also reduces mistakes that happens when handled manually.

Most of the PMS software gives generic solutions. Customization is important in order to achieve what one wants from the system chosen. Some of the PMS software is customer friendly and customization becomes easier and there is also rigid software that does not allow customization. It all depends on the architecture one has used to build the software. User friendly software will allow customization without making structural changes.

Today, computers and software can give solutions to the most complicated logical problems in any operation. Computers makes life easier in getting right reports at the right time that helps in decision making process easier and faster. Computer system can prompt if any mistake is made, it can prompt opportunities and it can prompt to take corrective action in a pro-active manner.

Considering this very fact about Hospitality industry, the IT Infrastructure at The Gateway Hotel Athwalines, Surat is as follows:

On Check -out

Customer Feedback System

(CFS)

Property Management System, i.e.; Fidelio

Point of Sale, i.e;

ShawMan

Orion Accounting Software

Central Server

At

Mumbai (HO)

Daily Business report

(DBR)

Balance Score Card; includes

Guest Satisfaction Tracking System (GSTS)

Decision Making

There is a Property Management System (PMS) (Software: Fidelio) which tracks the guests information right from the time of reservation to the time they checks-in and even after they checks – out. Another system known as Point of Sale (POS) (Software: ShawMan) generates bill for restaurants and minibars is integrated to Fidelio (PMS). The entire information in Fidelio goes to Orion – An Accounting Software where financial aspects are taken into consideration and the same information later is transmitted to the Head Office at Mumbai through Central Server. At the time of guest check-out, Fidelio generates the Customer Feedback Form via Customer Feedback System (CFS) which along with guests’ feedback goes to the Central Server. This Central Server in return helps management to form two reports i.e. Balance Score Card & Daily Business report.

Balance Score Card (BSC) is a report which helps in tracking the Guest Satisfaction Level, also known as Guest Satisfaction Tracking System (GSTS). Daily Business Report (DBR) is a report which targets daily, monthly and yearly targets of different department from revenue point of view.

On the basis of information received via Central Server the Budget and various other day – to – day decisions are taken by the management. Thus, this is how information is generated and decisions are taken at The Gateway Hotel Athwalines, Surat with the help of its IT Infrastructure.

CHAPTER IV

DATA FLOW

INTRODUCTION

Communication plays an important role in any sector. Internal communication which is done within organization is even more important than any other form of communication. Internal communication is also termed as "Data Flow". This data flow in proper order helps to take accurate decision in an organization, avoids confusion and enables smooth functioning. In order to have healthy data flow cycle in the organization, it is very mandatory that the hierarchy and its importance are clear to one and all employee working with the organization. Moreover, it is always preferable to have two ways communication rather than having one way communication i.e. top management passing information towards middle and lower management.

Hierarchy

As hierarchy plays an important role in data flow or reporting systems, let us see the hierarchy of The Gateway Hotel Athwalines, Surat to understand its MIS in detail.

General Manager

Chief Er.

FOM

F&B Mgr.

Ex. HK

Ex. Chef

Sales Mgr.

Purchase Mgr.

HRM

Chief Accountant

Security Mgr.

I.T Mgr.

Asst. Mgr.

I.T Sprvr

Security Officer

Asst. Accountant

Asst. HRM

Asst. Purchase Mgr.

Asst. Sales Mgr.

Sr. Sous Chef

Asst. HK

Rest. Mgr.

Duty Mgr.

Associates

I.T Butlers

Officers

A/C Supervsr

HRM Suprvr

Sales Suprvr

Jr. Sous Chef

HK Suprvr

Asst. Rest. Mgr.

Sprvr

Chef-de-partie

Associates

Associates

Capt.

Associates

Stewards

Commiss I, II, III

The above chart clearly shows the hierarchy of The Gateway Hotel Athwalines, Surat. The most convincing part of this hierarchy and management is that the communication in done both the way i.e. top level to bottom level management and bottom level to top level management.

