Reward Management Report: IPRP, Performance, and Hotel Strategies

This report examines reward management strategies within the context of the Cavendish Hall Hotel, focusing on the effectiveness of Individual Pay Related Pay (IPRP) as a performance management tool. It delves into the advantages and disadvantages of IPRP, exploring its role in improving organizational performance and its suitability within the hotel's business environment. The report also identifies barriers to the effective design and implementation of IPRP schemes, such as the cost of the system and the potential for weakened teamwork, and proposes alternative reward approaches, including Total Reward Systems, to complement or replace IPRP. Furthermore, the report addresses the importance of goal setting, feedback, and development plans, along with methods to manage poor performance, emphasizing the integration of organizational plans with employee roles and responsibilities to achieve overall objectives. The report concludes by highlighting the need for reward strategies, both monetary and non-monetary, to retain skilled employees and enhance overall hotel performance.

EXECUTIVE SUMMARY
Performance management is the technique through which capability, efficacy and potential
of employees can be found out. Several techniques and methods can be taken into account to
measure the potential of employees and all such methods should be justified for the situation. In the
present research study, researcher has discussed the effectiveness of Individual Pay Related System
on the basis of a case approach. Further, researcher has also discussed several ways through which
rewards can be delivered to the employees as per the performance level. Rewards are the best forms
of delivering monetary benefits to the workforce; hence in the present case, both the forms of
rewards have been discussed.
Moreover, researcher has discussed need of other management tools in supporting reward
strategies. Rewards as well as non-monetary both the sources seems to be imperative for the
management for subsequent hotel because that works in retaining skilled employees for future
business. Poor performance of the hotel is directly linked to performance management aspects
because employee give the best efforts when they are provided with different benefits from the
management. At the same time, it is also essential for the employer to integrate organizational plans
with employee roles and responsibilities so that overall aims and objectives can be acquired.

Table of Contents
Coursework 1 Reward Management Report........................................................................................3
Introduction..........................................................................................................................................3
Advantages and disadvantage of individual performance related pay as a performance
management tool in the hotel sector................................................................................................3
Role of IPRP in improving organizational performance.................................................................4
How suitable is IPRP to the business environment of the Cavendish Hall Hotel............................4
Barriers to the effective design and implementing of IPRP schemes..............................................5
Reward approaches which could be used to complement, or replace IPRP and why these may
work more effectively......................................................................................................................6
Coursework 2 Appraisal management report.......................................................................................9
Importance of goal setting and including feedback in the performance appraisal system .............9
Development plans and support.......................................................................................................9
Methods to manage poor performance at Cavendish Hall hotel....................................................10
How to develop hotel's performance with other management tools..............................................12
Conclusion..........................................................................................................................................13

COURSEWORK 1 REWARD MANAGEMENT REPORT
INTRODUCTION
Performance management is the concept which helps the business entities to evaluate the
efficacy of employee capability with the help of several measures and standards (Waal and Coevert,
2007). Thus, for such purpose, the present study has been made on Cavendish Hall Hotel which
provides wide range of services and is also popular for wedding purposes. In such context,
effectiveness of performance related pay and the possible barriers in implementing the same has
been discussed in the present study. Furthermore, several reward management strategies are also
stated through which organizational performance can be improved. Furthermore, in next section of
the research, researcher has stated the importance and effectiveness of objective setting, strategic
alignment and feedback. In order to enhance capability of the employees, the hotel has to undertake
several methods to manage poor performance.
Advantages and disadvantage of individual performance related pay as a performance management
tool in the hotel sector
What positive things IPRP system can bring to the hotel (Advantages)
In the present case, Cavendish Hall hotel can derive several benefits from the system which
are mentioned in the below section:
 Transparency management: Transparency can be managed in the business processes due to
focus on individual performance aspects. Each and every employee can get the idea
regarding their contribution in success and prosperity facets.
 Employee issues can be reduced: Issues related to employee misconception can be avoided
at the same time because IPRP system can assist Cavendish Hall hotel to specify things in
adequate manner.
 Clear structure for salary and incentive: Performance related pay is a way of managing pay
by linking salary progression to an assessment of individual performance and this is usually
conducted on the basis of pre-defined aims and objectives.
Disadvantages of IPRP system Extra cost of the system: To execute the system, Cavendish Hall Hotel has to invest
resources in the strategy execution process and allocating resources in such activity could
hamper budgetary aspects of the hotel. It weakens team work: IPRP system emphasizes on individual performance management
and it does not consider team management. Thus, the capability of the person can be
restricted to individual performance and he will not be able to contribute in team
management.
 Lack of team participation: Lack of team participation affects the overall sustainability of

the hotel and this may arise due to implementation of IPRP system.
Role of IPRP in improving organizational performance
Benefits of IPRP system to business performance
Better communication can be facilitated through implementing IPRP system at Cavendish
Hall hotel as employees will be able to determine the ways through which performance capability
can be encouraged. IPRP system is also beneficial in terms of managing clarity and transparency in
the business processes. If there is a link to pay, the increase or budget bonus will be spent on fair
basis for the purpose of motivating the employees in adequate manner. Proper performance
management system can assist Cavendish Hall hotel to increase the return or yield ratio and the
content of appraisals will help in managing manpower planning. Employees can also develop
adequate culture at the hotel where is yet another criteria for motivating the workforce.
How suitable is IPRP to the business environment of the Cavendish Hall Hotel.
Business environment is the combination of several internal and external factors that affects
business practices in affirmative and perverse manner. Through IPRP, employees will be able to
evaluate their performance level and they can also implement necessary changes in the performance
capabilities (Performance management system and employee’s job commitment, 2013). The major
aspect concerned with business environment is organizational culture which can be developed in
adequate manner only with employee support and collaboration. The process is beneficial for the
employees since through that, they will be able to produce optimum results for the hotel. The
process is highly suitable in terms of developing positive environment at workplace and as a result,
all the employees are able to produce better results in organizational practices (Rao, 2004).
Employee capability can also be encouraged with the help of proper performance
management system and through this, they can be rewarded with several monetary and non-
monetary benefits. Pay for performance has become a widely utilized means of improving
productivity and decreasing costs in the hospitality sector (Pulakos, 2009). Considering, traditional
way of performance management, it can be said that piecework is the oldest form of pay for
performance where in workers are paid for the number of finished products that they turn out during
a defined pay period. Execution of such system at Cavendish Hall hotel could include disincentives
as well. Thus, accordingly employees should be rewarded on the basis of work done by with within
a certain period of time (Miner, 2012). On the other hand, the theoretical arguments relating to IPRP
are not adequately supported by empirical evidence, whilst the practical research studies that have
been undertaken concludes that the entire success will dependent on employers and HR
practitioners of the hotel.
IPRP system would be beneficial for the hotel in a few areas; however due to diversified
departments, the system may not work as per the expected way. In the contemporary scenario, it is

difficult to manage motivation of all the employees; thus there should be clear and specific
dimensions determined for employee performance management. IPRP system would focus only on
individual's personal achievement; however the efficacy and competency of the workforce in a team
can not be ascertained with the subsequent IPRP system. Along with IPRP system, Cavendish Hall
hotel could think upon Reward system as that measures overall criteria from employee
performance. In modern business scenario, hotels and organizations have been emphasizing on
reward strategies and aspects because individual rewards are entirely concerned with organizational
performance and competency.
Barriers to the effective design and implementing of IPRP schemes
While executing the process (IPRP), Cavendish Hall hotel might face several issues from
other employees because of the criteria and parameters designed. Employee advice should be
included in organizational processes so that effectiveness ratio can be augmented. The parameters
defined for the process should be based on employee performance aspect (Marques, 2007).
Difference in opinion can hamper the decision making process related IPRP and this can also affect
the parameters defined for the concept. Cavendish Hall Hotel may face barriers due to these
specified reasons which are stated in the below section:
 Implementation of such process requires close monitoring where in employers have to
observe performance ability and effectiveness of employees by measuring with different
criteria and standards. Thus, employees working on senior level may refuse to adopt the
criteria because they have appropriate knowledge for managing their work (Latham, 2007).
 The process is considered time consuming and expensive because it involves measuring
employee performance on different grounds. Therefore, employer has to measure the
performance on the basis of selected criteria and since it is about every individual; therefore
it will definitely consume much time.
 Furthermore, issues may arise at the time of determining or setting benchmarks for IPRP
system. While deciding the benchmarks, several things should be taken into account; thus
this may create misconception among the managers (Fleetwood and Hesketh, 2010).
 Non availability of ample amount of organizational resources could also affect
implementation of the process and this may also influence hotel's productivity.
 Employee resistance is one such barrier that affects implementation process because
sometimes the criteria are determined on organizational basis irrespective of employee
preference.
Several other barriers that are appearing in the execution process of IPRP are stated in the
below mentioned section: Team structure of the hotel: Team structure of the hotel is considered as a barrier to the

