Cox's Bazar International University

Department of Hospitality and Tourism Management

Assignment Topic:

Methods of Performance Appraisal in Hotel

Submitted To: Rajidul Hoque

Chairman & Assistant Professor
Faculty of Business Administration
Cox's Bazar International University

Submitted By: Sayed Imran

ID: 210150500132
Batch :15th
Department of Hospitality and Tourism Management

Date of submission: June 30, 2022

What is Performance Appraisal?
The term performance appraisal refers to the regular review of an employee's job performance and
overall contribution to a company. Also known as an annual review, performance review or
evaluation, or employee appraisal, a performance appraisal evaluates an employee’s skills,
achievements, and growth, or lack thereof. A performance appraisal is a regular review of an
employee's job performance and contribution to a company.
Companies use performance appraisals to determine which employees have contributed the most
to the company’s growth, review progress, and reward high-achieving workers. Although there are
many different kinds of performance reviews, the most common is a top-down review in which a
manager reviews their direct report. Employees who believe the evaluation's construction isn't
reflective of their company's culture may feel dissatisfied with the appraisal process. Performance
appraisals are also called annual reviews, performance reviews or evaluations, or employee
appraisals Companies use performance appraisals to give employees big-picture feedback on their
work and to justify pay increases and bonuses, as well as termination decisions. They can be
conducted at any given time but tend to be annual, semi-annual, or quarterly.
How Performance Appraisals Work
Performance appraisals are usually designed by human resources (HR) departments as a way for
employees to develop in their careers. They provide individuals with feedback on their job
performance. It ensures that employees are managing and meeting the goals expected of them,
giving them guidance on how to reach them if they fall short.
Because companies have a limited pool of funds from which to award incentives, such as raises
and bonuses, performance appraisals help determine how to allocate those funds. They provide a
way for companies to determine which employees have contributed the most to the company’s
growth so companies can reward their top-performing employees accordingly. Performance
appraisals also help employees and their managers create a plan for employee development
through additional training and increased responsibilities, as well as to identify ways the employee
can improve and move forward in their career. Ideally, the performance appraisal is not the only
time during the year that managers and employees communicate about the employee’s
contributions. More frequent conversations help keep everyone on the same page, develop stronger
relationships between employees and managers, and make annual reviews less stressful.
Types of Performance Appraisals
Most performance appraisals are top-down, meaning supervisors evaluate their staff with no input
from the subject. But there are other types:
Self-assessment: Individuals rate their job performance and behavior.
Peer assessment: An individual's workgroup or coworkers rate their performance.
360-degree feedback assessment: Includes input from an individual, supervisor, and peers.
Negotiated appraisal: A newer trend that utilizes a mediator and attempts to moderate the
adversarial nature of performance evaluations by allowing the subject to present first. Also focuses
on what the individual is doing right before any criticism is given. This structure tends to be useful
during conflicts between subordinates and supervisors.
Criticism of Performance Appraisals
Performance appraisals are designed to motivate employees to reach and/or exceed their goals.
But they do come with a lot of criticism.
An issue with performance appraisals is that differentiating individual and organizational
performance can be difficult. If the evaluation's construction doesn't reflect the culture of a
company or organization, it can be detrimental. Employees report general dissatisfaction with their
performance appraisal processes. Other potential issues include:
Distrust of the appraisal can lead to issues between subordinates and supervisors or a situation in
which employees merely tailor their input to please their employer. Performance appraisals can
lead to the adoption of unreasonable goals that demoralize workers or incentivize them to engage
in unethical practices. Some labor experts believe that the use of performance appraisals has led
to lower use of merit- and performance-based compensation. Performance appraisals may lead to
unfair evaluations in which employees are judged not by their accomplishments but by their
likability. They can also lead to managers giving underperforming staff a good evaluation to avoid
souring their relationship.
Performance appraisals that work well in one culture or job function may not be useful in another.
Performance Appraisals Used for.
Performance appraisals are used to review the job performance of an employee over some period
of time. These reviews are used to highlight both strengths and weaknesses in order to improve
future performance.
When Should a Performance Appraisal Take Place?
Performance management is an ongoing process. Throughout the year, managers are encouraged
to engage with employees to establish goals, note progress, and provide feedback. Formal reviews
or appraisals often take place on a yearly or quarterly basis.
360-Degree Appraisal
Standard performance reviews include an employee and their manager or supervisor. The 360-
degree version also solicits input from the employee's colleagues or coworkers.
The purpose of a performance appraisal
The purpose of a performance appraisal is two-fold: It helps the organization to determine the
value and productivity that employees contribute, and it also helps employees to develop in their
own roles.
Benefit for organization
Employee assessments can make a difference in the performance of an organization. They provide
insight into how employees are contributing and enable organizations to:
• Identify where management can improve working conditions in order to increase
productivity and work quality.
• Address behavioral issues before they impact departmental productivity.
• Encourage employees to contribute more by recognizing their talents and skills
• Support employees in skill and career development
• Improve strategic decision-making in situations that require layoffs, succession planning,
or filling open roles internally
Benefit for employee
Performance appraisals are meant to provide a positive outcome for employees. The insights
gained from assessing and discussing an employee’s performance can help:

• Recognize and acknowledge the achievements and contributions made by an employee.

• Recognize the opportunity for promotion or bonus.
• Identify and support the need for additional training or education to continue career
development.
• Determine the specific areas where skills can be improved.
• Motivate an employee and help them feel involved and invested in their career
development.
• Open discussion to an employee’s long-term goals.
How to organize a performance appraisal process
Conducting a performance review with an employee requires skill and training on the part of the
appraiser. The negative perception that is often associated with the performance appraisal is due
in part to a feeling of being criticized during the process. A performance appraisal is meant to be
the complete opposite. Often, the culprit is in the way the appraisal is conducted via the use of
language. The way the sender of a message uses language determines how the other person
interprets the message once received. This can include tone of voice, choice of words, or even
body language. Because a performance appraisal is meant to provide constructive feedback, it is
crucial that appropriate language and behavior are used in the process. Human Resources (HR) are
the support system for managers and supervisors to be trained in tactfully handling the appraisal
process.
The performance appraisal process:
The assessment process is usually facilitated by Human Resources, who assist managers and
supervisors in conducting the individual appraisals within their departments.
• An assessment method should be established.
• Required competencies and job expectations need to be drafted for each employee.
• Individual appraisals on employee performance are conducted.
• A one-on-one interview is scheduled between the manager and employee to discuss the
review.
• Future goals should be discussed between employee and manager.
• A signed-off version of the performance review is archived.
• Appraisal information is utilized by human resources for appropriate organizational
purposes, such as reporting, promotions, bonuses or succession planning.

