Performance appraisal is one of the key management tools in the organizations that provide employees development needs, aids to identify training requirement, performance documentation to the employees who are concerned regarding their performance (Shields et al, 2015). Appraisal management is used to assess the performance as well as focus on their future objectives, resource need and opportunities. When it comes to hospitality industry, then it is highly important to ensuring smooth operation as well as providing high quality services to the visitors because it is the key factor for smooth growth of the organisation (Domínguez-Falcón et al. 2016). Appraisal management not only helps to provide consistent service of quality but also aids the managers to identify the individual training requirement and planning. Thus, management need to be aware of the requirement of the appraisal system and its effect on the organisation to enhance the growth effectively.
This report is focused to discuss the appraisal as a performance management tool and put light on its importance in the organisation. Besides this, the report will provide recommendation on appraisal process for Cavendish Hall Hotel. To conclude, the report will chalk-out the Appraisal Preparation, Feedback Sheet and Appraisal form to originate plan for appraisal practical.
Appraisal is a mechanism of appraising the employees individually in order to reflect their learning and work need to improve the performance (Moors 2013). Organisation hierarchy use this tool as a tool of management because it effectively enhances the performance of the employee. Appraisal management establishes two-way communication between the employee and the managers and this process helps both the parties to assess the performance and requirement of necessary development. Appraisal is not a disciplinary discussion rather than a disciplinary process, which addresses serious issues using the survey (Howlett et al. 2014). Hotel industry uses this tool as the medium of assessing their employees ranging from waiters to the managers owing to the fact that it aids to assess whether there is any gap in the service. There is a common belief that frequent evaluation of performance of the employees lead to higher productivity of the firm, however statistics argue that 30% performance appraisal lead to decreased performance of the employees (Jacobs et al. 2014). Besides this, 23% managers consider that performance appraisal is not accurate and helpful for the organisation, however, 40% CFO and HR, employ themselves into the performance appraisal owing to its huge benefits (Van, Bouckaert and Halligan 2015).
According to the Brutus, Baldry and Fletcher, performance appraisal is one of the dynamic mechanism that need management to evaluate and observe staff performance, produce outline and feedback for the employee and development scope of opportunity for both the managers and employee (Hutchinson 2013). In performance appraisal employees are acknowledged as the appraise and the employer is known as the appraiser, where this two-way mechanism of management evolves the opportunity of interaction. The aim of developing effective performance appraisal system is to achieve organizational objective through individual development. Importance of the performance appraisal is mentioned below (Cheng, 2014):
Figure 1: Performance appraisal goals
Source: (Created by Author)
Using the above figure, one can easily identify the goals of the performance appraisal. It mainly included objective settings, strategic alignment and employer-employee feedback. Using this features performance appraisal aids the managers to provide the following benefits (Dusterhoff, Cunningham and MacGregor 2014):
Well, besides these, there are various benefits of having performance appraisal and it helps the organizations to foster (Van Woerkom and de Bruijin 2016). Some of the organizations use the performance appraisal tool to ensure that they have proper updates about their employees and some firms use this tool just to understand the strategy and process of recruiting, training and maintaining the labours.
Performance appraisal has been in use by the business house for a long time but during the post-recession period 90% of the business houses use this mechanism to assess their employees (Rogers et al. 2013). It contest and challenges both the employee as well the manager in order to perform the best what they can do in order to ensure the development and growth of the organization. According to the Pulakos, appraisal management, ensures job evaluation, clarity, accountability and influence the employees to have better results (Pulakos et al. 2015). Using the performance appraisal, organisations can set their objective setting, which helps to define the goal of the business houses, which were much necessary during the post-recession period of 2008. Along with the performance appraisal, objective setting is used to attain better end-result and understand about the goals of the organization (DeNisi and Smith 2014). Both parties of the performance appraisal set out clear path for working together in order to collectively enhance the production, performance and revenue generation of the firm. Appraisal tool is used by the managers so that they can ensure that every employee in the organisation is mindful, productive and attains all the team goals (LePine et al. 2016). Thus, in today’s world when the global economy is facing reduction in growth and rise in GDP owing to low product variety, inflation and employment, performance appraisal helps the business houses to retain employment and bridge the gap in talent pool (Schuler and Jackson 2014).
