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Presented to :
Sir HABIB Khan

Project:
On compensation and benefit of HR of AVARI HOTEL Lahore
Presented by:
GHAZIA ZAFAR
JAVIRIA KHALID
NABEEL
SYED ALI RAZA

2143432
2143431

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TABLE OF CONTENTS

ACKNOWLEDGEMENTS
Starting with the name of ALLAH the most beneficent and the most merciful whose
blessings are abundant and favors are unlimited.
As a mater a fact, people tend to forget those who are behind there achievements and
have stood for them whenever they need assistant.
Our gratitude will be meaningless if we are not grateful to almighty Allah for
his kindness upon us. His benevolence and blessings have made us capable.

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INTRODUCTION
Avari Hotels is founded in 1944 and is a Pakistani chain which manages hotels in Pakistan, Dubai,
and Toronto, Canada. It was founded by Dinshaw Avari and is now run by his son Byram Dinshawji
Avari, the CEO of Avari Hotels Ltd, and his two sons Dinshaw and Xerxes. Avari's three hotels in
Pakistan are the Avari Towers, Karachi, the Avari Lahore, and the older Beach Luxury Hotel in
Karachi. All hotels offer accommodation, restaurants and outdoor dining.
Portraits of Dinshaw Avari and his wife Khorshed hang in the entrance lobby of the Avari Towers
Hotel in Karachi,Lahore where the two largest function rooms are named after them - Dinshaw
Mahal and Khorshed Mahal.

FOREWORD
There are several information-related issues at hand for AVARI HOTEL
Lahore of primary importance is the human resource department that has the
capability of performing functions such as:
Job analysis, recruitment, training and development, performance appraisal,
setting compensation policies and providing safety and health to their employees.
This report covers all the aspects of the human resource management COMPENSATION AND
BENEFITS concepts presently applied in AVARI HOTEL. On the basis of observation it has
been extracted that Human Resource in AVARI HOTEL is highly motivated due to the perfect
conditions provided to them.

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VISION
Together we can make the difference.
Perfect co-ordination guarantees maximum performance.

MISSION STATEMENT
We aim to provide all our guests outstanding quality and comfort with genuine friendliness and
professional warmth,surpassed by none.

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Standard To Achieve Our Mission

Unconditional team work and communication.


Being Fair with our guests and with our colleagues.
Personal responsibility
For oneself
For property
Protecting assests and identifying defects
For knowing the product
For making guest complaints your own and recoeding them properly to prevent a
repeat occurrence.
Salesmanship being everyonesresponsibility
Always talk positive about hotel
Sell services of hotel
Being profitable

OUR BASICS

Always greet a guest warmly and sincerely,with eye contact and using guest name if and
when possible.
Always smile sincerely
Always present your self in a professional manner.
Proper footwear,clean and polished
Correct name tag
Clean,neat,and properly fitting uniform
Always be ready to help a guest
Always use appropriate language when talking to guests and colleagues
Always follow safety rules

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Always report hazards to your supervisors


Always treat your colleagues

AVARI HOTEL LAHORE

INTRODUCTION
Industry

:Hospitality, Tourism

Founded

:1962

Headquarters

:Karachi,Pakistan

Key people

:Dinshaw Avari
:Byram Dinshawji Avari (CEO)
:Dinshaw & Xerxes Avari (Managers)

General manager

:Mr. Qasim Jafri

H.R Manager

:Mr.Awais Khan

Products

:Hotels, resorts

Website

:www.avari.com (Pakistan)

The AVARI HOTEL , Lahore is a five star hotel located on Sharah-e-Quaid-e-Azam, on the same
stretch of road as the Alhamra Arts Council, Lahore Zoo, Pearl Continental hotel and the Parliament
building.

