Human resource exam
Describe general performance appraisal issues and summarize the functions of performance appraisals.
Identify and discuss potential problems with performance appraisals.
Describe the principal types of rating systems used in appraising employee performance.
Describe commonly used methods of appraising performance.
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Identify who should evaluate performance, and discuss objectives for programs that train managers and supervisors to conduct performance appraisals.
Discuss how often performance appraisals should be conducted, identify legal issues relating to performance appraisals, and summarize keys to developing an effective employee appraisal system.
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
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
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
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.
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Performance Appraisal Issues
Mismanagement can cause resentment and resistance
Managers must realize that both managers and employees are subject to human conditions that affect performance appraisals
Managers should also comment on the positive aspects of an employee’s performance
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Functions of Performance Appraisals
Basically fill two kinds of needs in organizations:
improving work performance
making work-related decisions
The purpose is to give employees feedback
reinforce or encourage performance
help employees develop in their careers
Appraisals should be designed with a specific purpose in mind
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Performance Feedback
To be successful, feedback should contain
No surprises
Employee Involvement
Primarily objective data
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Decision Making and Evaluation Tool
Provide an effective way to link rewards and discipline to performance
Provide a basis for compensation, promotion, transfer, grievance, or discipline decisions
Can be used to measure the effectiveness of training
if the employee is evaluated both before and after the training
Can serve as an evaluation for new policies
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Validation of Selection Process
May help establish predictive validity
the extent to which a measurement predicts future behavior, of selection methods
Construct validity
appraisals must measure what they intend to
Content validity
appraisals must measure the entire issue
Consistency
it is important to look for consistency rather than just focusing on one or two particular points in time
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Bias
Leniency errors
occur when managers or interviewers rate an employee too positively
Severity errors
occur when managers or interviewers rate employees too severely
Central tendency errors
occur when managers or interviewers rate all or most employees as average
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
More Possible Bias
Recency errors
when managers base employee ratings primarily on the most recent events or behaviors
Past anchoring errors
when rate employees on the basis of previous ratings
Halo errors
when managers rate employees on the basis of a single positive attribute
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Principal Appraisal Rating Systems
Trait-based ratings
used primarily to assess the personal characteristics of employees
Behavior-based ratings
assess employees on their behaviors rather than on personal characteristics.
Results-based ratings
focused on measuring the extent to which employees accomplish results
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Performance Management Part 2
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Ranking methods
Methods of Appraising Performance
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Chapter 7: Evaluating Employee Performance
Forced distribution
Methods of Appraising Performance
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Chapter 7: Evaluating Employee Performance
Graphic rating scale
Methods of Appraising Performance
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Chapter 7: Evaluating Employee Performance
BARS - Behavioral anchored rating scales
Methods of Appraising Performance
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Narrative essays
Critical incidents
Methods of Appraising Performance
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
MBO - Management by objectives
Methods of Appraising Performance
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Ranking Methods
Simple ranking
rank all employees from best to worst
does not distinguish between different aspects of job responsibilities
Alternative ranking
list each employee on a separate piece of paper and order them from best to last
Paired comparisons
directly compare employees to one another on each job criterion
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Other Methods of Evaluating Performance
Peer evaluations
Staff appraisals of managers
Self-appraisals
Guest appraisals
Multiple rater evaluations
360 degree appraisal
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Supervisors as Appraisers
May have little to no contact with the employees he or she evaluates
Immediate supervisors make vastly superior assessments when compared with those of a second-level supervisor
Bosses in a bad mood are more likely to issue negative performance appraisals
Subconscious stereotypes that managers hold regarding race, age, attractiveness, and other attributes directly affect their appraisals
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Frequency
Once or twice per year is norm
Difficult to remember events and behaviors that occurred
Goal should be quarterly
Performance appraisals are most effective when used often
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Content Issues
Performance standards must be based on job analysis
Evaluations based on specific dimensions of job performance
Performance standards should be objective and observable
Ratings should be documented
Validity of appraiser’s ratings should be assessed
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Process Issues
Performance standards must be communicated to and understood by employees
Specific instructions for appraisals should be in writing
More than one appraiser should be used
Appraisers should review results with employees
Have process clear for formal appeals
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance