Performance Appraisal

Performance Appraisal
What is performance?

Performance is an act through which the goal and mission

are achieved.

Performance appraisal is a formal, structured system of

measuring and evaluating and employees job related
behaviors and his /her potential for greater contributions to
the organization.

Employees present value is assessed by his past

performance, while his future value is determined by his
present potential.

There are four critical aspects of performance:

1) performance must be linked to results

2) performance is tied to behavior

3) Behavior can be both active and passive.

 Objectives of Performance Appraisal
Performance Appraisal can be done with following
objectives in mind:

1. To maintain records in order to determine

compensation packages, wage structure, salaries
raises, etc.
2. To identify the strengths and weaknesses of
employees to place right men on right job.
3. To maintain and assess the potential present in a
person for further growth and development.
4. To provide a feedback to employees regarding their
performance and related status.
5. To provide a feedback to employees regarding their
performance and related status.
6. It serves as a basis for influencing working habits of
the employees.
7. To review and retain the promotional and other
training programmes.
Benefits of performance appraisal
Performance measurement
Performance improvement
Compensation
Identifies potential
Communication
Feedback
Development
Human resource planning

Factors for Performance Appraisal

1) precise measurement in terms quality and quantity and

time taken.

2) incorporating valued performance outcome that links

strategic goals.

3) linking performance to internal & external customers

expectations.

4) the system is focused on development, continuous

The need for performance appraisal in
Hospitality Industry.
Qulaity Degree to which an activity relates to standard
set.

Quantity Amount produced in terms of money, units,

cycles, etc.

Timeliness- Degree of urgency an activity is performed

with in relation to acceptable time standards.

Cost- effectiveness- Degree to which the

organization's resources and maximized resulting in cost
reduction, minimum loss and wastage.

Need for supervision- Degree to which employee

can work independently.

Interpersonal impact Degree to which

relationships benefit the business. An individual employee of
an hotel can ensure repeat customers on the basis of their
rapport and good service
Types of Performance Appraisal
1. Management by Objectives (MBO)- This
is an objective type of evaluation which falls under modern approach of
performance appraisal. In MBO method of performance appraisal, manager and
the employee agree upon specific and obtainable goals with a set deadline.
With this method, the appraiser can define success and failure easily.
MBO involves
Provide a subordinate with a framework of performance
Subordinates sets performance objectives for themselves.
Supervisors and subordinates discuss and agree on the points at the
beginning of performance period.
Review the progress of performance quarterly or bi-annually to see
whether objectives will be met.
Assess whether they have been achieved at the end of the year .
Benefits of MBO
Improved Planning
Coordination
Motivation and Commitment
Accurate Appraisals
Executive Development
Organizational change and Development
Types of Performance
Appraisal
180-Degree & 360-Degree Assessment -
This system believes that every individual
is responsible to give same amount of
attention to internal
customers(colleagues) as they would to
the external customers. This a part of High
Performance work Systems (HPWS).
Types of Performance Appraisal
Balance Scorecard- It is an innovative
performance system introduced by Harvard
professor Robert Kaplan and consultant David
Norton. It focuses management to leading
indicators of performance that will ensure
organization
Each employee link his/her job outcomes to
these factors and measures them. Therefore, a
housekeeping supervisor will be assessed on
improvements as leading indicator for instance
and restaurant captain in the restaurant.
Types of Performance
Appraisal
The Appraisal interview
This is the occasion when a superior and subordinate meet to discuss
the performance of the subordinate in a given performance period.
Appraisal Interview will have six phases:
1. Re- explaining the purpose of the meeting.
2. Discussing Performance.
3. Identifying strengths and areas of improvement.
4. Identifying coaching and group training programmes to
overcome performance deficiencies.
5. Listening action plans for improvements .
6. Reviewing career aspirations and recording development
plans.
Appraisal process
Performance Counseling
Performance counseling is a one-to-one
interaction between an employee and a the
counselor. The counselor can be immediate
supervisor or a specialist from HRD .
Objective of the meeting is to improve
performance . Such meeting obviously takes
place when there is a deficiency in the way
employee is performing
Reward & Reward Management

Reward It is a physical token of appreciation

of service, effort or achievement. Reward can
be in cash or kind.
Recognition Schemes- Official praise of
service, effort or achievements.
Incentives- It is a pre- condition to receive a
reward. Incentives are typically an industrial
age phenomenon when an uncommitted
workforce need incentives to perform
Reward & Reward Management

Non-Cash Rewards The hospitality industry has

some unique ways of giving non- direct cash
Rewards:
Free Vacation
Free meal vouchers
Suppliers Donations
Membership
Used Cars
Write- off of a loan
Reward & Reward Management

Recognition Scheme- It should be unexpected and

no one can bargain for it. Selection process of
employee must be fair and consistent and always
to be in public.
Pat on the Back
Words of Praise
Certificates of Recognition
Trophies of Recognition
Gifts of Recognition