HUMAN RESOURCE MANAGEMENT IN INNOVATION
ASSIGNMENT: PERFORMANCE MANAGEMENT
Word Limit: Maximum 3,000 words
Instructions
This assignment is based on the following fictitious business called the Long Reach Hotel
Use the case study below to answer the questions that follow. You are to imagine that you are an HR Advisor in the human resource Department advising the General Manager of the Hotel, Peter Rijeka. Wherever possible provide examples applicable to the business in your answers.
Prepare a report on the following matters:
a) Explain to Peter the purpose of a performance management system and how it would benefit the Hotels operations. Identify the factors that would make performance management system(s) successful in adding value to the business?
b) Outline a suitable performance management system(s) to be used by the hotel. You must set out the key features of a performance management system that will be effective in adding value to the hotel. You must justify the choices you have made in respect of the performance management system you recommend.
c) Often performance reviews do not achieve what they are intended to achieve. Explain to Peter what he needs to do to ensure performance reviews are effective, within the organisation.
d) Briefly explain how a performance appraisal system should link with training, counselling and career development.
CASE STUDY - Long Reach Hotel
Background introduction to the Long Reach Hotel
The Hotel is a privately owned and managed accommodation located next to the Maitai River in Nelson city. It consists of 90 rooms with a capacity to sleep 180 guests. The restaurant currently seats 50 persons inside and 50 in the courtyard. As a result of the recession and downturn in business travel and tourism in the region, management have made a decision to downsize the catering, functions and conference facilities and instead have refitted 40 of the rooms to a higher quality. Their thinking is to market the hotel to high end clientele that are lucrative, travel in small groups and that expect a high end service. The consequent restructuring in these areas has meant a redesign of work roles and one redundancy.
In recent years the Hotel has averaged around 70% occupancy rate. Guest surveys show 95% customer satisfaction which the owner puts down to the very high standard, of facilities, high service levels and attention to detail provided by all the staff. The Hotel has been operating for 20 years and has had three previous owners. The annual turnover has averaged around the $4.5 million mark over the past two years and returning a profit around $680,000 (or 15% of turnover).
Strategic Direction
A major strategic objective the owner is focussing on is to increase the quality of service and facilities offered; becoming a 4 Star Hotel - first class (currently at 3 Star rating - comfort). Although no mean feat, this would allow the Hotel to ‘pitch' to inbound agents and would be a competitive advantage within the Top of the South region.
To achieve this prestige the hotel owner has collaborated with two quality day spas in the area, where customers will be able to take advantage of spending time at the day spa, or can recruit or seconder the services of the spa staff to accommodate guest requirements at the hotel facility. The hotel has also refitted one of the conference spaces to include a full gym, spa and sauna facilities.
This will require the full commitment of the present staff and there will need to be some training offered to the current staff and training needs completed for any new staff hired in the future.
The business objectives for the Long Reach Hotel are:
? Consistently achieve 95% guest satisfaction
? Return at least 15% on investment annually
? Reduce waste, energy and water use by 20% over the next 2 years
? Network with local high end service providers for added value and to extend the prestige concept
? Increase guest numbers by 10% between May and September
? Provide professional development and training to all staff working towards 4 star accreditation
? Achieve Qualmark environmental standards within 2 years
? To recruit any new staff from outside the Nelson region over the next 2 years.
Target markets are:
? international interactive independent travellers
? domestic visitors ? business/corporate clientele
Full time salaried staff ranges are:
? A. General Manager (GM) 150,000--180,00
? B. Resident Manager 80,000-120,000
? C. Front Office Manager 40,000-60,000
? D. Front Desk Manger 35,000-45,000 ? E. Executive House Keeper 40,000-60,000
? F. House Keeper 25,000-35,000
? G. Restaurant Manager 35,000-50,000
? Executive Chef 60,000-70,000
? Sous Chef 45,000-55,000
Casual staff are employed on fixed term contracts during the high season. All positions have current employment agreements. Amongst other information required, they include employer and employee obligations in the case of misconduct or poor performance.