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Executive Summary:
The purpose of this project is to study the performance management systems that are
implemented in the organizations and in what ways the organizations are using the systems for
appraising their employees, monitoring them and controlling the issues encountered in the
process of the performance management systems. We have analyzed a three-star Hotel that what
type of systems they are using to appraise and monitor their employees and the feedback criteria
in which they get relevant information. Moreover we have also identified the coaching
techniques that the organization is using and the ways to avoid the under-performance in an
employee of the organization.

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Introduction of the Organization:

The Organization that we have selected for the Performance Management project is a three star
hotel Hotel Pak Heritage located at Devas Road Lahore. The Hotel Deals in all type of room
reservations, Banquette Hall reservations, and also providing restaurant chain to its customers.
They are engage in the restaurant chain by efficient hotel management who are supervised by
managers and they have developed a restaurant named as Shah Jahan Restaurant within the hotel
premise in which they are also targeting most of the consumers who are food lovers by providing
variety of foods including Fast Foods, BBQ Foods, Traditional Foods, and Italian Foods.
Basically the Organization is specialized in Hotel Management as the organization is a three star
and they are providing elite services to their customers. They have also international customers
who reserve rooms when they came to Pakistan so due to this the Organization has the main
focus on the Hotel Management and they recruit those managers who are highly qualified in the
area of business field because its all about the strategies that has been develop by the managers
like who to facilitate the international customers as well as the local ones and the criteria for
managing both of the customers will be different so keeping this thing in mind they are supposed
to identify those managers who will come up with multiple suggestions and ideas that could help
the Organization to increase its business and also it help in their business diversification. In order
to expand the Hotel Management and the business the Organization have a range of departments
who are supposed to managing all the corporate level issues as well as the internal and external
factors that the organization might face, the consequences may be affect the business goals like
the political change, the economic change and the technological change, so coping up from these
consequences the departments are concerned with the mutual collaborations, they are exchanging
information and also suggests some sort of amendments if there are some drawbacks, through
this they avoid the consequences as well as the mutual understanding provides the Organizations
a sense of team work, experience to work in a dynamic workplace where they interact with
divese group of people who might support or criticize their thoughts and suggestions, The more
they are integrated the more they can overcome the consequences that might damage the
business goals of the Organization. They claim that they provide more services in reasonable
packages than other elite class hotels like Hospitality Inn, Flatees and Pearl Continental and
these all the Hotels direct competitors in the market place.

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Hotel Pak Heritage Services:

The Hotel is engaged in the services by providing the customers elite class environment and a
sense of satisfaction to retain and acquire the customers as well. Following are some of the clicks
of the Hotel involving both Hotel as well as the restaurant food.
Shah Jahan Restaurant Services:

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The Hotel Services:

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Division of Departments at Hotel Pak Heritage:

The hotel has develop several departments who are supposed to manage the working system at
the organization. Following are the departments:
Room Division
House Keeping
Food and Beverages Department
Banquette Department
Restaurant Department
Kitchen Department
Helping Departments for House Keeping include Laundry which is a sub department
Engineering Department
Accounts Department
Sales and Marketing Department
Cost Controlling Department
Human Resource Department
Security Department
Room Division:
In this department, the manager is supposed to supervise the room division in a way to avoid
issues facing by the customers. The managers job is to taking feedback from the customers and
problems regarding the house keeping, what the customer expected vs what they get. The
manager primary job is to manage the room divisions in the hotel as well as manage the house
keeping of the room inclusing the quick services of the room, cleaning the room, presentation of
the room and monitors the day to day performance of the employees who are performing the
house keeping duties

Food and Beverages:

The food and beverages department has three further departments as mentioned above that is: the
banquette department, the restaurant department and the kitchen department. All these sub-

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departments are managing by the manager whose duty is to consider each departments need and
according to the need provide particular resources. If the banquette department needs food and
beverages for the function the manager first identify the expected usage of food and beverages
and then according to the situation provide the supply, the manager also inspected the department
actively and then provide the resources. In the restaurant department which is the major concern
of the hotel, the manager primary role is to calculate the per day consumption of the resources
and according to the results make decisions like in what quantity the resources should be given to
the restaurant department keeping in mind of the per day consumption. In this department there
are other customers that the manager needs to considers who are not the guests of the hotel but
visit the restaurant Shah Jahan to eat the lunch, meal or dinner. For these customers there is
another stock that the hotel has to maintain. These type of customers are actually the active
customers who partially get the services of the hotel bcause the restaurant is the chain of the
hotel so the restaurant impression is directly related to the hotel, the more it get good and
positive word of mouth the more the hotel will get number of customers(local customers). On the
other hand the third department is the kitchen department that is also one of the major concerns
of the hotel management. It deals with the food quality, the food preservation and the stock
issues. Like if the kitchen needs a food category to bake pizzas so the managers duty is to
provide them according to the need. The kitchen department is inspected by the manager on daily
basis because it is the most sensitive department and the most considerable as well. The taste is
concern about the kitchen experts who are supposed to maintain the taste and quality of the food
and also the feedback of customers is related to this department indirectly, if there are experts in
the kitchen who are well known about the food ingredients so ultimately the taste will be
maintain and the management will measure this through the customer feedback and the
likeability of the hotel and restaurant by the people.