Development of a business depends upon the performance of the employees and thus it is highly important to assess their performance. Performance appraisal is one of the best tools to the managers to assess the performance of their subordinates because it not only aids the higher authority to develop the present situation of the employee but also manages to develop future training prospect (Chadwick, Super and Kwon 2015). Some of the advantages of the appraisal management system is mentioned below:
Status report of the employee – Performance of an employee depends largely on the realisation of their performance status and thus appraisal acts as a magical spell for them. It helps the employees to assess their performance and their colleagues, which aids them to foster in the competitive environment of the business organisation (Mone and London 2014).
Career planning – Performance appraisal includes SWOT analysis of the each employee that gives them opportunity to virtualize their future scope and career options (Thomas et al. 2014). Moreover, it considers the external analysis of the employee that guides them to avail their future career prospects.
Performance improvement – Performance of an employee is highly important for the growth of the organisation, thus managers always tend to have some tools that guide them to motivate their employees. Performance appraisal will help the employees to improve the performance (Dusterhoff, Cunningham and MacGrgor 2014).
Motivation to the employee – Understanding the present scenario of an employee is beneficial for both the managers as well as the worker himself. It aids the managers to construct efficient plans for the employees in order to provide them motivation.
Well, there are plenty of benefits in the case of performance appraisal; however, it is not perfect owing to various disputes and disadvantages. Some of the disadvantages of the performance appraisal are mentioned below (LePine et al. 2016).
Halo effect – when it comes to the appraisal management, then it tends to biased owing to the Halo effect. Evaluator of the performance appraisal may provide the worker very good or poor or the average marks to all the categories depending upon the general impression. This will cause distortion in the outcome of the performance appraisal.
Rater’s bias – This is a common fact that evaluator may be biased for the employee because of the prior relationship between the worker and the manager. This will lead to higher marks in the performance of the worker without actually evaluating the performance (John et al. 2016).
Central tendency error – Central tendency is one of the main factors that construct the appraisal management outcome. If the evaluator fakes the ranking, it will result in higher central tendency leading to improper outcome of appraisal tendency.
Contrast error – If the performance standard is not taken into consideration to construct the appraisal management, then contrast error may come. It will lead to error in the computation of the appraisal report (Bednall, Sanders and Runhaar 2014).
Appraisal management report is time and resource consuming as well as conflicting in nature that makes it a high-risk activity. However, owing to its advantages, most of the managers of the business organisations prefer to use it as one of the best management tool.
High performance work system also acknowledged as the HPWS is same as the high performance work organization that improves the employee performance in the organization. According to the latest researches, there is a correlation between the high performance and the HR attribution and the research report states that it aids the employees to have tangible benefits from the intrinsic resources (Van De Voorde and Beijer 2015). For instance, training, promotion, performance enhancement classes, job security etc. In reality better management with HPWS can lead any organisation irruptive of its nature, can lead it to the zenith of success.
Performance appraisal is a separate yet interconnected practice of the managers to enhance the effectiveness of the employee. When it comes to the hospitality management, then appraisal management is one of the best tools that aid all the managers to integrate their workforce and bridge the talent gap in the industry. Cavendish Hall Hotel is one of the renowned hotels that provide the best in class service to their visitors. Integrating performance appraisal into the management structure of the hotel will help the hotel to enhance the efficiency and the effectiveness of the employee (Fukey and Issac 2014).
Benefits of integrating the performance appraisal into the Cavendish Hall Hotel can be envisaged from the figure 2. According to the figure, it can be derived that performance appraisal will help the Cavendish Hall Hotel to evaluate performance, define the employee objective, forms the R&R structure on behalf of the brand and frame the development plan for the hotel to foster.
