Rationale for using performance appraisals to improve performance levels

This report discusses the rationale for using performance appraisals to improve performance levels in organizations. It explores the characteristics of effective and ineffective appraisal design and implementation, the reactions of employees to performance reviews, and the ability, motivation, and opportunity of line managers to design and implement appraisals effectively. The case study of Cavendish Hall Hotel is used as an example throughout the report.

Rationale for using
performance appraisals to
improve performance levels

Table of Contents
INTRODUCTION...........................................................................................................................3
How and to what extent performance appraisals might improve organisational performance
(in ‘theory’ and in ‘practice’)......................................................................................................3
The characteristics of effective and ineffective appraisal design and implementation...............4
The reaction of employees to the performance review...............................................................5
The ability, motivation and opportunity of line managers to design and implement the
appraisal effectively....................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENECES..............................................................................................................................7

INTRODUCTION
Performance appraisal is determined as the effective practice in which HR manager
regularly reviews overall performance of employees in order to find out their actual contribution
in the growth of the company in rightful manner (Xie, So and Wang, 2017). It also determined as
the employee appraisal in which they are reviewed and evaluated at regular basis so that
company could grow in rapid manner as it motivates employees and improves their performance.
This report is based on the case study of Cavendish Hall Hotel. In this, it has been seen that the
respective hotel is going through various issues related to manpower that is placing negative
impact over the performance of hotel.
In this report, a detailed discussion will be made on performance appraisal and its
influence over the improvement of organisational performance. At next, it provides explanation
on different characteristics of effective and ineffective appraisal design and implement ion.
Furthermore, reaction of employees to the performance review will be illustrated. At last,
detailed discussion will going to be made on ability, motivation and opportunity of line managers
to design and implement the appraisal effectively.
How and to what extent performance appraisals might improve organisational performance (in
‘theory’ and in ‘practice’).
Performance appraisal plays essential role in the employee performance as well as their
attitudes towards organisational goals and objectives. If the activity is performed in effective
form and perceived by employees in rightful manner then it influences employees to perform the
same task in more adequate manner. This simply contributes in the improvement of
organisational performance too (Viglia, Minazzi and Buhalis, 2016). In context of the present
case study, it has been analysed that the performance of the Cavendish Hall Hotel is declining
day by day. The main reason behind was that its employees were not performing their work in
appropriate way as they are not satisfied with the managers. This negative relation with the
manager was directly hampering employees performance which in returns affects Cavendish
Hall Hotel performance too. The HR manager has also reviewed their overall appraisal system in
order to check out that whether they are in default from their own side or not. In this, they found
that their appraisal system was good but still for influencing interest of employees towards them
in more adequate manner manager believes in practising new methods like result oriented,
absolute and comparative method reviewing employees performance in more adequate manner

so that they can improvise performance of their hotel in adequate manner. Incorporation of these
practices within the hotel will help respective hotel in improvising their performance as they are
able to review their existing workforce in better manner (Kim and Phetvaroon, 2019). In addition
to this, it later said that performance appraisal could improve performance of Cavendish Hall
Hotel in the higher extent as it is developing knowledge of manager about actual scale of
employees performance that whether they are performing in effective manner or not. It also
informs manager about requirement of training and development for employees according to
their specified job roles.
Apart from this, it can be later said that if employees are getting regular based reviews on
their work then it is easier for them to improve their performance. Along with this, they can also
ask manager about the required amenities that could help them in the completion of their project
in rightful manner (Melián-González and Bulchand-Gidumal, 2016). In addition to this, it
contribute to higher extent level in the growth of their business performance as they are getting
feedback on their performance which is improving them at time to time effectively.
The characteristics of effective and ineffective appraisal design and implementation.
Characteristics of effective appraisal design and implementation
It is highly important for business managers especially HR manager to implement
performance appraisal practices in rightful manner. With reference to current case study of
Cavendish Hall Hotel, it can be said that main characteristic of implementing present
performance appraisal practices are stated as below:
Objectives should be clear: This is determined as the important characteristic which
means that HR manager of Cavendish Hall Hotel must clearly define objectives to each and
every employees in order to take things more clearer.
Economical and less time consuming: The appraisal plan must be cost effective and
less time consuming so that employees do not waste their time on it (Zhao, Xu and Wang, 2019).
Characteristics of ineffective appraisal design and implementation
Non clear objectives: In ineffective appraisal, actual goals and objectives are not clear to
the employees which directly diverts mind of employees from the main motive and negative
influences their performance.
Expensive and time consuming process: Ineffective appraisal practices are
implemented negatively. The main characteristics of these practices is that it is time consuming

