Performance Management Cycle Plan for a B&B Business
This paper develops a six-step Performance Management Cycle plan for Luxury Place B&B, a small bed and breakfast establishment in eastern New York seeking to recover from the economic impact of the COVID-19 pandemic. The plan outlines performance outcomes at both the organizational and departmental levels, defines employee goals and behaviors, and details the support structures needed to sustain progress. Two appraisal methods — management by objectives and 360-degree feedback — are applied to evaluate departmental and individual performance. The paper also addresses identified training needs, a dual monetary and non-monetary reward system, and revised HR strategies incorporating role-playing and case studies to strengthen diversity and employee retention.
- Introduction: Background on Luxury Place B&B and rationale
- Performance Management Process: Six-step cycle covering goals, appraisal, and rewards
- HR Management Strategies: Current coaching approach and its limitations
- Revised HR Strategies and Employee Retention: New training methods and retention outcomes
- Conclusion: Summary of deficiencies identified and recommendations
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What makes this paper effective
- The paper applies a structured, step-by-step framework to a concrete real-world scenario, making abstract performance management concepts tangible and easy to follow.
- It integrates both organizational-level and individual-level appraisal methods (MBO and 360-degree feedback), demonstrating an understanding of how evaluation tools serve different purposes.
- The paper connects HR strategy revisions directly to measurable outcomes like employee retention and diversity, grounding recommendations in cited academic sources.
Key academic technique demonstrated
The paper demonstrates applied theory: it takes established performance management frameworks from academic literature (Alder, 2018; Marr & Gray, 2012; Wade & Recardo, 2009) and uses them to justify specific business decisions. Rather than simply summarizing theory, the author deploys citations as evidence to support each step of the management cycle, showing how scholarly models translate into operational plans.
Structure breakdown
The paper opens with a brief introduction identifying the organization and the rationale for the plan. The main body follows a numbered six-step performance management cycle — outcomes, employee goals, support structures, evaluation, improvements, and consequences — providing clear scaffolding. A separate section then addresses existing and revised HR strategies, linking them to retention outcomes. The conclusion synthesizes findings and restates the key deficiencies and recommendations identified through the cycle.
Introduction
From the outset, it is important to note that the relevance of effective performance management cannot be overstated when it comes to an organization's ability to remain competitive in an increasingly demanding marketplace. In the absence of effective performance management, employees cannot properly appreciate the objectives of the organization or work meaningfully toward achieving them. This paper concerns itself with the development of a Performance Management Cycle plan for a bed and breakfast organization operating in New York. For purposes of this discussion, the organization will be referred to as Luxury Place B&B.
Luxury Place B&B is a small accommodation establishment located in eastern New York. The company, established in 2003, offers accommodation and breakfast services to a diverse clientele. The organization targets guests looking for a family-like setting for an overnight stay or a few days. At present, Luxury Place B&B has a total of 18 rooms, which makes it possible to build close relationships with guests and attend to their specific needs. Like many other establishments in the hospitality industry, Luxury Place B&B was negatively impacted by the COVID-19 pandemic. Over recent months, the company has been seeking to restart its operations in a marketplace that has not yet fully recovered. It is on this basis that there is a clear need for an effective performance management system.
As Alder (2018) points out, effective performance management benefits organizations in multiple ways. In the words of the author, performance management has been shown to result in "improved organizational performance, employee retention and loyalty, improved productivity…" (Alder, 2018, p. 113). It therefore follows that one of the key strategies to turn around the fortunes of Luxury Place B&B is the deployment of an effective performance management system — one with the overall mandate of ensuring that employee work is monitored and evaluated in a meaningful manner.
Performance Management Process
Performance Outcomes for the Company:
1. A 25% decrease in operating costs.
2. A 35% increase in net profit.
3. Establishment of a more diverse workforce, so as to ensure that the unique needs of clients from all cultures and backgrounds are addressed.
Performance Outcomes for the Marketing Department:
1. A 65% increase in occupancy rate over the next six months.
2. An increased ratio of local clientele relative to international clientele.
1. Collaborate with one another in effective and meaningful ways by embracing a spirit of teamwork.
2. Deploy digital marketing approaches, techniques, and strategies.
3. Fulfill assignments and tasks assigned by the department manager.
4. Engage in self-development efforts with regard to improved communication and interpersonal skills.
5. Engage customers in a professional and engaging manner with the intention of winning repeat customers and acquiring referrals.
a) Engagement of all stakeholders
All those crucial to the achievement of the goals and objectives identified above will be actively engaged and their cooperation sought. Key stakeholders include, but are not limited to, other departments, supporting staff, management, and external consultants and partners.
b) Managerial support and provision of resources
It has been established that without managerial support, the entire exercise is unlikely to succeed. This is especially true given that management serves as the custodian of organizational resources.
c) Effective communication
Efforts will be made to ensure that all key stakeholders can communicate in effective and meaningful formats. This is particularly important to ensure that feedback flows without impediment.
d) Close monitoring of performance measures
All established performance measures will be closely monitored to ensure that the performance of the marketing department and its employees is evaluated in an objective manner.
e) Establishment of an evaluation schedule
Clear timelines indicating performance evaluation intervals will be put in place. Efforts will be made to ensure that evaluation is frequent — specifically, evaluation will be conducted on a monthly basis.
Two appraisal methods were deployed: management by objectives (MBO) and 360-degree feedback. The former focused largely on the performance of the entire marketing department, whereas the latter focused on individual employee performance and competencies.
a) Management by Objectives
In this case, departmental managers and employees sought to establish the extent to which the objectives outlined in this plan were achieved in relation to the progress made. The review period was monthly. This approach was especially useful for assessing the overall performance of the department.
b) 360-Degree Feedback
According to Wade and Recardo (2009), this is a particularly effective appraisal method owing to its multidimensional perspective. Feedback was sourced from a wide range of sources, including customers, peers, and departmental managers. This approach was especially useful for assessing the competencies of individual employees.
It was established that employees needed further training in digital marketing and customer relationship-building. Additionally, it was determined that various teamwork enhancement approaches should be deployed to ensure that the marketing department functions as a unified force.
a) Reward
The need to reward individual employees and teams identified as high achievers was established. Two reward systems were developed: a monetary reward system and a non-monetary reward system. Under the monetary system, individual employees who performed exceptionally well — particularly following positive customer reviews — received a $1,000 reward, presented at a quarterly function. Non-monetary rewards included performance recognition certificates such as an Employee of the Month certificate. This was especially instrumental in recognizing and appreciating those deemed well-rounded contributors across multiple dimensions.
b) Training
Employees will need further training in the following areas:
i. Digital marketing
ii. Customer relationship-building skills
iii. Teamwork performance
Conclusion
It is clear from the discussion above that Luxury Place B&B would benefit from having a robust performance management system in place. The organization will need to formulate and implement a number of strategies to remain relevant in a business environment that has been depressed by the COVID-19 pandemic. The marketing department will be especially instrumental in this effort. Based on the assessment of current performance following the establishment of specific objectives, certain deficiencies were identified. The need to implement an effective reward system and to adapt existing employee training approaches was established.
Alder, R. W. (2018). Strategic performance management: Accounting for organizational control. Taylor & Francis.
Marr, B., & Gray, D. (2012). Strategic performance management. Routledge.
Wade, D., & Recardo, R. (2009). Corporate performance management. Routledge.
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