Report on Development and Management Performance
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Added on 2019-12-03
Report on Development and Management Performance
Added on 2019-12-03
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DEVELOPMENT ANDMANAGEMENTPERFORMANCE
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3Critical evaluation on individual performance related pay (IPRP)........................................3Barriers to effective implementation of IPRP scheme...........................................................6TASK 2............................................................................................................................................9Appraisal as a performance management tool........................................................................9Links to appropriate development plans and support...........................................................11Links to appropriate methods to manage poor performance................................................12Linking appraisal discussion with other management tools and techniques........................13CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15APPENDIX....................................................................................................................................18Document 1: Appraisal Preparation....................................................................................18Document 2: Feedback Sheet..............................................................................................20Document 3: Appraisal Form..............................................................................................22
INTRODUCTIONEvery business strives to serve the best products or services to their customers.Businesses need to be cautiously managed and monitored to ensure success from the investmentput forth into the business. Putting performance measurement in place can help the organizationin keeping a track of progress which they have made (Hervani, Helms and Sarkis, 2005). Itprovides vital information on employee’s productivity and instills motivation in them to servethe best for company. The study has been carried on Cavendish Hall Hotel which is being managed by therecently appointed Daphne Jones as a personnel manager of hotel. Herein, this report is a criticalevaluation of performance management with the detailed discussion on its in-depth valuestowards the organization. The report is divided into two segments whereby, the first evaluates thecontribution of reward principles, policies, practices and decision-making to the performancemanagement. The next segment of report analyzes the designs, implementation and impact ofhigh performance on organizations. TASK 1Critical evaluation on individual performance related pay (IPRP)Individual performance related pay is a pay that varies as per its respective performances.It is a financial rewarding system for employees where some or all are provided with monetarycompensation according to the performance assessment relative criteria. It can be seen that in every service sector, it is important for management to analyze anddetermine the performance objectives of individuals (Leopold, Harris and Watson, 2005).Further, businesses catalyze their performance objective to achieve the desired results. IPRPinvolve various wages, bonuses and grades which are passed on the workers to analyze theirperformance in reference to these rewards for a particular time period. PRP is a method by whichsalary increments are provided and motivation is boosted among them to carry out the identifiedobjectives. Daphne Jones has introduced the individual performance related pay scheme to reviewand boost the performance of employees of Cavendish Hall Hotel. It has introduced a standard-based system for rating of employees and for setting rewards as per their ratings. The rating criteria is as follows-
RatingsFixed Increment ascost of livingAdditional IncrementTotal IncrementExcellent1.00%3.00%4.00%Good1.00%2.00%3.00%Satisfactory1.00%1.00%2.00%Unsatisfactory1.00%01.00%Despite of effective scheme introduced by the hotel manager, it has been seen that therewards have not positively contributed towards the performance of employees. There areserious concerns faced by the hotel regarding its customer services and room cleanliness on thesite of Trip Advisor UK. Apart from these reviews, hotel has been suffering with the decliningroom occupancy rates which are putting a negative impression of the hotel from the head office(Zellmer-Bruhnand Gibson, 2006). As per the opinion and staff reviews, it can be assessed thatthe method needs to re-examine to identify its pros and cons towards the organization. The key advantages of individual performance related pay (IPRP) are- 1.Retention of skills- PRP helps in attracting and retaining their skilled workforce byrecognizing their accomplishments and rewarding an effective pay system to employees.With the development in pay system, individuals can feel their recognition andimportance towards the organization. 2.Standardization of employee performance- Managers are required to review theemployee's performance and set standard criteria for effective accomplishment of theirdesired goals. Cavendish Hall Hotel has also subsequently set criteria which arebifurcated into excellent, good, satisfactory and unsatisfactory. The standard systemensures fair ratings of all and reduces the fear of favoritism among employees.3.Establishing clear targets- This method helps individuals in recognizing the goals andobjectives with an ultimate aim of attaining it. Top management is required to attain thekey targets of hotel and set their standards as per those targeted to improve employee’sperformance for the accomplishment of goals (Brown and Harvey, 2011). 4.Motivating employees- This method serves as a medium of encouragement of staff byproviding them with pay equivalent to their performance. The key disadvantages of individual performance related pay (IPRP) are-