IPRP implementation process where in, it is difficult to manage performance analysis of
individual due to diversified roles and responsibilities. Lack of financial and other resources: Cavendish Hall hotel is also facing problems
related to budgetary aspects; thus the hotel is unable to delegate financial resources in
requisite areas. Improper engagement of employees in organizational process: Employees of the
Cavendish Hall hotel seems to be disengaged in organizational processes; therefore lack of
active participation from the employees is yet one of the major barriers in strategy
execution process.
 Lack of proper understanding about reward system: Employees at Cavendish Hall hotel
do not have proper idea about the reward system; hence this state of confusion could lead
to other problems in strategy execution process.
Reward approaches which could be used to complement, or replace IPRP and why these may work
more effectively
IPRP System has been implemented at Cavendish Hall hotel for the purpose of enhancing
individual performance level. The issue of poor performance has been increasing in the hotel;
therefore changes in the existing systems are required. In order to improve the performance
management system, Cavendish hotel is required to bring reward system in the management so that
employee efficacy can be increased through varied benefits. Total Reward System should be used
by the management where in several criteria should be defined for the employees so that they can
reach towards the standard performance level. Monetary and non-monetary (rewards, recognition,
appreciation and incentives) benefits can be provided at the same time under Total Reward Policy.
The IPRP system should be completely changed to reward system. Performance of the employees
needs to be measured on the basis of these mentioned parameters:
 Employee contribution in goal accomplishment process
 Ability of employee in growth and achievement aspects
 Performance aspects
 On the basis of team and other management aspects
Thus, at this stage, it could be assumed that replacement of IPRP system with that to Total
Reward Policy might generate positive outcomes for the Cavendish Hotel. Such replacement would
help the management to frame clear dimension for performance management system.
Reward systems have been greatly contributing in enhancing efficiency of the employees as
rewards are the best source for encouraging morale of the employees. Thus, it can be said that there

should be adequate reward policy at Cavendish Hall hotel so that organizational productivity can be
encouraged (Reward Schemes for Employees and Management, 2015). Reward strategies can be
used as a compliment system by the hotel where in employees who perform in adequate manner
should be rewarded with suitable monetary and non-monetary (rewards, recognition, appreciation
and incentives). This is also beneficial in terms of improving their motivational level and as a result,
employers are able to retain the employees for longer period. Individual performance related pay is
the scheme where in employer provides monetary benefits to the employees as per their
performance level and to conduct the same, clear and comprehensive parameters are defined.
Reward approaches could replace IPRP because rewards can be provided for every work processes
which encourage employees to produce better results (Impact of Performance Appraisal Systems on
Employee Productivity, 2012).
It has been observed that hotels of UK have been providing numerous advantages to the
employees as per their contribution in success and prosperity aspects. Cavendish Hall hotel has
determined several criteria for rewarding the employees and on that basis; individuals are getting
monetary benefits (De Simone and Werner, 2009). While rewarding the employees, transparency
should be maintained so that employee interest can be protected and this is also essential for
promoting organizational processes. Reward is termed as the driver of performance management
and it is a major component fro employee motivation. There should be optimum criteria under
reward management so that employees can put their efforts in producing the best results for the
hotel. Moreover, this will not only improve employee skills but also it will accelerate Cavendish's
productivity and success facets (Collins and Clark, 2003).
Therefore, here Human Capital Theory can be interlinked with this approach which states
that human capital is the stock of knowledge, habits, social and personality attributes. Thus, all such
efforts develops the opportunities to produce economic value (Human- Capital theory, 1998).
Cavendish Hall hotel must give greater concern towards human resources because human capital is
a collection of resources which results in increasing organizational wealth and prosperity. Human
capital arises out of any activity able to raise individual worker productivity. For workers, it is vital
for the hotel to invest resources in human capital so that direct and indirect cost of all the operations
can be declined. However, on the other hand Human- capital theory has attracted much criticism
from sociologists of education and training (Chuang, Church and Zikic, 2004). Thus, from the
discussion, it can be said that rewards are much effective because it includes extrinsic and intrinsic
aspects. On the contrary, performance related pay scheme rewards employee with a financial
payment, either consolidated or non- consolidated. Cavendish Hall hotel can foster right behavior at
hotel because money is a potentially powerful incentive to influence the amount of effort that
employees will exert on behalf of the organization (Christensen, 2002).

