Hotel Serai has been operating for almost 20 years at a resort in Royal Belum, Perak, Malaysia. The hotel has managed to attract customers with a strategic location as a accommodation with a natural concept and very comfortable. Recently, there are some complaints that although not many but persistent about the services of employees either at the front or related to room cleanliness. Although most employees are locals, but they are screened and selected based on appropriate criteria to ensure the suitability of individual personalities, abilities, and work. There was also a slight increase in the number of turnovers despite only operating for 6 months after the Covid 19 issue.

Director of Human Resources, Pn Suri is aware that the Samurai Hotel compensation plan does not link salary to performance and supervisors always tend to give merit overall and no goals are set. Therefore, employees have no specific achievements to be directed to and if they perform very well and get a raise in salary or rank, their chances are the same as those of underperformers. This is because supervisors or those who evaluate are based on individual justification only.

Clearly, there are no incentive plans that link employee performance with strategic employee behaviors, such as hospitalizing guests or providing efficient services that make guests feel satisfied and happy. Clearly, the hotel's financial reward system is insufficient and there is no element that can link positive and service -oriented behavior with appropriate rewards. Based on the market research also Pn Suri found that compared to the top companies, more than 80% of the workforce have merit salaries or performance -related incentive payments.

He also knows that in high-performing companies, there is at least a 5% difference in pay incentives between low-performing and high-performing employees. As such, it supports Pn Suri and her team to plan a new incentive plan for all employees.)

Referring to the situation in the case above, please answer all the questions below.

Q1: Describe TWO (2) reasons why incentive or pay for performance is important and what is the relevance to the issues in the case of Hotel Serai? In your answer, please give TWO (2) issues from the case

Q2: Suggest TWO (2) examples of incentives based on individual programs and TWO (2) examples of the most appropriate team incentives for hotel employees that can be offered and give justification the importance of your choice for each proposa