CIPD Reward Management: Hotel Atlas Case Study & Analysis

This report provides an in-depth analysis of reward management at Hotel Atlas. It begins with an introduction to the organization and its reward policies, followed by a SWOT analysis of the existing HR policies. The report examines the impact of business drivers and other factors on reward decisions, including data collection methods and reward intelligence. It also discusses the concept of total rewards and its importance, along with principles of equity, fairness, consistency, and transparency. Furthermore, the report explores extrinsic and intrinsic rewards, reward policy initiatives, and the role of line managers in reward decision-making, concluding with recommended initiatives for improving the reward policy, such as considering employee contributions beyond quantifiable data and fostering a supportive organizational culture. The document is contributed by a student and available on Desklib, a platform offering study tools for students.

Running head: REWARD MANAGEMENT
Reward Management
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
The report sheds light on the construct of reward and recognition and its related aspects in the
particular context of the organization Hotel Atlas. The report begins by providing a brief
introduction of the organization Hotel Atlas and the reward management policies used by it.
The report next undertakes a SWOT analysis of the reward policy followed by the concerned
organization. The impact of the business drivers and the other important factors on the reward
policy followed by the organization is also analyzed along with a discussion of the data
gathering process used by the organization for the reward system. The report at the same time
discusses about the concept of total rewards and the importance it renders to the concerned
organization. Furthermore, the report also discusses about the concepts of fairness, equality
and others which form an integral part of the reward system of the organization along with
the implementation policy which is being used by the concerned organization. The report also
discusses about the role of line managers regarding the reward strategy that is being followed
by the concerned organization. Finally, the report concludes with a discussion of two
initiatives that the line managers of the concerned organization can use to improve the reward
policy of the concerned organization, namely, taking into account the contribution made by
the employees rather than the quantifiable data and the formulation of an adequate
organizational culture.

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Table of Contents
Introduction................................................................................................................................3
Hotel Atlas.................................................................................................................................4
Reward Management in Hotel Atlas..........................................................................................4
SWOT Analysis of existing human resource policies............................................................6
Impact of business drivers and other factors..........................................................................7
Data collection and reward intelligence.................................................................................8
Reward principles and implementation of reward policies and practices..................................9
Total rewards and its importance...........................................................................................9
Importance of equity, fairness, consistency and transparency.............................................10
Extrinsic and intrinsic rewards.............................................................................................11
Reward policy initiatives and practices and their implementation......................................12
Role of line managers in making reward decisions.................................................................13
Line managers and their contribute to reward decision-making..........................................13
Examples of actions/initiatives............................................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................16

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Introduction
The notion of employee motivation has gained a significant amount of prominence
within the modern business world and it is directly related to the aspect of the job
productivity of the employees (Shields et al. 2015). Furthermore, the lacuna of the majority
of the business enterprises of the modern era is to gain an enhanced amount of profit and the
employees by virtue of being the building entities of these enterprises gain special
prominence in this particular regard (Shields et al. 2015). Moreover, recent research works
have suggested that the overall efficiency as well as the productivity of the diverse business
enterprises depend on the motivational level and also the individual job productivity of the
employees of the concerned organization (Aguenza and Som 2018). In this regard the various
organizations are actively taking the help of the diverse kinds of motivational means so as to
improve the job productivity and also the satisfaction level of the employees. The construct
of reward and recognition becomes important in this particular regard and is being actively
utilized by the various organizations for purpose of motivating the employees.
One of the most inherent desires of the human beings is to get recognized for their
hard work as well as dedication towards the kind of job roles that they perform (Boxall,
Hutchison and Wassenaar 2015). The machinery of reward and recognition is being
constructed with the specific agenda to fulfill this particular desire of the human beings
(Boxall, Hutchison and Wassenaar 2015). It is pertinent to note that the reward and
recognition varies from organization to organization. For example, on the one hand there are
organizations, which provide monetary rewards and other kinds of perks to the hard working
employees who perform above the expectation of the concerned organization (Anitha 2014).
On the other hand, there are organizations that provide designations and other kinds of
benefits to the employees for their hard work. Lu et al. (2016) hold the viewpoint that the

