Motivation is an active area of research. The use of performance pay is one of the ways used to motivate employees based on monetary motivation schemes. The purpose of this research is to investigate the applicability of performance pay at the Wynn, housekeeping department. Maslow proposed the five hierarchies of needs as the basis of motivation. Other theories include the Expectancy Theory, Theory X and Theory Y, and the Motivation-Hygiene theory. Money is not the only motivator. There are other elements such as working conditions, opportunities for growth and challenging work, which form part of the motivation matrix. Performance related pay applies a lot for senior managers because they are responsible for the overall progress of the institution. Lower cadre employees do not handle similar pressures, and have well defined jobs. The research into performance related pay leans towards senior management, while research on motivation skews towards individual motivation.
The implementation of performance related pay required discretions and careful placement in an organization. Its place in an organization is not to take over the complete motivational needs of the organization but to form part of the overall efforts. The major methods used for data collection in this project include use of an online questionnaire for primary data and literature review for secondary data. Key findings from the Wynn include the lack of understanding of what performance pay is, by the housekeeping staff, the desire of the staff to participate in some kind of performance pay program and the need for a fair, balanced well thought out system. The key recommendations to the Wynn are for them to leverage on the interest in performance pay by the housekeeping staff to determine viability for implementation, need for careful communication and sensitization. In addition, there is need to quantify expected benefits and the use of an integrated motivation program.
Background of the Study
The study of human motivation is an active area of research. Motivation is a key influence on the performance of organizations. This underlies the great degree of interest in the field. In the last few decades, motivational books have become a serious genre selling millions of books annually. The desire to improve employee performance and the desire to improve personal effectiveness drives employers and individuals to seek answers in the area of motivation. The answers are not exact. There seems to be variations on what motivates different people to get things done depending on their individual or collective circumstances. There is an earnest search by scholars and practitioners alike to find the best way to understand and implement motivational techniques to improve the performance of their work teams. There is a vast swathe of is academic and inspirational literature that attempt to explain human motivation. They offer techniques that improve the individual or organizational state of motivation.
The problem of inspirational techniques is the lack of scientific rigor in their preparation. This does not invalidate them. It however limits their replication because the factors that influence their effectiveness are often not known or quantified. They however provide interesting insights into motivation and qualify as appropriate literature in the study of human motivation. On the other hand, scientific literature on motivation tends to be highly structured in keeping with scientific writing conventions. This reduces their appeal among non-scientific communities. While the information they present is more reliable, they lack the appeal that motivational books have leading to poor implementation of the techniques found to be effective. One of the reasons is the unrestricted nature of writing that inspirational writers use allowing them to have maximum communication impact.
One of the ways that employers use to motivate their employees is the use of various money-based reward systems. There is a general acceptance of money as a powerful motivator hence the use of pay related techniques to motivate employees. The use of techniques such as payment of commissions is the industry standard in sales and marketing jobs. The use of bonuses applies to other positions such as management based on overall annual performance of an organization. This is one example of a performance related pay system. The premise for these methods is that the performance of an organization shows up in how much money it makes, hence those who work hardest to bring in the money deserve special recognition, usually be getting a piece of the pie.
Problem Statement
This project sought to uncover the issues relating to performance related pay in relation to the Wynn, Las Vegas. One study found that an increasing number of graduates with hospitality related qualifications sought work elsewhere since they did not find any motivating factors, among other de-motivating aspects of the hospitality industry (Kusluvan 2003). The Wynn is one of the landmark establishments at the strip in the Las Vegas Boulevard. A large army of employees works in the hotel in various departments. For the purposes of this project, the department chosen was the housekeeping department. It is one of the large departments of the Wynn involved in the hospitality elements of the operation. The operations of this department varies considerably from other departments being that it is involved in the delivery of services and does not directly collect revenue. There is no way to measure directly how the services offered by individual staff members affect the revenue in a conclusive manner.
However, there grounds exist to believe that there is a place for performance related pay at the Wynn, for the housekeeping staff. The problem for this project is on how to motivate housekeeping staff to achieve high performance at the Wynn, Las Vegas. The particular problem is, “Is it possible to use performance related pay to motivate housekeeping staff at the Wynn, Las Vegas?”
