An Assignment on

COMPENSATION MANAGEMENT IN 5 STAR HOTEL & LOCAL

RESTURANTS
Course Name: Compensation Management
Course Code: HRM-507

Submitted to
Abu Sayef Md. Muntaquimul Bari Chowdhuri
Assistant Professor
Department of Management Studies
Jahanagirnagar University

Submitted by

INNOVATIVE
Toma sen ID: 1244
Naimul Islam Noman ID: 1262
K.M. Anamul Huque ID: 1269
Shahadat Hossain ID: 1273
Majharul Islam Noble ID: 1280

Department of Management Studies

Jahanagirnagar University

Date of Submission: 16 March, 2022

Introduction
One of the most difficult functions of human resource manager is that of determining the rates of
monetary compensation. It is not only complex, but also most significant, both to the
organization and employees. “Every human resource manager is entrusted with the responsibility
of establishing equitable wages and salary structure on one hand and maintaining on equitable
labour cost on the other”1 Human resource manager at present stage is surrounded between the
conflicting interests of the employees and the employers still for the successful functioning of the
organization wage and salary administration is essential.

Wage and Salary Administration refers “to the establishment and implementation of sound
policies and practices of employee compensation. It include such areas as job evaluation, survey
of wage and salaries, analysis or relevant organizational problems, development and
maintenance of wage structure, establishing rules for administering wage, wage payments,
incentives, profit sharing, wage change and adjustment, supplementary payment control of
compensation cost and other related items.”2 Wage and Salary Administration refer “to the
framing and implementation of policies and practices pertaining to employee compensation. It
includes development of wage structure, wage survey, wage incentives, profit sharing, wage
adjustment and other related items concerning wage payment.

There are mainly four components in compensation.

Wage and Salary: Wage and salary are the most important component of compensation and
these are essential irrespective of the type of organization. Wage is referred to as remuneration to
workers particularly, hourly-rated payment. Salary refers to as remuneration paid to white-collar
employees including managerial personnel. Wages and salary are paid on the basis of fixed
period of time and normally not associated with productivity of an employee at a particular time.

Incentives: Incentives are the additional payment to employees besides the payment of wages
and salaries. Often these are linked with productivity, either in terms of higher production or cost
saving or both. These incentives may be given on individual basis or group basis.

Fringe Benefits: Fringe benefits include such benefits which are provided to the employees
either having long-term impact like provident fund, gratuity, pension etc.
Perquisites: These are normally provided to managerial personnel either to facilitate their job
performance or to retain them in the organization. Such perquisites include :company car, club
membership etc.

Aim of Wage and Salary Policy

By keeping in view the importance of sound wage and salary policy the following aims were
structure in the selected hotels identified determining the wage and salary units.

To recognize the value of each job

To provide stability in earning

To allow the individual to reach full earning potential

To ensure that all staff shares in the hotel’s prosperity through increased efficiency

Approaches for Determining Structure of Wage and Salary

The exercise related to the determination of wage and salary structure includes, Organizational
ability to pay, supply and demand of labor, job evaluation, Prevailing market rate, cost of living,
trade union bargaining power, managerial attitude, psychological and social factors. A brief
introduction of the activities related to the determination of wage and salary structure is offered
in the following explanation.

Organizational Ability to Pay: Employer’s ability to pay is an important factor affecting wages,
not only for the individual firms, but also for the entire industry. This is a function of the
financial position and profitability of the firm.

Supply and Demand of labor: The wage is a price for the service rendered by a worker. The
firm requires these services, and it must pay a price that will bring forth the supply, which is
controlled by the individual workers or by a group of workers action together through their
unions. The primary result of the operation of this law of supply and demand is the creation of
the “going-wage rate.”
Job Requirement: If a job requires skill, greater responsibility and risk, the worker placed on
that job will naturally get higher wages in comparison to other jobs which do not require the
same degree of skill, responsibility or risk.”

Cost of Living Index: The cost of living index is also claimed as an aid in determining the wage
and salary levels as it offers useful information about actual cost of living. But several eyebrows
have been raised against considering the cost of living index as the basis for determining wage
and salary levels with long term perspective. In comparison to this, it can be appropriately used
as a stopgap device in times of inflation to provide relief to employees against the rise in prices,
thus, it is a short term device for adjusting wage and salary by keeping the increase or decrease
in the cost of living index in consideration.

