BAHRIA UNIVERSITY ISLAMABAD BBA 1, Management Final Project ON
Pearl Continental Hotel Rawalpindi
“Human Resource Management Project”
Group Members: n Usman Qureshi n Syed Harris Laeeque n Waris Salman n Zain Ali Shah n Yasir Sultan BBA 1 -C
n n n Acknowledgment “IN THE NAME OF ALLAH THE MOST MERCIFUL AND BENEFICENT” First and foremost gratitude to Al-Mighty ALLAH the most merciful and beneficent, who created human being, bestowed him wisdom to seek knowledge of various sciences and spread it among others to make the world happier and prosper. We have no words at our commands to express our deepest sense of gratitude of Al-Mighty ALLAH who enabled us to complete our project against all odds. We acknowledge the untiring efforts of our teachers especially Madam Amina, who has been a beacon of light for us. She broadened our horizons by allowing us to research on our own and gave us free will to write whatever we wanted to. We also thank her that she taught us to analyze things on the basis of facts, figures and ground realities. We would also like to thank all those people who helped us during this project. We are great full to all those who helped us and participated in the surveys. And at the last but not least most important of them all our parents we all thank them for their prayers and patience for letting us doing all the work by ourselves.
n n n Group Profile Hashoo Group of Companies was established under the leadership of Mr. Sadruddin Hashwani. In a period of some three decades he through his single handed dedication and commitment to the Profession has transformed this Group in to a leading industrial group of Pakistan, well known for its forward-looking approach, and highest standards of quality and integrity. Starting with Cotton Trading, Hashoo Group of Companies today boasts the only chain of Five -Star Hotels in Pakistan namely The Pearl Continental Hotels chain and the Karachi Marriott and the Islamabad Marriott Hotels with presence in all the provincial capitals and the Federal Capital except one. Today, Hashoo Group of Companies besides hotel industry encompasses oil and gas exploration, mining, ceramics, pharmaceuticals, tourism and travel. It also has considerable investment in real estate. Mr. Sadruddin Hashwani with his keen eye on the future is now guiding the Group to enter the field of Information Technology (IT). Towards that end a wholly owned subsidiary of the Group known as Net 21 (Pvt) Ltd is currently operating as Internet Service Provider, which is planned to serve as springboard to launch substantive IT projects. The oil and gas exploration is being done under the Orient Petroleum Inc, which has recently met with successful find. The Group is constantly on its forward march. Some examples of it are: The construction of Pearl Continental Hotel Bhurban in the picturesque Murree hills, Construction of new wing called Atrium Wing of The Pearl Continental Hotel Lahore equipped with the most modern amenities, Continual upgradation and modernization of Pearl Continental Hotels and Islamabad as well as Karachi Marriott Hotels, Acquisitions of the state-of-the-art Ceramics Factory to design and produce crockery and a plant known as Gelcaps to manufacture halal gelatine capsules for the pharmaceutical industry according to the most stringent quality standards. Mr. Hashwani’s Vision knows no bounds and it will be difficult to predict as to what will be his focus of attention tomorrow. For him time is short and the Art is long. Therefore, his philosophy is that each moment of life should go towards advancement of cause of humanity at large. Mr. Hashwani runs Hashoo Foundation whose sole objective is to engage in philanthropic projects in support of social and cultural causes and for the uplift of the deprived. Through this Foundation he not only fulfils his corporate responsibilities but also more importantly his unwavering commitment to promoting the good of common man.
