Motivation is an important area of study. The use of performance pay, which is based on monetary motivation schemes, is one of the ways used to motivate employees. 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 Y, and the Motivation-Hygiene theory. However, 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 more to senior managers since they are in charge of overall growth of the organization. Lower cadre employees do not handle similar pressures. Their roles are clearly defined in the organization. Performance theory is more focused on senior management while studies on motivation skew towards individual motivation. Senior managers are motivated through provision of modern technology in the firm. Furthermore, they get motivated when stakeholders offer them necessary support. Junior members of staff are inspired through involving them in decision-making and appreciating their efforts. Employees must be consulted before introducing any policy in the organization. In this regard, identifying non-formal leaders within group members is important because workers listen to such leaders.
The implementation of performance related models calls for discretion and careful placement in the organization. Its place in the organization is not to take over complete motivational needs of the organization but to form part of overall efforts. The major methods used for data collection in this project include utilization of an online questionnaire to collect primary data and literature review for secondary data. Key findings of the study include lack of understanding of performance pay by the housekeeping staff, the desire of the staff to participate in some kind of performance pay program and the need for a fair and well-balanced thought out system. The key recommendation to Wynn management is to encourage workers to adopt performance pay in order to determine viability of implementation, need for careful communication and sensitization. In addition, there is need to quantify expected benefits and use an integrated motivation program.
Background to the Study
The study of human motivation is an active area of research. Motivation is a key influence to 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 genus. The desire to improve employee performance and the desire to improve personal effectiveness drive 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 to find the best way to understand and implement motivational techniques in order to improve their performance. There is a vast swathe of academic and inspirational literature that attempt to explain human motivation. They offer techniques that improve individual or organizational state of motivation.
The problem of inspirational techniques is associated with lack of scientific rigor in 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 in motivation. The techniques serve as important literature in the study of human motivation. On the other hand, scientific literature on motivation tends to be systematically structured. 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 techniques. One of the reasons is unrestricted nature of writing that inspirational writers use, allowing them to have maximum communication effect.
One of the ways that employers motivate their employees is the use of various money-based reward systems. Money is proved a key motivator of employees hence its utilization is justified in many organizations including Wynn. For instance, the use of techniques such as payment of commission is the standard of motivation in sales and marketing jobs. The use of bonuses applies to other positions such as management based and overall annual performance of the organization. The premise for these methods is that the performance of an organization shows up in how much money it makes hence those who work hard to bring in money deserve special recognition, which is usually in form of money.
Employee motivation is very important in any organization because it determines the success of any business. Motivated employees are easy to control and manage. Workers in this case are driven by company principles that are related to performance. Monetary rewards keep workers on their toes, which benefits the organization in general. The human resource department does not need to use resources in improving employee performance. Unlike sale of goods, service delivery calls for internal commitment on the side of employees. The industry relies heavily on the quality of service offered to customers. Therefore, employees must be highly motivated to realize this dream. Performance related pay could be employed by the human resource management to improve on the performance of the organization at the Wynn.
This project sought to uncover the issues related to performance pay in the organization. Wynn, Las Vegas was used in the study because service industries benefit more from employee motivation. Scholars have established 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 in the hospitality industry (Kusluvan 2003, p. 51)). The Wynn is one of the landmark establishments at the strip in the Las Vegas Boulevard. The hotel employs a large number of employees, which motivated the researcher to choose it for this study. For the purposes of this project, the department chosen was the housekeeping department because it is directly related to employees offering services to customers. The operations of this department vary considerably from other departments because it is involved in the delivery of services and does not directly collect revenue. It is not possible to measure directly how the services offered by individual staff members affect revenue in the organization.
However, some individuals believe that there is a way in which performance related pay could be employed at the Wayne to boost employee morale. The main concern of this project is 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?” This implies that the study analyzes some ways in which money can be used to improve an organization’s performance. Some methods could be used at the Wynn to improve performance but this study will only focus on money related techniques.
