Performance and Reward in ACU Hotel: Analysis and Suggestions

This report provides a critical evaluation of the individual performance-related pay (IPRP) system implemented at ACU Hotel. The analysis begins with an introduction that outlines the core issues of employee satisfaction and hotel performance. It then delves into a critical evaluation of IPRP, explaining its significance in linking employee compensation with their performance. The report examines the current scheme at ACU Hotel, highlighting its shortcomings and negative impact on employee morale and overall hotel performance. The study further provides recommendations to improve the IPRP system, including increased pay, regular seminars on workplace conduct, and better training for employees. The report concludes by summarizing the key findings and emphasizing the importance of IPRP in enhancing organizational performance and customer satisfaction. The report provides a comprehensive overview of the hotel's challenges and offers actionable strategies for improvement.

Running head: Performance and reward human resources
Performance and reward human resources

Performance and reward human resources
Table of Contents
Introduction.................................................................................................................................................3
Critical evaluation of individual performance related pay...........................................................................3
Current scheme...........................................................................................................................................4
Recommendations.......................................................................................................................................5
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8
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Performance and reward human resources
Introduction
The report talks about the way an organization functions with Individual Performance Related
Pay method. The report is focusing on the functioning of ACU Hotel. It talks about the current
scheme that is followed in the hotel which is not effective and has hampered the position and
image of the organization. The description of IPRP in the report shows how it is important for
the organization to focus on the activity of each and every employee. There are
recommendations provided in order to improve the condition of the workers in the hotel. The
case study shows how the hotel is suffering in satisfying its employees, which ultimately affects
the growth of the hotel. The report draws the method of individual performance related pay
(IPRP) to show how an organization should maintain a satisfactory environment for its
employees.
Critical evaluation of individual performance related pay
IPRP stands for Individual Performance Related Pay that takes care about the payments given to
the employees for their efforts and work. It is a method of managing payments of the employees
by linking their salaries with their performance. Each and every employee is seen as an
individual by the company. They are paid for their work according to the job they are assigned
and the task they perform. IPRP system helps in managing the business effective and efficiently
by taking care about the employees working in the company. Before hiring the employee the
company checks the background and qualification level of the workers. It generally means
compensation based on every individuals performance (Reiche et al, 2016). The pay given to the
employees also helps in improving their performance. It encourages them to manage the risks
that can develop anytime in the company. IPRP is considered to be reward system that can have
great impact on the working of the employees. The term relates with the monetary transactions in
business that takes care about the business functions. It helps in evaluating the performance of
the employees and paying them accordingly. If the performance of the employees is better then
payment allotted to him is also great. IPRP designs the payment structure for the members of the
company. It is associated with management process where the pay of the employees is allotted
annually and is increased significantly (Shields et al, 2015).
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Performance and reward human resources
Individual Performance Related Pay is an effective way of managing incomes of the employees
of ACU Hotel. The pay given to the employees is designed as per their designation. The wages
depends on the level at which an individual work. The employees work under different jobs like,
receptionist, room service, laundry service, etc depending on the number of customers that
comes to the hotel (Banerji, 2013). The wages of the employees therefore depends on their
designation like the manager is paid the highest and other services that are given by the
employees are generally paid less. The IPRP system works effectively in the hotel and gives
greater results in profit making. It can also be considered as a strategy made by the authorities of
the business for motivating the employees to put their best efforts in providing service to the
organization and service to the hotel. Somewhere the hotel is having the downfall in the business
and due to less effective workforce as the hotel is unable to fulfill the requirements of the
business. The use of IPRP method is not effectively managed by the hotel and hence employees
have been giving negative reviews for it (Katou, 2016).
Current scheme
The condition of the organization is not good at all. It has various drawbacks that enable the
hotel to achieve its target. The hotel is not at a good position due to lack of technical
advancements and bad facilities. It is unable to meet the requirements of the customers (Van den
et al, 2013). Thus, the current scheme may be having a limited impact on performance of the
employees at the ACU Hotel.
The current scheme followed in ACU Hotel is not effective as the employees are dissatisfied
with the payment method of the hotel. The scheme gives relatively less amount to its customers
that it should provide. This creates dissatisfactory results in the workers and hence they end up
doing wrong work which has no results. The scheme is not at all effective as it does not provide
good results to the hotel. The reason behind bad results is because company fails to fulfill the
expectations of the employees (Gupta and Shaw, 2014). ACU Hotel has inappropriate approach