Prevailing Wage Rate: This is the most widely used and accepted criteria by the organization in
fixing wage and salaries for their employees. It is also termed as comparable wage or going wage
rate. This is done for many reasons. Firstly, the wages paid reflect the image of the organization
in the society. Secondly, due to competition, various organization usually keep their wages level
at par. Thirdly, various organizations follow the policy of equal pay equal work. Fourthly, the
functionally related companies require the same kind of manpower and therefore the same they
have to keep the wage rates at the market rates. Fifthly, if the organizations ignore these factors
they usually loose skilled manpower to the organization, which are paying higher wage rates.”

Trade Union Bargaining Power: The capacity of trade union related to collective bargaining is
also of the prominent indications for determining levels of wages and salary. The bargaining
capacity of trade union depends upon strength of its leadership and size of membership. When
trade unions are able to effectively use the instrument of collective bargaining then the
employers are forced to redesign the wage and salary level.
 Company Profile: Dhaka Regency Hotel and Resort
As mentioned in their website; Dhaka Regency is a magnificent new-generation business class
hotel ideally located on Airport Road in the commercial area of Nikunja 2. it a 3-minute drive
from Hazrat Shahjalal International Airport or around the bend from Baridhara Diplomatic Zone
or a 15-20 minutes ride away from the Banani and Gulshan Commercial Areas, Dhaka Regency
Hotel & Resort is conveniently situated to target and attract the market segment that requires
lodging services most frequently. Moreover, its proximity to the industrial belts of Tongi and
Export and Processing Zone (EPZ), where the ever-flourishing readymade garments (RMG)
sector of Bangladesh is situated and which contributes to the lion share of inbound travels to the
nation, makes the hotel's location even more prime.

YEAR OF ESTABLISHED : 2007

TYPE OF HOTEL : 5 Star Business Hotels

GROUP : British Bangladesh Group

ADDRESS : Airport road, Nikunja 2 Dhaka-1229.

TELEPHONE : +88 02 8913912

FAX : +88 02 8911479

E-MAIL : info@dhakaregency.com

WEB : www. dhakaregency.com

TRANSPORT : Airport – 1 km, (3 minutes by car)

ACCOMODATION : 214 Guest rooms

City‘s nearest hotel From The International

Airport. As well as Closest from Gazipur,
LOCATION :
Tongi & Ashulia Industrial zone and
Baridhara Diplomatic Zone.
15-stories high with over 250,000 sq. ft. of space (including 15,000 sq. ft. parking lot), this
edifice of classic stature structured for 214 luxuriously furnished guest rooms and suites ,
including the exclusive club floors with its private VIP lounge, began as a venture of the UK
based NRB's. Each room is equipped with central air-conditioning, satellite television,
International Direct Dialing, mini bar and an electronic safe.

Dhaka Regency boasts on running the largest 24-hour 5 Star restaurant in the country, Grandiose
Restaurant, offering international multi-cuisine delights and three buffet meals per day. There is
also a quaint cafe´, Comfee Lounge, which caters to a wide selection of light and mouthwatering
delicacies. Recently, the hotel launched an instantly raved rooftop garden restaurant, Grill on the
Skyline, which is a steak and seafood bistro and provides guests an unobstructed panoramic view
of the city's airport runway.

Apart from the restaurants, the hotel also caters many events in its elegant Celebration Hall and
six other luxurious banquet and event venues. Dhaka Regency also holds the distinction of
owning the trendiest hookah lounge in the city, Shisha World, as well as the largest live
entertainment bar lounge in the country, Club-13.

With stake towards the health of its guests, the hotel also has its very own state-of-the-art health
club, DR Fitness, which constitutes of steam & sauna services, rooftop swimming pool and some
of the latest equipment’s of the season, all including personal fitness concierge service. The
largest authentic Thai rejuvenation facility in the country, Bion Spa, is also part of Dhaka
Regency, complete with also steam, sauna, and salon services. And as business travelers
constitute most of its hotel occupants, Dhaka Regency ensures its guests the convenience of a
fully equipped Business Center and Limousine services.
Dhaka Regency Hotel & Resort: Mission and Vision

Mission:

The Dhaka Regency Hotel and Resorts mission is to exceed the expectations of their guests.
Inspire their associates and provide superior financial results to those who entrust with managing
their assets

Vision

Vision of Dhaka Regency Hotel & Resort is to be a world class and renowned hotel by its service
excellence and product quality.

