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A Sample Report On

Developing and Managing Performance

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Executive Summary

In current study the learning has focused on developing and managing performance. Improved

level of understanding about this procedure provides proper allotment of various actions so that work

culture effectiveness and workforce performance can be enhanced. In this report, it has been spotted

that the performance of workforce have great impact of reward systems so the management of

Cavendish Hall Hotel need to focus on it in effective manner. Moreover, the managers and employees

of Cavendish Hall Hotel need to focus on collective monitoring and review of actions so that

organisational performance can be improved. It is also necessary for business organisation to acquire

effective identification of development opportunities in order to have impressive success. It has also

been spotted in report that new performance management system of Cavendish Hall Hotel provides

advancement in income level by one percent in respect of performance or activities performed within

organisation. In the support of this, it can also be stated that the performance management system is

classified in four categories such as excellent, good, satisfactory and unsatisfactory.

Furthermore, it has also been spotted in the report that the management of Cavendish Hall

Hotel can face number of issues or barriers in implementation of reward system. In the support of this,

it can be stated that reward policy provides monetary advantages to employees, which also enhances

the overall cost of business organisation. In this it is necessary for management to have proper

allocation of financial resources. Moreover, the improper evaluation of employee performance also

influences the execution of reward policy. It is also necessary for management of Cavendish Hall Hotel

to ensure that the employee's are satisfied with the policy norms and IPRP schemes so that business

can have great advantage of reward system implementation.

Other than this, it has also been determined in the report that the business organisation can have

effective management of performance by focusing on various managerial concepts. In this support, it

can be recommended that improved focus on objective setting, feedback and strategic alignment can

enhance the performance of Cavendish Hall Hotel employee's. Organisation can also focus on various

balance scorecard and 360-degree approach of appraisal in order to have effective management of poor

performance. It will amend the effectiveness of development plans and lead business to impressive

success by proper linking with employee performance.



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Table of Contents

INTRODUCTION ........................................................................................ 1

COURSEWORK 1 ........................................................................................ 1

Performance management ......................................................................... 1

Reward policies ......................................................................................... 2

Individual performance related pay........................................................... 2

Barriers to implementation of IPRP schemes ........................................... 4

COURSEWORK 2 ........................................................................................ 5

Importance and effectiveness of objective setting, strategic alignment and

feedback ..................................................................................................... 5

Links to appropriate development plans ................................................... 7

Appropriate methods to manage poor performance and support

performance development ......................................................................... 8

CONCLUSION ............................................................................................. 9

REFERENCES ............................................................................................ 10



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INTRODUCTION

Developing and managing performance is all about proper allotment of various actions, which

can amend the work culture effectiveness and workforce performance. It can be done with an improved

focus on performance management system. It is a procedure, which allows proper allocation of roles

and responsibilities as per the capability of employee (Salas, 2001). In other words, it can be said that

the performance of employee can also be improved by focusing on various reward systems. Moreover,

the performance level can also be managed with an assistance of various human resource activities.

In this report the learning will focus on work culture of Cavendish Hall Hotel in order to have

better understanding about developing and managing performance concepts. It will focus on various

reward principles, policies, practices and their impact in the overall organisational performance. It will

also spot light on decision-making process and its outcome in performance management of Cavendish

Hall Hotel. Furthermore, it will also focus on various techniques, which can be implemented to have

advancement in organizational performance.

COURSEWORK 1

Performance related pay

Performance related pay is a salary or wage process in which management ensure about the

individual performance and then provide salary. In the support of this, it has been spotted that the

various standard based systems are used by employers to have effective evaluation of workforce

performance (Pattanayak, 2005). In other words, it can be said that it is a financial reward system for

employees in which business organisation like Cavendish Hall Hotel provide monetary benefit and

compensation in respect of efforts and performance of employee. In this, some standards are followed

by organisation to identify the performance (Robert, 2002). For example, the management of

Cavendish Hall Hotel has decided to that the employee who finish-cleaning task within 5 minutes will

be considered as an excellent and have four per cent of rise in income. These standards can also be

used to measure the team performance and then decide the pay as an increment. The advancement in

pay also increases the morale of employee's and motivates them to accomplish task in more effective

manner.

