PC Hotel Lahore

PEARL CONTINENTAL HOTEL LAHORE
ACKNOWLEDGEMENT
Thanks to almighty Allah for enabling me to fulfill all the requirements for the completion of my internship report. It is most appropriate to mention the ingenuity of my respected teacher and Institute who provided me an opportunity to enhance my management skills and to learn a lot form this practical work experience in this well established organization.
It is my privilege to express my deep gratitude and in calculating thanks to the management of Pearl Continental Hotel, Lahore especially to Ms. Aasma Naheed (Training & Development Manager) and to Mr. Umar Arshad Shah (Training & Development Coordinator) who provided me the opportunity to work in the environment where quality is everything.
My special thanks to Col. (R) Shahzad Rafique Malik (Director Human Resource) for his kind and cooperative way of guidance and cooperation and to Maj. (R) Zafar Iqbal (Human Resource Manager) for his friendly nature of teaching. I thank both of them specially Maj (R) Zafar Iqbal to make me feel as a part of the department in real sense which taught me the importance of word Team Work.
I would also like to pay thanks to Mr. Aqeel Ahmed (Assistant Human Resource Manager), Mr. Salamat Bhatti (Human Resource Officer), Mr. Nafees Ahmed (Human Resource Officer) and Mr. Shahid Mahmood (Human Resource Coordinator) for their support and Cooperation.
Institute of Business Administration
PREFACE
Passion and innovations drag me from yesterday and drive to tomorrow the era of change. In fact we are rapidly shifting into the new era of human history on this planet having gone from gatherers and hunters to agriculture producers to industrial manufacturers to the current gatherers and users of information. Theories remain Black & White if supported by the colors of practicality. To quench the thirst of practical exposure, I joined the Pearl Continental Hotel Lahore and gathered all necessary information by which the dream of the esteemed internship report could come true. Efforts have been made to compile this report in such a way that activates its salient features not only for students but also for the layman.
Here I Moattar Iqbal being the student of BBA (Hons.) in Punjab University as its study center INSTITUTE OF BUSINESS ADMINISTRATION (IBA), Roll # 002-M, during Session 2009-2013, completed my Internship at PC Hotel Lahore. At the end of my practical training I have prepared an internship report elaborating the details about the company and its work done thereto.
At the end of this remarkable session I would like to thanks all of them who encouraged me a lot during my study course.
MOATTAR IQBAL
EXECUTIVE SUMMARY
Five star hotels play a very important role whenever foreign people come for festivals, visiting, business tours, etc. Over a period of years, it has now been proved that good environmental hotels can contribute effectively towards the advancement and prosperity of a country as a whole and by improving the hospitality when they come and feel that they are the king. Whenever people feel free they want to take over their stress by going to the place where there will be an element of refreshment. Pearl continental hotels has a solid foundation of 26 years in Pakistan, Six Pearl continental in Lahore, Karachi, Rawalpindi, Bhurban, Peshawar and Muzaffarabad.
The report is divided into eight parts. The first part refers to the introduction of the organization and its mission and vision. The second Part describes the Companys management system, its policies and management styles. The third part deals with the various administrative styles with special focus on the HR department. The fourth part includes brief introduction to the production facilities. The fifth part deals with the marketing mix of PC and its marketing strategies. The sixth part which is the most important part of the report includes complete financial analysis of PC. The seventh part deals with training program and summary of tasks that I have learnt during my internship. The last section deals with the analysis of the organizations including the SWOT analysis and recommendations.
Pearl Continental is a well reputed hotel industry in Pakistan. Its equity position is very strong because of its good hospitality. It has a competitive edge due to its more modern and convenience facilities such as, ATM, courier services, exchange currency, Doctors, shopping centre, Rent a Car, Business Centre and other facilities. That is why it is considered as the most modern hotel of the country.
CONTENTS
INTRODUCTION OF PCHL ................................................................................................................ 11 FACILITIES ................................................................................................................................... 11 RESTAURANTS ............................................................................................................................ 11 HASHOO GROUP ......................................................................................................................... 12 CORPORATE PROFILE / INFORMATION ...................................................................................... 13 BOARD OF DIRECTORS ............................................................................................................ 13 Pakistan Services Limited (PSL) .................................................................................................. 15 HISTORY OF THE PCHL .................................................................................................................... 16 ORIGIN OF PCHL ......................................................................................................................... 16 PRIVITIZATION ............................................................................................................................ 16 INTER CONTINENTAL HOTEL ...................................................................................................... 16 PRESENT STATUS OF THE ORGANIZATION IN BUSINESS WORLD................................................... 17 INTERNATIONAL BUSINESS ACTIVITIES ...................................................................................... 17 MODERN GADGETS .................................................................................................................... 17 BUSINESS VOLUME: .................................................................................................................... 18 NATURE OF THE ORGANIZATION: .............................................................................................. 18 SERVICES ..................................................................................................................................... 18 COMPARISON WITH INDUSTRY OF SAME SECTOR......................................................................... 19 COMPETITORS ............................................................................................................................ 19 PC'S COMPETITIVE ANALYSIS ..................................................................................................... 19 Critical Success Factor: ........................................................................................................... 20 Safety and Security: ................................................................................................................ 22 Rates: ...................................................................................................................................... 22 Critical Success Segments ....................................................................................................... 22 VISION............................................................................................................................................. 25 MISSION.......................................................................................................................................... 25 OBJECTIVES ................................................................................................................................. 26 CODE OF CONDUCT .................................................................................................................... 26 CORE VALUES.............................................................................................................................. 26 LOGO .......................................................................................................................................... 27 COMPANY MANAGEMENT SYSTEM ............................................................................................... 29 MANAGEMENT AT ...................................................................................................................... 29

PEARL CONTINENTAL HOTEL, LAHORE ....................................................................................... 29 ORGANIZATIONAL CHART OF THE GOVERNING BODY............................................................... 30 POLICY FORMULATION MEETINGS ................................................................................................. 31 SENIOR MANAGEMENT MEETINGS ............................................................................................ 31 DEPARTMENT WISE SCHEDULED MEETINGS.............................................................................. 31 RULES AND REGULATION POLICIES ............................................................................................ 32 BOARD OF DIRECTORS................................................................................................................ 32 BOARD OF DIRECTORS MEETINGS............................................................................................. 33 SAMPLE OF NOTICE OF ANNUAL GENERAL MEETING................................................................ 33 ROLE AND RESPONSIBILITIES OF THE CHAIRMAN AND CHIEF EXECUTIVE................................. 33 AUDIT COMMITTEE .................................................................................................................... 34 LEADERSHIP STYLE ...................................................................................................................... 34 PLANNING....................................................................................................................................... 35 DECISION-MAKING ..................................................................................................................... 35 CONCEPT OF PLANNING IN PC ................................................................................................... 35 STRATEGIES OF PEARL CONTINENTAL HOTEL ............................................................................ 36 MANAGEMENT STRUCTURE AT PEARL CONTINENTAL .................................................................. 37 MARKETING DEPARTMENT: ....................................................................................................... 37 FINANCE/ ACCOUNTS DEPARTMENT: ........................................................................................ 37 ENGINEERING DEPARTMENT: .................................................................................................... 38 HOUSEKEEPING: ......................................................................................................................... 39 HUMAN RESOURCE DEPARTMENT:............................................................................................ 39 FRONT OFFICE ............................................................................................................................ 40 BUSINESS CENTRE....................................................................................................................... 42 FOOD AND BEVERAGE DEPARTMENT (F&B): ............................................................................. 43 EMPLOYEES/PERSONNEL IN VARIOUS SECTIONS........................................................................... 45 CAREER LADDER ......................................................................................................................... 47 JOB ASSESSMENT AT PCHL ......................................................................................................... 48 PERFORMANCE APPRAISAL/ EVALUATION: ............................................................................... 48 FACILITIES AND BENEFITS PROVIDED BY PC ............................................................................... 49 ACCOUNTABILITY INCENTIVES ................................................................................................... 50 COMMENTS ON JOB SATISFACTION OF EMPLOYEES ................................................................. 51 MANAGERIAL STYLE ................................................................................................................... 52 Democratic Leadership ........................................................................................................... 53 Institute of Business Administration 5

ADMINISTRATIVE/ MANAGEMENT STYLES .................................................................................... 55 CULTURE AT PC ........................................................................................................................... 55 CULTURE AND MANAGEMENT STYLE ......................................................................................... 55 DEMOCRATIC STYLE................................................................................................................ 56 HOW PC MANAGES TO BE EFFECTIVE WITH DEMOCRATIC CULTURE: ...................................... 57 IMPACT OF MANAGEMENT STYLE ON EMPLOYEES ................................................................... 58 MOTIVATION .......................................................................................................................... 58 MORALE AND PRODUCTIVITY................................................................................................. 58 MORE INDIVIDUAL RESPONSIBILITY ....................................................................................... 58 SUPPORTIVE ENVIRONMENT.................................................................................................. 58 JOB EFFICIENCY AND SATISFACTION ...................................................................................... 58 ROLE OF HR DEPARTMENT IN PEARL CONTINENTAL HOTEL LAHORE .............. 59 HUMAN RESOURCE DEPARTMENT................................................................................................. 60 INTRODUCTION: ......................................................................................................................... 60 Vision ..................................................................................................................................... 60 Mission ................................................................................................................................... 60 HIERARCHY OF HR DEPARTMENT: .............................................................................................. 61 Overview of the Human Resource Department:..................................................................... 61 Role of HR Department at PC: ................................................................................................ 62 Objectives of HR: .................................................................................................................... 62 Duties of HR in PC: .................................................................................................................. 63 PEARL-CONTINENTAL HOTELS HR ROLE IN EXECUTING STRATEGY .......................................... 64 HR Role as a Strategic Partner: ............................................................................................... 64 Recruitment & Selection of employees .................................................................................. 64 Recruitment Practices at Pearl Continental Hotel.................................................................. 65 SOURCES OF RECRUITMENT AT PC: ........................................................................................... 65 Job Analysis: ........................................................................................................................... 66 Job Description: ...................................................................................................................... 66 Job Specification: .................................................................................................................... 67 Job Evaluation:........................................................................................................................ 67 METHODS USED FOR JOB EVALUATION: .................................................................................... 67 SELECTION .................................................................................................................................. 68 INTERVIEW: ................................................................................................................................ 68 TRAINING & DEVELOPMENT .......................................................................................................... 70 Institute of Business Administration 6

TRAINING APPRAISALS: .............................................................................................................. 70 ANALYSIS OF PC HR DEPARTMENT .............................................................................. 72 STRENGTHS OF THE HR DEPARTMENT: ...................................................................................... 73 WEAKNESSES OF THE HR DEPARTMENT: ................................................................................... 75 RECOMMENDATIONS: ................................................................................................................ 77 PRODUCTION FACILITIES ................................................................................................................ 80 PRODUCTION FACILITIES OF HASHOO GROUP ........................................................................... 81 MARKETING AND PUBLIC RELATIONS DEPARTMENT IN PC ...................................... 84 APPROACH TO DIFFERENT ORGANIZATIONS ............................................................................. 84 Objectives: .............................................................................................................................. 84 Action Plan.............................................................................................................................. 85 PRODUCT/SERVICE ......................................................................................................................... 86 SERVICES OF PEARL CONTINENTAL: ........................................................................................... 86 DINING: ....................................................................................................................................... 88 Taipan ..................................................................................................................................... 88 Front Page Caf ...................................................................................................................... 88 Bukhara................................................................................................................................... 89 Marcopolo .............................................................................................................................. 89 SPA & FITNESS ............................................................................................................................ 89 Health Club ............................................................................................................................. 89 MEETINGS AND BANQUETS........................................................................................................ 90 Banquets ................................................................................................................................. 90 SERVICES: ........................................................................................................................................ 90 SERVICE CLASSIFICATIONS .......................................................................................................... 91 LABOUR AND EQUIPMENT NEEDS.............................................................................................. 92 PRICES OF PEARL CONTINENTAL: ................................................................................................... 93 MARKETING STRATEGIES................................................................................................................ 94 STRATEGIC PLANNING: ............................................................................................................... 94 THE MARKETING PROCESS: ........................................................................................................ 95 Analyzing the Marketing Opportunities: ................................................................................ 96 Selecting Target Markets: ....................................................................................................... 96 Developing the Marketing Mix ............................................................................................... 96 Managing the Marketing Effort .............................................................................................. 96 MARKET SEGMENTATION: ......................................................................................................... 97 Institute of Business Administration 7

SEGMENTATION IN CONSUMER MARKETS ................................................................................ 97 Geographic Segmentation ...................................................................................................... 98 Demographic Segmentation ................................................................................................... 98 Psychographic Segmentation ................................................................................................. 98 Behavioral Segmentation ....................................................................................................... 99 Selecting Market Segments .................................................................................................... 99 Undifferentiated Marketing ................................................................................................... 99 Differentiated Marketing........................................................................................................ 99 Concentrated Marketing: ..................................................................................................... 100 MARKET POSITIONING: ............................................................................................................ 100 Positioning Strategies ........................................................................................................... 101 Product/Service Attributes ................................................................................................... 101 INTRODUCTION: ........................................................................................................................... 103 Performance at a Glance .............................................................................................................. 104 Financial Analysis .......................................................................................................................... 106 HORIZONTAL ANALYSIS ............................................................................................................ 106 VERTICAL COMMON SIZE ANALYSIS ......................................................................................... 106 PROFIT AND LOSS ACCOUNT ........................................................................................................ 110 Vertical Analysis of Balance Sheet................................................................................................ 114 PROFIT AND LOSS ACCOUNT .................................................................................................... 115 VERTICAL ANALYSIS ...................................................................................................................... 116 FINANCIAL ANALYSIS RATIOS ....................................................................................................... 117 LIQUIDITY RATIOS ......................................................................................................................... 117 CURRENT RATIO ....................................................................................................................... 118 QUICK ACID TEST RATIO ........................................................................................................... 119 WORKING CAPITAL: .................................................................................................................. 120 ACTIVITY RATIOS........................................................................................................................... 121 INVENTORY TURNOVER ............................................................................................................ 121 AGE OF INVENTORY .................................................................................................................. 122 FIXED ASSET TURNOVER ........................................................................................................... 122 TOTAL ASSET TURNOVER.......................................................................................................... 123 LONG TERM DEBT PAYING ABILITY .............................................................................................. 124 DEBT RATIOS............................................................................................................................. 124 DEBT EQUITY RATIO ................................................................................................................. 125 Institute of Business Administration 8

TIME INTEREST EARNED (LONG TERM PERSPECTIVE) .............................................................. 126 PROFITABILITY RATIOS ................................................................................................................. 127 GROSS PROFIT MARGIN............................................................................................................ 127 OPERATING PROFIT MARIN ...................................................................................................... 128 NET PROFIT MARGIN (RETURN ON SALES) ............................................................................... 129 RETURN ON INVESTMENT (ASSETS) ......................................................................................... 130 RETURN ON EQUITY ................................................................................................................. 131 SUMMARY OF FINANCIAL ANALYSIS OF PC .................................................................................. 132 SUMMARY OF FINANCIAL RATIOS ................................................................................................ 133 TRAINING AND DEVELOPMENT DEPARTMENT ............................................................................ 135 TASKS ........................................................................................................................................ 135 HUMAN RESOURCE DEPARTMENT............................................................................................... 139 SUB DEPARTMENTS OF HUMAN RESOURCE ............................................................................ 139 FUNCTIONS OF HUMAN RESOURCE DEPARTMENT: ................................................................ 140 HUMAN RESOURCE PLANNING AND FORECASTING: ............................................................... 141 EMPLOYEES RECRUITMENT AND SELECTION: .......................................................................... 141 TRAINING & DEVELOPMENT ........................................................................................................ 142 TRAINING NEEDS ASSIGNMENT: .............................................................................................. 142 EMPLOYEE DEVELOPMENT:...................................................................................................... 142 PERFORMANCE MANAGEMENT: .............................................................................................. 142 EMPLOYEES COMPENSATION AND BENEFITS: ......................................................................... 143 COUNSELING: ........................................................................................................................... 145 ORGANIZATIONAL CAREER MANAGEMENT: ............................................................................ 146 ANALYSIS OF ................................................................................................................................. 151 PEARL CONTINENTAL HOTEL ........................................................................................................ 151 PEST ANALYSIS .............................................................................................................................. 152 SWOT ANALYSIS:........................................................................................................................... 153 COMPETITOR ANALYSIS................................................................................................................ 158 Corporate Social Responsibility (CSR) .......................................................................................... 164 CORPORATE PHILANTHROPY: ................................................................................................... 164 FUTURE PROSPECTS: ................................................................................................................ 164 RECOMMENDATIONS: .............................................................................................................. 165 CONCLUSION ............................................................................................................................ 166
PART 1
INTRODUCTION OF PEARL CONTINENTAL HOTEL LAHORE
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PEARL CONTINENTAL HOTEL LAHORE INTRODUCTION OF PCHL
Pearl Continental Hotel is one of the world famous five star hotels all over the world. It provides very ostentatious services to all its clients. Only ten minutes drive from the airport and in close proximity to the down town shopping centers, the PC Hotel is the citys only deluxe hotel, which caters to local and foreign travels in style. The hotels 200 guest rooms, with the exclusive suites, deluxe suites and the presidential suite, have been tastefully decorated and provide the guests with all the facilities and comforts, such as 30 satellite channels, 24 hrs in-house movies, international direct dialing, mini bar & exclusive electronic safes to name a few. All these go a long way in marketing the guests stay in the hotel most pleasant.
FACILITIES
In order to meet all the needs of the guests, the added facilities are also provided like for example, a mosque, airport pickup services on request, laundry, concierge, flower shop, travel agency, car rented service, valet parking, house doctor, authorized money changer, beauty salon for ladies & barber shop for men. The guests can also avail the hotels recreational facilities such as the swimming pool, tennis court & the exercise room.
RESTAURANTS
The hotel boasts of a number of excellent restaurants while the Banquet Halls, all of which can be partitioned into three sections each, are equipped with the latest audio visual facilities, which include video projection system, overhead projectors, slide projectors, & audio recording equipment, which aid in making the meeting/seminars a complete success. A list of all restaurants of PCHL is as follows: Bukhara SAKURA Marcopolo Dumpukht Taipan
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COVO Nadia Coffee Shop Caf Latte In- Room Dinning
HASHOO GROUP
Mr. Sadruddin Hashwani hails from an illustrious family of Karachi. In 1960, he entered the business of cotton trading and through his hard work and genius he, within a decade, emerged as a prominent businessman on Pakistans industrial scene. Within a short span of 10 years, Mr. Hashwani was at the pinnacle of cotton business and was rightly known as the "Cotton King" being top exporter of cotton, besides rice and other commodities. In 1985, Mr. Hashwani purchased the controlling shares of Pakistan Services Limited, which owned Inter Continental Hotels in Pakistan. These hotels were in bad shape and losing money. He changed their name, to Pearl Continental Hotels. By dint of persistent hard work against all odds combined with extraordinary sense of correct direction of the future, he transformed the Pearl Continentals into Pakistans largest and most elegant five-star hotel chain having presence in Karachi, Lahore, Rawalpindi and Peshawar. Mr. Hashwani took another bold initiative by the construction of a new Pearl Continental hotel at Bhurban in the picturesque Murree Hills. The Pearl Continental Hotel, Lahore was expanded with the addition of a new wing called Atrium Wing and refurbished with most modern amenities. The Pearl Continental, Karachi is recognized as One of the Leading Hotels of the World
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CORPORATE PROFILE / INFORMATION
Pearl Continental Hotels, a chain owned and operated by Pakistan Services Limited, sets the international standards for quality hotel accommodation in South Asia. The Company
manages 5 luxury hotels at Karachi, Lahore, Rawalpindi, Peshawar and Bhurban; comprising 1301 rooms with registered office in Karachi, Pakistan.
BOARD OF DIRECTORS
Mr. Sadruddin Hashwani Chairman Mr. Murtaza Hashwani Chief Executive Officer Ms. Sarah Hashwani Mr. M. A. Bawany Mr. Mansoor Akbar Ali Syed Sajid Ali Mr. Muhammad Rafique Mr. Rolf Richa rd Bauer Mr. Bashir Ahmed
AUDIT COMMITTEE
Mr. Sadruddin Hashwani Ms. Sarah Hashwani Mr. Mansoor Akbar Ali Syed Sajid Ali
COMPENSATION COMMITTEE
Mr. Sadruddin Hashwani Mr. Murtaza Hashwani Mr. M. A. Bawany
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HUMAN RESOURCE & RECRUITMENT COMMITTEE
Mr. Sadruddin Hashwani Mr. Murtaza Hashwani Mr. M. A. Bawany Mr. Bashir Ahmed
CHIEF FINANCIAL OFFICER

Mr. Muhammad Rafique
COMPANY SECRETARY
Mr. Mansoor Khan
AUDITORS
M/s KPMG Taseer Hadi & Co. Chartered Accountants 6th Floo r, State Life Building No. 5 Jinnah Avenue, Blue A rea Islamabad.
LEGAL ADVISOR
M/s Liaquat Merchant & Associates
BANKERS
National Bank of Pakistan The Bank of Punjab Habib Bank Limited Soneri Bank Limited United Bank Limited
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Askari Bank Limited Albaraka Islamic Bank (Pakistan) Limited Allied Bank Limited
Bank Alfalah Limited JS Bank Limited KASB Bank Limited NIB Bank Limited Silk Bank Limited Standard Chartered Bank (Pakistan) Limited
Pakistan Services Limited (PSL)

