2.3.

2 Motivational Techniques Used to Increase Productivity

 Performance based Annual increment

 Incentive allowance on not availing all C/L during the year
 2 Eid allowances
 Cake to Muslims and Christian employees on Eid and X-mas
 Gratuity 23 days salary basic per year
 Recreational trip once a year Actual transportation expenses
 Group insurance policy
 First aid facilities in case of accident or sickness during duty
 5,10,15 and 20 years service awards and shield
 Night split allowance
 Out station duty allowance
 Incase of death of employees' Parents, wife and children monetary aid
 Employee of the month award
 Employee of the year award
 In case of death of employee monetary aid to his/her family
 Food & Fruit are provided in case of employee admitted in hospital
 01 pair of shoes with socks in a year
 02 employees-Haj expense from FSH
 PF fund policy
01.5 kg cake on birthday of employees

2.3.3 Leadership Styles of Managers at FSH:

The Leadership style of Managers at FSH is a hybrid mix of benevolent authoritative and
participative style. Because of standard of procedures, all the managers need to work in the
predetermined span of control with the participation of their subordinates in order to share the
responsibilities and get the higher level of member involvement in the decision-making
processes. Moreover, once any subordinate tries to loosen the grip on the SOPs, it’s the
manager’s duty to stop him. It is the case with higher level of management even. All the
Department Heads are permitted to work under their standardized procedures and once any
manager try to overlap other’s procedures it’s the duty of General Manager to prohibit them
for being out of their pre-determined span of working procedures.

2.4 Controlling:
2.4.1 Basic Controlling Authorities in FSH:

Being the Multinational Company the controlling authority is being kept

in the hands of the head office in France by the Prince Agha Karim Khan. However, different
regions are headed by the Chief Executive Officers. In Pakistan the CEO is designated in
Headoffice Islamabad supported by the

Director Operations
Director Marketing & Sales
Director Financial Controller

Where as the different chains of Serena Hotels in Pakistan are headed by General Managers.

In FSH, the controlling authority is General Manager. He is the final authority have to overlook
all the management issues that comes under his span of control. He may have the further
approval of any decision from Director Operations residing in FSH that needs his approval.

2.4.2 Control Approaches Used by FSH:

The Control approaches used by the FSH is a blended mix of

Control by regulations
Control by appreciation

The company policy strictly directs the controlling behavior in all the management levels.
Whereas appreciation and recognition also helps in controlling the behavior of the employees.

In case of business strategies the controlling mechanisms involve the feedback strategy by
having feedback form the customers in order to improve the services and customer satisfaction
using reactive marketing technique.
Where as by using the proactive marketing strategy by having feedforward control by looking
into the competitor’s strategy

Controlling Against Frauds and Illegal Actions

The company policy is very strict regarding the controls against frauds and illegal actions but in
FSH no such case not even a single case is being reported here. But if ever misconduct happens
company is very much strict in resolving the case.

Chapter 4
Structure and Design Issues at Faisalabad Serena Hotel

3.1 Groups, Divisions, Departments in Faisalabad Serena Hotel

In any organization there is a certain setup of individuals who are empowered to perform
assigned tasks in order to achieve the organizational goals. This setup may be in the form of
departments or in their form of a certain hierarchy. It is not a matter of concern that in which
form the organization has its setup. This setup is known as managerial or organizational setup
and it plays vital roles in fulfilling the demands as well as the needs of the organization.

Incase of FSH it has six departments and each department has its own style of working and at
the same time it is connected with the rest of the network. These departments are as follows.

 General Manager
 Finance
 HRM
 Food and beverages
 Engineering
  Rooms and general maintenance

General Manager:

He actually is the head of FSH because he makes the top management of FSH. He leads the
team of other individuals and look into the work of other subordinates. Infact he is the monitor
of the organization. He analysis the performance of other employees and guides in achieving
their targets. I other words he is a team member and at the same time he is the boss. He has
the authority to take any abrupt decision at any point of time.

He is the leader of the team and he always encourages the team work and strictly emphasis on
the need for the team making and mutual and collective participation in the course
achievements of organizational goals. In short he is all in all of the organization.

Accounts:

This department is considered as the backbone of the hotel operations. It looks into all the
matters related with the finance and cost control. The department is headed by Financial
Controller; He has the full authority and control over the department and his decisions in this
regard are final with the approval of General Manager. This department is responsible to

support other operational departments to maximize hotel profitability and being accurate in
bookkeeping system. It should ensure effective Management Information System and
implementation of controls & procedures
The underlying areas of functioning for the accounts department are

1. Auditing
2. Cashiering
3. Information Technology
4. F& B controls
5. Purchasing
6. Receiving
7. Accounting
8. Stores

The hierarchy and the reporting relationship in this department is demonstrated in the
organogram attached in the appendix