In the support of above statement it can be said that the individual performance related pay

have number of benefits and disadvantages that can impact on the organisational performance.



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Performance of Cavendish Hall Hotel employees can have positive impact due to individual

performance related pay policy. It motivate workforce to follow various organizational guidelines to

have better accomplishment of task in order to attain better incentives (Hall, 2004). The one of key

benefit of this policy is that it provides long term monetary earning as compared to one time bonus.

Regular advancement in wages or salary increases the morale of employee and impacts their

performance aspect in positive manner. It also has some disadvantages, which can impact the long-

term success ratio in negative manner (Poon, 2000). For example, the management of Cavendish Hall

Hotel has introduced reward system to amend the morale of employee's but workforce has considered

the policy as opportunity to earn more profit without any understanding of organisational goals. In this

situation, the employee can have short-term benefits but he can also have some long-term loss.

Furthermore, it can also be stated that the disadvantages of performance related pay have great

influence on the business management. In this respect, the management may face some issues

regarding measures of performance. There can be dispute that how performance of employees will be

measured. Another key issue can be that did performance measurement are implemented in proper

way. In the support of this, it can be stated that the rewarding individual employee is less efficient

while it is compared to team work. It may increase the overall cost of operations. For example, the

management of Cavendish Hall Hotel has implemented the individual pay reward scheme to motivate

employees. It has improved the skills and efficiency of various employees but they are now working to

accomplish their individual goal. In this situation, it became necessary for business organisation to

focus on establishment of new plan which can target overall team for improvement. It will increase the

overall cost of operation and may lead to some financial issues.

Other than this, it can also be stated that the team work also faces the issues regarding

undermines due to IPRP so it is necessary for business firm to have improved knowledge of various

factors of IPRP. In the support of this, it can also be stated that the business organisation also faces

some issues regarding long term performance measures. In order to attain better accomplishment of

various performance appraisal objectives the employees work in quick manner which reduces their

focus from creativity and innovation. Moreover, it can be stated that with an improved focus on IPRP

system the business organisation can enhance the employees motivation level and prompt them to

enhance their efforts within organisation. It also promotes the continuous improvement in

organisational performance which is one of most beneficial way to meet the organisational goals. It



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will also facilitate business organisation to accept number of challenges and have better presentation of

skills so that they can attain more financial benefit. It also have direct positive impact on the overall

performance of hotel.

Another key benefit of pay for performance policy is advancement in performance by improved

focus on consistency factor. For example, the employee of Cavendish Hall Hotel has understood the

performance management system and reward policy in effective way (Tuzun, 2012). Employer key

aim behind the introduction of reward system is to motivate employees and have constant

improvement in performance so that organisational goals can be meet in effective manner. In this

support it can be said that it also attract well skilled worker who percept that their qualifications and

outcome of efforts will be properly rewarded (Muller, 2014). It also increases the flexibility at work

place by enhancing the performance of employee's.

In order to understand the individual performance related pay effectively it can be stated that

improvement in individual performance also has direct impact on the organisational performance. For

example, the restaurant staff is having effort in quick manner to meet the standards of individual

performance related pay policy then it will also impact the organisational sales in positive manner. It

will also amend the goodwill of hotel that company provides quick services. It will also provide better

experience to customers (Albahussain, 2006). Another example can be that the Hotel staff is focusing

on advancement in cleanliness of premises to meet the standards of individual performance related pay

policy then it will also create a positive work environment and motivate other departments to have

efforts in effective way. The improvement in cleanliness will make customers feel good and enhance

their experience at hotel, which is beneficial for advancement in brand loyalty (Cassidy, 2006). The

improved level of experience is also beneficial as customer feedback also have great reflection on the

performance management system of Cavendish Hall Hotel.

In the support of this, it can be said that the individual performance related pay policy is

suitable for Cavendish Hall Hotel because organisation provides number of services for better

experience of customers. It is necessary for hotel firm to maintain various standards in services so that

business can have impressive success (Gravells, 2010). Management of Cavendish Hall Hotel can link

standards of services with individual performance related pay policy in order to enhance the

effectiveness of services. For example, the key standard of room service is that proper arrangement of

furniture and other utilises in room and efficient response towards customers demand. In this aspect the



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management can set same standards with individual performance related pay policy (McGRATH,

2011). It will motivate employees and also help in meeting basic standards of hospitality work culture.

