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Acknowledgement
I would like to express my sincere appreciation to Prof. Preeti for giving us an

opportunity to do project on THE BEST PRACTICES IN HOTEL INDUSTRY. All those whose support and encouragement made this research possible. This project is great source of learning. It was not easy to to this project but it feels great to overcoming the difficulties and complete it. We have worked as a team for completion of this project.

Abstract
This paper explores the service quality, productivity and human resource

management practices of selected hotels, in an attempt to elicit common themes for successful Human Resource practices in hotel management.It compares the practices used in different cultural and employment settings with contemporary management styles.

Table Of Contents
History & Evolution

Introduction Research People's Philosophy: Key Principles Employee Motivation Best Practices Consequences Of Failure Summary & Conclusions Bibliography

History & Evolution

A 'hotel' or 'inn' is defined by the British law as 'the place where a bonafide traveller can receive food and shelter provided he is in a position to pay for it and is in a fit condition to be received'. Hence a hotel must provide food and lodging to a traveller on payment and has, in turn, the right to refuse if the traveller is drunk, disorderly, unkempt or is not in a position to pay for the services. Early travellers were either warriors, traders or people in search of knowledge. This was before the advent of hotels. Thus, warriors and conquerors pitched their tents for accommodation, while traders and people travelling for knowledge placed a high value on hospitality and sometimes traded their merchandise for lodging. Inn-keeping can be said to be the first commercial enterprise, and hospitality one of the first services for which money was exchanged. Inns of biblical times offered only a cot or a bench in a corner. Guests stayed in large communal rooms with no sanitation and privacy. The rates were, of course, reasonable. The company was rough. Travellers shared the same quarters with their horses and animals. In the third century AD, the Roman Empire developed an extensive network of brick-paved roads throughout Europe and Asia Minor, and a chain of roadside lodges was constructed along the major thoroughfare from Spain to Turkey. Till the industrial revolution of the 1700s, no significant improvement was made in the inns and taverns, and they were not very suitable for aristocrats. To accommodate wealthy travellers, luxurious structures were constructed with private rooms, individual sanitation and the comforts of a European castle. These elegant new establishments adopted the French word for mansion - 'Hotel'. Not surprisingly, their rates, too, were beyond the reach of an ordinary person. In America early inns were modelled after European taverns, with sleeping quarters shared by two or more guests. Early history of accommodation for travellers can be traced back to the Greek word 'xenia' which not only meant hospitality, but also the protection given to a traveller from discomforts. The city was bound to traditions of hospitality. In Sparta city, despite rigorous customs restricting visitors, goddess Athena was considered a 'protector of strangers'. In this period travellers were mainly diplomats, philosophers, intellectuals and researchers. Guests were invited to stay with the nobleman. In ancient Olympia, buildings constructed with the aim of accommodating strangers are still visible. They were called 'Leonardo' and were built in fourth century BC. The concept of hospitality can also be traced back to ancient times. Mention of it is found in Iliad and The Odyssey by Homer. Hotel keeping can also be traced back to many centuries and its evolution through the ages has been brought about by Britain's economical and industrial changes and developments. The next stage in the cycle of evolution of the hotel industry was the coming of the motor car. It enabled people to visit those parts of the country which could not be reached by railways. This gave birth to inland resorts and the hotel industry began to flourish. International air travel has helped

create the modern stop-over hotel. With the increase in this form of travel, the number of hotels built close to airports has multiplied. Another trend in hotel keeping is the Motel, which is the twentieth century version of the old Coach Inn. People travelling the country by car, stopping overnight here and there; require not only refreshment for themselves, but also safe parking for their cars. Post houses, developed by the Trust houses Forte Group, are in fact the modern version of the old coaching inns. This is probably why Britain is considered as the 'motherland of hotel industry'.

