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In this chapter Human Resource Management (HRM), Employee Relations, Conflict handling, Unions and CBA, iscipline, !articipati"e #eadership, Benefits, $raining, Moti"ation,
and Employee !erformance ha"e %een discussed& $he changing role of ER Managers in current corporate scenario, change management and the significant impact of some employee relation practices on performance of employees are also discussed in detail& 'e further ha"e discussed in this chapter the right (ey !erformance Indicators to determine performance of employees after practicing employee relations&
1.1 Overview Employee Relations is a set of organi)ational functions and practices that deals *ith issues related to people as staffing, compensation and %enefits, performance management, organi)ation de"elopment, health and safety, communication, and administration& Employee Relation !ractices are "ie*ed as am%iguous o"er the past years& Competition forced Employee Relations to perform a strategic role as a %usiness partner instead of adopting ER practices only to ta+e disciplinary actions and ad"ocating employees&
Michael (,--.) defined that Employee Relations is to manage relationship %et*een employer and employees *ith ultimate o%/ecti"ity of achie"ing optimum le"el of producti"ity in terms of goods and ser"ices, employee moti"ation ta+ing pre"enti"e measures to resol"e pro%lems that affect ad"ersely the *or+ing en"ironment& Employee Relation Managers e0ercise their
e0pertise to pro"ide guidelines to the line managers ho* to impro"e performance and %eha"ior of the employees& Employee Relation Managers pro"ide assistance to the Business Managers in resol"ing employee grie"ances, disputes and legal matters& $his is one of the %asic responsi%ility of Employee Relations epartment to pro"ide information to internal customers a%out rules,
regulations, policies, goals and targets of the organi)ations to communicate "ision and mission of the Management&
Companies pro"ide %est 1uality ser"ices en/oy high le"el of customer retention and comparati"ely good rate of employee retention& Customers Retention leads to good %usiness and ultimately increases employee retention le"el& Retention of employees refers to satisfied employees that results loyal customers& Employees are considered as internal customer as they re1uire the same le"el of satisfaction against their ser"ices rendered for the company as the customer of corporate ser"ices or corporate products re1uires& Employee Relations deal its employees as its customer %ecause ER Managers run their day to day %usiness *ith the help of its employees and for these employees& 2atisfied customers e0hi%it re"enue gro*th and firm3s le"el of performance& !rogressi"e Employee Relations practices are found %ehind success of leading organi)ations& ER practices are commonly +no*n %y the traditional titles %ut it is up to the management that chooses the %est fit practices to fulfill the re1uirements matching to the culture of the organi)ation& 4rgani)ations implement Employee Relation !ractices to polish s+ills of its employees *hich ultimately lead to %etter organi)ational performance&
ER practices impart a significant role to enhance performance of organi)ations indirectly& !erformance of employee depends upon /o% satisfaction, compensation and %enefits structure, re*ard plans, promotions, moti"ation, en"ironment, training and succession planning& Along *ith this, modern tools, techni1ues and sophisticated technology used %y organi)ations for Employee Relations create competiti"e ad"antage o"er competitors& !erformance Management of Employees
is a comple0 and integrated process of setting up a common employees3 understanding a%out targets to %e achie"ed in an organi)ation and aligning the corporate o%/ecti"es *ith the measures li+e s+ills, competencies re1uired for a /o%, employee de"elopment plans and the ultimate results deli"ered %y them& $he main focus of performance management is on continuous impro"ement, learning ad"anced and ne* technologies and s+ill de"elopment to achie"e set targets through o"erall corporate strategy and to construct a *or+force that can perform *ith the highest standards& $he responsi%ilities of Employee Relations epartment ha"e %een "ie*ed as am%iguous o"er the past
years& By the e"ol"ing Information $echnology and arising need for ne* management techni1ues ER professionals *ere gi"en importance& ER department enriches organi)ation from 5o% Identification to E0it Inter"ie*s& It *as not clear to intellectuals *hether to assign manpo*er handling duty to Accounts or to Admin Managers& ER *as not clear in its responsi%ility *hene"er esta%lished& ERM *as called on to de"elop systems to increase performance&
2trategic assets are difficult to imitate and speciali)ed HR resources create competiti"e ad"antage& ER !rofessionals must choose the practices *hich are %est fit to the en"ironment of their organi)ation& $he set of practices should %e adopted *hich is positi"ely related to performance and for this purpose Business Managers use modern techni1ues to chec+ and implement %est fit practices& It has %een o%ser"ed that a set of ER !ractices %est fit for an organi)ation is found 6ot 7it for the other organi)ation dealing in the same product or ser"ice line and in the same region& !erformance e"aluation techni1ues adopted %y ER managers and the results after performance e"aluation are found politically, regionally, religiously, personally and professionally %iased& $hese factors create great impact *hile e"aluating performance of a set of ER practices implemented& In some organi)ation re*ard and %onus structure might %e a reason of high performance especially in the profession of sales and mar+eting of 7MC8s& 2ales %ased incenti"es and re*ards influence performance of sales people and resulting high performance of the organi)ation& ER !ractices *ill
recogni)ed and re*arded properly& 4rgani)ation that ena%les employees to participate in decision ma+ing get more %enefits and en/oy %etter results from employees as compared *ith the organi)ation *ho concentrate their decision ma+ing process at top le"el& At the top staffing process has positi"e impact to organi)ational performance and organi)ations con"ert ra* employees into %etter performers after selection through continuous training sessions& Benefits.play a "ital role in the performance of an organi)ation only if these are aligned *ith o"erall corporate strategy& Competition %et*een Administrati"e and ER !ractices forced ER Managers to perform a strategic role of a %usiness partner for the parent organi)ations& ER Managers are facing pro%lems in shifting their functions from an ordinary Administrator to a 9Change Manager:& Companies rate them as a"erage and identify their %usiness partner3s s+ills as area for impro"ement . /o% security. Re*ards and organi)ational en"ironment significantly effects indi"idual and organi)ational performance& 8rie"ance handling procedure. communications from top to %ottom #ine employees and command and control system play 4 . Business and *or+ pressure on ER professionals restrict them to perform routine administrati"e *or+ and they are not a%le yet to %ring changes in their organi)ations through continuous HR processes& It is generally %elie"ed that responsi%ilities of ER made ER Managers strategist and dedicated to add "alue to the %usiness and corporate o%/ecti"es& Employee !erformance is directly associated *ith the results demanded %y the Management and therefore it is %ased upon esta%lished accurate product +no*ledge. communication style and ultimate re*ards at the end are essentials of *or+ system that re1uires high performance from employees& It is o%ser"ed that client3s re1uirements are positi"ely and satisfactorily fulfilled if employees *ho are connected *ith the main stream of clients ha"e s+ills and product information pro"ided through $raining and e"elopment& Employees al*ays are ready to go an e0tra mile and to de"ote effort to meet customer3s demands if their performance is e"aluated.
system management and safety& Benefits out of the training programs are customer retention. 1uality impro"isation. capacity %uilding up and impro"isation in methods. deployment of a suita%le set of ER practices and procedures definitely impro"e performance of employees and in this *ay organi)ations get a competiti"e ad"antage o"er their competitors through their employees& At the time of de"elopment and e0ecution of stretegic %usiness plans firm3s human resources are of high importance and Business Managers plan "ery carefully their human resources considering them an integral part of the plan& $he emergence of modern Information $echnology has shifted the role of ER Managers from traditional Administrators to strategic %usiness partner& At this stage they are more important role in the performance of an organi)ation then they did it %efore& $he training and de"elopment programs are included mainly on communications. impro"isations of processes. processes.uality impro"isation. customer3s satisfaction and ser"ices. high moti"ation."ital role in an organi)ation3s performance& $herefore. increased employee retention. interpersonal relations. . change management. positi"e company image etc& $raining can rarely sol"e pro%lems 5 . change management. Ethics. and gender harassment& Benefits from Employee $raining and e"elopment are /o% s+ills impro"ement and satisfaction. %etter financial figures. inno"ation and creati"ity. succession planning. moti"ated employees. positi"e image of the organi)ation and safety standards consciousness among staff& $raining and de"elopment can %e initiated for a "ariety of reasons li+e *hen %etter performance impro"ement is re1uired. 2afety and security. to testify performance of a ne* ER system or to train the staff a%out any system or procedure& Employees can %e trained for soft s+ills. professional de"elopment program. soft s+ills. technical s+ills. adoption of ne* technologies and methods. customer ser"ice. healthy financial figures. ethics.
efficiency of e1uipment. years& $he energy sector. change in attitude.> o"er tha past .including !oor management. production. %adly drafted /o% structure and design. the hospitality sector is trying hard to facilitate its *or+ers %y pro"iding them *ith "arious %enefits yet a lot is a*aited and e0pected to do in this regard& Employees *or+ for money and money comes *hen guest got ser"ices from their hotel and from them directly *hile ha"ing food in restaurants and ta+ing rest in the rooms& efinitely lo* pay scales and less %enefits in the monthly pac+age creates stress upon the employees and result unrestness *hich ultimatley leads to*ards lo* le"el of performance and cause other dispilinary pro%lems& 6 . organi)ation and Recruitment& In e"ery age training and de"elopment put its significant prints on the pages of history& $raining and de"elopment created the %est armed forces. *or+forces. masses. follo*ers. students and professional %usiness leaders *ho deli"ered something ne* to the *orld& $raining and e"elopment is an effort to*ards impro"ing performance of employees. de"eloping s+ills etc& $raining is a%out +no*ing *here employees stand and *here they *ill %e after training& $raining is not *hat *or+ers desire %ut it3s to +no* ho* to get on it. political forces. it3s not *here they *ant to reach %ut ho* to reach there. transportation. %ut it3s to +no* ho* to get a start& $raining is a target that *e achie"e& Employees3 moti"e and o%/ecti"e is to %e "alua%le to remain in corporate sector& $rainings can %e of t*o types< internal training is %eing carried out at any in house facility using 1ualified trainers as resource person and e0ternal training is %eing organi)ed outside the premises& $he increasing rate of inflation and cost of li"ing in !a+istan increased difficulties and pro%lems of its national and the employees in hospiotality sector are the most %et*een effecties of this trend& $he %udget of a small family increased %y =. medicine and 7MC8 are %adly effected %y the policies of the go"ernment resulted high cost of li"ing for the lo*er middle and poor families& In this situation. it3s not at *hich le"el *or+ers *ant to reach.
food. annual and medical lea"es. duty hours. moti"ated employees and employee turno"er in an organi)ation ha"e %een the core issues for ER Managers& Business managers need moti"ated employees and *ant to retain e0perienced employees %ut did little to find real time solutions& $his study has %een conducted to e0plore practices and theories to retain e0perienced employees and to moti"ate them at *or+ stations& Issue of employee retention affects the performance of the entire company& 4rgani)ations are reali)ing that their people are. Employee of the Month and 2uper"isor of the Month A*ards. compensatory lea"es. ga))etted holidays. annual increments. %y far. medical. Honesty A*ards. employee ledgers discounts. annual performance e"aluation. life insurance. *ell defined diciplinary procedures and promotion plans& $hese %enefits certainly ha"e impact on the performance of the employees& Although there is a retention pro%lem in the industry yet employees gro* as the cutlture of the hotel industry is the same despite regional differences& In hospitality industry of !a+istan. promotions *ithin and 7 . employee of the month a*ard. annual employee day. salary ranges as defined %y legislators. Corporates adopted state of the art techni1ues to moti"ate its employees as this industry li+e in the other parts of the *orld. 2elf?respect. uniform. paid $ime off from *or+. laundry. social security. training sessions.2ince the e"olution of modern ER Management. annual increases. employee %irthday parties. their most important asset& Moti"ation creates passion leading to performance& 'e came up *ith some useful re*ards that cost less %ut resulted significantly& $he most effecti"e *ere Appreciation #etters. pro"ident fund. is facing high turno"er and tardiness& $hese techni1ues include Appreciation #etter. Recreational $ours. 7le0i%le timing and lunch hours and performance re"ie* meetings& 4rgani)ations moti"ate employees %y in"esting in them financially and emotionally and in return they result positi"ely& Hotel sector of !a+istan offers a composite pac+age for its employees %enefits including minimum confirmation period. old age fund. Annual Employee ay and Birthday !arties at the end of the month for the employees *hose %irthday fall in that month& 2econdly. annual %onus. Cash A*ards.
other %enefits li+e 7ood and $ransport for female staff is pro"ided along *ith medical and life insurance etc&
In !earl Continental Hotel #ahore, 'or+ers $rade Union has %een constituted in the hotel in accordance *ith Industrial Relations 4rdinance and is *or+ing "ery efficiently through collecti"e %argaining agents& $he Management of the hotel is %ound to ha"e the elections periodically to elect the mem%ers of the trade union& $he union is also loo+ing after the rights of *or+ers under an agreement *ith the Management&
In A"ari Hotel #ahore 'or+ers union has %een esta%lished in the hotel to sol"e the pro%lems of *or+ers from time to time& All the employees are %enefited %y increasing their salaries and a union agreement after an inter"al of t*o years& #ast year A"ari 'or+ers Union got an increase of Rs& ,---@? to all *or+ers *or+ing in the hotel and other %enefits& A /oint *or+s council has %een *or+ing in Hospitality Inn hotel #ahore since ecem%er ,--A in order to loo+ after the rights of
*or+ers of the hotel& In this connection, mem%ers of the 5oint 'or+s Council *ere elected through a secret %allet& Meetings of the 'or+s Council are %eing held periodically&
Hospitality Industry of !a+istan is operating *ith a "ariety of employees distri%uted in "arious departments headed %y the Managers and at the top is 8eneral Manager reporting to Corporate 4ffice headed %y Managing Room irector& $he main departments are 7ood and Be"erage,
i"ision, 7ront 4ffice, Engineering, Mar+eting, 7inance, HR, 2ecurity, !urchase and !u%lic
Relations& Including other facilities and ser"ices are dining halls, %an1uettes, s*imming pool, Health clu%, %usiness centre and octor3s room& 2er"ices professions li+e Hotels and 7oods
*orld*ide are certainly profita%le than the other industries& Hospitality industry of !a+istan is struggling due to increasing efforts to maintain peace in the *orld and !a+istan is under direct influence of leading countries %ut progress rate of Hotels is not %ad as compare to the past figures&
$he 1uality of ser"ice pro"ided %y the food and %e"erage, front office and house+eeping areas of hotels played a "ital role in progress as *ell as in earning profits& 7oreign in"estment is connected to the peace and en"ironment of the local areas& In some areas li+e main cities, hotel %usiness seems ma+ing progress %ut unfortunately un?restness pre"ails in the main tourist areas li+e 2*at, Chatral, (arachi, ;uetta etc&
Hospitality sector of !a+istan can impro"e %y pro"iding %etter ser"ices, policies, employee %enefits, employee career gro*th plans, ne* opportunities and %etter remuneration pac+ages& $he o%/ecti"e of this study is to identify "arious trends in this sector in !a+istan< *or+ing conditions and en"ironment for employees< "arious le"els of employment at "arious cadres< e1ual employment opportunities< se*er s+ills shortages, training and de"elopment needs etc& Hospitality industry of !a+istan should focus on a ci"ili)ed *or+ culture& #o* rate of la%our *ages, poor employee career planning and structures, informal recruitment practices, longer *or+ing hours and less retention leads to*ards high turno"er& !rofessional careers in this sector ma+e professionals to go for *or+ in e"ery region of the country, pro"ides employers *ith employees of di"ersified s+ills& 7emale 2taff are performing only glamorous roles& 4rgani)ational structure and *or+ing conditions should %e impro"ed to pro"ide e1ual employment opportunity&
Although the e"olution of Hotel industry is associated *ith the modern ci"ili)ation yet *e see that "arious segments of this sector ha"e /ust entered into a ne* era of corporate culture& Hotel Industry *as ne"er on priority list *hile formulating 6ational Economic !olicies of !a+istan& Although *e ha"e rich natural resources to promote our hotel industry yet lac+ of interest and proper trained manpo*er are main hindrance in achie"ing set targets& Among the most "isited areas of !a+istan *here tourism can %e de"eloped *ith minimum efforts are $har desert, $hatha, Mohen/o? aro, $e0ila, Hasan A%daal, 6an+ana 2ahi%, Muree, 8ilgit, 2a+ardu, Chalas, (aghan, 6araan, 2aif ul Malu+, 6eelum Baley, 2a*at, Mala+and, (alam, Badin, Malam 5a%a and many
more *orth seeing places& $he pu%lic and pri"ate sector partnership can create a difference in these areas& Being underde"eloped country, !a+istan doesn3t ha"e many sectors *hich contri%ute in its annual gro*th& Hospitality is potential Industry that can contri%ute much in the de"elopment of and gro*th rate of !a+istani economy if enough sources are pro"ided and utili)ed properly&
It is the human resource that can3t %e imitated or stolen %ut can %e de"eloped in due course& Here the need arises to e0plore Employee Relation !ractices and to e"aluate its impact of performance of employees that ultimately leads to organi)ational performance to*ards success& E"aluation of "arious +no*n employee relation !ractices certainly *ill lead the researcher to*ards finding %est practices of them that ha"e greater impact on employee performance&
In order to understand the *or+ing style, en"ironment, organi)ational structure and standards of ser"ices in Hospitality sector of !a+istan !earl Continental #ahore set an e0ample& !earl Continental a . 2tar hotel property located in the centre of #ahore& $he property o*ns more than C-- rooms included 2tandard, Atrium elu0e and #u0urious 2uites& Hotel pro"ides electronic
+eys, direct dialing, safe %o0es, $B Channels and a planted Mini%ar in the rooms& Hotel !ro"ides Airline 4ffices, Boo+stores, Car !ar+ing, 8old and 5e*eler 2hops, House octor, Business Centre, $ra"el es+, #aundry, !astry 2hop, ,A Hour Room 2er"ice and a !harmacy& Hotel pro"ides food umpu+ht, $aipan, Royal Elephant,
and %e"erages through D restaurants including Marco !olo,
Bu+hara, 6adia Coffee 2hop, 2tea+ House, Ice Cream !arlor, Ba+ery 2hop, Conference Room and Ban1uet Halls. Hotel offers for its customers a modern 7itness Clu% *ith the ser"ices of 2auna, Refle0ology, 2team $herapy, Hydrotherapy, #ap !ool, Massage, $ennis Court, 2*imming !ool and a gymnasium& 4ther departments are 7ront 4ffice< House (eeping etc are the same as are present in the industry3s other hotels& In this *ay !earl Continental hotel en/oys more than C-- room nights per day *hich is the ma0imum share in the mar+et of #ahore, more than .-- room nights in Ra*alpindi, C-- room nights in !C (arachi and A-- room nights in !C !esha*ar&
Figure 1.1 Organizational Structure of Hotels 11 .
Assistant 7ood and Be"erage Manager. Reception. Chief 2te*ard and ish*ashers& epartments& Chairman. ecoration. Concierge. !ar+ing and ri"ers& In small properties 7ront 4ffice Manager and E0ecuti"e House (eeper replace Room i"ision Manager& E0ecuti"e House +eeper reports to Manager Room i"ision for Maintenance and preparation of 8uest rooms for guests after. outdoor catering and pro"iding ser"ices in due course& $he property includes Ban1uets. !a+istani. 8M and Head of the Manager Room i"ision is responsi%le for 7ront 4ffice 4perations including !hone E0change. BB.$he organi)ation of hotel starts from the Chairman and tra"els do*n to the !resident and Managing irector& M usually is responsi%le for the achie"ement of set corporate o%/ecti"es through the organi)ation of corporate office and operations of the hotel& Corporate office is responsi%le for corporate related affairs headed %y the Chief 7inancial 4fficer& e"elopment is and artificial person reporting to Managing irector Business irector for the operations and sales of !ermit Room as it is called in !a+istan and #i1uor 2ection in other parts of the *orld& 8eneral Manger %asically is the official responsi%le for achie"ement of corporate o%/ecti"es set for the hotel& He performs routine tas+s *ith the help of Head of the are $4! E0ecuti"es& Management& irector@ Manager 7ood and Be"erage is responsi%le for 2ales of related property. Chef e !artie. Reser"ation. Materdi. Cleanliness of o"erall property and arrangements for Uniform and 8uest 2upplies& 12 . Restaurants Mangers. E0ecuti"e Chef. %efore and during their stay. Continental Chef. Chef. !a+istani Chef. /uices. Business Centre. Butcher. mini%ar maintenance. C74. Chinese and other hot +itchen food& 4utdoor catering for marriages and conferences and 2er"ices referred to the *aiter ser"ices& $he staff includes 'aiter. 8uest Relation. #aundry. Meeting and E"ent Rooms etc& 7ood and Be"erage includes soft drin+s. !resident and M epartments are mem%ers of 2enior B . Ban1uet Coordinator. 7lo*er arrangements. Ban1uet Managers. Captain. Continental. Chinese Chef. Ban1uet 2ales Manager. food and %e"erage items.
2ales F Mar+eting epartment. $ime 4ffice 2ection. !articipati"e #eadership. grooming. !ermit Room. Room 2er"ices. E0ecuti"e Board Room and Blossom3s Ban1uet Hall are of *orth seeing& Hotel consists of E. Accounting 4ffice. Cafeteria. Business Center.. Unions. *or+ ethics and interpersonal relations& 1. 7ront 4ffice epartment including Reception.2 Proble State ent $his study is an attempt and aimed to find the Impact of Employee Relations !ractices on Employee !erformance in the Hospitality Industry of !a+istan& $hese Employee Relation !ractices include Conflict handling.Rooms including A E0ecuti"e 2uites F A elu0e 2uites (all are centrally Air? conditioned @ Heated)& $he property consists of car par+ing for guests. (itchen. 7FB 4ffice. Elite Clu%. iscipline.Holiday Inn International located in the city of #ahore is a to*er type %uilding *ith D floors consists of E. Engineering. information a%out property and its facilities. 2ecurity. Benefits and $raining& 13 . #aundry 2ection. Concierge. E0ecuti"e Conference Room. !astry 2hop.guestrooms *ith one 9E0ecuti"e Clu% 7loor: and 8ym& 2auna Bath. *ashrooms. Arts F Crafts 2hop. House+eeping. 2team Bath. 5acu))i.. 2cissors Men3s 2aloon and Billiard Room facilities are pro"ided for the guests& 4n /oining employees are gi"en orientation training %y the Human Resource epartment and departmental trainers& RE train and assist employees ho* to perform their duties in the most efficient manner& Employees are %eing pro"ided a hand%oo+ that is prepared to pro"ide employees information a%out the hotel and there are many other things they should learn concerning *hat is e0pected of them& Employee Relations train staff of the hotel to impro"e their !hysical appearance. affodils Ban1uet Hall. Male staff loc+ers. #ounge and t*o Restaurants (#ahore 8ates and Red #otus)& $he E0ecuti"e 4ffice. offices of HRM.