Departments in Dhaka Regency Hotel

Dhaka Regency Hotel and Resort is a five star business Class hotel. Within five years of its
operation, it gets much popularity from various types of guest for its excellent service and guest
friendly ambiance. This hotel has been operated consisting of its ten important departments.

These Department‘s brief descriptions are given below:

Front Office Security department

Food and beverage service MIS department
Food and beverage production Finance and Accounting department
Maintenance department Sales and marketing department
Housekeeping department Human resources department

Different services at Dhaka Regency Hotel

Accommodation facilities

Each of our 214 guest rooms and suites has been immaculately decorated with complete attention
to the comfort of our guests. We offer numerous categories of rooms to ensure that we may cater
to the individual needs of our valued guests.
The following facilities are included in our rooms:

 Central air-conditioning
 Satellite television
 Bathrobe & Hairdryer
 Mini bar
 Electronic safe
 24-hours room services
 Laundry services

Room Type Published Rate*

Standard 7th-10th Floor USD 170 ++

Luxury Deluxe USD 250 ++

Deluxe Supreme USD 300 ++

Executive Suite USD 400 ++

Regency Premium 11th-12th USD 350 ++

Regency Studio Floor USD 325 ++

Luxury Studio (Executive USD 400 ++

floors)
Royal Suite USD 900 ++

Presidential Suite USD 1200++

Dining Facilities:

 Grandiose restaurant
 Grill on the Skyline
 Comfee lounge
 Shisha world
 Club 13
Featured service:

 Limousine service
 Business centre
  Bion Spa
 DR fitness
 Swimming pool and Jacuzzi

Meeting and event facilities:

Function Room Location Clas Theater U- Banquet Reception

sroom Shape

Celebration Hall (5,721 sq ft) Level-14 150 450 120 300 960

Grand Summit-1 (4,332 sq ft) Level-14 50 120 80 200 600

Grand Summit-2 (2,220 sq ft) Level-6 40 100 35 100 200

Rendezvous Lounge (1,930 sq ft) Level-13 35 80 30 80 120

Corporate Summit-1 (1,110 sq ft) Level-9 20 30 20 N/A 50

Corporate Summit-2 (1,110 sq ft) Level-9 20 30 20 N/A 50

Grill On The Skyline (8,780 sq ft) Level-15 N/A N/A N/A 120 200
(Rooftop)

My Lounge (980 sq ft) Level-14 20 30 20 N/A 40

 COMPENSATION STRUCTURE OF DHAKA REGENCY HOTEL

General Manager: 10% of company profit (Salary)

Finance Department

Designation Base salary(Taka)

Finance Director 200000
Finance Manager 100000
Cost Control Manager 40000
Store Manager 30000
Purchase Manager 10000

Sales Department

Designation Base Salary(Taka)

Sales Director 180000
Catering Manager 40000
Branding Manager 40000
Sales Manager 30000
Officer 20000

Food & Beverage service

Designation Base Salary(Taka)

Food & Beverage director 190000
Restaurant Manager 20000
Supervisor 15000
Waiter 10000
Team Leader 13000
Food & Beverage Production

Designation Base Salary(Taka)

Executive Chef 120000
Soue Chef 60000
Chef the party 35000
Demi Chef the party 22000
Commie-1 18000
Commie-2 15000
Commie-3 12000

Front Office Department

Designation Base Salary(Taka)

Front Office Manager 80000
Guest Relationship Manager 45000
Supervisor 22500
Guest service Agent 18000
Bill Boy 15000
Driver 25000

House Keeping Department

Designation Base Salary(Taka)

Executive House Keeper 80000
Supervisor 22000
House Keeping Co-Coordinator 18000
Room Attendant 15000
Gardener 12000
Laundry boy 12000
Public area attendant 15000
HR Department

Designation Base Salary(Taka)

HR Director 180000
HR Manager 60000
HR Officer 40000

MIS Department

Designation Base Salary(Taka)

Head of MIS 120000
MIS Officer 50000

Security Department

Designation Base Salary(Taka)

Security Manager 80000
Supervisor 35000
Security Officer 25000
Security Man 18000

Benefit

 Receive 2 festival bonuses.

 Regency hotel charge 10% Service charge for each of their service & end of the month
the total service charge equally distribute among all employees.
 18 Days yearly leave
Name:Toma Sen
ID:1244

Rover’s Café
Rover’s Café established in 2018. It is situated at Savar. It has another branch that is situated in
Khulna. Rover’s Café serves supreme chicken burger, chicken steak cold coffee,chessy chicken
burger,naga burger, BBQ chicken burger and mulberry juice.