n Pakistan Services Limited was incorporated in 1958 as a Public Limited Company and is quoted on the Stock Exchange. It owns and operates the Pearl Continental Hotels (formerly Inter Continental Hotels) and is recognized as the largest and oldest hotel company in Pakistan. Pearl Continental Hotels is the first Pakistani chain which has achieved excellent international standards of quality products and services. In recognition of its high standard, the Pearl Continental Hotel, Karachi was conferred the prestigious membership of the "Leading Hotels of the World", an exclusive global organization of deluxe hotels established in 1928. Pearl Continental Hotels, beside in -house reservations network, are also linked with Utell International to have international exposure and overseas reservation network. Investment in people and human resource development is an ongoing process in the Hashoo Group. New management concepts and intensive training programs have been introduced at all levels of supervisory and managerial positions through establishment of an in-house Training School located at Pearl Continental Hotel, Bhurban. The Training School looks forward to imparting systematic and scientific knowledge of the operations of both tourism and hospitality business. Pearl Continental Hotels have become synonymous with a tradition of personal services, efficiency, convenience and guest satisfaction. n n n n
n Mr. Sadruddin Hashwani hails from an illustrious family of Karachi. In 1960, he entered the business of cotton trading and through his hard work and genius he within a decade emerged as a prominent businessman on Pakistan’s Industrial scene. Within a short span of 10 years, Mr. Hashwani was at the pinnacle of cotton business and was rightly known as the ``Cotton King” being top exporter of cotton, besides rice and other commodities n In 1972, Mr. Hashwani diverted his attention to other business ventures in diverse areas such as hoteliering, real estate, trading, and property development. Again he made history when in less than a decade, he earned the reputation of a highly successful hotelier. n In 1978 and 1981, he consecutively built Holiday Inn Hotels first at Islamabad & then at Karachi under the banner of Hashwani Hotels Limited. In 1992, these hotels were totally revamped and refurbished to qualify for the well-known international 5 -Star hotel chain Marriott. The Islamabad Marriott and the Karachi Marriott to day enjoy the same reputation as any other highest-class hotel anywhere in the world. n
n Corporate Profile: Board of Directors Mr. Sadruddin Hashwani. Mr. Murtaza Hashwani Chairman Chief Executive Ms. Sarah Hashwani Mr. Vazir Ali F. Mohammad Mr. Syed Sajid Ali Mr. Mansoor Akbar Ali Mr. Shiraz Noordin n Audit Committee. Human Resource and Recruitment Committee Mr. Sadruddin Hashwani Ms. Sarah Hashwani Mr. Vazir Ali F. Mohammad. Mr. Sadruddin Hashwani Mr. Murtaza Hashwani Mr. Vazir Ali F. Mohammad Mr. Mansoor Akbar Ali Mr. Shiraz Noordin n Compensation Committee Mr. Sadruddin Hashwani. Ms. Sarah Hashwani. Mr. Vazir Ali F. Mohammad n Company Secretary Chief Financial Officer Mr. Mansoor Akbar Ali. Mr. Shiraz Noordin n Bankers Auditors Habib Bank Limited National Bank of Pakistan PICIC Commercial Bank Limited Saudi Pak Commercial Bank Ltd. Union Bank Limited. Taseer Hadi Khalid & Company. Chartered Accountants n Legal Advisor Liaquat Merchant & Associates n Registered Office. Credit Rating Agency A-9 Mohammad Ali Bogra Road Bath Island, Karachi, Pakistan Tel : 0215872941 -4 Tlx : 21259 HOTEL PK Fax : 021 -5879872 -73 http: //www. pchotels. com. pk http: //www. hashoogroup. com. pk http: //www. pchotels. biz http: //www. hashoogroup. biz JCR-VIS Credit Rating Company Limited n
n GOALS/ OBJECTIVES: n Customer service: Training: Profitability: Growth profile: Compatibility: Traditional hospitability: Environment of professional enhancement: n n n
n n n n n n n n VISION/MISSION: We are committed to dynamic growth and service excellence built upon our heritage of traditional hospitability. We strive to consistently meet and surpass guests, employees and other stake holder’s expectations. We feel pride in making efforts to position Pakistan in the forefront of the international arena. Corporate culture: Innovation: Listening and two way interaction Participation Encouragement Motivation Enterprise Initiative – Growth and development for all: Competence and contribution as the only basis for job security. Promotion from within Learning environment and opportunities Provision for world class education and training Aligning people with latest trends. – Trust: Cooperation Support Teamwork Sense of ownership Empowerment Integrity Dignity Respect Candidness – Recognition Reward: Achievement orientation Performance based evaluation Appreciation Incentives Setting ever-rising standards of performance.
n Introduction to Pearl Continental Hotel R. W. P: n Only ten minutes drive from the airport and in close proximity to the down town shopping centers, the PC Hotel is the city’s only deluxe hotel, which caters to local and foreign travels in style. The hotel’s 200 guest rooms, with the exclusive suites, deluxe suites and the presidential suite, have been tastefully decorated and provide the guests with all the facilities and comforts, such as 30 satellite channels, 24 hrs in-house movies, international direct dialing, mini bar and exclusive electronic safes to name a few. All these go a long way in marketing the guests stay in the hotel most pleasant. In order to meet all the needs of the guests, the added facilities are also provided like for example, a mosque, airport pickup services on request, laundry, concierge, flower shop, travel agency, car rented service, valet parking, house doctor, authorized money changer, beauty salon for ladies & barber shop for men. The hotel boasts of a number of excellent restaurants while the Banquet Halls, all of which can be partitioned into three sections each, are equipped with the latest audio visual facilities, which include video projection system, overhead projectors, slide projectors, and audio recording equipment, which aid in making the meeting/seminars a complete success. The guest can also avail the hotel’s recreational facilities such as the swimming pool, tennis court & the exercise room n n n
n Nature of the Organization: The services offered by this hotel are come under hybrid category of offer. The offer consists of equal parts of goods and services. People patronize hotels for their food and their services, rooms and their services. n The services offered by the PC Hotel are: n – – Both equipment-based as well as people based. Requires the client’s presence. Meet both a personal need as well as business need. Having the objective (i. e. profit-oriented) and ownership (public limited). Business Volume: Total revenue (Yearly) = 3 Million approx. Operating expenses are 70 -80% of the hotel revenue. Non-operating expenses and depreciation are almost 10 % of the total revenue. n So the left out profit is 10 -15 % of the total revenue. n n
n Number of Employees: n The total numbers of employees working in PC Hotel Rawalpindi are more than 600 out of which 427 are permanent while remaining are on daily wages. Major portion of employees are working in F&B (food and beverage) department and housekeeping department. Because, as we know that hotel industry basically deals with restaurants and rooms, so to make and maintain their standards concerning these areas (rooms and restaurants) employees are needed. They are also needed to cook and serve food and to maintain the services in halls, to maintain rooms & services in rooms. 23 numbers of employees are working in the Human Resource Department of them 5 are working in HR Office. n Product Lines: n Product Line of PC Hotel RWP are as follow: § § § Rooms Restaurants Swimming Pool Health Club Baker’s Boutique Banquet Halls
n Overview of Human Resource Department n Introduction: n The primary objective of the Human resource Department is to provide detailed guidelines, for the various procedures, which cover the company policies for personnel, training and security i. e. , to oversee and direct all aspects of personnel operation which cover the following: Budget. Recruitment. Orientation. Training. Career Counseling/legal/employee relation. Union Contract. Review personnel policies. Review benefits/compensation etc. Develop employee security/safety measures. n n n n n
n Central Focusing Theme of HR Department: n “We Are Committed To Dynamic Growth And Service Excellence Built Upon Our Heritage Of Traditional Hospitality. We Strive To Consistently Meet And Surpass Guests’, Employees’ And Other Stake Holders’ Expectations. We Feel Pride In Making Efforts To Position Pakistan In The Forefront Of The International Arena. ” Vision statement is further broken into following to help the organization to achieve its objectives successfully. To excel in providing five star services and product quality by: Recognizing that a satisfied customer is the ultimate goal. Having satisfied and motivated associates. Positioning for changing customer needs by bringing more variety and customization to the product. Improving physical structure and equipment. Positioning the hotel to cope with upcoming competition. Providing personal example of excellence and attention. Efficiently handling of human resources to help the management in achieving hotel objectives. n n n n n
n Functions of HRM Department in PC n Main Functions: – Recruit new personnel whenever it receives Vacancy Notices from any of the department. – Imparts induction and on-going training to the employees. – Union contracts. – Review personnel policies.
n Human Resource Department This department basically deals with the matters like payroll, admin, training & development, recruitment, discipline hygiene, pay and allowances, leaves, security etc of the employees of the hotel. Slogan of HR Department PC Hotel Rawalpindi n n “Focus on making things better not bigger” n n Organizational Structure: This department is headed by Human Resource Manager assisted by Asst Personnel Manager, then Sr. Personnel Officer then Staff Oriented Officer, Sr. Training Coordinator and Sr. Time Office Supervisor this is the team, which looks after the HRM requirements of entire employees (more than 600 employees), which includes all the function of HR department.
