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Critical evaluation of individual performance related pay

Discuss about the Individual Performance of an Organzation Related Pay method.

The report talks about the way an organization functions with Individual Performance Related Pay method. The report is focusing on the functioning of ACU Hotel. It talks about the current scheme that is followed in the hotel which is not effective and has hampered the position and image of the organization. The description of IPRP in the report shows how it is important for the organization to focus on the activity of each and every employee. There are recommendations provided in order to improve the condition of the workers in the hotel. The case study shows how the hotel is suffering in satisfying its employees, which ultimately affects the growth of the hotel. The report draws the method of individual performance related pay (IPRP) to show how an organization should maintain a satisfactory environment for its employees.

IPRP stands for Individual Performance Related Pay that takes care about the payments given to the employees for their efforts and work. It is a method of managing payments of the employees by linking their salaries with their performance. Each and every employee is seen as an individual by the company. They are paid for their work according to the job they are assigned and the task they perform. IPRP system helps in managing the business effective and efficiently by taking care about the employees working in the company. Before hiring the employee the company checks the background and qualification level of the workers. It generally means compensation based on every individuals performance (Reiche et al, 2016). The pay given to the employees also helps in improving their performance. It encourages them to manage the risks that can develop anytime in the company. IPRP is considered to be reward system that can have great impact on the working of the employees. The term relates with the monetary transactions in business that takes care about the business functions. It helps in evaluating the performance of the employees and paying them accordingly. If the performance of the employees is better then payment allotted to him is also great. IPRP designs the payment structure for the members of the company. It is associated with management process where the pay of the employees is allotted annually and is increased significantly (Shields et al, 2015).

Individual Performance Related Pay is an effective way of managing incomes of the employees of ACU Hotel. The pay given to the employees is designed as per their designation. The wages depends on the level at which an individual work. The employees work under different jobs like, receptionist, room service, laundry service, etc depending on the number of customers that comes to the hotel (Banerji, 2013). The wages of the employees therefore depends on their designation like the manager is paid the highest and other services that are given by the employees are generally paid less. The IPRP system works effectively in the hotel and gives greater results in profit making. It can also be considered as a strategy made by the authorities of the business for motivating the employees to put their best efforts in providing service to the organization and service to the hotel. Somewhere the hotel is having the downfall in the business and due to less effective workforce as the hotel is unable to fulfill the requirements of the business. The use of IPRP method is not effectively managed by the hotel and hence employees have been giving negative reviews for it (Katou, 2016).

Current scheme

The condition of the organization is not good at all. It has various drawbacks that enable the hotel to achieve its target. The hotel is not at a good position due to lack of technical advancements and bad facilities. It is unable to meet the requirements of the customers (Van den et al, 2013). Thus, the current scheme may be having a limited impact on performance of the employees at the ACU Hotel.

The current scheme followed in ACU Hotel is not effective as the employees are dissatisfied with the payment method of the hotel. The scheme gives relatively less amount to its customers that it should provide. This creates dissatisfactory results in the workers and hence they end up doing wrong work which has no results. The scheme is not at all effective as it does not provide good results to the hotel. The reason behind bad results is because company fails to fulfill the expectations of the employees (Gupta and Shaw, 2014). ACU Hotel has inappropriate approach towards the functioning of business. The case study shows how hard the staff works to achieve the desired goal but fails. This problem arises due to lack of professionalism in the management. The reviews of the customers show the bad service that the hotel gives to its employees (Wilton, 2016). This creates dissatisfaction among the customers and they do not feel of visiting the hotel again. This is the reason that the current scheme of ACU Hotel fails to fulfill its target. The target of every hotel or an organization is to attract more and more customers towards it, but bad service provided at ACU Hotel to its customers becomes its downfall. The condition of the hotel is not good such as, the lights were broken, slow process, and no fresh juices, etc. were a flaw of the hotel. This shows that the hotel was not up to date and it is untidy. The declining room occupancy was another drawback for the hotel which restricted customers to check in into the hotel. These areas show the lack of management by ACH Hotel. The scheme of the hotel for providing services to its customers is not effective and one cannot assume it to be a great hotel. The leniency given to the employees at the hotel is the major cause of ineffective business. The case study shows that around 83 percent of the staff was not motivated and 92 percent of the staff showed that the reward system was not effective (Cardona and Morley, 2013).

Recommendations

Hence, it is really important for the hotel to change the scheme in order to show some betterment. The current scheme is not effective and does not provide profits to the hotel. The hotel has incurred losses and is unable to achieve the target due to lack of professionalism at the work place due to untrained employees (Paauwe, Wright and Guest, 2013).


The case study shows the harsh conditions that were faced by the hotel. The strategies of the organization are not good enough to make a healthy environment for its customers. The hotel is full of inappropriate service and facilities. Therefore, it is difficult to make profits (Bratton and Gold, 2017).

Recommendations are type of suggestions that provide to the company to run its business effectively and efficiently. The recommendations suggested below show how ACU Hotel can transform its business from losses to generating profits. If the hotel is able to stand on these recommendations, it will become easy for it to achieve their desired target.

In order to avoid the inefficiency caused by lack of payment method in the hotel can be solved if the hotel manages to perform its duties well enough by paying its employees with satisfaction. It is recommended the IPRP system is effectively followed in an organization only when an individual is examined for his work. The strategies involve maintaining and managing the task by the employees. It is recommended that hotel should increase the pay of the workers. This will help the management in motivating the employees to work in discipline and be sincere towards the work.

