Question

Incorporated by the founder of the Tata Group, Jamsetji Tata, the company opened its first hotel,
the Taj Mahal Palace, in Mumbai in 1903.
For over a century, The Taj Mahal Palace, Mumbai, has remained an iconic flagship and has set a
benchmark for fine living with exquisite refinement, inventiveness and warmth. Indian Hotels
Company Limited (IHCL) has a portfolio of 170 hotels, including 25 under development, in over
eighty locations in twelve countries spread across four continents.
IHCL is amongst South Asia’s largest hospitality companies by market capitalization and represents
a global hallmark of quality in hospitality.
The Tata Group owns hotels in India and all over the world and in order to effectively control
its hotels systems the management have put the following in place:
• Hotel room key cards
• Security alarm systems
• Inventory control
• Hotel management systems
• Financial controls
According to your understanding of organisational control explain what is meant by the
following:
a) Planning, organising, coordination and controlling [25 marks]
b) Explain how the above control systems can be used to monitor, measure, and evaluate
the Tata Group Hotel Systems? [25 marks]
c) Give five purposes of control systems used by TATA Hotels and how staff are made
to contribute to their success? [25 marks]
d) Describe the steps in organisational control and explain why corrective action is
important? [15 marks]
e) Give three financial ratios which can be used in Financial controls and their use? (10
marks) [100 marks]

Answer 1

a)

Planning:

It is the basic management function which involves deciding in advance what is to be done, when is to be done, how is to be done, who is going to do it. It is an intellectual process by which an organisation paves the bridge between where they are and where they want to go. It helps to peep into the future so that various alternatives can be thought of to deal with various situations. It involves deciding the objectives to be achieved and selecting the ways and means of achieving the objectives.

Organizing

Organising is the process of identifying and grouping the work to be performed, defining and delegating the responsibility and authority and establishing a pattern of relationship for the purpose of enabling the people to work most effectively towards the attainment of common objectives. It is a managerial process by which the role of each individual members are defined towards the attainment of organizational obejctives. It is inevitable for the smooth funcationing of any enterprise.

Coordination

Coordination is the unification, integration, synchronization of the efforts of group members for the achievement of common goal. According to Mooney and Reelay “ Coordinations is orderly arrangement of group efforts to provide unity of action in the pursuit of common goal.” It is the integration and synchronization of responsibilities of various members to ensure effective utelisation of resources to achieve common objectives.

Controlling

It is the function of management which helps to check errors to take corrective actions. It is the process of comparing the actual performance with the standard performance to ensure that the activities are performed according to plans and if not then taking corrective measures. Controlling is a managerial function to ensure that activities in an organisation are performed according to the plans.

b)

Hotelroom key cards

These cards are use to authorise the guest to access certain areas of hotel premises aloong with their room. As these crads are electronic, it will help to track and identify easily the facilities used by the guest and its duartion. which will eventually helps to record and prepare bills.

Security alarm system

This is used to detect and prevent unauthorised access or entry into some arears. This will improve the safety and security of customers and employees.

Inventory control

Inventory is one of the most important current asset which must be managed well to ensure uninterrupted availability of inventory and at the same time to reduce blocking up of capital.

These two objectives are contradictory, so it is important to introduce inventory control system.

Hotel management system

This will helps to automise all functional areas of hotel management. Can reduce the number of employees and to give fast services to customers. Satisfied customers will be an asset for this organisation.

Financial controls

To get a good return on investment, finance must be controlled. With the effective installation of financial control they can ensure financial adaptability and liquidity while offering high returns to investors

c)

1. Reduce cost of operation : The only one way to compete in the industry is by reducing its cost of operation.

2. Provide fast and better service: This system will help to provide services very fast

3. Ensure safety

4. Increase profit

5. Keep proper records

d)steps in control process

1. Fixing the standards

2. Measuring the actual performance

3. Compare the actual with the standards

4. Take corrective action

5. Follow up

e)

Gearing ratio : this ratio is used to measure the risk in investment. it shows the relation between debt and equity. if the firm is highly geared the risk will be more.

Liquidity ratios : These ratios are used to measure the ability of a firm to raise fund to meet short term finance requirements.

profitability ratios: these ratios are used to measure the financial performance of a firm.