A review of PRM at your own organisation (or one with which you are familiar or chose to research) and associated questions. This is recommended if students have sufficient access to PRM information on an organisation.

International Performance and Reward Management - 44-708970-AF-20234

2024-25

The learning outcomes for this module are assessed by one piece of coursework worth 100% of the module marks. 

Brief for Assessment

Introduction.

The learning outcomes for this module are assessed by one piece of coursework worth 100% of the module marks.  Please select from ONE of the two coursework options below:

Option one:  A review of PRM at your own organisation (or one with which you are familiar or chose to research) and associated questions.  This is recommended if students have sufficient access to PRM information on an organisation.  You must be able to cite/reference the sources used to justify your points (e.g. company website) otherwise the essay will not considered to be credible and will automatically be failed. Therefore this option will only apply to a very small number of students, if any.

Option two: The module also provides an alternative assessment for those students who do not feel they have sufficient access to PRM at an organisation.  This alternative coursework is a case study Review of PRM @ Airedale Spa Hotels. This is a case study of a fictitious hotel chain.  The assessment requires you to read the case study and write an assignment which answers the questions set for the case study.

You can choose to focus solely on the UK or widen the scope of the work to cover a region/country of your choice, that is relevant to the organisation.

Students can perform equally well by selecting either option.

Assessment questions

Base your evaluation and recommendations on the questions below for your chosen organisation (either option 1 or option 2):

Part 1: Review of current practice (30%)

• Critically evaluate the performance and reward offering at your chosen organisation:

Ensure you use theories, concepts and models and literature as an evidence base and to assist you in your analysis. Use PRM information from the organisation you have selected to provide the basis of your review, e.g. how does the current PRM package help the company in what they are trying to achieve (business plans, vision, values, etc). You must include a diagram that shows what the current Total Rewards package is for the organisation. This can be in the text or in the appendix, but it must be referred to.

Part 2: Analysis of potential challenges and issues (20%)

• Discuss the cultural and PEST (political, economic, social and technological) challenges and factors that need to be considered when developing the new PRM Strategy and its implementation. 

You should use a PEST analysis tool to help you with this section.  The actual PEST analysis must go into the assignment appendix but key points raised in the PEST should be discussed in the main body of the text.  Make sure your PEST is related the PRM issues affecting your organisation and not just a general business- related PEST with no PRM implications.  The PEST should be applicable to the region or country you have chosen to focus on in your assignment.

Your critical analysis in part 1 and your cultural and PEST analysis in part 2 should provide you with some key PRM related issues which will then feed into part 3.

Part 3: Development of a Total Rewards Strategy and Performance and Reward Policies, Tools & Procedures (50%)

• How might your chosen organisation improve on their offering in order to meet these challenges?

Provide justified and well-argued recommendations and solutions for the suggested PRM approach.  These should include:

• A suitable reward package i.e. tangible and intangible; pay, benefits and intangible rewards; what rewards are suitable given the current climate?
• An appropriate performance management system and associated practices, procedures and tools i.e. how will performance be measured, managed, evaluated and rewarded? Think of organisational and individual performance levels. 

Provide a rationale for your choices and justification for them via a mixture of theory, models, literature and comparisons with other organisations. You must include an updated diagram that shows what the proposed Total Rewards package is for the organisation. This can be in the text or in the appendix, but it must be referred to.

Plus a relevant conclusion.

The above weightings (30% etc.) are there as a guide to how much effort / word count you should devote to each part/question.  You will also need an introduction and conclusion.  The final overall mark will also be moderated (up or down) based on the other aspects of the marking matrix (see Appendix 1 below) e.g. use of theory/models/concepts, use of evidence and general and presentational aspects of your work.  

Option 2 – Airedale Spa Hotels - case study brief

This assessed case study is based on Airedale Spa Hotels, a fictitious spa hotel chain based in the South of England.  They are a multi award winning UK-based firm that are considering focused expansion to the Netherlands, Denmark and other international locations.  They currently have an interesting Performance and Reward offering and for this case study, you will be evaluating this and formulating ideas to improve it.

Below, you will find information about this fictitious company.  The information is written as if it has been taken off the company web pages to make the case study seem more real to life.  Please look at the information with an academic and critical eye. 

Airedale Spa Hotels: our story...