Price, Service, Amenities

Hotels (as well as other forms of accommodations) are generally segmented by the services and amenities offered. These two factors, along with location, also have a bearing on the price range. Budget hotels offer clean albeit simple rooms that provide the basics of places to sleep and shower. Usually budget hotels are designed for travelers looking to maximize their funds and minimize expenses. Prices can range from $20US per night to $70US per night. Business hotels offer a high standard by providing rooms equipped with what business travelers would consider necessities. Usually found in business-class hotel rooms are high speed Internet connections, alarm clocks, comfortable beds, irons and ironing boards, coffee makers, complimentary newspaper delivery and hairdryers. Rates can range from $80US per night to $250US per night. The facility of a business hotel would also offer an in-house restaurant, bar, exercise room and shuttle service to nearby airports. Limit concierge assistance is often included as well as room service, laundry and dry cleaning and wake-up calls. Luxury hotels are known for their lavish decor and extraordinary service. With superior amenities, accommodations at luxury hotels are designed to thoroughly pamper and impress guests. According to a Business Week Online article, those in the luxury market are getting harder to please stating that luxury goods and service providers can't afford to blunder with the level of service and customer experience they provide. For this reason, many luxury hotels go far beyond the norm by providing a lifestyle experience equal to or better than what guests have become accustomed to at home.

Luxury hotels frequently offer full-service day spas, five-star restaurants staffed by

world-class chefs, ballrooms, lavish pools, golf packages and guest services that are unsurpassed by any other class of hotel. In addition, luxury rooms generally include those amenities found in business class hotels plus in-room safes, goose down comforters and pillows, marble showers and tubs, larger rooms, separate sitting or living area and fog-free bathroom mirrors. Rates can range from $129US per night to $2,000US per night. Rates vary greatly depending on location and proximity to popular events and attractions. There are other classifications of hotels , however, most will fall into one of these three or a combination of these three. With the lines between business and personal becoming more blurred, many entrepreneurs and business executives will attend conferences or embark on business trips with family in tow. Hotels are aware of this common occurrence and have become adept at providing facilities and service both business and recreational travelers enjoy.

Introduction
Designing integrated the most powerful ways to ensure the creation of value for customers and profitability for owners. In todays competitive environment, highperforming organizations have learned how to deploy human- resources (HR) practices to enhance competitive advantageThe most successful firms create a bundle . of employee practices that are customer focused, are aligned with each other, and reinforce the organizations strategic position. Innovative hotel companies are developing their human-resources practices to help build and sustain organizational effectiveness. In a comprehensive study on best practices in the lodging industry conducted by professors affiliated with Cornell Universitys hotel school, a select group of companies was identified as being notable for their human-resources efforts. In this paper we have examined five categories of HR best practices on the specific practices adopted by champions. The five categories of best practices are: (1) Leader development, (2) Training and knowledge building, (3) Employee empowerment, (4) Employee recognition, and (5) Cost management.
In addition, we present the practices of three champions who devised comprehensive practices that incorporated many different types of HR practices. We provide an overview of the human-resources champions and their practices and discuss the practices benefits and then conclude with the insights and advice of the practice champions to assist those who may want to adapt and improve a practice for the benefit of their own firms. In the best-practices study the largest number of champions was in the area of human resources. This finding is not surprising given the central role that employees play in successful hotel operations. The champions in human resources identified by peer organizations and managers are listed with a brief description of the practice and the name and address of a contact person. The goals of the management development practices of Choice Hotels, Marriott International, Motel 6, and Day Hospitality are to ensure that their future leaders develop essential skills and competencies and, furthermore, that the pipeline of future leaders remains full. Two of these champions Choice Hotels and Marriott Internationaldeveloped comprehensive, chain-wide leadership-development programs.

