There is a growing body of literature that examines the impact that PERFORMANCE EXCELLENCE has on the expectations and perceptions of customers as preliminary stages for creating customer satisfaction and customer loyalty (ANDERSON et al, 1989, FLYNN et al., 1995, HACKMAN and WAGEMAN, 1995, ARMSTRONG et al., 1997, JOHNSTON, 1999, BECKER and MURRMANN, 1999, COOK and VERMA, 2002, EVANS, 2011). Achieving excellence is the result of high performance throughout the entire organization. The failure in delivering high performance will have negative impacts on both internal and external customers. Therefore, the main purpose of this research project is to introduce the concept of performance excellence in the service sector, discuss the meaning and driving forces of competitiveness through the performance excellence in this sector, and report the findings of building excellence in organizational design, team work as well as leadership within ROTANA Hotel situated in Al Ain City, UAE. The project will be organized in a way that gives a balanced critical review of performance excellence and answer the following questions, in particular its implementation in ROTANA Hotel: 1.What functional roles does performance excellence play in an organization and in particular on the service sector? 2.What are basic dimensions of performance excellence that influence the development of competitive advantage in the service sector? 3.What are some relationships between quality and performance excellence in attaining sustainable competitive advantage? Performance Excellence and Its Functional Roles
Performance excellence can be defined as "an integrated approach to organizational performance management that result in delivery of ever-improving value to customers and stakeholders; improvement of overall organizational effectiveness and capabilities; and organizational personal learning" (EVANS, 2011, p. 6). This implies that all managers should give more interests and attention to implement it. The extracted information from the previous process can help executive managers to identify opportunities and threats as a necessary step to adapt successful strategies. In this context, ROTANA Hotel and all other organizations- large and small, manufacturing and service, profit and not-for-profit can increasingly benefit by integrating this concept in their organizational cultures. While products can be copied, customer service takes years to develop and sustain. We should notice that "customer value almost play a vital role in making purchase decisions. Moreover, the customers' assessment of value is changeable over time and in different situations. Due to the complex nature of customer value, attracting new customers is so difficult and expensive for marketers. This also explains why current customers are so important to be kept" (SHAHWAN and ELMALT, 2008, p.9). ROTANA Hotel in Al Ain is working in an increasingly complex environment where the environmental changes provide managers with opportunities and threats. Facing such competitive threats, senior managers and their subordinates in ROTANA are in a need to provide the highest quality service with innovative products that exceed the customer expectations (creating positive customer value ). EVANS (2011, p. 63) describes the expected benefits when excellence performance approach is integrated with organizational performance management as follows: •Delivery of ever-improving value to customers.
•Improvement of overall company performance and capabilities •Increasing organizational and personal learning
Accordingly, the critical criteria of performance excellence that have great impact on the firm's strategy, productivity and higher profitability are leadership, strategic planning, customer focus, knowledge management, workforce focus, process management and evaluating the organizational performance....