Environmental Scan Of Tourism Business Free Sample


Environment scanning of tourism businesses is one of the pertinent approaches to identifying the occurrences and trends regarding the external and internal environment (Zhang, Majid, & Foo, 2013). It ultimately bears the success in the future of business through shaping strategies and goals. The environmental scanning will examine how the tourism businesses headed to the establishment can get benefit in the future by considering some aspects, including demographic, sociocultural, technological, competitive, economic, and regulatory. This particular analysis is intended to assess all the advantages and disadvantages of an intended tourism business in Canada by emphasizing these factors.


Demography is one of the significant external factors in the tourism business as it helps to identify current demand and available workforce to conduct the business. The report presented by the government of Canada has revealed that tourism spending in this country has outgrown 19.8% in the second quarter of 2022 (Government of Canada, 2022). In addition, the survey led by Statista has disclosed that the age group of 18 to 34 is fascinated with travel to Canada and out of their home provinces (statista, 2022). Moreover, Canada’s millennial travel more consecutively compared to the other age groups in the country.

The tourism sector of Canada has made a huge contribution to the flourishing of the economy, and approximately 1.9 million full-time jobs are associated with this sector. On top of that, 748000 employment is straightforwardly attributable due to tourist spend (Kara & Mkwizu, 2020). People who come under the age range of 15 to 24 have created around 31% of the workforce in the tourism sector. Aged workers are also not an exception in this regard. They also contribute to this sector through excellent productivity which makes up 28.5% of the workforce in Canada’s tourism. The sector is also complemented by the women workforce in this sector with the presence of 48.1% in the various categories like accommodation, travel services, and food & beverage services (Pasaco-González, Campón-Cerro, Moreno-Lobato, & Sánchez-Vargas, 2023). Apart from all that, the tourism management industry in Canada is one of the most renowned and fastest-leading industries in the entire world. Numerous job opportunities are emerging rapidly. Therefore, the benefits of a potent workforce would be one of the effective advantages of targeting millennials for opening the tourism business.


The socio-cultural factor might include the great community sense along with expanded social capital in the tourism business. Filled with incredible culture, historical wonders, and some famous landmarks can provide an inexplicable experience to the tourist where they can discover various cultures, including the most famous French-Canadian culture. The tourism sector of Canada has also concentrated on some cultural events that attract most tourists in the past. One such noted event is the Calgary Stampede which provides the experience of the world’s largest adventurous activities, including rodeos (Rosenthal & Schäfer, 2015). In today’s world, tourists belonging to any age are captivated by the Heritage of any destination that has the ability to capture a discerning and mature market. Canada’s destinations are well placed in that case, providing benefits ranging from trends and various travel experiences to marketing heritage. Positive attitude development should also be included in the set of positive socio-cultural benefits for the tourism business in Canada (Rosenthal & Schäfer, 2015). The tourism businesses in Canada can be left with positive impacts on the indigenous people where they can learn the culture, decreasing negative perceptions along with stereotype development from each other. It ultimately encourages pride development, tolerance, and understanding of a specific culture, alongside interaction and satisfaction.

On the contrary, tourism businesses in Canada also affect local ecology positively and negatively. It comprises increasing mass tourism and converting it into mass consumption, inadequate resources, and pollution (Zielinski, Jeong & Milanés, 2021). Nevertheless, there is no impact on the people’s lives in terms of tourists in the local communities, for instance, the pseudo conflicts. Therefore, by implementing some controlling and regulating measures, the sociocultural factor in Canada can provide various benefits to the tourism business.


In today’s digital era, technology has a great impact on the tourism business in Canada. Increasing international tourist spending in Canada has the major consequences of increasing popularity and growth of the electronic payment system through credit, debit, and prepaid cards. The advancement and expansion of electronic payment technology in Canada tourism has provided a contribution of 196 billion dollars (CDN) to the country’s economy for the previous 25 years (Neumann & Mason, 2022). The recent covid-19 pandemic has catalyzed the utilisation of technology not only in the retail and manufacturing industry but also in Canada’s tourism industry. All the destinations in Canada are incorporating digital technology to improve security and increase the connection that can drive a seamless experience for all customers in terms of tourists. With one of the latest and emerging technologies called artificial intelligence (AI), tourism companies can add value to customer services through personalization. In addition, customer-centric technology can also be beneficial for the destination where the business can streamline the entire travel experience at the time of introducing the solutions to accumulate information and also understand the visitor’s behavior in a real-time and better manner (van Nuenen & Scarles, 2021) Given the user requirements, the tourism business can uplift its profile with the help of the digital divide in this country. Furthermore, the upcoming tourism businesses in Canada have a great opportunity for expanding the communication infrastructure as the country administration is already headed to implement the communication infrastructure between the tourism operators and all the communities.

