Within the hospitality industry, the hotel sector’s vulnerabilities are multi-faceted. Hotel management suffers various disruptive events globally in the like of natural disasters, terrorism, criminal activities, employee errors, negligence and accidents. Dynamism and disruptions are inevitable for those operating hotel businesses. The hospitality industry thus needs to be very sensitive to these disruptions and its resilience is key to its development. This study sought to determine the role of compensation and performance appraisal in organization resilience in star rated hotels in Kenya. Embedded mixed research design was adopted to study HR managers and tourism bodies of star rated hotels obtained through stratification sampling. Findings proved a strong positive and highly significant effect between, compensation and performance appraisal on organizational resilience. The paper concludes that the level in which employees are compensated have positive and significant influence in development of organizational resilience in star rated hotels in Nairobi County. In addition, performance appraisal has been found to influence positively and significantly in the building of an organizational resilience. Fair and objective performance appraisal systems are in favor of many individuals working towards organizational resilience. The paper recommend that the financiers of the hotels need to ensure pay is tied to performance, ensure they pay as per the market to avoid employee turnover and also pay on time. Hotels need to embrace a fair and objective performance appraisal systems that should be well defined. Firms need to always give feedback after every evaluation to know areas that are weak points and what can be done in crisis times. Further, performance appraisal need to be tied with a clear reward system to motivate employees.
Keywords: Compensation, Performance Appraisal, Organization Resilience & Hotels