Report on Performance Management at Whitbread Hotels (MGMT 301)

This report provides a comprehensive analysis of Whitbread Hotel's performance management practices. It begins with an introduction to the organization, detailing its structure, sub-brands (Costa Coffee, Premier Inn, etc.), and financial performance. The report then delves into the core aspects of pe...Read More

PERFORMANCE
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
1)Introduction to organisation.....................................................................................................1
2) Managing performance by organisation.................................................................................1
3)Recommendations and suggestions.........................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Corporate performance management is an aspect which is carried out in an organisation
so as to check and evaluate all business performance that has been done. This is a concept which
is very effectively performed by company so that set standards and objective can be able to meet
in an appropriate manner. This will assist business to transform into a new and innovative phase
when it is been implemented in proper way. The process to identify actions, inputs, behaviour
and outputs of employees and other resources that are used in a company (Aguinis, 2013).
In this report Whitbread Hotel's performance management system will be studied and
along with that related solutions will be provided so as to improvise in used system.
TASK1
1)Introduction to organisation.
Whitbread is a public limited company that is working to hospitality sector. It is a
multinational hotel situated in Houghton Regis, UK. It is serving many areas of world where its
operations and activities are performed in an appropriate manner. It is having its sub-divisions,
Costa Coffee, Premier Inn, Table Table, beefeater and Brewers Fayre. Amongst all Premier Inn
is one of the largest brand in nation and is having 750 hotels and rooms are over 65000. Costa
Coffee has captured 31 countries where it is having 3401, it is world's second largest coffee shop
in the world (Gruman and Saks, 2011).
Company is also listed in London stock exchanges. Annul report of company of 2016
states that its operating income is £58.1 million and net income is around £37.3 million. Overall
revenue that has been generated in accounting year was £2.921 billion. Hotel is having 50,000
employees and is very effectively carrying out all its operations and functions. It has changed its
tag-line earlier it was “Welcome with a smile” later it become “Eat, Sleep and Drink”
In 2013, company met with a scandal, meat adulteration scandal was found in a DNA test
(Moynihan and Pandey, 2010). Through this research it was analysed that meat of horse was
used in many products that were offered by hotel to its clients.
2) Managing performance by organisation.
(a) Organisational performance management and its measurement.
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Performance management is a system through which firm's management team and
employees come together and set standards, monitoring and reviewing them so that workforce
can be able to perform all those allotted work in an effective manner this will lead in attaining
individual as well as organisational goals. As being well renowned company in hospitality
industry it has been managing all its operations and activities in an effective manner so that they
could be able to avail better services to customers (Griffin and Moorhead, 2011).
As to record a proper and systematic detail about activities that has been performed are
done with the help of a score card. Each and every aspect that are performed in firm is been
recorded appropriately so that company could be able to measure the actual performance that
were done till the time it has been evaluated. This way company use to manage the operations of
firm.
To measure performance company use to take a review of score card and resultant
productivity of company will be considered along with this customers feedbacks for services and
way they were treated are considered this is very helpful for Whitbread to measure whether set
standards get attained or not. Positive feedback will provide an information regarding effective
services that is been provided by company.
(b)Risk management system.
It is a system tools through which company can be able to manage all those factors that
may create problems and issues in activities and operations of a company. This mostly occurs in
a field of finance and it is the most important aspect in every business, so managing risk factor is
very essential. Whitbread is very appropriately carrying out its task with proper risk management
system. Its always get updated with current market programs regarding this approach so that it
could be able to handle the and reduce uncertainty that can occur in business at any moment
(Biron, Farndale and Paauwe, 2011). An effective system of risk is very helpful for a company to
perform in satisfactory manner. This will lead in attaining long term objective of firm and will
provide an assistance in sustaining in market with many competitive advantages. It will also
guide in making future plans effectively so that several consequences can be meet by company.
Company is presently taking guidance of risk management consultant who are providing
very effective and fruitful advices to company so as to deal with risk factors. They are availing
services by availing training to employees and workers so that they can be avail to handle several
circumstances. New programs related to solutions for risks are introduced by company, regular
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review is been performed so that company could be able to know all those areas where it need to
take more care and should be concern about more. Contingency plans are made and are
practically applied so as to assure its potency. All these are performed by Whitbread so that they
can be able to manage each and every business risk that can be very helpful to carry out an
appropriate operations (Pollitt, 2013).