The services of online travel arrangements are in demand, and it is growing steadily in Canada. One of the significant manifestations of Technology in Canada’s tourism sector is online hotel booking, which became possible with mobile optimization, cloud computing, and increased bandwidth. It ultimately increases guest satisfaction through escalating efficiencies and minimizing costs (Pai, Liu, Kang, & Dai, 2020).

On the flip side, some travel industries in Canada, such as travel accommodation and arrangement industries, confront an array of challenges when it comes to leveraging the technological environment. One of the common technological advancements, like the internet, can be viewed as an opportunity on the one hand, which can ultimately pose a threat on the other hand. For example, the online reservation system and internet distribution channels generally dampen the hotel services and influence the customers to bypass the travel agencies (Majeed, Zhou, Lu, & Ramkissoon, 2020). Although, it can be regulated by providing premium services to customers. Therefore, the technological aspect can be a g, artificiall businesses in Canada.


The report published by Pacific Asia Travel Association (PATA) has disclosed that the future travelers are likely to gravitate to destinations associated with health, cleanliness, and safety. The sentiments of early visitors have identified the strong influence on the context of booking behavior which is the main reason for changing the competitiveness in the individual destinations depending on how the country is tackling the challenges, especially the negative consequences of the pandemic (Salinas Fernández, Guaita Martínez, & Martín Martín, 2022). The magnificent and high vaccination level in Canada, along with various destinations, is providing a nature-related and unique experience to the customers that can confer a competitive age nowadays when certain tourism companies in the other country are encountering new difficulties in business operations. The tourism sector of Canada is also indulged with a well-respected brand that builds the capability to perceive the confidence of travelers through giving trustworthy services on the matter of health and safety (Streimikiene, Svagzdiene, Jasinskas, & Simanavicius, 2020). The tourism sector of Canada also created a culture of equity that helps to promote diversity and inclusion. Due to this particular reason, the tourism sector in Canada can drive toward creativity, innovation, and competitive age in the organizations and supply chain at the time of building current and future employees. Thus, any new tourism business in Canada can get a positive competitive advantage.


There is no doubt that the sudden catastrophic covid-19 pandemic has had an enormous effect on the tourism sector in Canada. The main reason for including this statement is that around 9 lakh jobve been submerged because of the crisis. Indigenous tourism has also faced some miserable conditions where employment scaled down to 68% in 2020. Nonetheless, the spending in the tourism sector has grown by 1.3% in the first quarter of the year 2022 (Government of Canada, 2023). Is the increment of tourism spending for the fourth consecutive time where the tourism gross domestic product (GDP) has been by 0.9% positively, and also the employment in this sector is revamping since the first quarter of 2022 (Government of Canada, 2023). This growth has been driven by expanding tourism spending by the Canadian people, which is measured + 2.9% in this country. In addition to that, the transportation services of Canada, which is a great contributor to the country’s economy, have also increased. In contrast to that, the spending by international visitors has decreased from the perspective of the tourism sector but the report has challenged this statement and proved that international customer spending in this sector is increasing. Customers’ expenditure of international tourists has increased annually , increasing up to 281.0 % and representing approximately 21.8% of overall tourism spent (Government of Canada, 2022). Along the same line, the regional development agencies in Canada are facilitating that tourism business by exaggerating economic growth. In the eyes of all discussion, the economic factor will positively impact the upcoming businesses in the tourism industry in Canada.