This clearly indicates that the individual performance related pay policy is suitable for business

environment of Cavendish Hall Hotel.

Barriers to implementation of IPRP schemes

It has been spotted that there are number of barriers which can impact the implementation of

IPRP schemes in work culture of Hotel so it is necessary for business firm to have improved

understanding about those barriers. The barriers to implementation can be classified as high costing,

evaluation system and dissatisfaction among employees. In the support of this, it can be said that the

reward system is all about providing monetary benefits, which can impact the overall cost of business

organisation (Smith, 2003). The advancement in services needs high ratio of investment which has

direct negative impact on the overall cost of operations. Moreover, the IPRP system is all about

providing financial and monetary benefits to individual in respect of better performance and optimistic

efforts within organization. This clearly indicates that the IPRP bring advancement in cost factor which

have direct negative influence on the over all expenses of organization.

For example, the management of Cavendish Hall Hotel has decided to implement the IPRP

schemes for advancement in performance but company does not have sufficient finance as per the

demand of scheme. It may be one of critical barrier for the management to arrange incentive amount

without any advancement in profit margin ratio (Nevada and et.al., 2012). In other words, it can be said

that it is necessary for business organisation to ensure about financial conditions before designing of

IPRP schemes.

Other than this, it can also be stated that the individual performance pay scheme can also face

some critical issues due to distributive justice. It has been identified that there are number of

employees who does not work for money. In this case, the workers who does not work for money will

not feel motivated because they will not feel monetary benefits are good for them. In this situation, it is

necessary for management of Hotel to ensure that the distributive employees are feeling motivated.

Company can introduce some non monetary benefits for these kind of employees in order to amend

their performance.

Moreover, there are some external factors which can also impact the effective implementation



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of individual performance pay scheme. For example, the behaviour of family and friends or their

suggestions to individual. In other aspect, it can be said that individual family members has suggested

him that not to take over load just because of monetary benefits because they is no optimistic financial

need of family. It will also force the employee not to take individual performance pay scheme as

critical aspect. It may increase the overall cost of operation so that employee feel motivated to

participate in scheme.

Furthermore, another key barrier is improper evaluation of employee performance. In this

respect, it is necessary for management of Cavendish Hall Hotel to focus on effective monitoring

system that can provide correct information about employee's performance because the dependability

of IPRP schemes is on employee's job evaluation (Little, 2011). For example, the management of

Cavendish Hall Hotel has implemented IPRP schemes but company does not have any job evaluation

process. In this situation the management of Cavendish Hall Hotel can face some critical issues, which

can implement overall performance of organisation.

It also create barrier for organisation as it reduces the trust culture within organisation. For

example, the hotel has introduced new scheme of performance appraisal and employees has taken the

scheme in personal context. The employees does not trust any other individual in team because they

think he will not support me to gain better financial advantage. This clearly indicates that the

employees perception has impacted in negative manner due to competition factor.

At last, employee's dissatisfaction is one of key barrier for effective implementation of IPRP

schemes at Cavendish Hall Hotel. In some conditions it has been spotted that the employee's are not

satisfied with the IPRP scheme due to some complex standards (Conrad, 2004). It can also impact the

effective implementation of IPRP schemes. In this it is necessary for management of hotel organisation

to ensure that the employee's are agreed with the standards. Moreover, the employee's who does not

receive much benefits from IPRP schemes can get demotivated which can also influence the

implementation of IPRP schemes (Holmes, 2014). In this situation it is necessary for management of

hotel to ensure that the employee's may not face de-motivation issues due to IPRP schemes.

Alternate policies

In order to amend the performance of workforce and motivate employee's the management of

Cavendish Hall Hotel can focus on reward management. With an assistance of this, management can

easily formulate number of strategies and policies which can provide various benefits to employee's in



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most fair, equal and consistent manner (Cunill, 2006). In the support of this, it can be said that there are

number of internal and external factors which management must consider during formulation of reward

policies. The classification of factors can be as values, structure, profit, market conditions, social

system, etc. It is also necessary for management of Cavendish Hall Hotel to provide reward as in

equal manner. The principle of equal pay must be followed in appropriate manner so that equal values

can be provided (Liu and Fu, 2006). Moreover, the job activities must be evaluated in systematic

manner with an consideration of job importance and hierarchical aspects.