n Tasks / Responsibilities: n Human Resource Manager: The Human Resource Manager of PC Hotel is responsible for the direction, supervision and administration of all staff other than executives. General duties of Personnel manager are as under: n Organizes and directs the efficient and timely hiring for all levels of employees, including Executive Committee Members for the Hotel. Hiring should be in conformity to companies hiring policy. n Responsibilities to include the following: recruiting of qualified candidates from all available sources, e. g. , Internal & External referrals, advertising campaigns, employment agency contacts; screening & interviewing candidates; scheduling candidate interviews with department heads; performing reference checks; making hire/no hire recommendations to responsible management; and make offers of employment and subsequent follow-up to effectively meet all manpower needs and maximize the cost effectiveness of the hotel’s operation. n Arranges computerization of HR records. n
n Organizes HR records, arranges its storage and retrieval. Ensures classified information and all personnel data are kept under proper security and confidentiality is maintained. n Interprets, administers and be the hotel representative for any personnel related bargaining agreements in effect at the hotel to ensure uniform application and cost effectiveness and to further ensure all management rights are exercised to the optimum in accordance with common sense. Handles grievances at various steps/levels. Responsible for the completion of the preparation for union contract and bargaining process. Responsible for establishing effective rapport with union officials to better facilitate administration of the contract. n Directs the administration and control of all hotel employee benefit programs and their related costs by providing assistance to the employees to explain the various employee benefits, initiating all requests for retirement benefits; preparing and submitting various benefit reports to Corporate office; and remaining cognizant of statutory requirements that pertain to employee benefit programs. n Constantly keeps in touch with the legal advisor regarding labor problems and advises corrective action to management.
n Represents & protects the hotel’s interest in labor hearings by processing and maintaining adequate records on all claims, providing information to agencies, attending court hearings, reviewing all compensation awards, disputing improper awards as necessary to insure the best possible cost impact to the hotel. n Organizes, manages and administers the hotel Wage and Salary Administration program by performing local wage surveys. Maintains all job descriptions and salary grades in an up-to-date manner; establishes and maintains employee performance appraisal programs; maintains a pay for performance increase program to ensure the hotel attracts, retains and motivates the best qualified employees while maximizing the cost effectiveness of the hotel operation. n Plans, organizes and directs the development and maintenance of employee orientation program to induct all new employees. This program is to provide assistance in the explanation and distribution of various hotel information, rules and regulations; explanation of employee benefits; and thus facilitates the smooth transition of new employees into the hotel work force.
n Develops, coordinates and maintains overall responsibility for the training activities in the hotel including seminars, training programs and outside educational programs. Continually identifies and develops hotel employees with transfer and/or promotion potential; coordinates the participation in corporate management development programs. n Develops and administers employee and community relations programs for the hotel to include employee recognition programs, service awards, and any other programs that will enhance the relationship of employees to the hotel, establish better lines of communication and equitably resolve any job related problems, and foster the best possible relationship between the hotel and the community. n Coordinates for Annual Budget for Manpower and prepares budget for Training & Development of Associates. n Up dating and preparing salary structure comparisons of hotel industry. n Organizes, directs and manages the maintenance of all personnel records according to good business practices that the hotel is in compliance with all statutory requirements.
n Coordinates and maintains the hotel’s safety programs and maintains all employee accident records, ensures regular safety/fire training seminars are held and all employees attend on a regular basis. n Directs & supervises the timekeeping office to ensure accurate, friendly and efficient keeping of time records. n Coordinates / administers discipline and grievance procedures in accordance with all statutory requirements. n Acts as an advisor to General Manager on Human Resources. n Functions as primary support to the direction of Human Resources, including activities in employment, benefits, payroll, worker’s compensation and associate relations. Implement the Hotel’s business plan and develop a Human Resources strategy in alignment with this. n 21. Create, implement and oversee the Hotel training programs and learning systems to support workforce planning and career development.
n Monitor the compliance of PC policies. n Act as consultant on associates issues and counsel managers and associates. n Provide positive relations/interact with highly diverse associates, vendors, community, agencies, clients/guest, and corporate/regional Human Resources staff. n Responsible for all office correspondence. Incoming and outgoing mail. n Responsible for the shifts and arranging the staff transports. n Keeps a close contact with law enforcing agencies and authorities in maintaining law and order in the event of special VIP visits to the hotel and functions.