Reason for Interest in the Project
A number of reasons underline the interest in this project. It tests the universality of the application of performance related pay to departments that do not have metrics directly related to revenue collection. This aspect stems from the fact that some scholars think that money is a universal motivator hence can apply in any situation (Bruce & Pepitone 1998). It will provide a reasonable basis to test this assertion. The second reason is that the project will provide an opportunity for the exploration of all methods available to motivate the staff. In the process, it will be an opportunity to study in-depth the interesting area of employee motivation and to contribute to it. This expansion of knowledge is an important part of research especially in a high interest area such as motivation.
The third reason is that the study will be of high value to many other sectors and departments whose nature of work is similar to that of the housekeeping staff at the Wynn. This means that its conclusions will apply to all departments whose work is not measurable quantitatively, but qualitatively. It will fix the discussion on the applicability of performance relates pay across the board.
Aim
In this study, the author will determine the impact of performance related pay on motivation of housekeeping staff in Wynn Las Vegas.
Objectives
- To review secondary literature about motivation and performance-based pay
- To assess impact of performance-based pay on motivation staff
- To recommend to owners and managers of the Wynn Las Vegas the best approach to use in the implementation of performance pay.
- To identify areas for further research in the area of performance related pay
The review of secondary literature will provide an opportunity for the consideration of the thinking that other researchers and authors have propagated in the area of motivation. This includes the theories and the philosophical contributions. It will enable the exploration of the issues surrounding performance related pay from different viewpoints. It will form a stable academic foundation for the research project. The assessment of the impact of the performance pay on the motivation of staff will aim at determining whether the approach works. It will look at both the positive and negative effects of the system and draw conclusions on its overall effectiveness. Based on the findings from the research, the third set of issues will entail developing recommendations to the managers of the Wynn, Las Vegas, on the matters they need to address in relation to performance related pay at the Wynn in Las Vegas. The final objective will deal with the gaps that the project will expose to provide other researchers with pointers of where to pick up from to carry out further research in this area.
The Definition of Motivation
Many authors define motivation in different ways. It includes drive, which is the reason why we undertake certain things (Bruce & Pepitone 1998). Motivators are things that drive people to do things that are in their interest. O’Neil and Drillings (1994) contend that while the prevalent view of motivation tends to describe it as an emotional state, it actually has cognitive aspects to it. There is a thinking process involved and it presents decision making opportuinites. It is not just an abstract situation but a very logical one. Motivation has got to do with the reasons that are underlying behavior (Wong 2000). In Wong’s (2000) view, there are aversive motivation systems for self defence such as fear, fraustration and aggresion that come into play when there is a perception of danger. There are strong influences on the study of motivation from the field of Psychology and other behavioral sciences. While not everyone has the need to understand the concepts and the detailed explanations relating to the science of motivation, almost all managers in all the fields find themselves asking questions about the best ways to motivate their teams. The definition of motivation eventually depends on the theory of motivation that a particular author enspouses (Wong 2000).
Theories of Motivation
The study of motivation has spread its roots in all aspect of social science. Some authors have moved all the way to determine that motivation stems from the ability of humans to regulate their behavior as a consequence of evolutionary mechanisms (Heckhausen 2000). This theory proposes that man can adapt positively or negatively to environmental conditions. In modern times, one of the most commonly quoted theories of motivation is the Maslow’s hierachy of needs (Chopra 2002). In this theory, there is a hierachy of needs, where once one of them is satisfied, it is no longer a source of motivation. The theory identifies Psychological needs as the most basic form of human needs. This means that the most basic form of motivation for a person is the need to survive, by eating, and by getting some form of shelter. The second class of needs in the hierachy is safety and security, which drives someone to seek safety from harm. This includes safety from extreme weather elements, personal harm and freedom from poverty. It also includes the desire to be in good health. The third need in the hierachy is the need to belong, which is the desire to be a member of the society. Meeting this need requires that someone engages in some kind of activity that gives them a sense of belonging. While the workplace may be a place to get this need met, it is not the only place.
