Tourism and Hospitality Industry: PeoplePower

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Introduction
PeoplePower is a company whose role is to provide labor services to its clients operating in the tourism and hospitality industry. The company offers its services to clients who need cleaning and maintenance services and this range from individual clients to business premises such as hotels. The company employees have the role of cleaning the clients’ premises, and the number of employees expected to carry out these duties vary depending on the clients who have asked for the services. The company has a total number of 12 management and administrative persons, 70 full time workers, 20 part time workers, and 160 casual workers. The clients pay the company 120 per cent of what they would pay if they got the services from their staff and the extra 20 per cent is for convenience and reliability to the company. This paper will describe the performance based compensation system that PeoplePower would use on all the employees, including the management and administration staff.
Theoretical Description and Justification
It is important for any company’s management to be concerned with the performance of its employees. The employees past performance also determines future performance thus the need for continuous enhancement of the employees performance. This means that, employers have the role of ensuring that they improve the performance of their employees, and this is greatly impacted on the compensation system that the company uses on all its employees. According to Sturman (2006), money is the overall incentive value that most of the employers give to their employees, but it is also important to note that the employees can improve in their performance if the management motivates them by linking pay to performance. This mean...

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...ational Performance: Incentives as Moderator. Journal of Academic Research. 1 (2): 229-242
Pazy, A., & Ganzach, Y. (2006). Pay Contingency and the Effects of Perceived Organizational and Supervisor Support on Performance and Commitment. Journal of Management.
Resurreccion, P. F. (2012). Performance Management and Compensation as Drivers of Organization Competitiveness: The Philippine Perspective. International Journal of Business and Social Science. 3 (21): 20-30
Sturman, M. C. (2006). Using your Pay System to Improve Employees’ Performance: How you pay makes a Difference. The Centre for Hospitality Research. 6 (13): 1-12
Weisbach, M. S. (2007). Optimal Executive Compensation versus Managerial Power: A Review of Lucian Bebchuk and Jesse Fried’s Pay without Performance: The Unfulfilled Promise of Executive Compensation. Journal of Economic Literature. 45:419-428

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