Impact of Performance Appraisal on Holiday Inn's Business Operations

This research project analyzes the impact of performance appraisal on the business operations of Holiday Inn. The study begins with an introduction outlining the research problem, aim, objectives, and questions. It then delves into a literature review, exploring the concept of performance appraisal, its impact on employee working, and the challenges Holiday Inn faces during its implementation. The research methodology is discussed, followed by data analysis and interpretation. The report concludes with recommendations and a conclusion, providing insights into how performance appraisal affects employee motivation, productivity, and the overall success of Holiday Inn. The study highlights the importance of performance appraisal for enhancing employee performance and achieving organizational goals.

Research Project

Table of Contents
TITLE..............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
1.1) Overview of the Study.........................................................................................................1
1.2) Background of Holiday Inn.................................................................................................1
1.3) Statement of Research Problem...........................................................................................2
1.4) Aim of the Study..................................................................................................................2
1.5) Research Objectives.............................................................................................................2
1.6) Research Questions..............................................................................................................2
1.7) Rationale of the Research....................................................................................................2
1.8) Statement of Problem...........................................................................................................3
1.9) Gantt Chart...........................................................................................................................3
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
2.1) To Know About the Concept of Performance Appraisal.....................................................4
2.2) Impact of Performance Appraisal on the Working of Employees of Holiday Inn..............5
2.3) Challenges Faced by Holiday Inn During Carrying out Performance Appraisal of
Employees...................................................................................................................................6
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................7
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION......................................................9
CHAPTER 5: RECOMMENDATION AND CONCLUSION.....................................................19
5.1 Recommendations...............................................................................................................19
5.2) Conclusion.........................................................................................................................19
REFERENCES..............................................................................................................................20

TITLE
“To analyse the impact of performance appraisal on the business operations of an
organisation. A case study on Holiday Inn.”
INTRODUCTION
1.1) Overview of the Study
Performance Appraisal can be defined as the process under which the employees are
provided with some kind of increment in the form of monetary amount or non monetary benefits
based on their performances. The following trend is followed in many organisations that helps in
the growth and development of their organisation (Saraih and et. al., 2017). It also helps in the
increment in the performances of their employees as this has become a source of their motivation
in the modern era. Performance of employees are measured in many ways and for the regular
motivation of their employees, it is important for every organisation to analyse the needs of their
employees and on the very basis, the best service could be provided to them according to their
needs. The company chosen for the completion of this assignment is Holiday Inn. It will make
focus on the impact of performance appraisal on the performance of an organisation. This
organisation has implemented this process in the working as it provides their employees with
extra pays in order to make increment in their performances so that the customer satisfaction
could be increased.
1.2) Background of Holiday Inn
Holiday Inn was founded in the year 1952 and is headquartered in Denham,
Buckinghamshire, United Kingdom. It is the subsidiary of the InterContinentals Hotels Group
and the founder of group was Kemmons Wilson. In 2016, the existing number of locations of the
Hotel were around 1145. it provides various kinds of services to their customers such as fooding,
lodging, conventions, meetings and many more services considering about the satisfaction of the
customers (Sabiu and et. al., 2019). The first hole of the organisation was opened in the year
1952 which was named as “ Holiday Inn Hotel Courts”. The second hotel with this names was
opened in the year 1953 and later on the business of the Hotel want on expanding.
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1.3) Statement of Research Problem
The main problem faced by Holiday Inn is related to the low level performance of
employees which was impacting negatively on the performances of employees. In order to
overcome this problem, Holiday Inn has implemented this strategy in order to increase the
motivation, dedication, efficiency level and performance of employees by providing them
performance appraisals in and according to their needs.
1.4) Aim of the Study
The main aim of this study is “To analyse the impact of performance appraisal of
employees on the business operations of an organisation. A case study on Holiday Inn.”
1.5) Research Objectives
 To know about the concept of Performance Appraisal.
 To determine the impact of Performance Appraisal on the working of Employees of
Holiday Inn.
 To acquire knowledge about the challenges faced by Holiday Inn during carrying out
Performance Appraisal of employees.
1.6) Research Questions
 Do you know about the concept of Performance Appraisal?
 What is the impact of Performance of Performance Appraisal on the working of
employees of Holiday Inn?
 What are the possible challenges faced by Holiday Inn during carrying out Performance
Appraisal of employees?
1.7) Rationale of the Research
The main reason behind choosing this topic is related to the low performance of
employees in providing services to the customers that has impacted upon the customer
satisfaction level and brand image of the organisation (Phin, 2015). The employees have lost
their interest in working and with the help of performance appraisal it will be possible for the
organisation to provide their employees with a reason to work more effectively and efficiently.
This will help in increasing the performance of employees and their motivation level so that they
could also contribute towards the growth and development of Holiday Inn.
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1.8) Statement of Problem
The problem faced by the company is related to the outcome of the working of
employees which is very low and unjustifiable. This has impacted adversely on the working of
the employees of the organisation and along with this it has also impacted upon the brand image
and customer satisfaction (Gu and Nolan, 2017). So this problem of low performance of
employees and decreased customer satisfaction level has made Holiday Inn to implement the
processes of Performance Appraisal in the organisation for making improvement in the customer
satisfaction and performance of employees in the company.