Helping Departments:
These are the sub-departments who help the house keeping including laundry and concern about
the house keeping duties.

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Engineering Department:
The manager has assigned to the engineering department which is related to the technical issues
and technical assistance, In this head there are two factors to consider:
1) Technical Department
2) Mechanical Department
The technical department is supposed to deal with the computer based data entry and the website
managing tasks including the social pages promotions inclusing facebook and the official
website of the organization. The manager are also encouraged to innovate the sites to get the
attraction and to get maximum exposure as well. The mechanical department deals with the
physical equipments to fix the problem including the maintenance of the building, the structure
of the designs and all that.
Accounts Department:
In this department the organization has efficient finance managers who are handling the financial
analysis of the organizations and also managing the accounting techniques that are implementing
in the organization. The managers collect the yearly revenue and calculates the profits of the year
and determining the cost and analyze the budgeting decisions as well.
Sales and Marketing Department:
The marketing managers are appointed in the organization who are the key members that
contributes success in the organization. They analyze the situation and provide strategies that are
favorable for the organization. They assess the internal and external factors and on the basis of
that presented an annual report in which they present all the marketing related strategies and
analysis, they also keep an eye on their competitors that what they are doing and then counter
attack on them to retain the customers. Through maketing the sales for the organization increases
and the marketing decisions reflect as a result of sales like maximum reservations.
Cost Controlling:

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The organization has specialists and experts whose primary role is to critically analyze on the
overall performance of the departments and identify ways in which the best should be
implemented to control the costs.
Human Resource Department (HR):
The major department of the organization in which the most experienced and efficient managers
are appointed to hire the employee for the tasks to be accomplished. This department takes two
primary roles, first is to hire the employee and the second is to train the employee. The managers
are hiring the employee on the basis of qualification even if a chef is required so the minimum
qualification for chef is matriculation and if it is not fulfilled so the experience is the second
dimension on the basis of which the employee is suppose to hire.
Security Department:
This department is responsible for the legal issues including the property rights, the ownership
regulations and analyze if there are some amendments in the security rights by the government
so the organization deal with it. Also it include the taxation policies and the rate of taxes imposed
by the government.

Applicable Theory in the Organization:

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In the organization the managers has associated a reward system with the accomplishment of the
task in a way to reinforce the employee in a positive way and through the association of the
reward the employye is supposed to work hard and the motivation level has been increased
through the this. The managers in the organization are familiar with every employee and they
know about the potential of every employee working in the organization, so the managers assign
those task which are challengeable for the employee but these are also attainable. The employee
cannot say that the task assigned to him is not attainable, it is actually but the thing is that the
employee needs to be motivated enough to challenge his status quo by assigning him some tasks
that needs some sort of attention,thinking and technicals to achieve. They are associating the
reward system since for many years and it works in the organization. The manager says that
through this theoretical implementation, the employees are involved in their task more and they
are doing the work with the devotion. They are working more hard to get the reward in return.
The reward can be in a form of bonuses, incentives and promotion as well. Many employees
worked well through the implementation of this theory and they are promoted to assistant
managers in the organization. The person whom we met in the organization is a General
MANAGER (GM) in the organization, he said that he was appointed as a marketing manager in
the organization and he got this position through this implementation of the theory, he worked
with more devotion as a reward factor was associated and his motivation level to work more hard
was increased dus to the reinforcing factor, he worked with more efficiency and also taking other
assignments to prove himself that he has the potential to do that assignment. So by doing the
work with consistency and with efficiency his managers were impressed by him and after some
time he got the position of the general manager. So motivational theory is applicable and it works
well.