Pakistan Services Limited was incorporated in 1958 as a Public Limited Company and is quoted on the Stock Exchange. It owns and operates the Pearl Continental Hotels (formerly Inter Continental Hotels) and is recognized as the largest and oldest hotel company in Pakistan. Pearl Continental Hotels is the first Pakistani chain which has achieved excellent international standards of quality products and services. Investment in people and human resource development is an ongoing process in the Hashoo Group. New management concepts and intensive training programs have been introduced at all levels of supervisory and managerial positions through establishment of an in-house Training School located at Pearl Continental Hotel, Bhurban. The Training School looks forward to imparting systematic and scientific knowledge of the operations of both tourism and hospitality business. Pearl Continental Hotels have become synonymous with a tradition of personal services, efficiency, convenience and guest satisfaction. PC hotel Rawalpindi PC Hotel Bhurban PC Hotel Karachi PC Hotel Lahore PC Hotel Peshawar PC Hotel Muzaffarabad
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PEARL CONTINENTAL HOTEL LAHORE HISTORY OF THE PCHL

ORIGIN OF PCHL
The origin of the Pearl Continental Hotel takes us back to 1958, when Pakistan airlines in collaboration with international hotel corporation of USA established Pakistan services limited. Pakistan services were a public limited company and were quoted in stock exchange with an object to set and operate a chain of five star hotels in the major commercial canters of the country.
EXPANSION OF HOTELS
It took start from Karachi in 1964; later in 1967 it expanded the range of hotels to Lahore and Rawalpindi and then in 1974 made a place in Peshawar as well. In 1991-92 another grand hotel was built and started operations in the hills of Bhurban.
FIRST LUXURY HOTEL

In short, the chain of PC hotels backs to years 1964, when the first luxury hotel in the name of Inter Continental hotel in Karachi, Lahore, Rawalpindi, Peshawar and Bhurban became the Pearl Continentals Hotels.
PRIVITIZATION
In early 1985, Pakistan services limited (PSL) was privatized and sold to Hashwani Group that was lead by Mr. Sudderddin Hashwani Pakistan Services Limited (PSL) runs the hotels, majority shares of the company are owned by Mr. Saddurddin Hashwani, who has the honor to be the chairman of Pakistan Services Limited.
INTER CONTINENTAL HOTEL

Pakistan Services Limited (PSL) was incorporated in 1958 as a Public Limited company and is quoted on Karachi Stock Exchange since 1964. The primary business of PSL is hospitality. It initially operated under the management of Inter Continental Hotel; however, when Hashoo Group acquired PSL in 1985 it changed the name of the Hotels to PEARL CONTINENTAL Hotels and became the largest and oldest five star hotel chain of Pakistan. In October 1985 all the Inter Continental hotels in Karachi, Rawalpindi, Peshawar & Lahore became the PEARL CONTINENTAL Hotels. Another pearl was added to the chain in1992 at
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Bhurban. PEARL CONTINENTAL Hotels is the first Pakistani chain which has achieved excellent international standards of services, quality and product.
PRESENT STATUS OF THE ORGANIZATION IN BUSINESS WORLD

In the city of graceful mosques, imposing fortresses, and historic bazaars, Pearl Continental Hotel, Lahore is located at the most prestigious financial, business and commercial avenue, Shahrah-e-Quaid-e-Azam.
INTERNATIONAL BUSINESS ACTIVITIES

The introduction of the grandiose project, "The Atrium Wing", is the addition of large banquet facilities measuring up to 7600 sq ft. along with 287 Deluxe Rooms, including 28 Business Suites and 2 Presidential Suites, to the existing 200 rooms property. Expertise and luxuries have been gathered from all over the world to make it a venue of international business activities.
MODERN GADGETS
Each room opens with an encoded key card and has the added luxury of a dedicated butler, to attend to the guest's needs. The rooms are also fully equipped with all modern gadgets such as Data Port, Electronic in-room Safe and a personal mini bar.
SPECIALTY RESTAURANT
Bukhara is the hotel's specialty restaurant, renowned for its fine Bar BQ delicacies and ethnic atmosphere. Marco polo is highly recommended for superb Pakistani and Continental dishes, whereas Nadia Tea Lounge serves Tea menu and Coffee. The Club is an exclusive dining facility for resident guests in the Business Center, While Tai Pan is the place to sample regional Chinese dishes.
CONFERENCES
The Atrium Wing's Convention Centre can hold Conferences & Banquets for up to 2000 guests, while the hotel's fully fledged Business Center features two fully equipped board rooms and three private offices. The guests can spend time at the hotel's fitness center or shop at "Pavilion", the hotel's impressive shopping arcade.
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BUSINESS VOLUME:
Total revenue (Yearly) = 3 Million approx. Operating expenses are 70-80% of the hotel revenue. Non-operating expenses and depreciation are almost 10 % of the total revenue. So the left out profit is 10-15 % of the total revenue.
NATURE OF THE ORGANIZATION:

The services offered by this hotel are come under hybrid category of offer. The offer consists of equal parts of goods and services. People patronize hotels for their food and their services, rooms and their services.
SERVICES
The services offered by the PC Hotel are: Both equipment-based as well as people based. Requires the clients presence. Meet both a personal need as well as business need. Having the objective (i.e. profit-oriented) and ownership (public limited).
Product Lines:
Product Line of PC Hotel Lahore is as follow: Rooms Restaurants Swimming Pool Health Club Bakers Boutique Banquet Halls The Business Centre
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COMPARISON WITH INDUSTRY OF SAME SECTOR

COMPETITORS
Knowing your Competition is as an important issue as Knowing your Customer. In order to obtain relevant information about the competition, a competitor survey should be undertaken to gather data about direct and indirect competitors. One objective of such a survey is to find out why we are more or less successful then the direct competitors and allows us to recognize market saturation e.g. too many similar products offered for limited market. It also can provide opportunities to detect market niches toward which we can steer our operations. Lahore is famous for its traditional hospitality offers an endless variety of places to see and delicacies to taste. Pearl Continental Hotel Lahore is the perfect base from which to explore to your hearts content. There are so many Hotels in Lahore those are popular for their Food. The Competitors of PCHL are: Islamabad Serena Holiday Inn Park Plaza Marriott Hotel AVARI
PC'S COMPETITIVE ANALYSIS

The basis of industrial competitive analysis model is that an enterprise exists within an industry and to succeed, it must effectively deal with the competitive forces that exist within the particular industry. Based on the forces involved in Porter's model we are going to judge the PC hotel in Lahore.
Threats of New Entrants:

New hotels that are five stars and go for the same customer categories as the Pearl Continental. Access to raw material or resources, otherwise readily available being rerouted to Other hotels.
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Threat of Products or Services:

New restaurants popping up all over Lahore have put a strain on the cafes and restaurants within the hotel. Rival hotels within the vicinity have offered the same C.S as PC. The ability to differentiate between products and services being offered by PC and other hotels has become smudged.
Buyer's Power (Customer):

People anywhere in the world love the ability to bargain and as such put the provider in a tough position. The bargaining power of a customer coming to PC is intensified because other hotels are right across the street, at moments like this when the customer threatens to walk-out, the person at the counter has the authority to offer certain deals in order to keep that customer. The above statements verify the fact that the customer is price sensitive and has many alternative sources of supply.
Supplier's Power:
The number of supplier's with the right products has decreased over the years and such has allowed the party concerned to increase prices without fear of denial from the hotels. The government has also increased the tax quota on the business to 12.5 %, thereby, allowing the suppliers a valid excuse for "price jack." Since other suppliers/ resources are not readily available, the hotels have an increased overhead cost.
Critical Success Factor:

Critical success factors are the factors that contribute to make strong position of the business, that make it successful and matters the most in its continued success. In other words these are the few key areas where the things must go right for the business to
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flourish and achieve its objectives. It is important to set objectives before embarking upon critical success factor analysis. The main objective of Pearl Continental Hotels is to obtain maximum profit and maximum occupation by the customers in the Hotel. Customer satisfaction is the main source of achieving the objectives and to allure the customer to become the member with the Pearl Continental Hotel and give them repeating visits. The three most important considerations for a business and leisure traveler or a regular customer to a hotel are the: Location of the hotel Safety and security Rates/price.
Pearl Continental hotels satisfy these three conditions to the utmost and hence these three factors become one of the most critical success factors of this industry.
Location
The location of all the Pearl Continental Hotels contribute to its successful operations as they are not far away from the airports and lies in the heart of their respected cities.
Travelers
Pearl Continental Hotel, which is the member of the `Leading Hotels of the World', is the premier choice of business and leisure travelers. It is ideally located only fifteen kilometers away from the airport, situated in the heart of commercial centre and provides excellent business and conference facilities and easy access to shopping centers of the city.
Commercial Avenue
In the city of graceful mosques, imposing fortresses and historical bazaars, Pearl Continental Hotel, Lahore is located at the most prestigious financial, business and commercial avenue, Shahra-e-Quaid-e-Azam (The Mall), opposite Governor House, 7 km from the Lahore International Airport, 6 km from the Main Railway Station and 1.5 km from the main City Business Center.
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Safety and Security:

Safety and Security is the biggest concerns of the people travelling from one place to another due to the increasing Hotel crimes. All Pearl Continental hotels use electronic locks, each room opens with an encoded key card, which increases the level of security. Each room features data Port, Electronic in-room Safe, Safety Alarm, Radio and Television with Satellite
Channels, Direct Dial Telephone and the Security-conscious can rest assured that all our rooms are equipped with smoke detectors and sprinklers. The use of this system being rare in other hotels of Pakistan makes it a critical success factor of Pearl Continental hotels as the customers requiring high level of security will prefer to stay here which will contribute to achieving the objective.
Rates:
Two factors are involved in increasing the profitability; by increasing the rate and by increasing the volume but increasing the volume does not guarantee profits. Pearl Continental increased 20% of the revenue by increasing the rates along with special discounts. Rates are however negotiable in certain cases which ensured that the segments that provide profits do not lose their interest by increasing the rates.
Critical Success Segments

The segments, which are critical to the success of Pearl Continental Hotels, are:
Airline Crew:
Reservations of the local and international airline crews are very important as the products to them are sold in bulks every time they arrive. They are given the wholesale rates so that they do not select another hotel. The information of the incoming flights is kept so that respective airlines are informed about the rates in order to book the rooms for their crew.
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Tourist Group:
The rates for the tourist groups that come to the hotel directly or through some travel agency are given are comparatively less and negotiable depending on the law and order
conditions of the country. The arrangements of transport and tourist guides are made on request specially when there are some events or activities going on in the city.
Corporate Activities:
These activities include embassy-related activities, business activities, bureaucratic activities, foreign or religious delegations, conferences and seminars. Some business organizations become the members with the hotel and given concession for organizing seminars, workshops and conferences. International conferences and seminars which brings a large number of guest along, booked in advance are given at fixed rates as large number of rooms
are sold along with the seminar halls for a longer time period. Special services are provided to these guests and are taken care of as they are the source of profit.
Shaadi Packages:
The rates for the wedding and traditional events packages are fixed however attractive offers are given along with it e.g. free room for the couple with wedding cake and bouquet of flowers.
IMPROVED SERVICES: The Pearl Continental Hotels' rooms, executive suites, super deluxe suites, Executive Rooms, are designed to provide the utmost comfort and luxury where guests are pampered in every possible way. All rooms are equipped with satellite television, inhouse movies, music and 30 channel satellite television network and modern amenities. In fact, every facet and facility required by the discerning traveller is catered to. Room Service operates round the clock caring for all the travellers needs. Personal facsimile machines are available in all suites and executive rooms ensuring complete privacy and
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confidentiality. Business Centre& Secretarial Services are also available throughout the day and up to mid night.
OLD AND NEW CLIENTELE: Pearl Continental Hotels being the oldest in the hospitality industry in Pakistan enjoys a large old clientele that are its strength and an important factor in its continued success. Pearl Continental Hotels put all the possible efforts to retain the old clients' interest by providing discounts, concessions and special offers in seasons.
Pearl Continental Hotels, beside in -house reservations network, are also linked with Utell International to have international exposure and overseas reservation network. Investment in people and human resource development is an ongoing process in the Hashoo Group. New management concepts and intensive training programs have been introduced at all levels of supervisory and managerial positions through establishment of an in-house Training School located at Pearl Continental Hotel, Bhurban. The Training School looks forward to imparting systematic and scientific knowledge of the operations of both tourism and hospitality business. Pearl Continental Hotels have become synonymous with a tradition of personal services, efficiency, convenience and guest satisfaction. HOTEL REGISTRATION / CHECK IN Hotel Registration Cards are handed over directly to the guests upon arrival, which has to be filled in complete and presented at the reception desk or at the desk set up for thisspecial purpose to obtain room keys. Hotel expects to receive detailed group naming listone month prior to the arrival date
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VISION
We are committed to dynamic growth and service excellence built upon our heritage of traditional
hospitability. We strive to consistently meet and surpass guests, employees and other stakeholders expectations. We feel pride in making efforts to position Pakistan in the forefront of the international arena.
MISSION
Our mission is to be the hotel recognized as the leader in the industry in any aspect. We are committed to train and develop all our staff members allowing them to grow in their careers and provide services and standards which exceed guest expectations.
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OBJECTIVES
Sustain potential market share through managed average daily rate Ensure successful completion of all expansion projects Seek improvement in employees competencies and enhancing performance goals Continue achieving sales growth to support long term plan Reinforce all areas of security risks to Companys assets and guests
CODE OF CONDUCT
The smooth and successful flow of processes and operations cannot be achieved without the active participation and concerned efforts of all the employees of the Company. Discipline and professional working environment largely depends on behavior and attitude of the employees. Hence the Company has established its own standards of: Confidentiality Attendance and punctuality Working relationships Discussion topics Behavior and Attitude-in-General Misconduct
CORE VALUES
Innovation:
Listening and two way interaction Participation Encouragement Motivation Enterprise Initiative
Growth and development for all:

Competence and contribution as the only basis for job security. Promotion from within Learning environment and opportunities
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Provision for world class education and training Aligning people with latest trends.
Trust:
Cooperation Support Teamwork Sense of ownership Empowerment Integrity Dignity Respect Candidness
LOGO
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PART 2 MANAGEMENT SYSTEM OF PEARL CONTINENTAL HOTEL LAHORE
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COMPANY MANAGEMENT SYSTEM

MANAGEMENT AT PEARL CONTINENTAL HOTEL, LAHORE
Sadruddin Hashwani CHAIRMAN
Murtaza Hashwani CEO
Irshad B. Anjum REGIONAL VICE PRESIDENT OPERATIONS (N) / GM
Col Shahzad Rafique Malik DIRECTOR HUMAN RESOURCE
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ORGANIZATIONAL CHART OF THE GOVERNING BODY
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POLICY FORMULATION MEETINGS

Regular meetings are organized at each level of the organization to keep the company moving in a systematic manner. The main objective behind these meetings is to bring forth the employees at a forum, where they can discuss their problems, give suggestions for improvement and development. Also they can share their experiences with each other. Some meetings are held at periodic basis which are necessary to keep a check on the progress of the company. These are: Senior Management Meetings Department Wise Scheduled Meetings
SENIOR MANAGEMENT MEETINGS

Every month, the Senior Managers hold a meeting to discuss major policy issues facing the management. The Human Resources Manager plays the role of a guardian for establishment and development of the policies. At the Senior Management meetings, the suggested policies are presented before the General Manager and Senior Management. The Senior Management discusses the feasibility of these policies. The recommended policy is the one that has the approval of all members. Only after, the whole of this exercise has been done; it is presented before the Chief Executive. He takes the ultimate decision which is always in the best interest of the company and its employees.
DEPARTMENT WISE SCHEDULED MEETINGS

In addition to the high level meetings and sales preview; every department holds several scheduled and non-scheduled meetings. Scheduled meetings are organized to keep all members of the department up to date about the complete workings of the department. Members discuss their problems; give suggestions for improvements, generate ideas for development of their department and share experiences with each other as well the respective bosses. This helps develop communication through all levels of the hierarchy. And management remains aware of the work being done by the sub-ordinates. Nonscheduled meetings can be called anytime to discuss urgent issues. These do not have any prescribed date/day/time as compared to the scheduled meetings.
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RULES AND REGULATION POLICIES

Pays:
Pay day is last day of every month. Overtime is double the hourly rate of pay
Work Schedule:
9 work hours in one shift One day off during the week
Tea Breaks and Meal Periods:

1 meal and 2 tea breaks in one shift 30 min for lunch/dinner. 15 min for each tea/breakfast Meals in staff cafeteria only.
Leave:
Casual(Maximum 3) Sick(Medical certificate for 3 or more) Earned(Minimum 7)
BOARD OF DIRECTORS
The Board of Directors currently comprises executive Chairman, Chief Executive/Managing Director, three directors, company secretary and Chief financial officer. The Directors meet after three months to review the progress and performance of the company. The Board has delegated the day-to-day operations of the company to the Managing Director. However, the Directors are equally accountable under the law for the proper handling of the Companys affairs.
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BOARD OF DIRECTORS MEETINGS
During the year 2012, the Board of Directors had the following meetings:
Date of Meeting
January 09, 2012 10.00 a.m.
Time
Place
PSL Head Office, Rawalpindi
April 10, 2012 July 17, 2012
10.00 a.m. 10.00 a.m.
PSL Head Office, Rawalpindi Royal Palm, Lahore
October 22, 2012
09.00 a.m.
PSL Head Office, Rawalpindi
SAMPLE OF NOTICE OF ANNUAL GENERAL MEETING

Notice is hereby given that the 52nd Annual General Meeting of Pakistan Services Limited will be held on Saturday, 29 October 2012 at 11:00 a.m. at Marriott Hotel, Islamabad to transact the following business: 1. To confirm the Minutes of the Extra Ordinary General Meeting held on 28 March 2012. 2. To receive, consider and adopt the Audited Financial Statements together with the Directors and the Auditors Reports thereon for the year ended 30 June 2012. 3. To appoint auditors for the year 2012-13 and fix their remuneration. 4. To discuss any other business with the permission of the Chair.
ROLE AND RESPONSIBILITIES OF THE CHAIRMAN AND CHIEF EXECUTIVE

The role of the Chairman and the Chief Executive are segregated and they have distinct responsibilities. The Chairman of the Board has responsibilities and powers vested in him by law and the Articles of Association of the Company, as well as duties assigned to him by the Board.
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In particular, the Chairman coordinates the activities of the Board and presides over the meetings of the Board of Directors and shareholders. The Managing Director is the Chief Executive Officer of the Company and is responsible for the day-to-day operations and conduct of its business in accordance with the powers vested in him by law, the Articles of Association of the Company and authority delegated to him through Board of Directors resolutions from time to time. The Managing Director Recommends policy and strategic direction and annual business plans for Board of Directors approval and is responsible for exercising the overall control, discretion, administration and supervision for sound and efficient management and conduct of the business of the Company.
AUDIT COMMITTEE
The Audit Committee comprises three members including the chairman of the committee. All members are non-executive directors. The terms of reference of the committee, which is in line with the Code of Corporate Governance, has been presented and approved by the Board of Directors.
LEADERSHIP STYLE
The general manager of the company is at the top most position in the organizational hierarchy; Even though he is not directly involved in its operations he is responsible for taking major administrative decisions regarding the company policy and Operations. Departmental managers are responsible for leading and directing their subordinates. These leaders focus on these areas: Increasing their employees efficiency Empowerment Resolving Conflict Providing facilities Motivating minimum-wage employees Directing them to right way Motivation
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They encourage the employees to give new ideas so as to increase the customer satisfaction. As there is a very high degree of delegation and participation so they believe that the leadership style used in all the departments of PC is democratic. Subordinates are given a fair treatment and are dealt in a very good manner so as to give them a feeling that you are not only an employee but also a member of the family. The managers at PC are very supportive as they treat subordinates as equals, and have a highly open communication system.
PLANNING
As we all know that for the success of any organization or anything planning play very important and vital role.
DECISION-MAKING
The decision-making process in PC is decentralized. The model used is dynamic and flexible, whereby the top management takes their time while making decisions and explore and evaluate all the possible alternatives before choosing the rationally economic and feasible solution. Programmed decisions are made by both the lower and top management with proper consultation with the lower managers while the daily and routine decisions are made by the line managers at the middle level with the prior permission or approval from the general Manager. In decision making process manager of a department can take steps to make small plans but these plans should not be affecting the much to the department.
CONCEPT OF PLANNING IN PC
PC uses approximately all horizons for Planning including: Short term Long term Strategic Planning
Short term:
In PC hotel short term planning means that every manager of a department can take steps to make small plans but these plans should not be affecting the much to the department as
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planning need some crucial steps, the department manager discuss it with his upper management and also take suggestions from his employees too. In case of the overall hotel planning the hotel administration 1st discuss it with lower management and take suggestions from the employees and then start operating on it.
Long term:
The long term planning is more like the strategic planning which is taken by the Board of Governors.
STRATEGIES OF PEARL CONTINENTAL HOTEL

