Performance Appraisal's Impact on Employee Motivation

This report investigates the impact of performance appraisal on employee motivation within the hospitality industry. It begins with an introduction outlining the aim, objectives, and research questions, followed by a literature review covering performance management, motivation theories (Herzberg, Maslow, Vroom, and Taylor), and the relationship between performance appraisal and motivation. The research methodology is quantitative, analyzing data to determine the effects of performance appraisal on employee motivation. The findings are discussed, highlighting the impact of performance appraisal on employee engagement, the importance of fair and accurate appraisals, and the role of HR strategies. The report concludes with recommendations, a summary, and a reflection on the research process. The report addresses key areas such as fairness, perceived accuracy, appraisal satisfaction, and the tools used to encourage employees. It also examines the significance of employee engagement and the impact of poor HR strategies. The research aims to identify the most effective performance management strategies and the gaps within them.

Impact of Performance Appraisal on
Employees Motivation in the Hospitality
Industry

ABSTRACT
The major aspect to this investigation is to acknowledge about the impact of performance
appraisal over employee's motivation as within the hospitality industry. It clearly provide better
knowledge about the significance and importance of performance appraisal that has direct impact
over working performance and its productivity as working nature of employee is directly
dependent over different factors as wage, salary, incentives and recognition that is offered by
business within certain period of time. In this different questions are covered about different
tools that is used to control and encourage working employee's, importance of employee's
engagement and its impact on HR strategies, performance appraisal and its acceptance,
employee's motivation and its dependency over performance appraisal and qualitative basis to
achieve higher success while working in hospitality industry. In first chapter introduction is
covered that provide brief significance about performance appraisal and employee motivation
along with suitable designing of aims, objectives and research questions. In addition to this brief
summary about literature review is conducted which is processed within support of secondary
data that is collected from books, journals, articles, publications and many other sources as well.
In support of this suitable information about performance management and its theory, model and
its importance within hospitality industry. Along with this motivation and its theories is
summarised as like herzberg's dual theory, Maslow's theory, Vrooms theory and Taylor's
motivation theory. Moreover, performance appraisal is considered that encourage employee's and
its accountability with the better analysis of poor HR strategies. In another chapter research
methodology and its methods is analysed that provide better clarity about methods and approach
that make research processing more easy and comfort. In this quantitative result is conducted that
provide better information with support of statistics in which authentic outcome is collected in
timely frame. In the next chapter, complete data is analysed that provide sustained clarity and
interpreted outcome in timely constrained. In last recommendation is included that provide better
information about loop holes that is covered with support of better strategies.

Table of Contents
ABSTRACT.....................................................................................................................................2
TOPIC..............................................................................................................................................4
CHAPTER 1....................................................................................................................................4
1. 0 INTRODUCTION ...................................................................................................................4
1.1 Aim...................................................................................................................................4
CHAPTER 2....................................................................................................................................6
2.0 Literature Review.......................................................................................................................6
2.1 Performance Management................................................................................................9
2.2 Performance appraisals and its importance......................................................................9
3.0 Motivation .....................................................................................................................10
4.0 Performance appraisal and motivation ..........................................................................14
4.1 Fairness ..........................................................................................................................14
4.2 Perceived accuracy ........................................................................................................14
4.3 Appraisal satisfaction ....................................................................................................14
3.0 Research methodology and methods..............................................................................15
CHAPTER 4..................................................................................................................................17
Data analysis.........................................................................................................................17
4.1 Discussion of findings....................................................................................................20
CHAPTER 5..................................................................................................................................27
Recommendations................................................................................................................27
Summary of thesis................................................................................................................28
Conclusion............................................................................................................................28
CHAPTER 6..................................................................................................................................29
Reflection.............................................................................................................................29
REFERENCES..............................................................................................................................30