Justification of the study
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 money is a universal motivator hence can be applied in any situation (Bruce & Pepitone1998, p. 101). This study will provide a reasonable basis to test this assertion. The second reason is that the project will provide an opportunity for researchers to explore all methods available that could be utilized to motivate the staff. In the process, it will be an opportunity to conduct an in-depth study in 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 related pay across the board.
Aims and Objectives
In this study, the author will determine the impact of performance related pay on motivation of housekeeping staff in Wynn Las Vegas.
- To evaluate the effectiveness of performance related pay in motivating employees. This would enable policy makers to find a solution to existing problem of motivation.
- To generate new knowledge pertaining to performance related pay techniques. This would entail measuring accurately the characteristics of employees in the organization.
- To identify areas of further research in the area of performance related pay
- To come up with generalizations that could be used to improve the performance of hospitality organizations using performance related pay techniques.
Evaluation of performance related pay model would provide an opportunity to review the strengths and weaknesses of the theory. These include 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 and generating new knowledge that would bolster applicability of the theory. 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 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. This would allow them to focus on the weaknesses and come up with ways of boosting employee performance in the organization. The final objective would be to come up with general statements that could be applied in solving motivation issues in the organization (Goel 2008, p. 87). This implies that the study aims at developing a theory of motivation based on performance related pay.
Scope of the Study
The research aims at assessing the applicability of performance related pay techniques in motivating employees at the Wynn (Griffin & Moorhead 2009, p. 42). The study is only limited to one organization mainly because of its purpose. The study is academic meaning that time and resources are of essence. This implies that the study population will be limited. Those sampled will only include officials of the hotel that is, individuals from the housekeeping department and executives from the human resource department. The study can therefore be said to be limited in its scope.
Significance of the Study
The study aims at benefiting both future researchers and policy makers in the hotel industry. Researchers would benefit because the findings of this study could be utilized as the basis of future studies. Future researchers would revisit the conclusions made in this study and stage powerful studies as regards to performance related pay techniques. Furthermore, researchers would utilize the findings of this study as part of secondary sources to their studies. Policy makers at Wynn would benefit too because the findings of this study could be employed in solving problems related to employee motivation (Barrows & Powers 2008, p. 119). The study gives various options and how different methods could be combined to give powerful results.
Literature review pertains to cross-examining what other scholars have done in the field of study. This is based on the idea that knowledge is cumulative. Revisiting other people’s ideas and thoughts help in formulating both theoretical and conceptual frameworks. In this study, the researcher will employ some theories of motivation, which are part of theoretical literature. Conceptual literature will be revisited by scrutinizing what other researchers have concluded in their studies regarding to motivation of employees. Literature review is important because it offers a foundation to any study. Generally, literature review is related to determining how much is known. It is important because it keeps away unnecessary duplication of data and gives more knowledge to the researcher (Lauby 2005, P. 7). The researcher can only avoid mistakes committed by other researchers if he/she reviews literature. Therefore, review of literature helps a researcher to formulate a study that stands the taste of time.
Performance related pay as a Strategy for management
Strategic management focuses on both short-term and long-term objectives of the organization. Following future forecast of position of an organization, the management can formulate goals for the organization. The goals and objectives set will also lead to formulation of specific strategies to achieve the objectives. The management formulates the strategies while employees implement the strategies formulated by the organization. According to Lauby, the employees also monitor and evaluate the strategies while making the necessary adjustments in case of change in the working environment.
According to some scholars, the effectiveness of policies of the strategic department depends on employees of the organization. The success of the strategies formulated in the organization will depend on the teamwork exhibited by the employees while executing the various tasks related to the objectives of the housing staff at the Wynn. Scholars note that increasing the packages of employees would lead to success in the organization. Performance related pay would boost the morale and motivate workers to achieve given strategies. Moreover, researchers add that through performance related pay, employees’ conflicts witnessed at workplace and issues hindering objective achievement can be effectively solved without difficulties. As a researcher argues, labor force today is diverse and flexible. The diversity and flexibility of employees is utilized by big organizations to realize broader goals. This means that employees are involved in decision-making discussions with the management. This is usually made possible through brainstorming sessions where employees discuss the issues facing them and the organization, hence coming out with perfect solutions to problems and issues. This is only possible through implementing performance related pay.