The tourism sector of Canada follows various regulatory mechanisms in order to ensure destination development and tourism promotion. The federal government, 3 territorial governments, and 10 provincial governments, along with various municipalities, act as an administrator in the tourism sector to maintain innovation and economic development in this specific sector (Rahman, Gazi, Bhuiyan, & Rahaman, 2021). The Canadian government has mandated three different pillars to foster the tourism business in this country. In this case, the upcoming tourism businesses in Canada must concentrate on attracting investment in the tourism sector, diversifying tourism offerings, and creating jobs. The Organisation for Economic Cooperation and Development (OECD) tourism trends and policy has also made the necessaries of the tourism businesses with the collaboration of public and private sectors, including airlines, for promoting the country Canada as a premier destination for the tourist (OECD, 2020). The regulatory mandate presented by Canada is easy to implement and follow. Thus, it will be efficacious for the tourism businesses to follow.


From the analysis, it can be concluded that almost all the aspects mentioned here can provide a positive implication and outlook to the tourism business in Canada. The tourism sector in Canada has an important stimulus for increasing the economy and commercial growth. However, some aspects, such as technology, may have some negative implications due to the rapid utilization of the Internet which can ultimately reduce the prices of all services given by the hotel sectors. Online booking is also one crucial reason in this regard. However, it can be balanced through some regulatory actions by the government. Overall, the analysis has recognized a huge benefit in opening tourism businesses in Canada.


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Majeed, S., Zhou, Z., Lu, C., & Ramkissoon, H. (2020). Online Tourism Information and Tourist Behavior: A Structural Equation Modeling Analysis Based on a Self-Administered Survey. Frontiers in Psychology11. https://doi.org/10.3389/fpsyg.2020.00599

Neumann, P., & Mason, C. W. (2022). The influence of transportation and digital technologies on backcountry tourism and recreation in British Columbia, Canada. Tourism Geographies, 1–20. https://doi.org/10.1080/14616688.2022.2098373

Pai, C.-K., Liu, Y., Kang, S., & Dai, A. (2020). The Role of Perceived Smart Tourism Technology Experience for Tourist Satisfaction, Happiness and Revisit Intention. Sustainability12(16), 6592. https://doi.org/10.3390/su12166592

Pasaco-González, B. S., Campón-Cerro, A. M., Moreno-Lobato, A., & Sánchez-Vargas, E. (2023). The Role of Demographics and Previous Experience in Tourists’ Experiential Perceptions. Sustainability15(4), 3768. https://doi.org/10.3390/su15043768

Rahman, M. K., Gazi, Md. A. I., Bhuiyan, M. A., & Rahaman, Md. A. (2021). Effect of Covid-19 pandemic on tourist travel risk and management perceptions. PLOS ONE16(9), e0256486. https://doi.org/10.1371/journal.pone.0256486

Rosenthal, C., & Schäfer, S. (2015). The Calgary Stampede Through a Cultural Studies Perspective. Cultural Studies ↔ Critical Methodologies16(1), 48–57. https://doi.org/10.1177/1532708615615604

Salinas Fernández, J. A., Guaita Martínez, J. M., & Martín Martín, J. M. (2022). An analysis of the competitiveness of the tourism industry in a context of economic recovery following the COVID19 pandemic. Technological Forecasting and Social Change174, 121301. https://doi.org/10.1016/j.techfore.2021.121301

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van Nuenen, T., & Scarles, C. (2021). Advancements in technology and digital media in tourism. Tourist Studies21(1), 119–132. https://doi.org/10.1177/1468797621990410

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Zielinski, S., Jeong, Y., & Milanés, C. B. (2021). Factors that influence community-based tourism (CBT) in developing and developed countries. Tourism Geographies23(5-6), 1040-1072. https://www.tandfonline.com/doi/pdf/10.1080/14616688.2020.1786156?needAccess=true&role=button

OECD. (2020, December 14). Rebuilding tourism for the future: COVID-19 policy responses and recovery. Retrieved May 19, 2023, from OECD website: https://www.oecd.org/coronavirus/policy-responses/rebuilding-tourism-for-the-future-covid-19-policy-responses-and-recovery-bced9859/

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FLSA Exemption Analysis Free Essay

Exempt and nonexempt are categorizations mainly used to ascertain whether an employee s entitled to minimum wage and overtime pay protections under the Fair Labor Standards Act (FLSA) in the United States. However, exempt employees are not entitled to overtime pay for hours that exceeds 40 hours a workweek. They are also mainly salaried employees, which means they receive a predetermined fixed salary no matter the number of hours worked. Moreover, they are exempt from particular FLSA provisions such as overtime pay, grounded on the nature of their job duties, salary basis, and level of accountability. These types of employees are typically expected to practice independent judgment, possess more control over their work, and perform high-level tasks. Exempt positions typically entail administrative, executive, professional, and specific unique occupations (Mayer et al., 2013).

