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PRESENTATIONON
MANAGEMENT CONTROL SYSTEMSIN
HOTEL LEELA VENTURE LTD
Sl.No Name Enroll No.1 ABHINAV BHUSHAN 09BSHYD00162 SYED ATEEQ AZIZ 09BSHYD10903 TANYA GHOSAL 09BSHYD09174 VARUN MITTAL 09BSHYD09605 VIVEK KUMAR BHUKANIA 09BSHYD09916 Y V SAI SHANMUKHA 09BSHYD0999
SUBMITTED TO: PROF. N SUBRAMANIAN
PREPARED BY:
INTRODUCTION
INTRODUCTION
•Founded in 1957 by Capt. C.P. Krishnan Nair
•Engaged in the business of ready-made garments and luxury hotels and resorts.
•LEELA LACE LTD - It is in the business of garments
•HOTEL LEELA VENTURE LTD - It includes the Hotels, Palaces and Resorts of
the Leela Group
•Hotel Leela Ventures Ltd is a listed entity with a market capitalization of
approximately 2050 cr.
The Leela Palaces, Hotels and Resorts -
•The Leela Kempinski Goa
•The Leela Kempinski Kovalam Beach, Kerala
•The Leela Palace Kempinski Udaipur
•The Leela Kempinski Mumbai
•The Leela Palace Kempinski Bangalore
•The Leela Kempinski Gurgaon, Delhi (NCR)
•The Leela Residences Kempinski Gurgaon
The upcoming projects includes -
•The Leela Palace Kempinski New Delhi
•The Leela Palace Kempinski Chennai
•The Leela Palace Kempinski Hyderabad
•The Leela Kempinski Agra
•The Leela Lake Asthamudi
MANAGEMENT STYLE & CULTURE
MANAGEMENT STYLE
•External Control: -
The authority of setting the targets and taking corrective actions in case of deviation lies
with the top management. It is of two types – Formal and Informal.
•Internal Control: -
The authority of setting the targets and taking corrective actions in case of deviation lies
with the person doing the job.
•Mixed Control: -
It is a kind of a mixed control being exercised. The top management sets the targets and
in case of any deviations the corrective action is taken by the person doing the job.
The management style followed by Leela Kempinski is Mixed Control where
top management sets the standards as given by the guidelines of the corporate
culture and in case there is any deviations in the service provided the corrective
actions is taken by the functional heads, as the group also believes in employee
empowerment.
This can be concluded by referring to –
•The corporate culture
•The Leela Dharma’s
• HR Policies
DEFINITION & TYPES OF MANAGEMENT CONTROL
DEFINATION
The process by which the managers influence other members of the organization to implement the organization strategies (Anthony & Govindarajan)
Control – Part of Strategy Implementation
TYPES OF CONTROL
Strategy FormulationManagement ControlOperational Control
FORMAL MANAGEMENT CONTROL
CONTROL PROCESS
CONTROL PROCESS
The main aspects of the Control process deals with:
•Risk management
•Audit Process
•Disclosures
•Capital Budgeting
RISK MANAGEMENT AND CONCERNS
•General Economic Conditions
•Socio-political Risk
•Competition from international hotel chains
•Increased Outbound travel
•Foreign Exchange fluctuation risk
RISK MANAGEMENT-LEVERAGING ON EXPERIENCE
•Risk management is an integral part of company’s business process. With the
help of experts in this field, risks are carefully mapped and risk management
framework is evolved. Pertinent policies and methods are set forth to mitigate
such risk.
•To counter risk from growing competition, the company is renovating and
continuously repositioning its properties. It is also improving its service
standards, in consultation with international experts, to provide exceptional
services consistently across all the hotels.
DISCLOSURES
•Leela group has high disclosure standards are already widely recognized. The company quite early
in its development adopted a policy of enhanced disclosure to give it a competitive advantage in
developing trust and attracting investors, counterparties and importantly, in its industry, employees.
