Performance Management and Appraisal

1Performance Management and AppraisalChapter 92Learning ObjectivesIdentify the benefits of a formal employee performance appraisal program.Explain the rationale for each of the four steps in a progressive disciplinary program.Describe the role of employee improvement efforts as an integral part of the performance management process.3Learning ObjectivesDifferentiate between a voluntary and a non-voluntary employee separation, and explain the function of the exit interview.Identify major legal issues related to performance management and appraisal.4Performance ManagementWhen properly implemented, performance management and employee performance appraisals can help staff members do their best work.Performance management: A systematic process by which managers help employees to improve their ability to achieve goals. Performance Appraisal (employee): An objective and comprehensive evaluation of employee effectiveness. 5Performance ManagementPerformance management includes:Planning work and setting expectations Monitoring performanceDeveloping employee skillsAppraising performance in an objective mannerRewarding good performance6Performance ManagementSuccessful 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.7Performance ManagementBenefits of a good performance appraisal system:Recognition of outstanding performanceIdentification of necessary improvementsClarification of work standards8Performance ManagementBenefits of a good performance appraisal system: (cont.)Identification of specific training and development needsDetermination of Professional Development Activities Validation of screening and selection processes 9Performance ManagementBenefits of a good performance appraisal system: (cont.)Opportunity for employee feedback and suggestionsCustomers (internal):Employees of the hospitality operation.Customers (external):Guests served by the hospitality operation.Objective Method to Identify Candidates for Pay Increases and Promotion10Performance ManagementPrimary roles of HR in performance appraisal:Advocate for effective appraisalCoordinate process planning & implementationDetermine legal requirements11Performance ManagementPopular Performance Appraisal MethodsAbsolute standard:Measuring an employee’s performance against an established standard.Types of Absolute Standards:Critical incidentChecklist appraisal Continuum appraisal Forces choice appraisal 12Performance ManagementPopular Performance Appraisal Methods13Performance ManagementPopular Performance Appraisal MethodsRelative standard: Measuring one employee’s performance against another employee’s performance. Types of Relative Standards:Group order rankingIndividual order 14Performance ManagementPopular Performance Appraisal MethodsTargeted outcome: Measuring the extent to which specified goals were achieved. Management by objectives (MBO):A plan developed by an employee and his/her supervisor that defines goals, tactics to achieve them, and corrective actions, if needed.15Performance ManagementPopular Performance Appraisal MethodsTargeted outcome appraisal systems require:Identification of potential performance targetsEmployee input in final target selectionA defined time period for target completion or achievementPerformance feedback (appraisal)16Performance ManagementAdditional Performance Appraisal Methods and IssuesPeer 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.17Performance ManagementAdditional Performance Appraisal Methods and Issues: (cont.)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.18Performance ManagementThreats to Fair Performance AppraisalsBasing evaluation scores on the employee’s most recent behavior rather than evaluating the entire performance periodAllowing irrelevant or non-job-related factors to influence the evaluationFailing to include unfavorable comments on the evaluation, even when justified19Performance ManagementThreats to Fair Performance Appraisals: (Cont.)Rating all subordinates at about the same point on a ranking scale, usually in the middleJudging all employees too leniently or too harshlyPermitting personal feelings to bias the evaluation process20Performance ManagementThreats to Fair Performance Appraisals: (Cont.)Allowing one very good (or very bad) trait to affect all of the other ratings of the employee Halo effect: The tendency to let the positive assessment 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.21Progressive DisciplineDiscipline (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.22Progressive DisciplineDiscipline (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.23Progressive Discipline4-step progressive discipline program: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. 24Progressive Discipline4-step progressive discipline program: (cont.)Written Warning: The second step in a progressive discipline process that alerts an employee that further inappropriate behavior will lead to suspension.25Progressive Discipline26Progressive Discipline4-step progressive discipline program: (cont.)Suspension: The third step in a progressive discipline process: a period off from work resulting from on-going inappropriate behavior. Dismissal: The fourth step in a progressive discipline process: An employer initiated separation of employment.27Behavior Improvement TacticsReinforcement of Appropriate BehaviorEliminate Unacceptable BehaviorCounseling: A process to assist employees in overcoming performance problems.28Employee Separation Turnover: The replacement of one employee by another.Voluntary (separation):An employee-initiated termination of employment.29Employee Separation Involuntary (separation): An employer-initiated termination of employment.Exit Interview: A meeting between a representative of the organization and a departing employee.30Legal Considerations of Performance Management and AppraisalExceptions to At-will employment Contractual RelationshipImplied Contractual RelationshipPublic Policy Violation31Legal Considerations of Performance Management and Appraisal Exceptions to At-will employment (cont.) Statutory ConsiderationsBreach of Good FaithGood faith: The honest intent to act without taking an unfair advantage over another person. 32Legal Considerations of Performance Management and AppraisalTitle VII of the Civil Rights Act Title VII specifically prohibits employers from using non-job-related factors for employee evaluation, promotion, or termination.Protected Class: A group of workers with a characteristic specifically identified by an employment-related law or ordinance as protected.33Legal Considerations of Performance Management and AppraisalEqual Pay ActAmericans with Disabilities ActAge Discrimination in Employment Act