HISTORY AND BACKGROUND OF AVARI LAHORE

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The year in 1905 Two Italian gentleman,Falettis and Nedous,start building a hotel in
Lahore.Completed in 1908,named the Nedous,this hotel is not only in the heart of the city,but also in
the heart of history itself,as it belongs to the daughter of Mr.Nedous,who marries Sheikh Abdullah,the
late president of post partition Kashmir.
In 1947,after the independence of Pakistan,Nedous was not run as hotel,but was turned into
numerous small offices.
In 1961,Nedous was auctioned to the late Mr.Dinshaw Avari and after extensive
renovations,Park Luxury Hotel came into existence in 1962. The Hotel is 5 minutes drive away
from the central city and 25 minutes away from Allama Iqbal International Airport. Main
attraction for visitors to Lahore are Lahore Fort, Magalia Badshahi Mosque, Magalia Shalimar
Gardens, Polo Club, Gymkhana Golf Course, Alhamra Arts Council, Lahore Museum, Quaid-eAzam Library and Race Course Park which are within 10 km radius of the Hotel. The point of
interest for the guest also includes Wahgah Border.
Total 80 rooms,50 of which were suites,park Luxury boasted of 5 dining halls,a lobby,card
room,billiard rooms,garages and 150 rooms for servants.Each of the 50 suites, besides a huge
bath offered attached dressing and sitting rooms,alongwith their own servant room and a
parking garage!Vadera (rich landlords) and businessmen were the usual clients.
Year 1970 saw the end of this grandeur as this building was demolished according to a contract with
the Government.The foundation stone for the present hotel was laid on September 23 rd 1973 and was
inaugurated on January 3rd 1978,in association with Hilton International for 10 years.Hilton
International Lahore operated as one of the only two five-star Hotels in Lahore.
On October 1st 1988,this contract to an end and the management of Hilton International Lahore
reverted back to the owners, Avari Hotels Limited.
The Avari Hotels in Lahore and Karachi now portray a new corporate logo with the name Avari Lahore
and Avari Tower Karachi.

BRANCHES OF AVARI INTERNATIONAL HOTEL

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Location
The 20 story, 236 rooms & suites, newly renovated hotel is located in downtown Karachi near
major cultural attractions within walking distance of shopping and commercial centers. Just 30
minutes drive from Jinnah International Airport via car-shuttle with a straight approach through
the main highway Shahra-e-Faisal.

Location
INTRODUCTION
Beach Luxury Hotel is ideally located adjacent to the central banking & business district (I.I.
Chundrigar Road) and close to the port and other commercial areas. It is still the only resort hotel in
the port city of Karachi, established on March 21, 1948, being the first internationally-acclaimed hotel
established after Partition in Karachi.
The Hotel is the only one in Karachi (for that matter, in Pakistan) set amongst lush tropical gardens
and palm trees, offering unique views of the creek leading to Karachi Harbour, 100 acres of natural
mangroves, variety of birds in their natural setting and the most fabulous winter setting sun!

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Location
The 5 star Avari Islamabad is scheduled for soft opening in late 2012.Avari Xpress is ideally
located in the heart of business hub with easy access; 30 minutes away from International
Airport, 5 minutes from city Centre Shopping Malls and close to all major landmarks including
the glorious Faisal Mosque. Due to its location, Avari Xpress has become an ideal choice of
travelers.

Location
This hotel is not only in the heart of the city,but also in the heart of history itself .The Hotel is 5
minutes drive away from the central city and 25 minutes away from Allama Iqbal International
Airport. Main attraction for visitors to Lahore are Lahore Fort, Magalia Badshahi Mosque,
Magalia Shalimar Gardens, Polo Club, Gymkhana Golf Course, Alhamra Arts Council, Lahore
Museum, Quaid-e-Azam Library and Race Course Park which are within 10 km radius of the
Hotel. The point of interest for the guest also includes Wahgah Border.

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Overview
Located just minutes away from Dubai International Airport near the Clock Tower in Deira, this 4-star
hotel offers a convenient location to the business and commercial areas of Deira. Near to the Deira
City Centre, guests will enjoy the convenience of shopping.

Location
Located near the Clock Tower in Deira, Avari Dubai is just minutes away from Dubai International
Airport and Deira City Centre Shopping Mall. The hotel is within walking distance from Al Rigga Metro
Station and the famous Dubai Creek.

FACILITIES IN ALL BRANCHES OF AVARI HOTEL

Business Center
Wireless Internet
Banquet Facilities
Conference/Meeting
rooms
24-hour front desk
Family rooms
Luggage storage
Designated smoking area
Express Check-In/-Out

24 Hour Room Service

Currency Exchange
Fitness Center
Swimming Pool
Massage Services
Sauna/Spa
Billiards
Barber/Beauty Salon
Laundry/Dry
Cleaning
Tour Desk
Babysitting Service

Parking
Facilities for the Disabled
Airport shuttle
VIP room facilities
Shoe shine
Fax/photocopying
Concierge service
Shuttle service (free)
Shuttle service (surcharge)
Special Diet Menus (on
request)

Car Rental

Trouser Press

HR DEPARTMENT AT AVARI HOTEL LAHORE


The HR department is headed by Mr.Awais Khan in AVARI HOTEL Lahore. Their
human resource department is located in the employee cafeteria and along with the other HR
offices.

OBJECTIVES OF THE HUMAN RESOURCE DEPARTMENT

Job analysis
Selection
Recruitment
Orientation

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Training
Review benefits

ROLE OF HR DEPARTMENT AT AVARI


Organization needs people and people need organizations.
Since AVARI Hotels are a part of the service industry, the HR element of the organization is
fundamental and carries a great value. We interviewed Awais Khan who is the HR
Manager at Avari Hotel Lahore regarding the role of HR department in avari. He provided us
with his valuable time to brief some important aspects of Avaris HR practices.
Human resource plays a vital role in the smooth running of an organization. The total
numbers of employees working for AVARI HOTEL Lahore is approximately 562 .
Although AVARI HOTEL segregates its employees and their duties in departments, the
individual employees work together as a team to provide the guests with exclusive services.
They view their guests as their first priority and provide them with an everlasting experience.
They struggle hard to maintain the nations most exciting hotel experience. Collectively they
provide the guests with such services that the client re-discovers the simple pleasures of life.

FUNCTIONS OF HR DEPARTMENT AT AVARI HOTEL


Like all other HR Departments Avaris HR Department is responsible for managing all the
activities related to Human resource.

Avari has the following Human Resource Management functions

Personnel planning
Recruitment
Selection
Interview
Orientation
Training
Performance appraisal
Benefits & Compensations
Health & safety

AVARI HOTELS HR ROLE IN EXECUTING STRATEGY


Avari hotels functional strategies support its competitive strategies. To play a
role in executing strategies Avari must require highly committed employees which are the
part of the Avari culture. This means Avari, begins its HR processes to create a committed,

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competent, and customer-oriented workforce.Hotels HR department supports strategy


implementation in many ways. When HR played a strategic role it becomes a good
culture of Avari.

HRS ROLE AS A STRATEGIC PARTNER


HRD also play a vital role in making strategies with other departments as well. They make their
own forecasting plans. Our view is that Avari hotels HR is strictly operational and that HR
activities are not strategic but it can help organization in making strategies. HR can also
adapt the strategies made by the organization for them. Mostly the top
managements craft the strategies of the organization. The strategies made for the HR dept.
are then programmed to execute that strategy. For Avari Hotels strategies there is a
matching human resource strategy.

TRAINING & DEVELOPEMENT


Steps used for the training and development of employees at AVARI HOTEL are as follows;

They provide training their employees on the job and also off the job.
In Pakistan very few organizations are able to provide trained workforce for the hotel industry
in accordance with international standards. The human resource department of AVARI
HOTEL has to recruit and select the trained as well as untrained candidates and train

them according to their own needs.


AVARI hotel also use different Training centers .
Safety training is also provided to the employee.

TRAINING APPRAISAL
After training, the trainee performance is appraised by the immediate supervisor. The
immediate supervisor in AVARI HOTEL evaluates trainee performance on trainees
assignment, tests and on the job work. This appraisal is very important and it helps a lot in
judging trainees behavior. This appraisal also helps to evaluate employees for promotion.
This appraisal shows trainees:

Ability/Desire to learn new things.


Knowledge.
Leadership qualities.
Quality Consciousness.
Discipline.
Attitude.
Flexibility.
Personality.
Strengths.
Weakness.

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The immediate supervisor gives his remarks (assessment) according to trainees work and
also attaches his tests and assignments during training with that form.
These appraisal forms are sent to HRD for re evaluation and they keep these forms as a
record of employees performance.

PERFORMANCE APPRAISAL PROCESS AND METHODS

Appraisal is essential for enhancing the productivity of employees and to bring quality

improvements in the overall performance of the organization.


At AVARI appraisal is done by the head of the specific department whose employee is being

appraised. The appraisal method used at AVARI is Behaviourally Rating Scale.


Employees promotion (or demotion) is finally approved by the HR Manager.
Appraisals are conducted every year.

