copyright © 2008 by john wiley & sons, inc. all rights reserved chapter 12 performance...
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Copyright © 2008 by John Wiley Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved& Sons, Inc. All rights reserved
CHAPTER 12CHAPTER 12
Performance Appraisals That WorkPerformance Appraisals That Work
Copyright © 2008 by John Wiley Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved& Sons, Inc. All rights reserved
INTRODUCTION
Every exchange with your guest must emphasize that Every exchange with your guest must emphasize that you will care for them, attend to their needs and that you will care for them, attend to their needs and that their business and concerns are valued. All your staff their business and concerns are valued. All your staff will need to reflect this behavior, understanding that will need to reflect this behavior, understanding that guest satisfaction is the only performance yardstick.guest satisfaction is the only performance yardstick.
- John Hendrie, CEO, Hospitality Performance, Inc.- John Hendrie, CEO, Hospitality Performance, Inc.
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TALES FROM THE FIELDTALES FROM THE FIELDNobody’s perfect…Nobody’s perfect…
Why do some hospitality organizations do a poor Why do some hospitality organizations do a poor job when conducting employee evaluations?job when conducting employee evaluations?
How might the chef in this How might the chef in this TaleTale be damaging be damaging employee/employer relations at the hotel?employee/employer relations at the hotel?
Does this kind of problem impact employee Does this kind of problem impact employee turnover?turnover?
What are the chances of this employee What are the chances of this employee remaining productive and motivated?remaining productive and motivated?
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CHAPTER OVERVIEWCHAPTER OVERVIEW
The performance The performance appraisal systemappraisal system
Uses of performance Uses of performance appraisalsappraisals
Informal and formal Informal and formal appraisal systemsappraisal systems
Rater biasesRater biases
Commonly used Commonly used appraisal methodsappraisal methods
The role of employee The role of employee counselingcounseling
Legal concerns Legal concerns regarding regarding performance performance appraisalsappraisals
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EFFECTIVE PERFORMANCE APPRAISAL EFFECTIVE PERFORMANCE APPRAISAL SYSTEMSSYSTEMS
Help identify an employee’s positive Help identify an employee’s positive accomplishments as well as areas of accomplishments as well as areas of performance that need improvementperformance that need improvement
Pointing out an employee’s strengths by Pointing out an employee’s strengths by highlighting past accomplishments boosts highlighting past accomplishments boosts morale and instills positive self-esteemmorale and instills positive self-esteem
When deficiencies are found, the hospitality When deficiencies are found, the hospitality manager can help the employee draft a plan to manager can help the employee draft a plan to correct the situationcorrect the situation
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BENEFITSBENEFITS
When management When management focuses on past focuses on past accomplishments as well accomplishments as well as future goals for as future goals for improvement, employees improvement, employees are less likely to be are less likely to be defensive, and the defensive, and the process itself is more process itself is more likely to motivate likely to motivate employees to improve employees to improve any performance any performance deficienciesdeficiencies
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USES FOR PERFORMANCE USES FOR PERFORMANCE APPRAISALSAPPRAISALS
Improve employee Improve employee performanceperformance
Determine pay Determine pay adjustmentsadjustments
Assist management Assist management when making when making placement decisionsplacement decisions
Identify training needsIdentify training needs
Assist with career Assist with career planningplanning
Identify job design Identify job design errorserrors
Provide feedback to Provide feedback to managementmanagement
Equal Employment Equal Employment OpportunityOpportunity
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PROVIDING DAILY FEEDBACKPROVIDING DAILY FEEDBACK
Because there is a close Because there is a close connection between the connection between the behavior and the feedback, behavior and the feedback, overall employee performance overall employee performance is likely to improve.is likely to improve.
