Impact of Reward Management on Performance

This assignment examines the influence of reward management practices on organizational effectiveness. It delves into various aspects such as stakeholder perspectives on mission statements, change management strategies, and the relationship between people management practices and performance. The analysis considers both theoretical frameworks and empirical evidence, drawing upon a range of sources including academic journals, books, and online resources.

Business Health Check
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
a) Analyses Shearing's history with their short and long term objectives...................................3
b) External influences on the business.........................................................................................4
c) Possible options for improvement to the company and its operations using Ansoff's Matrix 7
TASK 2............................................................................................................................................8
a) Effectiveness of business.........................................................................................................8
b) Plan for company's future development................................................................................10
TASK 3..........................................................................................................................................11
a) Current skills, experience and abilities of Shearing management and staff..........................11
b) Devise and justify plan for the development of skills of management and staff...................13
CONCLUSION..............................................................................................................................16
2

INTRODUCTION
In the present environment all the businesses have certain strengths and weaknesses that
need to be assessed properly so that they can easily develop and grow their business activities in
the competing scenario (Rothwell and et.al., 2012). Therefore, it is significant for the
organization to address all the weaknesses in order to gain long term sustainability within the
environment. Thus, it is said that business health check is consider as an effective aspect that
checks all the operations and activities of the organization. Travel and tourism sector is booming
in the present context as with the change in requirement and needs of the travellers businesses
are modifying their services to meet their requirement. Along with this, company also operates
their coach holidays in the different 17 regions (Sayım, 2010). The structure of company is based
in Wigan and the reservation of travel services is directly made through their online websites,
high street authorized store of the tour operator as well as it also make reservation via telephone
services.
For successfully conducting the report selected organization is shearings Holidays one of
the leading UK company that specializes in devising packages related with the coach study that
mainly aims as targeting the older people. Along with this, the company also deals in providing
the services related with cruise holiday as well as coach based trips. On the other hand, report
will also develop understanding the way through which the progress of travel and tourism
business can be checked and direct the business or company for attaining the leading position.
While, it also focuses on analysing the different factors that affect or influences the activities of
travel and tourism business.
TASK 1
a) Analyse Shearing's history with their short and long term objectives
One of the leading tour operator within the UK is Shearings Holidays that mainly focuses
on offering coach holidays to their target customers that older people. The company mainly offer
the holiday packages within and outside the UK (Sun, Aryee and Law, 2007). The leading tour
operator also have assets of 300 coaches within including chain of 44 hotels with 8 high street
authorized shops. The company also offer the holiday products related with exploring UK and
Europe, Discovering Europe, Cruise Europe and Classic hotels.
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In the past years that is in the year 2005 when it was formed Shearings Holidays was
known as the WA Shearings (WAS) as it has merged by Coach Holiday Group whose owner
name was Wallence Arnold by which the company got name WA Shearings. The key business of
the cited organization is in operating and formulating the coach tours within the UK, Irish
republic as well as Continental Europe. Along with this, company also operates their coach
holidays in the different 17 regions (About Us, 2016). The structure of company is based in
Wigan and the reservation of travel services is directly made through their online websites, high
street authorized store of the tour operator as well as it also make reservation via telephone
services. The range of services that are offered by the cited tour operator is related with air, rail,
coaches to the different destinations in the UK, Europe and other countries. As, the tour operator
is leading company in Europe that deals in offering range of travel services to their customers
(Shearings Holidays - Late Deals and Special Offers, 2016). Along with this, the company also
own different hotels in UK so that they may provide great experiences as well as
accommodations to their customers.
In the present competitive scenario, for growing and developing the business it must
requires setting short as well as long term objectives and goals so that they may easily sustain
their position within the travel and tourism industry (Slater, 2010). The short terms goals are
consider as essential steps that are required in accomplishing the long term goals. For instance,
Shearings short term goal is to enhance the marketing budget of tour operator for the next 4
months. Therefore, this short term goal will support the long term that is double the revenue of
business at the end of assessment year. Along with this, short term objectives of Shearings
Holiday is to design the questionnaire as well as survey so that it may results in gaining adequate
feedback from the customers. Another short term objective of the Shearings company is to
engage in granting appreciation to their employees so that they can easily perform effectively
within the establishment (Elsevier, 2013). On the contrary the long term objective of Shearing
company is to attain competitive positioning within the industry that results in increasing return
on investment to their investors and shareholders.
b) External influences on the business
It has been investigate that external environment has mainly influences and impact the
business activities (Erixon, 2011). There are different factors existing in the external
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environment that need to be consider by the Shearings Holiday for sustaining in the competitive
environment.