e"aluation techni1ues ha"e %een opted to find out ho* important "arious ER !ractices are in enhancing !erformance of Employees and this *ill help in understanding relationship %et*een 4rgani)ational !erformance and Employee !erformance& After detailed study of "arious ER !ractices. a set of si0 significant practices has %een selected to conduct this study *hich reflects the impact of these practices on the !erformance of Employees resulting ultimate 4rgani)ational !erformance of Hospitality Industry 2ector& Any corporate in the %usiness sector is for the same purpose that is ma0imi)ation of profit and minimi)ation of e0penses& $his o%/ecti"e is the same and is achie"ed through Employee Relation !ractices& E"ery corporate handles its human resources differently +eeping in "ie* its products and ser"ices present in the mar+et& Corporates practice Employee Relation practices to handle its Human Resource& $hese practices are common %ut the techni1ues are different& $hese !ractices someho* create an impact on the performance of employees& $he purpose of this research is to e"aluate impact of Employee Relations !ractices on the performance of employees *or+ing in the hotel industry of !a+istan& 1.$ Significance of the Stud# $he hotel set ups usually offers ser"ices to their customers of personal nature and therefore feed%ac+ on the ser"ice standards is re1uired %y them& $his feed%ac+ is "ery helpful in measuring the standard of ser"ices rendered %y their employees& Employee are hired and trained %y the hospitality industry for this purpose& $he nature of ser"ices ma+es these organi)ations inclined 14 .1.! Ob"ective and Purpose of the Stud# $he o%/ecti"e of this study is to understand Employee Relation Management Role in enhancement of employee performance in the Hospitality sector of !a+istan& It is essential to understand the effecti"eness of Employee Relations acti"ities and practices *hich are contri%uting positi"ely to*ards Employee !erformance& 7or this purpose.
to*ards Employee Relation !ractices adopted %y the Employee Relation Managers& A set of ER !ractices of homogeneous nature in all hotels is *or+ing& $he nature of Employee Relation !ractices may %e the same %ut impact is different and "aries from hotel to hotel due to their star ratings& 15 .
facilities. career gro*th. promotions at upper le"els.Chapter 2 %iterature &eview Employee Relations still is struggling to get a strategic position in any organi)ation %ut its function of $raining and e"elopment got recognition long %efore and proper attention since the e"olution of human %eings on earth& In this chapter re"ie* of significant literature is %eing discussed& Significant %iterature Ar%a%.-EE) descri%ed that disciplinary programs in organi)ations play important role in formulating attitudes of employees& iscipline is focused on compliance *ith rules. retirement plans and fle0i%ility in *or+ are the reason of employee retention and moti"ation at 2arena 7aisala%ad& $hese factors ultimately enhance the employee performance in hospitality industry& Conine (. regulations and policies defined %y the Corporates& By the increased influence of Unions and a dramatic shift in 16 . the reason is cost of li"ing that tends to increase in !a+istan& !restige. %alanced *or+ing life and satisfaction le"el of employees at /o%s. Mahmood. ease of communication. po*er to ta+e decisions and o*nership.-EE) reported employee retention rate at 2erena 7aisala%ad due to $raining and de"elopment. Ayou%. F Hussain (. learning en"ironment. re*ard or salaries affected their retention le"el least& 6o dou%t that employees sho*ed their concerns on rate of *ages and salaries.
team*or+. Build a Management $eam through Recruitment. respect for guests. is a relia%le *ay to +no* *hether a ne* discipline policy is deri"ing results or not. continuous $raining and Retaining !assionate and Committed Managers& 2pend on their professional coaching and personali)ed de"elopment plans to sharpen their Management and #eadership s+ills& $hese Management $eam mem%ers *ould %e utili)ed as counselors for /unior managers& $hirdly. grie"ances. responsi%ility acceptance for actions and conse1uences of %eha"iors& 2econdly. 2ystem of Employee feed%ac+ and ispute resolution. union campaigns and increased turno"er& 2e"enth. is to as+ from company employees a%out the effecti"eness of policy& 17 . consider another type of 9reset&: 6o dou%t employees ha"e grudges o"er situations of supposed une1ual treatment results hard feelings. self? discipline. fello* employees and property& 7ourthly 6otice their tone means instead of using impersonal and third?person language. use 9you: and 9your super"isor: and the name of the company instead of 9the Company:& It is more specific and result oriented than the traditional language style& 7ifth. e0plore e0panded *ays to acti"ely importune feed%ac+ from e"ery cadre of employees& 7re1uently re"isit is re1uired for +no*ing *hat feed%ac+ is %eing gi"en and *hat3s %eing done a%out it& 2i0th. mutual strengths. admit and correct mista+es. Measure results. 7ocus on the A%solutes of 2elf?discipline& rop the traditional employee hand%oo+ and de"elop a short list of performance 9a%solutes: that *ill help out employees identifying important performance areas li+e hospitality gesture.attitude of the employees the ER terms such as 9no?fault: and 9progressi"e discipline: %ecome apparent& Employers are also e0hausted of increasing legal impositions and unions& $he modern era ma+es companies and its policies related to the employee discipline more smooth therefore the Business Managers li+e to operate in an open and less layered hierarchy system *here employees *ould perform %est using self?discipline techni1ues. outstanding ser"ice to guests. respect. clearly defined mutual goals and for the mutual %enefits& He presented a model for hospitality sector to %uild a mutual commitment model of employee discipline in *hich he states that 7irstly ma+e a clear o%/ecti"e statement for its employees defining relationship %et*een employee and his super"isor on mutual trust.
2+ill e"elopment through $rainings. he referred 'or+ers Management Council for grie"ance and conflict handling in an hotel organi)ation as e"ery such esta%lishment shall set up a 'or+ers Management Council consists of not less than si0 mem%ers& $he *or+er participation *ill %e .Baloch.-E. it pro"ide performance feed%ac+ to employees on /o% done& 2ultan (. Career !ath. . Re*ards. !erformance E"aluations. (iani. second. !articipati"e decision ma+ing and 5o% esign& Cuthie (. Ahsan F Mufti (.-E-) researched that moti"ation is considered an action and a status& $he management ta+es initiati"es to create a *or+ en"ironment for employees to ma+e them self?dri"en& Employee moti"ation as a status refers to *hich degree employers ma+e their employees moti"ated at the end of the day to ma+e them self dri"en& Moti"ating /o% allo*s *or+ers to feel responsi%le.-E-) represented 8o"ernment of !un/a%3s Industrial Act .-> in that council and from the Management side 18 . performance %ased compensation.ureshi F Ramay (.in *hich chapter of 2hop ste*ard and 'or+ers Management Council reads that e"ery esta%lishment *ith fifty or more *or+men. collecti"e %argaining agent in the esta%lishment should %e nominated and *here there is no collecti"e %argaining agent< an agent should %e elected through a secret %allot& $he elected or nominated shop ste*ard *ill hold this office for one year& $his office holder *ill act as a communication lin+ %et*een *or+ers and o*ners& 2tating the functions of Collecti"e Bargain Agent he presents that the office %earer *ill assist the Management in impro"ing *or+ing conditions and help *or+ers in settlement of pro%lems and grie"ances of *or+men& 7urther. pro"ides %asic results and third. Ali. periodic e"aluations significantly and positi"ely correlate *ith the percei"ed employee performance& Mar*at.-E-) researched and pro"ed that a set of human resource practices that include promotion.-E-) pro"ed in their research that a set of se"en famous ER Management !ractices are positi"ely significantly effect Employee3s !erformance& $hese practices are Recruitment and 2election.
*ho in"est in s+ills de"elopment process of employees and recogni)e efforts of employees. remuneration methods. fi0ation of /o% and la%our rates. #eadership< %asically people are moti"ated %y *hat they "alue& If *e analy)e. principles of remuneration. are mo"ing to*ards a more competiti"e and producti"e *or+force& 2uccessful companies. In"ol"ement in strategic decision ma+ing. some to psychological factors and some put financial factors at the top of the list& 2mith (. safety. organi)ational "alues. impro"ement in production and efficiency. the s+ill de"eloped and the training need assessments are related to the effecti"eness of s+ill de"elopment programs& 19 . health and /o% satisfaction. maintaining sympathy %et*een employer and the *or+ers. impro"ed their profits and financial figures far more than other do& 'or+force de"elopment is a crucial in"estment planning that %rings a%out results& Results suggest that training module used. 5o% esign. training etc& Ho*es (. settlement of disputes through negotiations. regrouping.-E-) researched that %etter communication and attention to personal needs of employees are to impro"e moti"ation and performance& $hese approaches did little to sustain impro"ed performance& 7actors that moti"ate employees significantly are $argets and o%/ecti"es 2etting.there should %e one con"ener of the Council& $hese *or+ers3 representati"es *ill hold the office for a period of t*o years& $hese representati"es *ill participate in meetings of Council and matters related to Management G #a%our issues may %e discussed in meetings& $he functions of the Council *ill %e securing and preser"ing good la%our management relations.-E-) stated that 6igerian 4rgani)ations *ho are focusing on *or+force de"elopment. pro"ision of facilities for contract *or+ers. scholars are in the same direction *hile e"aluating influencing factors of moti"ation and retention in an organi)ation %ut at the time of setting up importance le"el they all differ from one?an?other& 2ome gi"e importance to social "alues first. education facilities. transfers. /o% security. Measuring performance and pro"iding 7eed%ac+. Re*ards and Recognition.
chemical. comple0 strategy are far %elo* in the list& Asghar F 2iddi (. producti"ity. employers are lia%le to pro"ide on /o% apprenticeship opportunity to graduate students of "arious trades li+e electrical. reinforcement and interpersonal roles& Economic %enefits of training and de"elopment include re"enue. sense of %eing ignored. a%sence of training.--D) researched that Businesses are recogni)ing people *ho are s+illed. te0tile. demonstrating commitment. integrating employee de"elopment plan in the strategic plan and de"eloping competent HR professionals in the organi)ation& e"eloping employees is a %ig milestone yet to achie"e for the %usiness leaders& Hansen (. 1uantity sur"eyors and staff of hotel sector. de"eloping a*areness. s+ill de"elopment. less career enhancement plans.--D) researched that employees are ready to ma+e an e0tra effort if they are satisfied *ith strategic decisions of their organi)ations& Employees gi"e importance to employers for their communication procedures that affect their efficiency and moti"ation le"el& !oor communication from management is al*ays at the top of the list& $oo many rules. *or+ing e0posures.--D) stated that Air 7orce as+ed mem%ers to increase producti"ity as significant do*nsi)ing created a need for HR Impro"ement and employees had to perform more& Air 7orce sent officers to get +no*ledge and s+ills at 2taff Colleges& 'er%ler F Harris (. and they pay them a nominal scholarship *hile *or+ing as trainee or apprentice %ut after completion of training some employers pro"ide them permanent /o%s& 20 . mechanical. cost. +no*ledgea%le and moti"ated and can ma+e a significant difference& Competency is de"eloped through education.Anton (. cycle time and increased return to shareholders& He stated that the senior leadership role in the training and de"elopment includes.. training.--H) reports that apprenticeship training is used to ensure a"aila%ility of s+illed employees in !a+istan as per Apprenticeship 4rdinance EDC. 1uality.
training. guest interactions and room3s preparation and food hygiene training to hotel *or+ers *ill ha"e a greater effect on attitude& 5ohn (. *or+ analysis. restructuring. orientation. re*ards. sharing +no*ledge and storing +no*ledge in systems and procedures .--=) stated that HR responsi%ilities are organi)ational design. 'aiters. Chef. House+eeping. Room 2er"ices. A sustaina%le competiti"e ad"antage can %e achie"ed if %asic re1uirements are met. #anguage 2+ills. it can3t %e imitated and fourth. Coo+ing and hygiene etc& Reports reflect that employees sho*ed a positi"e increase in their performance after training as compared to pre"ious e"aluations.--H) reported training for trades in !a+istan3s hotels that are Management. Customer Relations. Communication.--=) researched that *here role of leadership is supporti"e< *here employers ta+e interest in efforts of HR in training and de"elopment of employees& Effecti"e training and de"elopment can %ring significant returns as a +ey dri"er in sustaining a competiti"e ad"antage& 2+illed manpo*er is capa%le and ta+es interest in getting control o"er their /o%s as they ac1uire positi"e attitudes& 7urther he stated that 7irms human resources are training. safety F health. hotel hygiene. Conflict?management styles. unclear po*er structure. reser"ation. *or+ performance. s+ills must %e rare.--C) stated that conflict occurs to get control o"er resources. it helps increasing s+ills and +no*ledge of employees. promotion.Afa1 F (han (. selection. in *or+ safety. it facilitates group interaction. e0perience. 8uest 2er"ices. desire to achie"e targets and interdependence. Communication %arriers and differences in e0perties& It is reflected from their study that managers can handle it through their #istening s+ills. termination. second. health and safety issues& 7ida (. 7eed%ac+ s+ills. first is. 21 . /o% design. struggle to en/oy %etter po*er le"el and status. #aundry. they must add "alue to the process. relationships and insight of managers and HR acti"ities do not directly increase performance le"el of organi)ations. could not %e replaced& 'oods F (ing (. planning. 2ales. #a%or la*. third. recruitment.