towards the functioning of business. The case study shows how hard the staff works to achieve
the desired goal but fails. This problem arises due to lack of professionalism in the management.
The reviews of the customers show the bad service that the hotel gives to its employees (Wilton,
2016). This creates dissatisfaction among the customers and they do not feel of visiting the hotel
again. This is the reason that the current scheme of ACU Hotel fails to fulfill its target. The target
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Performance and reward human resources
of every hotel or an organization is to attract more and more customers towards it, but bad
service provided at ACU Hotel to its customers becomes its downfall. The condition of the hotel
is not good such as, the lights were broken, slow process, and no fresh juices, etc. were a flaw of
the hotel. This shows that the hotel was not up to date and it is untidy. The declining room
occupancy was another drawback for the hotel which restricted customers to check in into the
hotel. These areas show the lack of management by ACH Hotel. The scheme of the hotel for
providing services to its customers is not effective and one cannot assume it to be a great hotel.
The leniency given to the employees at the hotel is the major cause of ineffective business. The
case study shows that around 83 percent of the staff was not motivated and 92 percent of the staff
showed that the reward system was not effective (Cardona and Morley, 2013).
Hence, it is really important for the hotel to change the scheme in order to show some
betterment. The current scheme is not effective and does not provide profits to the hotel. The
hotel has incurred losses and is unable to achieve the target due to lack of professionalism at the
work place due to untrained employees (Paauwe, Wright and Guest, 2013).
The case study shows the harsh conditions that were faced by the hotel. The strategies of the
organization are not good enough to make a healthy environment for its customers. The hotel is
full of inappropriate service and facilities. Therefore, it is difficult to make profits (Bratton and
Gold, 2017).
Recommendations
Recommendations are type of suggestions that provide to the company to run its business
effectively and efficiently. The recommendations suggested below show how ACU Hotel can
transform its business from losses to generating profits. If the hotel is able to stand on these
recommendations, it will become easy for it to achieve their desired target.
 In order to avoid the inefficiency caused by lack of payment method in the hotel can be
solved if the hotel manages to perform its duties well enough by paying its employees
with satisfaction. It is recommended the IPRP system is effectively followed in an
organization only when an individual is examined for his work. The strategies involve
maintaining and managing the task by the employees. It is recommended that hotel
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Performance and reward human resources
should increase the pay of the workers. This will help the management in motivating the
employees to work in discipline and be sincere towards the work.
 In order to maintain harmony in the business, the management can organize routinely
seminars and conferences where they can discuss about how an employee should behave
in the organization. The seminars can cover the topics such as loyalty and morality in the
workplace, effective approach in working, etc.
 The problem of lack of professionalism is one of the major threats for the company in
attaining its profits. To avoid lack of professionalism, it is suggested that the hotel can
hire qualified employees and train them. This will avoid the chances of creating errors in
the management (Marler and Fisher, 2013).
 The management should provide best services to its customers. This will make the
customers happy and they will recommend the hotel to everyone. This in turn will
become a benefit for the hotel in making profits by attracting more and more customers.
 The home service given to the customers must be polite. The employees hired for the job
of room serving must be polite in nature and should be ready to work at any time when
called. The betterment in the room service shall be done by the management to attract
more clients in the hotel. This will make the management run on a greater level (Storey,
2014).
 The employees must be trained enough to serve the customers with better facilities. They
can be paid high wages which will encourage them to work more and put their best
efforts. This is one of the greatest suggestion that hotel can follow today. They can also
provide incentives to them if they work hard to maintain good environment of the hotel.
 The hotel can run in partnership so that it cannot be a burden on an individual to pay the
cost of rent. The problems can be solved with mutual consent. This will be less time
consuming and can give number of solutions to the business for a single problem (Varma
and Budhwar, 2013).
 The management can release offers like giving discounts on the rooms, giving free
supplements on the bookings, etc. to attract customers. Giving advertisement is another
way of promoting the business. This will ensure the business existence in the eyes of
more and more public on a larger level (Armstrong and Taylor, 2014).
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Performance and reward human resources
Conclusion
The report concludes by recommending the important strategies that is necessary to bring
positive changes in the environment. It shows that Individual Performance Related Pay is very
significant and adds value to the reputation of the management. IPRP helps the organization in
giving great performance and obtain good results. But this is not seen in the hotel because of
ineffective approach of the management towards its employees. The report shows that the
condition of the hotel is not good and has no proper facilities to provide to its customers. Hence
the report further gives recommendations to improve the level of performance of the hotel by
increasing their pay according to their work. The case study presents an inappropriate scheme
that the hotel follows and therefore this reduces their reputation. To carry out the solutions for
these problems it is necessary for ACU Hotel to follow the method of IPRP positively.
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References
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Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals).
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