The fourth need in the hieracy is esteem needs, which is a desire to be recognised for accomplishments. This achievement of this need comes about when someone receives respects for their participation in something which other people value. The highest need that people who have fulfilled the first four needs is the need for self actualization. In Maslow’s theory, this need refers to becoming an idealized form of self. Someone attempting to fulfil this need tries to become their best and strive to attain their most complete expression of self in the society. It explains why some people engage in philanthropy after amassing great wealth. Bruce and Pepitone (1998) agree with Maslow’s hierarchy of needs where they state that human motivation comes from biological necessity to solve issues such as hunger, need for reproduction, and the need to belong and to feel acknowledged. Motivation has intrinsic and extrinsic elements (Bruce & Pepitone 1998). Chopra (2002) agrees with this assertion, stating thet motivation comes from internal and external forces. Intrinsic elements of motivation emanate from within us while extrinsic ones come from outside (Kuvaas & Dysvik 2009). We do not need anyone to tell us it is time to eat because the body has a natural system that tells us, thereby motivating us to look for food.
However, when it comes to performance at work, many people try to do as little as possible and to earn as much as possible at the same time. On the other hand, employers want people to do as much as possible and to pay them as little as possible for job. These two forces demonstrate the need for extrinsic motivation in the work place. Performance related pay tries to make it more profitable for employees to work as hard as possible to improve their pay. Bruce and Pepitone (1998) identify three aspects of internal motivation which include collaboration, content, and choice. By collaboration they mean that the employees feel motivated when they cooperate with others in their work. Being content works by giving the employees a sense of fulfilment because they know how their work adds up to the overall organizational effort. Choice refers to the ability of the employees to make decisions related to their work.
Another well known theory of motivation is the concept of threory X and theory Y. Under theory X, a manager assumes that workers are wasteful, lazy, and only reposnd to money as a motivator (McGregor & Cutcher-Gershenfeld 2006). In theory Y, a manager assumes that people love to work, are ready to work, and they value recognition and self fulfillment as much as money (McGregor & Cutcher-Gershenfeld 2006). This concept proposes a continuum on which the management philosophy of all managers lay. On one end we have theory X managers, ahile mon the other end we have theory Y managers. The rest lie at various points in between. This theory assaumes that people act in certain fixed ways. However, the sources of behaviour for an employee are not limited to the workplace but come from all over the environment (Chopra 2002).
Another theory of motivation is the Expactancy theory. Expectancy theory of motivation developed by Vroom postulates that an employee selects to behave in a certain way because he has been motivated to choose certain behavoirs over others (Green 1992). This theory proposes that it is possible to influence behaviour by creating an expectation of the requirement of that specific behaviour. This theory focusses on the three parts of the motivation equation. They include inputs, performance and outcomes (Lauby 2005).
Motives fall into two classes, conscious and unconscious (McClelland 1897). A conscious motive comes from the intent to do something. This normally requires that someone gets well thought out reasons to get something done. This leads to the execution of the intended action. Unconscious motives operate in the subconscious and therefore influence behaviour without the express permission of the individual involved (McClelland 1897). The sources can be suppresed fear, or an overwhelming opinion of something that stops the individual from making coherent choices.
Herzberg developed the Motivation-Hygiene Theory which focusses on two motivation factors. These factors are end-result oriented. The first set assumes that certain factors can bring about high motivation levels and the accompanying job satisfaction while the second set of factors assume that certain factors bring about low motivation and reduce the degree of job satisfaction. In his theory, he refers to hygiene needs, which contribute to the employees comfort and create a pleasant working environment. They include a good pay, job security, productive working relationships with colleagues and supportive supervision (Lauby 2005). According to Herzberg, failure of the environment to meet these needs result in reduced motivation. Yet, meeting them does not constitute motivation, it only averts de- motivation. The motivation needs in this theory refer to work elements such as exciting work, freedom, responsibility, growth opportunities and sense of achievement in the work (Lauby 2005). In addition to these two views, there is the view that it is possible to have a work place where employees have an acute lack of motivation (Lashley & Morrison 2001). This view sits somewhere in between the two major views. The most powerful form of negative motivation is the threat of loosing one’s job (Barrows & Powers 2008).
Performance Related Pay
Armstrong (2002) distinguishes between performance related pay and commission based pay. He says that performance related pay generally apply to senior level employees whose work determines overall organizational performance (Armstrong 2002). This includes directors and senior managers. Commission pay applies to employees who bring in sales to motivate them to bring in revenue for the company. The senior managers provide them with incentives to do this. However, the managers themselves see to it that there is a consistet business strategy for the organization and monitors its execution. This makes them ideal candidates for performance related pay.