assessing sources and %y +no*ing and opting %est conflict management options& 7urther. and istrust. third In"ent potion for mutual gain and fourth Use o%/ecti"e criteria: 4+oroafor (. $hreat and 7ear are the conflicts that usually ta+e place in hotel industry& Ba%atia.--. interpret the rights and prerogati"es and not to gi"e e0cessi"e and undue emphasis on them so as to foster good management@ la%our relationship *ithin Hotel and $ourism esta%lishments& 4+oroafor studied that 2u%contracting. second 7ocus on *hat people really mean. a%o"e rights are accepta%le in the la%our ? management relationship& 7rom time to time. 2ipos.) studied that successful #eaders understand inno"ation as gro*th achie"ed through the %est HR *ith a common persistent attitude and )eal to perform to 22 . hire and fire. F 6agy (. and defend other company3s prerogati"es& Management %elie"es that their rights are their prerogati"es and that no%ody should encroach into that area and the Company retains the e0clusi"e right and responsi%ility to manage the %usiness and plant and to direct the *or+ing forces& He stated that the right of union here refers to the area *here %oth management and la%our should ta+e /oint responsi%ility for certain actions& Another union right is Jright of recognition %y the management3& In Hotels. enial of 7ringe Benefits. Competiti"e 2trategy should %e adopted *hile dealing *ith conflicts of important nature only to a"oid reputation of hardnosed manager and for this purpose. ta+e decisions. Un1ualified Assumption. pro%lems come from these t*o rights areas? 9 rights to recognition: and 9right to participate: in decision ma+ing processes& In the final analysis of his research he stated that the parties should realistically.selection of right conflict. E"aluation of participants in conflicts. Ispas.--C) further analy)ed the set of Employee Relations *hich *as presented %y U%e+u (EDHI) and stated that these are also applica%le in Hotel Industry %ut after ma+ing a fe* modifications& He e0amined that the management of la%our relations re"ol"es around interaction %et*een management and employees on these matter and the Management reser"es the rights to manage. first 2eparate people from pro%lem. Unfair #a%our !ractices? 'rongful ismissal.
!artnership Culture and Moti"ator& And #eaders in this hospitality industry must %e "ery close to their employees and they really must encourage support in the organi)ation& Integrity. identifying participants for the training sessions and the training programs should result positi"ely& Bro*n F 4stroff (.--.--I) researched that the training need assessment and effecti"eness of training sessions are correlated *ith each other& In the design of training programs.) states that Continuous Impro"ement is an approach to organi)ational change re1uires acti"e in"ol"ement of s+illed and moti"ated employees possi%le through training and de"elopment& Employees are e0pected to participate in "arious organi)ational change acti"ities aimed at impro"ing organi)ational performance& $he sustained need for training and de"elopment arises to maintain superiority in mar+et. F Bell (. identify the /o% re1uirements to %e trained. de"eloping s+ills of employee and their +no*ledge and increasing organi)ational producti"ity& Arthuer. Bennett. Moti"ation and Inno"ation lead to*ards %etter employee performance and ultimately it is organi)ational success& 7rancis (. Edens.sol"e pro%lems and for shifting their ideology into real practices& Inno"ation is al*ays has %ases on your organi)ational resources and capa%ility to recogni)e and con"erting chances into confirmed success& $here are three fundamental characteristics of an efficient leader are Integrity. 2hared 2uccess.--A) state that HRM system is a situation that occurs *here system is an authority considering Human Resource Management functions as of highly relia%le and sophisticated acti"ity& $his is a situation *here HRM significantly en/oys support of top leadership in an organi)ation and *here optimum performance le"el is achie"ed %y in"esting in famous Human Resource practices and functions& $hey further ela%orate that high performance rate of employees can %e achie"ed %y gi"ing utmost preference to HRM !ractices including top 23 .
in the form of correcti"e action. appropriate discipline.leadership3s %eliefs on the importance of human capital.--A) stated that oorgani)ations consist of people and resources and people need to %e dri"en to*ards the achie"ement of set corporate o%/ecti"es& Employees3 performance to*ards the achie"ement of corporate goals needs to %e pursued to ensure success in due course& It is the management that +eeps thrust of the %usiness acti"ities to*ards success and at any point in time if the management feels that the employee performance fall %elo* the standards then correcti"e action should %e ta+en& In this respect discipline should %e re1uired to maintain positi"e performance and progressi"e %eha"ior of employees and therefore management is responsi%le to manage this discipline& irectly and indirectly he relates discipline and performance closely& $he hotel industry is la%our intensi"e and hotel guests li+e to %e ser"ed *hen staying in a hotel& $his phenomenon leads the management to encourage *or+ers to pro"ide the %est ser"ices as guests e0pect& Employees at *or+ ha"e KgoodK and K%adK days or producti"e and less producti"e days and that time the management3s responsi%ility is to moti"ate them through the %est possi%le disciplinary practices to perform in a *ay that ma+e guests happy and ultimately to en/oy guest retention& Management should ma+e sure that the standards of performance are achie"ed through %est practices and if not. *ould moti"ate and lead employees to*ards performance of e0pected standards and %eha"iours& He researched that senior management does not manage discipline correctly and conducts the discipline that middle managers should %e conducting& $he senior management doesn3t allo* middle management to implement disciplinary practices although these are negotiated procedures& $he disciplinary procedures do not specify the authority in this respect and top management is hesitant to frame out the authority to middle management to maintain staff discipline that leads to lo* le"el of performance& He 24 . in"esting in human resources and *ith a participation in decision ma+ing of HRM professionals in the organi)ational and corporate strategic planning process& $heir study pro"es that high le"el of performance standards and HRM practices are significantly related& Collier (.
presented his thought that conse1uently this style of managing discipline +eeps middle managers a*ay from learning or gaining necessary e0perience results in %ad performance at the end& He e0plains that the positi"e approach to correct poor performance through self?confidence. self? discipline and competence in the *or+place in four stages *here at 2tage oneL an oral reminder that the "iolation is not accepta%le and recommending a course of correct action& At 2tage t*oL a *ritten reminder of the "iolation repeated and addressing that the %eha"iour or performance does not meet accepta%le standards& A counseling session *ill %e held& 2tage three *here a *ritten letter of the "iolation repeated and the in1uiry from such employee to correct the situation. employee needs to commit to the correct %eha"iour or performance& At this stage it *ould %e made clear that training and time *ould %e gi"en to meet the re1uired standard and at 2tage fourL should the standard still not %e met. the performance of seniors *ill %e reflected from the performance sho*n %y these /unior and middle managers under their control& $he same in the case of these /unior and middle managers that their performance *ill %e /udged ho* *ell they manage the employees people under their guidance& $herefore it is "isi%le that the performance tum%les do*n the line from senior management to %ottom *or+ers through the chain of command in the form of *ell disciplined and producti"e employees& 'allace (.--I) presented that %ecause of fluctuating financial profits and tight margins the literature re"eals that *or+ing en"ironment in the hospitality industry is not an easy /o% rather it is stressful& 'or+ing in "arious shifts that consist of longer hours to achie"e set targets and to satisfy the guests results in fatigue& 2hifts are not predicta%le and here are fe* mid %rea+s during *or+ing hours that are longer as compare to other corporate sector& !hysically a person should %e "ery strong to %ear stress and to *or+ in these conditions& Intrinsic in this spirited ser"ice industry is high le"el of employee turno"er& #o* pay is a matter of concern %ecause the re1uired *or+ and s+ills are paid on the %asis of 25 . the employee should terminate the employment %ecause the agreement to meet the standard *as %ro+en& He stated that that this disciplinary procedure *ill surely put impact on employee performance& He e0plains that top and senior management le"els are responsi%le for the performance of a *hole company and employees. thus& $his may include some /unior and middle managers under their direct control& $herefore.
policies and designing systems and *ithout 1ualities of a leader can achie"e set standards& But the manager *ho demonstrates leadership inspires their employees %y setting up e0amples and through e0ercising their 1ualities of acti"ating. communicate and reprimand people& #eadership is a %eha"iour. procedures. teaching etc& His study reflects that these trends of lo* %enefits for the employees in hotel sector results in lo* performance.1ualification standards *hich are lo*er as compared to the other hospitality sectors li+e medical. organi)ing. moti"ate. HR !lanning F Recruitment and 2taffing. tardiness and high turno"er& Miner"ini. $raining and Employee Relations& HR Management teamMs main function is to analy)e and manage people& HR department enriches the corporate sector hospitality industry through recruitment procedures and ensures that staff follo*s directions %y regularly setting up targets of organi)ation& HR is also responsi%le for compensation pac+ages to moti"ate employees& $hese responsi%ilities contri%ute to*ards organi)ational effecti"eness& HRM responsi%ilities ena%le lines of communication and de"elop learning processes& 26 . a *ay of affecting the %eha"iour of others to do *hat needs to %e done& $herefore it is reflected from their study that certainly management and leadership style does affect the performance of employees& Harold (. !erformance Management.--I) researched that the management and leadership are not the same& Management co"ers acti"ities of planning. Employee Benefits. salaries. acti"ating and controlling employees& Any official %y follo*ing rules. *ages and Re*ards.--I) researched that the proper use of time resource could ma0imi)e achie"ement of organi)ational goals %y planning acti"ities and schedules& Responsi%ilities of HR can %e further summari)ed as 4rgani)ational e"elopment. moti"ating and coaching people& Managers *ho ha"e com%ine 1ualities of managers and leaders are highly "alua%le for their organi)ations& $hey stated that the managers *ith leadership 1ualities +no* ho* to direct. police. Meyer F Rour+e (.
--I) researched that Human Resource Management system got e0tra ordinary attention of ser"ice industry than production sector and this is playing an important and "ital role in employee performance in %oth sectors& $heir study pro"ed that Employment security. integrated team*or+. Induction $raining at the time of /oining. 2election !rocess.) presented that the hospitality industry ha"e sho*n interest in employee empo*erment and !articipati"e #eadership& In hospitality industry empo*erment is seen as the concept of delegating and transferring decision?ma+ing responsi%ility to employees for %etter control and increased ser"ice standards for the entire satisfaction of customer& He raised the 27 . Career e"elopment !lans and 7inancial Incenti"es& $hey stated employee that competencies of employees. esigning /o%s. Benefits and Compensation. producti"ity le"el of employees. cost of goods produced and employee retention rate& (alidas (. 4rgani)ational Commitment etc& are inter"ening "aria%les *hile performance of employees *as measured through product 1uality.--I ) esta%lished through their study that a set of HR people management practices has significant impact o"er organi)ational performance *hich is measured through the data of indi"idual employee performance& $his set is %ased upon Recruitment and 2election !rocedures. time span consumed in deli"ery of goods and ser"ices. massi"e training sessions.Ahmad F 2chroeder (. minimal status %loc+ades and lesser *ages differences across all management le"els and communication of operational and financial information throughout all management le"els to %ottom line employees effect employee performance *hich reflects the performance of the organi)ation& Researchers named their set of %est fir HR !ractices as Ideal?type HRM system: and they e0pected to %ring a%out highest organi)ational performance %y implementing this system in the organi)ations& Research pro"ed that Human Resource !ractices ha"e significant effect on Employee !erformance& !aul F Anantharaman (. participation in decision ma+ing process in organi)ational design. $eam*or+.--. !erformance Appraisal. %etter compensation and %enefits plans. 'or+ place culture.