Research
As understood by outcome of several studies, employee loyalty and efficacy are core reasons behind the success and superiority of several hotels. We have taken into consideration the HR policies of three hotel chains in India that are considered amongst he best hotels within the country and abroad. In accordance to Business outlook, Taj is ranked as 3rd , ITC as 5th and Oberoi as 15th best employer. TAJ Group of Hotels: The Taj Group of Hotels is run by IHCL, a part of the Tata Group. IHCL was founded by Jamsetji Nusserwanji Tata on April 1, 1902. The hotels in the Taj Group fall into three categories hotels owned by IHCL and its subsidiaries; hotels owned by associate companies; and hotels with third party management contracts in which IHCL has no stake In March 2001, the Taj Group launched an employee loyalty program called the 'Special Thanks and Recognition System' (STARS). STARS was an initiative aimed at motivating employees to transcend their usual duties and responsibilities and have fun during work. This program also acknowledged and rewarded hard working employees who had done excellent work. The Taj Group had always believed that their employees were their greatest assets and the very reason for the survival of their business. In 2000, to show its commitment to and belief in employees, the Taj Group developed the 'Taj People Philosophy' (TPP), which covered all the people practices of the group. TPP considered every aspect of employees' organizational career planning, right from their induction into the company till their superannuation. TPP offered many benefits to the Taj Group. It helped the company boost the morale of its employees and improve service standards, which in turn resulted in repeat customers for many hotels in the group. Some of the key points of the Taj Charter are given below: Every employee of the Taj Group would be an important member in the Taj family. The Taj family would always strive to attract, retain and reward the best talent in the industry. The Taj family would commit itself to formal communication channels, which would foster transparency The Taj Group introduced a strong performance management system, called the Balanced Scorecard System (BSS) that linked individual performance with the group's overall strategy. BSS was based on a model developed by Kaplan and Nortan , and focused on enhancing both individual as well as enterprise performance. BSS measured the performance of employees across all hierarchical levels against a set of predefined targets and identified their variances. STARS, operative throughout the year (from April to March), was open to all employees across the organization, at all hierarchical levels. It aimed to identify, recognize and reward those employees who excelled in their work. STARS was actively promoted across the group's 62 chain of hotels and among its 18,000

employees globally, out of which 15,000 were from India. STARS had five different levels. Though employees did not receive any cash awards, they gained recognition by the levels they attained through the points they accumulated for their acts of kindness or hospitality. 'Level 1' was known as the 'Silver Grade'. To reach this level, employees had to accumulate 120 points in three months. To attain 'Level 2', known as the 'Gold Grade,' employees had to accumulate 130 points within three months of attaining the silver grade. To reach 'Level 3', called the 'Platinum Grade', employees had to accumulate 250 points within six months of attaining the gold grade. To attain 'Level 4', employees had to accumulate 510 or more points, but below 760 points, to be a part of the Chief Operating Officer's club. 'Level 5' which was the highest level in STARS, enabled employees to be a part of the MD's club, if they accumulated 760 or more points. Points were granted to employees on the basis of parameters like integrity, honesty, kindness, respect for customers, environmental awareness, teamwork, coordination, cooperation, excellence in work, new initiatives, trustworthiness, courage and conviction, among others. Suggestions by employees that benefited the organization fetched them significant points (Refer Exhibit III). Such suggestions in each hotel of the Taj Group were examined by the General Manager, HR Manager and training manager of the hotel the employee worked in. The suggestions could also be posted on the web, which were constantly monitored. Employees could also earn points through appreciation by customers, 'compliment-acolleague' forums[1] and various suggestion schemes. Employees could also get 'default points' if the review committee did not give feedback to the employee within two days of his/her offering a suggestion for the betterment of the organization. In such cases, the employee concerned was awarded '20 default points.' Hence, in an indirect manner, the system compelled judges of the review committee to give feedback to employees as early as possible. STARS helped employees work together as a team and appreciate fellow employees for their acts of kindness and excellence. It enhanced their motivation levels and led to increased customer satisfaction. In one case, a bellboy in one of the group's hotel who received an American customer went out of his way to care for the customer. Noticing that the customer, who had arrived late at night, was suffering from cold, he offered to bring him a doctor. However, the customer refused the boy's offer. The bellboy then, on his own, offered a glass of warm water mixed with ginger and honey, a traditional Indian home remedy for cough and cold. The customer felt surprised and also happy at the bellboy's gesture. He left a note of appreciation for him, which added to his existing points. According to the number of points accumulated, employees would receive a star, which could be pinned on to their coat. When a certain number of points were collected, employees received gift hampers, cash vouchers or a vacation in a Taj Hotel of their choice in India. The winners of STARS were felicitated at a function held in Taj, Mumbai. The winners' photographs were displayed on a big screen at the function and they received awards given by the MD of the Taj Group. This awards ceremony significantly boosted their morale.