In an institution, employees have a shared perception towards motivation (Chuang & Liao 2010). Motivation and performance are independent (Green 1992). In fact, many factors beyond motivation influence employee performance (Sell & Cleal 2011). Just because an employee is motivated does not guarantee that he will perform well. There has to be action applied to the motivation for the attainment of the desired results. This is because results depend on performance, effort and motivation, and not motivation alone (Green 1992). In addition, it is not what results from the effort that constitutes motivation for the employee, but the employees’ perception of it.
Another issue in relation to implementing performance related pay is the nature of the reward system. If the monetary reward system only rewards relative top performers on a quota basis, it makes the rest of the employees perceive the system as unfair (Griffin & Moorhead 2009). Rewarding performance at the expense of effort leads to an ill feeling because of lack of recognition. Nevertheless, the best way of designing the performance pay system is to develop a system that rewards an employee based on the attainment of targets. This does not excuse the company from ensuring that the reward system is still fair and consistent (Goel 2008). In addition, institutional factors such as profitability must come into consideration to ensure the system fits well within the means of the organization. Kandula (2006) advices that the system need to be designed in such a way as to avoid all ambiguity and to provide an objective basis for the determination of the required pay.
There is evidence that performance related goals motivate some employees (O’Neil & Drillings 1994). This thinking stems from the relative improvement in the performance of people who have identified challenging but achievable goals to attain. In addition, the process of motivation differs from whether it is an individual targeted for motivation or whether it is a team. At the individual level, there is clear sense of direction as to what the goal requirements are, but when it is a group, some complexities arise. On one hand, there are group goals that the team should attain while on the other hand, there are individual goals from each of the members of the team. There is a difference between what motivates different people (Tanke 2000). Motivation is not a “one size fit all” response to the problem of enhancing productivity. It remains a work in progress since the motives of different in individuals evolve. What motivates one person today may not have the same effect tomorrow. It remains the human resource manager’s duty to keep staff motivated in the performance of their duties.
Context of Research
Much research on motivation concentrates on the motivation of individuals as opposed to groups (O’Neil & Drillings 1994). The natural result is that there is much more information on individual motivation compared to group motivation. Consequently, practitioners attempt to use magnified forms of the findings to implement group motivation. The result is loss of effectiveness of the programs. There is evidence to suggest that the traditional model of base pay and bonus schemes is collapsing in favor of dynamic models that recognize the expanded understanding of motivational needs (Brown & Armstrong 1999). There was a set of studied dubbed, “the Hawthorne Experiments” which tried to find out the effect of lighting and ventilation on the productivity of workers in the hospitality industry. This study arrived at the conclusion that the most important factors affecting the productivity of employees was involvement of the management in the welfare of the workers (Tanke 2000). Workers valued the concern accorded by management more than any other one thing.
Implementing Performance Related Pay
In effecting performance-related pay, Brown and Armstrong (1999) advocate for a system that, recognises both efforts and results, and rewards behaviour supporting the future of the business. It should also remunerate for the combination of teamwork, individual and organizational effort implemented on a broad based rewards system (Brown & Armstrong 1999). This kind of approach calls for a comprehensive plan and not a simplistic quick fix model that ends up producing more problems than it solves. They recognize that while money is a very important part of the reward system, other measures such as rewards focussed on recognition, career growth opportunities and more repsonsibilities need to be incorporated in the rewards system (Brown & Armstrong 1999).
When a company adopts a policy that reflects the need to pay workers according to their performance, it sends the message that it values performance and that workers who perform better deserve better pay (Goel 2008). This pay structure is a well-known motivator that increases the effectiveness levels of employees (Goel 2008). The concept of paying employees according to their performance is potentially fairer since it makes sense to reward employees according to their contribution. Compared to rewarding employees based on experience, performance pay does not just consider the duration someone has been handling a task, but it considers whether there is growth and an increase in production because of the duration spent on the task.