He also instructs and supervises the preparation of: n n Monthly statement of the employee’s group insurance. Fortnightly report. Social security. Employee’s old age benefit records. n Minimum Experience for Employment of HR Manager: n n n HR management with knowledge of PC’s HR policies and procedures or completion of PC’s HR program. Other PC management experience with appropriate training. Basic computer skills. Certificate in Human Resource Management. College Degree. n Potential Career Opportunities: n n n HR manager larger scope, Director of Personnel Services, Director of HR. Manager HR front desk manager, housekeeping manager. Management or Department head position.
n Responsibilities of Asst Personnel Manager: n Basic responsibility of Asst Personnel manager is to assist the Human Resource Manager in all the above-mentioned duties. His duties are: n Duties and Responsibilities n Supervises and controls all administrative affairs, ensuring compliance with all Corporate and hotel policies and procedures; and local and government regulations pertaining to employment practices. Develops and implements recruiting and screening systems and procedures in order to attract most qualified candidates for position vacancies. Assists the HRM to keep a constant check on man power hiring as per authorized strengths/policies. Assists HRM to conduct interviews. Assesses needs, recommends and oversees training in coordination with the Training Manager. Counsels hotel personnel as needed in areas such as career planning, training, and development, employee relations, and legal requirements related to personnel. n n n
n Investigates and reviews all disciplinary actions to ensure union agreements, applicable laws regulations and PCH policies / procedures are followed. Consults with department heads on appropriate action and recommends to HRM final action to be taken. n Serves as a member of union contract negotiations team as directed. Actively participates in the establishing of union contracts. n Reviews personnel policies, procedures and practices recommending improvements to HRM. n Implements and monitors and effective employee relations program in the hotel. n Disseminates information affecting employer employee relations, employee activities and hotel personnel policies and programs. n Maintains and updates files on employee records, legal documents, policies and procedures and other Personnel matters. n Keeps all HR records up to date.
n Inspects regular, employee locker rooms, lockers and other employee facilities to ensure they are well maintained. Also checks the cleanliness and food of cafeteria on regular basis. n Monitors transport/conveyance facility for employees. n Participates in developing and implementing programs to ensure employee health and safety. n Monitors present and future trends, practices and systems in the personnel field and makes recommendations relating thereto. n Analyzes hotel manpower requirements and recommends selection and development activities to meet those requirements. n Oversees implementation and administration of union agreements. n Performs related duties and special projects as assigned by Human Resources Manager of the Hotel. n Assists HRM by constantly keeping in touch with the legal adviser regarding labor problems and advises corrective action to manageme
n n HRM Practices on HRM Functions Job Description n Need for a job: n As far as the creation of a job is concerned the HR Dept in PC Hotel knows that a vacant place or job has been created in any of the department. Firstly the PC Hotel has provided a list of jobs that are filled in accordance with international standards, however this is not a compulsion and depends upon the needs of the hotel management. Secondly in case a dept feels to fill in a vacancy, head of a particular department sends a requisite form to the Personnel Manager. In this form head of the department specifies whether the position is for a new employee, replacement, qualifications required and their respective justifications. This requisition form is sent to Personnel Manager and General Manager respectively for their approval. n n n The need of vacancy may also arise because of: New job creation. Replacing old retiring staff. Replacing dismissed staff. Replacing promoted staff. Replacing an employee on job rotation.
n Recruitment Media: n Mostly walk-in interviews are a part of recruitment method being followed by the HR Dept. applications are kept in separate files according to the job titles and when ever there is a vacancy suitable candidates are called for selection. HR management in PC Rawalpindi has also tried consulting Central Bargain Agents for hiring employees but it failed to come up their standards. n Selection Procedures n It covers the following aspects: - n Selection Board: n It includes: General Manager. Human Resource Manager. Asst Personnel Manager. Head of Vacant post dept. n n
n Working of Selection Board: n The methodology of this board in PC Hotel is quite different. During the process of assessment they don’t consult with each other but give their independent views about the suitability or unsuitability of a particular candidate. Walk-in interviews are open all the times and when there is a vacancy for any job in any of the departments; CVs of the candidates are consulted. n Role of HR Department: n Staff Oriented Officer short-lists the candidates for interviews and carries out their initial screening. After necessary scrutiny he verifies the eligibility of various candidates for the vacant posts. Thereafter he selects the candidates for further assessment and interviews. The selected candidates are sent to Human Resource Manager for further tests.