Bacon and Blyton argue that the success of performance related pay in an organization depends on the organizational culture created by the management (Bacon & Blyton 2006, p. 15). The organizational culture of interpersonal communication and training encourages sharing amongst employees. Such a culture encourages implementation of performance related pay as compared to conservative cultures where employees are not encouraged to share their experiences and skills. For the department to succeed, it must also embrace performance related pay strategies that can enable it achieve its formulated strategies. When performance related pay is understood as a strategy in itself, the housekeeping department is able to set up mechanisms of cultivating teamwork at the Wynn. It can also set aside resources for training employees on important teamwork skills.
Performance Related Pay and autonomy
There is a relationship between performance related pay and autonomy of employees in organizations. According to Ketchum & Trist, performance related pay increases the level of autonomy of employees in making decisions about their work (Ketchum & Trist 1992, p. 46). Team autonomy is understood as the possibility of the group to participate in the decision-making process in relation to tasks, working methods, organization of working time and assessing the quality of their own work. Various types of teamwork differ according to the autonomy of individual members within the team and the autonomy of the team as a whole, including its participation in decision-making process within the housekeeping department at the Wynn. Implementing performance related pay is closely associated with an environment typified by the possibility to learn new things and perform complex tasks. Team workers embracing performance related pay are more likely to learn new things in their work than those not willing to implement it.
Performance Related Pay and job satisfaction
Performance related pay entails involving workers working in a team and as a group. Executing performance related pay has its own challenges and benefits. Employees experience all these. However, Kaye and Jordan-Evans (1999) note that there is a relationship between performances related pay and job satisfaction (Kaye & Jordan-Evans 1999, p. 89). If teams work well, have a common goal, are autonomous in their decision-making, and have responsibility and support, performance related pay becomes a valuable experience for the workers involved. Therefore, Working in a team and executing performance related pay contributes to job satisfaction. According to this model, two classes of factors influence job satisfaction. The first class of factors leading to job satisfaction corresponds to the employee’s need to further his or her qualifications and career and, by extension, to develop his or her personality.
The second category of factors form the basis that establishes the first set of factors and compromises working conditions in a broad sense while encompassing the wages of employees, management styles employed and the organization. The initial class of factors is often denoted as motivators or satisfactory while the second class of factors is the dissatisfactory. Thus, they are often referred to as the factors serving to prevent dissatisfaction, but with little influence on positive attitudes to work. Satisfaction is important for team and employee performance. If performance related pay increases employee’s job satisfaction, then the productivity of the employee will improve.
Performance Related Pay and Teamwork
Monetary motivation is important in every person’s daily life, though of particular importance is relevance of motivation to businesses and organizations. Activities of organizations including the Wynn are becoming complex due to advanced technology, which calls for other techniques of motivation such as performance related pay. Not all employees produce good results (Rufus 1998, p. 485). Performance related pay helps employees to overcome many obstacles associated with coordination, role ambiguity, personal conflicts, and free riders among many other problems in an organization. There is need to implement performance related pay in all forms of organizations including housekeeping departments. Housekeeping department should come up with groups in order to be rewarded financially. The teams should be taught how to improve their performance through improved skills. In addition, through performance related pay, employees obtain necessary skills for better individual performance. It is observed that skills of a team do not have to be innate. It is possible for team participants to learn new things and acquire skills and abilities necessary for working adequately in a team.
The success of a team will also depend o the abilities that the individual members have in relation to working in a team. The important skills and abilities for successful group work are the ability to be a team player and possession of skills and knowledge necessary to complete the assigned tasks. This calls for a team spirit in the entire workforce of the organization. Teamwork flounders where these attributes lack meaning that the management must engage employees in training in order to gain necessary skills and abilities. Despite these few issues, teamwork works perfectly for all types of organizations.