PESTLE Analysis Political factor- The foremost external influences on the business activities of Shearings
Holiday is increasing rate of taxation as well as high cost of applying visa as well as air
passenger duty that mainly impact on cancelling the bookings by the travellers and
visitors that impact their activities (Learning, 2005). Economical factor- Another external factor that impact the business activities is
economical factor it mainly include increasing economic growth in the tourism sector that
incline towards increase in the demand of tourism activities among the travellers and
visitors. On the other economical factor also include eurozone crises along with increase
in the fuel prices will change the consumer patterns towards purchasing the travel
activities and services of the Shearings group (Matthews, 2005). Social factor- Another external environmental factor that impact and influences that
activities of Shearings group include social factor that is change in the needs and
requirement of customers that is customers are increasing to prefer travel services in the
different destination that results in increasing the booking or reservation of the air and
coach tickets. Technological factor- This factor plays significant role as it positively and negatively
affects demand of tourism within the UK economy. In the modern-day, travellers are
keen concerned in using technical aspect within the transaction that is they might choose
to reserve the travel services via their online websites (Nimwegen and et al., 2008). On
the other hand, reserving flight or coach tickets via online medium also results in
attaining negative impact that is it results in disclosing the personal information respect
with the customers may lead to fraud. Legal factor- Another external influences on the activities of Shearings group is legal
factor UK government has framed different legal acts and policies that need to be
imposed by the cited firm to meet the legal requirement of the company. Environmental factor- Last external environmental factor include environmental factor
that is with the increasing sustainability the company is engaging in the concept of green
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tourism that results in developing their activities and operations that results in reducing
the rate of emission and pollution in the environment (Fernando, 2011).
Porter's five force models
Five Forces Characteristics
Threat of new entrants The foremost force within the model is threat of new entrants that
is relatively low within the travel and tourism sector as to enter
into the tourism market companies require huge fixed cost as well
as initial investment to be succeed in the competitive market
(Vining, 2011).
Buyer bargaining power Another force include bargaining power of buyers that is
relatively high in the industry. As there are standardized travel
products and services are offered by the Shearings company as
well as there is low switching costs.
Threat of substitution Threat of substitution is also high in the travel and tourism
industry as there are different companies that are offering similar
travel services to different customers. Along with this, rise in the
low-cost carrier as well as tour operator it results in substitution.
Suppliers bargaining power With the travel and tourism industry that bargaining power of
supplier is at medium rate as there are large number of enterprise
that supplies quality and leisure services to their different
customers (Yan, 2009).
Rivalry among the existing
competitors
On the other hand, the rivalry among the competitors within the
tourism industry is high as there are giant firm existing in the
industry that deals providing leisure and luxurious travel services
to their customers.
SWOT Analysis
Strength Weaknesses
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 Strong brand image
 Initiating for green destination
 Strong presence in the UK and
European region as one of the largest
tour operator of Europe (Lync, 2010).
 Less variety of travel services.
 Over-dependence of company in the
European marketplace.
 Financial debt
Threat
 Increasing level of competition in the
travel and tourism industry.
 Establishment of low cost tour
operators.
 Increase in the fuel cost
 Existing trade barriers
Opportunities
 Technical innovation support in
enhancing their business activities
 Strengthen the existing market place
(Mintzberg, Ahlstrand and Lampel,
2008).
c) Possible options for improvement to the company and its operations using Ansoff's Matrix
Through considering the detailed internal analysis of Shearings Holiday with the help of
SWOT analysis being consultant would support in checking the health of business (Patron,
2008). Therefore, to sustain in the competing environment consultant must focuses on suggesting
possible option to the tour operator so that they can strengthen their identified strength and
opportunities to sustain in the environment. In order to improve the activities of the cited
company and their operations consultant would focus on using Ansoff's Matrix that support the
company in attaining competitive edge within the industry. Ansoff's matrix basically focuses on
the four different growth strategies that is- Market penetration: The key growth strategy is market penetration where the business
focuses on offering similar products in the existing marketplace. With the help of
following this growth strategy within Shearings Holiday it strengthen the existing market
with the help of using different strategies that support in increasing sales of their existing
services and travel products (Paul and Anantharaman, 2003). For instance, with the help
of using effective pricing strategies, advertisements, sales promotions etc. that enhances
the existing market share.
