NIBM

Advanced Diploma in Business

Management

HRM practice in
Cana Residence
Kandy
Submitted by : L.R.Gunasekera
ADBM-EVE-14.5P-04

Contents
1)
2)
3)
4)
5)
6)
7)
8)
9)

Introduction to the organization

HR department of Cana Residence
The planning process
Recruitment process
Motivation, performance appraisal
Absenteeism, leave entitlement and termination
Grievance handling
Recommendations
Conclusion

Introduction
Human resource management must be forward thinking. They must
simply react to what management states. Rather they are assisting
management with the people component of organization. In a successful
2

business human resource management is the most crucial part of the

business because it its concerned with the peoples dimension of
management where human resource deal with other resources such as
financial, informational, physical resources and utilize those resources. So
any organization would try to acquire, develop and stimulate to keep
outstanding workers will be the ultimate purpose of Human Resource
Management. Organizations have to survive, if HRM fail to survive
organizations cannot survive. So they need proper coordination.
Global

competition

has

increased

the

importance

of

organization

improving the productivity of their workforce. Stepping in to the actual

discussion of the report Cana Residence, Kandy do look for the best
qualified workforce. This has resulted in need for the HRM department
with specialists trained in psychology, sociology organization and work
design and law. The intention of this report is to find the human resource
practices in Cana Residence, Kandy a growing hospitality service in the
hotel sector. The report will therefore include the HR planning, organizing
and development of the organization.
Objectives
The objective of this report is, firstly to get an apparent view of what
actually is experienced in the area of HRM of the Cana Residence. The
report is more concerned about what is happening other than what is
ought to happen in the HRM practice of Cana Residence, Kandy.
Methodology
The following methodologies has been followed to prepare the report
1) Interview the Co-owners of the boutique hotel, Mr and Mrs. Jerome
Fernando,Manager of the HR department Mr. D.M. Senasinghe and
the front office manager Miss. L.K. Henricus.
2) Collect information through questionnaire

and

face

to

face

interviews.
3) Draw conclusion with comments and suggestions if necessary.

Cana Residence, Kandy

The organization
Cana Residence is a young addition to the hotel sector. The origin of the
hotel dates back to 2008 when the founders and co-owners of the hotel
started the hotel as a boutique hotel to provide hospitality services to
foreign tourists. At the time of starting of the business there were only 6
people in the staff, presently the hotel has a workforce of 44 people and is
one of the leading luxury boutique hotels in Kandy. The hotel started its
service in the hospitality sector, the main building of the hotel was
constructed to facilitate only 10 guests with Bed&Breakfast. Now the
entire hotel consist of 3 buildings, the main building which consist the
front office, reception hall, restaurant, waiting area, gymnasium. The
second building which accommodate 20 guests with luxury rooms
comprising all facilities. The third building which consist of two luxury
suites, kitchen area and storage.
Cana Residence is now well known for flawless service and cleanliness. It
is recognized as a quality venue for business travellers as well as
travellers on holiday. Guests of the hotel leave positive comments stating
the goodness of service they received. The standard of the hotel meets
guest satisfaction. Cana Residence stands majestically amidst a peaceful
surrounding near the Polgolla dam, Kandy. The hotel is conveniently
centrally located to all major tourist attractions in Kandy, making it most
preferable for a budget traveller.
Services and facility
The divisions of the hotel is as follows
Rooms division
Food and Bevarage division
Sales and Marketing division
Front office
4

Human Resource Department

Travel and tours division
Human Resource Department of Cana Residence
In the hierarchy of the Cana Residence comes first the head of HR division
who control over the HR department and the activities of the HR
personnel as well as recruitment and selection activities. Then horizontally
comes five posts including the HR training manager, Cost and benefit
coordinator, payroll officer and junior HR executive.
HR planning
Human

resource

planning

is

very

common

phenomena

of

any

organization. Human resource planning is a process to recruitment,

retrenchment, job analysis, job description ( duties , responsibility,
accountabilities) and job specification( knowledge skill and abilities of job
holders) and job evaluation ( relative value and distinguish in terms of
salary). It may describe the planning process for recruitment and derecruitment, Under HR planning the swot analysis of the hotel that is given
below.
Strength

