Performance Management and Competitiveness of Four and Five Star Hotels in Nairobi-Kenya

Abstract

This study was based on performance management and competitiveness of four and five star hotels in Nairobi. The study was guided by the knowledge based view, the resource based view and dynamic capabilities theory. The objectives of the study were to determine the extent to which four and five star hotels in Nairobi practice performance management and to establish the influence of performance management on competitiveness of four and five star hotels in Nairobi. The study employed a survey design to conduct the research. Structured questionnaires were used as the data collection instrument. Respondents in this study were heads of department, director/ leadership team members, regional managers or any other key personnel in the hotels. The study concluded that hotels have performance management systems though they are not effective and that performance was monitored on a continuous basis. In addition, the study concluded that there is a strong positive relationship between performance and competitiveness and that performance management influences competitiveness. The study recommended that the management of hotels should emphasize the preparation of personal development plans for employees, employee development should be based on core competences, the hotels should develop mechanisms to collect employee feedback and the management of hotels should invest more in training and development.