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 Market development: Another possible option for attaining growth within the Shearings
Holiday group is engaging in the market development activities. Under this growth
strategy tour operator focuses on selling their existing and current travel services in the
totally new market (Porter, 2004). There are various ways with the help of this tour
operator can easily approach to this strategy that is through engaging in exporting their
travel services to the another geographical location. Another approach for the market
development is engaging in new distribution channels that engaging its services on the e-
commerce platform so that they can enhance their reach. For instance, expanding their
business activities in the new market through establishing or setting their new store in the
new location. Product development: Another growth strategy within the Ansoff's matrix is product
development, cited organization must engage in development of their activities through
engaging in product/service development (Handlechner, 2008). Using this possible option
Shearings company can easily aims to introduce new range of services in the existing
market so that they can easily attract the customers towards their new travel products and
services. Along with this, product development growth strategy is beneficial if the
customers and travellers requirement are constantly changes with the change in their
income level (Hermann, 2009).
 Diversification: The last growth strategy within Ansoff matrix is diversification that
primarily assists the business to expand new product totally in the new market so that
they can meet the diverse requirement of their customers and visitors. This strategy
mainly inherent the risk as the Shearings company is entering into the new market and
the company has no experience in the new market. Therefore, it is assessed that it is risk
taking strategy that support the organization to gain competitive edge among their rival
companies. Shearing company might use this strategy through differentiating their
products through using integrated marketing techniques (Dobkin, 2007). Along with this,
cited organization must also engage in designing effective travel service and promoting
then through effective marketing channels.
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TASK 2
a) Effectiveness of business
The effectiveness of business mainly reviewed through assessing the following activities
such as-
Products/services
Shearings Holiday one of the leading European tour operator that basically delivers the
coach services within the 'Grey Market'. Along with this it has been also reviewed that company
also deals in offering range of travel services related with coach, air, rail, cruise so that they can
easily meet the requirement and need of the travellers (Doole and Lowe, 2008). Along with this
cited company also offer the coach fleet that basically consists of 240 coaches that meet the
requirement of senior customers. The products and services offered by the Shearings holidays
only target the senior customers as they are aware that age group of 54+ is likely to visits
different destination. Along with this, the travel products of Shearings company also include tour
packages to the Ireland and North of Scotland via flights or coaches that is consider as an
effective part of the itinerary.
Marketing
The key market segment that is targeted by Shearings Holiday are the 'Mature' tourist that
include customers with the age group of 50+ as it has been assessed that senior people are more
tended towards taking the holiday. With the help of marketing cited organization can easily
promote their travel products and services in the target market (Ferrell and Hartline, 2010). It has
been assessed that some of the customers prefer to book the services of Shearings company via
using online platform and others prefer to book the travel services via travel agents. On the other
it has stated that marketing activities plays signifiant role in promoting and maintain long term
relationship with the customers. It has been also reviewed that marketing activities that is used
within the citied firm is word of mouth marketing as it is consider as an effective activity that
support in floating positive comment in the marketplace (Moon, 2013). On the other hand,
company also use e-marketing strategies for promoting and marketing their travel services within
the target market.
Finance
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The Shearings company is leading tour operator within the European region that support
in gaining huge revenue and finance that further support the company in strengthening their
financial position (Rodrigues, 2005). The reviewed sales of Shearings is £200 million. In the
year 2006 company involved in the re-financing that was around £25 million from the bank and
finance around £78 million from selling their leaseback hotels. Therefore, it is also reviewed that
re-financing deals were come into the existence after conducting merger between the Shearings
and venture capital firm that is 3i that left cited company in attaining the financial debt.
Staffing
It has been reviewed that success of tour operator mainly depends upon the activities and
services provided by the staff to their customers (Rothwell and et.al., 2012). The cited tour
operator company employs around 3000 of staff that basically serve the numerous of customers
that is around 3 million. Shearings company mainly target the over age group customers that is
customer with age group of 50+ as they are the one that primarily prefer to choose the travel
services. In order to meet the satisfaction level of customers and provide quality of travel
services the cited organization is member of CoachMarque that is established by Confederation
of Passenger Transport (CPT) it is an association that represent the representatives of Britain bus
as well as rail operators.