There are a number of advantages identified by different authors of using performance related pay. This includes the fact that it provides motivation to employees (Goel 2008). It provides the environment that employees need to give their best performance to the organization (Kandula 2006). Other advantages include giving rewards to actual performers and recognition for outstanding work. A major disadvantage of the system is that it may promote individual effort at the expense of teamwork.
There is a varying degree of uptake of performance pay model in organizations. The models also vary from organization to organization and reflect the peculiarities of such companies. This system began to infiltrate organizations in the early nineties (Armstrong 2002). As research into the area went on, many performance pay systems and adaptations came into force. The systems used in the nineties grew from various adaptations of inaugural systems used in the eighties (Armstrong 2002). In the last ten years, governments have introduced various types of performance related pay for civil servants (Organization for Economic Co-operation and Development 2005). The successes of the programs in the private sector motivated governments to see how best to gain from the benefits of the programs in the public sector.
Hospitality Industry
Management skills are important in the Hospitality industry. Tanke (2000) identifies humans resource skills as probarbly the the most important skillset in human resource management in the hospitality industry. This is because a manager is responsible for the state of motivation of all the employees. Without good management skills, an establishment such as the Wynn cannot stand. In fact, with its reputation as a first class hotel and Casino, it cannot survive in the industry. The industry has faced a lot of attrition because of dashed hopes by fresh graduates who find the working conditions as unbearable (Kusluvan 2003). They choose to move to other industries in order to meet their career expectations. Many of them move despite having showed interest in the industry and a willingness to work there in their prequalification level. Some of them move out of the industry because of bad experiences with their immediate supervisors (Kusluvan 2003).
The literature review above touched on the three core elements of the research project. It identified the issues surrounding motivation of employees. The issues range from money to working conditions, difficult supervisors, and the pursuit of career growth opportunities. It also identified the various issues surrounding the implementation of performance pay systems. These issues include the instituting of balanced systems, deemed as fair by a cross section of employees, and integrated into the overall rewards and motivation strategy of the organization. In addition, it reconciled the research project to the latest trends in research by comparing various performance pay models. It identified the application of performance pay in both the government and in the private sector. The information contained above provides the research project with a sound basis for progress.
Methods Used for Investigation
This chapter focuses on various aspects of the process of development of this research project including methods of data collection, analysis and presentation. Every research project applies a certain research method to achieve its objectives depending on its goals. The methods used to conduct the research for this project compared closely with the methods proposed in the project proposal (Anderson 2004). In research, “design deals primarily with aims, uses, purposes, intentions, and plans within the practical constraints of time, location, money, and availability of staff” (Hakim 2000).
Research Paradigm
The research used positivism as the philosophical paradigm. This means that the research relied on unbiased observation as a source of scientific information. This paradign assumes that the observer, in this case the researcher is separate and removed from the issues under observation. The research design following from the philosophy set to define general trends in the sample observed from the entire population. The research was therefore predisposed to report on major common elements of the population. It also would lead to generalization of the findings across the entire population.
Questionaire Design
There were two key methods used to gather the information used in the report. The first one was the use of a questionaire administered online to the staff at the Wynn. It is attached at the end of this document. The questionaire sought to capture various elements of the attutudes of staff at the Wynn towards performance related pay. The second source of information used for the research was literature on various aspects motivation. The focus of the literature review was finding information on the application of motivation techniques and also the determination of the current state of research in the use of performance pay. The quaetionaire had four Parts. The first part sought to capture the biodata of the respondents. The second part dealt with the demography and gender of the respondent. This was to ascertain the prevalence of the views in varoius categories to ensure that if any differences came about, then they would be captured in their demographic space. The third part dealt with academic cre3dentials and work experince. The motivation for this section came from the understanding that different sections of the population respond differently to motivators based on age and academic credentials. The fourth part delved into the specific issues relating to perfomance pay, starting from the understanding of the concept to the possible effects it would have on the workers. The questionaire also employed a mix of open ended and closed questions to capture different aspects of the issues studied according to the degree of detail required.
The literature collected provided information regarding various theories of motivation spread across the last four decades. This provides a historical perspective since the area of motivatoin started receiving specific attention in that period. Secondly, the literature made available a number of theories dealing with the application of motivation in the business world and performance related pay in the context of humans resource develpment in the hospitality industry. The Wynn fits well within this parameter. Finally, the literature provided information on the state of research on the field. Various researchers have done research on various elements of performance related pay and its effect on motivation (Marczyk, DeMatteo & Festinger 2010). This gave the study a sound academic backing and a strong basis for drawing comparisons and conclusions.