(c)Financial performance of company
It is a very important part of an organisation as because this will tell how company will
be using its present assets and resources in appropriate manner. The way Whitbread is using its
financial resources for performing its operations and functions can be said to as financial
performance of company. It is very effectively carrying out its financial assets as because its
overall performance of the year has been seen very positive.
(Source: Consolidated balance sheet, 2017)
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Consolidated balance sheet

As shown in the above mentioned consolidated balance sheet of Whitbread company, financial
management of it is very strong and effective. Its assets are high so it can be concluded that it is
using an appropriate approach which is leading in good services and offerings to customers.
There are many methods that are used by company in managing its financial resources
appropriately such as financial leverage, proper budgeting, internal rate of return etc. These are
very essential that is been used by company (DeNisi and Sonesh, 2011).
Company is using its financial resources in an appropriate manner and is pre planning all
its activities regarding funds so that at times of crises they can manage and perform as
appropriate as earlier. Along with this company is adapting various management plans that guide
it to invest money in effective manner. This lead company to perform appropriately and good
results are attained through this. Whitbread is able to obtain its planned objectives and aims
which is helping company in growing and competing in competitive market.
(d)People perspective
Employee performance management is one of the most importance aspect in an
organisation as because they are assets of a company. Employees are need to be managed
effectively so that they can be able to perform their tasks and works in an effective way. This
will lead in attaining organisational as well as individual aims. As human resource are those
which is very must in a company because they does each and every work of it.
As to manage them company need to first trust upon them this is what Whitbread is
doing. It is believing upon employees potential and this is also building a healthy relationship
with manpower. This tools is very helpful as it will assist in making the process of work more
simple and easy to carry out. Basically there are different tools and approaches that can be
adapted by company so that they will be able to measure performance of each and every
employee. One of the techniques used by company is 3600 analysis (Buckingham and Goodall,
2015). This is very effective method as because through this every one of a company can be able
to provide their feedback for a particular employee. In this tool a review is been taken from
superiors, subordinates, peers, workers and also customers. This will let management know
about effectiveness of an employee's performance for the tasks and work allotted to him.
Feedback by each personnel with result in understanding how appropriately one is doing their
job. It is very essential for company to adapt this as Whitbread is doing. This is because it can be
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able to know who are in need of training and development so that accordingly planning can be
done.
(e)Quality and improvement
As Whitbread company is carrying out its activities in a hospitality industry it is very
essential for it to serve its clients in most effective and appropriate manner (Schläfke, Silvi and
Möller, 2012). Quality of products and services that are offered by company has to be up to the
mark so that customers can be attracted more and revenue can be generated. It is very essential to
have qualitative services if not then according to the market need improvements and
development has to be performed. Quality management approaches are there through which
company can be able to enhance its attributes of items and administrations that are provided to
clients.
(Source: Six sigma quality management tool, 2017)
Whitbread is very effectively adapting quality management techniques with use of six
sigma approach this is one of the best tool through which accurate measurement of quality can be
done. This is a methods which helps in setting a standard for each and every employees for the
quality approach then according to that all need to carry out their work. This set objectives has to
be met by company if not then quality has to be improved (Kerr and Hayward, 2013). This
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Six sigma

approach has been used by the cited organisation to check and manage quality of work and
services. It is very effective as because this will assist company in sustaining with their quality
and along with this tools improvements can be done. This will help company in retaining their
customers, sustaining in market, developing and growing in market.
3)Recommendations and suggestions
Organisation performance management is very essential activity for an organisation to
perform as because this will lead in managing all the activities and operations of company in an
effective way. Following are some of the benefits that can be attained by appropriately managing
all the operations and functions of company-
 Performance of employees can be able to manage appropriately so that they can be able
to make them work more effectively and properly.
 Evaluation of the present execution examination projects and practices.
 Improvement of execution designs lined up with authoritative objectives (Aguinis,
Gottfredson and Joo, 2012).
 Composing components and norms that incorporate believable measures of performance.
 Outline of execution rating measurements that adequately separate levels of execution.
 Recognizable proof of basic employment execution components that characterize results
to be accomplished.
 Plan of reward frameworks connected to your execution evaluation program.