The STARS program had generated lot of attention among the employees at the Taj Group. During the initial phase, not every hotel seemed to be serious about adopting STARS, but after the first awards ceremony was conducted, every hotel in the group reportedly became very serious about the implementation of STARS. Reportedly, customer satisfaction levels increased significantly after the implementation of STARS. Commenting on the success of STARS, Martyris said, "After the campaign was launched, a large number of employees have started working together in the true spirit of teams and this helps us value our human capital. There are stars all around us but very often we look only at stars outside the system. Many employees do that extra bit and go that extra mile, out of the way to dazzle the customer satisfaction with employee recognition. Employee recognition is, hence, directly linked to customer satisfaction. It is recognition for the people, of the people and by the people." STARS was also used by the group as an appraisal system, in addition to its regular appraisal system. ITC Group of Hotels: ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974.In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. ITC's hotel division, known as ITC hotels is one of the leading and fastest growing hotel chains in India. ITC hotels, together with the Welcome group (known as ITCWelcomeGroup of hotels) have a chain of more than 70 five-star hotels across sixty places in India. ITC hotels are the pioneers for various practices and landmarks in the hospitality industry. Communication of Company Plans All major business developments and decisions involving expansion, growth and financial performance of the organisation are shared with employees and other stakeholders through several communication media and platforms. These include ITC News, the corporate house journal which reaches out to all employees within the organisation and Intranet portals like the Learning Curve, Manthan and Bhadranet. Senior managers of the Company visit each location to communicate business plans to help align employees aspirations and efforts with corporate and business goals. ITC Hotels has institutionalised Departmental Open Fora. All employees of a department meet once every quarter under these fora to formally discuss issues relating to productivity, service and working conditions.

Employee Benefit Schemes ITC has a number of employee benefit schemes that go much beyond what is legally mandated. One of these is the post retirement non-contributory pension, which was launched in 1986 as a platinum jubilee gift for unionised employees. Some of the other employee benefit options in this category include the Family Hospitalisation Assistance Scheme, Welfare Assistance, Accident Relief, Emergency Relief, supply of uniforms to all unionised employees, and in some locations, also to management staff. ITC also offers Housing Loan Assistance, Educational Assistance and coaching classes for employees children at Munger, Saharanpur, Chirala, and Anarparti, career guidance for employees children at Kidderpore and the Head Office in Kolkata. Recreation Clubs have been set up at Bengaluru, Kidderpore, Munger, Bhadrachalam, Tribeni and all ILTD locations. There are ITC-aided schools in remote locations like Tiruvottiyur, Munger, Saharanpur, Tribeni and Bhadrachalam. ITC has set up subsidised canteens in factories and other establishments and co-operative stores at some of its locations. Co-operative societies in most ITC establishments promote thrift and provide loans on nominal interest charges. ITC-Welcomgroup runs a premier hotel management institute, the Welcomgroup Graduate School of Hotel Administration at Manipal in Karnataka. It is run in association with the Dr TMA Pai Foundation, affiliated to the Manipal Academy of Higher Education (MAHE), a deemed university. The institution runs a 4-year Bachelor of Hotel Management programme and is considered a leader in this field. ITCs Hotels Business also runs the Welcomgroup Hotel Management Institute at Gurgaon, near Delhi. Human Rights All relevant principles and guidelines pertaining to human rights, as prescribed by the International Labour Organisation (ILO), have been enshrined in the Indian Constitution. These form the bulwark of the different labour statutes prevalent in our country that guide our operations. In the management of businesses and operations that create economic value for the nation, ITC scrupulously adheres to all the applicable laws and regulations at all levels. The Factories Act and the Shops and Establishments Act forbid the use of child labour. All ITC Units strictly comply with this policy. According to ITCs standing instructions, anybody who has not completed eighteen years of age cannot be employed. The policy is enforced not only through the Companys Human Resources function, but also, through the Companys security system that prevents minors from entering any ITC premises to work. ITCs labour policies and work culture encourage freedom of association across different classes of employees and do not allow for any form of discrimination or forced labour. ITC conducts its disciplinary procedures in strict conformity with the principles of natural justice and in accordance with the Companys Standing Orders and Standing Instructions at each business location. Maintaining absolute neutrality in dealing with peoples grievances and ensuring