Figure 2: Benefits of integrating performance appraisal in Cavendish Hall Hotel
Source: (Created by Author)
Integration of the performance appraisal into the Cavendish Hall Hotel will inherently describe the intentions and aims of the brand to their employees in order to influence them to perform better to achieve the organisational goal (Domínguez-Falcón et al. 2016). Conveying the appropriate information in a consistent and concise manner is one of the best possible outcome that performance appraisal can provide to the Cavendish Hall Hotel.
Appraisal management is one of the tools that can enhance the growth of an institution, where is being applied. As the report discussed above, it will not only enhance the efficiency among the workers but also aids the managers to develop growth structure of the organisation while mitigating the skill gap in the talent pool. As the recommendation for the Cavendish Hall Hotel, it can be stated that present Behavioural Ranking Scale (BARS) of the CHH need to be eliminated and five ranking mechanism should be implemented, which will clearly separate the good and satisfactory level of ranking. Another recommendation is that the CHH need to introduce R&R structure for the employees to motivate them and let them work hard to satisfy both the personal and organisational goal. Besides this, it would be helpful for the hotel to bring in the SMART (Specific, Measurable, Achievable, Relevant and Time-Framed) work structure in order to maintain work ethics in the organisation and influence the workers.
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Job Ratings and Rewards |
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1 (highest) |
2 |
3 |
4 |
5 (lowest) |
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Merit pay |
$$$$ |
$$$ |
$$ |
$ |
— |
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Bonus |
$$$$ |
$$$ |
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$ |
— |
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Restricted stock units |
$$$$ |
$$$ |
$$ |
$ |
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Figure 3: Job rating and reward system
Source: (Created by Author)
According to the figure 3, it would be better for any hospitality service provider to introduce the R&R framework for their workers, which is based on the performance ratings. As the figure 3 depicts, employee who have the highest ratings, will enjoy the highest bonus and there will be no bonus for the employee who will have the lowest ratings. This will certainly force the employees to perform better and lead to high efficiency of the workers.
Conclusion:
Aligning and identifying the performance of the employees is the main objective of the appraisal management. To conclude it can be said that HR practices need to be augmented in order to have better performance of the employee, which will help to achieve the organisational goal for the hospitality service providers. With better management and good appraisal management, any hospitality service provider can certainly touch new high of success.
References:
Bednall, T.C., Sanders, K. and Runhaar, P., 2014. Stimulating informal learning activities through perceptions of performance appraisal quality and human resource management system strength: A two-wave study. Academy of Management Learning & Education, 13(1), pp.45-61.
Chadwick, C., Super, J.F. and Kwon, K., 2015. Resource orchestration in practice: CEO emphasis on SHRM, commitment?based HR systems, and firm performance. Strategic Management Journal, 36(3), pp.360-376.
Cheng, S.Y., 2014. The mediating role of organizational justice on the relationship between administrative performance appraisal practices and organizational commitment. The International Journal of Human Resource Management, 25(8), pp.1131-1148.
DeNisi, A. and Smith, C.E., 2014. Performance appraisal, performance management, and firm-level performance: a review, a proposed model, and new directions for future research. Academy of Management Annals, 8(1), pp.127-179.
Domínguez-Falcón, C., Domínguez-Falcón, C., Martín-Santana, J.D., Martín-Santana, J.D., De Saá-Pérez, P. and De Saá-Pérez, P., 2016. Human resources management and performance in the hotel industry: The role of the commitment and satisfaction of managers versus supervisors. International Journal of Contemporary Hospitality Management, 28(3), pp.490-515.
Domínguez-Falcón, C., Domínguez-Falcón, C., Martín-Santana, J.D., Martín-Santana, J.D., De Saá-Pérez, P. and De Saá-Pérez, P., 2016. Human resources management and performance in the hotel industry: The role of the commitment and satisfaction of managers versus supervisors. International Journal of Contemporary Hospitality Management, 28(3), pp.490-515.