1.9) Gantt Chart
Gantt Chart can be defined as the chart which is used for the purpose of production
control tool. The following frequency shown is used in the project management (Mone and
London, 2018). In other words, it can be said that Gantt Chart is the graphical illustration of the
schedule that helps to plan, coordinate and track the specific tasks in the project on which the
organisation is working.
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CHAPTER 2: LITERATURE REVIEW
2.1) To Know About the Concept of Performance Appraisal
According to Shma 2013, Performance appraisal refers to the systematic evaluation of
personality and employees performance by the superiors. It is the formal procedure through
which contribution of an individual in the working of an organisation can be known in terms of
qualities and respective job. Performance appraisal can be done by measuring the pays of
employees and then comparing it with targeted plan. Moreover performance appraisal helps the
employers to know about the strength and weakness of the employees so that they can be placed
at the right job according to the capabilities. Moreover by doing so a proper feedback can be
provided to the employees according to their performance so that they able to know the point
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where they are lacking the most. Though it is a lengthy and time consuming process but is also
considered as a investment for the company as through this proper training and development
programmes are conducted which helps in framing of present as well as future development
programmes. Also effective communication between employers and employees is very important
and through performance appraisal employers got to know abut the skills of subordinates which
able to create trust and confidence in the minds of employers. It is very important for
organisation to use proper tools and techniques for performance appraisals so that the
performance can be easily known. Holiday Inn is required to use performance appraisals in
order to motivate and encourage employees so that timely targets can be achieved. Apart from
this it also helps in maintaining a proper coordination between superiors and subordinates that
helps in increasing the morale of employees. Thus it can be said that performance appraisal is
considered as a part of performance management which helps a company in gaining of a
competitive advantage.
2.2) Impact of Performance Appraisal on the Working of Employees of Holiday Inn
According to George N. Root III 2019, performance appraisal is consider as one of the
most important tool for the career development of the employees of Holiday Inn. It does not only
deal with eliminating the issue of quality work but also encourages the employees to contribute
more to the development of individual as well as organisation. The performance appraisal in an
organisation help in motivating the employees that help them to improve their productivity
which also result in reducing the labour turnover. Performance appraisals also enable the
employees to clearly identify the goals and objectives which automatically boost the
performance of employees toward the best completion of a work. If Holiday Inn is having the
detailed information about the performance of an individual in an organisation it will become
very easy for a company to make business decisions more easily. The performance appraisal will
tells a detail information abut the area where there is a need for requirement thus it always
encourage the employees of the company toward working well. Through appraisal employees
know how theirs good performance affect the overall working of an organisation and thus it will
help them to perform much better keeping in mind about the overall company context. Holiday
Inn should provide training and development programmes to the employees so that their
performance can be improved and also they are encouraged toward achieving of goals and
objectives of the company. Also it is required for them manager of Holiday Inn to keep the detail
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information about the challenges faced b y an employees in the year and can be presented at the
time of appraisal.
2.3) Challenges Faced by Holiday Inn During Carrying out Performance Appraisal of Employees
According to Chiris Joseph 2019, Performance appraisal is medium through which
employers are able to provide constructive feedback to their employees on the basis of their
performance. By following a proper set criteria of rating any employees the fairness in the
process can be developed. There are some of the challenges faced in Holiday Inn for carrying out
the performance appraisals are as follows:
 Performance appraisal performance can sometimes make employees uncomfortable as it
is not possible for them to work under high pressure always. Thus sometime this process
create a negative impact on an organisation.
 Personal biases can be considered as one of the major challenge in performance appraisal
as being a human it is the tendency to get sometimes bias if one is having some kind of
personal relations in the company.
 Performance appraisal are always done on the annual basis and thus they are not able to
provide feedback to the employees on the regular basis about their completion of task.
 The employees always wait for the rewards of the work done by them and sometimes it is
not possible for the company to provide rewards to the employees during the tough times
and in that case the performance of employees get decreased which results in overall
reduced productivity of an organisation.
 Appraisal always focus on the area where the need of improvement is required but never
provide suggestion to the employees where they can improve. As a result the employees
are not able to improve where they lack and in that case the appraisal goes wrong.
Thus the manager of Holiday Inn must provide regular feedbacks to their employees on
the daily basis or can be said on monthly basis so that the employees can be kept focus on their
work. Also managers must looks after the working condition in which employees are working
they should not be much strict which make the employees feel uncomfortable. There should not
be any favouritism at the premises because this sometime led to reducing the trust of employees
towards the employers and also affect the performance and productivity of the company.