natural justice are the cornerstones of ITCs interaction with its people and confidential handling of employees grievances. Compliance with statutes and corporate policies is regularly monitored by the Corporate Internal Audit function, external statutory auditors and relevant statutory authorities, who are responsible for ensuring the framing, implementation and monitoring of these statutes. ITC is committed to ensuring a gender-friendly workplace in order to: Provide equal opportunities for men and women Prevent/stop/redress sexual harassment at the workplace Guarantee good employment practices ITC set up a Committee in 1999 to enquire into complaints of sexual harassment, if any, and to recommend appropriate action relating to complaints that are substantiated with adequate evidence. Men and women are equally represented on this Committee. The Committee, which is headed by a woman, also has an NGO representative. OBEROI Group of Hotels: Oberoi Hotels and Resorts, a leading player in Asia's hospitality sector, was founded in 1934. A part of The Oberoi group, Oberoi Hotels and Resorts are ranked amongst he top 10 players in the global hospitality industry. The Oberoi group has 32 hotels in five countries under the two brands of Oberoi Hotels and Resorts and Trident Hilton. Oberoi Hotels and Resorts are known for its services, luxury and services throughout the world and enjoys the loyalty of its customers. The Oberoi Group employs more than 12000 employees across the world. Selected after tough and thorough recruitment processes, Oberoi Group has a well trained and groomed staff, committed to excellence and quality services. The group also has The Oberoi Centre of Learning and Development (OCLD), for the training and development of its employees. Recruitment activities are conducted very year for training programs in OCLD and for various other specialists and support functions. The Oberoi Group employs more than 12000 employees across the world. Selected after toughand thorough recruitment processes, Oberoi Group has a well trained and groomed staff,committed to excellence and quality services.The group also has The Oberoi Centre of Learning and Development (OCLD), for the trainingand development of its employees. Recruitment activities are conducted every year for training programs in OCLD and for various other specialists and support functions.

PEOPLE PHILOSOPHY: Key Principles

Organisation structure and meaning: Organisational structures are lean, with a minimum number of levels and with clear individual reporting and accountability. Recruitment and selection At every level of the organization, people of the highest quality and with the highest potential to advance business are selected. Performance appraisal To inculcate a culture of personal growth and organizationalexcellence based on principles of performance based results. Learning and development They aim for world class managerial and technical excellenceusing continuous learning and development to support the business and encourage growth fromwithin. Career development We will provide careers, not merely jobs, to our people, throughdeveloping them in ways where organizational needs are matched with personal strengths and potential. Succession planning Our focus on development of people will reflect our internationalcharacter and ensure that we have the right number of employees with the appropriate skills inthe right place at the right time. Training Transfers, national and international, will be based on organizational needs andcareer development requirements of the individual. Compensation Our compensation philosophy will enable us to recruit and retain the best andthe most highly motivated talent, and will encourage the highest level of performance amongstour employees through result based reward and recognition, and be related to the Companysoverall business performance. Employee relations To create preserve and open harmonious environment in whichemployees at all levels will want to give off their very best in delivering world class service atthe highest level of productivity. Retention Retention of talent is the key management responsibility as is separation of thosewhose performance is consistently below par or who breach the accepted ethical