n Role of a Human Resource Manager: n The HR Manager of PC Hotel Rawalpindi notes the analysis result of ach on an assessment form. He takes care of following aspects during the interview / test of a candidates: Personality tests. Psychological tests. Aptitude tests. Mannerism checks. Learning capabilities. These tests are taken in an informal way where the candidate is unconscious of the fact that he is being tested. The HR Manager notes down the results on his Assessment Performa for further evaluation. The time for evaluation of a candidate varies depending upon his personality depth and capabilities. n n n
n Head of the Concerned Dept: n After evaluation by HR Manager the Head of Vacant Post’s Dept interviews the candidate where he is interviewed. The Head of the Dept also conducts technical test, related to the job. n General Manager: n The rating by HR Manager and head of the dept is strictly done by their own personal opinion. After this the General Manager assesses the result of both, calls a meeting, assessment is discussed and finally the most suitable candidate is selected for the vacancy. A few of the candidates are kept on the waiting list, so that after the probation period the unsuitable candidates can be replaced.
n Background Checks: n The candidates who are considered for a position in PC Hotel are also checked for their previous records if any. A letter of confirmation and opinion is sent by HR Dept to the previous organization to check the experience and reliability of the candidate. However personal misunderstandings and problems in the previous organization are not considered. n Medical Test: n The last test in the PC Hotel regarding the selection of a candidate is the medical test batter, which the candidate qualifies for the position.
n Job Evaluation n The higher authorities of the Hotel judge the performance of newly hired employee. After the employment the new employee is kept on a probation period where he is given training specific to his job. The probation period is maximum of 9 months and minimum of 3 months. During this period if the hired employee shows expected level of skills and abilities required by the job, his employment is confirmed.
n Development and Evaluation n Training department: To maintain its high standards, the Hotel Management organizes and conducts good quality of training of their employees. This Dept is closely assisted by HR Development (HRD) i. e. under taken by Training Manager along with an Assistant. This training is organized within the Hotel as follows: - n n n A dedicated training staff to plan and conduct the training of staff / employees. Initially the new enrolled staff is employed and observed for 3 -9 months of probation period. The employees are briefed about the house rules on their arrival. Detailed orientation of all the departments is carried out. The new employees are introduced to key people of the Hotel. On the job training is conducted and the employees are placed under a supervision of senior staff member of the particular department to watch, supervise and correct their mistakes.
Orientation: A booklet of rules and regulations is issued to each newly selected employee to introduce the basic ethics and rules of the Hotel. This ensures proper grooming and discipline. The new employee is taken around all the departments and explained about their working. He also spends some time with each department to have an overview of the Hotel’s complete way of working. Career Planning: n Career planning of the employees is one of the important stages of development and evaluation process at PC Hotel Rawalpindi, which includes: n The HR Dept of PC Hotel lays special emphasis over the further career planning of its employees who have the potential to rise. n HR planning is carried out to identify the future needs of the Hotel and steps are taken to ensure that employees are placed at the right position where their skills can be further improved or where their skills, abilities and capabilities can be fully utilized…. Best Person for the best Job. n Those who have the potential to rise further are picked up and groomed/trained for the next appointments. n Employees are also provided the opportunities to attend various long and short courses to further improve their skills. HR Dept ensures arrangement of such activities. n To make the employee familiar to the current trends and improve their skills, frequent seminars, lectures and departmental briefings are conducted.
n Performance Appraisal n Performance appraisal is the systematic description of the job relevant strengths and weakness of an individual or a group. This is given due weightage by the HR Dept keeping in view the following two major processes: Improving the job performance of employees. Providing information to the employees and managers for use in making decisions. Performance appraisal is being done on monthly basis in PC Hotel and record is also maintained. The main purpose is to create competitive environment in the Hotel. To give feed back to employees, employee of the month is selected and his credentials along with the photograph are displayed in various departments. Similarly supervisor displaying good performance is also selected and declared supervisor of the month. n n n
Purpose of the performance appraisal at PC Hotel Rawalpindi is briefly described with the help of following diagram. n Employment Decisions Diagnosis of Organizational Problems Employee Feedback n n Objectives for Training Program Purpose of Performance Appraisal Systems Criteria in Test Validation.
