CHAPTER 01

1.1. Introduction of the study

Human Resource Management is now been considered as a crucial field, that leads an

organization towards its success. People are being treated as a key resource among all

other resources, which enables an organization to gain the sustainable competitive

advantages. Employees have played a special role to achieve both career goals and

private life goals.

Therefore, among scopes of HRM, The labor turnover is a very important issue.

Employees Turnover means “as the number of employees that resign from their job in

regularly and are replaced by other people” in the sense it’ll create a lot of mismatches. If

it is there lack of efficient and effectiveness, effect to discourage of labor, therefore low

output, quality, dishonesty can be shown. As the important keeping long time

employment in performance and persistence, that the desire ability to influence

performance for horizon well establish of the organization.

1.2. Introduction of the Organization

Heritance Kandalama

An eco-friendly 5-star hotel in the heart of Sri Lanka

Heritance Kandalama is a 152 roomed 5 star hotel situated within the cultural triangle of

Sri Lanka, which is bounded by the historical cities of Anuradhapura, Polonnaruwa and

Kandy. It is the centre of the country within the triangle, where five world Heritage sites

out of the seven in Sri Lanka are located. The entire hotel building has the breathtaking

view of the Kandalama Reservoir as well as green forests on one side and Rocky

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Mountains on the other. The area where Heritance Kandalama is located belongs to the

intermediate climate zone, where farmers have the fortune and convenience of being in

sunny and warm weather during the daytime throughout the year, and having rainfalls

during the night through the monsoon season, which brings more convenience to tourists

who explore the area throughout the year.

The hotel was designed the renowned architect Geoffrey Bawa, in a very eco friendly

manner to suit the profile of the land blending harmoniously with the landscape by

staggering the structure vertically and horizontally. Eco-techniques were used during

construction and thus been awarded LEED by US Green Building Council in year 2000

as the first hotel in the world and the only building outside North America. An

Environmental management systems established in 1996 is being maintained up to date,

while continually improving. Kandalama was the First Green Globe 21 standard certified

hotel in Asia being certified in 1999. It was also ISO 14001 certified in 2002. It is

accepted as a global role model for eco friendly operations and maintenance. Kandalama

also has a food safety management system and was ISO 22000/HACCP certified in 2006.

Establishing an Eco-Park and opening it to any visitor (not only hotel guests), the general

public has access to observe, learn and practice environmentally friendly methods. The

eco park of Heritance Kandalama was awarded the PATA Green Leaf Gold Award for its

commitment to environmental education and sustainable development. Leisure and

pleasure activities are offered to meet highly diversified expectations of customers from

different parts of the World. The Six Senses Spa together with six varieties of rooms

including royal facilities in the Royal Suite, provide an unmatchable combination of three

swimming pools, dining rooms and bars in three different levels, with a 180 degree view

of the Kandalama Tank, lush green forests, the Sigiriya Rock Fortress and the Dambulla

Cave Temple. The hotel has been recognized with the CNN Ultimate Service award and

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 the Presidential Award for Best Five Star Resort in Sri Lanka for two consecutive years

for its quality in products and services.

The hotel has a highly flexible product and service delivery method based on what they

want, when they want and the way they want it, without disturbing the hotel’s life blood

of a highly sensitive environment. A myriad of daily activities including Jungle

Trekking, Horse Back Riding, Bird Watching, Jeep Safaris, Billiards, fully equipped

Gymnasium and even an Adventures Night Safari is offered to enhance the overall guest

experience in the hotel.

More than eight unique dining themes at a variety of locations, service delivery,

impressive ambience decor, sumptuous food and soothing beverages are offered with a

state-of-the-art waitlisted reservation system to meet the exclusive needs of customers.

Heritance Kandalama is designed to meet the very high standards of health and safety

with full equipped bedroom and bath facilities and the only hotel in Sri Lanka with

automobile access to the first, second and fifth floors of the building to cater to guests

with special requirements.

The hotel is owned by Kandalama Hotels Ltd, which is a subsidiary company of Aitken

Spence Hotels Holdings PLC.

1.1.1. Vision

To be the leader in our category of hospitality services in Asia whilst exceeding the

expectations of all our stake holders by providing exceptional quality in products and

services whilst developing our human asset.

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1.1.2. Mission

To delight all customers who experience our products and services while achieving

viable financial results and continuously developing our human asset.

1.1.3. Main Departments

 Front office Department

 Food & Beverage Department

 Housekeeping Department

 Finance Department

 Maintenance Department

 HR Department

 Kitchen Department

1.2.4. Human Resource Management Policy

Community Development

In order to support the neighboring community and to maintain the sustainable

development, the hotel recruits 50% of the staff among total no of employees from the

distance of 35 kilo meter radius.

Acquisition of New Blood

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 School leavers or fresher’s for occupations who carries new thinking and unspoilt

minds are assets for Heritance Kandalama. We believe that molding this youth will

benefit individual, organization, society and the country as a whole.

Fair and equity

It is a policy of human resource department to monitor and evaluate the fairness in

distribution of all remuneration to employees of the organization.

Employee wellbeing

It is a policy of Human Resource Department to looking to all employee wellbeing and

take preventing measures and corrective actions at all times

1.2.5. Human Resource Development Policy

Life Long Process

Heritance Kandalama believes that the learning is a life long process which will result

better in management of continuous improvement. We believe that people development

is not a duty but a responsibility of the organization.

Character Development

“Develop character and competence for mutual benefit”

We invest mostly on character development than the technical factors which will give

long term better results as a leading tourism organization in the world.

Learning Organization

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 As a learning organization Heritance Kandalama maintains training, development

programmes, Career guidance, goal setting to assist staff in acquiring new knowledge

and skill and sharpening existing skills and knowledge.

