1. Performance Management and Appraisal
Chapter 9
Performance Management and Appraisal

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
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

5. 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

6. 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

7. 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.

8. 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.

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
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.

13. 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.

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 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.

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