n Compensation and Protection This basically covers the programs that encourage and ensures reward performance. Pay system and various incentives at PC Hotel are designed to attract, retain and motivate employees; to achieve internal, external and individual harmony. It also helps the HR Dept to maintain a balance in relationship between direct and non-supervisory employees. n Pay System: n This is tied / linked to the strategic mission of the Hotel. Labor market conditions, ability to pay and skill of an employee are also kept in view while devising various pay scales. Their broad objective in developing pay system is to assign, a monetary value to each job category. Pay structure is devised to achieve comparable worth, the effect of inflation, pay compression and pay raises. n
n Incentives/Rewards n To keep an environment of competition among the employees and to encourage them for their good performance various rewards and incentives are given to them by the management. These are: Commendation awards. Honesty awards Employee of the month. Supervisor of the month. Promotion to the next rank. Cash awards. n n n
The employees are also given full advantage of the fringe benefits such as: n n n n n Transportation. Free meals during working hours and free laundry for the uniform. Free medical checkups. 15 days sick leave during the year with full pay Medical, casual and earned leaves are given as per the Govt rules. Recreation allowance. Provident Fund. Birthday cake for employees. Gratuity Bonus
n Security/Safety/Health n The HR Dept looks after its employees with regards to their health and safety/security aspects as well, which includes: - n n n n Pre-employment medical. 100 % free medical facilities are provided to the employees. Comprehensive coverage through social security Hospitals. Social security hospital cards are issued to each employee. House Doctor for medical treatment during working hours. Comprehensive group insurance. Periodic vaccination of employees. n Employees Relation / Assessment: n HR Dept in PC Hotel creates a productive and satisfactory work environment through effective employee relation. Having a check on their activities and anticipating the future challenges achieve it.
n Development of Employee’s Relation: n SOPs of the 5 properties (PC Karachi, PC Rawalpindi, PC Lahore, PC Peshawar, and PC Bhurban) are followed in his regard. Inter and intra departmental relations are developed through frequent interactions. Employees are taught how to deal with their colleagues within the dept and with other depts. Frequent training including job training is conducted to make the employees familiar with each other. Special meetings are held in case of any problems and troubles. In case of any problem, counseling of the employee is conducted through a counseling committee. Internal rifts among the employees are resolved through mutual understanding and co-operation n n n
n Employee’s Union-PC Hotel: n PC Hotel looks after its employees by allowing healthy Union activities. The Union works in a manner so as to look after the interest/welfare of the employees as well as the Hotel. n Objectives: n n To fulfill the legal demands of the employees. Help the Management in smooth running of the Hotel. Work in close co-ordination with Hotel Management. To help the Management in discipline matters of the employees. n Working Strategy: n n Demands are gathered during frequent meetings with the employees. Demands are finalized after every two years in June however demands of immediate nature are catered ASP. Demands are given the shape of a Chapter. Charter is presented to the Management. Negotiations with Management are carried out in the presence of Union reps. A central settlement is reached and agreed benefits are given to the employees. n n
n SWOT Analysis n Strengths/Scope of HR Department n Following are the strengths of PC Rawalpindi: n The whole HR department is very well and highly qualified. The higher management tries to increase the personal and professional qualification of the HR employees by holding different seminars and workshops on latest HR practices. n The hotel welcomes very much if any inexperienced person enters in HR department. Because they are of so sure about their HR department that all of the Existing Employees will try their best to train him/her for his/her future HR job. n The HR department also arranges the visits of its HR employees to the HR departments of other hotels like Marriot International Islamabad and Serena International Islamabad.