Furthermore, the pay can be provided to employee's by focusing on various theories such as

labour market, human capita, efficiency wage and agency theory. In respect of labour market it can be

said that the employee's and employer both have correct information about market conditions and the

pay is decided in context of both parties profit (Pearlson and Saunders, 2004). The rewards are

provided at equilibrium point to meet the needs in effective manner. Secondly, the reward pay can also

be provided on the basis of cost investment analysis. In this management measure total cost of

investment with outcome and then decide pay range (Yu, 2012). Moreover, agency theory means

employer have focus on pay according to market condition analysis. In this, the key motive of

employer is to pay below market share and have advancement in profit margin ratio.

Moreover, in this support the management of hotel can focus on intristic and extristic rewards.

In intristic rewards the reward will be provided to person on the basis of activity or behaviour towards

work. It needs high ratio of monitoring in order to understand the behaviour of person. Other than this,

extrinsic reward is an form of reward which is tangible or physically provided to employee in respect

of optimistic performance. It helps in meeting organisational goals in better way and provide better

opportunities. For example, the management of hotel can provide award to employee who have

accomplished tasks in more effective manner. Performance of the week award can be started by the

management of hotel to motivate employees and provide them various benefits. In the support of this,

it can be said that the motivation also plays a key role in effective management of performance.

Business firms provide various benefits to employees by focusing on reward policies and performance

appraisals. It increases the morale of work force and lead business to advancement in overall

organisational performance.

Furthermore, the organisation can also focus on balance score card method to meet the

objectives in better way and to maintain the standards. In this respect, the management of hotel can set



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some standards regarding performance of employees and then measure their efforts as per standards. It

will facilitate management to understand the needs of employees and design better strategies which can

amend their motivation level. It can be considered as a part of performance management system. In

this process the managers and employees also have focus on collective monitoring and review of

actions with motive of advancement in organisational performance (Nutley, 2008). In the support of

this, it can also be said that the management of Cavendish Hall Hotel can have number of benefits by

focusing on balance score card method. The one of key advantage of balance score card method is

targeted staff development.

COURSEWORK 2

Importance and effectiveness of objective setting, strategic alignment and feedback

Performance of employees depends on the success of every various tactics like motivation,

reward, belief, etc. As per the statement of Noon (2008), it has been spotted that the work performance

can be easily managed by effective focus on various factors which relates with the operations of

business organisation. The classification of factors can be as organisational objectives, strategic

alignment and feedback.

Objectives setting

In the support of above statement it has been said by Constantin (2006) that the objective

setting is all about formulation of key motives which can assist in effective accomplishment of

organisational mission and vision (Constantin, 2006). In other words, it can be said that the objective

setting is key section of planning and its basic aim is to render a support to planning process so that

company can have impressive success.

According to Ghosh (2012), there are some steps which can be followed by management of

Cavendish Hall Hotel in order to have effective formulation of objectives. In first step the management

can focus on identification of various issues which can impact the overall performance. The issues can

be identified by proper evaluation of all operational actions and take reviews of employee's. It will

provide correct information about the issues and lead business to impressive success (Ghosh, 2012).

In second stage the management of Cavendish Hall Hotel can focus on evaluation of various

alternative actions and choose one of them which suits most to the organisational environment.

Münstermann (2010) has asserted that, it is necessary for management to ensure that the selection of



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activities is according to business needs and facilitate in overcome the issue (Münstermann, 2010). At

last, assessment of result after implementation and then design objectives. During this process it is

necessary for management of business organisation to make sure that designed objectives are reflective

key motive and mission, vision of organisation.