The most important factors that are considered while appraising an employee are:

Appearance
Conduct
Professional Work
Leadership & Teamwork
Planning & Organization
Initiative & Creativity
Communication
Training Skills
Business Attitude & Operational Performance
Achievements of Objectives

Besides this they also consider their customers feedback regarding employee
performance in order to bring quality improvements.They maintain comment boxes and also

E-room for their feedback about the services.


An immediate supervisor plays an important role in performance appraisal. The actual
appraising is done by the immediate supervisor of each employee. After rating an employee
the supervisor consults with the HR manger and then both of them decide how much to

compensate each employee and who is to be promoted?


When an employee is promoted, he/she is required to meet the new post
requirements. For example qualification, the employee is ought to assure that
he/she is the student of the required program.

BENEFITS & COMPENSATIONS


AVARI provides some kind of benefits and services to its employees in order to facilitate them.

BENEFITS:
1.

WORK SCHEDULE:

Work schedule differs for different posts as managers are required to be present at office
timings. For operations employees the facility of flexible work schedule is available that

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is in three shifts. One day is off during the week.


Occasional need of putting in some extra work hours is informed and employees are paid
accordingly.If an employee works all 7 days a week the department head is supposed to give
him 2 days off in the next work week in order to compensate.
2.

BREAKS AND MEAL PERIODS:

AVARI supply free meals & tea to employees during working hours.
1 meal and 2 tea breaks in one shift
30 min for lunch/ dinner
15 min for each tea/ breakfast
Employees are given special discount packages on food
3.

LEAVES:

The leave structure of AVARI is as follows:


Casual (Maximum 3)
Sick (Medical certificate for three or more)
Earned (Minimum 7)
All above mentioned leaves are paid. In case an employee doesnt avail any leave for a
year, he/she is awarded a cash amount.
4.

MEDICAL FACILITIES:

AVARI provides free medical facility to all its employees and their children.
5.

LIFE INSURANCE:

AVARI provides life insurance facility to its employees. Minor charges are deducted from
employees pay.
6.

INCREMENTS:

AVARI offers yearly pay rise to its employees regardless of their performance. The rate of
increments is same for all employees.
7.

OTHER BENEFITS:

Free uniform is provided to all employees.


Free laundry services for employees uniforms.
Free transportation for female workers.

BENEFITS AT RETIREMENT / TERMINATION:


I.

PROVIDENT FUND:

Employees provident fund handed over to them at the time of retirement/resignation of


the employee. However, in the case of termination it is conditional .
II.

MEDICAL ALLOWANCE:

Employees not utilizing their medical facilities are awarded Rs.100/month. This amount
keeps on accumulating in the employees medical allowance which is handed over to
him/her at the time of retirement/resignation. Similarly this allowance is also conditional
for the termination cases.

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Others are medical facility, hospitalization insurance, life insurance, laundry facility,
discount on rooms and restaurants etc.

COMPENSATIONS:
Employees are provided with the counseling services during their training at the time of
retirement by the HR manger. These services include:
I.

FAMILY COUNSELING:

Family Counseling is a counseling program for employees wherein they are suggested
how to cope with their personal & family problems. So that the management is assured of
the fact that employees are not under any stress and are able to put in their best effort to
perform their jobs effectively and efficiently.
II.

PRE-RETIREMENT COUNSELING:

In pre-retirement counseling program employees who are willing to work after retirement
are given constructive guidance concerning their second careers.

HEALTH & SAFETY

Health and safety laws


Security Measures
Social security fund
In-house doctor and Dispensary
Hygiene of employees
Fire preventions
Energy conservation

CHALLENGES FOR THE HUMAN RESOURCE DEPARTMENT


In order to manage people effectively in todays world of cut throat competition, it is vital
to understand and appreciate the significant competitive, legal and social issues.
The human resource department of AVARI HOTEL has to cope with
internal as well as external challenges to ensure the achievement of its mission. Some of
the internal and external challenges faced by the human resource department are
presented below:

Relationship between the Workforce and Management


Managing a Dynamic Environment
Conflict Management
Managing Workforce Diversity
Lack of Trained Workforce
Global Competitive Environment
Economic Challenge
Loyalty of Employees

AWARDS & RECOGNITION


AVARI HOTEL Lahore enjoys WORLDS LEADING HOTEL from last five years. Avari Lahore Garden
awarded first prize in Spring Festival 2010. Winner of Annual Chrysanthemum Award.