When we talk of strategic plan we mean plans that are organization wide, establish overall objectives and position in organization in terms of its environment. Here we will discuss different strategies adopted by the management of Pearl Continental in different departments.
Strategic Planning:
It relies on developing a clear mission statement supporting objectives, a sound business portfolio and coordinating functional strategies. As we know Pearl Continental has a strong image among five star hotels and has an established name in the hotel industry. Pearl Continental has an effective strategic planning at its centralized and decentralized levels. It has defined its goals and objectives at every level and tries to compete with the changing marketing opportunities. The strategic planning of the hotel is turned into detailed supporting objective that guide the whole hotel. Each separate division of the hotel decides what portfolio of the business and services is best for the hotel and how much support to give each separate division. Each separate division and services rate must develop detailed marketing and other department plans that support the wide plan of the hotel.
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PEARL CONTINENTAL HOTEL LAHORE MANAGEMENT STRUCTURE AT PEARL CONTINENTAL

Pearl Continental Hotel is one of the best hotels of Pakistan. All credit goes to the functional dept. of hotel, whose dedication and dexterity has been the one vital source of success of this venture. There are eight major functional departments in Pearl Continental Hotel Lahore. These are 1. Finance 2. Sales 3. Credit 4. Engineering 5. House keeping 6. Human Resource 7. Front office (food and beverage section) 8. Security
MARKETING DEPARTMENT:
The marketing department is concerned with promotional activities, which includes Above the line marketing Below the line marketing
Above the line marketing includes promotional campaigns in print and electronic media.
Below the line marketing includes local campaigns including banners, bill-boards and handouts.
FINANCE/ ACCOUNTS DEPARTMENT:

It is concerned with the financial recording, provision and payments. It consists of a finance control controller, who is the supervisor of the department. There is also a credit section for employees and customers. Account department plays controlling role in any organization. Hence almost every document passes through this section. This provides an opportunity to have check and control on the various departments of the Hotel.
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Account department of Pearl Continental works under the supervision of Controller Finance, who is also the head of Finance Division due to the absence of General Manager Finance. This department is divided into eight sections: Finance section Credit receiving section Purchase section Dispatch section Sales section Cash section Income Auditor Payable section
ENGINEERING DEPARTMENT:
It is concerned with the maintenance of the rooms, offices, floors and lobby area. It ensures full time provision and maintenance of water, power and light in all places. Under the veneer of the hotel facade lays the proverbial engine which keeps the operations literally afloat. The Engineering/maintenance functions not as glamorous as other functions, but just as important, the engineering department is responsible for: HAVC (Heating, ventilation and air conditioning) Electrical System Telephone exchange systems Audio / video systems Plumbing system Communication network Computer system Refrigeration system. Kitchen equipment etc
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HOUSEKEEPING:
It is concerned with general cleanliness and hosting services to the guests. It has a supply section which ensures provision of accessories and valuables. Housekeeping department is responsible for the cleanliness of the hotel including guest rooms, public areas, corridors, restaurants, lounges, laundry and uniform department are under their jurisdiction. This department is functioning with its first and foremost objective to clean each internal and external corner of the hotel. They look after the banquet lounges, health and VIP rooms. This department has supervisors, sewing machine operators, laundry attendant and assistant housekeeping manager. Manger of housekeeping department is the one who is responsible to manage in such a manner to provide luxurious housekeeping with minimized costs.
LINEN:
Housekeeping is also responsible for all linen arrangements in the hotel. This includes storage issuing replacements and repair. Housekeeping managers consider it worthwhile to do most of their laundry and linen maintenance themselves.
HUMAN RESOURCE DEPARTMENT:

This department is concerned with recruitment, promotion, training of Workers in the organization. There are 300 plus workers in the Hotel for which the department have to keep a union of worker which works for social security of the employees. It has three sections, which includes personnel department, human resource management department and human resource development department. I can accurately state that any organization, which runs excellently, is due to constituted body. So in these respect personnel department plays basic and effective role in operation of any institution. The major role of this department is perhaps, more accurately conveyed by the term Human Resources Department. At Pearl Continental Hotel, this include, Recruitment and Selection Training and practice Employees benefit schemes Salary & payroll fixation Employees matters Termination and turn over Performance appraisal
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FRONT OFFICE
Front office has first impression on numerous customers. Their role is very sensitive in satisfying customers. In Pearl Continental Hotel front office is divided in four sections. Reception Counter Reservation Counter Restaurant cashier counter Concierge
Reception Counter
Reception performs following functions: Information to customers. Telephone information. Contact with the rooms. Scrolling register. Preparation of key cards. Make up calls. Room keys handling.
Reservation Counter
Reservations through telephone Reservation through faxes & telex Reservation confirmation Reservation changing Reservation Cancellation Reservation finalization Reservation through sales Hotel-to-Hotel Reservation Confirmed through telex Group handling sales Airport pick & drop service arrangements Reservation correspondence filling Preparation of reservation slips Guests allotment
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Restaurant Cashier
Recording bills. Meals recording of in house guests. Making bills. Bills transferring. Feeding in computer. Outsider's guest cash collection. Cash transfer to general cashier.
Front Office Report

Following office reports maintained by Front office: Making bills of different services Departmental reports Front office cash report Summary of sales report
Concierge
In Pearl Continental Hotel guest are not only treated through accommodation and dinning but also by providing different services like: Room Service dry cleaning facilities Room service iron facilities Postal service Bellboy part luggage service providing different information First Aid
Guest Relation
Welcome to guests Receiving V.I.P's Heartedly Advance booking record Handling misc. problems Room checking Room service
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BUSINESS CENTRE
It has direct relations to different business centres. In-house and other guests find a new and fully fledged round the clock Business Centre, offering full secretarial services. The professional and well-trained staffs of the Business Centre are proficient in the use of computers and complete audiovisual facilities, available at the disposal of guests. Two boardrooms and three private offices complement the centre. The Club, an exclusive dining facility in the Business Centre has been introduced to provide privacy and recognition in a private Club ambience. It features a Sam bonnet trolley service for Breakfast, Lunch, Dinner and Snacks. The club is open to members only.
Rent a Car
Pearl Continental Hotel provide rent a car service to the tourists. A separate office (counter) is given to this department. Various functions provided include:
Rental car arrangements Airports pick and drop service For Reservation purposes Maintaining bill and forwarding to front office
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FOOD AND BEVERAGE DEPARTMENT (F&B):

It is the main department in the hotel, which includes
Restaurants:
Sumptuous foods are served at four outlets. O Taipan: Exclusively Chinese, it serves the best Cuisine in Town, and opens both for Lunch and Dinner. In Taipan Restaurant, people can have buffet lunch from 12:00 PM onwards where the finest Chinese buffet is served. In the evening timings are from 7:30 PM to 11:00 PM. O Marcopolo: It serves Pakistani and Continental Buffet Cuisine, and is open for Breakfast, Lunch, and Dinner. Breakfast starts in Marcopolo in the early hours of the morning serving lavish buffet breakfast. Lunch timing in Marcopolo starts from 12:00 PM to 3:00 PM. O Bukhara: Opens to the lilting sounds of the local Ghazal Singer, and is most famous for its mouth watering Pakistani cuisine, including live BarBQue. It opens at 7:30 PM serving BarB-Que. Buffet layout starts from Chicken Tikka, Seekh Kebab to endless number of BarB-Que delicacies. O Front Page: The Front Page Cafe is royally famous for its very affordable and varied spread of Hi Tea delicacies in the evening and it open round the clock for light snacks and refreshments.
Rooms:
200 well appointed rooms include Presidential, Deluxe and junior Suite. Modern day facilities include direct dial local, National and International Dialling, Cable TV, Heating and Air-conditioning. Electronic Safe with a self-setting code, and Computer controlled electronic door locks are also installed for guests security. The attached bath boasts of a spacious tub, shower and continuous Hot and cold running water. Other important room accessories include the electronic safe. To cater to off time eating urges, they provide you with a beverage room mini bar within the confines of your room.
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Health club:
The aesthetically built Health club includes Tennis, a temperature controlled swimming pool, treadmills and steppers for aerobics, multi machines for weight training, Sauna, Steam, Jacuzzi, and a soothing massage. A snooker / pool table and Table tennis are also available. Newly added Health Club offers its guests light music in the back ground and modern workout machines.
Other facilities:
Besides these the following services and facilities are available to their guests: O Room Service: PC server their guest in the warmth and comfort of their own room, and offer a varied menu depending on the time of the day. O Laundry / Dry Cleaning: The best service in town offers same day delivery. O Banquet Facilities: Tastefully refurbished, their Conference and Banquet facilities can cater from small meetings to royal banquets of 650 to 1500 people, in their Halls and the vast Eastern and Western lush green gardens. O Conference Facilities: The new Conference facilities have state of the art Audio visual aids, and are complemented by available ISDN lines. O Barber Shop / Beauty Salon: Trained personnel take care of their guests tresses, and trim and shape them to make guests look good. O Pearl Tours: A sister concern, offers chauffer driven Cars, Busses, and Mini vans. Open round the clock. O Trans Air: Another sister concern, takes care of all the travel needs. O Florist: From floral settings to bouquets available in the lobby all day.
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O Shopping: From every day utilities, to Carpets, and Antiques, their shopping area provides all. O Bakers Boutique: Exquisite Cakes, Bakes, and Pastries are available for individual and party consumption. O Banking: Habib Bank Ltd. Operates within the premises, and can take care of all the banking needs of the guests. O Credit Cards: All major Credit cards are accepted round the clock.
EMPLOYEES/PERSONNEL IN VARIOUS SECTIONS

A person who is hired to provide services to a company on a regular basis in exchange for compensation is an employee.
DEPARTMENT
Finance Engineering Sales Housekeeping Food & Beverage (service) (kitchen) Human Resource Credit Security Front office Health Club Laundry Stewarding Executive office
NUMBER OF EMPLOYEES 44 35 11 29 39 34 10 6 22 33 2 11 12 5
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Qualification Requirements:
For lower level jobs such as housekeeping or gardener, a person with Matric is eligible whereas for office job sixteen years education is compulsory in the related fields. For executive jobs such as managers MBA or any other Masters degree is the prerequisite.
Competency Dimension:
In this section, different behavioral indicators, in accordance with the performance are checked. These indicators are as follows: Communication Skill Result Orientation Team Player Customer Consciousness Self-Confidence Leadership Qualities Development Orientation Strategic Visioning Business Knowledge Critical Reasoning Human resource Development
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CAREER LADDER
HUMAN RESOURCE:
HUMAN RESOURCE OFFICER
TRAINING MANAGER
HUMAN RESOURCE ASSISTANT
TRAINING COORDINATOR
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JOB ASSESSMENT AT PCHL

Once a new employee has completed the one year probation year, he is evaluated by the managers and immediate supervisors to decide whether he/she is eligible for the particular job or not. For this purpose performance appraisals are frequently used by the managers.
PERFORMANCE APPRAISAL/ EVALUATION:

Performance appraisal or performance evaluation is a systematic and periodic process that assesses an individual employees job performance and productivity in relation to certain pre-established criteria and organizational objectives. Immediate officer appraises performance. For the appraisal of the performance, there is a Performa, which is filled by immediate officer. An important component of PC performance appraisal process is the identification of SMART goals. SMART Goals are widely known and recognized tools in performance management. All employees are asked to identify a series of goals that are Specific, Measurable, Actionable, Realistic, and Time-bound that they can work towards achieving in the year ahead.
Results:
The results of appraisals are then evaluated by a panel of managers to determine whether the person can achieve the targets in the required time frame or not.
Performance improvement plan:

In this section, the immediate manager gives some suggestions and recommendations.
Comments:
The employee/ subordinate and the manager give their comments. Employee comments may be how he found the work place? Who supported him? And the Manager gives the comments according to his observation. In the last they put their signatures with date.
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FACILITIES AND BENEFITS PROVIDED BY PC
Health & Safety:
To safeguard the health and safety of the employees, PC has a doctor in its premises to provide medical facilities to employees. In this regard, periodic checkups, inoculations, and
family planning programs are arranged. A dispensary with qualified doctors is working for this purpose in the factory premises. The health of the employee at the time of recruitment has to be sound and fit persons are employed who are medically examined at the time of appointment.
Adult Education:
All illiterate workers have the facility of adult education. Qualified teachers take adult education classes. Workers are paid for the time they spent in the classes as these studies are during the working hours. Books and other educational materials are provided free.
Bonus:
All the employees get handsome bonus every year, which varies from grade to grade.
Personal Cleanliness:
Every worker is provided with a cake of soap each month for personal hygiene. All the workers are given uniforms. The factory provides the washing facilities and maintenance. Lockers, change rooms and showers are available to all the employees. Each worker gets one pair of shoes annually and also has the locker facility.
Overtime:
Over time facility is available for all the workers. During Ramadan overtime is not allowed.
Recreational Facility:
The management also encourages recreational activities. Employees in groups are encouraged to go on excursion trips and the Company pays the transportation and other miscellaneous expenses.
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Attendance Award:
Among the worker, who shows a good record of attendance throughout the year, a monetary award is provided.
Meals:
Each and every employee of PC is entitled to have lunch, dinner and tea at the cafeteria. Good quality and hygiene food is provided to every employee.
Mosque:
One beautiful mosque is in the hotel premises so that everybody can offer his prayers, and I observed that, considerably large number of employees uses this facility.
On job training:
PC attached a great deal of importance to the training programs of the employees to help them to increase their skills and expertise. This helps to increase the efficiency of the employees. The training and development department impart daily trainings to its workers.
Social Security:
Social Security Scheme is applicable to all the workers of the company who are drawing up to Rs. 1800. In case of injured employees, the company ensures full payment to the worker by paying the balance, in advance in addition to benefits given by the social security.
ACCOUNTABILITY INCENTIVES
To keep an environment of competition among the employees and to encourage them for their good performance various rewards and incentives are given to them by the management. These are: Commendation awards. Honesty awards Employee of the month Supervisor of the month Promotion to the next rank Cash awards
Institute of Business Administration 50

The employees are also given full advantage of the fringe benefits such as: Transportation Free meals during working hours and free laundry for the uniform Free medical checkups 15 days sick leave during the year with full pay. Medical, casual and earned leaves are given as per the Govt. rules.
Recreation allowance Provident Fund Birthday cake for employees Gratuity Bonus
COMMENTS ON JOB SATISFACTION OF EMPLOYEES

During my six weeks of stay at PCHL I found that people at PC are regular, responsible and punctual. They are highly committed and put their extra efforts to accomplish their assign tasks. Most of them are loyal and working with PC since its incorporation, got experienced with passage of time and presently working on key posts. This strong sense of commitment and loyalty with organization develops satisfaction and leads towards higher productivity. This strong adherence of the employees to the organization is a proof of their considerable satisfaction level at PC. Employees since then are satisfied as PC offers great job security and its the most important factor of the employees adherence to the firm. But also have developed their comfort zone at their respective departments and job areas. However, over the years PC went on growing and now it stands at a mature stage. Employees still consider it a premium place on the rest due to Pakistans going on economic and political instabilities.
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Interviewing Employees
When employees of different sections were asked about their satisfaction from their job, they gave the following reasons: Appreciation from seniors Gender Non-discrimination A strong career path Job security A professional environment
Sociable working hours Appreciation of work Strong leadership Motivation Respect
MANAGERIAL STYLE
The relationship between employee and employer is sometimes fragile. The worker may feel pressured to keep his job while harbouring unfavourable opinions about his boss, while the boss wonders if the employee is working to the best of his ability. Employers are also concerned about the morale of workers, because low morale could lead to expensive issues with turnover or low productivity.
Responsibilities
One of the most difficult responsibilities that any manager assumes is that of managing people even if he is responsible for managing a homogeneous group. The difficulty of this task is magnified with the size of the organization and as diversity is introduced to the group (cultural diversity, gender, age, beliefs, disabilities etc.). PC is an example of such an organization which is large in size and diverse in culture. The original culture of PC still prevails and the key managers face a tough task of managing the people and making them adapt to the culture. No formal data could be obtained on the managerial style for managers at PC; the following detail rests on my personal observation.
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Senior Management
The relation between the senior management and the employees was very open and flexible. Employees were allowed to give suggestions on policy formulation. The employees of a particular department and the organization as a whole knew that not only are they valued, but their opinion is also welcome. The more they feel that their input is valued, the greater the sense of ownership they'll have in their department's mission.
Democratic Leadership
Therefore I observed that the managerial style at Pearl Continental Hotel Lahore was Democratic leadership. The democratic leadership style is a very open and collegial style of running a team. Ideas move freely amongst the group and are discussed openly. Everyone is given a seat at the table, and discussion is relatively free-flowing.
Improvements
This style is needed in dynamic and rapidly changing environments where very little can be taken as a constant. In a fast moving organization like PC, every option for improvement has to be considered to keep the group from falling out of date.
Unity
The democratic leadership style means facilitating the conversation, encouraging people to share their ideas, and then synthesizing all the available information into the best possible decision. The democratic leader must also be able to communicate that decision back to the group to bring unity the plan is chosen.
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PART 3
ADMINISTRATIVE /MANAGEMENT STYLES OF PEARL CONTINENTAL HOTEL LAHORE
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ADMINISTRATIVE/ MANAGEMENT STYLES

The process of getting activities completed efficiently with and through other people is called management.
CULTURE AT PC
The main activities of managers are: Planning organizing leading Controlling
CULTURE AND MANAGEMENT STYLE

PC is best in providing the best quality services. The management of the hotel always shows their utmost attention towards their service and never wants to disappoint their guests. Lets start from the business centers, this fully equipped and modern facility can easily handle all your corporate needs. From worldwide internet access to slide preparation, the Business Center ensures seamless execution for your business activities. The services at all the restaurants are also fast and propitious. Every order takes 15 to 20 minutes and not more than that, in the mean time you can enjoy the piano playing some hit numbers and the nice melodious music. Besides this the room service, catering at poolside, service at the banquet halls and at various shops in the hotel is also fabulous. The staff members and the waiters are very polite and nice, and they at their best while serving the guests. You can easily find the necessary commodities from a small tablet to expensive jewellery at the various shops which remain open up to 9 PM. The hotel is also offering services like restaurants which remain open for (breakfast, lunch, dinner), 24 hour room service, laundry valet, shoe shine, hair salon/barber, concierge services, Gift shop/newsstand, secretarial services are also available, safe deposit box at front desk, rental car desk, airline desk etc.
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DEMOCRATIC STYLE
As discussed earlier the Culture at PC is Democratic.
When situations change frequently, democratic leadership offers a great deal of flexibility to adapt to better ways of doing things. Unfortunately, it is also somewhat slow to make a decision in this structure, so while it may embrace newer and better methods; it might not do so very quickly. Democratic leadership style can bring the best out of an experienced and professional team. It capitalizes on their skills and talents by letting them share their views, rather than simply expecting them to conform. If a decision is very complex and broad, it is important to have the different areas of expertise represented and contributing input this is where democratic leader shines.
Democratic Leadership at PC:

In PC Managers offer guidance to group members, but they also participate in the group and allow input from other group members. They encourage group members to participate, but retain the final say over the decision-making process. Group members feel engaged in the process and are more motivated and creative. This is often a highly effective form of leadership. People are more likely to excel in their positions and develop more skills when they feel empowered, and people are empowered when they are involved in the decision-making process. Although it may take some time to achieve full participation from a group, the end result will be rewarding if you can manage to establish a power-sharing environment in your group project. You will find that democratic practices often lead to a more productive and higher quality work group.
Examples of Democratic Leadership in PC:

Asking all group members for ideas and input. Voting on the best course of action in a project. Asking group members to work with their strengths and provide input on how to divide the work. Enabling members to work at their own pace and set their own deadlines.
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HOW PC MANAGES TO BE EFFECTIVE WITH DEMOCRATIC CULTURE:

Managers of PC follow the following guidelines to be effective:
Keep Communication Open: If the marketplace of ideas is going to be open

for business, everyone needs to feel comfortable enough to put their ideas on the table. The democratic leadership style thrives when all the considerations are laid out for everyone to examine.
Focus the Discussion: Its hard to keep unstructured discussion productive.

