Describe general performance appraisal issues and summarize the functions of performance appraisals. Identify and discuss potential problems with performance appraisals. Describe the principal types of rating systems used in appraising employee performance. Describe commonly used methods of appraising performance. Managing Hospitality Human Resources Chapter 7: Evaluating Employee Performance Identify who should evaluate performance, and discuss objectives for programs that train managers and supervisors to conduct performance appraisals. Discuss how often performance appraisals should be conducted, identify legal issues relating to performance appraisals, and summarize keys to developing an effective employee appraisal system. Managing Hospitality Human Resources Chapter 7: Evaluating Employee Performance Performance Management A systematic process by which managers help employees to improve their ability to achieve goals. Performance management includes: Planning work and setting expectations Continually monitoring performance Developing employee skills Periodically appraising performance in an objective manner Rewarding good performance Managing Hospitality Human Resources Chapter 7: Evaluating Employee Performance Employee Appraisal An objective and comprehensive rating or evaluation of employees. Successful performance appraisal programs include: Performance goals set by supervisors and employees. Regular, informal feedback from supervisors. A formal method to address performance or disciplinary problems. Regular and formal appraisal. Managing Hospitality Human Resources Chapter 7: Evaluating Employee Performance Performance Appraisal Issues Mismanagement can cause resentment and resistance Managers must realize that both managers and employees are subject to human conditions that affect performance appraisals Managers should also comment on the positive aspects of an employee’s performance Managing Hospitality Human Resources Chapter 7: Evaluating Employee Performance Functions of Performance Appraisals Basically fill two kinds of needs in organizations: improving work performance making work-related decisions The purpose is to give employees feedback reinforce or encourage performance help employees develop in their careers Appraisals should be designed with a specific purpose in mind Managing Hospitality Human Resources Chapter 7: Evaluating Employee Performance Performance Feedback To be successful, feedback should contain No surprises Employee Involvement Primarily objective data Managing Hospitality Human Resources Chapter 7: Evaluating Employee Performance Decision Making and Evaluation Tool Provide an effective way to link rewards and discipline to performance Provide a basis for compensation, promotion, transfer, grievance, or discipline decisions Can be used to measure the effectiveness of training if the employee is evaluated both before and after the training Can serve as an evalu.

1. Describe general performance appraisal issues and summarize
the functions of performance appraisals.
Identify and discuss potential problems with performance
appraisals.
Describe the principal types of rating systems used in
appraising employee performance.
Describe commonly used methods of appraising performance.
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Identify who should evaluate performance, and discuss
objectives for programs that train managers and supervisors to
conduct performance appraisals.
Discuss how often performance appraisals should be conducted,
identify legal issues relating to performance appraisals, and
summarize keys to developing an effective employee appraisal
system.
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Performance Management
A systematic process by which managers help employees to
improve their ability to achieve goals.
Performance management includes:
Planning work and setting expectations
Continually monitoring performance
Developing employee skills
Periodically appraising performance in an objective manner
Rewarding good performance

2. Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Employee Appraisal
An objective and comprehensive rating or evaluation of
employees.
Successful performance appraisal programs include:
Performance goals set by supervisors and employees.
Regular, informal feedback from supervisors.
A formal method to address performance or disciplinary
problems.
Regular and formal appraisal.
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Performance Appraisal Issues
Mismanagement can cause resentment and resistance
Managers must realize that both managers and employees are
subject to human conditions that affect performance appraisals
Managers should also comment on the positive aspects of an
employee’s performance
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance

3. Functions of Performance Appraisals
Basically fill two kinds of needs in organizations:
improving work performance
making work-related decisions
The purpose is to give employees feedback
reinforce or encourage performance
help employees develop in their careers
Appraisals should be designed with a specific purpose in mind
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Performance Feedback
To be successful, feedback should contain
No surprises
Employee Involvement
Primarily objective data
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Decision Making and Evaluation Tool
Provide an effective way to link rewards and discipline to
performance
Provide a basis for compensation, promotion, transfer,
grievance, or discipline decisions
Can be used to measure the effectiveness of training
if the employee is evaluated both before and after the training
Can serve as an evaluation for new policies
Managing Hospitality Human Resources