---) researched that grie"ance handling procedures are used to sol"e Industrial Relation issues of employees that are directly related to their *ages. other incenti"es.1uestion a%out the theory of participati"e leadership and employee empo*erment in hospitality operations *hether this doctrine is rele"ant in "arious cultural en"ironments *here defendants of this doctrine propose fundamental shifts in organi)ational structure. legitimate %enefits and prescri%ed rules and regulation defined %y the competent authorities& Handy (EDDD) presented his idea that if HR includes incenti"es. management style and ma+e illogical affirmations that employees *ill sho* results through their performance& He conducted a study of hotels and re"ealed that employees in hotels are more inclined to*ards empo*ered role during deli"ery of ser"ices to guests including creati"e rule %rea+ing to please the guests& Employees thin+ they can perform %etter if gi"en an authority to ma+e decision at the spot *here they are ser"ing the guest *ith ultimate o%/ect of pleasing the guest& He stated that frontline employees o"er and o"er again connect in empo*ered %eha"iour and these employees allo* rate concessions *ithout confer *ith managers& His study reflects that employees recogni)e that they ha"e no authority to function independently& !eterson F #e*in (. then it *ill ensure satisfaction of employees leads to staff retention and loyalty& Bacal (EDD=) researched that corporations spent %illions on HR %ut financial %enefit is minimum& His study e0plores that corporate someho* *or+ under %asic nine functions of HR department& Bec+er F 8erhart (EDDC) stated that HR can lead the organi)ations %eyond the limits of its orthodo0 role to %ecome a strategic partner of the employees %eing a communication channel %et*een employees and the Management& 28 .
) researched that hotels pay their male super"isory staff salary increases in fi"e? star category& Hotels increase *ages as a result of *age rate restructuring ordinances or ad"ices from 8o"ernment and if they don3t penalty are imposed. promotion criteria and employee training& 6an+er"is (EDDI) reported that in Australian hotel industry unions are not effecti"e and his study suggests that ma0imum hotels from industry ha"e less than half of their employees co"ered %y rele"ant unions therefore this is the main reason of lo* rate of *ages and high turno"er in hotel sector of Australia& 2tal+ F 2hulman (EDD.Huselid (EDD. attitude assessment. and corporate financial performanceK some famous human resource management practices significantly effect corporate financial performance measured through the indi"idual performance of employees in an organi)ation and these practices are personnel selection. recruitment efforts. and "arious cultural frame*or+s of each country and indentified four propositions of cultures that areL disparity. la%or management participation. /o% design. mutuality.) stated in his K$he impact of human resource management practices on turno"er. grie"ance procedures. an Australian chain has negotiated a collect %argain agreement *ith its employee for higher hourly rates and /o% fle0i%ilities& Hofstede (EDDE) researched on a "ariety of national cultures that de"elop "arious management styles and 7orm of 4rgani)ation& He %riefed a%out moti"ators. le"els of moti"ation.) presented that HR systems ha"e a systemic effect *hen these systems are applied on a company3s organi)ational structure and these HR systems help the organi)ation get solutions to the real %usiness pro%lems& 2mith (EDD. producti"ity. gender roles and !o*er distance& He proposed that decision ma+ing authority to resol"e day to day affairs should %e entrusted to leading employees to facilitate them to 29 . information sharing. performance appraisal. incenti"e compensation.
2ic+ %enefits. $ransfer@ distur%ances allo*ances.) stated that it has %een asserted that employees are preeminent resources to achie"e outstanding performance . Hours of *or+. culture. compensation. Christmas %onus. structure and age of organi)ation& Acti"ities. $raining of *or+ers. re*ards and *or+ practices& HR responsi%ilities "ary due to en"ironment. Increased efficiency. Acting allo*ances. communication protocol. Annual lea"e. Redundancy %enefits. 'elfare. economic acti"ity. isciplinary procedures. %enefits. staffing. Housing allo*ances etc& and Matter for discussion at enterprise le"el including Method of production. despotic and directi"e leadership style of management and pre"ails autonomous and participati"e leadership style that lead to*ards %etter performance of employees *here indi"iduals are moti"ated see+ing prospects of self?de"elopment and gro*th& 2isson F Bach (EDHD) presented that four main areas in *hich HR department performs areL employee in"ol"ement. training. this style leads to*ards re/ection of con"entional. Compassionate @ casual lea"es. si)e.respond effecti"ely and immediately to the customer re1uests and to resol"e their pro%lems& $his participati"e leadership and employee empo*erment policy endorse a shift in leadership style< further. training and de"elopment. Medical facilities. 4ut? of?station allo*ances. #ong? ser"ice a*ards. management ideology. 2cholarship a*ards. 2afety. /o% analysis. strategy. Human resource practices and management system 30 . #ea"e allo*ances. eath %enefits etc& !eters F 'aterman (EDH. health and safety and defining 24!s& U%e+u (EDHI) stated that Employee Relations are a%out collecti"e %argaining *hich concerns Matters for negotiation at 6ational #e"el including 4"ertime rates. security. performance appraisal. legislations. policies and decisions that affect employees are concerns of HR & 4"er the years it is o%ser"ed that HR responsi%ilities include 5o%@*or+ design.
pro"ides employee the %est platform to practice and enhance their a%ility to contri%ute in the organi)ational performance& Chapter ! 31 .
1 Conflict handling and )nions In its %asics the conflict is difference of opinion& $his difference of opinion occurs due to some reasons li+e your targets and goals or preferences. iscipline. mediating "aria%le and dependent "aria%le& Brief introductions of Employee Relations !ractices (Independent Baria%le) including Conflict Handling and Unions. style of interacting *ith people or communication and sometimes the reason of conflict is ethics and principles& Confliction does not matter %ut ho* the organi)ations handle conflicts does matter a lot& It has %een o%ser"ed that the most separations are %ecause of conflicts o"er communication style and personalities and more o"er these separations ta+e place *here conflicts are not handled properly& 'here la* permits and *here employees feel that their rights are not transferred to them appropriately in a decent manner they esta%lish a platform under some rules and regulations called union& $he purpose and aim of esta%lish unions are to ta+e care %enefits and rights of the employees at primary le"el in other *ords the la%orers& Usually these unions *or+ under charter *hich is o%ser"ed %y the union president elected %y the mem%ers of the union& $he Management appoints its representati"e from Employee Relations negotiates *ith the agent and this process called collecti"e %argain agreement& epartment *ho 32 .'heoretical Fra e wor( In this chapter $heoretical 7rame*or+ has %een esta%lished on the %asis of a set of Employee Relations comprises of si0 +no*n practices and a research model is presented to %etter understand the relationship %et*een independent "aria%les. lac+ of a"aila%le resources. $raining. Benefits. Moti"ation (Mediating Baria%le) and Employee !erformance ( ependent Baria%le) ha"e %een pro"ided to understand their role& !. !articipati"e #eadership. no chemistry %et*een decision ma+ers.
*age rate and other associated %enefits& 6an+er"is (EDDI) stated that the role of unions is not effecti"e in the Australian hotel industry& A comparati"e study suggests that ma0imum from hotel industry ha"e a%out . to appear at the door *hene"er guest call for house+eeping or room ser"ice. *hich defines the parameters for trade unionism< *or+ers3 rights and procedures to protect these rights< sol"ing industrial conflicts and disputes< and the re?addressing grie"ances of *or+ force& $rade unions too+ "ery strong actions including stri+es. loc+outs and litigations *ere common in the era of EDC-and ED=-& $he dispute and conflict %et*een the employer?employees o"er pay structure.--H) presented his study that !a+istan3s la%our and industrial la*s *ere adopted from the legislations and legalities that *ere inherited from at the time of independence from Britain in EDA=& J2ince then 8o"ernment of !a+istan has announced and introduced four la%our policies in the years ED. to ma+e successful deli"ery to the guest in the room or n the restaurant. front office operations... Constitutions and religious %oo+s define a frame*or+ to perform the routine tas+s in personal and professional life *ithin a circle& $hese are called discipline and disciplinary procedures *hich are defined %y the organi)ations are set to maintain discipline& $he disciplined forces usually %ring %etter results that undisciplined forces& 2ame is the scenario in hospitality sector that the ser"ice pro"iders perform as per defined procedures set %y the hoteliers +eeping in "ie* rating standards& 4%"iously these disciplinary procedures %ring a%out %etter performance and streamline *or+ attitude to satisfy the corporate o%/ecti"e that is to please the guest& A%iding %y the rules of the hotel during shift hours creates a chain of tas+s done that %rings good results *ithin gi"en time& $he standard time to coo+ food. EDCD and ED=.Rauf (. time 33 .D. ED. !rocedures. Regulations. security.. #a*s.2 *iscipline Rules. cleanliness of property.-> of their employees in"ol"ed in union acti"ities and they ta+e it as their %asic right to en/oy unionism to sol"e their issues on *ages and %enefits& !.
decision ma+ing.! Participative %eadership #eadership defines *ays and traditions to the follo*ers and ma+e them to follo* their prescri%ed and defined *ay in order to achie"e set targets through moti"ation. training and orientation& !articipati"e leadership tends to*ards ma+ing collecti"e decisions after ta+ing recommendations and suggestions from su%ordinate line staff therefore esta%lishing a sense of participation in decision ma+ing process for %etter results and to create sense of responsi%ility one decisions are ta+en& ruc+er (EDHI) researched that delegation *hile practicing participati"e leadership. is handing o"er assignments to related su%ordinates to complete.consumption in a specific ser"ice deli"ery and maintenance of hygiene standards are all e0amples of discipline& Collier (. he calls it a simplest form of participati"e leadership& Corporate #eadership needs to understand that they are not a%le to complete each and e"ery tas+ and ta+e decision in e"ery matter for there are employees in their organi)ations *ith a%ilities to complete tas+s in a %etter *ay& It is the management *ho should identify e0pertise in employees to implement participati"e leadership culture *hich is a great 34 .--A) presented that the hotel industry management should %e confident and competent in managing discipline professionally importantly at /unior and at middle management le"els %ecause this group *ill ha"e the most control on performance of front?line employees& $hese front?line employees are interacting directly *ith the customers and guests e0tensi"ely& $he Management should %e competent in managing employees positi"ely to %uild *or+ing relationships %et*een employees for the %enefits of the guests& $his %enefit results in guest retention and therefore profita%ility for the hotel and its o*ners& He defines that through training and de"elopment organi)ation can manage %etter discipline and the role of top management is to train and pro"ide counseling to the /unior and middle management employees& !.
short *or+ing hours. resorts and four?star pay as per official *age rates& 35 . people interaction F coordination. recreational tours. Construction and $e0tile offer lo*er %ase pay and lesser opportunities in the form of performance?%ased pay incenti"e& 6an+er"is (EDDI) researched that in hospitality sector *here all operational departments are running the daily affairs the house?+eeping staff is recruited at %ase le"el pay and get promotions on super"isory le"els later on %ut it ta+es years& Hotel salaries are lo*er than a"erage e"en though they contri%ute significantly to o"erall operating costs& $he lo* le"els of pay results lo* le"el performance therefore he suggested pay plans should ha"e a minimum salary and ma0imum incenti"e mi0 of !ay 2tructure to recruit and retain ne* and old employees and total pac+age should %e enough to pro"ide incenti"es and encouraging employees to stay& He defined that less than one third . resem%lance of 5o% escription and preferences of the management *here participati"e leadership is necessary& !. transport facility. 2tandard 4perating !rocedures. employee commitment.$ +enefits $his is self e0plainatory term that referes to the %enefits *hich an employee recei"es at /o% yet need to 1ualify for certain %enefits& Mainly %enefits are included annual lea"es.--H) states that compensation and %enefits is important topic %ecause it affects recruiting and retention efforts. discount coupons etc& Employees focus on the %enefits plans offered at the time of /oining any orgni)ation and compare it *ith the mar+et trends in the same industry& Rauf (. medical assistance plans.moti"ator for employees& !articipati"e leadership has %een affected %y competencies. free meal coupons. organi)ations cannot recruit and retain s+ills they need. child education plan for employees. if it is not enough. sic+ and casual lea"es. uniform. pro"ident fund. star hotels. %onuses. and the most in"estigated topic in Employee Relation Management after moti"ation& $he firms from Hospitality. gratuity.
