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
friendly manners or providing expeditious check in and check outs. The bottom
line for Lisa and the CFO was that the
company’s financial rewards system-potentially, the single big gest tool they
had for channeling employee performance toward accomplishing the Hotel Paris’s
goals- was totally inadequate. She and her team thus turned to the job of
deciding what sort of incentive based reward system to install.
Based on their analysis, Lisa
Cruz and the CFO concluded that by any metric, their company incentive plan had
to be changed. The percentage of the workforce whose merit increase or
incentive pay was tied to performance was effectively zero, because manager
awarded merit pay accros the board. No more than 5% of the workforce ( just the
managers) was eligible for incentive pay. And, the percentage difference in
incentive pay between a loe performing and a high performing employee was less
than 2%. Lisa knew from industry studies that in top firms, over 80% of the
workforce had merit pay or incentive pay tied to performance. She also knew
that in high performing firms, there was least 5% or 6% difference in incentive
pay between a low perfoming and a high performing employee. The CFO authorized
Lisa to design a new strategy oriented incentive the pay plans of just about
all the company’s employees.
Lisa and the company CFO laid
out three measurable criteria that the new incentive plan had to meet first, at
least 90% (and preferably all) of the Hotel Paris’s must be eligible for a
merit increase or incentive pay that is tied to performance. Second, there must
be at least a 10% difference in incentive pay between a low performing and high
performing employee. Third, the new incentive plan had to include specific
bonuses and evaluative mechanism that linked employee behaviors in each job
category with strategically, relevant employee capabilities and behaviors. For
example, front desk clerks were to be rewarded in part based on the percentage
of room cleaning infractions.
With this criteria in mind, Lisa
and her team turned to designing the new merit and incentive pay plan. The
created a larger merit pay pool, and instructed supervisors that employees
scoring in the lower 10% of performance were to receive no merit pay, while the
differebce in merit pay between the top category and medium category employees
was to be 10%. They contracted with an online employee recognition firm and
instituted a new “Hotel Paris Instantaneous thank you award program.” Under this
program, any guest or any supervisor could
recommend any hotel employee for an instantaneous recognition award; If
approved by the department manager, the employee could choose the recognition
award by going to the company’s website. The incentive structure for all the
company’s managers, now ties at least 10% of each manager’s annual pay to the
degree to which his or her hotel achive its strategic aims. The plan measure
this in term of ratings on the guest satisfaction index, average length of
guest stay, and frequency of guest return. Ratings on allthese metrics soon
begin tp rise.
Question
1.
Discuss
what you think of the measureable criteria that Lisa and the CFO set for their
new incentive plan
2.
Given
what you know about the Hotel Paris strategic goals, list there of four
specific behaviors you would incentive for each of the following groups of
employees: font desk clerks, hotel managers, valets, housekeepers.
3.
Lay
out a complete incentive plan including all long and short term incentives) for
the Hotel Paris’s hotel managers.
Answer :
1. In my opinion Lisa and her team in the provision of incentives to their employees well enough. By applying these things will get better employee performance and satisfaction with the living will increase. incentives are very effective to improve the performance of employees in order to better work If it is associated with the theory based on the performance framework Austin Hayne which divides into five criteria , Good performance, responsibility, obedience, cooperation and honesty. a performance appraisal feedback to the employee because the results obtained are used to motivate employees in determining incentive. One way to increase employee performance incentive system is the right and fair in accordance with what has been done in the performance of employees.
Criteria
that must be measured to differentiate between high performing and low
performing employees could be based on :
a)
Speed
(Time needed to served the costumer)
b)
Friendliness
(Expression given when serve costumer)
c)
Delicacy
(not only about how fast the service but also include how delicate
it was)d. Patience/Complaint Resistance (measure how patience
employees could resist costumercomplaint)e. On Time / On post
(measure how on time employee attend to their post after rest orwhen their
time shift comes)based on this behavior the manager could look the outcome
like :
a.
Increasing
in stay and return rate of the costumer.
b.
Willingness
of the costumer to recommend this hotel to othersc.
c.
Good
image, and professionalism of this hoteld.
d.