n Weaknesses: n In order to manage people effectively in today’s world of work, it is essential to understand appreciate the significant competitive, legal and social issues. The HR Dept of PC Hotel Rawalpindi has to cope with following weaknesses to help the management to achieve their objectives: n Internal weaknesses: Relationship between workforce and organization is the main challenge. HR Dept in consultation with union management has to ensure a continuous flow of good relationship between the management and employees. n Due to highly changed dynamic environments HR department has to remain current with regards to duties, skills, future needs, current trends efficiency and smooth running of the hotel. n Handling of personality conflicts among Hotel employees possessing diverse nature and habits is also one of the great challenges encountered by the HR department of PC Hotel. To overcome such type of conflicts successfully, the HR dept carries out counseling of such individuals at each level. The immediate supervisors on arising also deal with such conflicts. n
n External weaknesses: n Managing Workforce Diversity: Being run at international standards and to ensure that same nationals, PC Hotel, attend customers approaching from other countries recruits and maintains a diverse workforce. So diverse cultural workforce posses a great challenge to PC Hotel to ensure smooth relationship and work environments among the employees. n Lack of Trained Workforce: In Pakistan very few institutes are able to provide trained workforce for the hotel industry on international standards. The HR dept of PC Hotel has to recruit and select the raw material and convert it into efficient workforce. n Global Competitive Environment: Since PC is an International organization, so it has to maintain some standards through out the world. HR Dept has to play the key role to help the hotel to achieve these standards. n Economic Challenge / Govt. Policies: Impact and effects of the economic changes due to Govt. policies pose another major challenge to the HR Dept of PC Hotel. Economic changes affect the pay benefits and various financial packages, so the HR Dept has to strive hard to devise new packages. n Main Competitor: To keep the employees loyal to the Hotel and ensure their retention, the turnover rate has to be kept minimum by the HR Dept.
n Opportunities: n Following are some of the opportunities which are available to HR department in near future: As the PC Hotel is an International hotel Chain all over the world and maintaining its HR department in every set up so the employees here have chance to work in a broader prospective and gain greater experience and knowledge about latest HR practices. n In January 2005, the whole HR department is starting seminars and workshops on latest HR practices after 1 month duration. So this will provide training and development to the HR employees. n
n Threats: HRM has gained much importance in today’s time. Without proper HR Dept no organization can achieve its objectives efficiently and successfully. Although the Personnel Dept of PC Hotel performs all the duties, which the HR Dept is suppose to perform. However if faces certain problem in absence of a proper HR Dept. PC Hotel is in the process of developing HR Dept on international standards and in the period of the month or so it will be converted into HR Dept. presently the problems being faced are: n n n Present staff of HR Office is over burdened due to the fact that it has to perform all the duties of HR Dept with the same strength. The Hotel is lagging behind from the International Hotels standard that affects its performance in some areas of HRM. Performance of the HR Office is erratic at times. Erratic performance of HR Dept also results in low productivity of employees. Needs of the modern technology are not fulfilled due to the
n Recommendations and Suggestions n To help the Management to achieve its objectives successfully on the International standards following suggestions are offered: It should introduce Strategic Human Resource Management to use the workforce most wisely with respect to the strategic needs of the organization. This should cater for committed employees, uncompromising dedication to quality, developing of talented people, focus on growth and building career opportunities. To further improve the quality of work reward-based suggestion system should be designed and implemented. Progressive organizations rotate their best managers through various specialized HRM functions as a required part of their development and a way of bringing line experience to HRM problems. PC Hotel should ensure that higher level of education and experience is given to those individuals who are employed on HRM assignment. For this purpose training in HR duties should be conducted. Extensive seminars and lectures should be conducted to identify the needs before introducing the HR Dept. Apart from the walk-in interviews alternative method should also be employed to fill the vacant posts. Today emphasis is on effective use of Information Technology to reshape HR functions in order to meet the management needs. Keeping this in view the Hotel should also develop HR Information System and all the data of the employees should computerized. Alternative methods of employees’ performance appraisal should also be used. n n n n
n Conclusion n The importance of Human Resource Management in an organization cannot be denied. In case of a Hotel industry it gains more importance where a large number of diverse workforces have to be handled by the management. At PC Hotel Rawalpindi the HR Dept is providing the Human Resource Services to fulfill the management requirements smoothly and efficiently. We have concluded that in PC Rawalpindi HRM is running in a very organized and systematic manner. Through their dedication and commitment to their duties the HR Dept has made an endeavor to successfully implement the management’s policies and procedures in the Hotel.
n References Col Zulfiqar Ahmed Human Resource Manager HR Department n Attique –ur- Rehman Human Resource Coordinator HR Department n Contact numbers: 051 -556601 – EXT- 5870 -5692 n
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