Its the leaders job at PC to balance being open to ideas and keeping everything on-topic. If the conversation begins to stray, remind everyone of the goal on hand and then steer it back. Apart from this managers of PC make sure to take note of off-topic comments and try to return to them when they are pertinent.
Be Ready To Commit: In the democratic leadership style, you get presented

with so many possibilities and suggestions that it can be overwhelming and difficult to commit. But as the leader, when the time comes, you have to choose and do so with conviction. The team depends on the clear and unambiguous mandates to be committed.
Respect the Ideas: PC and its team might not agree with every idea, and
thats ok. It is important, however, that you create a healthy environment where those ideas are entertained and considered --not maligned-- or the flow of ideas will slow to a trickle.
Explain, But Dont Apologize: PC want the advocates of the solutions that
were not selected to understand that their thoughts were considered and had validity, but that ultimately you had strong reasons to go a different direction. Its important that the decision be communicated, but you should not apologize for deciding on what you think.
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IMPACT OF MANAGEMENT STYLE ON EMPLOYEES

The following are the impacts of management style that employees have:
MOTIVATION
The term motive implies action to satisfy a need. Motivation can be defined as a willingness to expend energy to achieve a goal or a reward. The management styles adopted by the PCHL affect greatly, and employees are motivated in order to enhance their performance and achieve the derived goals.
MORALE AND PRODUCTIVITY

The employees possess high morale, and thus exhibit high productivity. The employees are happy and are also productive workers. Job attitudes and morale are quite positive for two reasons. Firstly employees gain social satisfaction from interactions at the work place. Working conditions and supervision are good; secondly high morale results from high motivation to produce
MORE INDIVIDUAL RESPONSIBILITY

The employees of PC exhibit individual responsibility and they are fully aware of their job and responsibility towards organization.
SUPPORTIVE ENVIRONMENT
The environment of the PC is very friendly and supportive. There is a good communication among departments and employees.
JOB EFFICIENCY AND SATISFACTION

Consequently the overall impact of the well-equipped management styled organization is the job efficiency and job satisfaction. At PC the employees are very much satisfied with the job and the overall working conditions of the bank. Management is fully aware of every matter and monitors the performance of its employees. Also the style is not 100% participative. Management takes decision of its own where it is needed to avoid any issue.
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ROLE OF HR DEPARTMENT IN PEARL CONTINENTAL HOTEL LAHORE
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PEARL CONTINENTAL HOTEL LAHORE HUMAN RESOURCE DEPARTMENT

The HR Team consists of: Director Human Resource Col. (R) Shahzad Rafique Malik HR Manager Maj (R) Zafar Iqbal Assistant HR Manager Mr. Aqeel Ahmed HR Officer Mr. Salamat Bhatti HR Officer Mr. Nafees Ahmed HR Coordinator Mr. Shahid Mahmood
INTRODUCTION:
The human Resource Department of Pearl Continental Hotel Lahore is capable of performing the following functions: Job Analysis Recruitment Training and Development Performance Appraisal Setting Compensation Policies Providing safety and health to employees
Vision
Well open the doors; youll see whats in store.
Mission
Our mission is to be the hotel recognized as the leader in the industry in any aspect. We are committed to train and develop all our staff members allowing them to grow in their careers and provide services and standards which exceed guest expectations.
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The mission statement clearly shows that it aims at becoming world-class leader in the service industry. It also shows that the management at PEARL CONTINENTAL HOTEL believes in an exceptional workforce to provide world-class service to their customers. They want to ensure that not only they satisfy their customers but also delight them.
HIERARCHY OF HR DEPARTMENT:
DIRECTOR HUMAN RESOURCE
HUMAN RESOURCE OFFICER
TRAINING MANAGER
HUMAN RESOURCE ASSISTANT
TRAINING COORDINATOR
Overview of the Human Resource Department:

Their aim is to manage the hotel by human resource policies which encourage and reward individual and unified effort and achievement, provide training and personal development opportunities and create a working environment in which staff can feel a real sense of job involvement. Proper human resources management can be the difference between a really well run hotel and a poorly one hotel. The human resources manager can control almost the whole feeling and presence of the entire hotel. This makes the importance of human resources management for hotels very evident. The primary objective of HRD is to provide detailed guidelines for the various procedures which cover the company policies and make it easy for each and every employee of the hotel to be aware of them. The department is involved in budgeting, recruitment, selection, orientation, training, career succession planning, dealing with the union, reviewing of policies regarding employees, benefits, compensation and developing employee security in the form of provident funds etcetera.
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Role of HR Department at PC:
Organization needs people and people need organizations. Since PC Hotels are a part of the service industry, the HR element of the organization is fundamental and carries a great value. Human resource plays a vital role in the smooth running of an organization. The total numbers of permanent employees working for Pearl Continental Hotel Lahore is more than 300. A large number of these employees are working in Food & Beverage Department and House Keeping Department. Although Pearl Continental 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 rediscovers the simple pleasures of life. They want to focus on making things better, not bigger. Their vision statement can be understood by deriving meaning from this simple slogan in the way that they recognize that the priority is customer satisfaction which is a byproduct of provision of excellent services, which in turn are dependent on how well trained and punctual your staff is. They have to position their hotel and train their employees in such a manner that they can cope with competition from other renowned hotels and grab a larger market share. They have to efficiently handle their HR department to help the management of hotel objectives.
Objectives of HR:
Job analysis; i.e. making job descriptions and job specifications for each and every post. Selection Recruitment Orientation Training and development Negotiation and conflict management Performance appraisals
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Duties of HR in PC:
Recruit new personnel whenever it receives vacancy notices from any of the department. The employees that are hired in a hotel can really alter the quality of service and the whole atmosphere of the hotel. This means that it is very important to pick upbeat, dedicated workers for each position. It is the job of the human resources manager to make sure that good people are chosen to work in the hotel. In many cases many hotel workers are only participating in hotel work because they can find nothing else to do. Not many people have a dream of running or serving in a hotel environment. However, there are some people who do want to work in that capacity, and it is the job of the human resources manager to find those people. Retaining the employee is also crucial for the HRD. Managers can provide good training and incentive programs that will cause employees to stay longer at the hotel. Having a clear progression plan to advance to higher levels of service will also cause employees to stick around much longer. Dealing with union contracts and their issues to ensure an alignment of work practices and ethics with minimal disruption. They deal with and tap employee progression and promotion. Employee orientation is also their job because they realize that improper employee orientation can turn the recruitment and selection practices to a mere turnover statistic. Dealing with matters regarding payroll, allowances such as fuel allowance and mobile phone allowance, leaves, medical or otherwise, disciplinary action in case of theft or any other disruption or violation of work ethics on the part of an employee, provident fund, gratuity etcetera. Employees old age benefits records.
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PEARL-CONTINENTAL HOTELS HR ROLE IN EXECUTING STRATEGY

Pearl-continental hotels functional strategies support its competitive strategies. To play a role in executing strategies PC must require highly committed employees which are the part of the PC culture. This means PC, begins its HR processes to create a committed, 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 PC.
HR Role as a Strategic Partner:

Pearl Continental Hotel can also play a vital role in making strategies with other departments as well. They make their own forecasting plans. My view is that PearlContinental 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 management crafts the strategies of the organization. The strategies made for the HR dept. are then programmed to execute that strategy. For Pearl-Continental Hotels strategies there is a matching human resource strategy. Here, HRs role is not just to adapt its activities neither to the PCs business strategy, nor, certainly, just to carry out operational day-to-day tasks like paying employees.
Recruitment & Selection of employees

Employment planning and forecasting. Recruit / build a pool of candidates. Applicants complete application form. Use selection tools/tests to screen out candidates. Director or department head interviews the final candidate to make a final choice. Candidate becomes the employer of the organization. Selection board consists of the General Manager, HR Director, HR Manager and Head of the vacant posts` department. Independent views about the suitability of a candidate are given. Walk in interviews are conducted at all times and when a vacancy arises, the CVs
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of the candidates are consulted. There are around 300 employees working currently in PC Lahore and most of them are permanent, while the remaining are on daily wages. The
majority of employees are required for the housekeeping and food and beverage department. This is due to the fact that the hotel industry basically deals with restaurants and rooms, so to make and maintain the required standards concerning these significant areas, employees are needed.
Recruitment Practices at Pearl Continental Hotel

Pearl Continental Hotel has a standardized list of jobs that are filled in accordance with international standards. However these lists are not permanent and new jobs are added to it keeping in view the changing needs of the workforce. A new vacancy in Pearl Continental Hotel may arise because of the need to replace the retiring staff, dismissed staff, promoted staff or replacing an employee on job rotation. In case a department needs to fill in a vacancy, head of that particular department sends a requisite form to the Personnel Manager. The form contains specifics, e.g. whether the position is for a new employee or a replacement, qualifications required for the job and its respective justifications. This requisition form is sent to Personnel Manager and General Manager respectively for their approval.
SOURCES OF RECRUITMENT AT PC:

Inside Candidates:
As soon as a position is vacant a memo is issued throughout the organization. The employees interested in the vacant position drop their application forms at HR department. The other source for internal candidates is referrals.
Outside Candidates:
There are no means used for attracting the outside candidates. PC makes no advertisements. The word of the mouth from the existing candidates does the job of getting out side candidates. Internees are one of the sources of the outside candidates.
Internees a Source of Outside Candidates:

Basic requirements for internees are the hotel management degrees and diplomas/certificates in hotel management. The referred candidates are given priority.
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Minimum duration of internship is one month whereby internees are not paid. Free food and laundry services are however provided.
Job Analysis:
At PC job description is prepared for only managerial level post. The job description is written by the HR department, the employees who are performing/ has performed the specific
job make their contributions by listing down their activities in provided diaries/logs & then presenting them to the HR department which consequently writes down the specifications for the personnel required.
Job Description:
Job descriptions are lists of the general tasks, or functions, and responsibilities of a position. Typically, they also include to whom the position reports, specifications such as the qualifications needed by the person in the job, salary range for the position, etc. Job descriptions are usually developed by conducting a job analysis, which includes examining the tasks and sequences of tasks necessary to perform the job. Job descriptions are used especially for advertising to fill an open position, determining compensation and as a basis for performance reviews.
In Pearl Continental Hotel, the job description contains: Skills and Efforts Tasks Responsibility Outlines of the Duty Whom to Report the Task Everything is mentioned in it for the employees in a very detailed manner.
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Job Specification:
Once you are aware of the type of person you are looking to fit your job vacancy, you can now design a "Job Specification" profile. In Pearl Continental Hotel, the job specification includes: Qualification of employee Experience of employee Training or development needed for the particular job Personal attributes required for the job Interpersonal skills and communication skills.
Job Evaluation:
Job Evaluation is the methods and practices of ordering jobs or positions with respect to their value or worth to the organization. According to PEARL CONTINENTAL HOTEL following factors are considered important while making job evaluation which is:
Complexity of the Job. How much Stress one can Bear. Available Budget for Compensation. Experience Required for the Job. Company Need for the Employee for that Job. Abilities required performing a Job.
METHODS USED FOR JOB EVALUATION:

According to Pearl Continental Hotel, the method used for Job Evaluation is as follows:
Classification Method Ranking Method Point Method
Pearl Continental Hotel use Classification Method when an employee is performing well and has a chance to get promoted with the same position but at higher level. On the other hand Pearl Continental Hotel believes that there hierarchy is flat in nature. Due to which

they consider that the pays varies according to the position of the hierarchy. The top management will get more salary as compared to employees of middle management. According to this policy Pearl Continental Hotel is also following ranking method.
SELECTION
Selection varies according to the job post. At PC for some jobs (i.e. chefs) they use work sample testing technique, whereas the basic criteria for testing and selection listed are:
Appearance & Grooming Professional Qualifications Experience & Knowledge of Job applied for Communication Skills in English Balance Poise & Maturity Potential for Growth Reasoning & Judgment Computer Skills
Selection Procedure at PC:

Firstly they trickle downs the CVs. Then call only those for the interview which have been selected. Selection is based on the eligibility of qualification and experience. If the candidate has the qualification and experience according to the job specification then he is called for the interview. Minimum qualification is matriculation for the lower level staff. And the minimum Qualification is bachelors for the upper level staff. They avoid negligent hiring because they are running five star hotels.
INTERVIEW:
Step by step procedure is followed in the interviews. The candidate is first interviewed by the Director HR. This interview is unstructured, the HR manager asks frequent question to screen out the eligibility and potential of the candidate.
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After conducting interviews from all the candidates he prepares a list of the capable candidates. The second step, in this step the selected candidates are called again for the structured interview which is to be conducted by head of the particular department. In such interviews general knowledge questions which are related to the job are asked from the candidates. And also the behavioral based question that what would be the behavior and how a candidate would be performing in a given certain situation. This
Helps them to judge the personality, temperament, attitude, and the minimum stress could be handled by the candidate. The example of the whole procedure can be such as, like an assistant marketing manager is required so he would be first interviewed by director human resource manager then would be going through a panel interview in which certain job related question will be asked such as, describe 4 Ps of marketing or consumer market and consumer buyer behavior etc. In their opinion behavioral interviewing is a good screening process to screen out the best of the best people. For top level they also have Panel interview.
Orientation:
During the orientation, the employee is given a brief introduction of the hotel, about every department, working environment in which he has to work, and of the work related colleagues. The employees are also provided with the job description of their work at the time of orientation, which guides them for their services they have to provide, and also introduced to the rules and regulation of the company which includes. There is a difference in the dress code of each employee from top to bottom. Employee should respect the privacy of another employee.
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PEARL CONTINENTAL HOTEL LAHORE TRAINING & DEVELOPMENT

Steps used for the training and developments of employees at Pearl Continental Hotel are as follows: They provide training to their employees on 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 Pearl Continental Hotel has to recruit and select the untrained candidates and train them according to their own needs. Safety training is also provided to the employee.
TRAINING APPRAISALS:
After training, the trainee performance is appraised by the immediate supervisor. The immediate supervisor in Pearl Continental 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.
The immediate supervisor gives his remarks (assessment) according to trainees work and also attaches his tests and assignments during training with that form.
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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 PC appraisal is done by the head of the specific department whose employee is being appraised. The appraisal method used at PC is Graphical Rating Scale. Employees promotion (or demotion) is finally approved by the HR Manager. Appraisals are conducted every three months a year. The most important factors that are considered while appraising an employee are: O Appearance O Conduct O Professional Work O Leadership & Teamwork O Planning & Organization O Initiative & Creativity O Communication O Training Skills O Business Attitude & Operational Performance O Achievements of Objectives
Besides this they also consider their customers feedback regarding employee performance in order to bring quality improvements.
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.
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ANALYSIS OF PC HR DEPARTMENT
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STRENGTHS OF THE HR DEPARTMENT:
There is good coordination and flow of communication between the HR director and the HR managers who keep each other informed of whatever decisions are being taken regarding employees and whoever is being hired. In case of medical issues of employees, they are given preferential treatment and their issues are resolved by the HR manager and director on priority basis. The HR department is very systematic in terms of handling information. The files and database of employees has been properly maintained since the inception of the hotel. Even when data entry was done manually, those records are present with the proper names, departments, year of joining and reasons for leaving mentioned. HR officer makes an effort to keep every employee informed of the policies. The policies are available for employees to read whenever the need arises. When employees become permanent they are clearly told and explained of all the benefits they are entitled to like medical allowance etcetera. Plus they are also given the choice of whether or not they want to be a part of the provident fund group. In case of lower level employees who are not familiar with what the term means, the HR manger duly explains to them every important thing. The HR manger knows every employee by name, ranging from a cook to positions of directors. Knowing this gives the impression that employees are valued, they have an identity. When they feel that the organization values them and they are a huge part of it, they strive to work better, which results in better performance. Performance appraisals are duly checked by the HR mangers after being done by the department heads. Employees who work overtime are paid on a priority basis by the HR manager. Their pays are not kept pending. They have a lot of trainees who they are training. This means that at a later stage when they are hiring for a vacant position in the HR department, these trainees might apply and hiring them would be beneficial for the organization because they are already familiar with the work procedures, ethics and have a more realistic job preview as opposed to a totally new employee who has no familiarity with the system. This leads to better retaining of employees.
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In case of warning letters and disciplinary hearings, proper procedures are carried out that do not lead to the feeling to the employee that he has been mistreated. Universal Enterprises is the recruitment agency that is arranging some of the employees that work on temporary basis. The major contribution by an agency is their ability to provide a total, professional service and when anonymity is needed. Besides paying an agency to conduct the screening can save time for the employing organization. The consultants can mostly ask questions that a potential employer cannot. Similarly, an applicant is likely to give information to a third party (independent), that they would not be prepared to give to a potential employer. For example, not many applicants would admit to a prospective employer that they did not get on well with their current boss. The preferred source of hiring is internal hiring. This means that the orientation provided has to be minimal. The employees are already aware of the culture of the employing organization, the policies, work ethics and procedures. References as a method of recruitment has its advantages because there is opportunity to check the accuracy of the some of the statements made on the application form and to double check on the assessors reading of the individual candidate. For the food and beverage department, the employees that are hired in the kitchen are selected on the basis of work samples, that how well they are able to do the job. This technique has a high predictive validity which suggests that the chances of being able to predict a perfect match between the candidate and their performance in the job are higher which means successful recruitment and selection.
Challenges for the HR Department:

Managing a dynamic and rapidly changing environment. Conflict management Managing workforce diversity Lack of trained workforce Global competitive environment Economic challenges Loyalty of employee
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WEAKNESSES OF THE HR DEPARTMENT:

A lot of the work and files are still manually handled, or the previous data has not been computerized. That leads to wasting of time when the manger has to go through the files and try to find an employee who worked for the company in, for example, the year 1997. Time is of essence in today`s dynamic and challenging work place and lag actually signifies that in the long run , the manger is able to get less work done and is less productive. Scheduling of employees is still done manually; this can result in clashes and haphazard coordination leading to mismanagement. There are no proper trainings and workshops that the mangers attend that can keep them abreast of the modern changes in the field of HR. There are problems with the union i.e. workforce and organization. This is a huge issue in terms of trying to ensure a continuous flow of good relationship between the management and employees. There is very less stress on career succession and development. They are not exactly tapping their future needs. They have to strive to remain current with latest trends that can ensure smooth running of the hotel. Immediate promotion depends on situation to situation. They have to outsource the middle level or top level positions instead of being able to promote someone from the junior ranks who has been trained on these lines. There should be more stress on how to deal with conflict management. There are employees working who have a diverse background, nature and habits. HR has to be quick in counselling on every level to streamline such issues. Trainees are not given planned training. They are given tasks that are not exactly a reflection of what an internship is supposed to be. In Pakistan, very few institutes are able to provide trained workforce for the hotel industry on international standards. Though Universal Enterprises is the firm doing that for PC but that has its disadvantages. A candidate might form a negative image of the organization after being in touch with the outsourced firm that has nothing to do with what the organizational culture is. The consultant will be taken by the applicant as a representative of the employing organisation, and
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therefore the way in which they are treated will be taken as indicative of the organisation`s treatment of staff. The briefing given to the consultants needs to be thorough and action should be taken to check understanding. There is a danger that the consultant, naturally, will use personal interpretations and prejudices that may be contrary to those implicit in the organisation`s culture. Reference as a selection process has a very low predictive validity. However, references are extensively being used for even the entry level positions. Even if there is no space in a department for more employees, they are being adjusted just because the reference is strong. This disappoints those who do not have references and the organisation image weakens in the minds of the potential applicant. Eventually, the best person for the job might end up working for a competitor hotel just because he/she was not given a chance here. A line has to be drawn between nepotism and references. Internal hiring has its disadvantages in the long run. New people which can bring new innovation, ideas, experiences and creativity are not given a chance. When interviews are being taken, they are not structured. They do not have pre planned specified questions that they can ask from the interviewee. Unstructured interviews are conducted in which no question is asked on a predetermined format. This means that when a lot of people are being interviewed, they are no way of evaluating them on the same scale because everyone has been asked different questions. This is when bias creeps in while making the final decision and the best candidate for the position might get rejected.
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RECOMMENDATIONS:
There should be software that can help the managers in scheduling of employees so that there is no mismanagement and clashes while scheduling. The system should be computerised. Investment in data entry once can actually make things easier when employee records have to be rechecked. The data of all employees must be computerized. Apart from walk in interviews, other methods must be employed to fill vacant posts. Structured interviews should be conducted, where the questions are preplanned and properly thought out. Each applicant should be asked questions on
the same way so that evaluation when being done is fair and comparison between candidates is done in an efficient manner. HR mangers must be given a chance to attend training workshops and seminars to keep abreast of the latest human resource practices in dealing with personnel. To further improve the quality of work, 360 degree appraisal should be used more properly which reduces bias during evaluation. The HR department in general should strive to improve the selection / search process for filling vacant positions, develop succession plans, forecast critical skills/knowledge and ability needs, identify critical skills, knowledge and ability deficiencies, create a career development system that reflects the organizational mission. Strategic HR decisions should be stressed upon to use the workforce most wisely. This can contribute to employee commitment, development of talented people focused on growth and building career opportunities. References and internal hiring should not be the only way of hiring people. Other alternative means of hiring people should be considered that can give more chance to fresh people from the market entering. They can actually be
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more talented and productive instead of those who are coming through references.
Mentoring or coaching can be an efficient technique to train the current employees to rise up to the standards required for top level management. Flexible benefit plans from which employees can choose the benefits they want to avail can be a good idea so that employees can choose that which suits them best. The pay scales in general should be revised keeping in mind the inflation in the country. Bonuses paid to the employees should be in the form of extrinsic motivation i.e. cash as well as intrinsic motivation.
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PART 4
PRODUCTION FACILITIES
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PEARL CONTINENTAL HOTEL LAHORE PRODUCTION FACILITIES

As Pearl Continental Hotels belongs to the hospitality industry, therefore it is involved in the production of services. Owing to the vision of its founder, Mr. Sadruddin Hashwani, Hashoo Group of Companies is a preeminent player in hospitality industry in Pakistan. Since its inception in 1972, it has offered its valued guests warm hospitality, impeccable service and unparalleled facilities promising a memorable experience. Strategically situated at prime locations, the hotels cater to the business and leisure needs of local and international market. The Groups commitment to excellence, attention to details and personalized services ensures a loyal guest list. The Pearl Continental Hotel Lahore combines the finest tradition of warmth and hospitality, with a level of services and facilities guaranteed to satisfy the most discerning guests. In order to increase the production facilities, the PC hotels needs to increase its employees and stress should be laid on their training. In order to increase the food production, the food making machinery shall be increased. Moreover, the existing machinery shall be checked so that any fault could be eliminated. The PC hotel management keeps a sound check on the production facilities. The supervisor of kitchen and laundry, weekly checks the machines to know if they are working properly. Every 3 months, a particular batch of kitchen, laundry and housekeeping employees goes for a training course.
Offers
They offer: Shopping arcade: Bookshop, Carpets, and Antiques shop, Handicraft shop. Banking: United Bank Limited operates within the premises, and can take care of all your banking needs. Chauffer driven Cars & Bus services round the clock. Trans Air
travel desk takes care of all your travel needs. Concierge Laundry / Dry Cleaning Barber Shop: Trained personnel take care of your tresses and shape them to perfection. Xavier Beauty Saloon & Foot Care Florist Car Rental Services In House Doctor

