performance measurement

The impact of performance measurement in a service factory – How performance measurement impacted employee behaviour and performance of the housekeeping operations of a British luxury hotel

Joachim Sandt,, International University of Applied Sciences Bad Honnef – Bonn, Germany
Christoph Hoffmann, (Park Plaza Westminster Bridge, London, UK)

Keywords: Behavioural impact, hotel operations, housekeeping, management controls systems as a package, performance measurement.


In hotel operations, especially housekeeping, financial and non-financial performance measurement and management to impact employee behaviour to implement the organization’s goals is often not systematically and formally applied. The case of the Park Plaza Westminster Bridge hotel is used to show how the implementation of performance measurement and management systems impacted the behaviour of the employees. With more than 1,000 rooms and a high occupancy rate, housekeeping operations are repetitive and high volume processes. They could be viewed to be a service factory. The management control framework by K.A. Merchant and Wim Van der Stede will be used to describe performance measurement and management control systems before and after the implementation. Formerly, housekeeping operations in the case hotel relied primarily on informal action control and personnel control. Then, formal non-financial results control and formal action controls had been implemented. The new management control package resulted in significant changes in employee behaviour and – thus – in the performance of department.

Download the paper

The conference paper can be downloaded direclty on

The paper is published as a conference / working paper on the website of the International University of Applied Sciences Bad Honnef-Bonn.

A pdf-copy of the conference presentation can be downloaded directly on

In case you reference / use the paper, please inform the authors via email:


Thanks to the team of the Park Plaza Westminster Bridge hotel for allowing the research to be carried out.

Please see the list below for the supporters who made it possible to attend the PMA conference in Cambridge, 11 – 13 July 2012. Your financial contribution made it possible for to pay for the conference fee, accommodation and transport.

Sophie Kinloch,

Bill Quiseng,

Bob Kimball,

Mariclaire La Forte,

Lynn Webster,

Agnes Gilbert & Mercura Industries,

Hilary Cooke,

Roberto Abbati,

Graham Wallis,

Kim Svedberg,

Prabhat Shukla CHHE,

Park Plaza Westminster Bridge,

Jose Ruiz, Chartered MCIPD,