Experienced staff and operational workers

Cultured environment
Clean luxury rooms
Excellent hospitality service
Excellent food prepared to match global cuisines

Weakness

Lack of communication between staff

Employees compare between peers

Opportunity

Sharing the knowledge between the staff

Training and development for new staff
5

Threats

Competitors
Climate and geographical location
Job layoffs
Guest dissatisfaction

The HR information system available at the hotel is now more user

friendly and provide quick response to quarries. The HRIS in the hotel
maintain information about the employees and their job facility and
provide the facility of retrieving information whenever is necessary. The
basis of HRIS available at the Cana Residence is given below.
Category 1:Basic non confidential information
the hotel keep some information that are disclosed to all at the time of
appointment which include: employee first name and the family name. the
organization name which is at the time of orientation the hotel provide
information about their organization. The work location, at the time of
joining the hotel the exact location where they set the working area for
employees are available. The work phone number, in case of any
emergency the contact number is available when need to contact an
employee. The number of employees, the number of employees in the
working area is mentioned by the department coordinator at the time of
joining. Work hygiene, another important factor, at the time of the
orientation the hotel disclose how to maintain hygiene program to all.
Category 2: General non-confidential information
Some information that are in the system but is not disclosed to the
employees and third parties. Such type of information is given below.
Health insurance: the hotel provide health insurance which the help of
insurance companies to ensure the safety and good health of the
employees.

Job security : the hotel provide job security by the contractual agreement
with the employees.
Position related information: in which position they offer, the hotel should
make clear explanation about the responsibilities to the employee.
Other

organization

related

information:

the

hotel

provides

critical

information about the competitors and the market and what the
regulations are to the employee.
Category 3: General information regarding salary and wages
The salary and wage information of the employees are secured in the HRIS
of the hotel and all the employees are aware of their respective payment
structures.
The current salary : HR provides detailed information about the salary
when employees join the organization
Effective date: date of joining the company is known as the effective date
of working.
Category 4:Extended confidential information with salary
Salary, bonuses and other monetary benefits that are given for an
employee is secured and strictly kept confidential in the hand of the
management and the HR working team.
The bonus: bonus related information kept by the HR and worker union to
whom they may five bonus.
Benefit information different types of benefits are provided to the
employees but it depends of the decision of the HR department.
Projected salary increase information
Every year the hotel increment the salary range of the employees and it is
strictly adhered to keep the increment information confidential.
Category 5: Performance evaluation information
7

About the performance of employees of the hotel the HR personally talk to

the employees but does not disclose to others where the information is
regarded as sensitive. Moreover to motivate employees every month
there is an evaluation taking place to select the best employee of the
month and award them with special allowances of other special benefits
such as free dinner at the hotel for family, or a free night of stay at their
selected room for members of the family or hotel funded holiday trips.
The planning process
To meet appropriate human resources the planning process is very cruicial
for the organization. Planning process set the relationship between current
and future demand for and the supply of the human resource.
The purpose of HR planning

To assess where the organization is ( in which stage)

Where it is going?
What implications have these assessments on the supply of HR

The HRM practice and planning Cana Residence is also based on these
objectives. The planning process includes following tasks.
HR inventory Cana Residence
Report showing list of name, education, training, prior employment,
current position, performance rating, salary, capabilities and specialized
skills.
Where the organization is?

The report determine current skill available

It will guide next demand
Help management in selecting and training promotion and transfer
Provide crucial information for identifying current or future states.

Assessing where the organization going?

Number and mix of human resources are to achieve organization

goals.
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Demand for HR will depend on demand of services of the

organization. They are positively related

Constantly develop HR to cope with the situation.

Factors of increasing the HR

New recruitment
Returning from leave
Expansion of business.

Factors of decreasing HR

Due to retirement
Dismissal
Lay off (controllable, reasonable, forecast able)
Voluntary quits
Prolong illness or disability
Estimated change in external supply.

Retrenchment
It is a strategy adhered to in a declining situation to survive the business.

Out placement
Layoff
Leave of absence without payment
Loaning
Work sharing
Reduced work hour
Early retirement

Job analysis process

a job analysis is a systematic exploration of the activities within a job. The
analysis involves the identification and description of what is happening
on the job.
Job analysis provided information about job currently being done and the
knowledge, skills and abilities that individuals need to perform the jobs.

