Performance Management and Appraisal Chapter 9 Performance Management and Appraisal

Performance Management 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

Performance Management Appraisal (employee) – 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.

Performance Management Benefits of a good performance appraisal system: Recognition of outstanding performance Identification of necessary improvements Clarification of work standards Opportunity to analyze and redesign jobs Identification of specific training and development needs Determine Professional Development Activities

Performance Management Benefits of a good performance appraisal system: Validation of screening and selection processes Opportunity for employee feedback and suggestions Customers (internal) – Employees of the hospitality operation. Customers (external) – Guests served by the hospitality operation. Objective Method to Identify Candidates for Pay Increases and Promotion

Performance Management Primary roles of HR in performance appraisal: Advocate for effective appraisal Coordinate process planning & implementation Evaluate Alternative Processes Assist with Selection Decision Develop Policy, Procedures, Evaluation Forms, and Other Documents Communicate with Affected Personnel Perform Follow-up Tasks Manage Personnel Records Determine legal requirements

Performance Management Common Performance Appraisal Methods Absolute standard – Measuring an employee’s performance against an established standard. Relative standard – Measuring one employee’s performance against another employee’s performance. Targeted outcome – Measuring the extent to which specified goals were achieved. Management by objectives – A plan developed by an employee and his/her supervisor that defines goals, tactics to achieve them, and corrective actions, if needed.

Performance Management Other Performance Appraisal Methods and Issues Peer evaluation – An appraisal system that utilizes the opinions of co-workers to evaluate an employee’s performance. Upward assessments – An appraisal system that utilizes input from those staff members who are directly supervised by the staff member being evaluated. 360◦ appraisal – A method of performance appraisal that utilizes input from supervisors, peers, subordinates, and even guests and others to provide an comprehensive evaluation of a staff member’s performance.

Performance Management Other Performance Appraisal Methods and Issues Reliability – The ability of a measuring tool to yield consistent results. Validity– The ability of a measuring to evaluate what it is supposed to evaluate. Halo effect – The tendency to let the positive assess- ment of one individual trait influence the evaluation of other, non-related traits. Pitchfork effect – The tendency to let the negative assessment of one individual trait influence the evaluation of other, non-related traits.

Progressive Discipline Discipline (management action) – Any effort designed to influence an employee’s behavior. Disciplined (work force description) – The situation in which employees conduct themselves according to accepted rules and standards of conduct.

Progressive Discipline Discipline (positive) – Any action designed to encourage proper behavior. Discipline (negative) – Any action designed to correct undesirable employee behavior. Progressive discipline: A program designed to modify employee behavior through a series of increasingly severe punishments for unacceptable behavior.

Progressive Discipline Common 4-step progressive discipline program: 1. Documented Oral Warning – The first step in a progressive discipline process: a written record is made of an oral reprimand given to an employee. Reprimand – A formal criticism or censure by a person with authority to do so. 2. Written Warning – The second step in a progressive discipline process that alerts an employee that further inappropriate behavior will lead to suspension.

Progressive Discipline Common 4-step progressive discipline program: Suspension – The third step in a progressive discipline process: a period off from work resulting from on-going inappropriate behavior. 4. Dismissal – An employer initiated separation of employment.

Behavior Improvement Tactics Reinforcement of Appropriate Behavior Elimination of Unacceptable Behavior Counseling (employee) – A process to assist employees in overcoming performance problems.

Employee Separation Turnover: The replacement of one employee by another. Voluntary (separation) – An employee-initiated termination of employment. Involuntary (separation) – An employer-initiated termination of employment. Exit Interview – A meeting between a representative of the organization and a departing employee.

Employee Separation Exceptions to the at-will employment doctrine: Contractual Relationship Implied Contractual Relationship Public Policy Violation Statutory Considerations Breach of Good Faith Good Faith – The honest intent to act without taking an unfair advantage over another person.

Legal Considerations of Performance Management and Appraisal Title VII of the Civil Rights Act Protected Class – A group of workers with a characteristic specifically identified by an employment-related law or ordinance as protected. Equal Pay Act Americans with Disabilities Act Age Discrimination in Employment Act