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Organizational Performance Assignment: Operations In Cavendish Hall Hotel


Coursework 1: Discuss the rationale for using EITHER performance related pay OR performance appraisals to improve performance levels at the Cavendish Hall Hotel and the role of the line manager in achieving this successfully.


In this organizational performance assignment, the description will focus on the performance-related pay to enhance the level of performance at the Cavendish Hall Hotel and the role of the line manager in getting success. The Hotel gives a broad range of banqueting and conference services and it is a famous wedding location also. As the hotel is facing certain issues in the cleaning and receptionist department, so the hotel manager decided to start a new system to increase the performance of employees by the performance-based payment. In this context, the report on organizational performance assignment will describe the growth of business performance, pay design and execution, pay process and how line managers will implement the payment process with motivation and ability.

How and to what extent performance appraisals OR performance-related pay might improve organizational performance (in 'theory' and 'practice').
The performance-related pay system helps in enhance the performance of the Cavendish Hall Hotel. After learning all issues of the case, I support the theory of the PRP, which is closely connected with the financial system, and it is supports workflow and culture transformation in the Hotel. This will bring modifications to the working environment and encourage the staff; it will directly make an impact on hotel performance. This is used as a motivational technique to boost the morale of employees working in the organization (Grytten, 2017). Financial benefits outlined in the context of organizational performance assignment are considered a powerful tool by which employees are motivated towards the organization's goals and they put their best effort into the workflow. For example, hotel management has decided that any employee who completes the cleaning work within 10 minutes, whom will be considered active employees and three percent of the increase in income. Many theorists believe that money helps in create suitable behavior in hotels while treating seniors and juniors. The rise in the pay scale enhances the confidence of staff and encourages them to complete the task in a very effective way.

The practice and theory explored in the organizational performance assignment are depended on the connection between payment and behavior and the level of satisfaction in the employees. The Expectancy theory is related to the payment system of individual and this is based on the assumption that employees will be motivated towards their work and they get the objectives of the organization by putting their hard efforts (Adida, et. al., 2017). This theory said that Employees are sensible and they better now what they have to do to get the increment. The payment system is active for the Cavendish hotel, and it is considered by me that the employees are happy and agreed with the new payment system. The hotel is suffering from bad customer service in the rooming and reception department, but after the execution of the PRP system employees are motivated to do their work with more dedication and to maintain the decorum of hotels in the region.

The characteristics of effective and ineffective appraisal OR pay design and implementation in regards to the case of organizational performance assignment.
Payment systems and rewards boost the morale of employees and make them motivated towards the hotel. When it is not effective, then it may affect negatively the hotel and its staff. An ineffective pay design decreases the level of employee performance and decreases Hotel productivity also. Some characteristics are given in making the payment design and execution very effective.

Effective characteristics
Performance-based: Payment and increments should depend on the performance. A skilled and active performer will receive more benefits than poor and average performers. This payment system of performance illustrated in this section of organizational performance assignment will boost the employees to perform in a better manner (HRMP, 2020).

Cost-effective: The performance payment system should have the feature of balancing the cost and benefit ratio. The benefits enjoyed by the staff must not exceed the rewards received by the hotel. It will be difficult for the organization to provide over cost benefits to employees. Giving expensive benefits in the pay design system to make workers happy is not correct.

Unbiased: The pay design system must be fair and unbiased. Employees and staff identical to their work performance must provide equal benefits. The biased payment system will develop issues in the hotel. For this, continuous work performance should be analyzed and the payment system should be enacted (Manchikanti, et. al., 2016).

Requirement based: The study developed in this segment of organizational performance assignment signifies that this payment design system should match the requirements and demands of staff. When payment design does not fulfill the demands of employees, then it will not support them to perform with full enthusiasm. It will only raise economic pressure for the hotel, for example, when any person has physiological requirements, financial benefits will be a proper reward for such an employee. In the same way, when any person has self-esteem demands, giving appreciation and recognition will be a suitable benefit.

Competitive: The payment design system examined in this section of organizational performance assignment should be competitive to different hotel organization's standards and these are revised frequently. The system should be appropriate to earn the livelihood and it must be able to give the change in living standard. When there is no competitiveness, staff and employees will leave the hotel and join others.

Ineffective characteristics
Other than the effective benefits of the performance payment system, certain factors are ineffective for the employees.

  • Improper design: When the performance-related scheme is not structured properly, then it will negatively affect the morale of workers, whenever the offers are not sufficient to fulfill their requirements.
  • Lack of skills: When there is not adequate communication and a lack of managerial skill to execute the procedures then, it will make a negative impact on employee's performance.
  • Unfairness: Due to unfair and unethical behavior, affects teamwork among employees then it is not possible to achieve the goals in the prescribed period.
  • Unhealthy environment: Due to the ifferences between the highest-paid and lowest-paid workers' unhealthy competition raised in the Hotel. With the performance payment system, it is critical to design aims that all workers can recognize as realistic and fair.
  • Resistance to change: Workers fear changes in the company in case of operating principles; they think that changes in the operations can reduce the level of productivity.