4. Chapter 7: Evaluating Employee Performance
Validation of Selection Process
May help establish predictive validity
the extent to which a measurement predicts future behavior, of
selection methods
Construct validity
appraisals must measure what they intend to
Content validity
appraisals must measure the entire issue
Consistency
it is important to look for consistency rather than just focusing
on one or two particular points in time
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Bias
Leniency errors
occur when managers or interviewers rate an employee too
positively
Severity errors
occur when managers or interviewers rate employees too
severely
Central tendency errors
occur when managers or interviewers rate all or most employees
as average
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance

5. More Possible Bias
Recency errors
when managers base employee ratings primarily on the most
recent events or behaviors
Past anchoring errors
when rate employees on the basis of previous ratings
Halo errors
when managers rate employees on the basis of a single positive
attribute
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Principal Appraisal Rating Systems
Trait-based ratings
used primarily to assess the personal characteristics of
employees
Behavior-based ratings
assess employees on their behaviors rather than on personal
characteristics.
Results-based ratings
focused on measuring the extent to which employees accomplish
results
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Performance Management Part 2

6. Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Ranking methods
Methods of Appraising Performance
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Forced distribution
Methods of Appraising Performance
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Graphic rating scale
Methods of Appraising Performance
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
BARS - Behavioral anchored rating scales
Methods of Appraising Performance

7. Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Narrative essays
Critical incidents
Methods of Appraising Performance
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
MBO - Management by objectives
Methods of Appraising Performance
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Ranking Methods
Simple ranking
rank all employees from best to worst
does not distinguish between different aspects of job
responsibilities
Alternative ranking
list each employee on a separate piece of paper and order them
from best to last
Paired comparisons
directly compare employees to one another on each job criterion
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance

8. Other Methods of Evaluating Performance
Peer evaluations
Staff appraisals of managers
Self-appraisals
Guest appraisals
Multiple rater evaluations
360 degree appraisal
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Supervisors as Appraisers
May have little to no contact with the employees he or she
evaluates
Immediate supervisors make vastly superior assessments when
compared with those of a second-level supervisor
Bosses in a bad mood are more likely to issue negative
performance appraisals
Subconscious stereotypes that managers hold regarding race,
age, attractiveness, and other attributes directly affect their
appraisals
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Frequency
Once or twice per year is norm
Difficult to remember events and behaviors that occurred
Goal should be quarterly
Performance appraisals are most effective when used often

9. Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Content Issues
Performance standards must be based on job analysis
Evaluations based on specific dimensions of job performance
Performance standards should be objective and observable
Ratings should be documented
Validity of appraiser’s ratings should be assessed
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Process Issues
Performance standards must be communicated to and understood
by employees
Specific instructions for appraisals should be in writing
More than one appraiser should be used
Appraisers should review results with employees
Have process clear for formal appeals
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Discuss training expenditures, and identify and explain the
stages of the training cycle.

10. Explain how a training needs assessment is developed and
conducted, and discuss the first steps in designing a training
program.
Describe various training methods and how to select one.
Explain how to implement and evaluate training programs and
activities.
Competencies
Discuss career development for managers.
Managing Hospitality Human Resources
Chapter 6: Training and Development
Managing Hospitality Human Resources
Chapter 6: Training and Development
The Training Cycle
Develop/conduct a needs assessment
Identify training objectives
Establish training criteria
Select trainees
Pretest employees to establish their current knowledge, skills,
or abilities for training
Choose the proper training methods and techniques
Implement the training program
Conduct a training evaluation
Managing Hospitality Human Resources
Chapter 6: Training and Development
Conducting A Needs Assessments
Need analysis
determines need for training
includes determining effect that training will have

11. Task and behavior analysis
determines which tasks and behaviors are required for each
specific job
Individual analysis
Identifies the strengths and weaknesses of the employee
performing the job
which employees require what types of training
Managing Hospitality Human Resources
Chapter 6: Training and Development
Ways to Conduct a Needs Assessment
Observation of work performance (work sampling)
Input from guests
Input from staff members
Inspections
Failure to meet performance standards
KSA’s
Analysis of financial data
Advisory committees
Performance/skills assessments
Exit interviews
Managing Hospitality Human Resources
Chapter 6: Training and Development
Designing the Training Program
Establish Training Objectives
Establish Training Criteria
Select Trainees
Pretest Trainees

