Performance Management

  

If people are the greatest creators of value in organizations, then good performance management is critical for an organization’s success. Employees need to understand what’s expected of them, and to achieve those goals they must be managed so that they’re motivated, have the necessary skills, resources and support, and are accountable. Performance management aims to monitor, maintain and improve employee performance in line with an organization’s objectives.

What is Performance Management?

         Performance management, defined as a systematic process for improving individual, team and organizational performance. Performance management is the attempt to maximize this value creation and ensure that employees contribute to business objectives. It brings together many principles that enable good people management practice, including learning and development, performance measurement and organizational development.

As defined by Aguinis (2005: 2): ‘Performance management is a continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.’ Its five elements are agreement, measurement, feedback, positive reinforcement and dialogue.

        Effective performance management relies on both formal and informal processes. It involves planning – for example, defining and reviewing objectives, linking ways of achieving those objectives to business plans, and setting measures of success. These are often discussed in meetings between the line manager and employees, known as performance review or appraisal.

What is Performance Appraisal?

         Performance reviews, also called appraisals, form part of a holistic approach to managing performance. Performance appraisals are one important element in the broader set of processes that make up performance management. Their purpose is to identify areas for growth and improvement and inform suitable development plans; or inform administrative decisions on contractual aspects of employment (such as pay, bonuses, promotions or redundancy).

         A performance review provides a focal point for the consideration of key performance and development issues. The review should be rooted in the reality of the individual’s performance. It is concrete, not abstract, and it allows managers and individuals to take a positive look together at how performance can become better in the future and how any problems in meeting performance standards and achieving objectives can be resolved. Individuals should be encouraged to assess their own performance and become active agents for change in improving their results. Managers should be encouraged to adopt their proper enabling role: coaching and providing support and guidance (Armstrong, 2017)

Performance appraisal process

            Performance planning is based on performance agreements. Expectations are defined generally in role profiles that specify key result areas; the knowledge, skills and abilities (KSAs) required and the behavioral competencies needed to perform well. What has to be accomplished in key result areas can be defined in the form of objectives or targets. An important aspect of performance planning is the process of aligning individual goals with the strategic goals of the organization.

           The agreement at appraisal review stage may incorporate a personal development plan that provides a learning action program, which individuals are expected to follow with the support of their managers and the organization. It may include formal training but, more importantly, it will incorporate a wider set of learning and development activities such as self-managed learning, coaching, mentoring, project work and e-learning. If multisource assessment (360-degree feedback) is practiced in the organization this will be used to discuss development needs.

The benefits of performance appraisals in Hospitality Industry

For managers

A performance review is a two-way conversation used to guide, support and develop your team. It gives you:

• Insight into the individual and their career aspirations so you can be a fully supportive as a line manager and create a winning team
• Opportunity to be clear about the objectives and expectations you have set for your team, as well as gain feedback on your own performance

For individuals

Spending dedicated time together is crucial to building a successful manager/employee relationship. An open and honest conversation lets both parties understand where they stand.  It’s a chance to:

• Discuss career, development and growth aspirations
• Suggest how to make improvements within the team
• Learn about the aspirations and goals of the organization and how you fit in
• Share feedback on the manager’s performance.

For organizations

Future-focused organizations use performance reviews to establish the strengths and capabilities of the team, to:

• Assess suitability to fill roles within the organization
• Identify where skills and capabilities might need a boost
• Understand where further development support is required to help achieve organizational goals

How performance management impact on employee attrition in hospitality industry

             The delivery of quality service is one of the major challenges facing hospitality managers.  It is an essential element for success in the emerging and competitive global hospitality markets. Employees are a key element in this process as they represent the core of communication with hotel customers. Excellence in service quality is a mandate to achieve customer loyalty and retention which is the primary goal of hospitality business organizations (Ehigie, 2006).

              Human resource is the most critical resource for any organization in today’s highly competitive business environment. The primary task of any manager is to have an organization that functions effectively by its frontline personnel. To do so, employees must work efficiently and produce results that are beneficial to the organization (Cınar, Bektaş, & Aslan, 2011). In the same vein, satisfied employees create satisfied customers and vice versa (Zenithal et al., 2006). In the performance appraisals process, it evaluates the quality of employee performance, it influences either the success or the failure of the organization (Kumbhar, 2011).

                In the hospitality industry, usually there will be two appraisals conducting per year. First one is in six months and second one happening at the end of the year. Reviews can involve face-to-face conversations between managers and their staff, 360-degree feedback, and assessments against performance targets. Performance management is one the key area of employee attrition. Managers are expected to conduct a fair performance appraisal for everyone. When there is a proper appraisal process in place, it will help the employees to identify their strengths and weaknesses in their job role. Accordingly, the supervisor implements a performance development plan in line with organizational goals. It will motivate the employees with regards to the career development and lead to reduction in employee attrition.

 

References

Armstrong, M & Taylor, S. (2014) Armstrong’s handbook of human resource management practice (13^th ed). Kogan Page Ltd [Online]. Available at www.koganpage.com . Accessed on 28^th May 2021.

CIPD. (2021) Performance management: an introduction. Chartered Institute of Personnel and Development 2021 [Online]. Available at www.cipd.co.uk . Accessed on 28^th May 2021.

Institute of Hospitality. (2018) Performance reviews: A guide for hospitality leaders. Institute of Hospitality [Online]. Available at https://www.instituteofhospitality.org/knowledge/hot-topic/topic-of-the-month/ . Accessed on 28^th May 2021.

Tag-Edeen, A. & Abdien, M. K. (2012) The impact of effective employee performance appraisal system (EEPAS) on quality of customer service in hotel operations, pp. 2-5 [Online]. Available at https://www.researchgate.net/publication/281646805_The_impact_of_effective_employee_performance_appraisal_system_EEPAS_on_quality_of_customer_service_in_hotel_operations . Accessed on 28^th May 2021.