1.Complexity reduced to simple- IPRP often reduces the complexity of performancemeasurement to a simple method. Simple measure provides no guarantee towards thequality of productivity. It is very much evident from the case study of Cavendish HallHotel that mentioned company did not have effective performance and customers are notsatisfied who visited the hotel. 2.Leading to hostile work attitude- In the period when there is low customer volume,multiple employees may compete with each other for gaining attention of singlecustomer. This instance will lead towards hostile working attitudes among employees.Resentment may be faced by some if they feel that their opportunity to gain extrapercentage was snatched by someone else. 3.Performances can be subjective- The judgment criteria for same quality of work maydiffer from department to department and supervisor-to-supervisor (Thorpe and Beasley,2004). Managers tend to turn judges at times and their unnecessary judgments regardingtheir work performance can decrease the morale of employees leading to unsatisfactoryresults. 4.Method inapplicable during recessions- It is seen that during period of recessions ineconomic business, promotion or rewards linked to performances are generally notprovided. Therefore, hotel must consider this aspect by looking onto long-term aspectwhile introducing this method. 5.Inadequate criterion- Cavendish Hall Hotel should keep clear standards of criteria forjudging the performances of workers. Organization has to set up a reasonable criteria forevaluating performance of their workers. Adequate criteria can help in judging theperformance of workers for reasonable pay. Over the decades, it has been seen that employers have been using IndividualPerformance Related Pay (IPRP) as a method of reward for higher performance (Prince, 2011).The 3 main reasons that led to its positive contribution in the organization are-1.To retain their current skilled staff 2.Want to motivate and make new talents more competitive3.Fair means of distributionIt helps in enhancing the business performance by motivating workers to perform up totheir best efficiency in order to accomplish their desired objectives and goals. IPRP helps in
retaining employees as they feel satisfied on recognition of their performance by the organizationthrough pay system. The competitive spirit of new employees is encouraged by motivating themto serve better performance for the organization (Schweyer, 2010). Lastly, it has been seen that itis a fair means of distribution among all. IPRP is applied within Cavendish Hall Hotel by providing extra 1% increment in salaryirrespective of their performance. Furthermore, additional increment is also provided which isdirectly linked with the individual’s performance. The method was introduced to enhance theemployee's services leading to overall enhancement in organizational performance. But on thecontrary, results were not as expected by Daphne (Hult, Ketchen and Arrfelt, 2007). The surveyconducted by Daphne to gather their staff’s opinion was not satisfactory. The survey resultsproved the dissatisfaction among employees even after the introduction of IPRP as a method ofrewarding system. The hotel incorporates a wide range of services within its ambit likeconferences and banqueting facilities and popular wedding location. It also has different types ofemployees, that is, who work for full-time, part-time and there is temporary seasonal staff as wellacross its 5 departments. These divisions are events & banqueting, rooming & reception,housekeeping, food and beverages, HR and Administration. Performance criteria for all belonging to varied distribution are the same (Aguinis, 2009).Hotel must provide different criteria measurement for different departments to win their level ofsatisfaction from the organization. Barriers to effective implementation of IPRP schemeFor effective designing and implementation of individual performance related patschemes, numerous barriers can be recognized. However, it can be seen that the moral ofworkers get affected by providing different PRP’s. It is important for the organization to create astrong relationship between performance management and performance related pay. The key aimof establishing this method of performance management system is to assure the positive linkbetween individual work performance and consequent pay that is attached to their performance.With the adaption of this method, organization is able to encourage their workers to perform thegiven job effectively. This method helps in eliciting greater working efforts and maximizes one'sjob satisfaction (Ileana Petrescu and Simmons, 2008). This method is a tool that has a sortingeffect in terms of correct recruitment and retention of employees.
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