The use of the questionaire made it possible to capture the issues unique to the Wynn. This is because there was no accessible literature with the required degree of relevence to the subject matter about the Wynn, Las Vegas. The targeted staff responded to the questionaire online. The availability of staff influenced the choice of this method because the Wynn operates through out and therefore it is not possible at any one time to find all of them in one place. An online questionaire reduced the costs of data collection, assured confidentiality, and was available thoughout for the staff for a fixed period (Werner & DeSimone 2008). After collection the data went through analysis, culminating the observations and conslusions discussed in chapter three and four, respectively.
Sampling Methods
The most applicable sampling method for this exercise was random sampling. Considering that the targeted population consisted of staff in the housekeeping section, there was no much risk of having biased data. If the survey needed to cover the entire staff of the Wynn, then systematic sampling coupled with stratified sampling would be ideal to ensure cross-departmental representation. However, this survey targeted the housekeeping staff, hence, random sampling proved sufficient to collect the required data.
Planning of the Dissertation
This dissertation underwent several planning stages involving various stakeholders. The stages included a planning, preliminary design and development of tools, interviews, literature review, data analysis, documentation of findings, and finally the preparation of the final report. The Research problem influenced the preliminary design of the project. The area of motivation stood out as the most interesting area out of the options that were available. The Wynn, Las Vegas also stood out as the best place about which to conduct the research. Other issues tackled under the preliminary project design included getting permission from various authorities. In addition, it involved determining the amount of time each of the stages would require. From there, the planning process went to the proposal development stage. This involved the filling out of a research request form and the identification of the objectives that would guide the process.
Other issues that fell within the proposal development stage included identification of a research philosophy, setting of the sample size and consideration of the ethical issues that the research would elicit. The third stage in the development of the dissertation was the development of the research tools. In this case, the questionnaire formed the basis of primary data collection. The development process of the questionnaire took centre stage during this phase, which involved addressing all concerns from an ethical perspective and confidentiality concerns. In addition, the stage provided the required space to address the issues relating the mechanics of administration of the questionnaire. The project proposal got approval from institutional authorities enabling the research project to proceed. In the third stage, there was a literature review exercise conducted to extract relevant information relating to the state of research in the field of study. Through the literature review, there was the acquisition of information relating to theoretical and practical issues concerning motivation and the effect of performance related pay. There was concurrent administration of the questionnaires online. This ensured that all the employees targeted for the exercise had an opportunity to fill in the questionnaire at a convenient time because the Wynn, Las Vegas operates for twenty-four hours. This means that there is no single time when all the employees are on shift. The data collected from primary and secondary sources underwent analysis. This report includes the findings from this analysis. These were the major stages of development for this dissertation.
Secondary Data Used
Secondary data for analysis in this project came from various publications. These included reports, journal articles, and research publications. Most of it related to the work other researchers in the field of motivation undertook. The other areas where the literature review covered includes the theories of motivation and the application of performance pay in various institutions. The nature of material used varied. Journals dealing with specific aspects of motivation provide specific information on specific research elements investigated by researchers. Some reports from intergovernmental organizations proved useful in providing information on the application of performance related pay (Swanson & Holton 1997). From these sources, several findings came to the fore.
Primary Data
The online questionnaire provided the means for the collection of primary data for this project. The survey covered 15 employees working across various shifts at the Wynn in the housekeeping department. This sample is representative of the entire cadre of staff targeted by the survey in the housekeeping section. The choice of respondents was by random sampling, based on the individual’s willingness to participate. The questionnaire had a mixture of open ended and closed ended questions. This design made it to provide as much detail as possible while eliminating the risk of high variance in the responses. The administration of the questionnaires took place online because of the varying working hours. In addition, it eased access to the questionnaire. After filing in the soft copy, they sent it to a designated email address. This measure resulted in immense cost reduction cutting on transport and accommodation expenses occasioned by physical administration of questionnaires. Moreover, it saved research time because it was easy to transfer the information from a soft copy to the analysis software. Finally, it did not generate any paper waste, hence contributing to environmental conservation.