Method
Cana Residence follow the below mentioned job analysis method.
Observation: basically the manager on duty in the hotel act as the job
analyst and watch the activities of the employees to gather information,
Technical conference method: this method uses supervision on each and
every department with extensive knowledge on the jobs.
Log book method: in this method the employee record daily activities such
as how the work is going on, what are the difficulties they come in to and
what their suggestions are.
Outcome of the job analysis
Job description: a written statement of what the job holder does, how it is
done and why it is done.
Job specification: identify the skills, knowledge, education, experience,
certification and abilities needed to do the job effectively . Job
specification should help to do the job more effectively.
Job evaluation
Cana Residence also evaluate jobs in terms of skill, knowledge and
abilities that are important part of the corporate administration.
Recruitment
Recruiting is the process of discovering potential candidate for actual or
anticipated organizational vacancies. It is a linking activity bringing
together those with jobs to fill and those seeking jobs.
The goals of recruitment is

Increase the guest satisfaction index level by providing world class

services.
Tending an individual who is best suited for the job requirement.

10

Recruitment source
The more application received the better recruiter is finding an individual
who is best suited for the job. The Cana Residence is likely to achieve this
objective by recruiting by internal and external source. The internal source
of the hotel is used to recruit employees within the organization by
promotion.
Reasons for internal recruitment

Improving the probability of a good selection

Encouraging employees who are ambitious
Less cost
Internal employees already knows the organization

Normally the internal recruitment takes place by referral. It is a

recommendation from a current employee regarding the job applicant. It
is used when the internal circular come and applicant apply for another
department or another position.
The hotel uses external sources for expert and specialist position. For
hiring

the

best

competent

qualified

employee

for

the

hotel

by

advertisement on newspapers and the internet.

Selection
Selection activity is requires a lot of careful planning and careful thought.
Selection process includes some steps that also followed by the hotel and
every step in selection process provides decision makers with information
that is very critical and effective.
The process
After external circular, the hotel screening resume and select the
associates according to the selection process. In the following is presented
past two years and recent information about those employees who are a
part of the hotel in different departments.

11

The steps in the selection process

Advertising
Screening the applications
Initial interview
Screening the interviewed applicants
Language test
Short list candidates
Comprehensive interview
Final selecting
Offering the job by appointment letter

Types of jobs offered at Cana Residence

Permanent job
Casual job
Contract basis
Part time

Orientation at Cana Residence

When new recruits are selected they go through a series of formal as well
as informal activities for the proper orientation. First of all, an official
orientation program is held by the HR department, where all employees
participate and the new ones are given a brief introduction of the hotel
function and each and every department, its operation. They are
conversed about the mission and vision of the organization. After the
initial orientation the employees organize a formal cultural function inside
the premises as a part of the welcoming the new recruits. After the new
employee start his or her activities she or he is put under a team leader
and a buddy is provided to guide the first few days of working with on the
job training.
Training and development
Training as learning experience that permanently changes in behaviour
and it is focusing on individuals current job. The hotel provides proper
training to ensure that the employee performance at their respective jobs
12

is at its best level. Especially on the job training is provided for the newly
recruited employees.
Cana residence following methods for on the job training:
1)

Video & Films: Using various media productions to demonstrate

specialized skills that are not easily presented by others training

method.
2) Pictures: Picture designed to communicate interpersonal, technical,
problem solving skills and latest information.
3) Cross training: Cross training designed to work to gathers actual
knowledge of others department, how to they work and make the
employees multi skill performers.
DEVELOPMENT METHOD:
All employees, no matter at what level, can be developed. Employee
development by design is more future oriented and more concentrated
with education than employee job specific training. Some development
method of an individuals abilities can take place on the job. The method
followed by Cana Residence is given below:
1) Job rotation: Job rotation involves moving employees to various
positions in the organization in an effort to expand their skills
knowledge and abilities. Sometimes they promoting the employees
into a new position by Vertical location and also introducing short
term lateral transfer in other department.
2) Assistant to position: Also sometimes Cana residence provides
opportunity to work under a seasoned and successful manager often
in different department in other organization. So employees can
understand a wide variety of activities and duties of next higher
level.
3) Committee assignment: To share in decision making, to learn by
others and to investigate specific problem etc provided for
employees. As a result they can find out the problem, alternative
solution and implementing the task.