In order to maintain harmony in the business, the management can organize routinely seminars and conferences where they can discuss about how an employee should behave in the organization. The seminars can cover the topics such as loyalty and morality in the workplace, effective approach in working, etc.

The problem of lack of professionalism is one of the major threats for the company in attaining its profits. To avoid lack of professionalism, it is suggested that the hotel can hire qualified employees and train them. This will avoid the chances of creating errors in the management (Marler and Fisher, 2013).


The management should provide best services to its customers. This will make the customers happy and they will recommend the hotel to everyone. This in turn will become a benefit for the hotel in making profits by attracting more and more customers.

The home service given to the customers must be polite. The employees hired for the job of room serving must be polite in nature and should be ready to work at any time when called. The betterment in the room service shall be done by the management to attract more clients in the hotel. This will make the management run on a greater level (Storey, 2014).

The employees must be trained enough to serve the customers with better facilities. They can be paid high wages which will encourage them to work more and put their best efforts. This is one of the greatest suggestion that hotel can follow today. They can also provide incentives to them if they work hard to maintain good environment of the hotel.

The hotel can run in partnership so that it cannot be a burden on an individual to pay the cost of rent. The problems can be solved with mutual consent. This will be less time consuming and can give number of solutions to the business for a single problem (Varma and Budhwar, 2013).

The management can release offers like giving discounts on the rooms, giving free supplements on the bookings, etc. to attract customers. Giving advertisement is another way of promoting the business. This will ensure the business existence in the eyes of more and more public on a larger level (Armstrong and Taylor, 2014).

Conclusion

The report concludes by recommending the important strategies that is necessary to bring positive changes in the environment. It shows that Individual Performance Related Pay is very significant and adds value to the reputation of the management. IPRP helps the organization in giving great performance and obtain good results. But this is not seen in the hotel because of ineffective approach of the management towards its employees. The report shows that the condition of the hotel is not good and has no proper facilities to provide to its customers. Hence the report further gives recommendations to improve the level of performance of the hotel by increasing their pay according to their work. The case study presents an inappropriate scheme that the hotel follows and therefore this reduces their reputation. To carry out the solutions for these problems it is necessary for ACU Hotel to follow the method of IPRP positively.

References

Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management practice. Kogan Page Publishers.

Banerji, S.C., 2013. A study of issues & challenges of implementation of information technology in HRM. Global Journal of Management and Business Studies, 3(4), pp.435-440.

Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.

Cardona, P. and Morley, M. eds., 2013. Manager-subordinate trust: A global perspective. Routledge.

Gupta, N. and Shaw, J.D., 2014. Employee compensation: The neglected area of HRM research. Human Resource Management Review, 24(1), pp.1-4.

Katou, A.A., 2016. Human resource management and performance in the hospitality industry: Methodological issues. In Project Management: Concepts, Methodologies, Tools, and Applications (pp. 1980-1999). IGI Global.

Marler, J.H. and Fisher, S.L., 2013. An evidence-based review of e-HRM and strategic human resource management. Human Resource Management Review, 23(1), pp.18-36.

Paauwe, J., Wright, P. and Guest, D., 2013. HRM and performance: What do we know and where should we go. HRM and performance: Achievements and challenges, pp.1-13.

Reiche, B.S., Stahl, G.K., Mendenhall, M.E. and Oddou, G.R. eds., 2016. Readings and cases in international human resource management. Taylor & Francis.

Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., O'Leary, P., Robinson, J. and Plimmer, G., 2015. Managing Employee Performance & Reward: Concepts, Practices, Strategies. Cambridge University Press.

Storey, J., 2014. New Perspectives on Human Resource Management (Routledge Revivals). Routledge.

Van den Brink, M., Fruytier, B. and Thunnissen, M., 2013. Talent management in academia: performance systems and HRM policies. Human Resource Management Journal, 23(2), pp.180-195.

Varma, A. and Budhwar, P.S. eds., 2013. Managing human resources in Asia-Pacific (Vol. 20). Routledge.

Wilton, N., 2016. An introduction to human resource management. Sage.

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My Assignment Help. (2019). Individual Performance Related Pay Method: A Case Study Of ACU Hotel. Retrieved from https://myassignmenthelp.com/free-samples/performance-and-reward-human-resources.

"Individual Performance Related Pay Method: A Case Study Of ACU Hotel." My Assignment Help, 2019, https://myassignmenthelp.com/free-samples/performance-and-reward-human-resources.

My Assignment Help (2019) Individual Performance Related Pay Method: A Case Study Of ACU Hotel [Online]. Available from: https://myassignmenthelp.com/free-samples/performance-and-reward-human-resources
[Accessed 16 June 2024].

My Assignment Help. 'Individual Performance Related Pay Method: A Case Study Of ACU Hotel' (My Assignment Help, 2019) <https://myassignmenthelp.com/free-samples/performance-and-reward-human-resources> accessed 16 June 2024.

My Assignment Help. Individual Performance Related Pay Method: A Case Study Of ACU Hotel [Internet]. My Assignment Help. 2019 [cited 16 June 2024]. Available from: https://myassignmenthelp.com/free-samples/performance-and-reward-human-resources.

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