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effective use of this machinery to motivate the workers can significantly improve the
performance level of the employees. This report will discuss about the machinery of reward
and recognition and its various related aspects in the particular light of the Hotel Atlas.
Hotel Atlas
The Atlas Hotel is a 4 star hotel established in the year 2002 at Dushanbe, 2.3
Kilometer away from Dushanbe airport. It is one of the largest employees owned independent
Hotel in of Tajikistan (Atlashoteldushanbe.com 2015). The organization is reputed for
providing hospitality service, accommodation, restaurant, and food services to the visitors
from the different countries of the world (Atlashoteldushanbe.com 2015). Hotel Atlas also
established a new hotel chain in many other parts of Tajikistan (Atlashoteldushanbe.com
2015). Every room has a flat-screen TV; some units include a seating area for guest’s
convenience. Certain sections feature views of the either garden or city. All rooms are
featured with a luxurious drawing room, bathroom and bedroom (Atlashoteldushanbe.com
2015). The organization although had its humble beginnings in the Dushanbe is currently
operational in more than 20 areas of Tajikistan (Atlashoteldushanbe.com 2015). In addition to
this, the organization currently employs more than 1,200 employees from the diverse
countries of the world (Atlashoteldushanbe.com 2015). Furthermore, the organization under
discussion here is focusing on the various under developed areas in Tajikistan for the
development of the prospects of their business in the recent times (Atlashoteldushanbe.com
2015). It is pertinent to note that the organization under discussion here earns more than 60%
of its annual revenue from the Dushanbe of Tajikistan and has various kinds of projects in the
execution stage in this particular position (Atlashoteldushanbe.com 2015).

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Reward Management in Hotel Atlas
Hotel Atlas boosts of more than 1200 employees from the different nations and at the
same time the various projects as well as the hospitality services that they provide depends on
the cumulative work of these employees (Atlashoteldushanbe.com 2015). Thus, it becomes
all the important for the organization under discussion to motivate the employees in the best
possible manner so that they are being able contribute in a positive manner towards the
growth of the organization. Shields et al. (2015) hold the viewpoint that the effectiveness as
well as the efficiency of a particular organization depends on the motivational level of the
employees and their individual performance level. Thus, to motivate the employees in the
most effective manner the organization under discussion here takes the help of the construct
of reward and recognition. Psychologists are of the viewpoint that the construct of reward and
recognition provides dual benefits to the organizations (Ramdhani, Ramdhani and Ainissyifa
2017). Firstly, by rewarding the hard working employees of the organization they enhance
the level of extrinsic motivation of the employees and thereby help them to perform in a
much better manner (Ramdhani, Ramdhani and Ainissyifa 2017). Secondly, this particular
machinery had a considerable amount of impact on the below par performing employees of
the organization as well since the employees get to know the perks and also the rewards that
they would get if they perform as per the expectations of the organization (Kim and Holzer
2016). This has a positive impact on the below par performing employees of a particular
organization and helps them to perform in a much better manner.
The organization Hotel Atlas has evolved its own system of reward and recognition to
motivate the employees so that they perform in a much better manner. The reward
management system that the organization under discussion here has evolved over the years
not only provides monetary and other kinds of perks to the employees like short vacation trip
tickets and others but at the same provides designation opportunities to the employees as well