Airedale Spa Hotels is a small chain of luxury hotels with a strong focus on the luxury spa facilities provided at each hotel and also on offering luxury active family breaks during the school holidays.  The hotels are owned by the Broadstairs family and are located in the south of England in Hampshire, Sussex, Kent, Dorset, Somerset and Wiltshire.

Airedale Spa Hotels and business

The company started 35 years ago with the Airedale Spa Hotel in Brockenhurst in the New Forest and has since expanded to a total of 7 hotels.  Although it remains privately owned and the Broadstairs family’s involvement in the company is still very high, they are now supported by a professional senior executive team and middle management structure.  There is a head office facility in Bournemouth that creates centralised policies and strategies, and each hotel has its own professional and management team to manage the day-to-day business.

The hotels are all based in period mansions in stunning countryside settings.  The hotels have been extended and modernised to create more space and meet modern day needs.  The hotels target the luxury UK holiday and short break market and are also popular as a corporate and leisure function venue for example, a venue for training courses, corporate events, meetings, weddings, parties etc.  The hotels all have luxury spa facilities with a pool, gymnasium and treatment rooms.  Several also have extensive sporting facilities, e.g. tennis courts and sports halls.  Some have an outdoor pursuits centre and a golf course on site.  All the hotels offer packages with free childcare facilities in the school holidays and children’s meal sittings to attract the family market.  The hotel offers rooms on various deals from room only to dinner, bed and breakfast and special children’s packages are also available.

The hotel chain plans to expand in a controlled manner into Europe and possibly other areas of the world for example China and countries on the African continent over the next five years.  All expansion is funded from the company profits and the company has no plans to float onto the stock exchange.  The company will remain owner led. 

Competitors

Airedale Spa Hotels are the only chain in the local area offering the mix of spa, sporting facilities and family friendly facilities.  However, the Luxury Family Hotels chain do offer family focused luxury spa hotels, with 8 hotels but spread over a wider area of the south of England and Wales, and with less focus on sporting facilities.  Here is a link to this hotel chain https://luxuryfamilyhotels.co.uk/ . The Scottish Hydro hotels, particularly the Crieff Hydro offer similar facilities but in Scotland (https://www.crieffhydro.com/).

Please feel free to research the UK market and relevant international markets to inform your case study analysis.

Airedale Spa Hotels and the Environment

The Airedale Spa Hotels are all located in beautiful old buildings in stunning countryside locations.  These are beautiful assets, so we’re keen to look after them.

We understand that our business has an impact on the environment, so we commit to thoughtfully and responsibly reducing that impact.

We regularly review everything that comes into the business and the levels of waste it creates.  We also strive to prevent pollution by sourcing our supplies locally as well as recycling glass, paper, cardboard and other materials.

In terms of energy consumption, our challenge is to deliver modern comforts and hotel standards in period buildings.  It`s an on-going responsibility, and we continue to investigate alternative sources of heating, hot water and power.

Whether it`s keeping our staff up-to-date on the latest legislation or asking our guests to do their bit, every effort we make to reduce our environmental impact is part of our commitment to the Green Tourist Business Scheme (GTBS) https://www.green-tourism.com/pages/home through which we are working towards Gold accreditation. 

Airedale Spa Hotels our vision, mission and values:

Our Vision
To combine luxury and relaxation with a healthy and stress-free break.

Our Mission
To have a leading presence in the luxury spa hotel market by being the first choice for guests and team members.

Our Values

HOSPITALITY – We are passionate about delivering exceptional guest experiences and services.

LUXURY – We bring a bit of luxury and indulgence to our guests’ lives.

HAPPINESS – We aim to make people happy.

INTEGRITY – We do things right all the time.

TEAMWORK – We work as team players.

LEADERSHIP – We’re leaders in our market.

Airedale Spa Hotels... our people

We have a diverse people base with roles ranging from managers, supervisors, administrators and staff roles.  We have staff in the kitchen, restaurant, housekeeping, reception, maintenance, gardening, sports and office areas.  Our structure is as follows:

Hotels:

• Management – senior managers, middle managers, supervisors, chefs, professional roles, for example operations, HR, finance, sales and marketing and commercial development
• Administrative staff – administrators and reception staff
• Staff – chefs, catering assistants, room attendants, waiting staff, maintenance staff, cleaning staff, gardeners

Head office:

• Executive team
• Management/professional – HR, finance, sales and marketing, commercial development, operations
• Administrative staff – payroll, administrators

Attracting good staff for all job levels is difficult and is getting harder now that the economy is improving.  Turnover of staff in the hotel sector is typically very high, with little employee commitment or loyalty to the organisation.  Employees are typically dissatisfied with pay and working hours. 