Presentation of Results
There were several interesting observations made because of the data collection exercise. The observations include those made from the literature review and those made from the analysis of the data collected from the questionnaire. In this section, the two sources of data present the categories used for presenting the findings. In the first case, the information covers the information retrieved from various academic sources such as journals, reports, and books on the issues of motivation and performance related pay. In the second section, the attitudes and thoughts of the housekeeping staff at the Wynn form the basis for the report as covered by the questionnaire.
Presentation of Data
There were three major observation made from the literature reviewed
Performance related pay is increasingly becoming popular in both the public and private sector
The search for literature to uncover issues relating to performance related pay revealed that the use of performance related pay is growing in popularity not just in the private sector but also in the public sector, Governments in Europe started implementing performance related pay programs for civil servants based on performance contracts to improve service delivery. This trend started as an experimental method in the eighties but has become a fully-fledged practice in many organizations.
Money is a powerful motivator, but is inadequate on its own
One of the interesting findings from the literature review is the role of money as a motivator. It was interesting to discover that money on its own may not provide much motivation. In fact, there is a limit beyond which, financial incentives no longer provide motivation. There is a proportionate decrease in the motivational value of money. In addition to financial incentives such as performance related pay, there are other factors such as the working environment, growth opportunity and the degree of interest in the work that affect motivation levels of employees.
The goal of motivation is behavior modification
From all the motivation theories, the major issue that they all seek to describe is behavior modification. Each of them defines ways to modify the behavior of an employee for higher performance. The whole point is to present them with working conditions where their productivity increases for a personal reward, and in the process, the company attains a better bottom line. This is the common thread in all the motivation theories. Each of them describes a certain part of the process but eventually, they all deal with various dimensions of behavior medication.
Findings
The findings from the data collected from the housekeeping staff at the Wynn revealed the folowing
The use of performance related pay is a new concept to the housekeeping staff at the Wynn.
The use of performance related pay is new to the housekeeping staff at the Wynn. In the institution, it works for senior administrators who bear a direct responsibility for the profitability of the organization. At the housekeeping level, their pay is fixed and their duties well structured. Motivation to perform comes through close supervision. There are many deterrent measures against undesirable habits. This ensures that the staff remains focused on their roles. However, they still say they can do much more that what they are doing now. There are employees whose performance may improve if they get sufficient motivation.
There is a great degree of interest in the performance related pay.
The staff displayed great interest in participating in a performance related pay program if introduced. Sixty percent of those interviewed said it would be desirable to participate in such a program if introduced. However, it was not very clear whether the basis of this interest was on a true appreciation of the program or whether they took it for another way of getting better pay. Whichever the case, it achieved the purpose of serving as a motivator.
There is need for caution in implementing performance related pay at the Wynn.
Generally, there was a sense of cautiousness with which the staff responded to the questions in the survey in the questions, which required them to give their views on whether they would like the Wynn to introduce performance related pay for staff in the Housekeeping section at the Wynn. The need for cautious implementation featured in other literature. The prevailing view was for a well-structured process that would make it possible for people to participate in the program without fear. The need for balance with other performance related factors also requires close inclusion during the implementation process.
Analysis and Interpretation of Data
The use of performance related pay is not yet widespread in the lower levels of the organization. Its use is restricted to the higher echelons of management. This is because senior management is responsible for the overall health of the organization as opposed to the lower cadre employees, whose main job is to receive and execute instructions from their supervisors and managers. They are only responsible for the performance of their specific jobs. Since their work is well defined, employers have not felt the need to introduce performance related pay. At senior management level, the major responsibilities there is not just the execution of specific tasks, but the development and sustenance of a strategic direction for the organization, this makes them liable for the performance of the organization. In this respect, there is sufficient explanation as to why there is poor understanding of how performance pay works among the housekeeping staff at the Wynn.
On the issue of interest in performance pay, it is not possible to distinguish this interest from the desire for higher pay. Considering that many employees in the housekeeping section felt they did not adequately understand performance pay, it was contradictory for them to show interest in its implementation. Their interest is exploratory as opposed to committal. They want to know because they do not know but that does not necessarily say that they want to be involved. This is proof that before the implementation of performance at the Wynn in Las Vegas, it is necessary to carry out a thorough familiarization exercise to ensure all employees know what it is before they commit to it, lest its implementation produces negative results. However, sixty percent of them said they would like to participate in a program of that nature. It appears that it presented to them an opportunity to increase their pay by working harder. It means therefore that the staff can be motivated using performance pay.