Feed back
from costumer about what is lack from costumere.
e. Increasing number of guest
2. And the purpose of development of strategies Hotel Paris is how to improve the performance of employees , so it needs to be planned for bonuses and incentives. Strategic Goal that Hotel Paris want to accomplished is like a
a. Increasing Employee
performance.
b. Increasing Number of guest
that attend this hotelc. Increasing stay and return rate to this hotel.
c. Increasing effectiveness
(linked) of incentive plan to boost employee performance.
d. Increasing Eligibility rate of employee so
that they could got higher incentivef. 10%
differentiation payment between low and high performing employeein order
to achieve this goal we must specify behavior for each job that related to this
goal. I will give the
incentive if they do this:
A. Front desk clerk / Receptionist
The receptionist is the person in charge of receiving guests in hotel. The receptionist is usually placed in the front, is intended that the guests who come easy to know an easy way to find information. Terms - the requirements to become a good reception:
1. SKILL : must be able to organize work with a handle and can take care of guests who come to the company. For that a reception should be good cooperation between superiors, co-workers, subordinates and with other departments is indispensable for the smooth work. To that end, the receptionist must have a desire to help one another and respect. A receptionist must have the ability to communicate well to say something by way of a straightforward, effective, efficient and friendly, so guests do not feel disappointed even if their wishes are not fulfilled. Thus, guests can grasp and understand with a situation through a receptionist good explanation.
2. KNOWLEDGE
International language skills also must be mastered an When this is controlled by the receptionist, then this is a powerful weapon that can bring the receptionist career jump as high. Specialized knowledge : Must have accuracy, it becomes very important to remember that the receptionist is the person who handles guest. So he is required to always meticulous in counting a guest account, write down the name and number of guest rooms and other important matters related to the guest to the hotel receptionist.The main tasks of a receptionist, in addition to welcoming guests to arrive, is its ability to sell rooms and other facilities in the hotel for the reception of the hotel. Therefore, mastering the information about what the hotel production.The receptionist should be friendly to the employees within the company, the receptionist should recognize the names and positions of vast quantities of it. Hence, some of the characters often become the criteria to be a receptionist. For example, sociable, friendly, and courteous.
3. BEHAVIOR
Looks good, neat and clean, it is not only related to the personality of the receptionists were clean and tidy, but also include things that are nearby, such as working equipment such as stationery should be neatly arranged in place. Guests will be impressed and satisfied with the services provided by the receptionist good, neat and clean.
4. PERSONALITY
A hotel receptionist should have a good personality and fun, which always is always ready to assist guests when required, pleased to be associated with guests and others and can be a good listener.Persistent and intelligent. a receptionist is always doing the same work from morning to evening. Boredom is the first word that must be faced. Because boredom can point to negligence on the job front. For example, a company with a face to face unfriendly and did not smile tugging at his lips.Good, polite, friendly, thoughtful. Either because they always provide the best service to inter inside the company and to other companies. The receptionist at a particular company, there are times when assigned to connect between the parts of the company through intra-company phone. The receptionist also must be friendly to other companies, since this is one way to show a good image of the company.
B. Hotel Manager
the
Hotel Manager is responsible to manage property operations on a day to day
basis of a single property to assure optimum performance and continual
improvement in the five Key Result Areas (guest service, employees,
sales/marketing, property appearance, and profit/financial control.
Coordinates, directs and manages the staff and everyday hotel operations to
achieve profitability, guest satisfaction and efficiency while maintaining
standards set by the company assuring 100% guest satisfaction.
1.
FAST RESPONSIBILITIES:
a. Directly manages the hotel staff on a daily
basis; supervises a total of 8 to 10 employees on the Property. Is responsible
for the overall direction, coordination, and evaluation of this unit.
b.
Carries
out management responsibilities in accordance with the organization's policies
and applicable laws. Responsibilities include interviewing, hiring, and
training employees; planning, assigning, and directing work; appraising
performance; rewarding and disciplining employees; addressing complaints and
resolving problems.
2.
HAVE LANGUAGE
SKILLS:
Ability to read
and speak the English language and comprehend simple instructions, short
correspondence, and memos. Ability to write simple correspondence. Ability to
effectively present information in one on one and small group situations to
customers, clients, and other employees of the organization. Ability to
effectively communicate professionally with guests, associates, supervisors,
and others as required for optimum operation of the property. Conversational
Spanish would be beneficial. Ability
to organize multiple projects; manage and prioritize multiple tasks and meet
deadlines.