Dusterhoff, C., Cunningham, J.B. and MacGregor, J.N., 2014. The effects of performance rating, leader–member exchange, perceived utility, and organizational justice on performance appraisal satisfaction: Applying a moral judgment perspective. Journal of Business Ethics, 119(2), pp.265-273.
Dusterhoff, C., Cunningham, J.B. and MacGregor, J.N., 2014. The effects of performance rating, leader–member exchange, perceived utility, and organizational justice on performance appraisal satisfaction: Applying a moral judgment perspective. Journal of Business Ethics, 119(2), pp.265-273.
Fukey, L.N. and Issac, S.S., 2014. Connect among green, sustainability and hotel industry: a prospective simulation study. Energy conservation, 6, p.8.
Howlett, M., Tan, S.L., Migone, A., Wellstead, A. and Evans, B., 2014. The distribution of analytical techniques in policy advisory systems: Policy formulation and the tools of policy appraisal. Public Policy and Administration, 29(4), pp.271-291.
Hutchinson, S., 2013. Performance management: theory and practice. Kogan Page Publishers.
Jacobs, G., Belschak, F.D. and Den Hartog, D.N., 2014. (Un) ethical behavior and performance appraisal: the role of affect, support, and organizational justice. Journal of business ethics, 121(1), pp.63-76.
John Bernardin, H., Thomason, S., Ronald Buckley, M. and Kane, J.S., 2016. Rater Rating?Level Bias and Accuracy in Performance Appraisals: The Impact OF Rater Personality, Performance Management Competence, and Rater Accountability. Human Resource Management, 55(2), pp.321-340.
LePine, M.A., Zhang, Y., Crawford, E.R. and Rich, B.L., 2016. Turning their pain to gain: Charismatic leader influence on follower stress appraisal and job performance. Academy of Management Journal, 59(3), pp.1036-1059.
LePine, M.A., Zhang, Y., Crawford, E.R. and Rich, B.L., 2016. Turning their pain to gain: Charismatic leader influence on follower stress appraisal and job performance. Academy of Management Journal, 59(3), pp.1036-1059.
Mone, E.M. and London, M., 2014. Employee engagement through effective performance management: A practical guide for managers. Routledge.
Moors, A., 2013. Author reply: Appraisal is transactional, not all-inclusive, and cognitive in a broad sense. Emotion Review, 5(2), pp.185-186.
Pulakos, E.D., Hanson, R.M., Arad, S. and Moye, N., 2015. Performance management can be fixed: An on-the-job experiential learning approach for complex behavior change. Industrial and Organizational Psychology, 8(1), pp.51-76.
Rogers, E.E., Petho, R., Happich, K., Moise, G. and Es-Sabahi, N., 2013. How to Effectively Use Talent Management Tools and Processes in a Post-Recession World: A State of the Art & Practice Report.
Schuler, R. and E. Jackson, S., 2014. Human resource management and organizational effectiveness: yesterday and today. Journal of Organizational Effectiveness: People and Performance, 1(1), pp.35-55.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., O’Leary, P., Robinson, J. and Plimmer, G., 2015. Managing Employee Performance & Reward: Concepts, Practices, Strategies. Cambridge University Press.
Thomas, S., Chie, Q.T., Abraham, M., Jalarajan Raj, S. and Beh, L.S., 2014. A qualitative review of literature on peer review of teaching in higher education: An application of the SWOT framework. Review of educational Research, 84(1), pp.112-159.
Van De Voorde, K. and Beijer, S., 2015. The role of employee HR attributions in the relationship between high?performance work systems and employee outcomes. Human Resource Management Journal, 25(1), pp.62-78.
Van Dooren, W., Bouckaert, G. and Halligan, J., 2015. Performance management in the public sector. Routledge.
van Woerkom, M. and de Bruijn, M., 2016. Why performance appraisal does not lead to performance improvement: Excellent performance as a function of uniqueness instead of uniformity. Industrial and Organizational Psychology, 9(2), pp.275-281.
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