Business Centre
The hotel has a fully equipped business centre open 24 hours with all the latest in office automation and secretarial services.
Privilege Club:
The world of Pearl-Continental Hotels welcomes you to the Privilege Club. Your membership to the Privilege Club entitles you to a host of exclusive privileges. When visiting the Pearl Continental Hotel restaurants in Karachi, Lahore, Peshawar, Rawalpindi, and Bhurban, which are renowned for unparalleled quality of cuisine attentive service and authentic design surroundings, your dining experience in any of the listed restaurants when using your Privilege Club Card is guaranteed to be unique and memorable. Furthermore, you will be offered a variety of other benefits like 70% discount on rooms, when using selected hotel services. A sample of Privilege club membership form is given in the appendix.
PRODUCTION FACILITIES OF HASHOO GROUP

The Investment Portfolio of Hashoo Group is as under: Hotels and Resorts Oil and Gas Information Technology Trading Pharmaceuticals Minerals Real Estate Tour and Travels Ceramics
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The Hotel and Resort industry has been discussed above. Some of the production facilities are discussed below:
Ceramics:
It includes Cera-e-Noor:
Cera-e-Noor (Manufacturers of finest Porcelain wares):
Perfection in color and style
Located in Lasbela, Baluchistan, Cera-e-Noor was acquired by Hashoo group of Companies in the year 2000. Cera-e-Noor, Pakistan 's premier porcelain tableware manufacturing facility has been setup in collaboration with Bernardaud Liamoges , France . They are now part of the dynamic Hashoo Group, owners and operators of the chain of 5-star Marriott and Pearl Continental Hotels throughout the country. Cera e Noor is one of the leading manufacturers of fine porcelain tableware in Pakistan, with presence in International market as well.
Pharmaceuticals:
Gelcaps Pakistan Limited
Adding both years to life and life to years

Gelcaps Pakistan was incorporated in 1984, with a challenging and inspiring mission to improve the quality of human life. Gelcaps Pakistan manufactures Halal gelatin capsules using indigenous and halal raw materials which can be supplied in any single or combination of different colors, in opaque or natural form. These capsules are manufactured in one of the most modern and sophisticated plants. The plant has automated humidity control and a sanitized atmosphere which eliminates the risk of introducing bacteria.
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PART 5 MARKETING MIX OF PC
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PEARL CONTINENTAL HOTEL LAHORE MARKETING AND PUBLIC RELATIONS DEPARTMENT IN PC

Hotel business mostly depends on public relations. Management try to have positive image in public, so because of this Pearl Continental Hotel maintains a separate good office of public relations department. This department performs following important functions: Organizing advertising campaigns Conveying protocol on arrival of VIP's Publishing pamphlets, bulletin Organizing festivals Functions
APPROACH TO DIFFERENT ORGANIZATIONS

One thing which I observed in Pearl Continental Hotel is that that they are very interested to have approach to National and International Agencies / Organization. Some special delegation and teams approach to them and express their facilities. Sometime they give them complimentary lunch or dinner or any other gift etc. All these works are controlled by: Marketing office Sales office Business Promotion office
Objectives:
1. To maintain a positive image in the media 2. To strengthen media relations 3. To be a part of important business social, and sports events in the city 4. To arrange social and cultural events in the hotel in collaboration with other companies 5. To participate in community relations activities 6. To promote activities for Ladies in the hotel 7. To promote activities for Children in the hotel 8. To present promotional material of good quality 9. Effective advertising
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Action Plan
To maintain a positive image in the media News Papers Magazines Dawn Herald The News She Nation News line Jang Friday times Nawa-e-waqt Travelogue Select a topic for the release, which should highlight hotel services. We will focus upon the following: Safety Systems Different outlets of the hotel Details of decor in the hotel Participation in the plant and tree plantations Measures adopted for environmental protection Highlighting the prestigious events taking place Press releases for cultural events, interviews of artists and post function coverage
To Strengthen Media Relationship

Call upon important media personalities. 8 working hours will be allocated every week, for this focus will be on: Television Newspapers Magazines Public relation heads of other important organizations including govt. concerns
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Action Plan:
Periodic entertainment in the hotel from time to time Send birthday cakes to media personalities Keep them posted about important events taking place in the hotel which will provide them opportunity to cover these events.
PRODUCT/SERVICE
Product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need of the person. It includes physical objects, services, person, places, organization and ideas. Products contain both tangible and intangible components, predominantly tangible products are called goods and intangible products are called the services. Services are the temporary provision of a product or the performance of an activity intended to satisfy certain needs of buyers. They can avail the services but not in general own it. In our economy many organizations provide services like schools, hospitals, banks, transportation, hotel services etc. Hotels provide an intangible service for use or enjoyment, not for the ownership; however they have the product just the same.
SERVICES OF PEARL CONTINENTAL:

In the hotel industry, Pearl Continental has a complete image about its services. Pearl Continental establishes a complete brand name in the hotel industry. The services of these hotels are related with the persons, places or organizations or any combination of these. Pearl Continental & Marriott hotels are under the ownership of Hashwanis group. The six Pearl Continental hotels are situated in Pakistan's foremost business. This hotel has a largest group of five star hotels in the country. The hotel provides the best services against its competitor. The hotel provides services up to twenty-four hours a day. There are different types of services that Pearl Continental provides to its customers. These services are given below:
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Rooms:
Encompassing unparalleled sense of comfort and opulence, each room at Pearl Continental Hotel Lahore, imparts a liberating sense of space with detailed attention on the needs of corporate or leisure guests. Well equipped with modern amenities and efficient service, these elegant spaces serve as an unexpected oasis of exclusive tranquility immersed in the frenzy of the city centre.
Special Features of Deluxe Rooms:

Mini bar in all rooms 24-hour broadband internet facility. A variety of information, services, world news, unlimited access to on-line movies and music Fruit basket in each room. Choice of local & international newspaper. Airport transfer, by hotel shuttle, subject to prior flight details. Use of health club, swimming pool with sauna and steam bath. Electronic safe deposit box. International direct dialing
The Executive Club Floor

All the facilities of Deluxe rooms 24-hour broadband internet with Pentium 4 personal computers Free local telephone calls Deluxe fruit basket. Express check-in and check-out exclusive for Executive floor guests. Personalized butler service round the clock
The use of Club Lounge includes:

Continental breakfast Snacks and beverages available till midnight Hi-Tea served in lounge from 1600 hrs 1800 hrs
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Suites:
Their spacious suites have been thoughtfully designed in rich tones, with avant-garde details, to accommodate your specific needs. Well-appointed bathrooms, having oversized shower and bath areas, self contained kitchen with modern appliances, dining lounge and working area bring luxurious livability. Decorated with unique paintings and antiques, these suites transport guests into a world of regal grandeur.
Features
Pantry with large fridge One spacious living room and large bed room Connecting room available with an extension facility CD player P-IV Compaq computers High speed internet Printer
DINING:
Taipan
Walking through the dramatic entrance of Taipan is like stepping into the Chinese dynasty and across the Pacific. The warmth and professionalism in this oriental and elegantly modeled restaurant is instantly recognizable, from the attentive staff to the wellprepared Mandarin-style Chinese food. The menu parallels the decors up market ambitions, with relishing taste of dry-wok-fired Szechuan chicken, tangerine beef with celery hearts, crispy fish and steamed prawns with garlic. The presentation is just as beautiful as the flavor. If you are particular about standards you will not be disappointed.
Front Page Caf

Suffused with Charm, the color theme at the Front Page Caf is based on gold and silver shades framed by natural light and softly glowing wall panels, adding flair to even the most casual of midday meals. Attentive service satisfies the sense of occasion, with an extensive menu from salads to signature sandwiches, soups, and varied spread of Hi-Tea delicacies. The goal is to ensure that our guests eat the way they love to eat.
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Bukhara
The exotic atmosphere inside Bukhara whisks you to a serene ambience - delicious food arrives, in sync with the tunes of the poetry entangled with melody and revives you with the lilting sound of the Ghazal singer. The sumptuous Pakistani cuisine buffet ensembles everything from chicken tikka, qorma and biryani to an endless number of barbeque delights savored in elegant traditional environs.
Marcopolo
Warm, serene and elegant, Marcopolo has a unique combination of traditional and continental cuisine buffet, along with a variety of exquisite desserts. The menu includes an appetizing and diverse selection for breakfast, lunch and dinner, as well as a weekend brunch. The menu and the contemporary dcor of Marcopolo appeal to everyone.
SPA & FITNESS

Health Club
The Health Club & Spa at Pearl Continental Hotel Lahore look after the complete well being and relaxation of your body and mind. The fully equipped fitness room and professionally designed work out programmes foster the motivation to achieve balance and lasting health. As fitness goals are dynamic, their approach helps you to harness and resolve to achieve maximum results within and beyond your doors. You will embrace Fitness as a way of living. The Spa has: Fully-equipped gymnasium with cardiovascular, resistance and weight stations. Qualified personal trainers offering advice on exercise and nutrition. Personalized fitness assessments and training programmes catering to all levels of fitness. Poolside relaxation area offering a delicious menu of healthy dishes and drinks. Jacuzzi, steam room and sauna in both ladies' and gentlemen's dressing rooms. Table Tennis, Snooker, Lawn Tennis facilities. Outdoor all season temperature control swimming pool.
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MEETINGS AND BANQUETS
Rediscover the art of conferencing with Pearl Continental Hotel Lahore. Their fullyequipped Business Centre and regal banquet halls offer the perfect combination of efficiency, convenience and consummate style, keeping in mind the business and commercial requirements of the nation. PC grand Banquet halls offer perfect locations for traditional wedding ceremonies, exclusive parties and exhibitions. They do everything to create an inspired wedding that you will cherish forever. Their cordial and always-welcoming meticulous service is perfect to every detail from planning to execution, making those special moments of your life memorable. Superb cuisine at their banquets, complement the adaptable spaces to support the most demanding needs for a varied clientele.
Banquets
PC grand Banquet halls offer perfect locations for traditional wedding ceremonies, exclusive parties and exhibitions. PC does everything to create an inspired wedding that you will cherish forever. Their cordial and always-welcoming meticulous service is perfect to every detail from planning to execution, making those special moments of your life memorable. Superb cuisine at our banquets, complement the adaptable spaces to support the most demanding needs for a varied clientele.
SERVICES:
The Pearl Continental Hotel Lahore combines the finest tradition of warmth and hospitality, with a level of services and facilities guaranteed to satisfy the most discerning guests.
PC OFFER: Shopping arcade: Bookshop, Carpets, and Antiques shop, Handicraft shop. Banking: United Bank Limited operates within the premises, and can take care of all your banking needs. Chauffer driven Cars & Bus services round the clock. Trans Air travel desk takes care of all your travel needs. Concierge Laundry / Dry Cleaning Barber Shop: Trained personnel take care of your tresses and shape them to perfection.
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Xavier Beauty Saloon & Foot Care Florist Car Rental Services In House Doctor A baby sitter on demand.
Business Centre
The hotel has a fully equipped business centre open 24 hours with all the latest in office automation and secretarial services.
SERVICE CLASSIFICATIONS
Services are related with the intangible products and differ from the tangible products. Services are classified into the different groups. Classification is important as it gives us a great understanding of the values that we provide to our customers. This understanding about calcification of services provides the insight needed to create effective marketing strategies. Pearl Continental has classified its services on Profit Objective Customer Type Labor and Equipment needs
Profit Objective
A major distinction among service providers is whether or not they seek financial profit. Hotel industry makes strategic marketing decisions based on potential return on investment. The basic purpose of Pearl Continental in the hotel industry is to achieve maximum profit out of the business. The location, services, equipment and target potential groups of the hotel are all chosen with an eye to making a profit.
Consumer Type
Service firms have both consumers and organizational customers. The services are identical in some cases; but different marketing strategies are required for the different type of customers. Pearl Continental has two types of clients; O The Regular Corporate Client O The General Client.
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The seventy five percent (75%) of the hotel's business is dependent on the corporate client. Many large organizations have a contact with the hotel and their clients regularly avail the services of the hotel. Seventy percent (70%) of the tourists are regular corporate client of the hotel. They come here and avail the services for the business purposes or for recreation. There is another type of customers that is the general clients of the hotel. These customers come here for the recreation. So the hotel has a different marketing strategies for the corporate client and different for the general client
LABOUR AND EQUIPMENT NEEDS

Labour Based Services
Labour-based services are those services that are delivered by the people and are primarily concerned with the activities of the people. Pearl Continental provides services to its customers directly through the people. They have a direct marketing with their customers. They send their personnel in different organizations and they give them information about the new service.
Equipment Based Service

Equipment based services are those that are delivered by equipment and Pearl Continental also use the equipment based services. They inform the customers about the services through telephone, fax, E - mail, computers etc.
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PRICES OF PEARL CONTINENTAL:

As we know that each room at Pearl Continental Hotel Lahore, imparts a liberating sense of space with detailed attention on the needs of their corporate or leisure guests. Well equipped with modern amenities and efficient service, these elegant spaces serve as an unexpected oasis of exclusive tranquility immersed in the frenzy of the city centre.
Following are the some prices concerning the room rates of the Pearl Continental. CLIENT CATEGORY Commercial Clients Corporate Clients Preferred Clients CHARGES Rs. 5200- Rs. 6000 Rs. 4000- Rs. 4600 Rs. 4000
TARIFFS:
ROOM TYPE CHARGES
Single Twin or Double Standard Suite Executive Suite
Rs.7000 Rs. 8000 Rs. 12000 Rs. 15000
As we know that Pearl Continental has a very strong position in the hotel market. The success of this organization is due to its effective and efficient policies and its implementation. Few years ago, Pearl Continental had very low number of competitors and it had a Seller Market" which means that it set its own prices according to their profit margin and whoever could afford that price can avail their services. They did not bother about the consumer suggestion & concerning prices. This was due to the fact that Pearl Continental had a few competitors. Their marketing was based on Margin Strategy i.e. they keep a great profit margin in their prices which reduces the volume of their customers. They did not believe on volume strategy.
MARKETING STRATEGIES
This concept includes: Strategic Planning Organizations Mission Marketing Process Market Segmentation Market Positioning
STRATEGIC PLANNING:
The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities.
It relies on developing a clear mission supporting objectives, a sound business portfolio, and coordinated functional strategies. As we know that Pearl Continental has a strong image among five star hotels and has an established name in the hotel industry. Pearl Continental has an effective strategic planning at its centralized and decentralized levels. It has defined its goals and objectives at every level and tries to compete with the changing marketing opportunities.
The strategic planning of the hotel is turned into detailed supporting objectives that guide the whole hotel. Each separate division of the hotel decides what portfolio of businesses and services is best for the hotel and how much support to give to each separate division. Each separate division and service rate must develop detailed marketing and other departmental plans that support the wide plan of the hotel. The effective strategic planning originates: Customer Satisfaction Innovation Variation of Services Provision of Peaceful & Attractive Environment
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Due to this strong strategic planning, Pearl Continental has achieved a great name & image in the hotel industry. The planning and control officer of the hotel involves in all type of strategic planning and looking at what has happened in the past and forecasting what is likely to happen in the future: To the Hotel To its Competitors To the Market
The hotel has best strategic planning which involves the hotel's performance and of conditions in the market place.
Among all these conditions involves the needs and wants of consumers and the activities of competitors to satisfy them.
Forecasting:
Forecasting phase is the important aspect of the strategic planning process in this hotel. Forecasting of the hotel depends on all the future conditions provided by the hotel. Goals are very important for every organization.
Goal setting:
The next step of strategic planning process is the goal setting. This is no easy task. The manager of the hotel must select from a large number of alternatives and conflicting goals those will most effectively guide the hotel's effort. The marketing concept suggests that the overall goal of a hotel should be to satisfy consumer needs at a profit. The hotel involves issues of organization and scheduling for the implementation of the strategic planning. All the managers in the hotel are decision makers. They must implemental all the steps of planning.
THE MARKETING PROCESS:

The marketing process influences the organization marketing strategy. There are four steps in the marketing process: Analyzing Marketing Opportunities
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Selecting Target Market Developing the Marketing mix Managing the market effort
Analyzing the Marketing Opportunities:

In the marketing process the first step is to analyze the long-run opportunities in the market for improving its performance as business division. Pearl Continental keeps its view on all the opportunities of market. This analysis is very necessary for providing better services to their customers.
Selecting Target Markets:

For selecting targets markets, marketing management faces two major types of problems. How to select a specific market or markets How to approach that market
The selection of the organization's target market and the creation and maintenance of a marketing mix that satisfies the market's needs for a specific service is not an easy task. Pearl Continental sometimes defines the total market for a particular service as its target market. When hotel select its target market for food and beverage, the whole market like children, young, old are involved in it. When this hotel taking target marketing to the extreme, it might choose to treat every customer as an individual market segments. P.C also targets the corporate clients of multinational organization. Like PIA, Nestle, Service Industries, Packages, ICI, Kohinoor Group etc.
Developing the Marketing Mix

The marketing mix consists of everything; the firm can do to influence the demand for its products. The many possibilities can be collected into four groups of variables knows as the four Ps: Product/ service, price, Place and promotion. Pearl Continental developed a very effective marketing mix strategy for its hotel.
Managing the Marketing Effort

Marketing effort is the last step in the marketing process. This process involves four marketing management functions-analysis, planning, implementation and control. Pearl Continental works according to all these activities. This hotel first develops overall strategic plans. Then through implementation, the hotel turns the strategic and marketing
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plans into actions that will achieve the hotel objectives. The target audience who work inside or outside the hotel implements these plans.
MARKET SEGMENTATION:
The Market segmentation is: The process of dividing a large market into smaller segments of consumers or organizations that is similar in characteristics, behavior, wants or needs.
Each of these marketing segments can then be targeted using variations of the marketing mix. Market segmentation divides the distinct group of buyers with different needs. In market segmentation each individual has different need for different things. Pearl Continental does not see just one big market for its hotel. Yet everyone has to come here, but hotel
Management knows that not everyone has same need in its hotel. Some people come here for attending meeting they are the regular corporate client of the hotel and are the regular Customers, some as tourists, some people come here for attending functions, and some spend their leisure time here. So when different people come in this hotel, they have different needs with similar characteristics. So the hotel divides its whole target market into different segments.
SEGMENTATION IN CONSUMER MARKETS

There is no single way to segment a market. A marketer has to try different segmentation variables, along and in combination, to find the best way to view the market structure. Consumer market is divided into different specific variables. This segmentation includes different variables. These include: Geographic Demographic Psychograph Behavioral Variables
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Geographic Segmentation
When marketers define their segments according to where they will market they are using geographic segmentation. With geographic segmentation you can identify one or more countries, regions, states, cities, and communities even individual blocks, to divide the consumer market into meaningful subsets. Pearl Continental divides its total market according to geographic segmentation. Pearl Continental has its outlays in different cities of the country. Hence according to geographic segmentation in each outlay services are different. People have different needs in different regions. This hotel emphasizes the right services in the right geographical area at the right time.
Demographic Segmentation
Demographic segmentation consists of dividing the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race and nationality. Demographic factors are the most popular bases for segmenting consumer groups. One reason is that wants and usage rates are different according to the different demographic factors. For each demographic variable service is different Pearl Continental also dividing its market according to the demographic segmentation. In this hotel, services differ, according to the age, sex, race, religion, marital status etc. People belong to different age group has different needs. Services of the hotel differ according to the gender differentiation. Similarly all other variables are also very important. Many services can be naturally and realistically targeted for segments define by different demographic variables.
Psychographic Segmentation
Psychographic segmentation divides buyers into different groups based on social class, lifestyles, activities, opinions, beliefs and personality characteristics. People in the same demographic group can have a very different Psychographic group. A Psychographic dimension can be used by itself to segment a market, or it can be combined with other types of segmentation variables. In Pearl Continental Psychographic segmentation is very necessary. Social class is one of the basic characteristics of Psychographic segmentation. In this hotel many services belong to specific social class.
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Example
For example Pearl Continental offers "The Club" facility, provided in business centre. This facility is availed only by the business class. Hotel also provides different facilities according to the lifestyle of the people. Hotel Provide "Dumpukht" restaurant according to the Royal Mughal style. So people with this lifestyle avail this service of the hotel. Different people have different images about the services provided by hotel. Hence Psychographic segmentation is very necessary in consumer market.
Behavioral Segmentation
When marketers use people's behavior toward service to segment the market, they are practicing behavioral segmentation. Behavioral variables include product / service usage, consumer needs for certain benefits, price sensitivity, brand loyalty and different other characteristics. All of the above behavioral issues are applied in Pearl Continental. Most of the consumers are loyal and sensitive about their hotel. Hence we see that Pearl Continental divide its consumer market into different segments according to the geographic, demographic, psychographic and behavioral variables.
Selecting Market Segments

An organization can adopt one of three market coverage strategies. These strategies are: Undifferentiated Marketing Differentiated Marketing Concentrated Marketing
Undifferentiated Marketing
At one extreme is undifferentiated marketing in which the organization offer only one service/product. In undifferentiated marketing strategy, a firm might decide to ignore market segment differences and go after the whole market with one offer. The offer will focus on what is common in the needs of consumers rather than on what is different.
Differentiated Marketing
In the differentiated marketing, companies offers many services or service variations aimed at specific market segments, using various marketing mixes. These organizations are still attempting to satisfy a large proportion of the total market, but instead of doing it with one service offered one way, they market a wide variety of services designed to appeal to well defined subgroups of the whole.

