Chapter 12 Performance Appraisals That Work introduction



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CHAPTER 12

INTRODUCTION

  • Every exchange with your guest must emphasize that you will care for them, attend to their needs and that their business and concerns are valued. All your staff will need to reflect this behavior, understanding that guest satisfaction is the only performance yardstick.
  • - John Hendrie, CEO, Hospitality Performance, Inc.

TALES FROM THE FIELD Nobody’s perfect…

  • Why do some hospitality organizations do a poor job when conducting employee evaluations?
  • How might the chef in this Tale be damaging employee/employer relations at the hotel?
  • Does this kind of problem impact employee turnover?
  • What are the chances of this employee remaining productive and motivated?

CHAPTER OVERVIEW

  • The performance appraisal system
  • Uses of performance appraisals
  • Informal and formal appraisal systems
  • Rater biases
  • Commonly used appraisal methods
  • The role of employee counseling
  • Legal concerns regarding performance appraisals

EFFECTIVE PERFORMANCE APPRAISAL SYSTEMS

  • Help identify an employee’s positive accomplishments as well as areas of performance that need improvement
  • Pointing out an employee’s strengths by highlighting past accomplishments boosts morale and instills positive self-esteem
  • When deficiencies are found, the hospitality manager can help the employee draft a plan to correct the situation

BENEFITS

  • When management focuses on past accomplishments as well as future goals for improvement, employees are less likely to be defensive, and the process itself is more likely to motivate employees to improve any performance deficiencies

USES FOR PERFORMANCE APPRAISALS

  • Improve employee performance
  • Determine pay adjustments
  • Assist management when making placement decisions
  • Identify training needs
  • Assist with career planning
  • Identify job design errors
  • Provide feedback to management
  • Equal Employment Opportunity

PROVIDING DAILY FEEDBACK

  • Because there is a close connection between the behavior and the feedback, overall employee performance is likely to improve.
  • When honest informal feedback occurs, there will be fewer surprises when the times comes to conduct a more formal, written evaluation
  • An example of an informal appraisal method

ANNUAL AND SEMI-ANNUAL EVALUATIONS

  • A formal appraisal evaluation should be conducted at least once or twice per year, and they should always be in written form so they are documented
  • An example of a formal appraisal method or system

RATER BIAS

  • This occurs when supervisors and managers fail to remain emotionally detached while they evaluate employee performance
  • When bias occurs, an employee’s performance evaluation will be inaccurate and distorted

COMMON RATER BIASES

  • The halo or horns effect
  • The error of central tendency
  • Cross-cultural biases
  • The leniency and strictness bias
  • Personal prejudice
  • The recency effect
  • Similar-to-me bias

COMMONLY USED APPRAISAL METHODS

  • Rating scales
  • Checklists
  • Forced choice method
  • Critical incident method
  • Behaviorally anchored rating scales (BARS)
  • Self-appraisals
  • Management by objectives (MBO)
  • 360-degree appraisals

RATING SCALES

  • This is a widely-used method that requires the supervisor to provide a subjective evaluation of an employee’s performance based on a scale of low to high, or poor to excellent
  • Instructions: For the following performance factors, please indicate on the rating scale your evaluation of the named employee.
  • Employee: ___________________________ Department: _____________________
  • Supervisor: ___________________________ Date: ___________________________
  • Excellent Good Acceptable Fair Poor
  • 5 4 3 2 1
  • 1. Dependability ____ ____ ____ ____ ____
  • 2. Attitude ____ ____ ____ _____ ____
  • 3. Cooperation ____ ____ ____ _____ ____
  • 4. Attendance ____ ____ ____ _____ ____
  • 5. Quality of work ____ ____ ____ _____ ____
  • Results ____ ____ ____ _____ ____
  • Totals ____ + ____ + ____ + _____ + ____
  • Total Score = _________
  • Signature of supervisor: ______________________________
  • Signature of employee: _______________________________
  • RATING SCALE FORM EXAMPLE

RATING SCALE FORMAT PROS AND CONS

  • - Easy to design
  • - Supervisors require little to no training to use them
  • - Subjective in nature
  • - Often not based on measurable criteria
  • - Rater biases are more likely to be reflected
  • PROS
  • CONS

CHECKLISTS

  • A list of behavioral descriptions
  • Requires the supervisor to check off behaviors that apply to the employee
  • When management assigns weights to different items on the checklist according to each item’s importance, the result is called a weighted checklist
  • The weights allow the rating to be quantified so that total scores can be determined
  • Instructions: Check each of the following items that apply to the named employee’s performance.
  • Employee: _____________________________ Department: _____________
  • Supervisor: ____________________________ Date: _______
  • Weights Check Here
  • (7.5) 1. Employee keeps work area neat and clean. ________
  • (5.0) 2. Employee works overtime when asked. ________
  • 3. Employee cooperates and assists others when needed. ________
  • (3.5) 4. Employee secures work area when finished. ________
  • Total of all weights: ________
  • Supervisor signature: ________________________________
  • Employee signature: _________________________________
  • WEIGHTED CHECKLIST EXAMPLE