Noon (2008) has spotted that the business organisation like Cavendish Hall Hotel focuses on

various tools and techniques in order to have improvement in services and operational actions. Setting

objective is one of most critically used management tool which can create number of long term goals

for effective success of organisation. It also relates with the performance management which means the

effective formulation of objectives can lead business to improvement in organisational performance

(Noon, 2008). Improved focus on objectives setting is also necessary because it plays a key role in

advancement of visibility factor. With an clear definition of organisational goals the workforce can

easily have proper alignment of actions which will also have positive impact on the motivation level of

employees (Rauris, 2002). Improved level of information about organisational goals also provide

strength to effective accomplishment of responsibilities in order to have impressive success. Moreover,

Rauris (2002) has contended that the effective designing of objectives is also necessary to have

improvement in collaboration. In other words, the collaboration of goals at one place also increases the

team effectiveness by motivating employees to share information. It also allows to facilitate each other

so that business can have effective accomplishment of goals.

Strategic alignment

Gabris (2000) has concluded that it is a procedure in which organisation workforce have efforts

to create link between structure, resources and strategy so that business can have some improvement in

environmental context. In the support of this, it can be said that it allows to have advancement in

performance ratio by optimizing efforts of people, input, etc. It also provides effective measurement of

all objectives and minimize the waste of resources (Gabris, 2000). It has been spotted by IMayer

(2009) that the strategic alignment have great impact on the business operations so it is necessary for

management of Cavendish Hall Hotel to consider these aspects. Strategic alignment is important for

every business as it have great influence on the organisational performance (IMayer, 2009). It has also

been identified by Imayer (2009) that the workforce have effective efforts when they have proper

understanding of organisational goals as it make them realize about key purpose. It also facilitate in

effective acceptance of goals so that business can have better development.



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Furthermore, the strategic alignment is also necessary because the lack of strategic alignment is

one of key aspect which can may lead business to great failure. It has been determined by Campbell

(2008) that business organisations loses their track or purpose which creates critical barriers in order to

have effective accomplishment of goals (Campbell, 2008). In Cavendish Hall Hotel the strategic

alignment is necessary to have improvement in quality of services with effective focus on better

control on wastage of resources. It will also reduce the overall cost of operational activities by

providing effective control on the allocation of resources and enhanced selection of organisational

strategies.

Feedback

Armstrong (2000) said that it is a procedure in which business organisation have efforts to

identify the impact of their implementations on organisational performance and services. In other

words, it can be said that it provides information which can be used by management of Cavendish

Hall Hotel to change the actions for better future opportunities (Armstrong, 2000). In this process the

hotel organisation can focus on review or feedback from employee's as well as customers. In the

support of this, it can be said that the feedback from employee's and customers is necessary for

management of Cavendish Hall Hotel because it renders flexible work conditions. It also provide

information about the factors which plays a key role in sustainability of organisational services. It is

also essential to identify the effectiveness of regulatory actions which are applied at Cavendish Hall

Hotel.

Moreover, Ullsperger (2003) stated that it is also significant because it provides better

opportunity to have effective interaction with all workforce and customers as well. With an assistance

of feedback system the management of Cavendish Hall Hotel can easily identify the issues and spot out

some innovative ways to overcome it (Ullsperger, 2003). It will facilitate in advancement of services

and reduce the negative comments of customers which is beneficial for improvement in organizational

brand image.

For example, the customer feedback means the understanding the perception of buyer towards

services of hotel and work policies. It will provide integrated information about the effectiveness of

services and operational actions. It also renders understanding about the factors which are impacting

the organisational performance.



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Links to appropriate development plans

As per view of Di Chiara (2007), every business organisation have improved focus on effective

development of plans so that business can have impressive success. In other words, it can be said that

the business can have improvement by focusing on performance advancement. Moreover, the business

plan and training plan have great link with performance appraisal (Di Chiara, 2007). For example, the

management of Cavendish Hall Hotel can have development in performance by improved focus on

training and development plan. As it includes all key factors of development such as objective setting,

strategic alignment and feedback. Kaplan (2008) contented that training and development plan covers

some organisational objective which have direct impact on the employee's performance (Kaplan,

2008). In the support of this, objective of Cavendish Hall Hotel is to have improvement in employees

productivity by 10 %. In this development plan the business will have efforts to improve the

productivity which will have direct positive influence on organisational performance.