12. Managing Hospitality Human Resources
Chapter 6: Training and Development
Establish Training Objectives
Reaction-based objectives
how employees view the process
Learning-acquired objectives
involve the knowledge gained during the training program
On-the-job behaviors
how employee behavior changes as a result of training
Results-oriented objectives
how measurable outcomes of an individual or group change
Managing Hospitality Human Resources
Chapter 6: Training and Development
Define Training Objectives
Purposes of training objectives:
To help the trainer connect the purpose of the training program
with its content.
To help evaluate training
At the end of this training session, Banquet Set Up Staff
will be able to set up meetings according to the details specified
on Banquet Event Orders.
Managing Hospitality Human Resources
Chapter 6: Training and Development

13. Select and Pretest Trainees
How do you select employees for training?
What does the TRAINER need to know about your trainees
before training?
How do you determine what employees know BEFORE training?
Managing Hospitality Human Resources
Chapter 6: Training and Development
Learning Styles
How people prefer to absorb and process new information:
Auditory learners hear information and process and
remember it (lectures, discussions)
Visual learners need to see information (charts, pictures)
Tactile learners need to interact with the material they are
learning (writing activities, take notes)
Kinesthetic learners need to be doing something rather than hear
or see the materials (roles plays, simulations)
Managing Hospitality Human Resources
Chapter 6: Training and Development
Training Adult Learners
Adults need to:
See the big picture of what they are learning at the beginning of
the program
Be involved in training activities
Have spaced practice when learning something new
Be allowed to relate past and current experiences to the training

14. Managing Hospitality Human Resources
Chapter 6: Training and Development
10
Choose Proper Training Methods
Develop a Training Plan
Develop Training Lessons
Develop a Training Handbook
Managing Hospitality Human Resources
Chapter 6: Training and Development
Develop Training Plan
Training plan – A description of the structure (overview) and
sequence of the entire training program.
Managing Hospitality Human Resources
Chapter 6: Training and Development
Develop Training Lessons
Training lesson – The information to be presented in a single
session of the training plan. Each lesson contains one or more
specific training objectives and indicates the content and
methodology(ies) required to enable trainees to master the
content.

15. Managing Hospitality Human Resources
Chapter 6: Training and Development
Develop a Training Handbook
Training handbook – A hardcopy or electronic manual (file) that
contains the training plan and associated training lessons for a
complete training program. The program can be comprehensive
or more specific.
Managing Hospitality Human Resources
Chapter 6: Training and Development
Training for Managers
Like case study or real world examples
Prefer activities or one on one conferencing
Use of behavior modeling (role play) can impact future
performance
Managing Hospitality Human Resources
Chapter 6: Training and Development
Training for Non-managers
On-the-job training (OJT)
typically one employee shows another some desired skill

16. Job instruction training (JIT)
requires trainees to proceed through a series of steps in a
sequential order
Lecturing
most common form of off-the-job training
Coaching/mentoring
encouraging protégés’ skill and leadership development rather
than simply making sure employees know how to do their
immediate job tasks
Programmed instruction
enables trainees to learn at their own pace
Managing Hospitality Human Resources
Chapter 6: Training and Development
Different Types of Training
Job rotation
involves moving trainees from one job to another
Role-playing
allows participants to experience what it feels like to work in a
real or exaggerated work situation
Simulations
involves the virtual duplication of the work environment in an
off-site setting
Managing Hospitality Human Resources
Chapter 6: Training and Development
Different Types of Training
Business games
a form of simulation through which participants learn how to
deal with a variety of issues in a mock business environment

17. Sensitivity training
helps participants become aware of their own behaviors and of
their behaviors toward others
Managing Hospitality Human Resources
Chapter 6: Training and Development
Checklist for Designing a Training Program
Managing Hospitality Human Resources
Chapter 6: Training and Development
Tips for Training
Provide some means for reinforcement while trainees learn
Structure tasks from the simple to the complex
Be adaptable to specific problems
Encourage positive transfer of knowledge and skills from the
training to the job
Managing Hospitality Human Resources
Chapter 6: Training and Development
Other Impacts on Decisions About Training
Ensure all have equal access to training programs
Be sensitive to work/life balance and travel related to training
In a tight labor market, individuals may be hired who don’t
meet all job requirements and need training to bridge gaps
Basic English reading and writing skills may be needed

