Discussion On Human Resource Management In Cavendish Hall Hotel

Question

Task: Please read the assignment case study in Appendix A. 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.
Guidelines
Your response should consider:
• How and to what extent performance appraisals OR performance related pay might
improve organisational performance (in ‘theory’ and in ‘practice’).
• The characteristics of effective and ineffective appraisal OR pay design and
implementation.
• The reaction of employees to the performance review OR pay process.
• The ability, motivation and opportunity of line managers to design and implement the
appraisal OR pay process effectively.
Appendix A: Professional Body Mapping
Successful completion of this module provides evidence of the learning outcomes for unit
504, (Managing Performance) on the CMI Diploma in Management and Leadership and of
the CIPD module 5IOPv2, (Improving Organisational Performance) for BABM (HRM)
students. These are outlined below.
CMI 504: Managing Performance
1. Understand the rationale for managing performance within organisations
2. Understand frameworks, diagnostics and evaluation tools useud for
performance management
3. Know how to manager perfromance
CIPD: 5IPOv2 Improving Organizational Performance
On completion of this unit, learners will:
1. Understand the concept of high-performance working (HPW) and its contribution to
creating and sustaining a high-performance work organisation (HPWO).
2. Understand the contribution of performance management to high levels of
performance and the role of line managers in the process.
3. Know how to create and sustain a community of practice to build a high-performance
culture.

Answer

Introduction
Establishing effective collaboration with human resource management while managing the performance of the workforce enables the corporations to sustain good control on its employee turnover and rate of retention. From the study, it would be cleared how human resource management departments’ activities influence the performance of the workforce in rendering effective services to the potential guests in the hospitality industry like Cavendish Hall Hotel. As opined by Hutchinson, (2013), the concept of human resource management practices associated with performance management are broadly categorized into three aspects performance-related pay, training and development facilities along with reviewing performance appraisal. It is essential for the human resource management department of a corporation to examine the impacts of the above-discussed approaches on the employees in aspects to sustaining opportunities, improving capabilities and level of motivation so that they can get job satisfaction.

Coursework 1
How and to what extent performance appraisals might improve organisational performance?
According to Gifford, (2016), performance-related pay determines only financial rewards that are offered to the employees for their performance that are above the average standards. On the contrary, performance appraisal is a regular review of the workforce performance by the executive members of the company with an intention to enhance their professional abilities and skills that would benefit both the employees and the corporation in future aspects. In the matter of Cavendish Hall Hotel, it can be determined that the human resource management departments are essential to emphasize more on performance appraisal as compared to performance-related pay for motivating and encouraging its employees. After examining the financial benefits gained by Cavendish Hall Hotel from the individual performance, the management system renders performance related to pay as a reward to its selected employees. Ogbonnaya et al., (2017), with the approach of performance-related pay approach employees; get de-motivated which directly impacts on their performance adversely. However, it has been observed that the company performs performance appraisal in every six months, emphasizing on promoting career aspirations along with developing and learning requirements of the employees.

Analysing the deteriorating services provided by the staff of Cavendish Hall Hotels along with the increasing major complaints about the hotel in mostly renowned hospitality networking channel Trip Advisor, it can be determined that focusing more on performance appraisal would improve organizational structure and culture of the hotel. According to Saridakis et al., (2017), effective interim of appraisal enables the management system to improve flow of communication between the managers and employees. While analysing the employee’s engagement score it has been examined in this study of human resource management that opinions of staff are not considered by the managers which de-motivates them to the greater extent as they feel low values to the corporations. Besides, it has been evaluated that one of the managers of Cavendish was talking in a sharp and thought tone with the staff members, creating a superiority complex between the managers and staff of the hotel. As opined by Shields et al., (2020), an organization that merely focuses on the performance appraisal, encourages improvement and a good working environment for its staff so that their level of job satisfaction can be improved, which would directly impact the productivity of an organization. Benson et al., (2018), argued that performance appraisal leads to prone biases which directly affect the performance of the employees. For instance, from the case it has been evidenced that only 35% of the employees used to seek appraisal for their works from the managers, other staff were neglected due to employers' nature of biasness. However, this can be eliminated if the human resource management departments of the company promote their performance appraisal while taking assistance from the continuous improvement cycle. As opined by Kennerley, (2017), the theory of continuous improvement cycle helps to maintain the ethical working environment of the company by adhering job satisfaction to its staff. Integrating this theory would help Cavendish Hall Hotel, to eliminate biased nature of employers by shifting their focus on continuous employee’s development, which would help to enhance overall productivity of the hotel. 

Hence, the respective hotel can emphasize in the indicator of performance management such as human capital and human potential. The potential capital can be considered as the physical appearance of the hotel along with the resources which are needed by the customers as well as their maintenance. On the other hand, human capital is referred to as the assets that are possessed by the employees such as knowledge; abilities and skills which can help in the enhancement of the organisation.

The characteristics of effective and ineffective appraisal
An effective performance appraisal emphasize on characteristics that are discussed below:

Mutual trust and job relatedness
As opined by Lim et al., (2017), for promoting performance appraisal, it is essential for the human resource management departments of the company to generate mutual trust with its employees, which would help in developing confidence with the staff and their performance would automatically improve. On the contrary, ineffective appraisal breaks down the build confidence of the staff due to which employees start facing hassles with their job roles and responsibility. For example, due to the harsh comments made by a manager of Cavendish Hall Hotel towards a lady accounting clerk on her small error in banking paperwork was identified as ineffective appraisal from the side of manager to its staffs which leads to de-motivate the staff wills to develop more of their capabilities for the benefits of the company.