b) Plan for company's future development
From the review of the effectiveness of the Shearings company through assessing their
products/services, staffing, marketing activities and finance it has lead the consultant to engage
in the planning activities that support them in their future development (Sun, Aryee and Law,
2007). Along with this, reviewing the effectiveness it also support in considering the different
internal and external issues so that with the help of future development it may results in avoid the
issues and benefit the company to sustain in the competitive environment. The key internal and
external issues that often arises include improper management of the financial resources within
the company, increasing situation of financial debt, not clearly stated the roles and
responsibilities of the staff and employees rendering services within the cited organization etc
(Slater, 2010). The certain recommendations include- Financial management systems- The foremost recommendation is to engage in the
implementing financial management systems so that they may easily avoid the situation
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of financial debt within the cited firm. Through reviewing the financial activities of the
company it has been assessed that company is engaged in attaining the financial debt that
is negative for the organization (Elsevier, 2013). Therefore, to avoid the proper
management of finance and avoiding the situation of financial debt company must engage
in implementing the financial management systems. Recommendations of financial
management systems would support in improving the performance of business through
eliminating the error and engaging in the budget planning so that they can easily lowers
the expenses and keeping track of their liability (Erixon, 2011). Along with this, system
also supports in integrating the functional activities of the cited organization with the
financial resources so that it may easily avoid the duplication of activities within the
organization. Roles and responsibility of staff- Another recommendation for engaging in the future
development within the Shearings Holiday is that to ensure proper devising of the roles
and responsibilities of the staff and employees those who are rendering services within
the tour operator (Learning, 2005). The clearly stated roles and responsibilities of the
staff would support them in rendering effective services to the customers so that they may
gain adequate knowledge and information regarding the services that are offered by the
cited company. As the staffing within the company are the members of different
association deals in providing the standard services (Matthews, 2005). Therefore, to meet
the changing requirement and needs of the customers it is essential for the management to
engage in clearly stating the roles and responsibilities of the staff.
 Forecasting activities- In order to lead the company towards the future development with
overcoming the certain issues it has been recommended that management of Shearings
company must focuses on predicting and forecasting the different activities of tour
operators so that they can easily manage and organize the activities (Nimwegen and et al.,
2008). The forecasting of the activities mainly include predicating the marketing and
sales volume so that they can easily engage delivering the quality travel services to their
customers.
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TASK 3
a) Current skills, experience and abilities of Shearing management and staff
Through reviewing the effectiveness of company's staff finally consultant would outcome
in considering the current skills and development needs of management and staff within the
Shearings company (Fernando, 2011). The current skills, experience and abilities of Shearings
management and staff results in-
Management personnel
Current experience  Experience within the travel and tourism organization.
 Individual may have minimum 2 years of experience in the field
of management.
 Individual current also have experience of online booking
systems (Vining, 2011).
Skills  The key skills that are required by the management personnel of
Shearings Holiday is social skills and organizational skills.
 Social skills mainly focuses on communication skills that
support them in conveying the strategies and actions of
company to the staffs.
 Another skill is organizational skills that basically include
planning, prioritizing of the work, multi-tasking skills, decision
making skills that benefit the Shearings holidays (Yan, 2009).
 Shearings management personnel must also have managerial as
well as technical skills so that they can easily render proper
services within the tour operator company.
Assess the target sets  The current set targets of tourism management personnel is to
provide strategic leadership so that company can easily lead
towards attaining the ultimate goals and objectives of the
company.
 Another target of management personnel is to engage in
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operational management activities.
 Maintaining the overall budget so that they can devise the
holiday packages (Lync, 2010).
Staffs and employees
Current experience  The current experience that tourism employees and staff possess
is related with providing effective travel services to customers.
 The current experience of staff also focuses on the dealing with
the customers different travel needs and requirement
(Mintzberg, Ahlstrand and Lampel, 2008).
 Along with this, the current experience of tourism staff also
include providing good services to the visitors and travellers.
Skills and Abilities  The key skills and abilities that is possess by the Shearings staff
is related with problem solving skills. The staffs within the
company are directly in contact with the customers therefore, it
is essential for the individual staff to have effective problem
solving skills.
 Another skills that staff have is effective communication skills
as they are the one that are directly in contact with the
customers and visitors so that they can effectively meet the
requirement and need of the clients (Patron, 2008).
 Maintaining the data of their customers
 Tourism employees also have technical and operational skills so
that they can easily perform their activities.
Assess the target sets  It has been assessed that key target of tourism employee is to
promote and market their travel services to the customers and
visitors.
 Another target set of Shearing employee is to increase the sales
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of their travel services and products.