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Avari Lahore Hotel has been awarded the World Travel Award for the fifth time as Pakistan's
Leading Hotel in 2010

Avari Lahore Garden awarded first prize in Spring Festival 2010

World Travel Award for Pakistan's Leading Hotel

Winner of Annual Chrysanthemum Award

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Also other branches of AVARI HOTEL is awarded for their dining.i-e Fujiyama & Dynasty
cousine

The questionnaire is attached at the end of the project report.

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Attached Questionnaire of our PROJECT


Q No. 1: What are the key values of AVARI Hotels culture?
Ans: Integrity, Loyalty, Personality, Safety & Security etc.
Q No. 2 Describes the hierarchy of Human Recourse department?
Ans: Human Resource Manager Assistant Manager
Admin Officer
Supervisor
Office Assistant.

Admin

Q No. 3 Which selection methods are used in recruitment & selection process?
Ans:
Q No. 4 What is your criterion of selecting the professionals in your hotel, such as
managers?
Ans: For managers minimum experience is 3 years in managerial work, minimum
education is Masters degree in relevant field with additional diplomas.
Q No.5 How many times you hire employees in one year?
Ans: Depends on opening of job vacancy.
Q No. 6 What methods you adopt for screening candidates?
Ans: We conduct interviews for screen-out the candidates.
Q No. 7 What type of employees you are hire trained or untrained?
Ans: We hire both trained and untrained employees,the after giving training to them.
Q No.8 Do you make performance standards for the different positions?
Ans: Yes
Q No.9 Who compare the performance of employees with performance standards?
Ans: The immediate supervisor
Q No.10 Describes your performance appraisal method?
Ans: We use Behaviorally rating scale method.
Q No.11 Do you provide incentives and benefits to the senior officers?
Ans: Yes.
Q No.12 Have you any health and safety plan for employees at
workplace?
Ans: We have Proper Health and Safety Committee, Proper Training
Session Regarding Health and Safety.
Q No: 13 Do you offer any after job benefits to your employees?
Ans: Yes we have ,Medical Facility, Hospitalization Insurance, Life Insurance,
Discount on Rooms and Restaurants etc.
Q No. 14 Through which techniques you handle the stress among employees?
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Ans: We have a counseling system and have proper training session regarding stress
management.
Q No. 15 Do you developing and give training your managers?
Ans: Yes we give training
Q No. 16 What is your responsibilities being HR manager at AVARI HOTEL ?
Ans: My Responsibilities are to recruit candidates ,their selection, training, benefits and
compensations and also to look after employee relation, their needs, their problems
relevant to the job etc.
Q No. 17 What negotiation techniques you use to handle the conflict?
Ans: We have a proper counseling session; also we have an inquiry
committee from different departments.
Q No. 18 What are the legislations regarding pension & insurance claims and other
allowances of the employees in your hotel?
Ans: We obey the EOBI (Employee Old-Age Benefits Institution) Act in providing the
pension,insurance claims and other allowances.
Q no. 19 Who is establishing goals?
Ans:.Senior Management
Q No. 20: Do you allow the employees to participate in developing plans
in your department?
Ans: yes, we are.
Q No. 21 How you handle candidates interviewed individually, in group
or through panel?
Ans: Depends upon the nature of the job. For top level we have Panel
interview also
Q No. 22 What is your employee turnover ratio ?
Ans: It varies all the time.But according to last reports approximately we have 16%
employees turnover ratio.
Q No. 23 What type of communication between managers and
employees?
Ans: Depend upon the situation.
Q No. 24 Are you giving advices in making new policies and strategies?
Ans: Yes
Q No. 25 Do you take SWOT analysis?
Ans: Yes,we conduct SWOT analysis about 2 years before.
Q No. 26 Do you take feedback from customers about your management in the hotel or
observe the staff behavior by yourself that they perform well or not?
Ans: Yes we took the feedback from customers,and maintain comments boxes and E-Room
for comment online about our staff & services.
Q No.27 What type of strategies you use ?
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Ans: We use Functional strategies.


Q No. 28 What is toughest part of HR job and why?
Ans: Nothing is toughest for me.

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