Compensation Package of Rover’s Café Savar:

Designation Number of Positions Payment(monthly)(TK.)

Manager 2 45,000
Assistant Manager 3 35,000
Chef 3 50000
Lead Cook 2 30000
General Cook 4 25000
Server 6 22000
Cashier 2 22000
Dish Washer 2 16000
Kitchen helper 3 14000
Caretaker 1 14000
Busser 2 12500
Security Guard 2 9500

Allowances:
 Overtime Allowances
 Meal
Bonuses:
 2 Festival Bonus and other religion festival bonus
Name:Naimul Islam Noman
ID:1262

Compensation Comparison Between a Five-Star Hotel & Local Restaurant.

According to a survey from STR, the revenue value of hotel food and beverage (F&B) activities

climbed by 4.9 percent over the calendar year 2017. Bangladesh's minimum 5-7 lakhs a month

for a General Manager, with the amount varying depending on the type of hotel or brand. There

are certain restaurant in Bangladesh that give an average of 5 lakh taka per month, and there are

those that provide as much as 6 or 7 lakh takas per month. The capacity to clearly comprehend

what it takes to create delighted, loyal consumers is critical to achieving success in the restaurant

sector.

Abdullah Hotel

Introduction

It is located at Badda in Dhaka besides the Gulshan-Badda link road. It started in 2002.The

environment of this hotel not so good but neat & clean. Thera are 6 tables & 36 chairs. There are

tatal 12 employees. 6 waiters/serviceman,3 chefs 1 dish cleaner & 1 cleaning employee. The

manager of this hotel is also the owner. He also the supervisor as well.

There is a small routine like in the morning the hotel serve porata & egg/vegetables, in lunch rice

& different type of fish ,meat & vegetables .In the evening they arrange some snacks like

puri,monglai etc & in dinner the food menu almost same as launch.

Every employee have their own responsibility & they try to maintain this.
Compensation Comparison of Between a Five-Star Hotel & Local Restaurant.

vs
Five Star Restaurant Local Restaurant

Dhaka regency Hotel) Abdullah hotel)

Managing Director: Depends on profit Manager/owner : Depends on profit

Chef salary:120000BDT Chef salary: 21000 BDT(each)

Waiters’ salary: 10000 Waiters’ salary: 10000

Room Attendant:15000 Hotel boy/ cleaner: 8000

Security Guard/ care taker : 6000 N/A

 Benefits Benefits

 Receive 2 festival bonuses.

 Regency hotel charge 10% Service
charge for each of their service & end
Free Breakfast, Launch & Dinner
of the month the total service charge
equally distribute among all employees.
 18 Days yearly leave

Other Comparison

Five Star Restaurant Local Restaurant

Dhaka Regency Hotel Abdullah hotel (Near Dhaka university )

Monthly revenue: N/A Monthly revenue: 50-60k

All kinds of bills : N/A All kinds of bills: 10000

Extra facilities : Car parking , Membership Extra facilities: Null

card , Air conditioner , locker etc

Targeted customer : upper middle class Targeted customer : middle class, below

person middle class, Lower middle class.

Provide exclusive photo opportunities at the restaurant

Someone goes on a wonderful vacation but does not publish images of it on social media, does

the trip actually take place or was it a hoax. Despite the fact that we're being facetious, individual

guests will enjoy the chance to snap a memorable photo at hotel, which they can then share with
their friends and family. When these photographs are shared on social media platforms such as

Facebook, Twitter, and Instagram, they act as free advertising for your property.its a great benfit

for Five star rated restaurant . The Regency dhaka for example, allows guests to take a photo

with one of the Red Sox's three World Series trophies, which are on display in the lobby.

On the other hand ,Hiring and maintaining high-quality kitchen and service employees is a

difficult task for any restaurant owner or manager. Managers and front-line staff are stressed out

by the fast-paced atmosphere, unpredictable hours, client demands, and the tension that comes

with being under time constraints. Many restaurants see high turnover as a result of this, further

exacerbating the problem..