Furthermore, motivation of employees is clearly an important factor for the overall
performance of the organization. The link between reward schemes and motivation is a complex
issue; thus to comprehend the same, Maslow's need hierarchy theory can be integrated with it
(Budhwar, 2000). Applying subsequent theory to reward schemes suggests that junior staff who
earn low wages will be motivated by receiving higher monetary rewards, as this will enable them to
meet their psychological needs. When employees of Cavendish Hall hotel will get progressively
high paid, then monetary rewards will become relatively less vital compared to other needs in the
hierarchy pyramid. However, to contradict the fact, Herzberg argued that increasing rewards only
motivates employees temporarily and once they become demotivated again, it is significant for the
employers to provide them other benefits (Brockbank and Ulrich, 2005). Thus, the author supported
that, a far better way to motivate employees is to find out what actually encourages human beings.

Executive Summary
The coursework is all about appraising the employees through rewards and monetary
recognition. Individual performance related pay system is beneficial for the employees since
through that, performance capability of individual can be found out through defined parameters and
standards. Performance management is the process through which capability of the employees can
be ascertained and through which adequate comparison can be made about employee performance
and efficacy. Poor performance is the main loophole that influences the capability of Cavendish hall
hotel; thus in order to manage the same, the subsequent section is emphasizing on different
management tools that measures employee performance. IPRP has direct relationship with
organization performance because the technique measures employee performance and rates as per
the capabilities.
COURSEWORK 2 APPRAISAL MANAGEMENT REPORT
INTRODUCTION
Performance appraisal is the method through which performance of employees can be
evaluated and through which they can be provided several benefits (monetary and non monetary).
The present study has been made with an attempt to analyze importance of goal setting and
feedback in performance appraisal system. Researcher has also discussed the need of strategic
alliance on organizational processes. Poor performance needs to be managed in adequate manner
and the concept has been discussed in the subsequent study through providing rewards and
monetary benefits. Further, role of other management tools have also been mentioned in the
research study concerned with reward system.
Importance of goal setting and including feedback in the performance appraisal system
While executing performance appraisal system, Cavendish Hall hotel must have to develop
several objectives so that accordingly performance of the employees can be measured and evaluated
(Christensen, 2002). With the help of appropriate goal setting, employees can get assistance to
perform in better manner. Objectives should be determined prior executing any process in the hotel
because that gives adequate direction for managing diverse activities. On the other hand, it is vital
for the employers to include feedback as well in the subsequent process so that employee advice can
be taken into account. This is another criteria through which employees can be motivated and
encouraged to produce better results and outcomes. Performance appraisal can be taken into
monetary and non monetary methods as the basic aim of the concept is to boost the morale of
employees for better productivity (Latham, 2007).
On the other side, each and every employee of Cavendish Hall hotel should be informed
about organizational processes so that they can give their preferences as well in the existing