to adopt ne* technologies and to increase inno"ations. empo*erment. to pro"ide introduction of the other departments of the hotel and to pro"ide information a%out Human Resource policies. rules and regulations resulting Reduced #earning $ime& Memon (. $o pro"ide information a%out companyMs history. their le"el of +no*ledge..--D) researched that the employees de leads to the impro"ement in the decision ma+ing participation. to pro"ide chance of gro*th *ithin the 4rgani)ation. to ha"e ample num%er of *ell trained staff to meet the corporate o%/ecti"es. style of the Management to communicate *ith the employees and *ise and effecti"e use of resources& $he a%ility to create e0clusi"e team through in?house training and de"elopment sessions are cost effecti"e *ay to get sustaina%le ad"antage& 36 . to manage ris+.--=) narrated that it has %een identified that training and de"elopment is associated *ith impro"ed recruiting procedures. friendly and open en"ironment at *or+place. to increase /o% satisfaction and moti"ation among employees. impro"ed system of goods production. enhancing s+ills and changing %eha"iour through continuous learning and feeding in order to achie"e a set le"el performance& Its purpose is to de"elop a%ilities.!. training and s+ills de"elopment sessions of employees and performance contingent incenti"es are the tools to impro"e the performance of employees that leads to the performance of the organi)ation& $he firms create en"ironment that pro"ide +no*ledge and s+ills in de"elopment of *or+force that pro"ides competiti"e ad"antage %ecause it is difficult for competitors to imitate these s+ills& Amernic (. to %uild company image. *ell defined system for re*ards and procedure for accounta%ility. to reduce employee turno"er. 'raining $raining is a *ell planned and organi)aed process to mend and impro"e employees3 attitude. to enahnce process efficiencies to gain financial %enefits.
Creati"ity and Inno"ation and . 8ood *or+ing conditions.---)..otivation Moti"ation is the desire to achie"e some gi"en targets at any gi"en time& It is a difference %et*een sleeping state of mind and action on ground& $he can do approach and the procrastination are %est e0amples to clearly edfine moti"ation& Basically it is instinct to complete internal moti"es& Moti"ation is a self esteem any can ha"e in ones innerself yet re1uires a stimulus for %ein moti"ated& Moti"ated emploees are the asset of an organi)ation especially in the hospitality industry *here the guest of strange nature comes *ith a mind to get satisfaction out of paid %ills& $hese are the ser"ice people *ho pro"ide %est ser"ices only to listen that 9this the %est I ha"e e"er seen any*here: Ho*es (. Meaningful 'or+ F 4*nership. Handin (.---). Indi"idual Influences.uality of #ife& 7urther its is stated that employees ha"e opinions li+e sho* me the money.-E-).!. 37 . Ernst F Noung3s 4ffice of 'or+force Retention (. sho* me respect and sho* me attention or sho* me the door& Acceptance is more important to me than money& Employers *ho announce small merit raises may do more harm than good %ecause employees %ecome irritated that their hard *or+ yielded so little. #eadership.--D) stated that %est !ractices for impro"ing Employee Retention and ha"ing moti"ated employees are summari)ed such as 2election !rocess.. Cuthie (. 8ro*th F e"elopment. 4rgani)ational Influences. Re*ards. $actful discipline. !ersonal loyalty to employee. Empo*erment.-E-) and 'er%ler F Harris (. 7inancial Benefits.
odel Independe nt 1ariable .Figure !.2 'he H#pothesized . $raining) . iscipline. Benefits. Unions. !articipati"e #eadership.ediating 1ariable *ependent 1ariable 0 plo#ee &elations (Conflict handling.otivation 0 plo#ee Perfor ance H#pothesis/ Employee Relations !ractices Impact positi"ely on !erformance of Employees *or+ing in Hospitality Industry of !a+istan Chapter $ 38 .
--.H hotels that ha"e ER and four operational departments at the same time& $hese . Accounts Managers. 7ood and Be"erage Managers.2 Sa pling and *ata Collection ata has %een collected through Assessment .H hotel organi)ations running *ith at least A operational and one Employee Relations epartment of I star.1 Population According to Hotel and Restaurant irectory !a+istan .H hotels *hich are located in the "arious regions of !a+istan is our population& $.ethodolog# In this chapter population. A star and . House (eeping. there are E=-C Hotel esta%lishments in !a+istan ha"ing more than ten rooms and at least one operational department to run the hotel %usiness& In this study population is defined as all hotels in !a+istan that has Employee Relations department and four operational departments including 7ood and Be"erage. E0ecuti"e House (eepers. star category hotels& It *as ensured that all these hotels should ha"e Employee Relations epartment *or+ing under the guidance of a 1ualified Employee Relations Manager to esta%lish %etter results& $he si)e of the firms ranged from . Employee Relation Managers. 39 .AE employees of total .to . 7ront 4ffice and Engineering& In !a+istan there are .. sample si)e. structure of 1uestionnaire and 6ature of Research ha"e %een defined& $..--H?-D. #aundry Managers.uestionnaire sent to . data collection techni1ues.employees& Employees *ho *ere re1uested to send completed 1uestionnaire *ere from 4ffice Managers. 2ecurity In?charge. Room i"ision Managers.&esearch . response analysis.
uestionnaires sent to "arious employees in . Chief E0ecuti"e 4fficers and Business irectors through stamped return en"elop and some 1uestionnaires *ere completed %y "isiting personally& $he response through return en"elop *as astonishingly "ery lo* therefore personal "isits. . re1uest through personal contacts and friends *ere sent to the target population to achie"e the re1uired le"el of data& ata has %een collected to fulfill the o%/ecti"e of the study to measure the Impact of Employee Relations !ractices on Employee !erformance& 7i"e !oint #i+ert scale has %een used to rate from E O 2trongly isagree.! &esponse 2nal#sis $otal . Management Actions *hen conflict comes up and impact of conflicts on employee performance& 40 . Conflict Handling. AH&.$ Structure of the 3uestionnaire $he research data *as collected through 1uestionnaire that consists of nine sections& $he 1uestionnaire consists of mainly closed?ended 1uestions& 2ection E. E0ecuti"e Chefs. A O Agree and . O 2trongly Agree& $.AE& $hese self e0planatory 1uestionnaires *ere sent to four operational departments including food and %e"erage.!urchase Managers.H hotels *ere . 8eneral Managers.> of the total 1uestionnaire sent to employees& $. 7ront 4ffice and Engineering and along*ith these departments Human Resource epartment *as also included& $otal Response recei"ed *as EED that is. contains 1uestions pertaining to the management of Conflict Handling in Employee Relations such asL $olerance #e"el. House (eeping. I O 6eutral. O isagree.
claims. effecti"eness of training sessions and "alidity of training acti"ities carried out %y the organi)ations of respondents& 2ection =. presence of training facility.. legal %enefits and effect of %enefits on employee performance& 2ection C.2ection .. presence and impact of participati"e leadership on employee performance& 2ection . $raining. contains 1uestions regarding the !erformance of Employees in hotel industry %eing affected %y Moti"ation.. Conflict Handling and Unions and Benefits $. contains 1uestions regarding the management of Unionism in the hotel industry. moti"ation and disciplinary policies of the hotel& 2ection A. structure of this industry& iscipline. the role and effecti"eness of unions and impact of union acti"ities on employee performance& 2ection I. contains 1uestions regarding the management of Benefits in Employee Relations of the hotel of respondents including assistance. is consist of 1uestions to get information on Moti"ation #e"el of employees and effecti"eness of moti"ation in employee performance& 2ection H. 1uestions as+ed regarding effect of disciplinary procedures on the performance of employees. 4ature of &esearch 41 . contains 1uestions regarding leadership style of the organi)ation. contains 1uestions regarding the $raining aspect of Employee Relations on hotel industry such as< performance gaps %efore training. contains 1uestions regarding the management of iscipline of Employees in the hotels of respondents.
*ata 2nal#sis and &esults 42 .$he research nature represents the systematic in"estigation into the study of sources to esta%lish latest conclusions& It is an attempt to determine fresh or to %ring together pre"iously defined facts& $his research is presented on E0planatory as *ell as Causal research methods& Chapter .
atri5 2ome of Employee Relations Baria%les are significantly and positi"ely correlated and some Employee Relations Baria%les are negati"ely and significantly correlated *hile some are insignificantly correlated& Conflict Handling and Union F Collecti"e Bargain Agreement are positi"ely and significantly correlated& Conflict Handling and !articipati"e #eadership are positi"ely and significantly correlated& Union F Collecti"e Bargain Agreement and !articipati"e #eadership are positi"ely and significantly correlated& 43 .In this chapter the data analysis of the "aria%le of the study are %eing presented& ata Edition process of the collected data has %een discussed in this chapter for the purpose of analysis& $he effect of employee relations and moti"ation on employee performance.. the effect of Employee Relations on Employee !erformance and the effect of Employee Relation on Moti"ation has %een measured and presented in this chapter that sho*s that ho* in the presence of mediator Employee Relation !ractices effect Employee !erformance *or+ing in the Hospitality 2ector of !a+istan& ..2 Correlation .1 *ata 0diting for 2nal#sis A"erages of the data collected through fi"e point #i+ert scale ha"e %een ta+en against each practice and the a"erage of all practices is ta+en to measure employee relations& 2!22 is used to run multiple regression analysis& $he crohn%ach alpha is calculated %y using 2!22 and its "alues are -&HC that is considered as e0cellent relia%ility of the 1uestionnaire& .
atri5 44 . Conflict Handling and iscipline. iscipline and %enefits and !articipati"e #eadership and Benefits are positi"ely and insignificantly correlated& Conflict Handling and iscipline. Benefits and $raining.. and Moti"ation. iscipline and $raining and iscipline and Moti"ation are negati"ely and "ery significantly correlated& 'able . Union F Collecti"e Bargain Agreement and Moti"ation. Conflict Handling and $raining. Unions F Collecti"e Bargain Agreement and Benefits and Moti"ation are negati"ely and insignificantly correlated& iscipline and !articipati"e #eadership.!articipati"e #eadership and $raining are positi"ely and significantly correlated& !articipati"e #eadership and Moti"ation are positi"ely and significantly correlated& $raining and Moti"ation are positi"ely and "ery significantly correlated& Conflict Handling and Benefits are positi"ely %ut insignificantly correlated& Union F Collecti"e Bargain Agreement and Benefits. Union F Collecti"e Bargain Agreement and $rainings.1 Correlation .
le"el (.=.CH UCBA I2 !# Ben $ra Mot CH UCBA &.DPP ?&AEEPP !# Ben &=-H &-H. A64BA and coefficients of the "aria%les& 45 .PP &ED..P ?&EID Mot &HHD &-HC &--I &-I= &EI- &--- P& Correlation is significant at the -&-.C $ra ?&-EI &E.E.EDP& I2 &DC= &.otivation on 0 plo#ee Perfor ance Employees !erformance has %een ta+en as dependent "aria%le and Employees Relation and Moti"ation *ere ta+en as independent "aria%les& $he results from the analysis sho*ed the coefficients for regression from independent "aria%les to dependent "aria%les& In order to o%ser"e the effect of Employee Relation and Moti"ation on Employee !erformance.P &I&H.?tailed)& .! 'he 0ffect of 0 plo#ee &elation and . &EEA &=. the 2!22 (EC) has %een used to run multiple regression analysis& 7ollo*ing ta%les *ere generated from regression analysis using 9Enter: method& $a%le E presents model summary.?tailed)& PP& Correlation is significant at the -&-E le"el (.H ?&.