What is the reaction of employees to the performance review OR pay process in the case scenario of organizational performance assignment?
I recognized that employees of the hotel become fed up with the positions and doing the same activities every day which reduce their morale and result in less employee performance. To keeping employees encouraged and working, needs creative philosophy on the part of staff and employees. They respond in different ways but acknowledging or rewarding them for better functions or hard efforts can inspire zeal and motivation in them to do work hard. The performance-based payment provides staffs a reason to do to better in their work (Higuera, 2020).

According to me, the employee performance payment system not only motivates them to do well, but such a system may contribute to staff retention. Employees who consider undervalued or unappreciated will look out for employment at any other place. This payment design will develop a level for considering staff and thanking them for better performance. Along with that, this kind of payment incentives and rewards system forces them to challenge and understand their real abilities. Payment made according to the performance of employees improves their work capability. It also creates a healthy working environment in the hotel for employees and managers as well. This enhances loyalty among employees in the hotel and reduces absenteeism (Higuera, 2020).

On the other side, the argument raised on this organizational performance assignment also mentions that this performance-based system also creates a negative reaction among employees in the working culture. Despite their hard work, some staff and employees will not receive the benefits of the payment performance program. Issues like anger and enmity may raise as such employees see their fellow workers rise and get a benefit. Along with that, this payment design method will create tension between workers who are doing well. It seems like when workers' payment depends on a group performance, as against single performance. Skilled and active employees might think to take benefit but not inactive and lazy staff.

The ability, motivation, and opportunity of line managers to design and implement the appraisal OR pay process effectively
The performance payment system is used to enhance the performance of employees and to grow hotel performance. Hotel management depends online managers to execute the payment process system effectively and to involve in a regular process of objective setting, training, feedback and performance growth with the workers. Based on AMO theory (ability, motivation, and opportunity) I predict that the efficiency of payment management execution will be the core function of these elements. Firstly, it is noted in the organizational performance assignment that the line managers of the Hotel must have the capability to enact the tasks which are engaged in performance management. Secondly, employees must be motivated and encouraged to accomplish these tasks and lastly, line managers of the hotel must have enough opportunity to complete such tasks on top of the need from other hotel organizations (Terera and Ngirande, 2014).

As per this AMO approach explored herein organizational performance assignment, the performance of employees is based on three variables, workers' abilities, motivation and opportunities to involve. The line manager of the hotel has the ability, motivation and opportunity to make the best payment design method for the employees and their retention. By the implementation of AMO model skilled and well-trained employees will do their assigned task in a better manner, and an encouraged employee will be ready to do extra work. In case of organizational performance assignment, the working environment of the hotel does not give appropriate opportunities, and then motivation and abilities becomes senseless (Cohen, et. al., 2013). In the Cavendish hotel, employee’s performance was not satisfactory due to its leadership and managerial style, this affects the whole organization. Line managers of the hotel are actively accountable for the welfare and wellbeing of the employees because workers are essential assets of the Hotel. With this, line managers must be able to apply, present and monitor employee’s functions to support hotel and workers' performance. After the execution of the AMO model, the performance and wellbeing of employees are increased with development and training, skills and ability, job satisfaction and motivation. So, it is analyzed that line managers have effectively implemented this theory for the better performance of employees and hotels (Reina and Marín, 2019).

It is concluded from the above report on organizational performance assignment that the performance payment system, its policies, principles and decision making concerning the Cavendish hotel is effectively done. The impact of the performance payment system was shown in positive and negative sense for the employees. There is a substitute performance payment system that should be executed as per the workflow of the organization and it is suggested that this is the best method for increasing the performance of employees. When this system is properly executed then the capacity and ability of employees will be enhanced as per hotel objectives. The leaders and line managers must be active about its pros and cons and have to eradicate these before program execution.

Adida, E., Mamani, H. and Nassiri, S., 2017. Bundled payment vs. fee-for-service: Impact of payment scheme on performance. Management Science, 63(5), pp.1606-1624.

Cohen, R.I., Jaffrey, F., Bruno, J. and Baumann, M.H., 2013. Quality improvement and pay for performance: barriers to and strategies for success. Organizational performance assignment CHEST Journal, 143(6), pp.1542-1547.

Grytten, J., 2017. Payment systems and incentives in dentistry. Community dentistry and oral epidemiology, 45(1), pp.1-11.

Higuera, V., 2020. Positive & Negative Reactions to Employee Incentives. [Online] Available at:

HRMP., 2020.Qualities of Effective Reward System in HRM. [Online] Available at: //

Manchikanti, L., Ii, S.H., Benyamin, R.M. and Hirsch, J.A., 2016. Merit-based incentive payment system (MIPS): Harsh choices for interventional pain management physicians. Pain Physician, 19(7), pp.E917-E934.

Reina, G.L. and Marín, G.S., 2019. Human resources practices and firm performance: exploring the AMO model in Spanish SMEs. SBIR-Small Business International Review, 3(1), pp.67-85.

Terera, S.R. and Ngirande, H., 2014. The impact of rewards on job satisfaction and employee retention. Organizational performance assignment Mediterranean Journal of Social Sciences, 5(1), p.481.


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