HR Corner Align performance and goals by Norman Yam Organisational goals must be linked with individual performance to increase overall business effectiveness If there is one concept that has permeated Holiday Inn Golden Mile Hong Kong's corporate culture, it is that of innovation. Ever since Brad Kirk took over as general manager in October 2004, the hotel has introduced a broad revamp to improve organisational performance. And the first step was to do away with outmoded management practices. "Traditionally, it is always the boss who calls the shots, whereas how the employees feel is given scant attention. Each day, everybody goes about doing their work routinely. At the end of the year, a flat bonus is paid out," says Mr Kirk, who believes that these practices are out of sync with the modern hospitality sector. Realising this, he implemented the Performance Management System (PMS), an InterContinental Hotels Group managerial process to drive performance improvement that is tied closely to productivity, employee appraisal, supervisor-staff communication, remuneration and staff deployment within the hotel. According to David Wong, director of human resources of the hotel, a breakthrough innovation in PMS "brings clarity to performance expectations and alignment among goals." Planning performance Mr Wong adds: "In the beginning of each year, performance goals and key performance indicators for individual staff are jointly discussed and agreed in one-on-one and face-to-face meetings with their direct supervisors. The goals of each employee will be aligned with that of the department and the hotel's overall business objectives." "If a target is just met, the employee is normally given a score of three out of five. If it is slightly exceeded, the score will increase to four. If surpassed by a large extent, it will be a five," says Mr Kirk. Managing performance As the hotel employees implement their agreed objectives, they will be assisted by their supervisors who should aim at removing performance obstacles in the work environment and providing the necessary resources, training and coaching. "As a supervisor, I need to think about giving my subordinates the tools they require to achieve their respective goals," says Mr Kirk. "For instance, the HR supervisor whose goal is to reduce staff turnover may request additional manpower. We will then review it and see if it is reasonable or if it can be met with the resources on hand." Besides resources, the leadership, motivation, feedback, reinforcement and support the work supervisors provide throughout are of the utmost importance. Reviewing performance During formal performance appraisals or review interviews, employees and their line managers will discuss how well the agreed objectives had been achieved and specified competencies demonstrated. Problem areas are identified and corrective measures put in place, including possible coaching and training that the jobholder needs. "Appropriate training will be arranged for individual staff based on their specific development needs. Therefore, some may be sent for sales technique training, while others might be asked to attend a Dale Carnegie leadership course," reveals Mr Kirk. Concerned about staff morale, InterContinental Hotels Group and Holiday Inn Golden Mile Hong Kong has commissioned an independent third-party to administer an Employee Satisfaction Pulse Survey, along with focus group interviews, to elicit staff feedback from every department. He says: "Data collected from these surveys will enable us to identify potential issues from each and every department, indicating the areas that the hotel management need to improve on." Rewarding performance Holiday Inn Golden Mile Hong Kong started implementing performance-based remuneration last year. The rationale, according to both Mr Kirk and Mr Wong, is to reward its employees fairly. "Employees with an appraisal score of four, for instance, could get as much as 3.4 months' year-end bonus. Others with a lower rating might be given a bonus of 1.39 months' salary. High achievers will also enjoy a higher rate of salary increment compared to average performers whose salaries will be adjusted to a level compatible with market rates," says Mr Kirk. Contrary to past practices of getting staff to perform rigidly defined roles, the hotel now expects its staff to multi-task and be receptive to "flexible rostering." Again, Mr Kirk emphasises the need to communicate with employees and let them know how customer satisfaction is vital to sustaining the hotel's revenue growth which, in turn, would affect their long-term welfare and benefits. Salient points Align goals of individual departments and employees with organisation's overall objectives. Clarify what is acceptable performance to staff and how it is to be measured and achieved. Support staff with resources and guidance as they set out to achieve work objectives. Offer deserving staff performance-linked benefits and non-monetary rewards. Taken from Career Times 10 March 2006, p. A18 Your comments are welcome at [email protected]