.E f .H E ..AC...AA =&.&=-C 2ig .E. EE= EED a !redictorsL (Constant)& Moti"ation ER %& ependent Baria%le E! Coefficients Un?standardi)ed Coefficients Model B E (Constant) ER Moti"ation E&. &.D &-.. Employees Relation and Moti"ation& R? s1uare indicates the proportion of "ariance in the dependent "aria%le (Employees !erformance) 46 .-CE 7 .otivation on 0P .&=.I &-=C &ICE a 2td Error &.E&-. .A =&-D.odel Su Model R R 21uare ar# Ad/usted R 21uare . D&H.A.'able .2 SPSS Output for 0ffect of 0& and .A ependent Baria%lesL E! Bets &.D indicates medium positi"e correlation %et*een Employees !erformance.--- In the Model 2ummary $a%le< the correlation coefficient (R) O -&.H- a !redictorsL (Constant)& Moti"ation ER 24O12 Model E Regression Residual $otal 2um of 21uares .Da .C= 2td Error of the Estimate .....&CAE C&CH&--&--D &--2tandardi)ed Coefficients E 2ig Mean 21uare E&I== .
H> "ariation in Employees Relation is %eing e0plained %y the predicting "aria%les and remaining "ariation in Employees Relation *ould %e due to some other factors& In the A64BA $a%leL of 7?2tatistic .H. moti"ation and *or+ structure are significantly positi"ely related to their performance that leads to ultimate organi)ational performance& $hey pro"ed that if there is close correlation %et*een "arious adopted ERM !ractices of a fit group significantly positi"ely effect performance of the organi)ation and employees& $heir research pro"ed that there is a significant positi"e relationship %et*een ERM 47 .&=-C and !?"alue O -&---Q-&-E sho*s that o"erall model is significant. Moti"ation O-&ICE means that as moti"ation increase one unit Employees !erformance increases -&ICE& Moti"ation is also significant as p?"alue O -&--DQ-&-E& $herefore.*hich can %e e0plained %y the independent "aria%les (Employees Relation and Moti"ation)& R? 21uare -&. %oth the independent "aria%les ha"e significant and positi"e relation *ith Employees !erformance& $his has pro"ed the hypothesis is true that Employees Relation and Moti"ation has a positi"e relationship *ith Employees !erformance& $he findings of this study agree *ith the findings of "arious researchers and pro"e that Employee Relations and Moti"ation ha"e significant impact o"er employee performance& elaney F Huselid (EDDC) pro"ed through their study that a set of fit Employee Relations !ractices *hich stimulate "arious attri%utes of employees including personal and professional s+ills. indicating that using the model is %etter than guessing the mean& $he un?standardi)ed coefficient Employees Relation O -&-=C sho*s that as Employee Relations increases one unit the Employees !erformance increase -&=C unit& $his is significant as *ith p?"alueO-&--DQ-&-E& 2imilarly.means .H> "ariation in the Employees !erformance is accounted for its linear relationship *ith the independent "aria%les (Employees Relations and Moti"ation)& $his is an o"erall measure of the strength of association& $he "alue of R?21uare sho*s that ..
) pro"ed in their research that 4rgani)ations *ith commitment human resource systems en/oys relati"ely %etter employee performance (organi)ational performance) *hereas organi)ations that adopts control human resource systems are far %ehind in achie"ing %etter le"el of employee performance& $heir research e0plores that Commitment Human Resource 2ystems are including 2election !rocess.=I 2ig &A.. Employees. $raining.--. Empo*erment of . a !redictorsL (Constant)& ER 24O12 Model 2um of 21uares df E Mean 21uare &-AH 7 &. 5o% esigns etc& ecentrali)ation. Benefits and Incenti"es.. 2+ills Enhancement !rograms.-=-a &--. Conflict Handling.$ 'he 0ffect of 0 plo#ee &elations on 0 plo#ee Perfor ance Employee !erformance is a linear function of Employee Relations that is E! O f (ER) O R S T ER S U ependent Employee Relation is Independent Baria%le and Employee !erformance is presents model summary.HH.! SPSS Output for 0ffect of 0& on 0P . A64BA and coefficients of the "aria%les& Baria%le& 7ollo*ing ta%les *ere generated from regression analysis using 9Enter: method& $a%le . Moti"ation.odel Su ar# Ad/usted R 21uare ?&--A 2td Error of the Estimate .I Model R R 21uare E .!ractices li+e training and selection and firm performance that is result of indi"idual performance of employees& Boselie.. !aau*e F Richardson (. 'able .- 48 .
> "ariation in the Employees !erformance is e0plained %y its linear relationship *ith Employees Relation& $he 7 "alue -&.V -&-.&=ID S -&.otivation Moti"ation is a linear function of Employee Relations that is Moti"ation O f (ER) O R S T ER S U 49 .indicates that o"erall model is insignificant& $he un?standardi)ed coefficient of Employees Relation O -&-.A.2tandardi)ed Coefficients E 2ig Employee !erformance O .A ER In this Model 2ummary R?21uare -&--..&.&=ID &-.A 2td Error &E. Bets &-=.. 'he 0ffect of 0 plo#ee &elation on .E EEH EED &-HI a !redictorsL (Constant)& ER %& ependent Baria%lesL E! Coefficients Un?standardi)ed Coefficients Model B E (Constant) ER .DD &=. means -&.= &--&A.. %ut this is insignificant as !?"alue O -&A..E Regression Residual $otal &-AH D&H-H D&H.& $herefore the result reflects that in the a%sence of Moti"ation that is mediating "aria%le.I &-H. the Employee Relation ha"e no effect on Employee !erformance& .=I *ith !? "alue -&A.A indicates that as Employees Relation increases E unit results Employees !erformance -&-.
-&=DC .odel Su ar# Ad/usted R 21uare &-CA 2td Error of the Estimate &AEDHE Model R R 21uare E & .Employee Relation is Independent Baria%le and Moti"ation is ependent Baria%le& 7ollo*ing ta%les *ere generated from regression analysis using 9Enter: method& 4ut $a%le $a%le I presents model summary.C= EH&H.?I&-EC &--&--H 2tandardi)ed Coefficients E 2ig $he estimated Regression e1uation M O I&I=I S -&EA.C=a &-=..$ SPSS Output for 0ffect of 0& on ..&IDD a !redictorsL (Constant)& ER %& df E EEH EED Mean 21uare E&C-I &E=C 7 D&-DA 2ig &--I ependent Baria%lesL Moti"ation Coefficients Un?standardi)ed Coefficients Model B E (Constant) ER I&I=I &EA. 2td Error &E=D &-A= Bets &. ER 50 . A64BA and coefficients of the "aria%les& 'able . a !redictorsL (Constant)& ER 24O12 Model E Regression Residual $otal 2um of 21uares E&C-H .otivation .
> "ariation in the Moti"ation is e0plained %y its linear relationship *ith the Employees Relation& $he A664BA ta%le.--H) and ependent Baria%le (Employee !reacher F Hayes (. B is 51 . IB is independent "aria%le i&e Employee Relation !ractices. the 7?Balue D&-DA *ith !?"alue -&--I Q -&-E.ediated 0ffect 2o%el $est has %een carried out to test *hether the mediator (Moti"ation) transmits the effect of Independent Baria%le (Employee Relations) to a !erformance)& !reacher F Hayes (. B is dependent "aria%le i&e Employee !erformance. means =&.In the model summary ta%le. and A is unstandardi)ed regression coefficient for the relationship %et*een Employee Relations and Moti"ation& 'here sa is standard error of A.. means as Employees Relation increases E unit results increase in moti"ation %y -&EA.sho*s that o"erall model is significant& $he un?standardi)ed coefficient of Employees Relation O -&EA. units& $his is also significant as !?"alue -&--I is less than -&--E& $herefore the result reflects that Employee Relation has significant effect on Moti"ation *hich is Mediating Baria%le in the Model& . R?21uare -&-=.- .--A) used 2o%el $est for assessing indirect effects in multiple mediator models and in simple mediation models& A "aria%le is percei"ed a mediator to the degree it %rings the effect of an independent "aria%le upon a dependent "aria%le& Mediation ta+es place *here Independent Baria%le significantly effects the mediator and@or *here the Independent Baria%le significantly effects the Baria%le directly and@or *here the mediator significantly uni1uely effects the and@or *here the effect of the Independent Baria%le on the is ta+en into the model& ependent ependent Baria%le ependent Baria%le reduces if mediator In the figure %elo*.
ediated 0ffects In order to get a and sa.! . Regression Analysis *ith Employee Relation (IB) estimating the Moti"ation (Mediator) and in order to get % and s%. %.unstandardi)ed coefficient for the relationship %et*een the Moti"ation and the Employee !erformance and s% is standard error of B& Figure .. and s% placed into the related fields and this calculated the indirect effect of the ER (IB) on the E! ( B) through Moti"ation (mediator)& $he 2o%el $est 2tatistic can %e o%tained *ith the help of follo*ing e1uation 52 . sa. regression analysis *ith the *ith Employee Relation (IB) along*ith Moti"ation (mediator) predicting the Employee !erformance ( B) has %een used& $he o%tained figures for a.
- Sobel 'est for .ediation 0ffect of . Sobel 'est for .R$(%..Psa.ediation with t6statistics 'here C&CH is the t G statistics of the Moti"ation o%tained from 2!22 4utput Coefficient $a%le E& 'here ?I&-EC is the t G statistics of ER o%tained from 2!22 output Coefficient $a%le I& Results reflects that this is a 9Complete Mediation: case as the p?"alue -&--. S a.otivation $he 2o%el $est gi"es ! "alue -&--.D so there is a significant effect of moti"ation (i&e& mediator) on the employee performance along?*ith employee relation acti"ities& 'able .): 'able .Ps%..D is less than Relation and Employee !erformance& R(-&-.E1uation for 2o%el test is 9 )?"alue O aP%@2..)& $herefore there is a significant and complete mediation effect of Moti"ation %et*een Employee 53 .
through personal contacts the re1uired information someho* gathered to complete this study and there *ere some hoteliers *ho helped %y pro"iding the copies of policies and procedures& A matter of concern that could ha"e %een o%"ious is the confidentiality of the responses to the 1uestions as+ed& $he fact is that the respondents. *ere gi"en the 1uestionnaire to complete on their o*n& $he researcher had no *ay to +no* if the respondents got assistance of other employees in completing the 1uestionnaire or they did it %y their o*n& 54 . *ho are employees of hotel industry that is someho* orthodo0 in its nature. the proposed direct relationships %et*een a set of Employee Relation !ractices and Moti"ation and %et*een Moti"ation and Employee !erformance are empirically "alidated& $he mediating effect analysis reflected that a set of si0 famous Employee Relations !ractices impact Employee !erformance significantly through Moti"ation& $he area of study is restricted to the +no*n cities of !a+istan as the researcher %elie"es that the resolution in these %ig cities could %e rele"ant to the hotel industry of !a+istan& $here *as not a good response from hoteliers *hile returning filled 1uestionnaire forms i&e& AD>& Another constraint in this research *as information& $he hotel industry in !a+istan in general is "ery loath to pro"ide documented information saying that policies of the hotels are secret and therefore cannot %e pro"ided& Ho*e"er.Chapter Conclusion and &eco endations $his study finds o"erall support for the hypothesis that Employee Relations !ractices Impact positi"ely on !erformance of Employees *or+ing in Hospitality Industry of !a+istan as the relationship specified in Hypothesis is found to %e significant& $herefore.