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(Hameed, Ramzan and Zubair 2014). For example, it is seen that the organization under
discussion here for the staffing of the management designations provides the opportunity to
the hard working employees of their own organization rather than recruitment the candidates
for the desired positions from outside (Gallus and Frey 2016). Due to economic conditions in
the country and performance, hotel was not able to provide additional
financial incentives to the staff in the form of bonuses, salary
increase and rewarding. The effective use of these processes can help the concerned
organization in a significant manner not only to improve the productivity level of the
employees but also to gain a significant amount of success as well.
SWOT Analysis of existing human resource policies
SWOT analysis is a framework, which offers the various organizations an idea about
their competencies and the threats as well as the opportunities that galore that organization
(Olubusayo 2016). A SWOT analysis of the reward policy of the organization under
discussion here will provide insightful details about this particular policy of the organization
under discussion here-
Strength  The hotel has enough employee count to develop adequate human
resource management system within the organizational structure
 The compensation policy of the organization caters to the inherent
desire of the employees to be benefitted for their health and security
issues (Atlashoteldushanbe.com 2015).
 The salary structure has been designed in such a manner that not
only the performing employees but also the below par performing
employees of the organization would feel motivated to perform in a
much more effective manner (Atlashoteldushanbe.com 2015).
Weakness  The reward and recognition events are absent in this organization.

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 hotel was not able to provide additional financial incentives to the
staff in the in terms of bonuses (Atlashoteldushanbe.com 2015).
 Staffs started looking for ways to
correct the situation often by planning to go for labor migration to
Russia
Opportunity  Organization of reward and recognition sessions on a monthly basis
 Providing additional perks and benefits
Threat  At the time Tajik Simony was experiencing a significant
devaluation due external economic factors, which drastically
affected purchasing power of hotel staff.
 The employees find the long drawn out process of the reward and
recognition system of the organization very tedious.
 Tajik labor market for trained and experience hospitality
professionals is
extremely limited
Impact of business drivers and other factors
There are various business drivers for the reward policy, which is being followed by
the organizations like Hotel Atlas and others for rewarding the hard work as well as the effort
of the employees. For example, some of the most common drivers of the use of this particular
policy are the need to improve the job productivity of the employees, enhancement of the
engagement level among the employees, increasing the job satisfaction level of the
employees, reducing the turnover of the employees and others (Clarke and Mahadi 2017).
However, at the same time it is seen that there are various factors which affect the reward

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policy adopted by a particular organization like affordability, market position, brand or
market image, benchmarking with the reward policy followed by the other organizations and
others (Elnaga and Imran 2014). Osibanjo et al. (2014) are of the viewpoint that the kind of
reward policy that a particular organization follows is directly related to the brand or the
market image of that particular organization and thus the organizations often feel the need to
match the standard industry trend followed by the various organizations. Thus, this is an
important factor which the organization under discussion here follows for the formulation as
well as execution of the reward policy that it follows within its framework.
Affordability is another factor which affects the reward policy followed by the
organization Hotel Atlas (Popli and Rizvi 2016). For example, the organization has chalked
the reward policy in such a manner that the rewards offered by it to the employees do not
hamper its financial prospects in a significant manner (Popli and Rizvi 2016). In addition to
this, the rewards are also being designed by the concerned organization as per the market or
the brand image (Malik, Butt and Choi 2015). For example, if the concerned organization
provides below par rewards to the employees then this can adversely affect the brand image
or position of the organization in an adverse manner (Malik, Butt and Choi 2015). The
cumulative effect of these factors have made the reward policy followed by the concerned
organization not only an effective one but also as the one which helps it to improve the
performance level of the employees.
Data collection and reward intelligence
There are two kinds of reward intelligences that are being used by the majority of the
organizations of the present times including Hotel Atlas. The first one is the extrinsic rewards
through the use of which the organizations provide various kinds of monetary rewards,
designations and other kinds of perks or facilities to the employees (Haider et al. 2015). The
second one is the intrinsic rewards wherein the organizations provide tries to enhance the job