Methods of Performance Appraisal? Describe

Six modern performance appraisal methods
With the right performance appraisal method, organizations can enhance employee performance
within the organization. A good employee performance review method can make the whole
experience effective and rewarding.
1. Management by Objectives (MBO)
Management by objectives (MBO) is the appraisal method where managers and employees
together identify, plan, organize, and communicate objectives to focus on during a specific
appraisal period. After setting clear goals, managers and subordinates periodically discuss the
progress made to control and debate on the feasibility of achieving those set objectives.
This performance appraisal method is used to match the overarching organizational goals with
objectives of employees effectively while validating objectives using the SMART method to see
if the set objective is specific, measurable, achievable, realistic, and time-sensitive.
At the end of the review period (quarterly, half-yearly, or annual), employees are judged by their
results. Success is rewarded with promotion and a salary hike whereas failure is dealt with transfer
or further training. This process usually lays more stress on tangible goals and intangible aspects
like interpersonal skills, commitment, etc. are often brushed under the rug.
Management by Objectives Appraisal Method
Incorporating MBO into your performance management process
To ensure success, the MBO process needs to be embedded in the organizational-wide goal setting
and appraisal process. By incorporating MBO into the performance management process,
businesses can improve employee’s commitment, amplify chances for goal accomplishment, and
enable employees to think futuristically.
Measuring the quantitative and qualitative output of senior management like managers, directors,
and executive (business of any size)
Common reason for failure:
Incomplete MBO program, inadequate corporate objectives, lack of top management involvement
Steps to implement a successful MBO program:
✓ Every manager must have 5-10 goals expressed in specific, measurable terms
✓ Manager can propose their goals in writing, which will be finalized after review
✓ Each goal needs to include a description and a clear plan (list of tasks) to accomplish it
✓ Determine how progress will be measured and how frequently (minimum quarterly)
✓ List down corrective actions that will be taken if progress is not in accordance with plans
Ensure that goals at each level are related to the organizational objectives and levels above/below
2. 360-Degree Feedback
360-degree feedback is a multidimensional performance appraisal method that evaluates an
employee using feedback collected from the employee’s circle of influence namely managers,
peers, customers, and direct reports. This method will not only eliminate bias in performance
reviews but also offer a clear understanding of an individual’s competence.
This appraisal method has five integral components like:
1. Self-appraisals
Self-appraisals offer employees a chance to look back at their performance and understand their
strengths and weaknesses. However, if self-appraisals are performed without structured forms or
formal procedures, it can become lenient, fickle, and biased.
2. Managerial reviews
Performance reviews done by managers are a part of the traditional and basic form of appraisals.
These reviews must include individual employee ratings awarded by supervisors as well as the
evaluation of a team or program done by senior managers.
3. Peer reviews
As hierarchies move out of the organizational picture, coworkers get a unique perspective on the
employee’s performance making them the most relevant evaluator. These reviews help determine
an employee’s ability to work well with the team, take up initiatives, and be a reliable contributor.
However, friendship or animosity between peers may end up distorting the final evaluation results.
4. Subordinates Appraising manager (SAM)
This upward appraisal component of the 360-degree feedback is a delicate and significant step.
Reportees tend to have the most unique perspective from a managerial point of view. However,
reluctance or fear of retribution can skew appraisal results.
5. Customer or client reviews
The client component of this phase can include either internal customers such as users of product
within the organization or external customers who are not a part of the company but interact with
this specific employee on a regular basis. Customer reviews can evaluate the output of an employee
better, however, these external users often do not see the impact of processes or policies on an
employee’s output.
Advantages of using 360-degree feedback:
• Increase the individual’s awareness of how they perform and the impact it has on other
stakeholders
• Serve as a key to initiate coaching, counselling, and career development activities
• Encourage employees to invest in self-development and embrace change management
• Integrate performance feedback with work culture and promote engagement
• Ideal for:
Private sector organizations than public sector organizations as peer reviews at public sector
organizations are more lenient.
Common reason for failure:
Leniency in review, cultural differences, competitiveness, ineffective planning, and misguided
feedback
Top private organizations like RBS, Sainsbury’s, and G4S are using 360-degree, multi-rater
performance feedback to measure employee performance.
3. Assessment Centre Method
The concept of assessment center was introduced way back in 1930 by the German Army but it
has been polished and tailored to fit today’s environment. The assessment center method enables
employees to get a clear picture of how others observe them and the impact it has on their
performance. The main advantage of this method is that it will not only assess the existing
performance of an individual but also predict future job performance.
Assessment centre appraisal method
During the assessment, employees are asked to take part in social-simulation exercises like in-
basket exercises, informal discussions, fact-finding exercises, decision-making problems, role-
play, and other exercises that ensure success in a role. The major drawback of this approach is that
it is a time and cost intensive process that is difficult to manage.
Advantages of the assessment centre method:
Enhance a participant’s knowledge, boost his/her thought process, and improve employee
efficiency Can be tailored to fit different roles, competencies, and business needs Offer an insight
of the employee’s personality (ethics, tolerance, problem-solving skill, introversion/extroversion,
adaptability, etc.)
Ideal for:
Manufacturing organizations, service-based companies, educational institutions, and consulting
firms to identify future organizational leaders and managers.
Guidelines to implement assessment centre practice:
✓ Use job analysis to determine the components of effective performance
✓ Identify performance metrics that can be measured using this assessment center
✓ Classify meaningful and relevant candidate behavior in the assessment process
✓ Find assessment techniques that can ideally elicit ideal behavioral information
✓ Spot assessors and assessee’s excluding immediate supervisors
✓ Provide thorough training to assessors and reviewers
✓ Maintain a system of performance records for each candidate
✓ Review records and reward employee or provide training accordingly

