Managing Hospitality in Human Resources

Describe general performance appraisal issues and summarize the functions of performance appraisals.

Identify and discuss potential problems with performance appraisals.

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Describe the principal types of rating systems used in appraising employee performance.

Describe commonly used methods of appraising performance.

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

Identify who should evaluate performance, and discuss objectives for programs that train managers and supervisors to conduct performance appraisals.

Discuss how often performance appraisals should be conducted, identify legal issues relating to performance appraisals, and summarize keys to developing an effective employee appraisal system.

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Performance Management

A systematic process by which managers help employees to improve their ability to achieve goals.

 

Performance management includes:

Planning work and setting expectations

Continually monitoring performance

Developing employee skills

Periodically appraising performance in an objective manner

Rewarding good performance

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Employee Appraisal

An objective and comprehensive rating or evaluation of employees.

 

Successful performance appraisal programs include:

Performance goals set by supervisors and employees.

Regular, informal feedback from supervisors.

A formal method to address performance or disciplinary problems.

Regular and formal appraisal.

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

 

Performance Appraisal Issues

Mismanagement can cause resentment and resistance

Managers must realize that both managers and employees are subject to human conditions that affect performance appraisals

Managers should also comment on the positive aspects of an employee’s performance

 

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Functions of Performance Appraisals

Basically fill two kinds of needs in organizations:

improving work performance

making work-related decisions

The purpose is to give employees feedback

reinforce or encourage performance

help employees develop in their careers

Appraisals should be designed with a specific purpose in mind

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Performance Feedback

To be successful, feedback should contain

No surprises

Employee Involvement

Primarily objective data

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Decision Making and Evaluation Tool

Provide an effective way to link rewards and discipline to performance

Provide a basis for compensation, promotion, transfer, grievance, or discipline decisions

Can be used to measure the effectiveness of training

if the employee is evaluated both before and after the training

Can serve as an evaluation for new policies

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Validation of Selection Process

May help establish predictive validity

the extent to which a measurement predicts future behavior, of selection methods

Construct validity

appraisals must measure what they intend to

Content validity

appraisals must measure the entire issue

Consistency

it is important to look for consistency rather than just focusing on one or two particular points in time

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Bias

Leniency errors

occur when managers or interviewers rate an employee too positively

Severity errors

occur when managers or interviewers rate employees too severely

Central tendency errors

occur when managers or interviewers rate all or most employees as average

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

More Possible Bias

Recency errors

when managers base employee ratings primarily on the most recent events or behaviors

Past anchoring errors

when rate employees on the basis of previous ratings

Halo errors

when managers rate employees on the basis of a single positive attribute

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

 

Principal Appraisal Rating Systems

Trait-based ratings

used primarily to assess the personal characteristics of employees

Behavior-based ratings

assess employees on their behaviors rather than on personal characteristics.

Results-based ratings

focused on measuring the extent to which employees accomplish results

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Performance Management Part 2

 

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Ranking methods

Methods of Appraising Performance

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Forced distribution

Methods of Appraising Performance

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Graphic rating scale

Methods of Appraising Performance

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

BARS – Behavioral anchored rating scales

Methods of Appraising Performance

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Narrative essays

Critical incidents

Methods of Appraising Performance

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

MBO – Management by objectives

Methods of Appraising Performance

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Ranking Methods

Simple ranking

rank all employees from best to worst

does not distinguish between different aspects of job responsibilities

Alternative ranking

list each employee on a separate piece of paper and order them from best to last

Paired comparisons

directly compare employees to one another on each job criterion

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Other Methods of Evaluating Performance

Peer evaluations

Staff appraisals of managers

Self-appraisals

Guest appraisals

Multiple rater evaluations

360 degree appraisal

 

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Supervisors as Appraisers

May have little to no contact with the employees he or she evaluates

Immediate supervisors make vastly superior assessments when compared with those of a second-level supervisor

Bosses in a bad mood are more likely to issue negative performance appraisals

Subconscious stereotypes that managers hold regarding race, age, attractiveness, and other attributes directly affect their appraisals

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Frequency

Once or twice per year is norm

Difficult to remember events and behaviors that occurred

Goal should be quarterly

Performance appraisals are most effective when used often

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Content Issues

Performance standards must be based on job analysis

Evaluations based on specific dimensions of job performance

Performance standards should be objective and observable

Ratings should be documented

Validity of appraiser’s ratings should be assessed

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

 

Process Issues

Performance standards must be communicated to and understood by employees

Specific instructions for appraisals should be in writing

More than one appraiser should be used

Appraisers should review results with employees

Have process clear for formal appeals

Managing Hospitality Human Resources

Chapter 7: Evaluating Employee Performance

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