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Example research essay topic: Pay For Performance In Hospitality Part 2 - 1,869 words

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... profitability. II. Pros and cons of PFP programs in hospitality management There exists an opinion, that 'no scientific study has ever found a long-term enhancement of the quality of work as a result of any reward system. Bribes and threats can get you a short-term effect, but that's it. (Hendrie, 2006) Is it true speaking about hospitality management, and what threats and mines can this system bring in itself if not properly applied? It is not argued that performance is one of the most important functions in human resource management for hospitality business.

It is also understood, that incorrect application of PFP plans may result in absolutely opposite indices than expected as for the employee performance. There are different opinions as for the role of PFP in management, and thus it is necessary to consider most important of them and make necessary conclusions. a. Is PFP a means of seducing employees through financial rewards? A question is dubious and can't be answered unilaterally.

On the one hand, as all of us strive for better financial state and stability, financial rewards may prove themselves to be effective in hospitality business, making employees provide their customers with higher quality services, as well as giving those grounds for improving their performance and implement novelties into their business field. On the other hand, it may also become a means of manipulating. It is difficult to prove anything in hospitality management, as the services provided are mostly immaterial, and thus proving their quality for receiving rewards may be difficult at times. Thus, hospitality service becomes an easy means for the senior managers to manipulate the lower staff. It may come out of the above-said, that applying PFP plans is absolutely inappropriate in the sphere of hospitality management with the aims of avoiding such manipulations; but it is also wrong as PFP is a very important HR function in hospitality management, and it should only be applied in combination with the other means of monitoring and control of customers, employees and management. This system of monitoring and control is complex, but it only needs to be created once, - later it will only be modified depending on the PFP requirements and objectives set.

b. PFP rewards don't open the reasons of the employee's misconduct. (Lashley, 2005) What is means here is that when the employee does not meet the objective set for him by the senior management, the reasons for this may not lie in the worse performance or lower quality of servicing. The reasons may be in pricing, for example. Thus, with the employee performance being one of the crucial HR factors in hospitality business, PFP should not be overestimated as the best means of improving employee performance. As hospitality is based on the quality of service provided to the customers, performance is even more essential here as in some other business spheres, related to services. Thus, certain systems of motivating the employees for better performance should exist.

However, it is also important to have a look at the statistics, acknowledging the fact that the use of PFP methods in hospitality management started to spread since the beginning of 2001. It is interesting to note that the level of customer satisfaction has been stable during the 30 years until the beginning of 2004. (Anonymous, 2004) This data may be used as the means to prove that the means of PFP have been ineffective and have not brought any visible positive impact on the HR performance. This is why it is impossible to state that PFP is the only and the best means of improving performance and motivating the employees in this servicing sector. The standards of performance may be stated I the contract with the employee, or the standards of performance may be set by the staff itself for the newly arrived workers, but the essence remains performance is the HR function, which in hospitality management should be paid serious attention to. It is not yet understood, how the statistical data should be viewed either from the perspective of no impact from the side of PFP, or from the perspective of PFP serving as the means of supporting the performance level on the high level and preventing it from decreasing. One thing remains unchanged with the service being the basis of any hospitality business, the means of rewarding, no matter material or non-material, must exist to motivate the employees.

III. Recommendations for the better hospitality employee performance in relation to PFP Pay-for-Performance is the basis for developing individual systems of rewarding in hospitality businesses. It is natural, that in small hospitality businesses such systems will be easier to implement, than in large hotels and casinos; but it should also be understood that for the small business to become large, there is no other way than to implement PFP-based plans for employees. Thus, in the light of all above-said and looking through the perspective of further performance improvements in the hospitality management, the following recommendations may become useful. 1. PFP should not be taken as the strict set of instructions to follow in order to motivate employees in hospitality businesses. It has already been said, that this system of reward may be looked at as both benefit and failure depending on the way it is used. 2.

In setting objectives for the employees, it is important to remember that these objectives should not come into conflict with other obligations the employee is to fulfill in his (her) daily work. Performance thus may not be improved, but even worsened, as the employee will concentrate on the obligations, which will finally bring him material or non-material reward, paying less attention to everything else. 'The real problem is that incentives work too well. Specifically, they motivate employees to focus excessively on doing what they need to do to gain rewards, sometimes at the expense of doing other things that would help the organization'. (Harder, 2003) 3. The rewards for each worker must be thoroughly considered, as the unsatisfied employee may bring more harm to the hospitality business through his (her) negligence towards customers, than unsatisfied customers themselves. It is very difficult for the newly created hospitality business to gain popularity thus employee performance is very essential for the hospitality management in general. Customers in relation to these services often rely on the continuity of service, its constantly high-quality and minimum drawbacks.