Hiring and Firing in the Organization:

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The process of hiring and firing in the organization is based on some steps. Following are the
hiring process that the organization has been considering:
Eligible Candidate including the relevant qualification for the managerial designations
Experience in the field
The hiring process in the organization consist of these factors, like for the managerial key
positions that includes the assistant manager posts, manager department post and the supervisory
jobs to manage the line managers of the organization must has the maximum qualification and
the organization prefer those who are specialized in the business field and whom are specialized
in the Hotel Management field. Today there is a detailed specialization iin the hotel management
field and multi national and three, four, five stars hotels are implementing the concepts of the
hotel management to make innovations in the strategies and to be more effective than the
competitors. The experience also consider by the organization. Basically this limitation is for
those who will deal in the non managerial tasks like chefs, waiters and the like. The chef should
be atleast a matriculation candidate and if he is not even a matriculation, so he should have a
good experience in the field like in cooking, dealing with the customers, welcoming them with
greetings.
Firing Process:
In the firing process, the organization has also some steps:
Warnings
Train the employee to avoid deficiencies
The organization has a concept that employees are the assets of the organization and we should
respect them, listen to them and cooperate with them. According to this concept the organization
will never fire the employee immediately, the organization first warn the employee about his
deficiency and tell him that what would happen if he did not overcome the deficiency. In this the
organization has also try to identify the major issue of the deficiency. They never blame the
employee on such issues but they identify the majot route of the issue like they ask the employee
that if he is suffering from some personal tension, or he is not happy with his work or the
working environment is not up to his expectations. So through these attributes they try to find the
problem. If these factors did not exist and the employee did not happy with the work or some

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other problem so the organization cope up this through training. In the training the organization
sent the employee to some other manager who supervise him and train him to avoid such
deficiencies. In the training session the employee also provide the environment to express his
feelings and emotions so that the trainer will find ease to train him and avoid the deficiency from
the employee.

The Process of Performance Management in the Organization:

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The organization is involved in the process of performance management in the following ways:

Planning
Act
Monitor
Control

Planning:
In the planning phase the organization is engaged with the role profile,key performance
indicaters and personal development plan. In the role profile the managers are identifying the key
result areas in which the manager is identifying that the knowledge the employee should know
about the task to be accomplished like if the employee has assigned the house keeping
department tasks so he should know about the division of rooms and the attributes in what the
house keeping is rated as satisfied or dis-satisfied by the customers. The other thing in the role
profile includes technical competencies like the necessary skills require to perform the task like
in the house keeping department the employee should have skills in managing and arranging the
division of rooms for the local and international customers of the hotel. It should be in an
efficient way. The managers in the organization also measure the individual performance through
the key performance indicators as to what the employee takes the best performance and how
much it can contribute to the organization objectives. The personal development plan includes
identifying the hidden talent in the employee and exaggerate it to be more effective in certain
dimensions at work.
Act:
In the acting phase, the organization basically considering on the performance activities like they
are increasing the performance by empowering employees to motivate them to accomplish the
task with devotion and interest. Implementing personal development plans by train the
employees in a way that they will be more successful in the future specially for the managerial
posts in the organization.

Monitoring:

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In this phase the company is monitoring the performance through providing continuous feedback
as well as providing coaching. The company has a concept that employees are the main assets
and they should be respect as mentioned above so in this regard the organization is also dealing
with under-performance employees through training and coaching.
Control:
The joint analysis of performance and the major concern of the organization in which they are
controlling by conducting a dialogue and feedback session discussing with the employees about
the various things which the employee takes. Through this they are providing their employees an
opportunity to improve themselves in the area where are not much efficient and the employees
are getting their performance assessment that what they have done throughout the year. So
through this the employees can bring changes in themselves and can perform well in the future.

Performance Planning and Agreements:

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Objective Setting for HR :

As mentioned above that Hotel Pak Heritage has a concern in the hotel management and on the
basis of this they hire those who are the best in the business fields and have a specialized in the
hotel management so according to this they have objectives that they have set in the human
resources in all the departments as the qualification based and the experience based hiring of the
employees. They never compromise in hiring and they have set the objectives of hiring an
employee. The practical world is far different from the theoretical eorld so sometimes the
objectives have to be changes and the other stimulus which can be situation influences the
objectives.
Measures:
According to the nature of the organization they measures the output that is generated by
financial factors::

How much market share increases

The incomes
The financial analysis
Whether they are getting the return on investment

Outcome Measures:
The organization also measuring the outcome in terms of attainment of the standard and the
additional knowledge of the employee that contributed in the assignment and also the skills.
Standards:
For each assignment and task the managers of the organization are supposed to measure the
standards by specifying the quality, quantity, the time factor to be done like if the marketing
manager has assigned a task to make a situational analysis and present a corresponding strategy
to overcome competitors tactics so the organization has clear the manager about the quality of
the material, the quantity in which the manager has to present and come up with multiple
suggestions, the time factor which is very important. The organization assigned a time frame in
which the assignment has to be done.