The important decisions are taken by General Manager and Top Level Management mutually on the basis of information received from Middle and Bottom Level Management through various reports and guests interaction, being a service industry. The various reports includes Managers’ Report, Daily Business Report, No Show report, Guest Satisfaction Tracking System (GSTS), etc. (Note: See Annexure for the formats of these reports)

At times, even Middle Level Management and Bottom Level Management are also involved in decision making process, if the decisions are to be taken for the reformulating the processes that are been followed in the Hotel.

REPORTING STRUCTURE

The organization follows the functional organization system where each department is headed by a specialist and every individual employee report to his or her immediate superior. The responsibilities and authorities are made so clear to each employee that there occurs no confusion and work is carried on smoothly. The accurate reporting structure followed at The Gateway Hotel Athwalines, Surat also help the management to take the decisions accurately and thereby most of their wastage is avoided as this lead to proper and accurate planning.

FREQUENCY OF REPORTING

Being a service industry all guests’ requests, requirements and complaints are to be taken note of every single time it occurs to make the service more effective. Keeping this in mind, a report is formed every day by an operator where he or she mentions all the complaints and requests of the day. This report is then been mailed across the departments. Moreover, at the time of night audit, various reports are been generated like no show report, GSTS report, Next Day Arrival report, etc. Thus, it will be apt to say that knowing the sensitivity of the industry the reporting frequency is very speedy to tackle the problems as soon as possible and thereby maintain their standards.

Chapter V

Categories of Information System

Transactional Processing System (TPS)

A transaction processing system (TPS) or transaction server is a software system, or software/hardware combination, that supports transaction processing. It helps in Book Keeping, Data Gathering and Data Storage.

From the view of The Gateway Hotel Athwalines, Surat, Orion is software which helps in TPS.

Decision Support System (DSS)

A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance. Decision support systems can be either fully computerized, human or a combination of both

From the view of The Gateway Hotel Athwalines, Surat, the various reports which are generated at the time of night audit are considered to be DSS

Executive Supportive System (ESS)

An Executive Support System (ESS) is software that allows users to transform enterprise data into quickly accessible and executive-level reports, such as those used by billing, accounting and staffing departments. An ESS enhances decision making for executives.

From the view of The Gateway Hotel Athwalines, Surat, the Property Management System (PMS) is to be considered as ESS as it enables executive to convert the report and readily make it available for their future use.

CHAPTER VI

CONCLUSION

Looking at the MIS of The Gateway Hotel Athwalines, Surat, it won’t be wrong if exclaimed that the MIS has made the work divided appropriately and therefore the opportunities are grabbed timely and decisions are taken accurately. It is only due to effective MIS that is present in an organization that management is able to find leap holes, if any and rectify the same for the betterment of the organization which in turn help them to achieve their target or goal.

Thus, studying an entire Organization and its Management Information System (MIS) made the actual concept of MIS very clear. It featured the importance of MIS in today’s fast growing world. It also proved the very fact that MIS can be consider a back bone of an organization and if it goes wrong can lead to many problems, wrong decision making, etc. Hence, it is very necessary for any organization to have strong MIS and thereby maintain the accuracy which in return brings effectiveness and increases efficiency of the employee and an organization as a whole.

CHAPTER VII

RECOMMENDATIONS

After studying the entire MIS of The Gateway Hotel Athwalines, Surat, the leap holes or the scope of improvement founded in the hotel was that although the MIS was very well designed and systematic still the system should be made such that the guests profile which is visible only via PMS i.e. Fidelio should also be viewed via POS i.e. ShawMan. This will smoothen the work for all the departments as then no department has to call the other department unnecessarily.

Again it was observed that the salon which functions at the Hotel has different billing software and has no connection to the PMS. As a result after every client the salon provides service, the receptionist comes up to the main Hotel reception and the amount is then entered into PMS manually by the staff which may prove erroneous at times and is also time consuming. Thus, if these leap holes are looked upon; a better MIS can be developed.