Developing and Managing Performance

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Developing and managing performance
Developing and Managing Performance
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Developing and managing performance
Executive Summary
Cavendish Hall Hotel is a four star hotel that serves in five departments that include
housekeeping, human resource and administration, events and banqueting, rooming and
reception, and food and beverages. It has adopted the individual performance related pay for the
last three years. However, there has been several drawbacks that are brought by this reward
system where the clients have been complaining of ineffective and unfriendly employees. The
services have been poor generally and the hotel manager has hired Daphne as the new personnel
manager to evaluate the effectiveness of the individual performance related pay. This report
relies on different studies and reliable arguments that have been conducted in different
organizations where the results show that this reward system is not very effective. For those who
have been using it, there is a show that they found it inefficient and unrecommendable. However,
there are advantages that it has, but they do not outweigh the level of ineffectiveness it has. This
report has suggested better alternative reward approaches that Daphne can consider applying in
this hotel. This includes the team-based pay whereby employees are rewarded as a team when
certain organizational goals are achieved and the basic pay where the employees are not exposed
to incentives, but only depend on the permanent regular pay alone. These two reward approaches
have been studied on, and there are indications that many people have used them and they have
been effective.

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Developing and managing performance
Introduction
Reward schemes are the strategies that an employer uses for motivation of the employees
and consequently realize achievement of goals of the organization. Cohen (2017, p.88) suggests
that in the process of selecting a reward system, the goals, the structure, the characteristics, and
the competing organizations should be greatly considered in order to get the best out of it. The
system selected should aim at either attracting, retaining, motivating employees, improving the
organization’s productivity or contain costs. Individual performance-related pay is a reward
system where one’s increase of pay relies on his or her competence or performance rating
assigned after a certain observation or analysis (Belle, 2015, p.232). It is mostly designed to
motivate the workers and to bring their efforts closer to the objectives and goals of the
organization. De Spiegelaere et al (2016, p.12) say that the pay is most of the times in terms of
finances, but sometimes it can be non-financial, with motivators such as free trips and shopping
cards.
Suitability of Individual Performance Related Pay
This reward system, individual performance-related pay, if well used can be of great
transformation in an organization. This system motivates employees to work hard, following all
the regulations and requirements of the organization in order to benefit from the rewards (Brown,
2016). If the reward system rewards the best employees, every employee will strive to be the
best, hence increasing the individual performance and general productivity of the organization.
Moreover, Damiani et al (2016, p.350) say that this reward system is a good and effective
way of reducing and dealing with poor employee performance. The employees who perform

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Developing and managing performance
poorly will be motivated to upgrade their performance in the struggle to increase their earnings.
When an employee receives the pay increase, he or she will be motivated to increase the
performance more and more, without the mind of quitting from the job. Employees, therefore,
will be retained in the organization, increasing their experience in the job, becoming more
productive and efficient. This reduces the frequency of errors brought by new employees who
have no or less experience. The employer will be relieved of the task and expenses of hiring new
employees every now and them.
Additionally, with the introduction of this reward system, a culture of performance basis
is developed. This is significant because it means that the employees reach a situation where
close monitoring and supervision is not required. Therefore they developed an intrinsic drive that
makes them be responsible and time-conscious on their own. New employees who enter into the
organization adapt into this culture, hence do not require a lot of orientation because they adapt
easily. With this culture then the organization realizes high levels of production, and high profits
are expected to be realized. Damiani et al (2016, p.352) say that this reward system has been
tried for a long time yet it has not been very efficient, but it has been brought recently with new
reforms as a new idea.
Ineffectiveness of Performance Related Pay
Hegewisch and Filella, (2017, p.92) say that there have been criticisms that suggest this
reward system to be ineffective. It is argued that this system may have too high goals that the
employees are needed to achieve in order to receive or benefit from the pay increase. This may
demotivate the employees instead, making them be less active and perform even less than
expected. Due to this, they may even quit from the job because probably their basic pay is not