•Content is both deep and broad, allowing shareholders to gain a thorough understanding of the
company’s and the industry’s financial health, business strategy and corporate governance practices.
Leela group discloses the aggregate remuneration paid to each full and part time director. The
company provides details about related party transactions undertaken during the year.
•The company’s website is very well designed in an elegant way and provides information about the
various departments in the hospitality industry and includes an interactive and comprehensive
investor relations section.
•Full fledged, quarterly and annual reports are published and general disclosures include Statutory
compliance, penalties and structures, Risk management, CEO/CFO certification, code for prevention
of insider trading practices as per the regulatory body norms.
CAPITAL BUDGETING
•The company’s focus is to grow as a lead hotel in the country by getting a PAN India presence and
improve the service quality. In order to achieve them, the company has been concentrating on the
budget planning and asset allocations.
•There is a strict allocation of budget for the respective hotels under Leela Ventures and pre-
determined targets for the appraisals.
•The company divisions are the profit centers and have set guidelines to be met under the budgetary
planning done by the organization.
•All the approvals regarding the capital investments are from the top management and there is
nothing which can be done without the managements go.
ORGANISATION STRUCTURE
Organizational Structure Of Hotel Leela
Security Department
Kitchen Stewarding
Purchase Receiving
And Stores
Accounts and Finance
Engineering and
Mantanence Department
Sales And Marketing
COORDINATION &
COMMUNICATION
COORDINATION & COMMUNICATION
All formal and informal communication are crucial in understanding and improving the control process. All the processes would remain incomplete without proper communication across various levels of the organizational hierarchy.
Formal Communication and coordination•Standing committees•Formal operations•Involvement Techniques•Formal Communication network Informal Communication and coordination•Based upon Trust•Simple and personal contacts and conversations•Personal memos
COORDINATION & COMMUNICATION
1. Among staff and managers (lower level) – Housekeeping
2. Communication between managers and top ManagementDaily Reports are prepared to inform top management:• Occupancy forecast• Night report• The status of each room and the percentage of occupancy and
the category of the room• Daily VIP arrivals and the VIP in-houseguest list.• The daily-anticipated departure list.• Group rooming list• Room changes• Daily arrival list
COORDINATION & COMMUNICATION
3. Communication by Top Management• Quality Circle Meeting• Monthly Meeting
4. Other ways of communication (for all purposes)• Video-conferencing • E-mail & Memos/ letters• Manuals
REWARDS
PERFORMANCE APPRAISAL-BALANCED SCORECARD
The standard model contains 5 main components:
1. The company’s vision and strategy 2. The financial perspective3. The customer perspective4. The internal business process perspective5. The learning and growth perspective
MEASURES
CRITICAL SUCCESS FACTORS (CSFS)
CRITICAL PERFORMANCE INDICATORS (CPIS)
Operation of Effective Recruitment and Selection Procedures
Customer Feedback Internal Promotions Staff Turnover Sickness and Absenteeism Levels Productivity Levels Management Observation
Provision of Regular Training for all Staff Productivity Levels
Hotel Training Plan and Records Customer Feedback Internal Promotion Staff Turnover Staff Appraisal and Assessment
Maintenance of Staff Morale and Loyalty
Guest Comments Absenteeism Staff Feedback Staff Turnover
MEASURES
CRITICAL SUCCESS FACTORS (CSFS)
CRITICAL PERFORMANCE INDICATORS (CPIS)
Reducing the Level of Staff Turnover Labour Turnover Exit Interviews
Conducting Appropriate Staff Appraisals
Low Staff Turnover
Ensuring Effective Staff Development
Staff Turnover Promotion in the Group Incentives and Rewards Attained
LEELA INITIATIVES
1) Annual Employee Satisfaction Survey2) GEMS – Guest Expectations – Manage and Serve3) Recognize High Performance – HIPO list and Skill Will
Analysis4) Leela Academy of Learning5) CSR initiatives6) Periodic Wage settlement Agreements7) No Cuts On Pay Roll
THANK YOU !