Thus, the PFP-based system may serve here as the means of retaining the employees who contribute into better hospitality performance, and motivating those who only start their work but display positive striving towards better performance. 4. In setting objectives for employees, management must have clear vision as for the real goals the employees may achieve. There is always a gap between manager's expectations and employee's expectations and wants. (Sparrow & Wood, 2004) Thus the quality of hospitality performance will not only rely on the system of rewards applied in any hospitality business, but on the level of agreement found between management and employees. The goals must be clear and the plans must be real thus the best result in hospitality HR management will be achieved. Conclusion The work has been devoted to the discussion of performance as one of the most important functions in hospitality management in relation to human resource, as well as detailed consideration of Pay-for-performance perspective, as the means of motivating the employees for better performance, and thus better hospitality management as a result of it. It must be concluded, that PFP is a simple system, but it should not be supposed as the best means of motivating employees.

It is under no argument, that employees must be motivated, but the means and systems chosen are to be based on the exact business. The work has shown, that in relation to PFP in hospitality business, there are enough 'cons' to be taken into account, and thus they must make hospitality managers think whether it is really what they want to apply to their hotel (casino, resort, etc) to make employees work better? Hospitality industry appears to be rapidly changing and developing, and PFP system must follow these changes, depending on the market requirements. It is not always possible for small hospitality businesses, thus it appears that PFP programs are not universal. They need very close consideration in relation to each business, into which this plan is to be implemented.

With all cons described in this work, and more questions left for another discussion, it becomes evident that PFP is far from being a perfect choice of motivating employees in hospitality business. As it has been said, hospitality appears to provide customers with immaterial services, the quality of which ultimately display themselves through the profitability of the business measuring performance in hospitality management needs additional monitoring and systems of control, as rewarding must be fair and diverse. PFP does represent the basis for creating such system of monitoring and control. PFP in hospitality business at present puts more questions than gives answers, thus it should either be reconsidered or totally changed to be applied to this sphere of business. Works cited Anonymous. "Hotel's Satisfaction Performance Recovers." Hotel & Motel Management, (2004): 4 Brander, J. , Harris, P. "Relating Business Orientation and Performance Measurement Design in a Service Industry Context." Proceedings of Performance Management (2003): 24 - 31 Brown, D. "Team rewards: lessons from the coal-face." Team Performance Management 2. 2 (2003): 6 - 12 Coyle, M. P. , Dale, B.

G. "Quality in the Hospitality Industry: A Study." International Journal of Hospitality Management 12. 2 (2005): 141 - 53 Crum, John. "Pay for performance: The Answer to the Human Capital Crisis?" The Public Manager 32. 3 (2003): 60 - 67 Day, Jonathan D. "Has Pay for Performance Had Its Day? The Way to Get Your Employees to Focus on Both the Present and the Future Is to Adjust Your Culture and to Weaken your Financial Incentives." McKinsey Quarterly, (2003): 46 - 49 Gratis, M. J. "The Devil's in the Details Pay for Performance Programs Revisited." 2006 12 Nov 2006 web Harder, Joseph W. "Play for Pay: Effects of Inequity in a Pay-for-Performance Context." Administrative Science Quarterly 37. 2 (2003): 321 - 328 Hendrie, John R. "The Slippery Slope of Pay for Performance Programs." 2006. 12 Nov 2006 web Hyde, A. C. "Pay for Performance: How Pay for Performance Has Emerged as the New Model for Human Resources Pay Practice and How Executives and Managers Will Be Challenged to Solve Its Complexities'. The Public Manager 34. 1 (2005): 3 - 9 Lashley, C. "Towards an Understanding of Employee Performance in Hospitality Services." International Journal of Contemporary Hospitality Management 7. 1 (2005): 27 - 32 Mintemayor, Edilberto, F. "Situation or Person? Contrasting the Effects of Budget Constraints and Individual Values on Pay-for-Performance Norms." Journal of Psychology 129. 5 (2003): 531 River, Howard. "Planning for the Transition to Pay for Performance." The Public Manager 33. 1 (2004): 29 - 33 Sparrow, J. , Wood, G. "You " re Stopping Me from Giving Quality Service." International Journal of Contemporary Hospitality Management 6. 1 (2004): 61 - 7 Star, B.

M. "Organizational Psychology and the Pursuit of the Happy/ Productive Employee." California Management Review 4 (2004): 40 - 50


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