TOPIC
To study the Impact of Performance Appraisal on Employees Motivation in the
Hospitality Industry. A case study on hospitality industry.
CHAPTER 1
1. 0 INTRODUCTION
The term employee or workforce motivation is explained as energy, enthusiasm, amount
of creativity to demonstrate work commitment of an individual towards their role and
organisation. Motivation is totally engaged about how an individual feel in the way of achieving
professional and personal goals. Individuals who are engaged in organisation understand about
roles and responsibilities that directly proportional towards organisation success. Along with
this employee's motivation is explained according to the level of energy, persistence and
commitment towards job role (Bazzoli and Curcuruto, 2020). This report is written from
perspective of hospitality sector and it is sector that it is well-known for their accommodation,
food and room services. Further, this report highlights on research aim, objectives and question
to understand importance of performance appraisal on employee motivation. Along with this
literature review and motivation definition will be included in this report to understand
workforce perspective towards job role. Hospitality industry is explained as a part of service
sector and this is comprised with sub-sector and it undertake about lodging service, events,
tourism and transportation and this is understand by main goal of service and it is used to create
and generate better support for organisation. The main core of hospitality industry define about
different activities through which goal and objective of service sector is improved for completion
of work with decided approach. Motivated employee's is explicated about overall roles and
responsibilities and it states about individuals roles to perform and complete work with motive of
enhancing motivational techniques to engage more number of individuals and it aids persons to
complete their task with facilitating and performing their roles in an organised manner.
1.1 Aim
 The aim of this research is to examine the strategy of different types of businesses.
 To identify the effectiveness of their performance management strategy.
 To demonstrate the gaps in the performance management system and to find the
connection between the gaps and bad performance.

Objective
 To find out what are the most common tools used in dynamic environments like
hospitality and what are the frequency of performance appraisal by November 2020.
 To identify and examine the main employee motivators in the hospitality industry and
how to meet with them in order to increase efficiency by November 2020.
 To evaluate barriers that managers can face during the process of performance
management and to carry out the reasons that can lead to the failure of the process e.g
firing someone by November 2020.
1.2 Research questions
 Performance appraisal: a tool for controlling or to encourage employees?
 Why it is important to listen to employees and to engage with them: the impact of poor
HR strategies.
 Why performance appraisal meetings go wrong?
 How employees' motivation is affected by performance appraisal?
 How to achieve the required performance? This research novel it is qualitative and
related to the hospitality industry
1.3 Research Summary
With understand of above topic it is understand that employee's motivation perform an
important role and this aids management to perform work with more efficiency and
effectiveness. Performance of individuals is also engaged to complete their task according to
decided roles and responsibilities which support persons for completion of work with decided
roles. The main aim to conduct this research is to analyse and understand about performance
through understanding performance appraisals method (Ahmad and et. al., 2019). It is also used
for completion of task with decided motivation perspective and methods that enhance and
improve morale of employee's. This also refers persons generate as well as examine importance
of motivational aspects among organisation. Their are different strategy aspects relates with
organisation that undertake to analyse about business roles to identify and analyse effectiveness
of company.

CHAPTER 2
2.0 Literature Review
Most common tools used in dynamic environments like hospitality
From the perspective of Bianca Esmond, 2019 hospitality industry is face issue due to
dynamic environment and it constantly move and engage towards largest aspects which is used
by restaurants and hotels to perform their work with decided roles. Organisation define and
manage about opportunities and it engage about implement of management perspective that
enhance and create ways to perform work with long-term customer base. Along with this
individual complete their role with engage and develop technology perspective in company roles
through which task is complete as per customer experience (Chiu, 2018). Some latest trends
among hospitality organisation to perform work are relates with technology that improve
advance factor related with technology. Wi-Fi infrastructure is required by hotels and it is used
for managing work with use of devices that undertakes about phones, tablets, computer etc. This
aids towards generate of aspects and it is used to connect with internet. Moreover, hotel guest
expect to generate and connect with individuals with low interruptions. Digital conference
facilitates and offer about effective facilitates and it's use for performing task such as managing
meetings and conferences. Digital aspects aids persons to engage project for equip technical
facilities that increase motivation among workforce to perform their role with more efficiency.
Why it is important to listen to employees and to engage with them: the impact of poor HR
strategies.
As per according to the viewpoint of Mason Stevenson, 2019, employee engagement is
used to process better values as with this transformation of work and professionalism is
continues with relation to work. In this different strategies are developed under which employee's
engagement is favoured as by reflecting suitable concern towards working development and its
advancement. The HR of businesses maintain clear focus and target to develop and design
suitable strategies as with this strong level of engagement is processed in systematic manner. In
this various strategies and initiative is induced through which effective designing and
development of strategies is progressed those are in favoured of business growth and
development (Alsuwaidi and et. al., 2020). It also get improvise personal and professional
development under which level of engagement and its productiveness get advanced without
harnessing any roles and responsibilities within working standards. In this ability of employee to