WEIGHTED CHECKLIST PROS AND CONS

  • - The method is practical and somewhat standardized
  • - General statements reduce the form’s job-relatedness
  • - Doesn’t allow for different levels of performance
  • - Checklist items must be developed for each job category
  • - Rater biases are more likely to be reflected
  • PROS
  • CONS

FORCED CHOICE METHOD

  • The forced choice method uses a scale or continuum that best describes the employee, using performance factors such as job knowledge, work quality and quantity, attendance, and initiative
  • This method requires the supervisor to select the one best statement that most accurately describes how the employee performs the job tasks considered most important for successful job performance
  • This method is sometimes called an adjective rating scale
  • Forced Choice Performance Evaluation Form
  • Employee: ____________________ Department: ____________
  • Supervisor: ______________________ Date: ________________
  • Performance Factors
  • Performance Rating
  •  
  • Low
  • Below Average
  • Average
  • Above Average
  • High
  • Understands department functions
  • Poorly informed about department functions
  • Has fair knowledge of the department functions
  • Can answer most questions about the department
  • Understands all phases of the department.
  • Has complete mastery of all phases of the department.
  • Follows directions and company policy without supervision
  • Requires constant supervision
  • Requires occasional follow up
  • Can usually be counted on
  • Requires very little supervision
  • Requires absolute minimum supervision
  • Accuracy, skill, completeness, and quality of work performed
  • Seldom meets the requirements and is almost always unsatisfactory
  • Work is often unsatisfactory and often does not meet requirements
  • Work is consistently satisfactory and usually meets requirements
  • Work is consistently superior and never contains mistakes
  • FORCED CHOICE METHOD FORM

CRITICAL INCIDENTS APPROACH

  • The critical incidents method focuses the manager’s attention on employee behaviors that play a key role in executing a job effectively or ineffectively
  • This approach requires supervisors to maintain a log or a diary in which they write down examples of incidents that exhibit both acceptable and unacceptable job performance
  • Employee: ________________________________ Department: _________________
  • Supervisor: _______________________________ Date: _______________________
  • Evaluation period: ____________ to ____________
  • Control Safety Hazards in Kitchen
  • Control Safety Hazards in Kitchen
  • Date: Positive Employee Behavior
  • Date: Negative Employee Behavior
  • 10/12: Employee reported a broken rung on the kitchen utility ladder and flagged the ladder as unsafe
  • 11/3: Employee used kitchen grease mop to clean main dining room floor
  • 10/15: Employee put out small trash can fire promptly.
  • 11/24: Employee was caught smoking a cigarette in the kitchen.
  • Protects Company Assets
  • Protects Company Assets
  • Date: Positive Employee Behavior
  • Date: Negative Employee Behavior
  • 10/3: Sorted through damaged shipment of glassware to salvage usable wine glasses.
  • 11/3: Used hotel guestroom bath towel to clean kitchen countertops resulting in ruined towel.
  • 11/19: Left empty sauté pan on range and ruined pan.
  • CRITICAL INCIDENTS SAMPLE DIARY

CRITICAL INCIDENTS APPROACH PROS AND CONS

  • Provides supervisors with a detailed list of behaviors that he can discuss with the employee explaining which behaviors are desirable and which require improvement on the employee’s part
  • When improperly utilized, ignores a large number of behaviors that tend to fall somewhere between the extremes of poor and excellent
  • PROS
  • CONS

BEHAVIORALLY ANCHORED RATING SCALES

  • Sometimes referred to as BARS, is an evaluation approach that combines elements from both the forced choice and critical incidents methods of evaluating employee performance
  • When using the BARS method, supervisors rate their employees along a continuum just as they do with the forced choice and critical incidents methods, but they use specific, named behaviors as benchmarks, rather than general descriptions or traits
  • Employee: __________________________ Department: _____________________
  • Supervisor: __________________________ Date: ___________________________
  • Performance Category: Uses Collaborative Methods in Meeting Hotel Sales Goals
  • Rating
  • Behavior Anchor
  • 5 [ ] Very Good
  • Develops workable plans for collaboration including time lines and budget and works regularly with department heads to achieve goals. Gives credit to others for their contributions and provides supportive written materials of the work. Always follows up on agreements.
  • 4 [ ] Good
  • Plans for collaboration usually carried out. Helps all members of team make meaningful contributions. Experiences some difficulties in full collaboration among identified team members.
  • 3 [ ] Below Average
  • Has a plan for collaboration, but experiences delays and frustrations with the nature of collaboration.
  • 2 [ ] Poor
  • Has no effective plan for collaboration, but expresses interest.
  • 1 [ ] Unacceptable
  • Shows no interest in working with others. Does not seek direction on how to improve.
  • BEHAVIORALLY ANCHORED RATING SCALE FORM