Despite the importance of teamwork in relation to performance related pay, it is admits that it is not easy to teach individuals on how to work in a team. This is because teaching individuals to work in a team goes beyond the limits of any traditionally based training as it involves teaching only skills that can facilitate teamwork and internal working of individuals. Teaching teamwork to individuals therefore involves innovative didactic techniques similar to techniques of experimental learning. For delivery of required results in relation to performance of a team, there is need to infer specific skills that are needed in teamwork.
Where such skills are deficient, employees should be trained on how they can perform better as a team and therefore enable the department meet its set housekeeping objectives. In particular, teaching of self-management and interpersonal team skills. These important skills enhance communication and interpersonal relationship in teams while enhancing teamwork and performance. Self-management team skills enable a team to manage its own activities and resources while working within the limits of the organization’s duties.
Negative consequences of teamwork on performance
Despite all the positive importance of performance related pay, there are possible negative impacts that can affect housekeeping department, employees, their performance, and the overall performance of the organization. This can include the possibility of an increased pace of work and the resulting higher workload and greater risk of health problems. However, the effects lie in the higher demand for performance and corresponding extended responsibilities and autonomy in teams. The high demand of work with no scope of control for teams and decision making on how the high demand can be met can lead to employees experiencing high levels of stress and work pressure. Scholars have divergent views as regards to the issue. The first group advocates for performance related pay claiming that it has positive impacts to organizations and employees, such as reducing the rate of work injuries, fewer absences from work and increased work productivity.
The other group advises against the use of performance related pay in organizations. They claim that performance related pay might have detrimental effects on workers since it increase work-related health problems and the risk of occupational hazards’ (Askenazy 2001, p. 56). The pace of work in the department can be increased through job rotation and greater responsibility for employees. This ensures that quality services are offered. Rotation of employees in their jobs and rapid organizational changes that are facilitated by flexible production processes can reduce the chances of employee exhaustion. Introduction of new forms of work organization, including performance related pay, leads to an increased workload and an increase in time pressure caused by a staff shortage and technical problems. The study further notes that introduction of performance related pay in organizations is followed by intensified work.
The high intensity of work can cause problems to the housing department at the Wynn if motivate employees are not controlled. According to Ketchum and Trist, there is a conflict between practices in organizations and work life balance policies (Ketchum & Trist 1992, p. 78). Working as a team in groups plays a larger role in high work demands. People who work in teams think about their work in their free time often than those not working in groups. Therefore, performance related pay is not very good for employees’ social life. Based on these findings, it is important that the housing department at the Wynn analyses the effects of performance related pay both to the housekeeping department and to individual employees before adopting performance related pay as a strategy for achieving organizational goals.
Performance related pay is important in every organization. Performance related pay can enable all types of organizations (both cash handling and service providing) to increase their performance. Through performance related pay, employees at the Wynn and the housekeeping department can gain morale to work hard and yield better results for the organization, the department and the individual. Performance related pay could be adopted as a strategy at the Wynn to increase the performance of individual employees and the entire organization. Effective performance related pay should be cultivated in the housekeeping department through better organizational culture that encourages cooperation and participation. At the Wynn, performance related pay could be realized through training employees to obtain necessary interpersonal skills. It is important that all organizations encourage performance related pay because employees cannot work deliver without being motivated. The next chapter will discuss the methodology undertaken by this study.
Research Approach and Paradigm
This research will take a deductive approach that will entail the researcher working from a known hypothesis that performance related pay affects positively employee performance in the housekeeping department at the Wynn. Thus, the study takes a top down approach as compared to the inductive approach that takes an up down strategy.
To realize the use of deductive approach, quantitative tools of collecting and analyzing data like questionnaires and interviews were used. Quantitative tools were preferred as compared to qualitative tools because they enable the researcher to come up with facts, such as a hypothesis that performance related pay could improve the performance of employees in the housekeeping department at the Wynn and thereafter testing and confirming the hypothesis. This is unlike qualitative tools that first come up with an abstract idea that is followed by creation of theories and concepts about the idea. Lastly, data in quantitative research is hard and reliable as compared to qualitative research where data is just rich and deep (Quinn 2002, p 90).