On the other hand, non-exempt employees can receive the federal minimum wage covering all hours and overtime at one and half times their average hourly rate exceeding forty hours a week. These employees are paid hourly and should accurately record and report the hours worked. Moreover, nonexempt employees are protected by all applicable FLSA, such as minimum wage, record-keeping requirements, and overtime payment. They are typically subject to the direction and control of their employers; thus, they follow specific guidelines and experience less autonomy in their work (Mayer et al., 2013).

Therefore, based on the information outlined in this case study, there is a higher likelihood that Ms. O’Neil would be categorized as a nonexempt employee concerning Fair Labor Standard Act (FLSA). In this case, nonexempt employees qualify for overtime payment protections and minimum wage under FLSA. Thus, Ms. O’Neil asserts that she worked unpaid overtime hours, which suggests that she might have been exempt from overtime provisions. However, the exemption that could be most critical in this case study is the domestic service exemption as outlined in FLSA. This type of exemption has relevance to individuals employed in a household, including personal attendants and housekeepers (Boris & Klein, 2006).

Nonetheless, it is necessary to consider that the exemption has particular criteria to be met, such as the nature of the work carried out and the linkage between the employee and the employer. Therefore, the specific details relating to Ms. O’Neil’s job responsibilities and her employment relationship with Lady Gaga would need further assessment to ascertain if the exemption applies. Nonetheless, it can accept that Ms. O’Neil was entitled to pay back for any additional hours she worked beyond 40 hours in a workweek because she was referred to as an exception from the overtime rule.

The most applicable exemption in this situation is the executive exception. This is because any employee that qualifies with specific requirements, including receiving pay, controlling more than one work routinely, and having a sizeable say in dismissing, promotion, and hiring other employees, is entitled to this exemption. However, Ms. O’Neil failed to fulfill any of these requirements due to her hourly pay and lack of firing or hiring power. Therefore, despite being unentitled to the executive exemption, she qualified for overtime compensation. Moreover, considering this case, the type of employee, the plaintiff, is relevant. The lawsuit could have been fascinating by the then-plaintiff if she had been considered exempt. This is critical for the magistrate judge to ascertain the significance of the lawsuit and its applicability in the FLSA.

Nevertheless, the settlement does not importantly mean that Lady Gaga violated the Fair Labor Standard Act (FLSA) or any other wage and hour conditions laws. Settlements are often attained in legal disputes for different reasons, such as avoiding the uncertainties and costs of trial. Therefore, in many circumstances, the parties may decide to settle even though they believe they have a solid legal position since litigation may take longer and be costly. The terms linked to the settlement were not disclosed in the case of Ms. O’Neil and Lady Gaga. Therefore, it is impossible to ascertain if a violation of the FLSA or any other wage law was violated.

Settlements in lieu of going to trial are typically typical in legal disputes, especially employment-linked cases. Thus, the choice to settle or go to trial relies on the particular situations of each case and the interests of the involved parties. Settlements may benefit both parties, such as allowing for faster resolution of the dispute, thus, reducing time and expenses related to the trial. They also offer an opportunity for the parties to negotiate terms that may better meet their interests and needs (Rahmat et al., 2022). They also help to maintain privacy and prevent potential negative publicity that may emerge from public trials.

Finally, parties may settle rather than go to trial for several reasons. One, settlements offer control and certainty over the case’s outcome. Thus, going to trial entails inherent risks since the outcomes are uncertain. Second, trials may be costly and time-consuming since litigation may be too expensive. Thus, settling the case can assist both parties in avoiding these costs and the lengthy process related to trial preparation and court proceedings.