ANOTHER FORM OF BARS

  • The behavioral frequency scale is another form of BARS.
  • Rather than rating specific, named behaviors, this form requires the supervisor to indicate the frequency of the identified behavioral anchors, usually along a five-point scale from “almost never” to “almost always”
  • Employee: _________________________ Department: __________________
  • Supervisor: ____________________________ Date: ________________________
  • Behavioral Anchor: Dining Room Staff Supervision
  • Behavior
  • Frequency
  •  
  • Always
  • Frequently
  • Occasionally
  • Seldom
  •  
  •  
  •  
  •  
  • Is actively involved with and constantly nurtures staff members
  •  
  •  
  •  
  •  
  • Focuses on restaurant and individual needs
  •  
  •  
  •  
  •  
  • Provides a stable and supportive learning and working environment
  •  
  • BEHAVIORAL FREQUENCY SCALE FORM

BARS PROS AND CONS

  • Their validity tends to be superior to methods that are based on subjective personality traits
  • But because they must be created for each job, they can be costly to develop and maintain, especially for larger hospitality operations with an array of jobs
  • BARS are somewhat complex to develop and administer because they address specific, job-related behaviors
  • PROS
  • CONS

SELF APPRAISALS

  • Self-appraisals tend to be an effective method of performance evaluation when the goal is to further self-development. This system works well when evaluating supervisors and managers
  • When employees evaluate themselves, defensive behavior is less likely to occur and there is a motive for self-improvement
  • There is always the risk that the employee will either be too lenient or critical when evaluating her own performance
  • The employee’s involvement and commitment to the improvement process is critical for this method to be truly effective

MANAGEMENT BY OBJECTIVES (MBO)

  • This approach requires the supervisor to be directly involved in determining performance standards for his/her employees
  • Ideally, the supervisor and the employee should jointly review the employee’s job responsibilities, identify the processes and results needed, and then determine performance standards that will define how well the results are accomplished.
  • In the best-case scenario, these goals are mutually agreed upon and objectively measurable. If both of these conditions are met, the employees are apt to be more motivated to achieve their goals since they have actively participated in setting them

ASSISTING EMPLOYEES WITH GOAL SETTING USING MBO

  • Management should remember that four to six goals per rating period are usually sufficient, and the goals should be changed or adjusted as needed
  • One drawback to MBO is that objectives are sometimes either too ambitious or too narrow
  • This may result in frustration for employees or overlooked areas of performance
  • The MBO method of performance appraisal tends to be most effective when applied to supervisors and managers

360-DEGREE APPRAISAL

  • Provides each employee the opportunity to receive performance feedback from his supervisor, three to four co-workers, and even customers.
  • Most 360-degree performance appraisals are also responded to by the individual employee being evaluated in the form of a self- assessment.
  • Powerful developmental method and quite different from traditional manager- employee appraisals.
  • Can be used as a stand-alone development method.
  • Method tends to reduce the instances of rater bias.

EVALUATION INTERVIEWS

  • An evaluation interview occurs when the supervisor and the employee meet one-on-one to discuss the formal employee performance appraisal
  • The goal is to give the employee feedback about past performance and to devise an action plan when certain elements of job performance require improvement

PREPARATION IS KEY

  • Employee evaluations are such a critical activity of effective hospitality management, the supervisor or manager must be prepared
  • This might include reviewing the employee’s previous appraisals, identifying specific behaviors to be reinforced during the interview, and planning method for providing feedback

EFFECTIVE COUNSELING SESSIONS

  • Create good employee-employer relations
  • Ensure that the interview is done in a positive manner
  • Stresses the positive aspects of employee performance

LEGAL ASPECTS

  • Performance appraisals must be free from discrimination
  • Appraisal criteria, methods, and documentation should be designed to ensure that they are all job-related
  • An employee may challenge decisions made by management
  • based upon a flawed appraisal system in court because these decisions
  • often violate EEO laws

SUMMARY

  • The performance appraisal system
  • Uses of performance appraisals
  • Informal and formal appraisal systems
  • Rater biases
  • Commonly used appraisal methods
  • The role of employee counseling
  • Legal concerns regarding performance appraisals


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