In addition to the above, this study takes a positivism kind of philosophy towards the impact of performance related pay to employee performance in the housekeeping department at the Wynn. A positivism approach will make the researcher understand more the impact of performance related pay on not only employees but also the overall organization.
This chapter focuses on various aspects of research development. It includes 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 research in this project compared closely with the methods proposed in the project proposal (Anderson 2004, p. 89) 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, p. 31). In this study, respondents were briefed in advance. The officials of Wynn were given relevant notice by the researcher. The study population was also amicably informed in order to get prepared for the study. Briefing was important because it could enhance reliability of the study. It is also ethical to inform people before researching on them. The findings were also made public to the researched as one way of ensuring morality in the study. Furthermore, the researcher observed researcher-researcher ethics by keeping away from criticism. Out of 15 questionnairs sent to repondents, 14 of them were filled and returned. This was not a bad response. The response rate was high because the researcher insisted that the study was purely academic. This encouraged many employees at Wynn to fill in their questionnairs.
This research utilized quantitative research methods in conducting the study and collecting data.. Quantitative research was used althrough because it aims at summarizing data mathematically. In this regard, the research took the form of a survey, whereby the researcher identified some individuals and posted questionnaires to them. The sampled population was selected randomly in order to eliminate biases. The researcher made follow-ups by conducting respondents on phone. Interviewing is another method of data collection that was used in this research. The researcher extracted more information from respondents by calling them.
There were two key methods used to gather information in this report. The first one was through a questionaire, which was administered online to the staff at the Wynn. It is attached to this document. The questionaire sought to capture various attutudes of staff at the Wynn regarding their 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 to find information on the application of motivation techniques and also to determine the current state of research in the use of performance pay. The questionnaire had four Parts. The first part sought to capture the biodata information of respondents. The second part dealt with the demography and gender of the respondents. This was to ascertain the prevalence of views in varoius categories in order to ensure that if any differences came about, then they would be captured in their demographic space. The third part dealt with academic credentials and work experience. The motivation for this section came from the understanding that different sections of 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 workers.
The questionaire also employed a mix of open ended and closed ended questions to capture different aspects of issues studied. Open ended questions were used because thay give respondents more time to figure out their opinions, which would make them volunteer more information related to felings, outlooks and comprehension of the subject. This would allow a researcher to understand the position of respondents as regards to feelings. Open ended questions minimize some errors that could have been created in the course of research. Respondents rarely forget answers if given an opportunity to respond freely. Furthermore, respondents cannot ignore some questions because they must go through all of them. Open ended questions generate data that can be used in data analysis by other researchers. In other words, they allow secondary data analysis. On the other hand, closed-ended questions are analyzed easily. That is why they were used in this study. Each response can be coded for statistical interpretation. Nonetheless, closed-ended questions are compatible with computer analysis package. The technique is more specific meaning that its answers are consistent in all conditions. This aspect is impossible with open-ended questions because each respondent is allowed to use his/her own words. Finally, closed-ended questions take less time to administer unlike open-ended questions, which are detailed hence time consuming.
The questionnaire was sent to respondents through the internet that is, the researcher mailed the questions to respective respondents. The researcher arrived at this decision after considering time and reseources. The method is costless and less time consuming. Furthmore, the method allows respondents to reflect on the questions and answer them accurately. Employing research assistants would be problematic because of the sensitivity of the study. Many people would be reluctant to give their views freely. The method is ineffective because answers are not independent of themselves. The respondent might not have filled the questions themselves. Moreover, the method is affected by the respondent’s level of literacy. One big disadvantage of the technique is that there is no interaction between the researcher and the researched. This means that respondent’s reactions are not captured. Reactions are important because they give more information regarding to the feelings of respondents. Generally, the technique is more applicable where the researcher is interested in numbers, not deep feelings of the respondent. In this study, the researcher is interested in identifying the number of employees who feel performance related pay is the suitable method of stimulating employees.