 Help actualizing pay-for-execution frameworks.
 Innovation answers for streamline the execution administration forms.
 Coordination of execution administration with your office's key arranging, rewards,
progression arranging, and profession advancement programs.
 Workshops to prepare directors on execution administration capabilities, for example,
defining objectives, checking on execution, and conveying input.
 Encourage vital arranging withdraws.
 Help recognizing authoritative mission, vision, values, and additionally vital objectives.
 Advancement of an authoritative execution program or vital human capital intend to
actualize vital mission and objectives.
 Administrative and official training.
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Whitbread company has to adapt several new techniques and methodologies so that they
can be able to manage each and every things appropriately. Every aspect of business has to be
very carefully considered by company so that they can be able to sustain in market and can give
tough competition to its competitors (Forrester, 2011).
 Quality and services that company is providing must be very appropriate it is very
essential as because this will lead an organisation to attract customers more towards the
company and also this will help in generating high rates of incomes.
 Communication has to be done appropriately. This will assist conveying information to
every level of firm in proper manner. This will help in understanding the strategies and
plans that company is adapting. Through this employees could be able to perform every
thing effectively.
 Culture of organisation must also be very appropriate as because this plays a very
important aspect for better performances by employees. Culture of firm has to be very
straight and must be followed by all so that they can follow rules and norms and a
particular code of conduct has to be done.
 Trust and loyalty is also an essential aspect, this will help in building a healthy and
positive relationship with employees. This will enhance their productivity as well.
 Must be concern about customers, their needs and wants has to be fulfilled for that
company need to avail best and effective services to clients and their ;problems also need
to resolved as soon as possible (Rausch, Sheta and Ayesh, 2013).
CONCLUSION
In the above report performance management study has been carried out in reference to
Whitbread company. In this management of performance of company at different levels has been
concluded. Ways to measure and manage the performance of company has been understood in an
effective manner. Risk management approach, financial management, human resource and
quality and its improvement has be described. These are the aspects that are very appropriately
done by company to carry out their operations and functions in most effective and proper
manner. OPM's characteristics has been studied in detailed way so to understand its important
and usefulness in a company. Few suggestions and recommendations has been provided so that
company can be able to perform in more appropriate manner.
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REFERENCES
Books and Journals
Aguinis, H., 2013.Performance management(Vol. 2). Upper Saddle River, NJ: Pearson.
Aguinis, H., Gottfredson, R.K. and Joo, H., 2012. Using performance management to win the
talent war.Business Horizons.55(6). pp.609-616.
Biron, M., Farndale, E. and Paauwe, J., 2011. Performance management effectiveness: lessons
from world-leading firms.The International Journal of Human Resource
Management.22(06). pp.1294-1311.
Buckingham, M. and Goodall, A., 2015. Reinventing performance management.Harvard
Business Review.93(4). pp.40-50.
DeNisi, A.S. and Sonesh, S., 2011. The appraisal and management of performance at work.
Forrester, G., 2011. Performance management in education: milestone or
millstone?.Management in Education.25(1) pp.5-9.
Griffin, R.W. and Moorhead, G., 2011.Organizational behavior. Cengage Learning.
Gruman, J.A. and Saks, A.M., 2011. Performance management and employee
engagement.Human Resource Management Review.21(2). pp.123-136.
Kerr, E.A. and Hayward, R.A., 2013. Patient-centered performance management: enhancing
value for patients and health care systems.Jama.310(2). pp.137-138.
Moynihan, D.P. and Pandey, S.K., 2010. The big question for performance management: Why
do managers use performance information?.Journal of public administration research
and theory.20(4). pp.849-866.
Pollitt, C., 2013. The logics of performance management.Evaluation.19(4). pp.346-363.
Rausch, P., Sheta, A.F. and Ayesh, A. eds., 2013.Business intelligence and performance
management: theory, systems and industrial applications. Springer Science & Business
Media.
Schläfke, M., Silvi, R. and Möller, K., 2012. A framework for business analytics in performance
management. International Journal of Productivity and Performance
Management,.62(1). pp.110-122.
Online
Monitoring and Measuring. 2013. [Online]. Available through:
<https://www.whitbread.co.uk/corporate-responsibility/environment/Monitoring-and-
measuring.html>. [Accessed on 12th July 2017].
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