Shalimar Hotel Case Study

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Shalimar Hotels is a chain of 4 star hotels which has hotels in Rawalpindi, Lahore, and Peshawar. This is a Pakistani, family owned business and is the leader in terms of market share in the 4 star hotel segment in the country. Typically, the chain’s hotels have >90 % occupancy in lean months and 100% occupancy in the holiday season with heavy advance bookings.

Shalimar Hotels are appreciated by customers for their affordable room rates, excellent food (recently won The Asian Hotel Food Award), good location in the center of the city in cantonment areas, large lawns and green courtyards, buildings with traditional Mughal external architecture, clean rooms and a warm, family type environment. Each hotel offers live South Asian music and food
…show more content…
Mr Raheel Chaudhry, an electrical engineer trained in Germany, is head of the hotel operations. Mr Ismail Chaudhry, a chartered accountant from UK, handles Finance & Administration, and Mr Shakeel Chaudhry, a B.Com from Islamia College, Karachi, is responsible for Marketing. There is no HR department in the company. A Personnel Section comprising of 5 people is part of the Administration Department which is headed by Major (Retd) Khan Bahadur. This Personnel Section is responsible for timekeeping of staff, preparing the payroll and disbursing salaries, appointing daily wage staff, preparing letters of appointment and increments, issuing uniforms, …show more content…
The workers get one uniform each year. No transport is provided to workers. No loans are given for house building, motorcycle, children’s education or marriage or even for meeting emergencies. Employees have no way of communicating their grievances or suggestions.

Question 1 (8 marks)

What are the major problems being faced by Shalimar Hotels in each of the following areas of HR. Describe each problem in detail: 1. Recruitment
2. Performance Management
3. Compensation
4. Employee Relations

Question 2 (8 marks) For each of the above four areas, recommend a strategy for the company, including the measures the company should take to rectify each problem. Elaborate the positive outcomes that the company would achieve as a result of these measures.

Question 3 (4 marks) Make an HRM Action Plan for the

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