Boris, E., & Klein, J. (2006). Organizing Home Care: Low-Waged Workers in the Welfare State. Politics & Society34(1), 81–108. https://doi.org/10.1177/0032329205284757

Mayer, G., Collins, B., & Bradley, D. H. (2013). The Fair Labor Standards Act (FLSA): An Overview. Ecommons.cornell.edu. https://ecommons.cornell.edu/handle/1813/77788

Rahmat, N. E., Zain, M. I. M., Saripan, H., Randawar, D. K., & Othman, M. F. (2022). Mediation as an Alternative Mechanism to Resolve Family Disputes in Malaysia: A Comparative Analysis with Australia and New Zealand. Intellectual Discourse30(2). https://journals.iium.edu.my/intdiscourse/index.php/id/article/view/1818

Framework For Developing An Organisational Reward System Essay Sample For College


Because it offers travelers from all over the world housing, food, and recreational opportunities, the hospitality industry is essential to global trade. In dozens of nations, the InterContinental Hotel Group (IHG) owns and operates a distinguished network of hotels and resorts (Banyeva et al., 2023, p. 74). IHG is renowned for its commitment to providing top-notch service and producing exceptional guest experiences. IHG’s extensive network of recognized hotel brands includes InterContinental Hotels & Resorts, Crowne Plaza Hotels & Resorts, Holiday Inn, and many others. IHG can accommodate the needs of business travelers, vacationers, and conference planners because of its substantial presence in so many different countries. Thanks to its dedication to sustainable business practices, innovation, and the total satisfaction of its consumers, the company is an industry pioneer. Due to the diversity of the regions and cultures represented, IHG’s worldwide workforce poses unique management challenges. The administration of IHG’s human resources depends on developing a framework for pay and benefits that is competitive. More than just paying employees fairly, a well-crafted benefits and compensation package motivates people to fully support the goals of the business (Pasumarti, Kumar, and Singh, 2022, p. 61). This framework will provide a comprehensive pay and benefits scheme created particularly for the firm, taking into account the distinctive elements of the hotel industry and IHG’s global presence. This approach’s goals are to maximise employee engagement and retention and better connect individual performance with company goals.

Performance and reward management framework

Explicit Goals for Performance

Establish measurable objectives and benchmarks for each position. These targets should be SMART (specific, measurable, attainable, relevant, and timely). Spread the word to your staff so that everyone is on the same page and knows what is expected of them.

Performance Measurement and Assessment

Set up a reliable system for monitoring performance using qualitative and quantitative indicators. It may be done via objective metrics connected to key performance indicators (KPIs) specific to each position and frequent reviews, self-evaluations, and peer feedback. Balancing outcome-based performance and performance based on demonstrated behaviours and abilities is essential.

Instruction and Critique of Performance

Encourage regular check-ins and mentoring sessions. Give workers consistent feedback on their performance, highlighting their achievements and suggesting ways they might grow (Yusoff et al., 2020, p. 668). Managers and supervisors should be encouraged to undertake growth-promoting interactions with them. Make sure the comments are helpful, timely, and full of specifics.

Enhancing Skills and Performance

Provide personnel with training and development programs designed to improve their specific areas of weakness. Workshops, seminars, online courses, mentorship, coaching, and even job rotations are all examples of what might be covered by such programs. Development programs should be coordinated with individual and organisational requirements.

Rewards and Recognition

Create a thorough rewards and recognition program to recognise and promote good performance and achieving set goals. Think about offering a combination of monetary and non-monetary incentives, such as bonuses based on performance, pay raises based on merit, promotions, employee of the month/year awards, certificates of success, public acknowledgement, and even extra time off. Make sure that pay is equitable, easy to understand, and based on quantifiable performance.

Career Progression and Opportunities

Give employees a detailed outline of the steps they may take to enhance their careers with the company. Provide staff with chances to lead initiatives, advance in their current roles, or seek out new ones. Help workers choose what they want out of their careers and then give them a hand in getting there.

Continuous Evaluation and Improvement

Regularly assess how well the system is working for managing performance and compensation. Collect input from staff, superiors, and other interested parties to identify problem areas. Assess how the framework influences employee satisfaction, productivity, and the business’s overall health. Changes in the business environment and user input should drive ongoing adjustments to the framework.

