NOTE: Free essay sample provided on this page should be used for references or sample purposes only. The sample essay is available to anyone, so any direct quoting without mentioning the source will be considered plagiarism by schools, colleges and universities that use plagiarism detection software. To get a completely brand-new, plagiarism-free essay, please use our essay writing service.
One click instant price quote
Many articles have been written on PFP programs for motivating employees. It is important here to consider the means of applying PFP in hospitality sector, and deciding which one will serve as the most effective means of rewarding. First of all, it is necessary to point out, that the PFP system has been designed for resolving the issues of salary-performance correspondence. These are the use of any means of payroll and rewards, when it depends on the differences in how the employee performs; according to the data acquired through the Annual Hewitt Associates Salary Increase report, (Coyle & Dale, 2005) the amount of finances and other means directed at PFP programs ha six times increased among different enterprises.
However, it should also be remembered, that in firms dealing with production, the level of employee performance is easier to trace and to control, through the amount of the production he (she) produces, his role in this production and the quality of products. In hospitality management the level of employee's performance is difficult to trace through the fact, that this level is usually judged through the number of clients served and attracted, the level of customer satisfaction, which also requires special additional research. For the application of PFP programs in hospitality industry, there should be designed special means of evaluating the level of employee performance, and in creating the performance plan for the period, a list of objectives set will certainly be different from the one in any manufacturing industry. Let's have look at the most widely-spread systems of flexible payroll and their application in the hospitality management. 1.
Commission fees. This is one of the oldest and the simplest PFP systems. The core essence of this system is in the fact that the employee receives a percentage of the sum, which is paid by customers to the enterprise in case he sells the goods or provides the service. This system of rewards is not far from being popular. The reason for this is that constantly changing markets make employers invent new systems of motivation of their employees. 'As applied to the hospitality industry, with the clearly developed systems of tips and other customer rewards, commission charges have stopped to serve as the means of employee motivation long ago. ' (Crum, 2003) Using this method in hospitality business appears to be ineffective at present, and employers look for other means of motivating their workers.
Various resources make special attention on the fact, that sometimes non-financial methods of rewards become far more beneficial than those of financial character. 2. Financial rewards for the achievement of the set objectives. River (2004) notes, that this is one of the most widely-spread means of PFP rewarding. He notes that about 61 % of companies using PFP plans prefer this method.
These payments are usually performed when the employee conforms to certain criteria, which are set beforehand. Among these criteria there may be those of economic character, quality character, personal evaluation by other employees, etc. Each company sets its own criteria for this, and at times they may be rather unusual. In hospitality management these criteria may vary greatly, and may also be unusual at times. For example, it is possible to define one of the criteria for rewarding the senior management through the level of their employee satisfaction with their services. On the other hand, as the level of customer satisfaction is the crucial criterion for any hospitality business, this satisfaction may be measured either through the independent audit, or through the applications, which each customer would fill on visiting a hospitality entity with notification of the employee's name that provided the customer with this or that service.
Free research essays on topics related to: employee performance, hospitality management, hospitality industry, customer satisfaction, level of customer
Research essay sample on Rewarding Health Industry Employees