standards andrules of conduct

Employee Motivation
Management structures and styles: Hotel management structures, along European lines, have traditionally been hierarchical and segmented,with clear divisions between departments and little upward communication.Costs,inefficiencies and inflexible guest services have often been the result. A Service First philosophy demands close inter-departmental relationships (especially between housekeeping and front office) and the effective inclusion of employees in some levels of decision-making and problem-solving. Those hotels which have embraced the concept have generally aimed to reduce management levels,adopt new managerial styles and improve both horizontal and upward communication channels. Some have removed management levels,encouraged existing managers to act as mentors,trainers and monitors,and instituted supervisor-employee meetings and hotel newsletters.As examples,the Penang Resort and the Jakarta International have attempted to adopt management styles which combine necessary control with employee involvement or empowerment,and improved existing communication channels.Quality circles and,in some instances,total quality management programmes,have been implemented to encourage employee ownership and allow for upward feedback. The Seaview Resort,as earlier mentioned, has tried to encourage greater employee communication by conducting a series of small,work group meetings.

Best Practices
However, the greatest impact on both service quality and productivity in hotels is likely to derive from efficient and effective Human ResoUrce practices. The physical environment is both the arena for guest service and the workplace of hotel service-providers.Thus its design should reflect both ambience and utility.This can be achieved by the involvement of hotel managers,front office and housekeeping staff at design phase as well as during subsequent renovations.Physical structures can also reflect national environments or emphasise guest purposes. Room design similarly can satisfy guest expectations as well as improve employee productivity. Management structures appear to be changing from traditional hierarchies to leaner,service-focused,levels,improving communication with front-line employees and providing more personalised and more efficient guest service.Some hotels have removed middle-management levels,others have adopted inverted pyramid, Service First structures. Management styles inform or reflect structural changes,with the preferred mixtures of centralised and decentralised control,including, in some cases, substantial employee empowerment. Guest and employee feedback is both encouraged and actively sought in the best hotels and subsequently used to remedy problems or adapt to changing guest expectations. The achievement of service excellence and productivity standards is ensured by integrated and comprehensive HR practices, including effective recruitment techniques; training and development programmes; appraisals, incentive and reward schemes; job enlargement and niulti-skilling systems.

Consequences Of Failure
Human Resources (HR) Planning is integral to the efficient running and continued success of businesses, enterprises and even start-up companies. At times, many corporations and business owners due to circumstances, certain business factors or extraneous issues have a badly mismanaged top management tier and inconsequential HR departments. The resultant poor human resource planning has an immediate and long-term impact on organizational functioning, employee recruitment and management policies and corporate profitability.Following are some points which may lead to failure in their management Poor HR Planning and Management An incompetent and poorly functioning human resources department reflects the overall state of affairs of an organization and its possible uncompetitive position in the marketplace. There is a disconnect between the HR department and the executive management leading to miscommunication, poor decision making on operational aspects and critical mistakes. Employee training and development programs are not properly budgeted for and hiring practices are skewed. Bad HR planning ensures that the HR assets of the organization are not aligned to organizational goals and objectives. Unmotivated Employees The indifferent attitude of top management and HR quickly filter across organizational levels and employee hierarchies. Work ethics get affected, there are personality conflicts and teamwork becomes non-existent. There is gross underutilization of skills and capabilities of experienced employees. Other talented professionals are not groomed in a generally negative working environment. Poor motivation and lack of incentives and recognition lead to poor performance and even production of poor quality of goods and services. Employee Demand-Supply Mismatch Recruiting and selecting employees is a continuous cycle. Based on business growth, expansion plans and requirements for specific projects and assignments, employees need to be hired. In a mismanaged organization, HR personnel with a lackadaisical attitude and lack of communication with departmental managers and supervisors are hard-pressed to address workforce requirements. Vacancies and job postings don't get filled in time and key business functions and operations get affected--having a knockon affect across the organization.

