Case Review : Improving Performance at the Hotel Paris The New Incentive Plan The Hotel paris’s competitive strategy is “ To use superior guest service to differentiate the Hotel Paris properties, and to thereby increase the length of star and return rate of guest, and thus boost revenues and profitability. HR manager Lisa Cruz must now formulate functional policies and activities that support this competitive strategy by eliciting the required employee behaviors and competencies. One of Lisa Cruz’s biggest pay related concern is that the hotel Paris compensation plan does not link pay to performance in any effective way. Because salaries were historically barely competitive, supervisiors tended to award merit got only about the same raises as did those who performed poorly. Similarly, there was no bonus or incentive plan or any kind aimed at linking employee performance to strategically relevant employee capabilities and behaviors such as greeting guests in a friendl...