express themselves cognitively, physically and emotionally under which performance
management and advancement is increases in systematic manner. In this three psychological
situations is consider that allows and permit employee's engagement as in terms of
meaningfulness, safety and availability as it improvise physically and mentally expression of self
advancement and improvisation. It has favourable impact over high level engagement under
which culture development and different opportunities get developed that enhance rate of
retention and attraction of employee's engagement.
Why performance appraisal meetings go wrong?
According to the viewpoint of Susan M. Heathfield, 2020, the management of the
business went wrong at different situations as with concern of performance appraisal and it has
direct relation to one-to-one meeting for support of appraisals interaction. It rarely create and
develop profitable aspect as with this leadership team and staffing get required to considerate as
with this proficiency among working is developed in constrained mode. To fix various issues
business make ensure to worked over performance appraisal that is pertained on annual basis in
which employee's get feedback as per requirement through which planning to achieve goal is
frequently get enhanced with productiveness (HASANPOOR, 2018). In this need of an
individual to develop and design certain planning is processed on regular basis. Along with this,
adequate coaching and mentoring is offered under which balanced level of contribution to
enhanced employee's ability and productivity also get increases in successful manner. For this
expectation of employee's is enhanced as from there manager and for this constant change and
modification is processed as per constant evaluation and contribution. The working capabilities
of employee's is advanced and in this if they didn't get adequate response about their working
then they get affected and it has negative impact over workers productivity. Performance
appraisal is directly be dependent with employee development in which direct focus is
maintained towards skills and abilities development as it encourage development capabilities
under which rate of accomplishment of objectives and aims become faster and in timely basis.
How employees' motivation is affected by performance appraisal?
As per according to the viewpoint of Anam Ahmed, 2020, the success of an organisation
is dependent over the level of motivation and success rate as with this constructive feedback is
offered through which employee's performance and productivity get advanced. Within modern
business, workforce or employee experience perform an important role and it is used in

completion of task with motive of managing work through which individuals complete project
with more efficiency. Increase in communication is recognised as an important factor and it aids
persons to perform their work with high motivation. The term communication is explained as a
word and this aids business to manage and perform work by increasing motivation among
workforce (Kim and Sung, 2020). The term communication also aids persons to complete task
with new ideas. By recognising achievement perspective this is understand workplace motivator
is used for improving and enhancing experience that raise bar of workplace as all individuals are
focused towards implement and complete their role in an organised and efficient manner. It
reflect job and role description that uphold suitable advice as with this balanced level of accuracy
towards working is processed to attain suitable accessibility. It enhance the effectiveness towards
goals and target achievement through which wider vision and mission is attained with better
responsibilities. The appraisals is provided on the basis of merit basis that raise excellence
opportunities that is dependent over compensation, bonus and other benefits as well.
How to achieve the required performance related to the hospitality industry
According to the viewpoint of Francine Haliva, 2020, the service culture is processed
with support of collective effort as with this standardised services is provided so as to emphasis
exceptional capabilities and experience in consistent manner. It is also get processed with certain
repeatable and manager develop various strategies and functions for event situation with
appropriateness. For this favoured services are delivered to guest as with this profession services
are delivered and progressed in support of familiar services. In terms of new and advancement
services various innovation, creations, realities is boost with combination of collective effect that
also get facilitate overall experience within competitive marketplace. There are different ways
that is used to improvise quality services as hospitality industry make ensure to treat all guest as
VIP under which coaching to staff, attentiveness, response towards sense of urgency also
developed in regardless of status as with this moderate level of changes is induced with
adequateness (King, 2020). For this priority is favoured towards one time training and promotion
that collectively offer high quality training that also requires time commitment along with
technological implementation. The business also offered personalised services to its customers
during which customer's felt more connected and also get recognised as per availability of
valuable information and modification in balanced mode. For this working accessibility and its