Name: K.M. Anamul Huque
ID:1269

Shawrma House

It is one of the most popular restaurant in Sreenagor area. Pleasant and silent environment and
vibrant decoration makes this restaurant more popular in this area. It is exactly located on 3 rd
floor in M.R. Rahman complex in Sreenagor upazilla. Here you can find different kinds of
snacks, platter, appetizer, Chinese food, Thai food, Bangali food, soup, launch, dinner, drinks,
juice, etc.
As it is located on a small upazilla town, so the authority of this restaurant don’t obey the rules
and regulation of government labor act. The employees are worked very long shift, around 12
hour in this restaurant but they don’t get any overtime bonus for this.
Morever, they have very opportunity to get tips. Though severer get some tips, other cannot get
any. They havnot any opportunity for leave. They have to work daily. Even different kind of
festival, they don’t get any opportunity for leave.
They have some facilities like they get their 3 times meal daily from the restaurant. The server
and cleaner faced rough behave from customers regularly. As most the employee are not well
educated so,they have very few opportunity to find out another job very soon. For this reason
they stay that organization after getting insult and working very long time.
The Compensation Practices of this restaurant

Position No. of salary range Scope of Monthly Education

employees Tips Holidays

Manager 1 25000-30000 No No HSC

Chef 1 20000- No No VOCATIONAL

25000

Assistant 1 18000-20000 No No VOCATIONAL+

chef
SSC

Server 4 12000-15000 Yes No SSC

Cleaner 1 8000-10000 No No JSC

Guard 1 10000-12000 No No JSC

Name: Sahadat Hossain
ID:1273

Grand Area Restaurant

Grand Area Restaurant, the home of Indian,
Chinese and fast food, is a Chinese Restaurant.
It is one of the popular restaurant in Gandaria. It
is situated in Maleka Garden, 61 Satish Sarker
Road (near Gandaria High School), Gandaria ,
Dhaka-1204. The inner environment of this
restaurant is beautiful and well decorated and
overall good chinese restaurant for local
residents. The employees behavior are so nice
and polite.

As it is area based restaurant, the authority of this restaurant don’t comply with the rules and
regulations of government labor act. They don’t provide overtime bonuses to their employees
who worked for long shift from 10:00am – 11:00pm. They have to work daily. They have no
opportunity to take leave. When any festivals come they have to work till mid night. The waiters
of this restaurant get some tips from the customers but other employees don’t get any tips.

In this restaurant, there have a lot of food items they provide such as: Masala Dosa, Cheese
masala Dosa, Special chicken Masala Dosa, Dohi Fuska, Papri Chat, Paw Bagee, Special
Biriyani, Rajlokhi, Kashmiri Biriyani, Mughol Biruyani, Chicken Biriyani, Grill Bucket Biriyani,
Alu Parata, Chicken Bhuna khichuri, Tandoori chicken, Tikka Biriyani, BBQ Chicken, Fried
Chicken, French Fries, Fried Rice, different kinds of juice, Coffee, Burger, Chicken Noodles,
Thai Soup, Corn Soup etc.

The employees of this restaurant have some facilities like they get three times meal daily from
the restaurant. Sometimes waiters face some unexpected situation because sometimes customers
behave very bad with them. Employees are not well educated, so they have no opportunity to
switch their job.
The Compensation Practices of this restaurant

Position No. of Basic salary Tips Monthly Bonus

employees range Holidays
Manager 1 22000-25000 No No Half of the
salary, 2
times in a
year
Chef 3 18000- 20000 No No Do
Junior Chef 1 14000-16000 No No Do
Waiter 5 12000-14000 Yes No Do
Cleaner 1 8000-10000 No No Do
Dish Washer 1 8000-10000 No No Do
Guard 1 10000-12000 No No Do
Name:Majharul Islam Noble
ID:1280

Masturi Food Pavilion

Masturi Food Pavilion established in 2019. It is situated at Gerua Bazar in Savar. It is besides
Jahangirnagar University campus area that’s why its customers are campus students. Some local
group also use this place as a meeting place. This restaurant offers soup items, salad items,
sandwich, burger, pasta, shawarma, chaw mein, pizza, and some bangla food like rice, chicken
curry, vegetables etc. It is mainly a Chinese food serving restaurant.

This restaurant is unique as it serves Chinese food and its business is different from other local
restaurant as service is different. Mainly it tries to provide the flavor of star rating restaurants.
This restaurant has focused mainly on its internal environment which is heavily decorated.

As foods are different and customers come here for something unique that’s why employees
have special experience and knowledge on providing rich and decorated service. For this reason
their compensation is slightly higher than locals.

Compensation package of Masturi Food Pavilion:

Designation Number of Positions Payment Per

Person(monthly)(TK.)
Manager 1 40,000
Chef 3 30,000
Kitchen Helper 3 12,000
Server/Waiter 2 12,000
Security Guard 1 10,000