When honest informal When honest informal feedback occurs, there will be feedback occurs, there will be fewer surprises when the times fewer surprises when the times comes to conduct a more comes to conduct a more formal, written evaluationformal, written evaluation
An example of an An example of an informal appraisalinformal appraisal method method
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ANNUAL AND SEMI-ANNUAL ANNUAL AND SEMI-ANNUAL EVALUATIONSEVALUATIONS
A formal appraisal A formal appraisal evaluation should be evaluation should be conducted at least once conducted at least once or twice per year, and or twice per year, and they should always be in they should always be in written form so they are written form so they are documenteddocumented
An example of a An example of a formal appraisalformal appraisal method or system method or system
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RATER BIASRATER BIAS
This occurs when supervisors This occurs when supervisors and managers fail to remain and managers fail to remain emotionally detached while they emotionally detached while they evaluate employee performance evaluate employee performance
When bias occurs, an employee’s When bias occurs, an employee’s
performance evaluation will be performance evaluation will be inaccurate and distortedinaccurate and distorted
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COMMON RATER BIASESCOMMON RATER BIASES
The halo or horns The halo or horns effecteffect
The error of central The error of central tendencytendency
Cross-cultural biasesCross-cultural biases
The leniency and The leniency and strictness biasstrictness bias
Personal prejudicePersonal prejudice The recency effectThe recency effect Similar-to-me biasSimilar-to-me bias
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COMMONLY USED APPRAISAL COMMONLY USED APPRAISAL METHODSMETHODS
Rating scalesRating scales ChecklistsChecklists Forced choice methodForced choice method Critical incident methodCritical incident method Behaviorally anchored rating scales (BARS)Behaviorally anchored rating scales (BARS) Self-appraisalsSelf-appraisals Management by objectives (MBO)Management by objectives (MBO) 360-degree appraisals360-degree appraisals
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RATING SCALESRATING SCALES
This is a widely-used method that requires This is a widely-used method that requires the supervisor to provide a subjective the supervisor to provide a subjective evaluation of an employee’s performance evaluation of an employee’s performance based on a scale of low to high, or poor to based on a scale of low to high, or poor to excellentexcellent
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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 11. Dependability ____ ____ ____ ____ ____2. Attitude ____ ____ ____ _____ ____3. Cooperation ____ ____ ____ _____ ____4. Attendance ____ ____ ____ _____ ____5. Quality of work ____ ____ ____ _____ ____Results ____ ____ ____ _____ ____Totals ____ + ____ + ____ + _____ + ____ Total Score = _________ Signature of supervisor: ______________________________Signature of employee: _______________________________
RATING SCALE FORM EXAMPLERATING SCALE FORM EXAMPLE
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RATING SCALE FORMATRATING SCALE FORMATPROS AND CONSPROS AND CONS
- Easy to design- Easy to design
- Supervisors require - Supervisors require little to no training to little to no training to use themuse them
- Subjective in nature- Subjective in nature
- Often not based on - Often not based on measurable criteria measurable criteria
- Rater biases are - Rater biases are more likely to be more likely to be reflected reflected
PROSPROS CONSCONS
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CHECKLISTSCHECKLISTS
A list of behavioral descriptions A list of behavioral descriptions Requires the supervisor to check off behaviors that apply Requires the supervisor to check off behaviors that apply
to the employeeto the employee
When management assigns weights to different items on When management assigns weights to different items on the checklist according to each item’s importance, the the checklist according to each item’s importance, the result is called a result is called a weighted checklistweighted checklist
The weights allow the rating to be quantified so that total The weights allow the rating to be quantified so that total scores can be determined scores can be determined
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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. ________(1) 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 EXAMPLEWEIGHTED CHECKLIST EXAMPLE
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WEIGHTED CHECKLISTWEIGHTED CHECKLISTPROS AND CONSPROS AND CONS
- - The method is practical and The method is practical and somewhat standardized somewhat standardized
- General statements reduce the form’s- General statements reduce the form’s job-relatedness job-relatedness
- Doesn’t allow for different levels of - Doesn’t allow for different levels of performance performance
- Checklist items must be developed for- Checklist items must be developed for each job category each job category
- Rater biases are - Rater biases are more likely to be more likely to be reflected reflected
PROSPROS CONSCONS
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FORCED CHOICE METHODFORCED CHOICE METHOD
The The forced choiceforced choice method uses a scale or continuum method uses a scale or continuum that best describes the employee, using performance that best describes the employee, using performance factors such as job knowledge, work quality and quantity, factors such as job knowledge, work quality and quantity, attendance, and initiativeattendance, and initiative
This method requires the supervisor to select the one This method requires the supervisor to select the one best statement that most accurately describes how the best statement that most accurately describes how the employee performs the job tasks considered most employee performs the job tasks considered most important for successful job performanceimportant for successful job performance
This method is sometimes called an This method is sometimes called an adjective rating adjective rating scalescale
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Forced Choice Performance Evaluation Form
Employee: ____________________ Department: ____________Supervisor: ______________________ Date: ________________
Performance Factors Performance Rating
LowBelow
AverageAverage 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 sometimes superior is rarely contains mistakes
Work is consistently superior and never contains mistakes
FORCED CHOICE METHOD FORMFORCED CHOICE METHOD FORM
