Report on Advantages and Disadvantages of Individual Performance Related Pay (IPRP)
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Added on 2019-12-03
Report on Advantages and Disadvantages of Individual Performance Related Pay (IPRP)
Added on 2019-12-03
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DEVELOPING ANDMANAGINGPERFORMANCE
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1 MANAGEMENT REPORT..............................................................................................1Advantages and Disadvantages of Individual Performance Related Pay (IPRP)...................1Barriers to the effective design and implementation of IPRP schemes..................................3Alternative reward approaches opted by organization...........................................................5TASK 2: APPRAISAL MANAGEMENT REPORT......................................................................6Importance and effectiveness of object setting, strategic alignment and feedback................6Links to appropriate development plans and support.............................................................8Links to appropriate methods to manage poor performance..................................................9Linking appraisal discussion with other management tools and techniques........................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTIONPerformance of employees within business organization can be measured on the basis ofhow well he/she works. HR managers or senior executives within the business enterprises usesstandard based system for evaluating employees and also for setting their salaries. Thisperformance related pay is adopted by the company because their workers performance cannotbe appropriately measured in terms of output generated and also sales achieved by a particularindividual (Turner, 2014). In order to study the performance of an employee briefly, organizationundertaken for the present study is Cavendish Hall Hotel which is a 4 star hotel which hasaround 200 rooms. Cited hospitality is famous for wedding and has varied range of conferenceand banquette facilities. This present report is based on understanding the advantages anddisadvantages of individual performance related to pay in mentioned hospitality. Further, thisreport also focuses on alternate reward approaches which can be used by Cavendish Hall Hotelto improve their efficiency and productivity. TASK 1 MANAGEMENT REPORTAdvantages and Disadvantages of Individual Performance Related Pay (IPRP) Individual performance related pay is a method of remuneration that links payprogression with the individual performance within the hospital organization. This PRP differsfrom one organization to another on the basis of individual performance, team work and alsorevenue and profits of the business enterprises. PRP given to employees is also linked with theirsalary structures, their grade pay, etc. As per the case study, Daphne Jones who is been appointedas a personnel manager of Cavendish Hall Hotel is asked to review the effectiveness of thementioned scheme (Rummler and Brache, 2012). Under this scheme, all the employees withinthe mentioned company will receive one percent of their salary increase irrespective ofperformance. Advantages of Performance Related PayThis performance related pay leads to reduction in production cost for the organizationwhich can be re-achieved by Cavendish Hall Hotel through increased potential ofindividuals and by improving their service quality.IPRP improves the morale of the staff and leads to motivation of employees.1
Mentioned Company has to define the goals and objectives specifically as appraisals ofemployees are based on their achievements as how much a worker has contributed in theorganization.This PRP system also leads employees towards the job satisfaction as they are rewardedfor efficiency they have put in order to achieve goals and objectives of mentionedcompany (Cummings and Worley, 2014).This PRP pays right employee right amount and it usually weeds out the drowsy and lazyworkers.With the help of PRP, employees within the cited hospitality are attracted and retainedback as organization recognizes their achievement with the help of the pay system.Healthy PRP system reflects that properly rewarded employees are likely to be moreloyal and perform their duty effectively for the hospitality. Disadvantages of PRPEffect of PRP on staff motivation is unsure because the bonus payments are normally asmall percentage of an overall salary of employees within the hospital organization.PRP might have negative influence on staff morale if management and executive teamwithin Cavendish Hall Hotel is not properly trained or have poor communication skills tocommunicate with their workers effectively.Major disadvantage of PRP is that it leads to serious disputes and creates hindrancesbetween superiors and subordinates as employees do not accept the fact that they havegot different reward pay for the same effort for a particular work as compared to otheremployees. In order to maintain this PRP policy, additional pressure is on superiors and managers ofthe mentioned hospital organization.IPRP improving organizational performanceNowadays, IPRP is considered as an effective tool for measuring performance ofemployees within the business organization. This helps the cited organization to strengthenrelationship between performance and the reward (Zellmer-Bruhn and Gibson, 2006). IPRPfurther drives Cavendish Hall Hotel to implement their organizational strategy to lower level.This policy genuinely improves corporate performance as it retains employees by accurately2
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