Furthermore, the training and development plan have great influence on the employee as well

as organisational performance. It increases the skills of employee's which is beneficial to amend the

productivity and meet the organisational goals. It also have great impact on the motivation level of

employee's and influence the organisational performance (Brander Brown, 2005). For example, the

workforce of Cavendish Hall Hotel has improved the communication skills which impacted motivation

in positive manner. It will also increase the productivity of service delivery and leads business to

impressive development. This clearly indicates that the training and development plan have relates

with the organisation and employee performance.

Other than this, performance appraisal plan also have link with the development in performance

ratio of employee's. With an assistance of this, the workforce of Cavendish Hall Hotel can have better

understanding about key factors which influence their work culture (Kaplan, 2008). Improved

knowledge about key factors will motivate employee's to have effort in appropriate manner so that

their performance can be enhanced. The key motive of performance appraisal plan is to enhance the

overall performance by providing various monetary benefits to employee's. For example, the

management of Cavendish Hall Hotel has introduced performance appraisal plan which has increased

the morale of employees (Di Chiara, 2007). It has provided information about their skills and

capabilities which has impacted the overall work culture in positive manner. Moreover, the



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performance appraisal plan can also influence performance in negative manner if employees are not

satisfied with the key factors of plan. It means it is necessary for business organization to have

effective designing of diverse development plan as per workforce needs so that organizational

performance can be enhanced in order to meet key objectives (Ullsperger, 2003). As per the above

discussion it can be clearly stated that the development plans have great link with the employee as well

as organisational performance.

Appropriate methods to manage poor performance and support performance development

It has been spotted by Armstrong (2000) that the management of Cavendish Hall Hotel is

facing some critical issues which have great negative impact on the organisational performance so it is

necessary for hotel organisation to have focus on various methods. It is necessary for firm to ensure

that methods are according to nature of business. The classification of methods can be as balance score

card, 360 degree method (Armstrong, 2000). In this support it can be said that the balance score card is

a process in which strategic planning take placed in order to have effective management of resources

so that business can have impressive success with improved management of performance factors. The

management of Cavendish Hall Hotel can focus on four key perspective to have better control over

performance factors. The classification of perspective can be as financial, customer, internal and

innovative learning (Campbell, 2008). Moreover, Campbell (2008) said that the hotel organisation can

set some standards by analysing the customer perception and financial condition of organisation. It will

provide strength to business organisation and improve employee's performance. In this number of

motivation techniques can be used to amend the morale of workforce and reduce the effectiveness of

poor performance.

Other than this, the number of innovative work techniques can be implemented at workplace to

enhance the skills of employee and manage poor performance in better way. It is also one of beneficial

factor which can advance the overall organisational performance (IMayer, 2009). Moreover, the 360

degree can also be used as it is procedure which will provide confidential feedback to all employee's

and make them understand about negative factors. In this process the management can have personal

meetings with each employee and provide him information about his performance. It will enhance the

morale of workforce by providing information about strength and weakness (Gabris, 2000). In the

support of this, it can also be said that there are various management tools which can used by hotel



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firm in order to have better control on financial and other resources. Rauris (2002) asserted that the

improved use of resources will enhance the organisation productivity and improve the profit margin

ratio. Company can also focus on new product development techniques so that services effectiveness

can be enhanced. In this it is also necessary for management of Cavendish Hall Hotel to ensure that all

process have concern of employee's as it will also amend the morale and lead business to improvement

(Rauris, 2002). Moreover, Noon (2008) has said that organisation can also have better access to

database so that issues can be identified in better way. Improved level of information regarding issues

will facilitate in finding various ways which can overcome the issue. Management of Cavendish Hall

Hotel can also focus on meeting and discussion with employee's to determine the ways in order to

resolve complain and issues. It will also enhance the service effectiveness and reduce the level of

negative feedbacks from customers (Noon, 2008).

CONCLUSION

As per the above study it can be said that every business organisation can have improvement in

its performance ratio by enhanced focus on various managerial actions. The management of hotel

organisation is focusing on reward policies in order to enhance their morale that has direct impact on

organisational success. It has been spotted that development plans also facilitate in effective

enhancement of employee's skills, which influence performance ratio in positive manner. Moreover,

the management tools like balance score card and 360-degree appraisal can also facilitate Cavendish

Hall Hotel to advance the performance.



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