Higher Staff Turnover Poor human resource planning begins to reflect on the corporate ethos of an organization. The working culture is affected and is generally negative. Performance reviews and performance appraisal systems are badly managed and employees uncertain about their immediate and future prospects. Employee safety practices and working conditions can be compromised at factories and manufacturing facilities. Poor working conditions force many workers to quit. Many other employees are also forced to leave the organization. Impact on Bottom Line A dysfunctional HR roadmap or ineffective HR management strategy has long-term consequences for an organization. It affects the performance of a business and the productivity levels of employees.Customer service on all fronts gets affected. The loss of customers and medium-term revenues is quite immediate.Over a period of time, the freefall leads to an impact on the bottom line of an organization.

Summary and Conclusions

This project aimed to review the approaches of a selection of five-star hotels in our nearest region, to service excellence, productivity and human resource management practice. It was to serve as a framework for a subsequent broad study of comparable Australian hotels, and ultimately to establish benchmarks for best practice. The relatively small sample of hotels studied, and their diverse national environments and labour market features preclude comprehensive conclusions, but the study does raise several pertinent issues for all hotel managers. All hotels in the future will need to recognise that their guest markets are constantly changing in response to international economic conditions, regional competition and governmental tourism strategies. Competition will increasingly be internal, between five, four and three star hotels, as well as regional. It is therefore crucial that each hotel continuously defines its unique features, present and future guest markets, and develops appropriate strategic marketing plans to maintain competitive advantage. Additionally, governmental tourism strategies and industry support will be essential, in both promotional campaigns and infrastructure development. Australia and Singapore presently have advantages over Malaysia and Indonesia in both these areas, but this is likely to change rapidly in future. The Singapore Productivity 2000 movement and the Indonesian self-funding tourism promotion charge may provide useful precedents here. Malaysia and Indonesia have considerable advantages in the availability, attitudes and costs of hotel labour. Australia will require creative industrial relations strategies to realise the opportunities offered by award restructuring and enterprise agreements to redress this significant imbalance. They will undoubtedly need assistance from government and industry associations in this process. However, as illustrated by several of the case-studies, hotel managers themselves will also need to grasp the nettle of change, involving reviews of the physical environment of their hotels, management structures and styles, definitions of service quality and productivity, their monitoring and measurement. The physical environment is both the arena for guest service and the workplace of hotel service-providers. Thus its design should reflect both ambience and utility. This can be achieved by the involvement of hotel managers, front office and housekeeping staff at design phase as well as during subsequent renovations. Physical structures can also reflect national environments, as in Bali and Penang, or emphasise guest purposes, as in Jakarta and Singapore. Room design similarly can satisfy guest expectations as well as improve employee productivity.

Management structures appear to be changing from traditional hierarchies to leaner, service-focused, levels, improving communication with front-line employees and providing more personalised and more efficient guest service. Some hotels have removed middle-management levels, others have adopted inverted pyramid, Service First, structures. Management styles inform or reflect structural changes, with the preferred mixtures of centralised and decentralised control, including, in some cases, substantial employee empowerment. Guest and employee feedback is both encouraged and actively sought in the best hotels and subsequently used to remedy problems or adapt to changing guest expectations. The achievement of service excellence and productivity standards is ensured by integrated and comprehensive human resource management practices, including effective recruitment techniques; training and development programmes; appraisals, incentive and reward schemes; job enlargement and niulti-skilling systems. The most successful hotels in this study appear to be those which have clear visions, dynamic marketing strategies, comprehensive guest service and employee satisfaction systems, regardless of national environment.

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