STRATEGIC HUMAN RESOURCE MANAGEMENT

Prof. Davee Jean I. Maligaya

THE WINGS HOTEL CASE

Worksheet for Scenario 4: Group Activity

SCENARIO 4: EMPLOYEE APPRAISAL

A performance appraisal system is a tool that helps managers evaluate performance and monitor
employees following the work standards and company guidelines. It directs employees’ behavior toward
organizational goals by giving them feedback about their performance from several sources as
appropriate including their managers, peers, direct reports, and internal or external customers. The
evaluation result let them know their level of performance and what the expected behaviors are.

When a performance management system is used for decision-making, the appraisal information is used
as a basis for pay increases, promotions, transfers, assignments, reductions in force or other
administrative HR actions. When a performance management system is used for development, the
appraisal information is used to guide the training, job experiences, mentoring and other developmental
activities that employees will engage in to develop their capabilities.

Employee Appraisal 2023 Policy Statements

The Wings Hotel, in its mission to bring its people to new heights and put into action its strategies
as the company engages in human resource management activities that enable their employees
to recognize their roles and responsibilities in the workplace. In addition, The Wings Hotel Human
Resources Management Unit, alongside those that comprise the group of the employees’
assessors, must be built around the following values, upon employee performance appraisal:

A. Context-Oriented.
Rater and ratee orientations by the HRM management on guidelines and policies for: post-
evaluation, during evaluation and after evaluation.

B. Objectiveness.
All the statements and information gathered during the evaluation process, including
conversation exchanges between assessor and assessed must be treated as confidential and must
be for the eyes of management and assessed employee only. HRM reports must solely be based
on the implications on the evaluation results and not on opinions.

C. Mutuality.
The Wings Hotel values transparency, collaboration and respect as important elements in
building long-lasting relationships with its people. Thus, employees are given a space for
justifications and a chance for dialogue to further explain (i.e., personal issues resulting from
drastic and negative change of work performance), whilst observing the aforementioned values
in the HRM evaluation system.
Defining the performance outcomes of The Wings Hotel

Let us apply a business balance scorecard or BS to define the expected performance outcomes or
organizational goals of The Wings Hotel. BS is a set of measures or matrix that gives top managers a fast
but comprehensive view of the business focusing on four critical elements: (1) Financial, (2) Customer, (3)
Internal Business, and (4) Innovation and Learning Perspectives.
(Source: Reference: https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2)

A. The Wings Hotel Business Performance Balance Scorecard

The Balance Scorecard of The Wings hotel stated its unique goals based on the four critical elements.
The measures are the numerical basis (data) to determine if The Wings Hotel is achieving its goals.

Example: Goal: Succeed by How: Quarterly Sales - Ph5,940,000 for 2022 (1980,000 monthly sales X 3
months). Then compare with 2023 quarterly revenue to determine if the business achieved its goal.

NOTE: The Wings Hotel business scorecard framework is a guide, you do not have to provide data
in the measures. Use the framework in your case report analysis in the next page.

Financial Perspective Customer Perspective

Goals Measures (data) Goals Measures (data)
Survive Cash flow As a responsive On-time delivery (defined by
supplier customer based on survey)
Succeed Quarterly sales growth and
operation income for hotel and As a preferred - Ranking in Agoda and other
restaurant Supplier hotel booking apps
- Number of customer direct
Prosper Increase market share in Cebu bookings.
City
Customer Number of corporate accounts
partnership made (regular bookings under
corporate account)

Internal Business Perspective Innovation and Learning Perspective

Goals Measures (data) Goals Measures (data)
Technology - Use of online booking Technology Time to develop next
capability platforms (Ex. Agoda) leadership generation ( company intranet
- Use of Wing’s hotel website or Learning Management
booking/payments/check- System)
out Service learning
Process time to service delivery
Service Response time to bookings and Time to market
excellence hotel services New product introduction
(sales, promo, etc.)
Design Standardized workflow system introduction vs. competition
operation
 Presentation and/or Case Report Requirements

A. Analyzing the Evaluation Results

Based on the Scenario Worksheet #3 - Training and Development, the needs analysis (Annex B) scores of
Helen, Hotel Administration Manager suggest that she scored poorly in the following areas: (1) Business
Case, (2) Leadership, (3) Adaptability.

Analyze and develop recommendations for each by following the gap analysis framework below.
Research on potential causes or base it on your point of view since there is no actual data provided in
the case

a) Business Case Competency Objective: To create competencies in the areas of expense and
income tracking, business planning and formation, support viability and sustainability of
products and services

BUSINESS CASE SKILLS (Score: 1.4) 5 4 3 2 1 NA

36 Understanding the company’s products and services *
37 Understanding the costs and values of different service units. *
38 Viewing problems from an entrepreneurial perspective *
39 Understanding how to monitor spending, expenses and budgets *
40 Understanding how to develop strategic goals for the unit. *

Analyzing Evaluation Results and Finding the Gap Framework

What is – Current Situation What should be - Recommendations

Competencies - identify new standards of
- Areas that are strong Gap improvements or best practices
- Areas that are moderate methods in the industry.
- Areas that are weak - new standards should achieve the
competency’s goal

Causes:
List causes of lack in competencies in this area

Negative Impact on the Balance Scorecard:

1. Financial Perspective: Succeed
2. Customer: As a responsive supplier
3. Internal Business: Service excellence
4. Innovation & Learning: Service learning
 b) Leadership Competency Objective: To be able to utilize effective strategies to facilitate
organizational change initiatives and overcome resistance to change by employees.

LEADERSHIP (Score: 2.0) 5 4 3 2 1 NA

46 Understanding how to communicate the company’s vision, mission and goals *
to generate enthusiasm and commitment.
47 Knowing how to articulate the unit’s strategy and objectives. *
48 Understanding how to influence, inspire and motivate others. *
48 Understanding how to take responsibility and be accountable for actions and *
decisions.
50 Knowing how to instill accountability within his/her team. *

c) Adaptability Competency Objective: To stay focused on organizational goals but can easily adjust to
meet new challenges as they arise and not be halted by sudden change.

ADAPTABILITY (Score: 2.4) 5 4 3 2 1 NA

21 Working more effectively in changing environment *
22 Being able to adjust priorities to better meet changing business goals *
23 Knowing how to be more flexible and open to new ideas. *
24 Knowing the appropriate course of action to workplace issues. *
25 Understanding how to simplify business processes and procedures. *
B. Human Resource Department Employee’s Appraisal Summary Report

Develop an appraisal report based on Helen’s evaluation results presented in worksheet #3 – Training
and development Annex B.

Create an official and formal form (including logo of The Wings Hotel). In TABLE STRUCTURED
FORMAT, indicate the following information in the form:

a. Employee Information – name, position, department - Helen

b. Evaluator Information – name, position, department – Mrs. Wingkun
c. Date of evaluation
d. Title of the evaluation report: Annual Performance Review Report
e. Date of report
f. Appraisal objectives: generated from the 2023 policy statement above
g. Highlights or comments on appraisal categories with high score. (provide this information)
h. Areas with low scores recommend actionable goals that will benefit the employee, the team and
the organization as a whole. (consider you findings in the gap analysis framework above)
i. Set date for meeting, for input and feedback from the employee (Helen): indicate date, time, place
j. Signature area and date signed – sign-off section for rater (Mrs. Wingkun) and ratee (Helen).