SH is a five star hotel. The company applies a budgetary style where main emphasis in performance evaluation is manager’s success in meeting budget targets, with no consideration for other aspects of performance that are not targeted in the budget. A manager is criticised for poor results compared to the budget, for example if his actual spending exceeds the budget limit.
Critic this budgetary system
The internet is a useful tool that will be able to help you search for the strengths and weaknesses of a performance evaluation system where an over-emphasis on meeting the budget is rife.
If you don't work this out for yourself, when you grow up to be a manager in commerce or industry, you won't have a clue what to do or how to manage people.