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CRITICAL INCIDENTS APPROACHCRITICAL INCIDENTS APPROACH
The The critical incidentscritical incidents method method focuses the manager’s focuses the manager’s attention on employee attention on employee behaviors that play a key role behaviors that play a key role in executing a job effectively or in executing a job effectively or ineffectivelyineffectively
This approach requires This approach requires supervisors to maintain a log supervisors to maintain a log or a diary in which they write or a diary in which they write down examples of incidents down examples of incidents that exhibit both acceptable that exhibit both acceptable and unacceptable job and unacceptable job performance performance
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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 DIARYCRITICAL INCIDENTS SAMPLE DIARY
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CRITICAL INCIDENTS APPROACHCRITICAL INCIDENTS APPROACHPROS AND CONSPROS AND CONS
Provides supervisors Provides supervisors with a detailed list of with a detailed list of behaviors that he can behaviors that he can discuss with the discuss with the employee explaining employee explaining which behaviors are which behaviors are desirable and which desirable and which require improvement on require improvement on the employee’s partthe employee’s part
WWhen improperly utilized, hen improperly utilized, ignores a large number of ignores a large number of behaviors that tend to fall behaviors that tend to fall somewhere between the somewhere between the extremes of poor and excellentextremes of poor and excellent
PROSPROS CONSCONS
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BEHAVIORALLY ANCHORED RATING BEHAVIORALLY ANCHORED RATING SCALESSCALES
Sometimes referred to as ometimes referred to as BARSBARS, is an , is an evaluation approach that combines elements evaluation approach that combines elements from both the forced choice and critical incidents from both the forced choice and critical incidents methods of evaluating employee performancemethods of evaluating employee performance
When using the BARS method, supervisors rate When using the BARS method, supervisors rate their employees along a continuum just as they their employees along a continuum just as they do with the forced choice and critical incidents do with the forced choice and critical incidents methods, but they use specific, named methods, but they use specific, named behaviors as benchmarks, rather than general behaviors as benchmarks, rather than general descriptions or traitsdescriptions or traits
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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 [ ] GoodPlans 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 [ ] UnacceptableShows no interest in working with others. Does not seek direction on how to improve.
BEHAVIORALLY ANCHORED RATING SCALE FORMBEHAVIORALLY ANCHORED RATING SCALE FORM
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ANOTHER FORM OF BARSANOTHER FORM OF BARS
The The behavioral frequency scalebehavioral frequency scale is another is another form of BARS. form of BARS.
Rather than rating specific, named Rather than rating specific, named
behaviors, this form requires the behaviors, this form requires the supervisor to indicate the frequency of the supervisor to indicate the frequency of the identified behavioral anchors, usually identified behavioral anchors, usually along a five-point scale from “almost along a five-point scale from “almost never” to “almost always”never” to “almost always”
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Employee: _________________________ Department: __________________
Supervisor: ____________________________ Date: ________________________
Behavioral Anchor: Dining Room Staff Supervision
Behavior Frequency
Always Frequently Occasionally Seldom
Engages in synergistic relationships between supervisor and staff members
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 FORMBEHAVIORAL FREQUENCY SCALE FORM
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BARS PROS AND CONSBARS PROS AND CONS
Their validity tends to be Their validity tends to be superior to methods that are superior to methods that are based on subjective based on subjective personality traitspersonality traits
But because they must be But because they must be created for each job, they can created for each job, they can be costly to develop and be costly to develop and maintain, especially for larger maintain, especially for larger hospitality operations with an hospitality operations with an array of jobsarray of jobs
BARS are somewhat complex to BARS are somewhat complex to develop and administer because they develop and administer because they address specific, job-related behaviorsaddress specific, job-related behaviors
PROSPROS CONSCONS
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SELF APPRAISALSSELF APPRAISALS Self-appraisals tendtend to be an effective method of to be an effective method of
performance evaluation when the goal is to further self-performance evaluation when the goal is to further self-development. This system works well when evaluating development. This system works well when evaluating supervisors and managerssupervisors and managers
When employees evaluate themselves, defensive When employees evaluate themselves, defensive behavior is less likely to occur and there is a motive for behavior is less likely to occur and there is a motive for self-improvementself-improvement
There is always the risk that the employee will either be There is always the risk that the employee will either be too lenient or critical when evaluating her own too lenient or critical when evaluating her own performanceperformance
The employee’s involvement and commitment to the The employee’s involvement and commitment to the improvement process is critical for this method to be truly improvement process is critical for this method to be truly effectiveeffective
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MANAGEMENT BY OBJECTIVES (MBO)MANAGEMENT BY OBJECTIVES (MBO)
This approach requires the supervisor to be directly This approach requires the supervisor to be directly involved in determining performance standards for involved in determining performance standards for his/her employeeshis/her employees
Ideally, the supervisor and the employee should jointly Ideally, the supervisor and the employee should jointly review the employee’s job responsibilities, identify the review the employee’s job responsibilities, identify the processes and results needed, and then determine processes and results needed, and then determine performance standards that will define how well the performance standards that will define how well the results are accomplished. results are accomplished.