Contribution to Existing Knowledge
This research shows that performance pay is an option of motivating the lower cadre staff. The prevailing view in the literature reviewed is that this method works only for senior level management. This research contributes to existing research by demonstrating that there is interest in lower cadre staff to participate in performance related pay programs.
Implications for Future Research
This implication of this finding is that there is a need to investigate the conditions necessary for implementing performance pay programs in lower cadre staff such as the housekeeping staff at the Wynn. At the lower levels, there is a greater degree of clarity of roles and larger number of people. This means that the models available may not fit for the lower level staff. There research required in this area is to determine the critical success factors for the implementation of the system. The research will need to determine the impact of implementing performance related pay systems in organization with specific focus on the effect on financial stability of the organization, relational stability, and system administration needs. This will enable analysts to conduct an informed cost benefit analysis for the implementation of such programs.
Conclusions
The aim of this project was to determine the impact of performance related pay on the motivation of employees at the Wynn, Las Vegas. The research has revealed that there is sufficient interest in the concept in the lower cadre staff in the housekeeping section to justify a closer consideration for implementing the system. This conclusion came about because of reviewing literature that discussed various aspects of motivation and performance related pay.
The impact on the motivation of the housekeeping staff identified was the raising of awareness and the measurement of the level of interest in the concept. Sixty percent of the staff showed interest in the concept. The staff sees this is an avenue to increase their productivity and to earn more money in the process. This shows that it is a motivating factor and will yield results.
The key area requiring further research in this field are the issues that an organization needs to consider when implementing performance pay at the lower cadre level because the models that exist at the moment, target senior staff. These studies should aim at identifying the critical success factors in the implementation process of performance pay on a large scale at the lower levels of the organization.
Recommendations
Based on this research, the recommendations for the Wynn, Las Vegas are as follows
Institute measures to leverage on the interest generated by the exercise on performance pay.
The Wynn stands to gain by introducing measures to take advantage of the interest this exercise generated in the concept of performance related pay among the lower cadre staff. The surveys showed that there is a lot more the employees can do for the Wynn. They confessed that they are not working as hard as they can. By introducing measures to tackle the motivational requirements, the Wynn will reap increase performance that will justify performance pay related expenses for the lower cadre staff in the housekeeping section.
The Wynn needs to quantify the impact of performance related pay on the organization before its implementation.
If the Wynn decides to implement performance related pay, it will do well to determine the organizational impact of performance related pay. This is necessary because there is insufficient information and comparisons relating to performance related pay at the lower cadres. The Wynn will need to establish whether it can afford to run a performance related pay program for its lower level employees before it embarks on it. In addition, it needs to quantify the expected benefits that it will derive from the program. This will insure against an expensive program that may not give commensurate results. In addition, this survey focused on the housekeeping staff. It is crucial to find out what employees in other sections of the Wynn think about performance related pay, lest it becomes a source of friction between the administration and various levels of staff in different sections.
There will be need to conduct a thorough sensitization campaign before implementing a performance related pay program.
The survey revealed that the employees do not clearly understand the performance pay concept. In their responses, many of them did not feel confident that they understood performance pay appreciably. This requires that the Wynn invest time and money to conduct a performance pay program in the institution. This will increase the chances of success and the will guarantee the resultant benefits.
There is a need for an integrated motivation program
A performance pay program does not negate the use of other motivational methods for employees. In fact, the success of a motivational program relies on the degree on integration of the methods under use. Not all employees will find motivation from the performance pay program. An integrated program guarantees that they will all fall in some category of the motivational programs. In addition, there is a diminishing return on performance related pay, especially at the lower levels. To sustain the employees’ levels of motivation, the Wynn will spend more and more over time. An integrated approach compensates for the diminishing returns.
In conclusion, the investigation into the application of performance pay at the Wynn has brought to light the elements that are required for the successful implementation of a performance related pay program. This will inform the management of the best way to proceed in the implementation of this program
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Appendices
Research Questionnaire
