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InterContinental Hotel Group (IHG) PERFORMANCE MANAGEMENT

policy  purpose
InterContinental Hotel Group (IHG) strives to create an innovative and stimulating working environment for all employees.
This policy will provide clear guidelines on performance and behavior management for IHG employees.


APPLICABILITY/SCOPE
This policy applies to all corporate and hotel based permanent employees, contractors, casual employees and temporary employees of owned, managed and leased hotels in the InterContinental Hotels Group in Asia Pacific.


This document provide information on performance and behaviour management.
IHG’s approach to managing performance and behaviour make a clear distinction between:

Unsatisfactory performance; and

Misconduct

Please note it is not within the scope of this document to outline every scenario of performance and behaviour that may arise.


GENERAL POLICY STATEMENT
IHG Line Managers are responsible for managing the performance and conduct of their employees.
The line manager will communicate the required performance expectation.
They will also take prompt and fair action to address unsatisfactory performance or unacceptable behaviour.

Any employee who is subject to disciplinary procedure should be treated fairly and in accordance with this procedure with any necessary modifications in the circumstance.
In particular, the employee will also be fully aware of any allegation made, and given an adequate opportunity to respond to allegations.

Refer the appendix in the separate attachment to this policy for a flowchart on unsatisfactory performance and misconduct.


PROCEDURE(s)
As outlined in the policy.

ADMINISTRATIVERESPONSIBILITY
The responsibility for the development of and amendments to this policy resides with Asia Pacific Corporate Human Resources.
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UNSATISFACTORY PERFORMANCE

What is unsatisfactory performance and when does it apply?

Unsatisfactory performance is performance that falls below acceptable levels of quality, quantity, timeliness and cost effectiveness.

Examples:

•        Failure to meet deadlines
•        Failure to achieve set quotas/targets
•        Unsatisfactory level of errors/defects/complaints

Performance improvement solutions:

Performance management may involve one or more of these steps below:

•        Coaching/Development
Where an employee new to a role requires guidance in the development of the skills, knowledge and experience necessary to meet the required performance levels.

•        Corrective Counseling
A problem solving discussion to eliminate the barriers to performance where an employee is adequately trained and experienced yet has failed to meet required performance levels.

•        Redirection
Redirect and refocus the employee where they lack clarity of understanding of their role, responsibilities and/or tasks. Do this by identifying the:

•        Main requirements of the job as clearly and concisely as possible, and
•        Performance Standards required.

•        Performance Improvement Plan
These are short term goals which are agreed with the employee and monitored regularly to measure and whether the employee is correcting its performance issues

The objective of the performance improvement process is to educate and correct employee behaviour and/or performance.
In order to help measure and monitor whether the employee is correcting their behaviour sometimes Short Term Performance Objectives need to be agreed and put in place.
Key points to remember when agreeing any objectives:

•        The objectives need to be reasonable in that the employee can meet them within the agreed timeframe
•        The objectives should be measurable
•        The objectives should be in writing ideally with the employee’s written agreement

If this is the second or third time the employee has been put on Objectives or the employee fails to meet the objectives, then if the manager wants to  terminate the employee, then they should make it clear to the employee that if they fail to comply with the objectives, the manager will consider his/her options including termination.

If performance doesn’t improve:

In the event that there is no performance improvement, the manager will be entitled to take the following steps:

•        set a new performance plan
•        terminate the employee
•        if available, talk to the employee about alternative jobs which better suit the employee’s skill set

However prior to terminating the employee’s employment or offering an alternative position the manager must obtain the following approvals:

Hotel Employee -             the approval of the General Manager and HR Director of the Hotel; and
Corporate Employee-         the HR Director supporting the functional group and the Regional Director for that Group
By Rooms on 6-2-2009 23:32 last edited

Examples of Short Term Objects

Example 1:
Objective:-  ImproveF&B Service GSTS Rating to [inserttarget]or less by [insert date] 200[insertyear].

Measured:-  Reviewof GSTS for F&B at the end of each month.


Example 2:
Objective :-  Meetthe Forecast GOP for F&B for the next quarter
                      [NB:-Sometimes the objective needs to be broken down into tasks.]
Tasks:-         Increasethe average room rate to $[inserttarget]and occupancy to [insert target]%

Measured:-  Measuredby looking at RGI index.