Training and standardisation
From the case, it has been evaluated baht in Cavendish Hall Hotel, employees are provided with all the necessary equipment which can provide best opportunities for the employees to render success in their job roles. This indicates effective appraisal as need and requirements of the employees for smoothly performing their job roles has been considered. On the contrary, it has been evaluated that the rate of encouragement to the staff from the managers is only 47%, which is very less. As depicted by Mani et al., (2018), providing training facilities plays a significant role in improving the standards of services of staff in the hospitality industry. Beside, from the employee engagement score it has been witnessed that the company employees of the company were lacking in sustaining opportunity to learn and grow which depicts the ineffective appraisal of Cavendish’ human resource management system.

The reaction of employees to the performance review
Comments on the Trip Advisor website for Cavendish stated that the staff of the hotel lacks professionalism in their services as per the four star hotel, due to which guests of the company have experienced poor hospitality services. Besides, it has been evaluated that only 46% of the staff stated that they are sustaining accurate opportunities to learn and grow whereas the remaining 53% showed their grievances towards this approach. This depicts that Cavendish lacks in integrating effective performance appraisal for their employees in associated with performance management system. Hence, this can be determined as a crucial reason for the lack of professionalism from the staff that is experienced by the hotel guests by the time of rendering hospitality services.

Only 35% of the workers were identified and appraised by their managers. This explains the biased nature of Cavendish managers towards their staff, which is a reason behind the poor level of job satisfaction sustained by the staff and ineffective human resource management. This directly influences the operational management performance, which ultimately leads to hamper the reputation of the company in the hospitality market. Besides, 58% of the staff stated that their managers and seniors do not pay any attention to them in order to guide and give proper directions. In the matter of poor directions, it has been evaluated that in the everyday's morning meeting held by Cavendish managers for the staff is eventually short emphasizing only on task allocations. The survey on human resource management depicted that 71% of the staff claimed that their managers do not bother to seek their opinion by the time of the performance management system, depicting superior and inferior complexities to them. This determines a major factor of de-motivating for the employees, impact of which is directly displayed on the performance of the hotel management neglecting the facts of high performance work system (HPWS).

The ability, motivation and opportunity of line managers to design and implement the appraisal effectively
As per the authority of the line managers, the organizational structure can be redesigned while promoting efficient leadership styles like situational leadership approach can be integrated. Amati, (2016), stated that situational leaders recognize the needs of the employee to improve their capabilities and efficiency. This enables them to promote training and development succession in a more flexible manner. Besides, assistance from the Maslow’s motivational theory can be taken by the line managers to improve employee’s engagement and motivation, which would ultimately improve employee performance and overall productivity of the company (Dwyer, 2017). From the employee’s engagement survey, clients’ comments on the Trip Advisor along with some conflict cases stated that poor and weak management system of Cavendish Hall Hotels which is directly hampering company’s reputation in the hospitality market. However, improving performance appraisal system with effective assistance of situational leadership style and Maslow’s motivational theory, the company can regain its lost reputations in the market while sustaining success and growth. Thus, there is a great significance of line managers on human resource management for supporting in training the employees along with hiring the new ones along with providing performance feedback to the employees and coaching them as well.

Nevertheless, performance appraisal practices can be incorporated within the respective organisation which can help the employees to get boost up in the organisational culture. For instance, psychological appraisals can take place like identification of employee related emotional; and intellectual traits. This can help in analysing the future performance of the employees rather than overseeing the past experience. On the other hand, clear goals needs to be defined along with offering insights for countering the productive tasks as well.

Conclusion
Performance management systems along with human resource management are determined as a holistic approach for controlling the complexities of the business units, especially in the hospitality sectors. Due to the poor integration of performance management system, Cavendish Hall Hotel encountered major adverse comments from its customers which eventually render the company encounter with declining room occupancy rate while attracting negative approaches from its head departments.

References
Amati, C., Gray, K. and Foley, J., 2016. Managing performance under pressure. In Human Factors in the Chemical and Process Industries (pp. 451-471). Elsevier.

Benson, J., Brown, M., Glennie, M., O'Donnell, M. and O'Keefe, P., 2018. The generational “exchange” rate: How generations convert career development satisfaction into organisational commitment or neglect of work. Human Resource Management Journal, 28(4), pp.524-539.

Dwyer, K., 2017. Managing performance: Getting the balance right. IQ: The RIM Quarterly, 33(3), p.48.

Gifford, J., (2016) Could do better? Assessing what works in performance management, London, CIPD

Hutchinson, S., 2013. Performance management: theory and practice. Kogan Page Publishers.

Kennerley, M., 2017. Indicators for measuring and managing performance. Higher Education Strategy and Planning: A Professional Guide, p.213.

Lim, M.K., Tseng, M.L., Tan, K.H. and Bui, T.D., 2017. Knowledge management in sustainable supply chain management: Improving performance through an interpretive structural modelling approach. Journal of cleaner production, 162, pp.806-816.

Mani, V., Gunasekaran, A. and Delgado, C., 2018. Enhancing supply chain performance through supplier social sustainability: An emerging economy perspective. International Journal of Production Economics, 195, pp.259-272.

Ogbonnaya, C., Daniels, K. and Nielsen, K., 2017. Does contingent pay encourage positive employee attitudes and intensify work?. Human Resource Management Journal, 27(1), pp.94-112.

Saridakis, G., Lai, Y. and Cooper, C.L., 2017. Exploring the relationship between HRM and firm performance: A meta-analysis of longitudinal studies. Human resource management review, 27(1), pp.87-96.

Shields, J., Rooney, J., Brown, M. and Kaine, S., 2020. Managing Employee Performance and Reward: Systems, Practices and Prospects. Cambridge University Press.