Microsoft, Philips, and several other organizations use the assessment centre practice to identify
future leaders in their workforce.
4. Behaviorally Anchored Rating Scale (BARS)
Behaviorally anchored rating scales (BARS) bring out both the qualitative and quantitative
benefits in a performance appraisal process. BARS compares employee performance with specific
behavioral examples that are anchored to numerical ratings. Each performance level on a BAR
scale is anchored by multiple BARS statements which describe common behaviors that an
employee routinely exhibits. These statements act as a yardstick to measure an individual’s
performance against predetermined standards that are applicable to their role and job level. The
first step in BARS creation is generation of critical incidents that depict typical workplace
behavior. The next step is editing these critical incidents into a common format and removing any
redundancy. After normalization, the critical instances are randomized and assessed for
effectiveness. Remaining critical incidents are used to create BARS and evaluate employee
performance.
Advantages of using BARS:
• Enjoy clear standards, improved feedback, accurate performance analysis, and consistent
evaluation
• Eliminate construct-irrelevant variance in performance appraisal ratings by emphasis more
on specific, concrete, and observable behaviors
• Decrease any chance for bias and ensure fairness throughout the appraisal process

Common drawbacks of BARS:

✓ High chance for subjectivity in evaluations
 ✓ Hard to make compensation and promotion decisions
✓ Time-consuming to create and implement
✓ Demands more from managers and senior executives
✓ 5. Psychological Appraisals
Psychological appraisals come in handy to determine the hidden potential of employees. This
method focuses on analyzing an employee’s future performance rather than their past work. These
appraisals are used to analyze seven major components of an employee’s performance such as
interpersonal skills, cognitive abilities, intellectual traits, leadership skills, personality traits,
emotional quotient, and other related skills.
Qualified psychologists conduct a variety of tests (in-depth interviews, psychological tests,
discussions, and more) to assess an employee effectively. However, it is a rather slow and complex
process and the quality of results is highly dependent on the psychologist who administers the
procedure.
Advantages of psychological appraisals:
Extract measurable, objective data about not just an employee’s performance but also potential
Can be deployed easily when compared with other performance appraisal methods Offer
introverted or shy employees a platform to shine and prove their potential
Large enterprises can use psychological appraisals for an array of reasons including development
of leadership pipeline, team building, conflict resolutions, and more.
Common reasons for failure:
Absence of proper training, lack of trained professionals to administer reviews, and nervousness
or anxiety of candidates can skew results. Ford motors, Exxon Mobil, Procter & Gamble use
psychological appraisals to test the personality and performance of their employees.
6. Human-Resource (Cost) Accounting Method
Human resource (cost) accounting method analyses an employee’s performance through the
monetary benefits he/she yields to the company. It is obtained by comparing the cost of retaining
an employee (cost to company) and the monetary benefits (contributions) an organization has
ascertained from that specific employee When an employee’s performance is evaluated based on
cost accounting methods, factors like unit-wise average service value, quality, overhead cost,
interpersonal relationships, and more are taken into account. Its high-dependency on the cost and
benefit analysis and the memory power of the reviewer is the drawback of human resources
accounting method.
Advantages of the human cost accounting method:
Effectively measure the cost and value that an employee brings to the organization
Help identify the financial implications that an employee’s performance has on the organization’s
bottom line Startups and small businesses where the performance of one employee can make or
break the organization’s success.
Implementation of human resource cost accounting method:
Identify the gap between the market and the current package of an employee. Determine the
monetary and non-monetary value that an employee brings to the table. List down the things that
an employee achieved in the review period (increase in the subscriber count, improvement in
revenue, number of new deals won, etc.,).A future-focused employee performance appraisal
method Choosing the right performance appraisal method is more critical than ever since it reflects
what you think of your employees and how much you care about employee morale. Once you’ve
found an ideal performance review method for your needs, the next step is implementing it
properly to eliminate critical performance gaps and address pressing issues that impact ROI.