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satisfaction level of the employees and also to motivate them intrinsically to improve their
performance level (Haider et al. 2015). Furthermore, it is seen that the organization Hotel
Atlastakes the help of the concept of reward intelligence to not only reward the performing
employees but also the employees who have the desired talent or the potential to perform as
per the expectations of the organization. This is important since many times it is seen that the
organizations try to quantify the performance of the employees and thus some of the
employees who actually contribute in a significant manner towards the growth of the
organization fail to get the adequate rewards for their hard work. However, the organization
Hotel Atlas takes this particular factor into consideration and has designed its reward policy
in such a manner that almost all the deserving employees get their due.
Hotel Atlas for the process of providing rewards to the employees takes the help of
diverse data sources for the collection of the desired data. For example, the organization
under discussion here conducts yearly “reward and salary surveys” so as to know whether the
employees are satisfied with the wages as well as the rewards that are being provided by the
organization or not (Kvaløy, Nieken and Schöttner 2015). In addition to this, the organization
at the same time takes the help of annual journals wherein the hard efforts of the deserving
employees are not only highlighted but also appreciated (Yousaf et al. 2014). Furthermore,
the organization at the same time conducts interviews with the employees who are leaving the
organization and also the ones who are just joining it so as to know the expectations of the
employees in an adequate manner (Yousaf et al. 2014). Moreover, the organization also takes
the help of various kinds of consultancies and agencies to gain an insight about the
expectations and the kind of rewards that the employees want.

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Reward principles and implementation of reward policies and practices
Total rewards and its importance
Total rewards refer to the entire package or the remuneration that a particular
employee is entitled to if he or she performs as per the required standards and also the
expectations of the organization (Massingham and Tam 2015). This provides an overview to
the employees about the entire financial gains that they would be able to make in a fiscal year
and is generally mentioned at the time of appointment by the HR managers (Massingham and
Tam 2015). Furthermore, this is important since having a clear idea about the financial gains
can motivate or help the employees to perform in a much more effective manner. In addition
to these, in the particular context of the Hotel Atlasorganization it is seen that the concept of
total reward is an essential factor, which guides the formulation as well as the implementation
of the reward policy. However, for the effective use of this particular machinery it is seen that
the organization Hotel Atlas provides not only the initial on-job training to the employees but
also various kinds of advanced trainings so that the employees are not only being able to reap
the benefits of the total reward system but at the same time able to perform as per the
expectations of the concerned organization. In addition to this, it is seen that the organization
provides flexible working opportunities to the employees so that they are being able to not
only maximize their individual performance but also to add value to the concerned
organization (Sparrow, Hird and Cooper 2015). Furthermore, Hotel Atlas along with the
wages that the employees are entitled to also provides additional monetary benefits and other
kinds of perks to the employees so that they are being able to reap the full benefits of the total
reward system.
Importance of equity, fairness, consistency and transparency
Yousaf et al. (2014) are of the viewpoint that the entities of importance of equity,
fairness, consistency and transparency should be the guiding principles of the reward policy

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which is being followed by a particular organization and everyone should be entitled to the
same kind of opportunities. Furthermore, it is seen that these are some of the most basic
aspects of a good reward policy and at the same time creates the kind of culture within the
organization wherein the employees are motivated to perform in a much more effective
manner (Mone and London 2018). This is one of the main reasons why the reward policy of
Hotel Atlas takes into effective consideration these factors for the reward policy that it is
following for rewarding the efforts as well as the hard work of the employees. At the same
time it is seen that the organization takes the help of meritocratic application system wherein
the contribution made by the employees is taken into consideration rather than just the
quantifiable data regarding the performance of the each of the employees. Furthermore, the
reward policy of the concerned organization is at the same time influenced by the various
national and international legislations like anti-discrimination, equality and others (Mone and
London 2018). Moreover, the organization at the same time tries to reduce the gender pay
gap within the framework of its workplace through the effective use of the reward policy
which it follows (Atlashoteldushanbe.com 2015). In addition to these, the reward policies of
the Hotel Atlasare also intended to provide the opportunity to the employees so that they are
being able to cover the minimum living wage requirement of theirs.
Extrinsic and intrinsic rewards
Foss et al. (2015) are of the viewpoint that both the extrinsic as well as the intrinsic
rewards are important for the employees and thus the organizations should try to incorporate
both of these rewards within the framework of the reward policy that they follow.
Furthermore, it is seen that the majority of the organizations fail to take into effective
consideration the aspect of intrinsic rewards and just focus of the extrinsic rewards (Šajeva
2014). Recent researches have shown that the use of just extrinsic helps the organizations to
improve the performance of the employees on a short-term basis however the employees fail