13

Motivation
Motivation: Motivation is the driving force of doing the activities effectively
and efficiently. Motivation can be expressed in different meaning, because
it also used to describe sort of behaviour.
Motivation one of the main criteria for effective human resource
management is motivation. For the desired result of any organization,
motivating the employees is very important. So the organization also tries
to motivate its employees. But the organization does not have a standard
motivational process. It motivates only with the help of increment. One
thing about this increment is that it has no specific period. Sometimes it is
a yearly or sometimes it is quarterly and again sometimes it is semiannually, depending upon the overall performance of the workers and the
hotel itself.
The human resource officer informed

that they believe in McGregors

Theory Y and emphasize the safety and love need for all employees. So
besides the increment, the Cana Residence sometimes tries to motivate
the employees by full-filling their required needs of the employee such as
promotion, transportation service, house rent allowance, bonuses But as it
is a ownership based organization, management plays a big role with the
administrative department in determining these motivating factors. The
organization is always cautious about that all the hygiene factors are
present in the environment and if the employees are not motivated, at
least they are not de-motivated.
Cana

residence

also

use

negative

motivation

when

they

watch

undesirable outcome from them. Reason behind negative motivation:

1) Violate the rules and regulation in duty place.
2) Stolen the materials of the organization

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To sum up we can say to work best for most people is to understand that
both positive and negative motivation are useful. So to give real service,
we must add something which cannot be bought or measured with
money, and that is sincerity and integrity.

Performance appraisals
Performance standards depend on the evaluating an employees current
and or future performance. The process of performance standard
appraisals followed by Cana residence:

Performance method: Two types of method used for performance

appraisals: one for new associates and other for the executive.
Performance method for new associates: It shows in the appendix.
Under this procedure, Department head clarify the information by
the following way:

1) Product knowledge: Product knowledge describes the idea about Cana

residence service, deferent department of the hotels, training facility etc.
2) General knowledge- External: Such type of knowledge include holiday
of different market, tourism place, competition of the hotel, idea about
visiting place, embassy which is very crucial for front office who actually
deal with guest and guest requirement.
3) Administration: Interims of administrative side, associates should
capture knowledge about duty, discipline, personal hygiene mealtime that
are very essential part of performance to check whether they ready for job
or not.
Absenteeism

15

If employees are unable to report for work any reason, notify the Human
Resource Department or any department Head immediately of the reason
for their absence and when they will be able to return to work.
Habitual absence without leave or absence without leave more than 10
days constitution the offence of misconduct and is punishable to the
extent of dismissal from the service under the relevant labour laws.
Leave entitlement
Annual Leave with Wages After completion of 12 months continuous
service in the Hotel employees are eligible to annual leave during
subsequent period of 12 months, leave with full wages for 22 days.
Sick Leave
Persons who are sick must inform the Department of their inability to
attend duty within 24 hours. Please note that paid sick leave will only be
granted upon the production of a valid medicate from the hotels Doctor.
The total paid leave of absence due to sickness in any year is limited to 14
days.
Casual Leave
Every employee shall be entitled to Casual leave with full wages for 10
days in a calendar year but it will not be granted more than 3 days at a
time. Casual leave shall not be carried forward beyond that calendar year.
Casual leave may be availed by the employees in the event of death of
father, mother husband/wife, child, brother, sister or parent-in-law or such
other sudden unavoidable causes.
Festival Holidays
Every employee shall be allowed at least 10 days festival holidays with full
wages in a year. Days and dates for such festival holidays may be fixed in
the prescribed manner.
Duty Meals
16

All associates on duty are entitled to meals during the interval for
rest/meals in the Employees Cafeteria unless indicated otherwise.
A period of 30 minutes for lunch 30 minutes for dinner and 15 minutes for
breakfast/morning tea, coffee or afternoon teas are allowed. Hours are as
follows:

Breakfast 06:00 07:30 hours

Morning tea/coffee 10:00 10:30 hours
Lunch 11:30 13:30 hours
Afternoon Tea 16:00 16:30 hours
Dinner 18:00 20:30 hours
Night Snack 12:00 01:30 hours

Facilities
Locker Rooms:
For the convenience of employees lockers are provided where only the
following items can be kept:
1. One Staff Towel.
2. Shaving kit and Toilet Soap
3. Hair Oil/Cream/Powder
4. Private Shirt Trouser
5. Socks and Handkerchief
No food or inflammable items whatsoever may be stored in the lockers. A
lockers key will be issued to the employee at cost price. The loss of locker
key must be reported immediately to Human resource Department. The
charges for cutting an new key for the locker will be deducted from the
employees salary. The locks must not be changed or tempered with in
any way. The human Resource Manager or his assistant will inspect locker
rooms at any given time.

17

Grievance
If employees have a personal problem and they need advice or
assistance, their supervisor will be glad to help them. If the issue cannot
be resolved by their supervisor consult with their Department Head.
However if they would like to consult the Human Resource Director or
Human

Resource

Manage

confidentially,

they

should

ask

for

an

appointment at the Human Resource Department.

HR welcome suggestions and constructive criticism, and they are invited
to discuss their suggestions of personal problems with either their
department head or human resource manager. Both one will be happy to
be assisting them and they will always find an open door.

Counselling:
If an employee is habitually late she/he should be counselled and then a
note of the discussion should be forwarded to the HR Department, more
than thrice where it will be filed. Also an employee may not perform duty
accurately so they also counselling with HR department. They dont go
directly dismal. They give first, second, and the final warning.
Termination of Employment
Upon the termination of employment and before the final salary is made
the completed clearance sheet confirming the return of all tools, uniform
locker key personal identification card other hotel properties in the
employees possession to the respective department will need to be
presented to the human resource department.
Recommendation
It is good that they choose an employee for any department according
to their knowledge, skills, and abilities. Also at the time of work they give
cross training where an associates wish. But I feel the payment structure
is not exact in terms of education.
18

 We know technologies developing day by day. But all associates are not
concern about the use of opera system used in the hotel for working. So
management should provide well organized training on their software
system.
Cana Residence has a web site, there is available information about their
product and services and reservation but not enough information about
their hotel. They have enriched their websites.
They recruit employees who may contractual or casual. In case of
contractual they are recruiting themselves permanently according their
performance. On the other sides, casual they are not recruiting them
according their work in most cases. But I think who performed well,
management should give them priority.

Conclusion
From the above, we can see the clear picture of Human resource Practice
in the Cana Residence.. We can conclude that, the Cana Residence has a
formalized procedure of practice in some arena of human resource
management.
The Hotel follows the theoretical procedure for recruiting and selecting the
employees, but it does not follow the theories like a blind person. They
even dont know about some of the other procedures/steps of recruiting or
selecting personnel. But the hotel could not take necessary care in other
aspects of the Human Resource Management. Like though it has a
practice of motivating employee through giving increment. It tries to fullfill the love and safety needs. Sometimes they recruit internally to whom
they prefer as a result associates wouldnt like to apply and discourage.

19

In performance appraisal and reward system the hotel has a forward

thinking though it has a performance-evaluating unit, this unit mostly
performs the duty of an invigilator as well as a performance evaluator. On
the other side, associates of the month, reward for honesties be a good
reward for all situations.
As there is not enough data on the compensation packages of the hotel, it
is very difficult to conclude anything about the compensation system. One
thing should be marked that, the Cana Residence thinks that the
compensation package is satisfactory to the associates without any
statistical base. And we can find that the Cana Residence have vast
practice of Human Resource Survey, which is a positive point for the
hotel and HR department.
The limitation of this report is that, because information about any other
organization is available, I cannot draw a clear picture of the HRM practice
in Cana Residence, which was one of the main objectives of the report.
From here, we can have a partial picture of the HRM practice in our
country. So the objective of the report is partially fulfilled.
In essence the report always remember what makes a hotel great is not
brick and mortal, not exciting design or even beautiful color schemes,
but people, PEOPLE LIKE YOU, animated by a spirit of warm, connections
and

comforting

hospitality

and

sincere

desire

to

serve.

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