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CHAPTER 3: RESEARCH METHODOLOGY
Research Methodology: It refers to a systematic plan of gathering a data so that research can be
conducted in a proper manner. They are mainly used to investigate the problem so that
appropriate decision can be taken in order to address the query. There are different research
methods which are explained below:
Type of Investigation:
Research constitute two types namely quantitative and qualitative. The method of
collecting the information with the help of numerical facts like statistics or mathematical
techniques is known as quantitative research. Common methods of quantitative research are
questionnaire, survey etc. Where as on the other hand qualitative methods are the one which
gives a detail description about the observation and is based on non numerical facts (Landy,
Zedeck and Cleveland, 2017). Some common methods of qualitative research are interviews,
discussions etc. In order to study a report qualitative methods is used as it provide in dept
analysis of a topic and also is very beneficial for drawing a meaningful conclusion.
Research Design:
It is defined as the method of collecting the data and doing the analysis. It basically
includes the strategies and analysis. The research design can be basically divided into three types
namely descriptive, exploratory and experimental. Descriptive design gives a detail presentation
about the facts and figures. Exploratory research aims on exploring of new concept and does not
aim on providing the final conclusion. At last the experimental design involves the relationship
between cause and effect of the situation. In order to study this research, descriptive design is
used because it deals in qualitative facts and provide details analysis of a desired topic.
Research Approach:
It is considered as one of the most important part which help in carrying the research
effectively and efficiently (Kumar and Koyadeen, 2016). Research approach are of two types
deductive and inductive. The deductive approach is defined as making of new theories which
support the hypothesis and is concerned with quantitative approach. Where as on the other hand,
inductive approach contributes to emergence of new theories. In the study of this report,
inductive approach is used by the researcher as it deals with the qualitative research and is very
helpful in drawing of a meaningful conclusion.
Research Philosophy:
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It provides a detail information about the manner in which data is collected, analysed and
interpreted. It is an important part of research methodologists that provides a direction to
complete the task in right way to a researcher. There are two types of research philosophy
namely interpretive and positivism. Interpretivism philosophy mainly focuses on interpreting
elements that are dependent upon the qualitative facts. Where as Positivism is associated with the
scientific methods and is dependent upon the quantitative facts. To conduct the following
research, interprevitism method is used as it is considered as one of the most suitable research
tool that deals in the qualitative facts.
Data Collection methods:
Data collection plays a great role in gathering and measuring information in a proper
manner. There are two methods of collecting the data namely primary and secondary. Primary
data refers to the data which is collected for the first time and the information which is collected
is fresh and new (Kaur and Mittal, 2017). Some of the common methods use for the primary data
is interview. This method is very long and expensive. Where as on the other hand the
information which is collected with the help of published sources like books and journal etc. is
known as secondary data. This method takes less time and is also very cost effective. In order to
do this research both primary as well as secondary data is used. As questionnaire which are
prepared in primary research are helpful for conducting the survey and secondary methods are
used for conducting a literature reviews.
Data Sampling:
It is a statistical analysis which is used to study subset of data from larger data set. There
are two sampling techniques namely Probabilistic and Non probabilistic. In probabilistic, each
sample has a equal chance of being selected. Where as in non probabilistic, probability of sample
is not known. To study this research, random sampling which is a part of probabilistic is taken to
get the desired information. The sample size of 30 respondents are taken by the researcher.
Ethical consideration:
It is considered as one of the most important part of research as with the help of these
ethics differentiation among right or wrong become very easy to understand (Ismail and Rishani,
2018). There are some of the principles on which ethical consideration works like the
information to be kept private from all other research participants in order to avoid the conflicts
and issue. Moreover it prevents the falsification of data and provide the information with honesty
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and transparency. For conducting a research both Cost and time aspect should be considered
properly in order to manage the research effectively.
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
Data analysis can be defined as an important process which is done by researcher for
analysing accurate and reliable information about the benefits and drawbacks of performance
appraisal. In order to analysing the data, basically four kind of analysis are used by researcher i.e.
regression, inductive, deductive and thematic. In this project, Thematic analysis is used by
researcher as it will assist them in gaining better knowledge regarding the topic.
Q1) Are you aware about the concept of performance appraisal?
Yes
No
Q2) Does performance appraisal of workers effect their working style?
Yes
No
Q3) What are the different tools and techniques that can be use by Holiday Inn as performance
appraisal?
Ranking
Graphic Rating skills
360 Degree appraisal
Q4) According to you, after how much time performance appraisal of employees should be
done in company?
Quarterly
After six months
Annually
Q5) What are the positive impacts of performance appraisal of employees on business?
Improve performance
Increases employee’s retention
Help in achieve customer satisfaction
Q6) What are the negative impacts of performance appraisal on business?
Leisure
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Time consuming
Natural Biases
Q7) What are the major challenges which a company face during performance appraisal of
employees?
Biasness of seniors
Employee resistance
Not focused to development
Q8) What are the ways through which company can overcome from the challenges of
performance appraisal?
Proper and adequate use of right appraisal tools
By better understand employee’s needs
Use upward feedback
Q9) Is it essential for organisations to carry out performance appraisal of employees on timely
basis?
Yes
No
Q10) Any recommendation for Holiday Inn to improve its performance appraisal process.
Theme 1 Knowledge about the topic of study
Q1) Are you aware about the concept of
performance appraisal?
Frequency
a) Yes 20
b) No 10
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