18. Make reasonable accommodations for employees with
disabilities
Managing Hospitality Human Resources
Chapter 6: Training and Development
Evaluation of Training
Level 1: Reaction
How employees feel about the course, the instructor, etc.
(measured through survey)
Level 2: Learning
What learning has occurred (measured with pre-
training/post-training assessment
Level 3: Behavior
Performance should improve (transfer of learning should
occur on the job)
Level 4 and 5: Results and Return on Investment
What business results can be attributed to training (savings
generated, revenue, error rate, etc.)
Managing Hospitality Human Resources
Chapter 6: Training and Development
Describe types of compensation and outline the major
influences on compensation plans
Describe major content and process theories of motivation and
their application to compensation plan design
Outline methods of determining job worth and describe the
advantages and disadvantages of each
Describe the steps and identify options for establishing pay

19. structures
Describe current issues in compensation administration
Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Compensation Policy
Articulates where the company wants its pay policies to be in
the marketplace and how the company will reward and motivate
employees
Monetary compensation is commonly divided into the
following:
Direct compensation
payment of money to an employee in exchange for work
Indirect compensation
compensation given as a condition of employment rather than in
direct exchange for work.
Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Major Influences on Compensation Plans
Cost of living
Labor market influences
Union influences
Government influences

20. Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Cost of Living
Refers to the real dollar value of a worker’s purchasing power
for ordinary necessities such as food and clothing
The cost of living in different regions is also a factor in
compensation.
Consumer price index
computed by comparing the retail prices of goods and services
at a fixed time with the prices at subsequent or prior times
is generally the best overall indicator of the real value of wages
or salaries.
Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Labor Market Influences
The number of available workers varies
Unemployment
Type of work
Location/regional economic conditions
Compensation rates vary according to worker availability
Internal conditions of a company influence compensation rates
Managing Hospitality Human Resources
Chapter 8: Compensation Administration

21. Union Influences
Unions influence compensation rates
union contracts generally have same pay for all employees who
perform the same job
raises based on seniority
Non-union companies typically reward individual employees
Whether unionized or not, hotels in markets in which unions are
present generally have higher compensation costs.
Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Government Influences
Laws that mandate companies compensation for their employees
minimum wage
wage rates
overtime pay
child-labor restrictions
Exempt
An employee who is not subject to the minimum wage or
overtime provisions of the Fair Labor Standards.
Non-exempt
An employee who is subject to the minimum wage or overtime
provisions of the Fair Labor Standards.
Managing Hospitality Human Resources
Chapter 8: Compensation Administration

22. External and Internal Equity
External equity
pay variations among similar properties in a particular market
Salary Survey
External analysis depends on direct collection of information
from competing organizations in the market
Internal equity
pay variations within a particular company
Job Evaluation
Internal analysis based on establishing meaningful compensable
factors
Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Job Evaluation Methods
Ranking method
usually uses a team of managers to rank jobs
Classification method
compares each job to a predetermined grade or class
Sometimes called job grading
Point method
probably the most widely used method of job evaluation
A point system assigns a point total to each job on the basis of
several clearly defined criteria
jobs are then placed in job grades according to their point
totals.
Factor comparison method
entails identifying key jobs

23. generally those that that are extremely important to the success
of the organization
Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Competitive Pay Policies
Pay leaders
Leading the market
Paying more than the market average
Pay followers
Lagging the market
Paying below market average
Meeting the competitors
At market
Pay the prevailing wage
Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Pay Grades
Each hospitality organization must determine the number of pay
grades it will use
It is important to establish ranges of pay within each grade
allows employees to receive raises without changing pay grades
Performance pay must be high enough to effectively reward
performance
Must be observed differences in pay between people who make
higher and lower contributions to the organization.

24. Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Determining Pay Within Grades
Seniority provides a good reason for establishing a range of pay
within job grades or classifications
Merit
typically the second determinant of pay within grades
merit pay policies are intended to motivate employees
Pay scales can be determined by
Broadbanding
eliminates all but a few comprehensive salary and job
classifications
Careerbanding
uses market surveys to determine scales
Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Other Pay Structure Options
Two-tier wage systems
provide a higher pay structure for existing employees and a
lower one for employees hired beyond a specific date
Skill-based pay systems
assume that a company can afford to pay more to people who do
more
Knowledge-based pay
a variation of a skill-based pay system in which pay is tied to
knowledge rather than to skills

25. “On-call pay”
companies provide pay premiums to on-call employees
Team-based pay rewards
Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Current Issues in Compensation
Pay secrecy
Wage compression and expansion
Comparable worth
Wage and hour audits
Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Pay Secrecy
The decision of whether or not to keep pay rates secret involves
at least two issues:
Does the company make its pay grades and the pay ranges of
those grades known to employees?
If the company prefers pay secrecy, does it attempt to prevent
or forbid employees from discussing their pay with other
employees?
The National Labor Relations Board has repeatedly found
policies that forbid or discourage employees from discussing
their pay to be unfair labor practices

26. Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Wage Compression and Expansion
Wage compression
levels of demand result in higher pay for new employees than
for current employees
primarily caused by competition with other companies for new
hires
Wage expansion
occurs when employers try to raise pay rates of current
employees to keep salaries in line with higher wages of new
hires
Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Comparable Worth
Many people confuse comparable worth with equal pay issues
Equal Pay Act prohibits pay discrimination in the same job
Comparable worth deals with the issue of pay in similar jobs
Comparable worth advocates cite the fact that pay is based on
job classification rather than on the work that goes into a job
Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Wage and Hour Audits

27. All pay policies and procedures must comply with the
provisions of the Fair Labor Standards Act
Policies and procedures that are inconsistent with the act can
result in fines for a company and back pay for employees
Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Motivating Employees
Compensation programs must motivate individual employees to
work; however, they rarely succeed when they base motivation
solely on monetary rewards.
Motivation theories fall into two principal types:
Content theories
Inherent traits of humans
Process theories
How environments can be built to motivate others
Content Theories
Content theories propose that all people are motivated by
certain common needs; the most common are the following:
Economic Man Theory
Maslow’s Hierarchy of Needs Theory
Alderfer’s ERG Theory

28. Herzberg’s Two-Factor Theory
McClellands’s N-Achievement Theory
Economic Man and Maslow’s Hierarchy of Needs
The Economic Man Theory holds the idea that money is the
only important goal for which people work
Maslow’s Hierarchy of Needs
Economic Man and Maslow’s Hierarchy of Needs
The Economic Man Theory holds the idea that money is the
only important goal for which people work
Maslow’s Hierarchy of Needs
Alderfer’s ERG Theory
Alderfer’s ERG Theory agrees with Maslow
individuals have basic needs that could be arranged in order of
priority
there are basic distinctions among those needs
those needs need to be classified
Alderfer divides them into three categories
Existence Relatedness Growth
Alderfer’s ERG Theory
Alderfer’s ERG Theory agrees with Maslow
individuals have basic needs that could be arranged in order of

29. priority
there are basic distinctions among those needs
those needs need to be classified
Alderfer divides them into three categories
Existence Relatedness Growth
Herzberg’s Two-Factor Theory
Employees have two needs
Hygiene factors
factors that are expected by employees, and therefore cannot
lead to satisfaction
Extrinsic rewards
Motivating factors
factors that lead to satisfaction and can drive performance
Intrinsic rewards
Herzberg’s Two-Factor Theory
Employees have two needs
Hygiene factors
factors that are expected by employees, and therefore cannot
lead to satisfaction
Extrinsic rewards
Motivating factors
factors that lead to satisfaction and can drive performance
Intrinsic rewards
McClelland’s N- Achievement Theory
Contends people have three needs

30. Need for achievement
Usually good managers
Need for power
Usually good leaders
Need for affiliation
Usually do well in jobs with high levels of social interaction or
where interpersonal skills are valued
McClelland’s N- Achievement Theory
Contends people have three needs
Need for achievement
Usually good managers
Need for power
Usually good leaders
Need for affiliation
Usually do well in jobs with high levels of social interaction or
where interpersonal skills are valued
Process Theories
Used to explain how employees can be motivated to work
Exectancy theory
Equity theory
Goal setting theory
Reinforcement theory
Expectancy Theory
Contends that motivation is related to an individual’s perception
of three factors
Expectancy