Example 3:  
Objective:-  Focuson providing pro active financial support to the GM.
Tasks:-         Providetimely financial reports by no later than [inserttarget]of each month
                     Monitoroutstanding debt ledger and ensure accounts receivable no more than [insert target] days

Measured:-  Reviewof debt ledger at the end of each month.
Feedback obtained from GM
Monitoring & Measurement of Objective:
Eachof the objectives will be measured out of 5 on the same basis as the performancefeedback process.
A 3 or higher ratingwill be considered evidence that you are performing the objective, a rating of1 or 2 will be considered evidence that you are not meeting the objective


Ifyou achieve less than a 3 on more than [inserttarget]objectives then we will consider our options including termination of you fromyour position on the grounds of poor performance

Monitoring:-  Theseobjectives will continue over a period of [inserttarget]months and be (referred to as the“Performance Period”)

During this time we will meet every 2 weeks toreview and monitor your progress

MISCONDUCT

What is misconduct and when does it apply?

Misconduct is defined as behaviour that involves a breach of the type of professional and ethical behaviour which is expected by IHG.

Examples of misconduct include but are not limited to:

•        Absenteeism - Failure to provide required notice and/or medical certificates in relation to an illness/injury  
•        Absenteeism - Failure to attend work at the required time  
•        Failure to follow proper authorization procedures
•        Dishonesty
•        Theft or fraud affecting the company, its suppliers and/or customers;
•        Physical or verbal assault of a person at the workplace  
•        Unlawful Harassment, sexual or otherwise, of another employee, agent, visitor or customer (Refer IHG’s Sexual Harassment Policy)
•        A breach of the safety and environmental policies (ie. failure to report a workplace injury) (Refer IHG’s OH&S Policy);
•        A breach of information security policies (Refer to IHG’s IT policy)
•        Breach of confidentiality concerning the company's or a third person's information  
•        Being under the influence of or in the possession of alcohol or other intoxicating or illegal substances at work (Refer to IHG’s Drug Policy)
•        Falsification of company records or information
•        Making unauthorized alterations to individual customer accounts or to an employee's own account
•        Willful damage to company property
•        Refusal to carry out the lawful instruction of a manager

This list is not exhaustive. The action taken will depend on the seriousness of the alleged misconduct, prior instances of similar misconduct and the merits of the case.
DISCIPLINARY ACTION

What are the types of Disciplinary action?

Disciplinary action can take any of the following forms:

•        a verbal warning;
•        written warning;
•        final written warning;
•        termination with notice;
•        summary termination (ie termination without notice)

What is disciplinary action?

Disciplinary action does not necessarily follow a sequential/ consecutive path. For example, there may be circumstances where:

•        the initial disciplinary action taken is a final written warning,  
•        the misconduct of the employee justifies termination without any prior warnings; or
•        more than two warnings may be warranted prior to termination.

The key consideration is to ensure that each case is decided on its own merits.

What is a warning?

A warning is formal communication to an employee that:

•        their behaviour or continued unsatisfactory level of performance is unacceptable, and
•        if there is no change in the behaviour/performance it may lead to dismissal.

A warning will be given where an employee has failed to improve his or her performance, or has engaged in misconduct that warrants it.

A warning can be verbal or written.

A warning remains on an employee's personnel file for a period of 12 months.

IHG’s disciplinary procedure

It is imperative that HR is consulted prior to any disciplinary action being undertaken.

The disciplinary procedure will be followed when:

•        The performance improvement process has failed to produce an acceptable level of work performance; or
•        An employee has engaged in behaviour that is unacceptable / misconduct
The disciplinary procedure will involve the following:

1.        Preliminary investigation
2.        Interview
3.        Due consideration
4.        Decision
5.        Implement decision / action plan

1.        Preliminary Investigation

The person carrying out the preliminary investigation will generally be the Line Manager.

The purpose of the preliminary investigation is to establish the facts and gather evidence through a thorough investigation. Further investigation may also need to be conducted at later stages of the disciplinary process. Employee may be placed on suspension on full pay whilst the investigation is being carried out.

2.        Interview

If the preliminary investigation appears to substantiate the allegations or the persistence of a performance or behaviour problem, the employee will be interviewed. The employee will have the right to have a colleague or close contact present during the interview.

The purpose of the interview is to:  

•        Clearly put to the employee the nature of the allegations;
•        Explain to the employee the types of disciplinary action which might be taken if the allegations are found to be substantiated;
•        Give the opportunity to tell their side of the story, provide any explanation, and put anything else which may be relevant in IHG's consideration of what is the appropriate action.  
3.        Due consideration

Give due consideration to the employee's explanation/response. It is important to provide sufficient time to give full consideration to any explanation given by the employee, before any final decision is taken on disciplinary action.  It may be that, in light of the employee's response, that further investigation is required.

4.        Decision

If it has been established that an employee is responsible for some form of persistent unsatisfactory performance or misconduct, the line manager must select the appropriate form of disciplinary action to be taken. Any decision must be made in consultation with Human Resources.

5.        Implement decision / action plan

In all but exceptional cases the appropriate action should be decided upon and implemented before the completion of the employee's next working day.
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