Performance Appraisal in Hotel The Cox Today.

Performance appraisal is variously named as a performance review, performance
evaluation, career development discussion, or employee appraisal. It is a method by which the job
performance of an employee is documented and evaluated. It is a systematic and periodic process
that assesses an individual employee's job performance and productivity in relation to certain pre-
established criteria and organizational objectives. Performance appraisal is the process of
measuring quantitatively and qualitatively an employees' past or present performance against the
background of his expected role performance, the background of his work environment, and about
his future potential for an organization.
A process of evaluating an employee s performance on the job in terms of its requirement.
Appraisal Procedure Involves:
1. Setting work standards
2. Assessing the employee s actual performance relative to these standards
3. Providing feedback to the employee with the aim of motivating that person to eliminate
performance deficiencies or to continue to perform above par.
4. The main 5 objectives of Performance appraisal are:
To assist management in promotion, demotion, and transfer problems.
To improve job performance.
To increase analytical abilities of supervisors.
To reveal areas where training is needed.
To prevent grievances.
4. Hotel the Cox Today is located in the heart of the Coxs bazar district. The hotel features spacious
luxury rooms, multicuisine restaurant, garden café, banquet & conference facilities perfect for
business or leisure.
5. Hotel the Cox Today offers many fine services and amenities. Guests will enjoy room service,
use of the hotel's 24-hour,24 Hour Front Desk, Meeting Facilities, Banquet Facilities, Business
Center Facilities, Laundry/Valet Service, Tour Desk/Concierge, Air-Conditioned Rooms, AM/FM
Clock/Radio in Rooms, Satellite Television, Wi-Fi Hotspot Wireless Broadband Internet
Connectivity. Valet parking is also available. Accessibility: Hotel the Cox Today is located 8 kms.
from Airport, 1.5 kms. from Railway Station, 1 km. from Bus Stand
6. To find out different appraisal systems followed by hotels. To find out who appraises the
employees. To analyze and study the benefits of the appraisal systems. To analyze the
shortcomings of the appraisal systems. To identify the criteria and measures adopted to evaluate
employee performance. To find out the level of effectiveness of 360-degree feedbacks.
7.The literature review section examines the importance of search studies, company data or
industry reports that serve as a foundation for the setup of study. The research dimension of the
related literature and the relevant information begins from an explanatory perspective, approaching
towards specific studies which do relate to the judge the limitations and informational gaps in data
from the secondary sources. This analysis may reveal conclusions from past studies to realize the
reliability of the secondary sources and their credibility. This in turn enables one to rely on a
comprehensive review for the study.
8. There was lack of time to conduct the in-depth research. There were various undue contingencies
during the research. Further, there was lack of sufficient knowledge provided from both ends to
conduct the proper research.
Conclusions and recommendations:
Peter Drucker, remarked that an organization is like a tune. It is not constituted by
individual sounds but by their synthesis. The success of an organization, therefore, depends on its
ability to accurately measure the performance of its members and use it objectively to optimize
them as vital resources. Performance appraisal is a vital process by which an employee's
contribution to the organization during a specified period of time is assessed. Performance
appraisal is a tool that helps management to better know the quality of its human resource and how
good they convert their qualities into performance. Performance appraisal, when used correctly
can provide management with valuable information that may provide basis for important decisions.
However, in the hands of an incompetent manager this tool can be a devastating weapon, and all
potential benefits may turn in reverse direction. Hotel industry business is fragile in nature.
Attracting the tourists is highly expensive and a cumbersome job, but losing them is extremely
easy. Hotel industry is a labor-intensive industry and human resources play a crucial role in guest-
customer satisfaction. No matter how much investment has been made on physical facilities, like
building, equipment, furniture, etc., to provide the tourist with a comfortable stay, poor service
may wipe out all the positive impressions created by the physical facilities. performance appraisal
has been explored and its application at the hospitality industry in the results of the study indicate
that the importance of human resources and the role \of performance appraisals in hospitality
organizations needs to be better appreciated.