1 Performance Management and Appraisal Chapter 9

2 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

3 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.

4 Performance Management  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 Benefits of a good performance appraisal system:

5 Performance Management  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 Benefits of a good performance appraisal system:

6 Performance Management 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 Primary roles of HR in performance appraisal:

7 Performance Management 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. Common Performance Appraisal Methods

8 Performance Management 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. Other Performance Appraisal Methods and Issues

9 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.

10 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.

11 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.

12 Progressive Discipline 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. Common 4-step progressive discipline program:

13 Progressive Discipline 3.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. Common 4-step progressive discipline program:

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

15 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.

16 Employee Separation  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. Exceptions to the at-will employment doctrine:

17 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