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 at that period. Secondly, the literature availed a number of theories dealing with the application of motivation in the business world and performance related pay in the context of human 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 conducted studies on various elements of performance related pay and its effect on motivation. 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 issues that are unique to the Wynn. This is because there was no accessible literature with 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 throughout 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. After collection, the data went through analysis, culminating the observations and conslusions discussed in chapter three and four, respectively.
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, 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 required data.
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 that other researchers in the field of motivation undertook. The other areas where the literature review covered include 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 provided 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. From these sources, several findings came to the fore.
The online questionnaire provided the means of collecting 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 enabled the study to provide as much detail as possible while eliminating the risk of high variance in responses. The administration of the questionnaires took place online because of varying working hours. In addition, it eased access to the questionnaire. After filing in the soft copy, respondents sent it to a designated email address. This measure resulted to reduced costs transport and accommodation. The expenses could be 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 because the findings were analyzed using a software referred to as SPSS. Finally, it did not generate any paper waste hence contributing to environmental conservation.
Reliability and validity
The performance of any research tool is usually measured in terms of reliability, validity and sensitivity as well as specificity. These concepts will also be applied in this study by the researcher to ascertain the reliability of the study. According to Clarke, reliability is the ability by which a study is able to produce results that are consistent and stable over a given period given similar circumstances (Clarke 1998, p 1244). Various types of validities exist that include internal validity and external validity. Internal validity relates to the correlation between items when measured on a scale. Whenever a study provides the same results after application of two different measures, the outcome is said to be equivalent.
Validity is the extent to which a given instrument is designed to measure. The validity of a study can vary due to different samples used. In one situation, a study can be valid while in other scenarios, it may not. The validity of a study is measured by what the study claims to measure and the availability of logical errors in the conclusions drawn from the study. Internal validity is the extent to which it is possible to make independent reference from the findings of a study especially if the independent variable influences the dependent variable. On the other hand, external validity is the general application of the findings of a study to other settings.
Theoretical construct of a study is measured using construct validity while convergent validity makes comparison between the scores that are obtained from different instruments that are used in the study. Unlike convergent validity, divergent validity compares the instruments used in the study that measure opposite concepts. Given the above validity and reliability, the study is valid ad reliable for use by any person or housekeeping department.
Responses to interviews and questionnaires will be analyzed using thematic analysis. This tool is considered to be highly inductive, as themes are not imposed on data by the researcher but rather emerge from data itself. In this method, data from different people is compared and contrasted, similarities and differences identified in a process that continues until the researcher is satisfied that no more new issues or themes are arising. Thematic analysis was chosen because it allows rich, in-depth, and detailed meaning to be derived from collected data. It involves coding of data according to emerging themes. Thematic analysis analyses the descriptions line by line, allowing rich in-depth data to be derived from responses. This tool categorizes the findings and conclusions from various sources according to the emerging themes, making it possible to identify similarities in the meanings and explanations from the various respondents. The researcher is also able to highlight the main issues emerging from the responses. Line by line analysis allows the researcher to highlight matching patterns in the text from different responses allowing quantification of data.
Research methodology is an important aspect of any research because it determines the successfullness of any study. This study employed quantitative research method because it was interested in summarizing facts mathematically. A questionnaire was utilized in colecting data because it could easily be mailed to respondents. The researcher made sure that validity and reliability are catered for in the study. Furthermore, the research used deductive approach because it utilized available first before moving to the field to confirm the results. Positivism was employed as a paradigm for understanding the research.
Presentation of Results
There were several interesting observations made in the process of data collection. The observations include those made from the literature review and those made from analysis of data collected through the questionnaire. In this section, the two sources of data present the categories used for disseminating the findings. In the first case, the information covers the information retrieved from various academic sources such as journals, reports, and books on 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 of 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 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, financial incentives no longer provide motivation (Armstrong 2002, p. 67). 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 in order to realize high performance. The main objective is to present them with working conditions where their productivity increases for a personal reward. In the process, the company attains a better bottom line objective. 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.