Concentrated Marketing:
Concentrated marketing targets a single market segment with a single product/service or climate line of products/services.
There are two basic reasons that organization chooses this strategy either the structure of the market makes the other approaches impractical, Or the organization does not have the resources to pursue the other strategies. Among all these three target market options Pearl Continental one of the largest hotel to adopt Differentiated Marketing. As we see that in differentiated marketing strategy a firm decides to target several market segments and designs separate offer for each. This is a true case in Pearl Continental hotel. Because this hotel provides several market segments for their target consumers. This hotel provides many services like restaurants, banquet and conference halls, sports club, shopping Mall, swimming, business centre etc. Each service in this hotel has its own promotional program designed for its own market. The hotel is still attempting to satisfy a large proportion of the total market.
MARKET POSITIONING:
Market positioning is arranging for a service to occupy a clear, distinctive and desirable place in the minds of target consumers relative to competing services. In this way consumers on important attributes define the services. The management of Pearl Continental plans positions that distinguish their services from competitor's services. The hotel compares its services to those of various competitors and concludes that they provide maximum satisfaction to their consumers. To make great position in the hotel industry, the hotel first identifies possible competitive advantages about its services. To gain this competitive advantage, the hotel must offer greater value to choose target segments, either by charging lower prices than competitors do or by offering more benefits to justify prices. Once this hotel has chosen a desired position, it must take strong steps to deliver and communicate that position to target consumers.
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Positioning Strategies
Marketers can follow several, positioning strategies. These positioning strategies against a competitor are:
Product/Service Attributes Usage Occasions Users
Product/Service Attributes
In this positioning strategy organization can position their services on specific attributes. There are certain specific attributes in each service. With the help of this positioning Pearl Continental has achieved a strong position in the hotel industry.
Usage occasions
Usage occasions are very important to make strong position in any field. In Pearl Continental usage occasions are very important. The hotel can be positioned according to these usage occasions. The hotel offered different packages indifferent occasions and in different seasons.
Users
It is another approach to position the service for certain classes. This hotel has improved its position by providing different services to different users. The hotel has also made its position directly against its competitor. This hotel uses a combination of all these positioning strategies.
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PART 6 FINANCIAL ANALYSIS OF PC
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INTRODUCTION:
Pearl Continental Hotels, a chain owned and operated by Pakistan Services Limited (the Company) sets the international standards for quality hotel accommodation in South Asia. The Company manages 6 luxury hotels at Karachi, Lahore, Rawalpindi, Peshawar, Bhurban and Muzaffarabad; comprising 1,480 rooms with registered office in Islamabad, Pakistan. It is the responsibility of the Companys management to establish and maintain a system of internal control, and prepare and present the above said statements in conformity with the approved accounting standards and the requirements of the Companies Ordinance, 1984. Pearl Continental Hotels, conducts audit in accordance with auditing standards as applicable in Pakistan. These standards require that whatever it plans and perform the audit to obtain reasonable assurance about whether the statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in statements. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the statements. Management conducts financial analysis for the purpose of internal control and to better provide what capital suppliers seek in financial conditions and performance from the firm. Management needs to undertake the financial analysis in order to plan and control effectively.
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Performance at a Glance
Pearl Continental Hotel Performance at a glance (Rupees 000) As at March 31, 2012
2012 Sales and Services net Gross Profit Profit before taxation Profit after taxation Earnings Per Share (Rupees) 4,084,341 1,721,675 852,465 600,233 18.45 2011 3,736,522 1,517,014 756,982 535,635 16.47
INTERPRETATION OF INCREASE IN REVENUE:

Rooms Revenue The average room-occupancy during the period under report ascended to 56 percent from 53 percent of that of the corresponding period of the preceding year. The Average Daily Room Rate (ADR) also marked improvement from Rs.7, 471 to Rs.7, 552 when compared to the corresponding period of year proceeding immediately. Due to these favorable features rooms revenue (exclusive of GST) was recorded at Rs.1, 684 million as against Rs.1, 571 million (exclusive of GST) of the comparative period of last year, showing a growth of Rs.113 million
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Food & Beverage Revenue During the period under review, Food & Beverage Sales (exclusive of GST) contributed a major portion (54 percent) of the total revenue. F&B revenue were recorded at Rs.2, 191 million and registered an increase of Rs.223 million as against that of Rs.1, 968 million during the comparative period of last year. The increase in revenue from this segment reflects nearly 11 percent growth.
Other Related Services, Shop License Fees & Tour Division Performance of these minor operating segments registered 6 percent growth by adding Rs.12 million to the revenues. Revenue (exclusive of GST) from these segments for the period under review was recorded at Rs.209 million as compared to Rs.197 million of the corresponding period of last year.
Consolidated Results:
The total revenue based on the consolidated financial information for the nine months period under report stood at Rs.4, 157 million against Rs.3, 809 million that of the corresponding period of last year, reflecting increase of Rs.348 million which represents a growth of 9 percent. Profit before tax achieved is Rs.894 million in comparison with Rs.691 million that of corresponding period of last year. Profit after tax for the period under report was recorded at Rs.637 million as against Rs.464 million of the comparative period.
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Financial Analysis
It is often useful to express balance sheet and income statement items as percentages. For this common size analysis and index analysis are extremely helpful in comparing firms whose data differ significantly in size because every item on the financial statements gets placed on a relative, or standardized, basis. These two analyses are as follows: Horizontal Analysis Vertical Analysis
HORIZONTAL ANALYSIS
Horizontal common size analysis is also called Year to Year analysis in which we compare each amount with a base amount for a selected base year. An analysis of percentage financial statements where all balance sheet or income statement figures for a base year equal 100.0 (percent) and subsequent financial items are expressed as percentages of their values in Base year. This analysis is also called Index Analysis.
VERTICAL COMMON SIZE ANALYSIS

It is the analysis of financial statements, where all balance sheet items are divided by total assets and all income statement items are divided by net sales or revenues. The balance sheet and profit and loss account is given in the appendix section.
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HORIZONTAL ANALYSIS OF BALANCE SHEET Balance sheet (Rupees 000) (Percentages)

As at March 31, 2012 2011 2012
Assets
Non-Current Assets Property, Plant and Equipment Advance for Capital Expenditure Long term Investment Long term Deposits Advance for Equity Investment Current Assets Stores, spare parts and loose tools Stock in trade - food and beverages Trade debts Advances Trade deposits and prepayments Interest accrued Other receivables Other financial assets Cash and bank balances
100 100 100 100 100
101.83 121.74 107.60 100 232
100
124.41
100
132.20
100 100 100
156.31 107.77 185.35
100 100 100 100 100
139.59 139.86 107.04 86.45 102.88
Total Assets
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Liabilities
Non-Current Liabilities Long term financing secured Long term deposits Deferred liabilities Current Liabilities Trade and other payables Mark up accrued Short secured Current portion of long term financing Provision for taxation 100 149.22 100 439.81 term borrowings 100 100 100 106.06 112.63 38.95 100 100 100 128.33 99.01 103.76
Equity Share capital and Reserves

Authorized share capital 50,000,000 (30 June 2011: 50,000,000) ordinary shares of Rs. 10 each. 100 100
Issued, subscribed and paid up share capital Reserves
100
100
100
100
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HORIZONTAL ANALYSIS
HIGHLIGHTS
Assets
Cash is the most liquid asset .It has increased to 86.4% in the year 2012 as compared to the year 2011 .It indicates a favorable trend. Fixed assets were increased with highest percentage by 101.83 % in 2012. The increase was seen in deposits with 100% in 2012 that makes company more financially stable in future. Currents assets have increased in current year. It shows persistence upward movement.
Liabilities
Deposits of the company are increasing .This indicates that company is
developing rapidly and it has a strong financial position Current liabilities in the year 2012 have remained almost constant as compared to prior years. This is due to decrease in long term finances.
Owners Equity
The total equity includes the reserves, as well as the authorized capital, share capital & issued capital. The total amount has remained the same in 2012 as the share capital has remained the same for both years.
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PROFIT AND LOSS ACCOUNT
2011 Sales and Service net Cost of sales and services Gross profit Administrative expenses Finance cost Other operating income Profit before taxation 100 100 100 100 100 100 100
2012 109.30 106.44
113.49 117.08 107.46 111.47 112.61
Taxation
100
113.95
Profit for the period
100
112.06
Earnings per Share
16.47
18.45
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HORIZONTAL ANALYSIS
HIGHLIGHTS
Sales have increased sharply with 109.30% rapidly in 2012 which is a good sign for company. After paying higher taxes in 2012 comparatively in 2011, it is still earning handsome amount of profits after taxation which is a very good sign. Substantial increase in administrative expenses i.e. 117 % in year 2012 followed by a substantial decrease in 2011. Profits have increased rapidly in 2012 which is very encouraging for the company. It shows that company is operating efficiently and is more concern about its income, try to curtailing its expenses in order to increase its profit.
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PEARL CONTINENTAL HOTEL LAHORE Vertical Analysis of Balance Sheet

Balance sheet (Rupees 000) Assets
Non-Current Assets Property, Plant and Equipment Advance for Capital Expenditure Long term Investment Long term Deposits Advance for Equity Investment Current Assets Stores, spare parts and loose tools Stock in trade - food and beverages Trade debts Advances Trade deposits and prepayments Interest accrued Other receivables Other financial assets Noncurrent assets held for sale Cash and bank balances Total Assets 0.188 0.203 1.74 0.13 0.29 100 0.255 0.276 1.81 0.21 0.24 100 1.217 2.300 0.141 1.850 2.40 0.255 0.205 0.263 83.90 2.97 4.66 0.051 0.155 83.04 3.51 4.87 0.04 0.351 As at March 31, 2012 2011 (%) 2012(%)
0.328
0.397
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Liabilities
Non-Current Liabilities Long term financing - secured Long term deposits Deferred liabilities Current Liabilities Trade and other payables Mark up accrued Short secured Current portion of long term financing Provision for taxation 0.18 0.26 0.13 0.58 term borrowings 5.06 0.12 1.48 5.22 0.13 0.56 1.90 0.19 1.39 2.37 0.18 1.40

Authorized share capital 50,000,000 (30 June 2011: 50,000,000) ordinary shares of Rs. 10 each. 1.90 1.85
Issued, subscribed and paid up share capital Reserves
1.24
1.20
7.13
6.93
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Vertical Analysis of Balance Sheet

HIGHLIGHTS
In order to evaluate the financial position of the company, horizontal analysis of PC balance sheet was made keeping total assets as base.
Long term investment is increasing in the year 2012 by 4.87% as compared to the previous year which indicates a favorable trend. Current Assets are increasing collectively in the year 2012 as compared to the previous year. Advances have increased in the year 2012 which is considered favorable. Long term deposits have decreased in the year 2012. Mark up Accrued has increased in the year 2012. Share Capital has shown a decrease in the year 2012 due to decrease in reserves.
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Vertical Analysis
PROFIT AND LOSS ACCOUNT
2011 Sales and Service net Cost of sales and services Gross profit Administrative expenses Finance cost Other operating income Profit before taxation 3,736,522 59.4 40.59 21.10 3.54 4.71 20.25
2012 4,084,341 57.84 42.15 22.61 3.48 4.81 20.87
Taxation
5.92
6.17
14.33
14.69
Earnings per Share
16.47
18.45
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VERTICAL ANALYSIS
In order to evaluate the profitability of the company, vertical common size analysis of PC Profit and Loss Account was made keeping net sales as base.
HIGHLIGHTS
Gross profit has increased to 42.15% due to decrease in the cost of good sales. Basically vertical common size analysis highlights the relationship between Revenue, cost and expenses. All expenses including Distribution expenses, Administrative expenses and other operating expenses have also increased because company is bearing cost due to inflationary pressure in country. Profit before tax rose to 20.87%, followed by significant decrease in 2009. Profit after tax shows a slightly increasing effect which is encouraging for the company. It rose from 14.33 % in 2011 to 14.69% in 2012. This shows that company is operating efficiently and it has a high growth rate.
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FINANCIAL ANALYSIS RATIOS

Ratio analysis involves the method of calculating and interpreting financial ratios to assess the organizations performance. Financial ratios can be divided into these basic categories. Liquidity Activity Debt Profitability
LIQUIDITY RATIOS
Liquidity ratios measure the ability of a company to meet its short-term financial obligations in a timely manner.
Liquidity of a firm is measured by its ability to satisfy its short term obligations as they come due. Liquidity refers to the solvency of firms overall financial position-the ease with which it can pay off its bills. Because a common precursor to financial distress and bankruptcy is low or declining liquidity, these ratios can provide early signs of cash flow problems and business failure. The firms creditors are particularly interested in short term liquidity of firm. The basic measure of liquidity ratios are: Current ratio Quick (acid test) ratio
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CURRENT RATIO
It Measure the firms ability to meet its short term obligations: A measure of liquidity is calculated by dividing the firms current assets by current liabilities. It is expressed as follows:
Formula:
Current Ratio= Current assets / Current Liabilities
Calculation:
2012 2011
=2,152,395 /1,832,143
= 1.17%
=1,771,350/ 1,832,175 = 0.96%
Interpretation:
For PC the current ratio is increasing from 0.96% at the end of 2011 to 1.17% at end of the year 2012. The upward movement in the current ratio is due to decrease in current liabilities. This shows that the company has 1.17 of current assets to cover current liabilities as they come due. As it should be 2:1 i.e. for covering one liability the firm has two assets. When current liabilities are increasing current ratio is low. This indicates a negative trend considering liquidity. Lower the ratio less liquid the company appears to be.
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QUICK ACID TEST RATIO

Quick ratio provides a better measure of firms overall liquidity. It relates the most liquid assets to current liabilities. It is a measure of liquidity calculated by dividing the firms current assets minus inventory by its current liabilities. Higher the ratio more liquid the firm considered to be. It is calculated as follows:
Formula:
Quick Ratio = Current assets Inventory Current liabilities
Calculation:
2012 2011
= (2,152,395-178321) / 1,832,143 = = (1,771,350 139954) / 1,832,175 =
1.07% 0.89%
Interpretation
It should ideally be 1:1 and a quick ratio of 1 or greater is recommended it means that even after deducting the less liquid assets the firm has enough of assets to cover the liabilities. The analysis shows a increasing rate of Quick ratio. The Analysis revealed that quick ratio shows a increasing trend as it increases from 0.89 in 2011 to 1.07 in 2012. Increase in quick ratio is favorable for the company.
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WORKING CAPITAL:
Working capital compares current assets to current liabilities, and serves as the liquid reserve available to satisfy contingencies and uncertainties.
Formula:
Net working capital = Current assets Current liabilities
Calculation:
2012 2011
= 2,152,395- 1,832,143 =1,771,350 - 1,832,175
= =
320252 % -60825 %
Interpretation:
The working capital of PC has increased in the year 2012 which shows that its assets are more than its liabilities. It is a good indicator of companys liquidity
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PEARL CONTINENTAL HOTEL LAHORE ACTIVITY RATIOS

It measures the effectiveness of a companys management of its assets. Activity ratio measures the speed with which various accounts are converted into sales or cash-inflows or outflows. If a business does not use its assets effectively, investors in the business would rather take their money and place it somewhere else. In order for the assets to be used effectively, the business needs a high turnover. Unless the business continues to generate high turnover, assets will be idle as it is impossible to buy and sell fixed assets continuously as turnover changes. Activity ratios are therefore used to assess how active various assets are in the business. Activity ratios include: Inventory Turnover Ratio Fixed Asset Turnover Ratio Total Asset Turnover Ratio
INVENTORY TURNOVER
It Measures the activity or liquidity of a firms inventory.
Formula:
Inventory Turnover = Cost of goods sold / Inventory
Calculation:
2012 2011 = 2,362,666/178321 = 2,219,508 /139954 = 13.24:1 = 15.85:1
Interpretation
The ratios seem to be decreasing as the ratio for 2012 is the less showing the fact that the inventory takes more time to be converted into sales.
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AGE OF INVENTORY
Average number of days sales in inventory
Formula:
Average age of inventory = 360 / Inventory Turnover
Calculation:
2012 2011
= 360/ 13.24
= 27 days
= 360 / 15.85 = 22 days
FIXED ASSET TURNOVER

It is found by dividing sales by net fixed assets
Formula:
Fixed Asset Turnover = Sales/Net fixed assets
Calculation:
2012 2011 = 4,084,341 / 22,394,360 = 0.18% = 3,736,522/ 21,990,412 = 0.16%
Interpretation
Fixed asset turnover shows that ratio has increased in 2012 as compared to 2011.
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TOTAL ASSET TURNOVER

Indicates the efficiency with which the firm uses its assets to generate sales.
Formula:
Total Asset Turnover = Sale/ Total Assets
Calculation:
2012 2011 = 4,084,341/ 26,965,425 = 0.15:1 = 3,736,522/ 26,208,842 = 0.14 :1
Interpretation
Total asset turnover has increased in 2012 showing the fact that less emphasis is made on current asset.
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PEARL CONTINENTAL HOTEL LAHORE LONG TERM DEBT PAYING ABILITY

DEBT RATIOS
Debt ratio indicates firms long term debt paying ability .It indicates percentage of assets financed by the Creditors.
Higher the ratio, the greater the amount of other peoples money being used in an attempt to generate profits. It indicates the amount of other peoples money being used to generate profits. The ratio is calculated as follows:
Formula:
Debt Ratio = Total Liabilities Total Assets
Calculation:
2012 2011 = 2923673/ 26,965,425 = 0.10%
= 2748278 / 26,208,842 = 0.10%
Interpretation
This ratio indicates that at the end of the year 2012 the debt ratio for PC is 0.10 showing the percentage that how many of the assets have been financed through the long term debts and liabilities. Higher the ratio, higher the firms degree of indebtness. Increased indebtedness cause deterioration in Companys ability to pay debt adequately.
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DEBT EQUITY RATIO

It is another computation that determines the entitys long term debt paying ability. This ratio compares the total liabilities with total shareholders equity. From the perspective of long term debt paying ability, low the ratio is, better the firms debt position.
Formula:
Debt/Equity Ratio = Total Liabilities Shareholders Equity
Calculation:
2012 2011 = 2923673/ 4053027 = = 0.72%
2748278 / 3452794 = 0.79%
Interpretation
This is a very critical ratio that shows the long-term solvency position of an organization. PC debt/equity ratio is less in 2012 as compared to 2011 .Lower the ratio better for the lenders.
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TIME INTEREST EARNED (LONG TERM PERSPECTIVE)

It indicates firm long term debt paying ability from Income statement point of view. If the ratio is adequate little danger exist that firm will not be able to meet its interest obligations. A relatively high stable coverage of interest over the years indicates a good record .Low fluctuating coverage from the year to year indicate a poor record. It Measures the firm ability to make contractual interest payments, sometimes called the interest coverage ratio.
Formula:
Time Interest Earned = Earnings before tax Interest Expense
Calculation:
2012 2011
= 852,465/ 142,281 = 756,982/ 132,395
= 5.99% = 5.71%
Interpretation
This ratio indicates that Times Interest Earned ratio in the year 2012 is more as compared to prior years. This indicates a positive trend .PC is able to fulfill its interest obligations and it has a good margin of safety.
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PROFITABILITY RATIOS
It Measures the efficiency of a companys operations as percentage of earnings.
GROSS PROFIT MARGIN

Gross profit margin measures the percentage of revenue a firm earned after it has paid for its expenses. Gross Profit rate usually lies between 20% to 50% .High the gross profit margin, the better and lower the relative cost of merchandise sold. It is calculated as follows:
Formula:
Gross profit margin = Gross Profit/ Sales
Calculation:
2012 2011 = 1,721,675/4,084,341 = 42.1% 40%
= 1,517,014 /3,736,522 =
Interpretation
This ratio is very helpful in determining the relationship between gross profit and sales. Gross profit margin for PC has increased slightly in year 2012 i.e. 42% as compared to prior year. It means cost of goods sold has been decreased.
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OPERATING PROFIT MARIN

Operating profit is pure because it measures the profit earned on operations. It Measures the percentage of each sales dollar remaining after all costs and expenses other than interest.
Formula:
Operating profit Margin = EBIT Sales
Calculation:
2012 2011 = 852,465/ 4,084,341 = 756,982/ 3,736,522 = 20.8% = 20.2 %
Interpretation
Operating profit of PC has increased slightly. This increase is due to decrease in interest expense. This indicates a positive trend .It is very encouraging for the company .Hence PC has a strong financial position.
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NET PROFIT MARGIN (RETURN ON SALES)

It measures how profitable a companys sales are after all expenses including taxes and interest have been deducted.
Formula:
Net Margin Ratio = earnings after taxes / Net Sales
Calculation:
2012 2011
= 600233 /4,084,341 = 535635/ 3,736,522
= =
0.14 % 0.14%
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RETURN ON INVESTMENT (ASSETS)

The return on investment shows the average return earned by all the investors and stakeholders of the business. The net profit available to the share holders whereas mark up is paid to the creditors .Return on investment is a type of return on capital. It is a measure of firms ability to reward those who provide long-term funds and to attract the providers .It is computed as follows
Formula:
Return on investment =
Profit after Tax Total Assets
Calculation:
2012 2011 = = 600,233 / 26,965,425 535,635 / 26,208,842 = = 0.02 0.02
Interpretation
This ratio indicates the profit earned on the resources employed. The ratio has remained the same over the two years. It is not a bad indicator.
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RETURN ON EQUITY
This ratio relates the net profits to the amount of capital funds or equity that have been employed in making that profit.
Formula:
Return on equity =
Profit after Tax Shareholders Equity
Calculation:
2012 2011
= =
600,233 / 4053027 535,635 / 3452794
= =
15.8 % 15.5%
Interpretation
The above given ratios suggest that the profitability has increased in the year 2012 as compared to 2011 indicating relatively more profitable operations.
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SUMMARY OF FINANCIAL ANALYSIS OF PC
Pearl Continental Hotel Performance at a glance (Rupees 000)
As at March 31, 2012