Communication and Transparency

Maintain open lines of communication on the organisation’s strategy for measuring and rewarding success. Share with your staff how the framework will help them achieve their goals and the steps they will take to get there. Update them on their efforts and the outcomes regularly. Facilitate frank discussion, and answer any questions or concerns people may have about the framework.

Purpose of the Reward System

Boosting Productivity

A reward system’s main objective is to inspire workers to give their all in pursuing personal and collective purposes. Employees are motivated to go above and beyond in their work and contribute to the success of the company when they are rewarded for their efforts.

Attracting and Retaining Talent

Attracting and retaining top personnel in the hotel sector requires a well-thought-out compensation scheme. IHG can set itself apart as an employer of choice by providing competitive pay and other enticing benefits to recruit and retain talented individuals who can contribute to the company’s development and reputation.

Rewarding Good Performance and Contributions 

Monetary incentives are a visible sign of appreciation for workers’ efforts and results. IHG can foster an atmosphere where workers feel appreciated, inspired, and involved by recognising and rewarding outstanding performance.

Enhancing Morale and Productivity

An all-encompassing rewards program helps boost morale and productivity in the workplace. Employees are more invested in their work, happy in their positions, and loyal to their employers when they believe their efforts are appreciated and rewarded.

Aligning Individual and Organisational Objectives

The incentive structure must encourage actions that contribute to IHG’s long-term goals. IHG can motivate its workforce toward achieving its vision, purpose, and long-term success by connecting compensation with key performance metrics and corporate objectives.

Motivating Employees Rewards are a powerful tool for fostering a culture of success in any firm. By offering incentives for cooperation, customer-centric service, innovation, and sustainability, IHG can help ensure its employees’ actions are consistent with its values.

Boosting Professional and Personal Growth

A well-designed incentive program may help individuals advance in their roles at IHG. Employees may be incentivised to put time and effort into their careers by being given a chance to grow within the company, learn new skills, and take on more responsibility.

Framework: Ethical and legal framework of Rewards in people management

Establishing an ethical and legal framework is of utmost importance when devising a pay and reward system for a multinational organisation operating in the hospitality industry, such as InterContinental Hotel Group (IHG). The framework guarantees that the remunerations extended to the staff are equitable, lucid, and adhere to the relevant statutes and norms. Furthermore, it fosters a culture of integrity, equality, and ethical conduct within the entity. IHG can establish an atmosphere that encourages loyalty, boosts productivity, and adds to the company’s success by instituting a solid compensation and incentive system. In addition, such a system would help IHG keep pace with the rapidly developing hotel business, where fierce competition and client expectations are constantly shifting.

The development of an ethical and legal framework for rewards in people management requires careful consideration of several key elements:

Compliance with Laws and Regulations

Compensation and benefits must comply with all applicable laws governing employment, such as minimum wage, overtime compensation, and discrimination. It is essential to perform frequent evaluations and updates to comply with the ever-evolving legal requirements in the countries where IHG operates.

Equal Pay and Non-Discrimination

Equal compensation for equal labour should be encouraged in the system regardless of a person’s gender, race, age, religion, or any other legally protected feature. Compensation decisions should only be made based on performance on the job and merit.

Transparency and Communication

All workers should be aware of the incentive system and its specifics, such as the metrics used to measure performance, the methods used to assess that performance, and the requirements for receiving various prizes. This openness promotes honesty and fairness among employees.

Performance-Based Rewards

Pay should be based on how well a person or group performs. Objective criteria and performance indicators that align with IHG’s long-term objectives should form the basis of a performance review procedure. Goals for performance should push workers to their limits yet be within reach.

Objective Evaluation

A fair and consistent method must be used to assess performance and decide on compensation. Techniques like annual reviews, yearly objectives, and constant feedback help keep everyone on the same page.

Recognition and Appreciation

In addition to monetary compensation, IHG should also implement non-monetary recognition programs to recognise and appreciate the efforts of its employees. Awards for employee of the month/year, public acknowledgement, and training and development opportunities fall under this category.

Ethical Incentives and Bonuses

Financial rewards and other incentives should encourage desirable conduct and deter those that might damage the company’s brand or breach ethical norms. Employees should be incentivised to uphold IHG’s ethical standards and code of conduct via this approach.