The findings from the data collected from the housekeeping staff at the Wynn revealed the following:
- 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 are well structured. Motivation to perform comes through close supervision (Kuvaas & Dysvik 2009, p. 12). 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 than 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 in the organization. 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 to mean 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, 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. 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 responsibility there is not just execution of specific tasks but development and sustenance of a strategic direction for the organization. This makes managers to be liable to 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 desire for higher pay. Considering that many employees in the housekeeping section felt that they did not adequately understand how performance pay works, it was amazing 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 mean that they want to be involved. This is a proof that before implementation of performance related pay program at the Wynn in Las Vegas, it is necessary to carry out a thorough familiarization exercise to ensure that all employees know what it is about before they get committed 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
The main implication of the findings is that there is 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. The research required in this area would be aiming at determining the critical factors that would allow successful implementation of the system. The research will need to determine the impact of implementing performance related pay systems in organizations, 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.
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. This could justify a closer consideration for implementing the system. This conclusion came about after reviewing literature that discussed various aspects of motivation and performance related pay.
The impact of motivation on the housekeeping staff was that the raising of awareness and the measurement of the level of interest in the concept would boost employee motivation. Sixty percent of the staff showed interest in the concept. The staff sees this as an avenue to increase their productivity and to earn more money in the process. This shows that money is a motivating factor, which would generate positive results.
The key areas 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 now target senior staff only. These studies should aim at identifying the critical success factors in the implementation process of performance pay on large scale at lower levels of organizations.
Literature review shows that performance related pay is indeed one of the most important aspects of motivation. People are motivated through monetary incentives, which mean that the top management at the Wynn must come to the realization that workers must get satisfied financially for them to perform. Furthermore, there were many inconsistencies in literature meaning that money is not the only motivator of employees. In fact, involving workers in decision-making is one of the most important aspects that must always be considered by the management. This is not to forget that involving workers in decision-making alone would not generate good results. The management must therefore utilize at least two techniques to motivate junior workers.
Even after briefing workers about the study, many did not understand what exactly performance related pay mean. They still thought that it is an ordinary salary increment. This means that the researcher encountered a difficult of reminding employees what the concept meant. Furthermore, not all employees were willing to share their personal information with the researcher. They only answered questions that seemed to be general. For those who answered, they gave very little information. This could be attributed to the technique employed in collecting data.
Research findings confirm that performance related pay could assist the employees to perform better. However, it is true that more needs to be done in order to realize this. Workers are willing to be incorporated into the system of performance related pay but they are not fully familiar with the concept. Therefore, the management at the Wynn should organize training to educate workers on the importance of the technique.
Based on this research, the recommendations for the Wynn, Las Vegas are as follows:
- Institutional measures should leverage the interest generated through the exercise of performance related pay.
The Wynn stands to gain by introducing measures aimed at taking advantage of the interest the exercise generated through the concept of performance related pay among the lower cadre staff. The surveys showed that there is a lot more that employees need to do in order to boost the performance at the Wynn. This is because employees confessed that they were not working as hard as they could. By introducing measures to tackle the motivational requirements, the Wynn will reap from increased performance, which 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 would be possible 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 (OECD 2005, p 89). 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 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 (Brown & Armstrong 1999, p. 19).
- 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 it 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 (Green, 1992, p. 14). In addition, there is a diminishing return on performance related pay, especially at the lower levels. To sustain employees’ levels of motivation, the Wynn will spend a considerable time. An integrated approach compensates for the diminishing returns.
In conclusion, 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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- Male ___
- Female ___
How old are you:
How long have you worked at the Wynn___
How Long have you worked in Housekeeping section___
How many years of experience do you have in housekeeping___
How many employers have you had___
What is your current pay ($):
- 10,001- 15,000
- 15001- 20,000
- What do you understand by performance related pay?
- Are you aware of anywhere where performance related pay is used?
- What is you view on getting paid according to your work output
- If the Wynn introduced the option of getting your pay according to your work output, would you opt in?
- Do you put in all you energy in you work at the Wynn?
- How many hours a week should you be working?
- How many hours do you actually work?
- What would you recommend to the management to do to help you perform better?
- How long do you plan to work at the Wynn?
- How long do you intend to work in the Hospitality industry?