attractiveness is improvised as by maintaining and creating long lasting performance in positive
manner.
2.1 Performance Management
It is a procedure that is usually followed by the business as in order to ensure about to
meet standardised outcome and target with better effectiveness. It assist the business to ensure
that better output is achieved in organised manner as with this effective and efficient changes are
induced as by enhancing and developing performance management.
Performance appraisal is referred to review, evaluation, development, discussion about
performance as with this overall job performance is evaluated and documents that is also be used
in future period of time. It usually contribute towards better evaluation of achievement, growth,
skills, abilities and perfections. It usually process with support of three functions as provide
appropriate feedback, serve modified behaviour towards working habits and to offer suitable
future for job assignments.
Performance appraisals models is usually segmented and classified into different stages
as like planning, monitoring, developing, rewarding and rating (Lin and Kellough, 2019). In this
the fundamental goal is to attain and create measurable as with this long term sustainability and
wider accessibility is processed with productiveness.
Performance appraisals tools as like management by objectives in which management of
business ensure to develop standardised objective that is achieved within stipulated period of
time, 360 degree feedback as with this before processing appraisal feedback is taking from all the
different individual's as with this feedback is collected from different individual as with this
favourable outcome is attained in successful manner.
2.2 Performance appraisals and its importance
It is always be important for the long term sustainability and growth of business as it allows to
provide positive feedback and effectual response under which different areas get identified as
while developing various areas of improvement. In this training and planning is progressed under
which skills and abilities get developed that motivate employee merit dependence compensation
system.
Performance appraisals role is basically resolved as by offering and providing suitable
feedback to all as it is dependent with relation to their performance, changing behaviour and
modification towards working habits is getting improvised along with this suitable information is

delivered to manager thus they get judge all the future related assignments with adequateness.
The source of danger is that there is a rating biasses which is dependent as per favouritism,
rating inflations under which scoring and rating inflations is processed under which overall
performance is advanced in productive manner (Nazaruddin and et. al., 2020).
Performance appraisals system in hospitality is always be powerful for management as
with this valuable information and quality services is processed. In this decisive ability is also
advanced that offer better success and both tangible and non tangible benefits. It is used to
advanced planning and long term development as with this better outcome is achieved in certain
time period.
3.0 Motivation
It is a basis that is always be essentials and consist of a process in which initiation,
guidance, maintenance is programmed towards goal oriented behaviour. It involve various
reasons as like actions, willingness and goals that collectively fulfil the need of satisfaction.
Employee's motivation reflects sustained level of commitment, persistence and creation
which is processed during the process of employment (Pagan and Malo, 2020). It induced higher
level of involvement and engagement under under employee's productivity and performance
credibility is advanced in productive manner.
Herzberg’s dual theory: It is a motivational theory that is dependent over motivation-
hygiene and also known as two factor theory under which job satisfaction and its dissatisfaction
is embraced with relation to independent factors within working place. In this two factors is
considered that adjust employee's motivation by which they get retain and attract within an
organisation for longer period of time and these factors are as explained below as:

 Motivators: It is a factor that basically consist of balanced level of processing that
encourage employee's and other workers to work harder as while accomplishing both
short and long term goals and target. Hygiene factors: These are those factors that didn't get motivate others to work harder as
it is relative to cause and become demotivated that furthermore has direct impact over the
working consequences and abilities as of in direct basis (Suttikun, Chang and Bicksler,
2018).
Maslow Theory: It is a theory that is established by Maslow's hierarchy of needs as it
compromise with concern of five tier that fulfil human need with parallel depiction of need in
form of pyramid. It also assist the business to fulfil basic requirement of employee's as with this
ability to make direct and positive change in direct basis. It is also be dependent over different
factors that is as explained below as:
Illustration 1:
https://expertprogrammanagement.com/2018/04/herzbergs
-two-factor-theory/

 Physiological needs: It is a need that considerate biological requirement as food, air,
water, shelter, warmth, sleep etc. In this a basic requirement that is required to be fulfil in
order to satisfy basic need and for that business offer adequate salary and wage to its
employee's. Safety needs: It is a need that is related to safety and security as with this individual get
predict and control their life in balanced mode (Selvarajan, Singh and Solansky, 2018).
For instance, financial security, emotional security, order and law, health and well-being
is also be considered and it is fulfil by business as by offering timely promotion. Belongingness needs: It is a mixture of safety and psychological needs that is required to
fulfil as by involving balanced level of relations through which employee behaviour is
motivated. It consist of trust, acceptance, affection and love. For this business maintain
sustained target towards development of positive culture in which employee felt more
connected to each other as with this long term sustainability is achieved with
adequateness. Esteem needs: It is another stage within which dignity, achievement, independence and
mastery is considered along with the desire to get respect from others (Kyeremeh and
Pimpong, 2018). In order to fulfil this business offer promotion and authority as with this
profitable ending is resulted in systematic manner.
Illustration 2: https://www.simplypsychology.org/maslow.html