Performance Management and Appraisal

1. 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