Responsibility

Although it is understood career development and job skills training is a responsibility

of employee and employer, the organization takes more responsibility in human

resource development as a policy of Heritance Kandalama hence the employees have

already proven that they are the most important resource for our business.

1.2.6. Best Practices

Recruitment and selection

HR department constantly monitor and advise the entire department to recruit the

employees from the vicinity and look in to acquisition of new blood to the organization

which will result in community development and organizational development with new

ideas and thinking patterns of the new recruits.

Training and Development with 46 trainers

Self development centre has developed team of 50 trainers to carry out most of the

training requirement of their own departments while one executive is dedicated to

handle and monitor other internal and external training activities in the hotel

Human Resource Department has made some compulsory training modules for all the

staff ,

 Five day orientation

 Outward Bound training

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Performance appraisal Program

Bi- annually performance management program is carried out by the HR department

which one to one appraisal is compulsory activity of the Program.

High Flyers

The hotel selects 24 high flyers for a year and one employee is selected as most

outstanding high flyer of the year

Cross Exposure Training

Any employee of the hotel has the right to request cross exposure training which will

monitor by the HR department and end in a evaluation of the cross exposure training

Programme

Document Control

The all document that should be controlled are controlled by the department to maintain

high confidentiality.

Inspirational Quotes competition

We have clearly understood that our employee are people with full of talents and it is

being recognized by bi annual-Annual Quotes competition

English Drama Festival

Employee at hospitality industry are acting without a formal stage but the hotel creates

an opportunity to be on a formal stage and perform once in three months through an

English drama to erase the stage fear and build confidence amongst our team member

Birthday Celebrations

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 The hotel recognizes their employees at their birthdays by inviting them for tea with the

General Manager

Wedding Celebrations

Hotel celebrations their team members wedding by cutting a cake and offering them a

gift voucher by the General Manager of the hotel

1.2.7. Other details about the Hotel

 Owning Company : Aitken Spence (plc) ltd.

 Address : P.O.Box 11,Kandalama, Dambulla, Sri Lanka

 Nature of the Business : Basically Providing the Accommodation,

Traveling, Food and Beverage for clients.

 Total work force : 392

 Location : 13kms east of Dambulla city

 Distance :163 Km from Colombo

 Climate Zone : Intermediate

 Commenced operation : 24th June 1994

 Architects : Deshamanya Geoffrey Bawa , Mr. Channa

Dasawatt

 Length of the Hotel : 968 meters

 E-mail address : [email protected]

 Web address : www.heritancehotels.com

 Telephone/Fax : +94665555000 / +94665555050

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  No of Rooms : 152

1.2.8. Recreational Activities of the Heritance Kandalama

 Jungle Trekking

 Bird Watching

 Eco Park Tour

 Elephant Back Ride

 Jeep Safari

 Cycling

 Horse Ride

 Night Hike

 Tennis

 Table Tennis

 Carom

 Chess

 Big Chess

 Spa Treatments

 Hot Air Balloon Flights

 Tour to Minneriya Elephant Sanctuary

 Fully Equipped Gymnasium

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 1.2.9. Mega Achievements of Heritance Kandalama

 LEED Award : First Hotel in the World.

 Green Globe : First Hotel in Asia.

 ISO 14001 : First Hotel in Sri Lanka.

 PATA Green Leaf Gold : First Hotel in the World.

 Super Brand : Only Hotel in Sri Lanka.

 7 Hotel Wonders in the World : Only Hotel in the Sri Lanka.

 Thompson Gold Award : First Hotel in the World.

 SAGA Good Food Award : Three Rosettes.

 ISO 22000 : First Hotel in Sri Lanka.

1.3. Research problem

Investigate the employee turnover in Heritance Kandalama Hotel. Labor turnover

generally high, in this investigation aim to find individual and the organizational

potential which are promote or develop the employee turnover.

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 Kandalama Hotel employee turnover has become high in the first year due to selection

criteria after analyzing the figures, in the first it was identify that annual employee

turnover is 40%( with in the first 12 months after recruiting).But after this first 12

months, turnover has come down drastically and percentage is 2%.

1.4. Research objectives

 To identify the causes for employee turnover of Heritance Kandalama

 To analysis the internal& external factors of employee turnover

 To find suggestions to minimize such employee turnover

1.5. Limitations of the study

The research study is done on few imitations.

 Basically the focus of the study is limited only to hotel industry.

 It may be difficult to achieve all the information. Because the management

would not like to give the information which are affecting to Labour Turnover and the

impact of the Labour Turnover for their business.

 Cannot achieve all the true information because human behavior different and

during the exit interview most of employees are giving forge information.

1.6. Methodology

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 Research is focused on analyzing data on Employee Turnover applicable to Heritance
Kandalama.

1.6.1. Data collection method

Following methods will be used for the data collection.

 Interviews

Above information collect from the individual interviews. The interviews based on

particular departments. HR Department / Front Office Department / Food &

Beverage Department / House Keeping Department.

 Questionnaires

Data is gathered through a questionnaire distributed among the selected sample. High

standard data design with simple language (Sinhala) Used for understanding every level

of employees easily. Reference to the HR Manager created the questionnaires for other

categories as further questionnaires make some ideas for the research problem.

 Past HR records

Data, Charts and reports obtained through the integrated HR Management System.

1.6.2. Data analysis method

The data analysis will consist of pare to analysis. The causative factors for the Employee

turnover will be examined and will find our most critical factors. Then the factors, which

dominate 60%, will be analyzed by the cause and effect diagram. Also it will find out

relevant strategies to minimize Employee Turnover in Heritance.

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