Regular Review and Evaluation

IHG’s values and business goals must align with the ethical and legal framework for incentives. Thus, this framework should be reviewed and evaluated regularly.

Choices and Proposed

Salary and Wage Scale

The core of the incentive program is a competitive base salary. It has to reflect the duties of the position, current market rates, and the level of expertise of the individual being compensated.

Performance-Based Bonuses

Bonuses for exceptional performance might be based on personal, group, or company achievement. Bonuses reward workers for going above and beyond the call of duty. They may be provided on a yearly, quarterly, or project basis.

Incentive Programs

Incentives may be tailored to recognise and reward workers for accomplishing various objectives. IHG, for instance, may provide monetary bonuses to employees who meet or exceed sales quotas, get high marks from guests in surveys, and find creative ways to save costs without sacrificing guest happiness.

Recognition and Appreciation

Positive workplace cultures are primarily the result of recognition programs. Recognition programs at IHG may take several forms, including monthly “Employee of the Month” or “Team Appreciation” awards, a public acknowledgement in newsletters or company-wide announcements, and accomplishment certificates.

Non-Monetary Rewards

Employees may be motivated and engaged just as much by non-monetary benefits. Flexible schedules, vacation days, training courses, mentorship programs, and promotions are just some of the perks that IHG can provide.

Employee Benefits

Competitive compensation and generous benefits packages are essential in today’s labour market. Healthcare coverage, retirement savings plans, paid time off, hotel discounts for workers and their families, and wellness programs are just some of the perks that IHG can provide.

Performance Development and Training

IHG may help its staff members grow professionally through performance development and training initiatives. Workshops, seminars, online learning platforms, and certifications are all examples of initiatives that may help workers advance in their careers.

Permanent Rewards

Employees’ interests may be aligned with IHG’s long-term performance via long-term incentives, including stock options, profit-sharing schemes, and employee share ownership initiatives. Motivating workers helps them see themselves as significant contributors to the company’s success.

Critical Analysis

The reward system selected by InterContinental Hotel Group (IHG) is designed to cater to both national and international requirements. It comprises diverse reward categories and addresses crucial aspects such as talent motivation, attraction and retention, alignment with organisational goals, and employee contentment.

The theoretical frameworks informing reward & performance management

Expectancy Theory

According to expectancy theory, people put in effort when they have reason to believe that doing so will pay off somehow. According to this notion, there has to be a direct connection between effort and compensation (Barba-Sánchez and Atienza-Sahuquillo, 2017). The theory offers a helpful foundation for understanding motivation. Still, it may oversimplify the complexity of human behaviour by ignoring the effect of elements like job satisfaction and intrinsic motivation on productivity and inspiration.

Equity Theory

According to the equity hypothesis, an individual’s perception of fairness in the workplace is informed by comparing their input (effort, talents) and output (rewards) ratios to those of others. It posits that workers are driven by a sense of justice and work harder when they believe their pay is competitive (Bowen, 2018). Although equity theory sheds light on the significance of fairness and perceived fairness in compensation systems, it may not account for contextual elements that impact workers’ views of fairness or reflect individual variances in how employees perceive fairness.

Goal-Setting Theory

According to the goal-setting principle, doing so may boost motivation and performance. According to this idea, having realistic and demanding objectives may help keep you on track and motivated, while receiving regular feedback on your routine can help you get even better results (Locke and Latham, 2019). There is a lot of evidence to support the idea of goal-setting, which is also commonly employed in practice. However, without the proper means of achieving them, too ambitious targets may cause stress and unethical conduct.

Social exchange theory

According to the social exchange idea, workers provide their efforts in return for compensation and employer perks. According to this notion, commitment and motivation are enhanced when there is an equitable and mutually beneficial exchange connection between employers and workers (Cropanzano et al., 2017, 9. 488). However, other variables such as corporate culture or job design may impact motivation in the workplace, and social exchange theory may only partially capture this complexity.

Reinforcement theory

The effects of reinforcements and punishments on behaviour are the primary focus of reinforcement theory. It implies that rewarded actions are more likely to be repeated, whilst penalised ones are less likely to be repeated. According to reinforcement theorists, rewarding good behaviour is crucial in maintaining it (Susanto et al., 2021, p. 8). However, it may fail to account for the possible detrimental consequences of extrinsic incentives on the intrinsic drive.