In the best-case scenario, these goals are mutually In the best-case scenario, these goals are mutually agreed upon and objectively measurable. If both of agreed upon and objectively measurable. If both of these conditions are met, the employees are apt to be these conditions are met, the employees are apt to be more motivated to achieve their goals since they have more motivated to achieve their goals since they have actively participated in setting them actively participated in setting them
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ASSISTING EMPLOYEES WITH GOAL ASSISTING EMPLOYEES WITH GOAL SETTING USING MBOSETTING USING MBO
Management should Management should remember that four to six remember that four to six goals per rating period goals per rating period are usually sufficient, and are usually sufficient, and the goals should be the goals should be changed or adjusted as changed or adjusted as needed needed
One drawback to MBO is One drawback to MBO is that objectives are that objectives are sometimes either too sometimes either too ambitious or too narrowambitious or too narrow
This may result in This may result in frustration for employees frustration for employees or overlooked areas of or overlooked areas of performanceperformance
The MBO method of The MBO method of performance appraisal performance appraisal tends to be most effective tends to be most effective when applied to when applied to supervisors and supervisors and managersmanagers
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360-DEGREE APPRAISAL360-DEGREE APPRAISAL
Provides each employee Provides each employee the opportunity to receive the opportunity to receive performance feedback performance feedback from his supervisor, three from his supervisor, three to four co-workers, and to four co-workers, and even customers. even customers.
Most 360-degree Most 360-degree performance appraisals performance appraisals are also responded to by are also responded to by the individual employee the individual employee being evaluated in the being evaluated in the form of a self- form of a self- assessment. assessment.
Powerful developmental Powerful developmental method and quite method and quite different from traditional different from traditional manager- employee manager- employee appraisals. appraisals.
Can be used as a stand-Can be used as a stand-alone development alone development method. method.
Method tends to reduce Method tends to reduce the instances of rater the instances of rater bias. bias.
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EVALUATION INTERVIEWSEVALUATION INTERVIEWS
An An evaluation interviewevaluation interview occurs when the occurs when the supervisor and the employee meet one-supervisor and the employee meet one-on-one to discuss the formal employee on-one to discuss the formal employee performance appraisal performance appraisal
The goal is to give the employee feedback The goal is to give the employee feedback about past performance and to devise an about past performance and to devise an action plan when certain elements of job action plan when certain elements of job performance require improvement performance require improvement
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PREPARATION IS KEYPREPARATION IS KEY
Employee evaluations are such a Employee evaluations are such a critical activity of effective critical activity of effective hospitality management, the hospitality management, the supervisor or manager must be supervisor or manager must be preparedprepared
This might include reviewing the This might include reviewing the employee’s previous appraisals, employee’s previous appraisals, identifying specific behaviors to be identifying specific behaviors to be reinforced during the interview, and reinforced during the interview, and planning method for providing planning method for providing feedbackfeedback
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EFFECTIVE COUNSELING EFFECTIVE COUNSELING SESSIONSSESSIONS
Create good employee-employer Create good employee-employer relationsrelations
Ensure that the interview is done in a Ensure that the interview is done in a positive mannerpositive manner
Stresses the positive aspects of Stresses the positive aspects of employee performanceemployee performance
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LEGAL ASPECTSLEGAL ASPECTS
Performance appraisals Performance appraisals must be free from must be free from discriminationdiscrimination
Appraisal criteria, methods, Appraisal criteria, methods, and documentation should and documentation should be designed to ensure that be designed to ensure that they are all job-relatedthey are all job-related
An employee may challenge decisions made by managementAn employee may challenge decisions made by managementbased upon a flawed appraisal system in court because these decisions based upon a flawed appraisal system in court because these decisions often violate EEO lawsoften violate EEO laws
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SUMMARYSUMMARY
The performance The performance appraisal systemappraisal system
Uses of performance Uses of performance appraisalsappraisals
Informal and formal Informal and formal appraisal systemsappraisal systems
Rater biasesRater biases
Commonly used Commonly used appraisal methodsappraisal methods
The role of employee The role of employee counselingcounseling
Legal concerns Legal concerns regarding regarding performance performance appraisalsappraisals