 Handling booking of tickets, invoicing and issuing the tickets.
 Producing online brochure
b) Devise and justify plan for the development of skills of management and staff
With the adequate knowledge of current experience of management and staff personnel
of Shearings Holiday company they would also focus on outlining the plan for future skills
development (Personal development review, 2013). Thus, it support in rendering quality and
effective travel services to their customers. The future skills development include-
Management personnel
Future skills
development
Development opportunities Resources required Time period
Leadership skills  Taking initiatives
 Engaging in critical thinking
 Listening effectively to the
problems of staff
 Motivating staff and other
personnel
Employees
Employers
1 week
Problem solving
skills
 Key focus on the solution
not on the problem
 Management problem have
an open mind
 Think laterally
 Using language
 Identifying the key problem
Customers 2 weeks
Time
management
skills
 Prioritizing the tasks and
activities
 Delegating less important
Physical resources 1-2 weeks
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activities to the lower level
personnel
 Creating checklists
Technical skills  Attending seminars and
conferences
 Gaining practical sessions
for enhancing the technical
skills
Conference room
Technical equipments
and tools
1 week
Staff and employees
Future skills
development
Development opportunities Judgement criteria Time period
Communication skills  Constant
communication among
the customers and
colleagues
 Effective listening skills
 Engaging in using body
language
 Lesser
mismanagem
ent
 Lesser
misinterpreta
tion
2 weeks
Stress management
skills
 Engaging in
brainstorming session
 Constant
communication among
the customers
 conducting activities for
relaxation and reducing
the stress level of
employees
 Reduction in
the stress
level
 less
conflicting
situation
1 week
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Market research skills  Reviewing books and
articles
 Engaging in surveying
customers
 Assessing proper
market
Assessing the
satisfaction level of
customers.
1 week
Team building skills  Focusing on conducting
group discussion.
 Formal and informal
meetings
 Engaging individual
staff in the meeting and
reviewing their views
and thoughts.
Through feedback
taken from the
managerial
personnel.
1 week
Development plan made for the staff and management can be evaluated on the basis of
several criteria and parameters and a few are discussed in the below section:
 Development plan made in the above section clearly depicts that staff as well as
management needs to focus on more development so that they can manage their work
processes in appropriate manner (Paul and Anantharaman, 2003). This is also essential
for the purpose of enhancing the efficiency and productivity of the individuals of the
organization. It has been evaluated that after the development plan, employees of
Shearings Holiday are able to develop personal contacts with the clients which is yet
another aspect of constructing suitable relations with the clients.
 The staff members are also keeping record of each and every aspect through focusing on
the development facets. Since, it is a tour operator; therefore it is vital for the business
entity to develop a database so that appropriate relationships can be developed with
them (Porter, 2004). Along with this, it has also been evaluated that staff members need
16

to keep record of each and every aspect for the purpose of avoiding duplication of
activities.
 The development plan clearly states that staff members need to give suitable assistance
to the end users so that they can become more loyal for Shearings Holiday. This can be
considered as a beneficial dimension for the business entity. Proper communication is
being developed with the clients so that they can make use of the services in requisite
manner.
 Thus, from the entire discussion it is evident that staff members and management both
should comprehend the value of further development (Handlechner, 2008). It not only
bring productivity in the work aspects; but also it generates more opportunities for
professional and personal development. Henceforth, Shearings Holiday is able to retain
more number of customers through advanced services delivered from the clients.
CONCLUSION
The aforementioned report summarizes that it is significant for the organization to
address all the weaknesses in order to gain long term sustainability within the environment.
Thus, it is said that business health check is consider as an effective aspect that checks all the
operations and activities of the organization. Along with this, different models that are used by
the organization for measuring the external environment that mainly include PESTLE analysis as
well as Porter's five force model. The PESTLE analysis focuses understanding the key external
factors that directly and indirectly impact the business activities and operations of the Cited
organization. On the other hand, internal environment of business has also been measured
through conducting SWOT analysis that is analysing the strength, weaknesses, threat and
opportunities of the existing firm. Along with this, report has also sum up the evaluation of
current skills and abilities of the management and staff so that management and staff can easily
perform their services and activities. It has been also assessed that development plan made in the
above section clearly depicts that staff as well as management needs to focus on more
development so that they can manage their work processes in appropriate manner. This is also
essential for the purpose of enhancing the efficiency and productivity of the individuals of the
organization.
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