performance management process (Rao, 2004). Strategic goals are essential for the processes
because that helps the hotel to determine adequate standards according to which goals and
objectives can be acquired. Cavendish hotel is also required to consider feedback of employees and
according to that, certain changes should be implemented in the performance appraisal method.
This is also vital in terms of managing employee interest in organizational practices. Performance
appraisal is a part of performance management where in employer analyzes efficacy in employee
performance and on that basis rewards and monetary benefits can be provided (Schubert, 2015).
While accessing the performance of employees, it is essential for the manager to
communicate the aspects through which performance will be evaluated and that also aids in
motivating the employees towards better productivity (Waal and Coevert, 2007). Employee
performance is such aspect through which the ability to retain potential customers can be identified
and this is highly essential for Cavendish Hall hotel. All the employees should be provided the right
to ask for the criteria on the basis of which there performance has been evaluated. Performance
evaluation should be made on adequate criteria and there should be similar parameters defined for
all the employees so as to maintain equality management for employees. Therefore, as per the
system, employers can also identify those employees who are performing below the average line.
Thus, accordingly several methods can be adopted to improve the performance level of the
employees (Holmes, 1997).
Development plans and support
Every individual require transparency in performance management system; thus individual
performance related pay technique would be highly appreciable for Cavendish Hall Hotel and
according to such method, capabilities of the employees can also be enhanced. The efficacy and
performance of the hotel can be improved through paying adequate amount of support to the
employees (Paying for Performance New trends in performance-related pay, n.d). Employees of the
hotel will be able to derive optimum benefits from the management as per their contribution in
organizational success and prosperity. Implementing IPRP process can assist the hotel to rate the
performance of employees and through this, adequate ranking can also be given to employee
performance (Schubert, 2015).
Implementation of the system can enhance the efficacy of the employees as they will be
more motivated to produce better results for hotel's success and growth. Execution of the policy will
also improve employee motivation and as a result, better culture can be facilitated in the hotel entity
(Impact of performance management system on the employees, 2003). There are a few areas in the
hotel business that are concerned with employee performance; thus for such aspect clear structure
should be developed for performance management. Appraisals and recognition both are considered

the best source through which employee capabilities can be accelerated. Hence, this has a direct and
affirmative impact on organizational performance (Sahu, 2009).
Methods to manage poor performance at Cavendish Hall hotel
It is an apparent fact that there are several employees who are unable to reach towards
organizational standards; thus for those employees, different modes could be taken into account. It
has been seen that several quality issues are arising in the hotel which is increasing customer
complaints and alongside this reduces room occupancy (The Impact of Performance Management
System on Employee performance, 2004). These issues are arising because of those employees who
are under performing. Hence, to manage the same aspect, several modes can be adopted where in
employees should be guided properly so that according to the defined standards, they can perform
their job roles. There should be direct communication among the management and the employees so
that proper rating can be given to employee performance. Employers must have to give feedback to
the employees regarding the areas where they are under performing (Collins and Clark, 2003). In
order to enhance capability of the employees, it is imperative for the management to change the
way of measuring and evaluating the performance of employees; hence for that evaluation
techniques can be changed.
Cavendish Hall hotel can adopt Balance Score Card so that performance of the employees
can be measured and rated on the basis of defined parameters. With the help of Balance Score Card,
performance of the employees can be compared with others so that they can also put their best
efforts in goal accomplishment process (Schubert, 2015). Furthermore, to manage poor
performance, it is essential for the employers to observe the performance of employees so as to find
out the areas of improvements and modifications. Employees can also made clear discussion with
each other regarding the ways which can be adopted to increase performance level. Apart from this,
management of Cavendish Hall hotel can also adopt Rating Scale where in employers as well as
peers needs to give rating to employee performance on the basis of standard criteria. At the same
time, rating scale will also assist the hotel entity to access the need for training and other
development (The Impact of Performance Management System on Employee performance, 2004).
This is essential in terms of increasing organizational capability and productivity.
Furthermore, poor performance can be managed by providing motivation and
encouragement to the employees regarding the job roles so that they can put their best efforts in
eradicating hotel's issues. From the case approach, it has been observed that Cavendish Hall hotel
has been facing issues related to customer services; thus those employees who are managing these
services should focus on improving the service provision. This is suitable for the purpose of
retaining customers for longer span (IMPACT OF PERFORMANCE MANAGEMENT SYSTEM ON