2012 Sales and Services net Gross Profit Profit before taxation Profit after taxation Earnings Per Share (Rupees) 4,084,341 1,721,675 852,465 600,233 18.45 2011 3,736,522 1,517,014 756,982 535,635 16.47
The following conclusions can be drawn from the above table: EPS has increased considerably Profit after tax has shown an increase Gross Profit has increased
This increase in sales is due to: Increase in rooms revenue Increase in food and beverage revenue
The details of increased have been discussed above.
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SUMMARY OF FINANCIAL RATIOS

CURRENT RATIO:
For PC the current ratio has increased at end of the year 2012. The upward movement in the current ratio is due to decrease in current liabilities. This shows that the company has enough current assets to cover current liabilities as they come due.
QUICK ACID TEST RATIO

This ratio is similar to current ratio but it excludes inventory, which is generally the least liquid current asset. The Analysis revealed that quick ratio shows a increasing trend as it increases from 0.89 in 2011 to 1.07 in 2012. Increase in quick ratio is favourable for the company.
DEBT EQUITY RATIO:

Debt to Equity ratio tells us the amount of debt of the company against the shareholders equity. PC debt/equity ratio is less in 2012 as compared to 2011 .Lower the ratio better for the lenders.
TIME INTEREST EARNED RATIO:

This ratio indicates that Times Interest Earned ratio in the year 2012 is more as compared to prior years. This indicates a positive trend .PC is able to fulfill its interest obligations and it has a good margin of safety.
GROSS PROFIT MARGIN:

This ratio is very helpful in determining the relationship between gross profit and sales. Gross profit margin for PC has increased slightly in year 2012 i.e. 42% as compared to prior year. It means cost of goods sold has been decreased.
RETURN ON EQUITY:
This ratio suggests that the profitability has increased in the year 2012 as compared to 2011 indicating relatively more profitable operations.
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PART 7 TRAINING PROGRAMME
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I joined Pearl Continental Hotel Lahore on dated July 8, 2012 as an internee. I completed my internship program for two weeks in Training and Development which is a sub department of Human Resource and remaining period in the Human Resource Department.
ORIENTATION
On the very start of the internship, we received an orientation session by T&D Manager Mam. Aasma Naheed, which was about the Pearl Continental Hotel, its History, rules and regulations management hierarchy, the infrastructure of the whole hotel chain. There was a documentary film explaining all the aspects mentioned above and Ms. Aasma briefed about each topic in a very skilled manner. We are also been provided by an Employees Hand Book and some more helpful hints about to be followed during the internship period.
PROPERTY ROUND:
In the end, there was a property round in which we thoroughly visited the whole hotel building and its departments etc. while our guide (Ms. Aasma) kept briefing us about all the functions of different sectors and important places of the property. That was a quite tiresome session but overall that orientation was quite impressive.
TRAINING AND DEVELOPMENT DEPARTMENT

The T&D Team consisted of T&D Manager T&D Coordinator Ms. Aasma Naheed Mr. Umar Arshad Shah
TASKS
The Major Tasks I learnt and performed there are as follows:
REMINDERS AND FOLLOW UPS:

It is T&D duty to give reminders in the morning to every department for their coming classes or training classes according to the Monthly Training Calendar and then in the evening taking their feeds backs and follow ups as by taking their attendance sheets.
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TAKING CARE OF NOTICE BOARDS:
All the soft boards in the house are T&Ds responsibility. Keeping them up to date and collecting material about the monthly campaign was one of the tasks I learnt and performed.
ENTERING DATA IN AN ATTENDANCE FILES:

Keeping all the attendance files up to date and entering data in all on daily basis was also one of the duties I performed.
MAKING CALLS TO RECRUIT NEW INTERNEES:

Calling up the candidates for the interviews of internship and then making their joining letters was also an interesting task to do.
NEWS FLASH:
I also worked on the daily online magazine of PC that was named News Flash To gather the material for different sections of the magazine like Jokes, daily horoscope and theme of the month etc. and to modify its sections time by time were my responsibilities.
TRAINING CALENDAR:
One of the duties of mine was to prepare a monthly Training Calendar after getting training topics from all the departments. I have to prepare three sections of training calendars. T&D Sessions Departmental Training Sessions Daily Training Sessions
TYPES OF REPORTS:
Following are the reports are made in T&D department
Daily Training Report Monthly Training Report Orientation Report Departmental Training Report Internees Report
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Daily training report is subject to submit to the DHR on daily basis while other reports are submitted on monthly basis.
MAKING PHOTOCOPIES:
Making the photocopies of relevant document was also one of my duties in the hotel. I have to go to account office for making the photocopies of the documents specially letters and memos.
MAKING FLIP CHARTS:

Making flip charts regarding different trainings, announcement of events, and submission of nominations for cross exposure, skill trainers and departmental champions was also my duty at PC.
MAINTAINED THE FILES:

Maintained different documents in the relevant files was also my duties like Internes documents, Training attendance sheets, Memos, Occupancy documents etc.
GUIDING THE NEW INTERNEES:

One of my duties was to guide new internees to their relevant departments, how to get the uniform from Housekeeping department and helping them in making their time cards from the HR Office. I also take the new candidates to the relevant department heads for the interviews regarding the trainings and internships.
INTERNEES DATABASE:
During my internship I have prepared an internees database showing how many internees are currently working in a particular department and also showing their duration in department and institution of the internees.
EMPLOYEE OPINION SURVEY:

I have also participated in Employee Opinion Survey and it was a great experience for me to work in a survey of 1600 employees. I have learnt a lot while getting suggestions from middle and lower management employees and making the employee survey report showing the response of employees from each department and their participation in the survey.
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CAMPAIGNS:
During my internship I have worked in three campaigns
Dengue Fever Smile and Courtesy Calling Guests by their Names
For these campaigns I have to search material from the internet like (saying and quotations etc, making flip charts regarding the campaign and visits the departments with my boss for the application of campaign. Also visit the cafeteria for the quiz regarding the campaign and distribute the reward tickets to the employees.
TYPING AND EDITING:

I have also took part in typing and editing the important documents of the department like
Internees joining letter Internees certificates Letters to HOD Skill Trainers Certificates Skill Trainee Certificates PC Newsletter
ORIENTATION CHECKLIST:
During my internship I have participated in the preparation of new Orientation Checklist including two parts: Orientation Session Checklist Property Orientation Checklist
These checklists are signed by the candidate and it is submitted to HR department while one copy is kept in the records of Training and Development departments file.
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SAMPLE FORMS
Training Need Analysis Training Calendar Exit Interview Form Attendance Sheet Internship Application Form Exit Clearance Form
HUMAN RESOURCE DEPARTMENT

The HR Team consisted of: Director Human Resource Col. (R) Shahzad Rafique Malik HR Manager Maj (R) Zafar Iqbal Assistant HR Manager Mr. Aqeel Ahmed HR Officer Mr. Salamat Bhatti HR Officer Mr. Nafees Ahmed HR Coordinator Mr. Shahid Mahmood
During my internship I observed and learnt a lot of things. I had a great experience of working with highly professional and cooperative people that definitely are highly useful for my business knowledge as well as for my professional career. My major learning and duties there were as follows:
SUB DEPARTMENTS OF HUMAN RESOURCE

TIME OFFICE
Time Office may be called the gateway to enter a new world for the employees where they can think that their work can bring a better future for their thoughts and family. The main objective or work of the time office is to keep the attendance record of the employees of the organization. It is the basic need of the organization to calculate its own expenses as well as employees benefits. Time Office supervisor is responsible and reportable to Director Human Resource.
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Employees Cafeteria
All employees are provided food in their respective duty shifts. They are given one 30 minutes break for meal and two tea breaks of 15 minutes each. This food is available free of cost for all. Cafeteria Manager is responsible for all its operations and directly reports to Director Human Resource.
FUNCTIONS OF HUMAN RESOURCE DEPARTMENT:

Human Resource is the base of management. All the management decisions are made by Human Resource Department and then to announce to other department. For example all the procedures of hiring and firing employees are followed by there. All the increment decisions in salaries of the employees are decide here. Therefore it is very important for the Human Resource Department to motivate the employees in the right way, for this purpose many sort of benefits are offered to employees that includes: 1. Preparation and checking of pay rolls, and handling all its related issues. 2. Preparation of monthly reports i.e Group Life Insurance, Head Count Reports, Budgeted, Non- Budgeted, Replacement Summary, Hospitalization etc. 3. Processing of Hiring Approval forms, Police verifications and documentation forms to new hiring, 4. Completing the process of lying off, termination, etc 5. Processing of Provident Fund, Insurance, and confirmations forms, etc 6. Issuing of different certificates to employees i.e service certificate, etc.. 7. Conduct Interview for providing manpower to the departments. 8. Completion of all processes of hiring, i.e Human Resource Requisition, and personal files & Medical checkup forms, police verification forms, and uniform slips, Jobs Descriptions forms, etc 9. Distribution of daily mails. 10. Working for Employees welfare, allotting lockers, Uniforms, 11. Making Service Agreements, Appointment letters, Retirements of employees, EOBI Registrations, Social Security Registration forms, annual Increments and evaluation forms, etc 12. Preparing of Apprenticeships forms, and registrations,
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13. Selection of Employee of the month and the selected candidates Picture is pasted to the notice board to encourage him and others. 14. Honesty awards are also awarded to the deserving employees. 15. Same strategy is followed of the month. 16. As all the employees are always welcome to give their new ideas to improve productivity therefore the person who gave the best idea is appreciated and rewarded. 17. Every month an Employee birthday party is celebrated, in which all the employees having their birthdays in the month, all Head of Departments, DGM, and Gm are present. 18. A general Staff meeting is conducted with GM and General Associates, in which common problems facing by the employees are discussed with GM, Just to let them feel that they are also apart of hotel property. 19. Conveyance allowance is given to the relative employees. 20. Mobile allowance is given to sales and marketing department. 21. HRIS is extensively used for maintaining and updating employee relation records.
HUMAN RESOURCE PLANNING AND FORECASTING:

Human Resource planning and forecasting is depend on the functions to be held in the Pearl Continental Hotel Lahore. They forecast their every month schedule in advance to over look it with accordance to the happenings and with the consultation with finance department, as Human Resource can not plan any thing if they have no resource in Finance Department. This is all done under Human Resource department.
EMPLOYEES RECRUITMENT AND SELECTION: Internal Recruitment

In Pc hotel there are different ways for advertisement for employment. 1. Internal Jobs Posting 2. Advertisement trough Notice Board 3. Internal Promotions 4. Internal Transfers
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External Recruitment
1. CV Data Bank 2. News Papers Ads 3. Internet (Web) 4. Walk Ins. 5. Reference Screen out the candidates which are compatible, and then short listing is done. Interview is taken by HRM, Department Heads, and finally by GM. Selection of perfect employees Assessment of employee Training of the employee
TRAINING & DEVELOPMENT

TRAINING NEEDS ASSIGNMENT:
On the annual appraisal of every department, Department Heads recommend the job related training necessary for the future requirement of the specific jobs. In pc all this managed in very prcised meaner.
EMPLOYEE DEVELOPMENT:
Employee development is very important for the employee and the employer. The development of the employee is important for better performance. When the employees are trained and know how to deal with new technologies, it will be very helpful for the organization. PC management arranged many training workshops, seminars, corporate training develop the employees.
PERFORMANCE MANAGEMENT:
Setting performance standards and expectations:
Whenever a new employee comes in the organization he is surly not very perfect to work in the new atmosphere. So, for the new employees some performance standards and expectation are settled so that they are to work under that standards and expectation. In pc I see that there is a complete setup of required trainings for new in coming.
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Performance Appraisal:
I have a chance to discuss the performance appraisal system at Pearl Continental Hotel with HR manager Maj(R) Zafar Iqbal. He told me that performance appraisal is conducted on annual basis and there are three categories of performance appraisal at PC.
Performance appraisal of Executive Performance appraisal of Supervisors Performance appraisal of Rank and File
On the basis of Performance Appraisal following decisions can be made
Promotions Increments Transfers
How Performance Appraisal Report Is Written:

Performance report is based on the result on the sets standards and the performance given by the employee according to the standard given.
As the employee work same is like the sets standards he will be considered good. If he is below the standard he will be poor. And if he is more than the standards he will be excellent.
In performance describe the full details of weaknesses, qualities, strengths of an employee. And also motive the employee towards the promotions, and hard work. If training is necessary then provide the opportunity of training to that employee.
EMPLOYEES COMPENSATION AND BENEFITS:

Pearl Continental Hotel, Lahore provides some kind of benefits to its employees. That is as follows:
Leaves:
Sick Leave Causal Leave
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Earned Leave Compensatory leaves Maternity Leave (for Female Employees)
Free Meals Facility:

In Pearl Continental hotel Lahore, management provides free breakfast, lunch, tea, dinner and Supper to its employees on the duty. It is very beneficial to the employees.
Free Pick and Drops:

Pc management also provide free pick and drop facility to its female employees, which saves the time and rents of the employees and also provide the security. It is also very valuable for female employees.
Free Laundry Facility:

In Pearl continental Hotel, management gives free laundry for the uniform of the employees.
Provident Fund:
Pc management gives provident fund to its employees with full benefits when they retired or leave the company.
Gratuity Fund:
Pc management provides the benefits of the gratuity to its all unionized workers.
Life Insurance:
Pc confers life insurance facility to its employees.
PICIC Insurance:
Pc presents PICIC Insurance to its employees and their families (Spouse, children) in case of hospitalization.
Medical Facility:
Medical facility is given to employees and their families.
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In House Doctor:
They provide in House Doctor for the employees to give them at time recovery. House doctor and male nurse are available in the Dispensary.
Car & Fuel Allowance and Mobile Phone:

Pc gives Car, Mobile phone and fuel allowance to its managerial level.
Hajj Lucky Draws Packages:

Pc Management award to its employees free Hajj lucky draw packages.
Minority Draws:
Pc Management also compensate the Minority by gives them incentive through lucky draw.
Annual Employees Day Function:

Pc management arranged Annual Employees day function for their employees and their families.
Ladies Get together:

Pc management arranges ladies get together function for female employees.
Increments:
Pc management gives annual increment to its employees according to their performance and on merit basis.
COUNSELING:
Family Counseling:
Family counseling is counseling for employees where in they are suggested how 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 their jobs effectively and efficiently.
Pre- Retirement Counseling:

In pre- retirement counseling employees who are willing to work after retirement are given constructive guidance their second careers from the Pearl continental.
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ORGANIZATIONAL CAREER MANAGEMENT:
Employee Job Change in the Organization:
In Pearl continental Hotel, Lahore there are different ways to change jobs in the organization, which are described below.
Promotion:
Promotion in the Pearl Continental Hotel is given to the employees after their best work. When the employee is more than their expectation they give promotion, rewards to motivate them to work hard.
Transfer:
Transfer is giving to the Pearl Continental employees on the rotational job performance experience, and the employees eager. As 1 person is working hard at Lahore, and he is much experienced in his work then he can be transfer to the head office that is Islamabad as there they need a well need a well experienced and trained persons. There are two ways of transferring. 1. Transfer to other department in the same Property 2. Transfer to other properties of the company within the group.
Demotion:
Demotion is given to those employees who are below than standards and expectations, who are not working well in the hotel, and in the given particular tasks. So for those types of employees they demote them to the low level rank previous.
Separation: Layoff:
In Pearl Continental hotel the layoff is done when the downsizing is needed. When the downsizing is done the employees are short listed and in that process some of the employees separate from the hotel.
Termination:
Termination is done when the employee go against the code of conducts and ethics of the Pearl Continental Hotel, Lahore. i.e Dishonesty, embezzlement, Sex harassment, long absent, etc
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Resignation:
Resignation in the Pearl Continental is done when the employees is not interested to work anymore with them. There are many reasons of the resign. Mostly female employees resigned after marriage. Another reason is that employee has better opportunity. Some employees resign for their completion of education their education.
Retirement:
Retirement is done after the completing the total period of the job. The male employees retired at the age of 60 years. And female employees retired on the reaching of the age of 55 years. A separation register is maintained in which enter All the employees who was retired, terminated, resigned, or laid off.
Labour Management Relation:

Labour management relation is very important in any organization. If the labour management have good realtion with each other they better. In the Pearl Continental Hotel, Lahore the labour management relationship is good. When the management cooperates with the labour and fulfills his all requirements then the labour work with hard and with more potential as they are happy with management. And when workers in the hotel is doing its best and do all the work by heart the management is happy from the person and then the management gives him many facilities and advantages. In PC workers has its own Union, CBA. CBA is the repetitive of the all workers, and deals all financial and other matters with the management.
Job Descriptions:
I have also participated in the formation of new Job Descriptions of all the employees of the hotel. With the help of old job description and getting the lists of duties and responsibilities of the relevant employees. I with my boss prepared the job descriptions of the HR employees. It was a great experience for me to know how job descriptions are made.
Helping Candidates:
I have also involved in helping the candidates to fill their forms and to tell them how to apply for the job and what the procedure of hiring the candidates is. I have also filling the forms by myself of those candidates who are not able to write even their names. Since
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Wednesday and Thursday were set for Walk in Interviews thats why to handle all candidates for interviews with MHR and relevant Department Head was my responsibility.
File Work:
I have also worked in Admin Office side by side with HR and mostly done a file work like I have prepared a new file of the employees who recently resigned or terminated by the management. And prepared list in a register showing their Name, Designation, Clock no, Duration and reason for left thing organization. I have also maintained a file of CVs for the vacant post. It was also my duty to place the documents of all the interviewees after their interviews in their relevant departments files.
Helping New Employees:

It was my duty to take the new employees with my boss for the final interview with the General Manager. It was also my duty to take the new employees to the training department for the Orientation session.
Making Photocopies:
Making the photocopies of relevant document was also one of my duties in the hotel. I have to go to account office for making the photocopies of the documents specially CVs, letter and memos.
Mentioning Interviewee Status:

During the interviews of the candidates with the Human Resource Manager, it was my duty to mention the status of every candidate in the register of MHR after the remarks of Human Resource Manager which helps the HR department to search the status of every interviewee. After the interview session I have to enter the data of the interviewees in the HR Database Excel file, which include the candidates Name, applied for the post, his file status, mobile no. and qualification.
Handling CVs:
It was my very first job there to collect the CVs of the candidates and put them safe in the relevant folder under the relevant and desired section. The CVs are received through emails or by mails or by walk-in interviews and some CVs are comes through references.
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Observing Interviews:
Being a trainee of Human Resource department I closely experienced the daily walk-ininterviews for different positions during recruiting stage. And observed Human Resource Manager how he chooses the best ones for final selection. It helped me a lot in the sense that I got the idea how such interviews are conducted and how the candidates are rated at back end.
Prepare Interviewee File:

I prepared the files of the selected candidates who qualified with the related Department Heads and HR Team.
Standard Maintaining activities in relation with mission statement

To achieve the prescribed international and guest expectations of five star standards following activities are practiced
Facilities and Services

"Whatever our interest we are never far from it"
Building an image is always easier than maintaining it. Pearl Continental has a global reputation of being one of the finest hotels in the world. They take great care to up holds the integrity of that statement, with each new establishment. Their hotels always have more than the standard requirement for a five star hotel. They implement regular exterior, elegant decor, subtleness of taste etc. The beauty of Pearl Continental begins with the exterior of the premises, when we enter the hotel lobby; the floor is made of glazed brown marble and well carpeted. Beside of huge lobby is a reception counter. A black glass is besides the reception, while in front of it a corridor like hell street can be seen, where some shops, offices of Airlines (Singapore, Thai, Japan) bank, beauty parlor are there, surrounded by natural plants, where we find a highly trained staff with their smiling and welcoming faces.
A highly professional secretarial staff is available for secretarial services for the guests typing and other official works. International fax and telex with modern are also available. To park the guests cars, a special valet staff is hired, giving their welcoming attitude and pleasant appearance.
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Guest Services
Cradle of Pearl Continental is open for National and International tourists at any convenient time. Well-dressed and smiling faces staff always welcome heartedly and treated and accommodate honorably. The maxims of this hotel express in form of good management and behave well. They can proudly say that there is one thing that other hotels hare and we don't. Small rooms the only kinds they have are large, larger and largest. All furnished with impeccable taste and with one objective in mind, that being the comfort or our guests. No wonder some people make their rooms their permanent home.
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ANALYSIS OF PEARL CONTINENTAL HOTEL
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PEST ANALYSIS
POLITICAL
Political instability in Pakistan can lead to changes in laws and policies which can be in favor or against the hotel industry sector.
ECONOMIC
Economy of Pakistan is facing issues about employment, inflation, illiteracy, which hinders business growth.
SOCIAL
Cultural issues can be there but still as there are a number of multinational companies there, therefore, cultural issues are not prominent.
TECHNOLOGY
People are highly skilled and PC can introduce new technology to increase competencies.
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PEARL CONTINENTAL HOTEL LAHORE SWOT ANALYSIS:

Each Hotel has its own SWOT based on their location, season etc. As for the SWOT Analysis of PC Lahore is concerned SWOT Analysis is basically done to find out that do they have sufficient resources to cover their weakness and still achieve their objectives?
STRENGTHS (Internal Pros or positive points of an organization)

Quality Product PC is the symbol of quality with respect to its offering i.e.; restaurants Excellent Services PC aims at providing excellent services to all type of customer Competitive Advantage PC has an edge over its competitors i.e.; it provides executive club services. Financial Strength PC is financially strong hotel because in the current economic conditions it is maintaining its position because of financial strength. Favourable Reputation/Image PC has captured the favourable image in the mind of the customers. Creative/Innovative After every 6 month, PC launches new offering which is very stylish and eye catching. Organized Management PCs management is highly qualified, competent and organized. Market Research PC has its own research department, which scans the customers need and their responses to the different products/services Services with Latest Technology PC has its control room in which the rooms and halls temperature is controlled and maintained according to the environment and customers requirement.
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Other pros of PC are: One of the major strength of PC is that PC is in the hotel market for the past 36 years. Have most experience employees available at suitable job, which have proven their loyalty with PC. PC as compared to its other competitors shares the advantage of having 150+ luxury rooms with big bathrooms which no hotel in Pakistan is able to accomplish. PC carries out loyalty program such as keep track of its customers. Keep history record of customers who avail the room facilities. Records like if a customer prefer something different in his/her room as compared to their customers, that is kept in record and when the same customer returns after sometime, his requirement made in history is available which then turns into customers satisfaction as he does not need to specify his requirements all over again. Major strength in identifying the name of PC as a continental hotel has been played by PC Bhurban. PC bares the great advantages on the performances on maintaining good health clubs, swimming pools, squash courts, tennis courts and all other sports activities. It also maintains excellence in good quality food restaurants.
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WEAKNESSES: (Internal cons or negative points of an organization)
High Prices PC charges very high prices for all of its services especially room facility and most of the people in Pakistan cant afford it. Lack of co-ordination There is much lack of co-ordination among its workers Low Incentives PC offers low incentives to its customers, so fails to attract the middle class.
Other weaknesses of PC are: As fashion changes need, demand and idea also changes. As PC being an old hotel in history bares a difficult weakness, as old customers do not prefer to visit the same hotel over and over. They prefer to experience something new.
The other weakness of PC lies in its telephone system, which is again an old system. As Sheraton enjoys the great advantage of having latest technology that is its Tele communication system.
OPPORTUNITIES (External pros or plus points of an organization)

Expansion of Product Line PC can expand their product line by offering other facilities like home delivery of food etc; Enter the New Market PC can enter the new market by opening its branches in cities like Multan, Faisalabad etc; Attract the Tourists PC can attract a large number of tourists by advertising in international magazines and journals.
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Diversify to Broad Risk PC should diversify their product, production and services as were because you must not rely heavily and put your resources on one product. Improve Customer Relationship PC can improve its relationship with its customers by providing different incentive plans
The opportunities that PC faces are not much due to its well-established position.
Events organized in the city gives PC Lahore a great advantage as number of customers/people increase and PC get an opportunity to show its loyalty and services to its customers.
One of the opportunities grasped by events being held in the city is that as tourist increase and in the same way people book rooms and avail services rendered by PC.
Seminars are again a great opportunity for PC as worldwide seminars are being held in the city or in PC Banquet halls which again help PC to show its quality services and in this way people across the world come to the city and book rooms for themselves.
Parties, wedding and other extra circular activities are opportunity to help PC recognize its name.
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THREATS:
If in the market there are more than two or more brands of the same type or there exist an alternative for that product then organization/companies face threats among themselves or among customers but one can always plan before hand. Worst Economic Conditions Present economic conditions are not favourable for the growth and flourishment of hotel Increased Sales Tax Sales tax has increased which results in the increased customer prices and reduced sales level. Restricted Government Policy Restriction imposed by the government regarding tax payment effects profitability of PC. Decrease in Customers Purchasing Power Increase in overall prices has decreased the customers purchasing power for all the products. industry.
Other threats for PC are Threats of new entrants like Islamabad Serena are a threat for PC but PC has planned different alternatives for its threats. Law and order situation can also be a threat such as strikes. If law and order is not maintained throughout the country then people around the world would avoid to come to Pakistan and if people wont come then there will be no tourist so who will rent the rooms.
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In the SWOT analysis we came to know about their strengths and the weaknesses of a hotel industry and especially of PC hotels. We learned how they can enhance their strengths and overcome their weaknesses. SWOT analysis also gives an idea of opportunities and the threats for PC. We analyzed how they can take full advantage of the opportunities and guard against the threats. Analysis of Critical Success factor (CSF) helped us to learn about the factors which are essential for success for a hotel. CSF helps define business strategies. It is basically those things which must go right if the objectives are to be achieved. We analyzed the competitive forces in an industry to help define an appropriate overall business strategy. It basically helps to determine which of the forces pose a major threat to the future success of the business and in what way
COMPETITOR ANALYSIS
Knowing your Competition is as an important issue as Knowing your Customer. In order to obtain relevant information about the competition, a competitor survey should be undertaken to gather data about direct and indirect competitors. One objective of such a survey is to find out why we are more or less successful then the direct competitors and allows us to recognize market saturation e.g. too many similar products offered for limited market. It also can provide opportunities to detect market niches toward which we can steer our operations. Lahore is famous for its traditional hospitality offers an endless variety of places to see and delicacies to taste. Pearl Continental Hotel Lahore is the perfect base from which to explore to your hearts content. There are so many Hotels in Lahore those are popular for their Food.
The Competitors of PCHL are: Islamabad Serena Holiday Inn Park Plaza Marriott Hotel AVARI
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PC'S COMPETITIVE ANALYSIS

The basis of industrial competitive analysis model is that an enterprise exists within an industry and to succeed, it must effectively deal with the competitive forces that exist within the particular industry. Based on the forces involved in Porter's model we are going to judge the PC hotel in Lahore.
Threats of New Entrants:

New hotels that are five stars and go for the same customer categories as the Pearl Continental. Access to raw material or resources, otherwise readily available being rerouted to Other hotels.
Threat of Products or Services:

New restaurants popping up all over Lahore have put a strain on the cafes and restaurants within the hotel. Rival hotels within the vicinity have offered the same C.S as PC. The ability to differentiate between products and services being offered by PC and other hotels has become smudged.
Buyer's Power (Customer):

People anywhere in the world love the ability to bargain and as such put the provider in a tough position. The bargaining power of a customer coming to PC is intensified because other hotels are right across the street, at moments like this when the customer threatens to walk-out, the person at the counter has the authority to offer certain deals in order to keep that customer. The above statements verify the fact that the customer is price sensitive and has many alternative sources of supply.
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Supplier's Power:
The number of supplier's with the right products has decreased over the years and such has allowed the party concerned to increase prices without fear of denial from the hotels. The government has also increased the tax quota on the business to 12.5 %, thereby, allowing the suppliers a valid excuse for "price jack." Since other suppliers/ resources are not readily available, the hotels have an increased overhead cost.
Critical Success Factor:

Critical success factors are the factors that contribute to make strong position of the business, that make it successful and matters the most in its continued success. In other words these are the few key areas where the things must go right for the business to flourish and achieve its objectives. It is important to set objectives before embarking upon critical success factor
Analysis. The main objective of Pearl Continental Hotels is to obtain maximum profit and maximum occupation by the customers in the Hotel. Customer satisfaction is the main source of achieving the objectives and to allure the customer to become the member with the Pearl Continental Hotel and give them repeating visits. The three most important considerations for a business and leisure traveler or a regular customer to a hotel are the: Location of the hotel Safety and security Rates/price.
Pearl Continental hotels satisfy these three conditions to the utmost and hence these three factors become one of the most critical success factors of this industry.
Location
The location of all the Pearl Continental Hotels contribute to its successful operations as they are not far away from the airports and lies in the heart of their respected cities.
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Travelers
Pearl Continental Hotel, which is the member of the `Leading Hotels of the World', is the premier choice of business and leisure travelers. It is ideally located only fifteen kilometers away from the airport, situated in the heart of commercial centre and provides excellent business and conference facilities and easy access to shopping centers of the city.
Commercial Avenue
In the city of graceful mosques, imposing fortresses and historical bazaars, Pearl Continental Hotel, Lahore is located at the most prestigious financial, business and commercial avenue, Shahra-e-Quaid-e-Azam (The Mall), opposite Governor House, 7 km from the Lahore International Airport, 6 km from the Main Railway Station and 1.5 km from the main City Business Center.
Safety and Security:

Safety and Security is the biggest concerns of the people travelling from one place to another due to the increasing Hotel crimes. All Pearl Continental hotels use electronic locks, each room opens with an encoded key card, which increases the level of security. Each room features data Port, Electronic in-room Safe, Safety Alarm, Radio and Television with Satellite
Channels, Direct Dial Telephone and the Security-conscious can rest assured that all our rooms are equipped with smoke detectors and sprinklers. The use of this system being rare in other hotels of Pakistan makes it a critical success factor of Pearl Continental hotels as the customers requiring high level of security will prefer to stay here which will contribute to achieving the objective.
Rates:
Two factors are involved in increasing the profitability; by increasing the rate and by increasing the volume but increasing the volume does not guarantee profits. Pearl Continental increased 20% of the revenue by increasing the rates along with special discounts. Rates are however negotiable in certain cases which ensured that the segments that provide profits do not lose their interest by increasing the rates.
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Critical Success Segments
The segments, which are critical to the success of Pearl Continental Hotels, are:
Airline Crew:
Reservations of the local and international airline crews are very important as the products to them are sold in bulks every time they arrive. They are given the wholesale rates so that they do not select another hotel. The information of the incoming flights is kept so that respective airlines are informed about the rates in order to book the rooms for their crew.
Tourist Group:
The rates for the tourist groups that come to the hotel directly or through some travel agency are given are comparatively less and negotiable depending on the law and order conditions of the country. The arrangements of transport and tourist guides are made on request specially when there are some events or activities going on in the city.
IMPROVED SERVICES: The Pearl Continental Hotels' rooms, executive suites, super deluxe suites, Executive Rooms, are designed to provide the utmost comfort and luxury where guests are pampered in every possible way. All rooms are equipped with satellite television, inhouse movies, music and 30 channel satellite television network and modern amenities. In fact, every facet and facility required by the discerning traveler is catered to. Room Service operates round the clock caring for all the travelers needs. Personal facsimile machines are available in all suites and executive rooms ensuring complete privacy and confidentiality. Business Centre& Secretarial Services are also available throughout the day and up to mid night. OLD AND NEW CLIENTELE: Pearl Continental Hotels being the oldest in the hospitality industry in Pakistan enjoys a large old clientele that are its strength and an important factor in its continued success. Pearl Continental Hotels put all the possible efforts to retain the old clients' interest by providing discounts, concessions and special offers in seasons.
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PART 8 CONCLUSION AND RECCOMENDATION
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PEARL CONTINENTAL HOTEL LAHORE Corporate Social Responsibility (CSR)

Pakistan Services Limited, as a responsible corporate entity has accorded high priority to social welfare activities for betterment of people.
CORPORATE PHILANTHROPY:
The Company has given financial support to well-reputed NGOs with good track record of improving education, healthcare and other social welfare activities all over the country. Their guiding principles in managing social, ethical, and environmental commitments remain unchanged and they are continuing to play active role in meeting the growing needs of the social welfare sector. The main focus of the Company is to concentrate on healthcare, education, rural development, environment conservation and strengthening of the civil society through Aga Khan Foundation and the Hashoo Foundation, who are engaged in different projects of social welfare. The Company is working for greater financial independence and self-reliance of individuals, families and communities. During the year under review it has made an aggregate donation of Rs.88.727 million to Shaukat Khanum Memorial Cancer Hospital and Research Centre, the Aga Khan Foundation and the Hashoo Foundation. PC stand committed to enhance share in the public welfare projects regardless of whether in the areas where such projects are underway have their business presence or not. Their cause is general uplift of masses and the deprived communities.
FUTURE PROSPECTS:
An oracle based system is being incorporated in the hotel for better information system technology. Each department will have its own vision, which will complement the overall vision of the hotel and PSL as a whole. Two new projects at Gwadder and Muzzafarabad are in progress and will be completed next year; this will provide excellent hoteling facilities to the citizens of these cities.
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Management at Pearl Continental Hotel wants to secure their business in the face of growing competition from international market. They want to fulfil their vision by creating a good organizational environment and satisfied customers; for which they believe in the improvement of their employees. They are also planning to recruit experienced personals from abroad for a global understanding of increasing potential market.
RECOMMENDATIONS:
PC should also invite people from outside to help in training. The sitting arrangement at PC offices is un-satisfactory. There is no waiting room for guests, even high profile clients have to wait out-side while standing or sitting in their own vehicle, there are also inconvenient sitting arrangements inside the department. With the employees perspective the company must focus on reducing the dissatisfaction amongst the employees. The majority of the employees are dissatisfied due to a cut down in benefits provided by the company, medical, bonus, increment to name a few. Human resource constitutes the most valuable asset for an organization. To improve the professional skills and quality, PC must conduct some training programs for existing employees to improve their proficiency. Company should give some more incentive to its employees in order to remove the conflict between lower and higher officers. They should introduce creativity into the work, so that the employees can do their work active minded. Recruitments should be strictly on merit basis and induction should be after proper and extensive training. The other important thing that will help them in excelling is that the consistency of the policies should be implemented.-In this way every employee and worker is well aware of the policies and rules and regulation.
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Recruit new and fresh graduates to the company so that through their new ideas the management of the packages can increase there working capability and capture new markets and clients. The management should revise the salary package of the employee so that they can work with full dedication and concentration.
PC is the leading Hotel Chain in Pakistan. It was not an easy job for internees to study the complete working of this organization within six weeks. I think one need allot more time to study such a versatile type organization. It was very difficult for the internees to manipulate all sort of information. This internship program was very fascinating experience for me and during my stay at PC, I learned so many things. So it was the best time for me to see the application of the theoretical frame work studied by me in practical fields.
CONCLUSION
In conclusion I would like to say that Pearl Continental Hotel is a place where one can enjoy their time in a very soothing and relaxing mood. The hotel is a perfect place for all kind of activities. You can have business meetings, lunches, dinners, conferences, parties, functions and seminars. PC has a good name, reputation and trust. There is an arrangement of each and everything you can imagine, which makes it a role model. The management and employees are very courteous and customer-oriented. They serve you at their best level and certainly you will feel the difference. In this report we gave the overview of PC, and learnt about their management style, culture, their strengths, weaknesses, opportunities and threats, we also analyzed their critical success factors, and competitive analysis.
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APPENDIX
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Pearl Continental Hotel

Balance Sheet
Balance sheet (Rupees 000)
As at March 31, 2012
Assets
Non-Current Assets Property, Plant and Equipment Advance for Capital Expenditure Investment Property Long term Investment Long term Deposits Advance for Equity Investment
2011
2012
21,990,412 778,817 391,763 1,222,418 13,382 40,700 24,437,492
22,394,360 948,160 47,000 1,315,378 13,382 94,750 24,813,030
Current Assets Stores, spare parts and loose tools Stock in trade - food and beverages Trade debts Advances Trade deposits and prepayments Interest accrued 319,190 602,955 37,163 49,340 498,932 649,830 68,884 68,875 53,833 71,172 86,121 107,149
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Other receivables Other financial assets Noncurrent assets held for sale Cash and bank balances
53,296 456,760 35,700 76,992 1,771,350
74,542 488,950 57,500 66,561 2,152,395 26,965,425
Total Assets
26,208,842
Liabilities
Non-Current Liabilities Long term financing secured Liabilities against assets subject to finance lease Long term deposits Deferred liabilities Non Current Liabilities 50,884 365,219 916,103 50,384 378,985 1,091,530 500,000 641,667 20,494
Current Liabilities
Trade and other payables Markup accrued Short term borrowings - secured
1,327,119 31,484 390,233
1,407,619 35,462 152,000
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Current portion of long term financing Current portion of liabilities against assets subject to finance lease Provision for taxation Current Liabilities
36,000
158,333
8,089
47,339 1,832,175
70,640 1,832,143

Authorized share capital 50,000,000 (30 June 2011: 50,000,000) ordinary shares of Rs. 10 each. 500,000 500,000
Issued, subscribed and paid up share capital Reserves Unappropriated profit
325,242
325,242
1,869,424 1,258,128 3,452,794
1,869,424 1,858,361 4,053,027 3, 248, 915
Total Equity and Liabilities
3, 073, 520
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Pearl Continental Hotel

Profit and Loss Account As at March 31, 2012
2011 Sales and Service net Cost of sales and services Gross profit Administrative expenses Other operating expenses Finance cost Other operating income Profit before taxation 3,736,522 (2,219,508) 1,517,014 (788,713) (15,265) (132,395) 176,341 756,982 2012 4,084,341 (2,362,666) 1,721,675 (923,497) (142,281) 196,568 852,465
Taxation
(221,347)
(252,232)
535,635
600,233
Earnings per Share
16.47
18.45
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Pearl-Continental Lahore JOB DESCRIPTION
Job Title Department Reports to Supervises/controls/ directs activities Job holders (name) 1. Job duties & Responsibilities a. b. c. d. e. f. g. h. i. 2. To see overall Smooth Operation of the Accounts Department. Preparation of Monthly Accounts and Preparation of Comments. Preparation and review of all Balance Sheet reconciliations. Preparations of Income Tax Details. Participation in the preparation of Budgets. Matters relating to employees Income Tax. Preparation of Executive Department Heads payroll on Monthly Basis. Preparation of Corporate Office and Hotels current accounts reconciliations. Any other work assigned by Controller Finance time to time. : : : : : Accounts Manager Finance Director Finance __________________ __________________
Specifications (in brief) Qualifications Professional experience Age Others MBA Finance 3-5 Years 30-35 years Nil
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Brief Requirements Ability to plan, organize activities of subordinates. Ability to express ideas clearly. Ability to modify leadership style. Knowledge of principles and techniques of team leadership .. etc. 3. Limit of authority (a) (b) 4. To appraise the performance of the subordinate staff To Supervise subordinate staff
Executive Duties To assume the functions and responsibilities of Manager on duty in accordance with the hotels duty managers roster.
This job description is not an exclusive or exhaustive list of all jobs, duties, functions that the Management staff in this position is required to perform from time to time.
I read, understood, and acknowledged to undertake the duties and responsibilities coupled with the limits of authorities, stipulated above.
Signature
Date
173
Last Name Middle Name First Name Company Name Company Address
Membership Card Membership Form
Phone Fax E-mail Mail my card Mode of payment Home Address

At Office Cash
Submit
Clear Form
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BIBLIOGRAPHY
www.hashoogroup.com.pk www.pchotels.com.pk www.corporateinformation.com www.google.com www.wikepedia.com
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PEARL CONTINENTAL HOTEL LAHORE

Institute of Business Administration

PEARL CONTINENTAL HOTEL LAHORE

Institute of Business Administration

PEARL CONTINENTAL HOTEL LAHORE

Institute of Business Administration

PEARL CONTINENTAL HOTEL LAHORE

Institute of Business Administration

PEARL CONTINENTAL HOTEL LAHORE

PEARL CONTINENTAL HOTEL LAHORE

PEARL CONTINENTAL HOTEL LAHORE

PEARL CONTINENTAL HOTEL LAHORE

PEARL CONTINENTAL HOTEL LAHORE

Institute of Business Administration

PEARL CONTINENTAL HOTEL LAHORE

Institute of Business Administration

PEARL CONTINENTAL HOTEL LAHORE INTRODUCTION OF PCHL

Institute of Business Administration

PEARL CONTINENTAL HOTEL LAHORE

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PEARL CONTINENTAL HOTEL LAHORE

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PEARL CONTINENTAL HOTEL LAHORE

CHIEF FINANCIAL OFFICER

Institute of Business Administration

PEARL CONTINENTAL HOTEL LAHORE

Pakistan Services Limited (PSL)

Institute of Business Administration

PEARL CONTINENTAL HOTEL LAHORE HISTORY OF THE PCHL

FIRST LUXURY HOTEL

INTER CONTINENTAL HOTEL

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PEARL CONTINENTAL HOTEL LAHORE

PRESENT STATUS OF THE ORGANIZATION IN BUSINESS WORLD

INTERNATIONAL BUSINESS ACTIVITIES

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PEARL CONTINENTAL HOTEL LAHORE

NATURE OF THE ORGANIZATION:

Institute of Business Administration

PEARL CONTINENTAL HOTEL LAHORE

COMPARISON WITH INDUSTRY OF SAME SECTOR

PC'S COMPETITIVE ANALYSIS

Threats of New Entrants:

Institute of Business Administration

PEARL CONTINENTAL HOTEL LAHORE

Threat of Products or Services:

Buyer's Power (Customer):

Critical Success Factor:

Institute of Business Administration

PEARL CONTINENTAL HOTEL LAHORE

Institute of Business Administration

PEARL CONTINENTAL HOTEL LAHORE

Safety and Security:

Critical Success Segments

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PEARL CONTINENTAL HOTEL LAHORE

Institute of Business Administration

PEARL CONTINENTAL HOTEL LAHORE

Institute of Business Administration

PEARL CONTINENTAL HOTEL LAHORE

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PEARL CONTINENTAL HOTEL LAHORE

Growth and development for all:

Institute of Business Administration