C. Valet
a. Collects and
delivers guest laundry, dry cleaning, pressing items in alternation, to and
from the guest or floor pantries, according to the telephone record sheet.
b. honest when
Inspects clothing before dispatch and report to supervisor any items found in
pockets of guests or damages.
c. Ensures that
guest laundry, dry cleaning and pressing are collected and returned as quickly
and efficiently as possible.
d. Checks
carefully on the quality of guest items and the count before return to guests.
e. Fast respon
when Pick up guest calls
D. Housekeeper
a.
Fast when clean
corridors, lobbies, stairways, elevators and lounges as well as guest rooms,
organize work schedule from the room status list, arrivals and departures,
distribute linen, towels and room supplies, restock room supplies such as
drinking glasses, soaps, shampoos, writing supplies, mini bar. replace dirty
linens with clean items, inspect and turn mattresses regularly, store all dirty
laundry in line with company policy, monitor guest laundry bags, replace
laundry bags and slips.
b. Friendly
when respond to guest queries and requests, respond to calls for housekeeping
problems such as spills, broken glasses, deliver any requested housekeeping
items to guest rooms.
c. ensure
confidentiality and security of guest rooms, follow all company safety and
security procedures, report any maintenance issues or safety hazards, observe
and report damage of hotel property
3.
Incentive Plan For Hotel Paris
INCENTIVE PLAN EXECUTIVE EMPLOYEE HOTEL PARIS ( Manager and other executive)
No
|
EXECUTIVE INCENTIVE PLAN
(MONTHLY PAYMENT)
|
||||
1
|
Sallary (16%)
|
Bonuses (22%)
|
Long Term (42%)
|
Short Term (20%)
|
Total
|
$ 10,000
|
$ 13,750
|
$26,250
|
$12,500
|
$62,500
|
|
*the
percentage used to mixed incentive above based on sarbane-oxley act.
Information
:
1. Long term payment is stock
option,and the plan that I used to determine it’s amount
based on performance achievement plan.
2. Short term payment that I
used is almost same with annual bonuses but it also depend on how wellthey
performed their job so I used multiplier approach to determine their incentive.3.The amount above only example to make it
easier to calculated.
I used multiplier approach to determining Annual (short term) and long
term bonuses.
Multiplier Approch
|
||||
Individual Performence ( Based on
appraisal weight = 0,5)
|
Company Performance (based on
number of guest attending’s target)
|
|||
Excellent
|
Good
|
fair
|
Poor
|
|
Excellent
|
1.00
|
0.9
|
0.8
|
0.7
|
Gppd
|
0.8
|
0,7
|
0.6
|
0.5
|
Fair
|
0.00
|
0.00
|
0.00
|
0.00
|
Poor
|
0.00
|
0.00
|
0.00
|
0.00
|
To determine the dollar
amount of a manager ‘s award multiply the maximum possible (target) toappropriate factor in matrix
And to
determine individual performance I used guidance table below
Individual Score for Executive The Hotel Paris
|
||||
FACTOR
|
Excellent
|
Good
|
Fair
|
Poor
|
Firmness
|
1.0
|
0.8
|
0.6
|
0,4
|
Patience
|
1.0
|
0.8
|
0.6
|
0,4
|
Leadership
|
1.0
|
0.8
|
0.6
|
0,4
|
Stress
Resistance
|
1.0
|
0.8
|
0.6
|
0,4
|
Individual
factor above we mixed with our target outcome (it depend on how much we weight
it) andthe score we matched with score at multiplier approach and we multiply
it with highest possible shortterm and long term incentive.in here supervisor
rule really important to give objective scoring
And for Non executive employee I used same method but with different
factor at individualscore,plus I use double checked performance not only by supervisor
scoring but also I will use a kind of performance (satisfaction card) that will be filled out by guest.
Simple Value Chain for “the Hotel
Paris”
HR Scorecard for Hotel Paris
International Corporation
semoga bermanfaat untuk tugas kuliah anda.
Dini Nasution
Alumni PWD USU
Komentar
Posting Komentar