and as well as expensive which ultimately places negative impact over the organisations
performance.
According to the overall information specified in the above section, it can be said that HR
manager of Cavendish Hall Hotel must follow and comply with the characteristics of effective
performance appraisals as well as its implementation within the hotel. This will directly help
them out in improving employees performance which will also provide support in the attainment
of organisational goals as well as objectives in rightful manner.
The reaction of employees to the performance review
According to the information provided in the case study, it has been analysed that
reactions of employees towards performance review were looking that they are not satisfied with
the hotel top management team. These employees has presented different reactions towards the
same on the basis of their own experiences within the hotel (Berezina and et. al., 2016). Around
63% percent people has that they are aware about their work or job responsibility which is being
expected by their top management team. Whereas, very few individual has expressed that they
have received recognition for effective performance in 7 days within the hotel. Also, few among
hotel staff have expressed that their superiors are rarely caring about them as the person at
workplace. In addition to this, one fourth of the employees believes that their opinions are not
taken into consideration at workplace as management feels that employees are not having good
knowledge about the same. Some of the employees also thinks that mission of the company
makes them feel that their job is highly important and they must perform in effective form for
attaining organisational goals in quicker manner.
On the basis of overall information analysed from the employees reactions towards the
performance review it can be said that these employees thinks that their superiors are mainly
concerned with the growth of the company rather than the development of employees (Hsiao,
Chuang and Huang, 2018). The managers believes in reviewing performance of employees on
the basis of the provided task. Along with this, managers are giving less preference to
development and growth of employees.
The ability, motivation and opportunity of line managers to design and implement the appraisal
effectively
Performance appraisal is regarded to be the constant review of the performance delivered
by employees and as a result their overall contribution to the achievement of goal by firm. It is

basically analysing the skills, knowledge and output given by employees with a view to
determine whether or not their performance is aligned with the expectations and requirements of
company. In this regard, it is identified that the line manager within Cavendish Hall Hotel should
design and develop an effective appraisal system (Ho and et. al., 2016). Hereby, the focus should
be on recognising and rewarding those employees who perform in an effective manner for the
accomplishment of corporate goals and objectives in due course of time. In this regard, it is
essential that the line manager of respective hotel constantly analyses and evaluates the output
delivered by different individuals so that the worthy ones can be given appraisals and the ones
who are not productive are posed to strict actions. Hereby, it is important that the line manager
utilises his observatory and analytical skills in order to design an appraisal system whereby
employees can get motivation and encouragement at due intervals of time.
CONCLUSION
On the basis of above mentioned report, it can be said that performance appraisal is an
effective practice that helps company in reviewing performance of its employees and improving
organisational performance in appropriate manner. It has been later explored that employees
reacts different towards the performance review process this might positive or negative. It simply
varies person to person.

REFERENECES
Books and Journals
Xie, K.L., So, K.K.F. and Wang, W., 2017. Joint effects of management responses and online
reviews on hotel financial performance: A data-analytics approach. International
Journal of Hospitality Management, 62, pp.101-110.
Viglia, G., Minazzi, R. and Buhalis, D., 2016. The influence of e-word-of-mouth on hotel
occupancy rate. International Journal of Contemporary Hospitality Management.
Kim, Y.J., Kim, W.G., Choi, H.M. and Phetvaroon, K., 2019. The effect of green human
resource management on hotel employees’ eco-friendly behavior and environmental
performance. International Journal of Hospitality Management, 76, pp.83-93.
Melián-González, S. and Bulchand-Gidumal, J., 2016. A model that connects information
technology and hotel performance. Tourism Management, 53, pp.30-37.
Zhao, Y., Xu, X. and Wang, M., 2019. Predicting overall customer satisfaction: Big data
evidence from hotel online textual reviews. International Journal of Hospitality
Management, 76, pp.111-121.
Berezina, K., Bilgihan, A., Cobanoglu, C. and Okumus, F., 2016. Understanding satisfied and
dissatisfied hotel customers: text mining of online hotel reviews. Journal of Hospitality
Marketing & Management, 25(1), pp.1-24.
Hsiao, T.Y., Chuang, C.M. and Huang, L., 2018. The contents, determinants, and strategic
procedure for implementing suitable green activities in star hotels. International Journal
of Hospitality Management, 69, pp.1-13.
Ho, A.D., Arendt, S.W., Zheng, T. and Hanisch, K.A., 2016. Exploration of hotel managers'
training evaluation practices and perceptions utilizing Kirkpatrick's and Phillips's
models. Journal of Human Resources in Hospitality & Tourism, 15(2), pp.184-208.