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Measurement Systems:
The organization measure the performance of each employee from the standards that they set.
Each employee in the organization holds some positive aspects as well as some negative aspects
and on the basis of this the performance can be affected in a positive or in a negative way.
Benchmark that as been set by the organization provide a clear and unbias result as every
employee will be satisfied of what he has done and contribute in the organization success and on
the basis of that he will get what he deserves. Through this measurement the organization will
not get into more depth for measuring the performance just compare the employee from the
standards that the organization has been established.

Managing Performance Throughout the Year:

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Coaching Methodology:
The coaching methodology that the organization implemented is very easy. As they involved in
the employee and ask them is there any problem with you or not? The organization welcomes the
employee to share their issues with confidence and the organization respect their employees as
we can say they are people-oriented organization so they interact with the employee in a pleasant
way and identify the major route of the deficiency in the employee. The organization is using the
coaching style as a persuader in more assertive.
Ways to Manage Under-performance in the Organization:
The organization Hotel Pak Heritage is using the training and coaching as an approach to cope
up under-performance employees. The managers assigned to each department has daily
interaction with the employees and assignments are given to the employees so managers know
well who is performing well and who is in under-performance, the managers interact with the
employees who are in under-performance and communicate with them and their basic motive is
to cope up the situation at the initial stage they do not want the problem to make a big issue for
the organization as well as for the individual.

Assessing Performance:

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Appraisal Methods Used:

For appraisals the organization is using the Ranking Method in which they rank the employee
that best performing his duties in the organization and has contributing well to the organization
success. The ranking of each employee depends on some attributes like:

Number of assignments completed per day

Part time worked or not
Internal interaction in the organization
How much contributed in innovation and suggesting new ideas

So on the basis of these attributes the employee is ranked and the increments and the bonuses
depends on the policy that has been made by the top management of the organization because it
fluctuates over time. On the other hand, promotions are also based on these rankings.
Feedback Criteria:
The feedback criteria in the organization is basically period wise. After every three months the
feedback has been given to the employees on their performances and the organization also
acknowledge the employees about their good and bad aspects and also inform them in which
segment they need improvements. The organization has some feedback criteria style that they
used:

Get opinion from the employee (giving and taking)

Cooperative or not
Satisfied or unsatisfied
Through Direct Observations
The use of HR Briefing

Performance Review Meetings:

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According to the General Manager of the organization the performance review meetings are
conducted after every three months in which the employees and their managers are involved and
the organizations top management executives also attended the meetings in which the managers
giving briefings about their supervisory departments and the actual performances of their
employees. The nature of the meeting is to identify the deficiencies of the people in the
organization and to fix it on time and further the objective of the meeting is to present new ideas
and innovations about the organizations well being and to exaggerate the organization to the
way of success.

Rewards Linked with Performance Management:

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The organization has the tendency to linked the rewards with the performance management as
mentioned above and the organization get many changes since they are linked the performance to
the rewards. The employees motivation level has been increased as they are more involved in
the work, assignments and also participate in the organizations objectives in a sense they come
up with new ideas and suggestions so, we can say that a reward linkage will have an immediate
and positive impact on the employees level of motivation. There is a direct relationship between
these two variables. The impact has been shown in the outcome of the organization as many
employees are supposed to participate in the tasks that has been assigned to them and the
organization has also get a good amount of sales revenues generated in the year.

Conclusion:

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After analyzing the organization in dept, all the factors that contributed to the performance
management of the three star hotel Pak Heritage and their systems through which they rank their
employees and the feedback criteria we conclude that performance management is the key to
success for any organization specially for those organizations who are people-oriented rather
than the task-oriented. Performance Management is a continuous process and it should take place
to know what are the employees status of performance because this thing will directly affect the
overall objectives of the organization and it is also related to the success of the organization.

Recommendations:
The only recommendation we would like to give this organization is that, they should also focus
on the online systems to evaluate performance management systems, like they should created an
online portal for every employee in whicha he can access to it and can see his current status
about his performance. Through this thing the issues and the under-performance attributes can be
removed more quickly. Many multi national organizations are using online performance
management systems like PEPSICO they have online portals for each employee. So by using and
adapting this the organization will perform well in the future.