How will it meet the organisation’s national and multinational needs?


Bonuses, incentives, and recognition initiatives are all part of the reward system. These features are meant to encourage workers by linking their pay to their output as individuals and as a group. IHG can develop a high-performance culture by motivating workers toward excellence and achieving objectives by linking pay with performance measures and targets.

Competence acquisition and maintenance

The proposed compensation plan provides a competitive base salary in addition to performance-based incentives and other perks. This all-encompassing strategy displays IHG’s dedication to competitive pay, career advancement possibilities, and work-life harmony, all of which are important to attracting and retaining top personnel in the very competitive hospitality sector. Long-term incentives, such as stock options or profit-sharing programs, might also entice professionals who are interested in making a name for themselves and building their financial security.

Consistency with company goals

The goal of the compensation structure is to motivate employees to work toward IHG’s long-term goals. Rewards and incentives based on performance are tied to achieving predetermined goals, such as increasing revenue, boosting customer happiness, or improving operational efficiency. The approach incentivises staff to focus and strive towards IHG’s objectives by rewarding actions that contribute to the company’s performance.

Job contentment and dedication

Employee happiness and commitment may be increased via the provision of perks, non-monetary awards, and recognition programs. Giving thanks and acknowledgement to workers has a good effect on morale and productivity (Ali and Anwar, 2021, p. 27). Employees are more invested and committed to their companies when they get non-monetary benefits like flexible work schedules and opportunity for professional growth.

National and multinational adaptability

The selected incentive structure is versatile and extensible, making it suitable for use on a global scale. The fundamental structure can be kept the same throughout all of IHG’s sites, even if certain details, such as base salary and regulatory compliance, may need to be adjusted to meet local rules. While allowing for particular adaptations to meet cultural variations and local norms, this constancy is helpful in creating a coherent company culture.

Sustainable competitive advantage

IHG can maintain its competitive edge in the hotel business by instituting a robust and efficient rewards program. Better customer service, more satisfied guests, and more efficient operations are all results of a motivated and engaged workforce. Because of this, customers are more likely to remain loyal to IHG over time, which is good for business.


The organizational incentive system design of IHG maximizes staff retention, alignment with business goals, and engagement. Important elements are: Performance Objectives: Establish distinct, measurable objectives for each function that align with company objectives. Establish a reliable approach for tracking performance using qualitative and quantitative indicators, including position-specific KPIs. Performance measurement and assessment. Performance Coaching: Through check-ins and coaching, often provide personnel with performance and growth comments. Training individuals to strengthen their deficiencies and satisfy organizational requirements will increase their skills. Create a comprehensive program of rewards and recognition that includes both monetary and non-monetary incentives to recognize and promote good performance and goal achievement. Give employees a clear path to leadership positions, career growth, and new responsibilities. Continuous Evaluation and Improvement: Track staff satisfaction, productivity, and company health to adjust the incentive program in response to customer input and shifting business needs. Transparency and communication: Explain how the business evaluates and rewards success, provides status updates, and responds to inquiries. The IHG incentive program increases output, draws in and keeps employees, recognizes and rewards outstanding work, improves morale and productivity, and harmonizes personal and business objectives. By connecting compensation to performance metrics and corporate goals, the incentive system motivates employees and fosters accomplishment.

IHG is required to follow all applicable employment laws and regulations, advance equal pay and anti-discrimination, uphold system transparency and communication, base rewards on objective evaluation, offer recognition and appreciation, use ethical incentives and bonuses, and routinely review and assess the framework’s adherence to legal and ethical standards. A competitive pay and wage scale, performance-based bonuses, incentive programs, recognition and appreciation campaigns, non-monetary awards, employee benefits, performance development and training, and long-term performance-based permanent rewards are just a few of the alternatives for the reward system. To satisfy the needs of IHG on a national and international scale, employees need to be motivated, acquire and maintain competence, be consistent with company objectives, be committed to their jobs, and be flexible to work in different places while maintaining a core structure. Reward and performance management are influenced by expectation, equality, goal-setting, social exchange, and reinforcement theories. These theories clarify social dynamics, motivation, justice, goal-setting, and the impacts of rewards and punishments.


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