Con"entionally focal point of Employee Relation Management system has %een "ie*ed as short?term and the system has %een used %y the most of the organi)ation and ER Managers %ureaucratically instead of aristocratic are trying to enhance employee performance& ER !ractitioners and researchers are agreed that human resources are a source of competiti"e ad"antage through strategically managed and implemented ER practices& Employee Relations can result positi"ely significantly only if %est fit set of ER !ractices are adopted& Employee Relations Managers mostly focus on administrati"e policies and procedures to maintain performance of employees through discipline and increments *hich is not a right *ay to get results& Research pro"ed that Moti"ational practices effect employee performance positi"ely& &eferences 55 .
& Asghar.--I)& Effecti"eness of $raining in 4rgani)ationsL A Meta?Analysis of esign and E"aluation 7eatures& 5ournal of Applied !sychology Bol& HH . !aau*e.). Ayou%. 5& (. B&. F 8erhart.E& Collier. 2& (. A& (. Bennett.--A)& Understanding HRMG7irm !erformance #in+agesL $he Role of the 92trength: 4f the HRM 2ystem& Academy of Management Re"ie* .).D& Arthuer. R& 8& (. Mahmood. B&. 7aisala%ad. R& (EDD=)& $he Corporate 7ileL $he Role of Human Resource epartment& Baloch.)& Human Resource Management.D (. 5&. F 6agy. . $&2&. '&.--. !a+istan (An Empirical E"idence)& European 5ournal of 2ocial 2ciences & Bec+er. 2ipos. B& (August EDDC)& $he Impact of HR Management on 4rgani)ational !erformanceL !rogress and !rospects& $he Academy of Management.-E-)& Relationship Bet*een HR !ractices and !ercei"ed EmployeesM !erformance of Ban+ers in 6'7!. A& (. 2&. (iani. Michael (. A&.th '2EA2 International Conference on Economy and Management $ransformation& #eadership style and culture for inno"ation in hotel industry& Bacal.)& Armstrong3s Hand%oo+ of Management and #eadershipL Approaches to HRM and #F & (ogan !age #imited !u%lishing& United 2tates Amernic.)& !roceedings of the .--=)& $he Impact of Human Capital Management on 2hareholder Balue& Business Re"ie* . !&.E. .& B&.--H)& Relationship of $raining 'ith Employees3 !erformance In HotelingL !earl Continental Hotel !a+istan& e"elopment imensions International Inc& Ahmad. Hotels and #ocal 8o"ernments& Erasmus Uni"ersity Rotterdam.)& ra+e Anton.-I?.--D)& $he Role of 2enior #eadership in Human Capital and $alent Management& AR$ 4 International Conference& !enang. F 4stroff.--A)& Managing disciplinary application in the hotel Industry& igital (no*ledge & 56 . 2&'& (. R& (. A& (.-EE)& An Empirical 2tudy of Retention Issues in Hotel IndustryL A Case 2tudy of 2erena Hotel. 2& (. .--H)& Apprenticeship $raining in !a+istanL A Comparati"e 2tudy of Apprenticeship !ractices In !un/a% and European Countries& International 5ournal of $raining Research . C&. ==D?H-E& Boselie. C& (. 6&. E?ED& Ba%atia. F Richardson. M&. 2& H& (. E (I. . 8&. !a+istan& European 5ournal of Economics.--.--. C (.IA ? . . EDGAI& Armstrong. F Mufti. F Hussain. '&. Ali. !&. A&. 7inance and Administrati"e 2ciences . E& (. Rotterdam 2chool of Economics& Bro*n. Institutionali)ation and 4rgani)ational !erformanceL A Comparison of Hospitals. F 2chroeder.. & E&.--I)& $he Impact of Human Resource Management !ractices on 4perational !erformanceL Recogni)ing Country and Industry ifferences& 5ournal of 4perations Management . 7&. A&. Ispas. F Bell. Ahsan. '& F 2iddi. . Bol& ID 6o& A . Edens.A. Malaysia& Ar%a%.Afa1. F (han.
---)& Research 4n Unioni)ed 8rie"ance !roceduresL Management Issues and Recommendations& Human Resource Management . (& (. C& A& (.)& $he Impact of Human Resource Management !ractices 4n $urno"er. A& & (. from Hotel6e*s6o*&com& Cuthie.---)& Employee Retention& A"atar Resources Inc& Hansen. R&C & (. F Huselid. && (.-E. ID. M& A& (EDD.-E-)& Employee ***&referecefor%usiness&com& Moti"ation and Retention& Retrie"ed from elaney. ID (6o& A). from Huselid.-E-. 2pain& #e*in. (& (.--=. M& A& (EDDC)& $he Impact of Human Resource Management !ractices on !erceptions of 4rgani)ational !erformance& Academy of Management 5ournal .) Human Resource e"elopment3s Contri%ution to Continuous Impro"ement Handy. F !eterson. ? A-C& 57 . & (.---)& 4rgani)ational Health& $he 'all 2treet 5ournal & 7ida. DAD? DCD& ruc+er. 5&C& (. 2eptem%er)& HR Management and (no*ledge ManagementL A Road Map $o*ard Impro"ing 4rgani)ational !erformance& 5ournal of American Academy of Business.-EE. IH (I).A& 7rancis. 8& (EDDE)& Cultures and 4rganisationsL 2oft*are of the Mind& #ondonL Mc 8ra*hill& Ho*es. 2cheduling and Controlling& Blac+*ell !u%lishing& Hofstede.)& $he Cultural Relati"ity of Employee Empo*ermentL 7indings from the European Hotel Industry & Cross?Cultural Challenges in the $ourism IndustryL $he Educational Ans*ers& Barcelona.--I)& !ro/ect ManagementL A 2ystem to !lanning. !roducti"ity and Corporate 7inancial !erformance& $he Academy of Management 5ournal . C&5 (. CI.--. Cam%ridge .--.--D)& Human Capital Impro"ementL A *ay to #e"erage Air 7orce 7inancial Management $ransformationL Ad"anced Education and $raining& $e0as& Harold. R&.?C=..-E-)& ***&opstrategies&org& 4rgani)ational !erformance 2trategies& Retrie"ed . ID (A).& 5ohn& H& (.--=)& HRML 2trategic Human Resource Management in a Changing En"ironment& Mc8ra*hill& (alidas. p& E. C& (EDDD)& Understanding 4rgani)ations& 40ford Uni"ersity !ress Inc& Handin. August)& Retrie"ed 5anuary . 5& (.Conine. & A& (. 5& $&. !&7 (EDHI)& Concept of the Corporation& $ransaction !u%lishers& 6e* 5ersey& Ernst F Noung3s 4ffice of 'or+force Retention.
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7 0 plo#ee &elations 1 I Ii Iii I" B Bi Bii 2 I Ii Iii I" B Bi Bii ! I Ii Iii I" B Bi Bii $ I Ii Iii I" Bii . I Ii Iii I" B Bi Bii Conflict handling $olerance le"el among the employee is "ery high Conflicts among employees are handled amica%ly 'hen conflict arises management tries to *in Hotel resol"es issues on merit and on legal grounds Conflicts effect performance positi"ely Conflicts effect performance ad"ersely Conflicts does not affect employee performance )nions and Collective +argain 2gree ents Unions are allo*ed in the organi)ation Union plays a negati"e role Union negotiates and *or+ers do their /o% Employees focused on performance. once CBA finali)ed Unions are effecti"e in employee performance Employees performance is going do*n due to unionism Unionism and CBAs do not effect performance at all *iscpiline Employees are not performing *ell due to disciplinary procedures of the hotel isciplinary !olicies increase performance !olicies ha"e not %een changed for the last many years iscipline has increased output of employees isciplinary policies moti"ates employees iscipline has effected employees3 performance %adly isciplinary procedures do not effect performance Participative %eadership Management ta+es opinions %efore any decision $his !ractice of ta+ing opinion from employees contri%utes positi"ely in employee performance& $he Management ne"er ta+es opinion %efore decisions $his !ractice of not ta+ing opinion from employees effect employee performance %adly& !articipati"e #eadership style does not affect performance +enefits HR pro"ides assistance to get %enefits and Claims Employees are satisfied *ith the current %enefits #egal %enefits are pro"ided %y the hotel Benefits positi"ely contri%utes to*ards performance 4ther Benefits are not pro"ided to the employees !ro"ided Benefits effected employee performance %adly Benefits do not effect employee performance Strongl# *isagree 'end to *is6 2gree 4eutral 'end to 2gree Strongl# 2gree 60 .2nne5ure 1 3uestionnaire Sr.
I Ii Iii I" B Bi 9 9 I Ii Iii I" B Bi Biii : I Ii Iii I" B Bi Bii 'raining E"aluations are carried out to find performance gaps $raining is %eing pro"ided to the hotel staff $raining pro"ided %y the hotel impro"ed employee performance significantly $raining sessions here are %oring and %aseless $raining sessions are not impro"ing employee performance $raining does effect performance of employees .otivation Hotel moti"ates employees through "arious practices Employees are *ell moti"ated Employees are performing *ell due to moti"ation Moti"ation le"el among hotel employees is "ery lo* Employee !erformance is lo* due to lo* le"el of moti"ation Employees are demoti"ated emoti"ated employees perform %adly Moti"ation has no effect on Employee !erformance Perfor ance !erformance can %e increased %y handling Conflicts !erformance le"el does effects of !roper CBA negotiation !erformance is effected %y the iscipline of employees !erformance is impro"ed through !articipati"e #eadership Employees !erform %etter if %enefits are satisfactory !erformance le"el is achie"ed through $raining !erformance has nothing to do *ith Moti"ation Strongl# *isagree 'end to *is6 2gree 4eutral 'end Strongl# to 2gree 2gree 2nne5ure 2 Correlational 'able 8 reliabilit# anal#sis 61 .
E. &I=.=.P &-.E P& Correlation is significant at the -&-.&EA= &EEA EE= &-II &=.?&AA=PP &--EE= &H.P &-I= EEH ?&EID &EIE.EDP &-E= EEH ?&--A &DC= EE= &.H &-HC E.E UCBA &.&E.E&---PP &--E.?&.E EEH &H.?tailed) 6 !earson Correlation I2 2ig& (.?tailed)& PP& Correlation is significant at the -&-E le"el (.$. E.C EEH &ED.E.?tailed) 6 !earson Correlation !# 2ig& (.E.C EEH E $ra ?&-EI &HHD EEH &E.?&. &=-H EEH ?&-EI &HHD EEH ?&-EI &HHD EEH E.E Mot ?&-EI &HHD EEH &E.. E.E EEH &-I.P &-I= EEH ?&EID &EIE.?tailed) 6 !earson Correlation Ben 2ig& (.&E.PP &--I EE= ?&.P &-I= EEH E.H &-HC E.?&EID &EIE. le"el (.=.E.EDP &-E= EEH E I2 ?&--A &DC= EE= ?&AA=PP &--EE= E !# &.PP &--I EE= &ED.&eliabilit# Statistics Cron%achMs Alpha &HCI 6 of Items AC Correlations CH !earson Correlation CH 2ig& (.DPP &--EEH &-H. &I=. &=-H EEH &-H.=. Star Hotels 62 .=.E&---PP &--E.P &-I= EEH &ED.?tailed) 6 EEH &.P &-.?tailed) 6 !earson Correlation $ra 2ig& (.?&EID &EIE.H &-HC E.H &-HC E.EE= ?&AEEPP &--EE= &EA= &EEA EE= ?&.PP &--I EE= EEH &-II &=.PP &--I EE= &ED.?tailed) 6 !earson Correlation UCBA 2ig& (.?tailed)& 2nne5ure ! %ist of !.DPP &--EEH ?&AEEPP &--EE= E Ben &-I.?tailed) 6 !earson Correlation Mot 2ig& (.
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