Our people attributes:

We value and develop the following qualities in our people:

• Be a brand ambassador – love the business and all we do
• Deliver world class service to all customers and stakeholders
• Take care in all we do
• Be innovative
• Be ethical
• Work collaboratively
• Be results driven
• Live the values

Airedale Spa Hotels reward

We have different pay and benefits packages depending on your contract:

Management

Salaried pay – you will be offered a spot salary on joining the company based on a competitive market rate for the job.  We will offer a cost-of-living rise across the company every year, depending on if we can afford it.

Holiday – 32 days annual leave

Pension – we will contribute to a company pension scheme

Bonus – managers get a share in the company’s profit each year in the form of a bonus

Free use of spa facilities

Administrative staff

Salaried pay – you will be offered a spot salary on joining the company based on a competitive market rate for the job.  We will offer a cost-of-living rise across the company every year, depending on if we can afford it.

Holiday – 30 days annual leave

Pension – we will contribute to a company pension scheme

Flexitime scheme – office based administrative staff can enjoy flexible start and finish times

Staff

Hourly pay rate – you will be paid by the hour on the minimum wage or above, depending on your age and the rate for the job

Holiday –28 days annual leave

Pension – we will contribute to a company pension scheme

Employee of the month – each month, managers select an employee to receive £100 award for exceptional contribution

All employees

In addition to the above, all employees receive:

• Free meals on shift in the staff canteen
• Discounts with local shops and attractions
• Membership of the staff social club
• 10% Discount to stay at hotels within the group.

Learning and development

Learning and development is hugely important to us.  Investing in the development of our people has undoubtedly helped to create our reputation for a superior offering and exceptional customer experience which is unrivalled by our competitors.

We want all our people to be passionate about learning and development.  Whatever section of our business you are part of, there will always be exciting opportunities to learn new skills and develop a rewarding career.  We have even partnered with Sheffield Hallam University to offer our own bespoke Airedale Spa Diploma.

Induction     

Everyone who joins our company receives a fantastic induction to their team.  Shortly after joining you will also attend a 3-day company induction course to learn all about the company, our products, our brand, our values, where your role fits in and complete any required training, e.g. food hygiene, fire awareness, diversity and inclusion etc.  You will also meet our directors. 

Development 

We are committed to helping our people reach their maximum potential.  We offer a range of personal development courses run by our development team and also offer the opportunity to engage in development outside the company where this would be beneficial.  We advertise all our vacancies internally.  As the company is growing so fast the opportunities are always changing.

Appraisal/performance review

Five years ago, we worked with an external consultancy to develop an annual performance review process for management which linked to identifying development needs.  This is still in operation but only about 40% of managers receive an appraisal each year.  There is no scheme for administrative or hourly paid staff. 

Airedale Spa Hotels case – your individual task brief

The current performance, pay and benefits offering is reasonably competitive but due to continued expansion and plans for growth in the UK and globally and the current difficulties in recruiting and retaining employees, the offering needs revision.  Very little attention has been paid to the performance and reward offering since the company’s rapid expansion 10 years ago.  This led the Board to ask their Head of People to task their team members to review all performance and reward policies and practices and to develop a Performance and Rewards Strategy.  You are a new member of the team and will be working on this brief to support the Head of People.  

At a high level the new strategy should aim to:

• Provide a fair and transparent total rewards offering, balancing equality of opportunity and fair rewards for contribution.
• Encourage and compensate employees for their contribution to the business and core values.
• Ensure cost effectiveness – contain costs where possible (e.g. benefits) and ensure that all new pay initiatives are self-funding from the additional profits generated.
• Make Airedale Spa Hotels an employer of choice for key talent areas and thus ensure that reward management helps deliver the key business aims and values. 
• Allow for a global offering that maintains the company ethos and values but also for local adaptations in line with the need to be competitive, respect cultural values and legal obligations.  Plus, it should help remove barriers or disincentives for global movement of key talent. 

Brief:  In your role as a new HRM specialist within the organisation, with specific duties toward developing and running the Performance and Reward (PRM) Strategy, prepare answers to the questions above. Your review and recommendations will go to the Head of People to review before they get put to the Board.