31. The probability that effort will lead to performance
Instrumentality
The probability that performance will lead to certain outcomes
Valence
The value attached to each outcome
Expectancy Theory
Contends that motivation is related to an individual’s perception
of three factors
Expectancy
The probability that effort will lead to performance
Instrumentality
The probability that performance will lead to certain outcomes
Valence
The value attached to each outcome
Equity Theory
Does employee believe he/she is being fairly treated in
comparison to another person perceived as being in the same
position
Assumes all employees ask:
What do I receive in return for what I give
What do others receive in return for what they give
Equity Theory
Does employee believe he/she is being fairly treated in
comparison to another person perceived as being in the same
position
Assumes all employees ask:

32. What do I receive in return for what I give
What do others receive in return for what they give
Goal Setting Theory
States setting specific goals motivates better performance
The following factors are needed to bring higher levels of
performance from specific and challenging goals
Ability
Goal Commitment
Feedback
Goal Setting Theory
States setting specific goals motivates better performance
The following factors are needed to bring higher levels of
performance from specific and challenging goals
Ability
Goal Commitment
Feedback
Reinforcement Theory
Assumes people are conditioned to respond to stimuli
Leads to four possible managerial actions in response to
employee behavior
Positive reinforcement
Negative reinforcement
Extinction

33. Punishment
Reinforcement Theory
Assumes people are conditioned to respond to stimuli
Leads to four possible managerial actions in response to
employee behavior
Positive reinforcement
Negative reinforcement
Extinction
Punishment
Describe general performance appraisal issues and summarize
the functions of performance appraisals.
Identify and discuss potential problems with performance
appraisals.
Describe the principal types of rating systems used in
appraising employee performance.
Describe commonly used methods of appraising performance.
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Identify who should evaluate performance, and discuss
objectives for programs that train managers and supervisors to
conduct performance appraisals.
Discuss how often performance appraisals should be conducted,
identify legal issues relating to performance appraisals, and

34. summarize keys to developing an effective employee appraisal
system.
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Performance Management
A systematic process by which managers help employees to
improve their ability to achieve goals.
Performance management includes:
Planning work and setting expectations
Continually monitoring performance
Developing employee skills
Periodically appraising performance in an objective manner
Rewarding good performance
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Employee Appraisal
An objective and comprehensive rating or evaluation of
employees.
Successful performance appraisal programs include:
Performance goals set by supervisors and employees.
Regular, informal feedback from supervisors.
A formal method to address performance or disciplinary
problems.
Regular and formal appraisal.

35. Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Performance Appraisal Issues
Mismanagement can cause resentment and resistance
Managers must realize that both managers and employees are
subject to human conditions that affect performance appraisals
Managers should also comment on the positive aspects of an
employee’s performance
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Functions of Performance Appraisals
Basically fill two kinds of needs in organizations:
improving work performance
making work-related decisions
The purpose is to give employees feedback
reinforce or encourage performance
help employees develop in their careers
Appraisals should be designed with a specific purpose in mind
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Performance Feedback
To be successful, feedback should contain
No surprises

36. Employee Involvement
Primarily objective data
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Decision Making and Evaluation Tool
Provide an effective way to link rewards and discipline to
performance
Provide a basis for compensation, promotion, transfer,
grievance, or discipline decisions
Can be used to measure the effectiveness of training
if the employee is evaluated both before and after the training
Can serve as an evaluation for new policies
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Validation of Selection Process
May help establish predictive validity
the extent to which a measurement predicts future behavior, of
selection methods
Construct validity
appraisals must measure what they intend to
Content validity
appraisals must measure the entire issue
Consistency
it is important to look for consistency rather than just focusing
on one or two particular points in time
Managing Hospitality Human Resources

37. Chapter 7: Evaluating Employee Performance
Bias
Leniency errors
occur when managers or interviewers rate an employee too
positively
Severity errors
occur when managers or interviewers rate employees too
severely
Central tendency errors
occur when managers or interviewers rate all or most employees
as average
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
More Possible Bias
Recency errors
when managers base employee ratings primarily on the most
recent events or behaviors
Past anchoring errors
when rate employees on the basis of previous ratings
Halo errors
when managers rate employees on the basis of a single positive
attribute
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Principal Appraisal Rating Systems

38. Trait-based ratings
used primarily to assess the personal characteristics of
employees
Behavior-based ratings
assess employees on their behaviors rather than on personal
characteristics.
Results-based ratings
focused on measuring the extent to which employees accomplish
results
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Ranking methods
Forced distribution
Graphic rating scale
BARS - Behavioral anchored rating scales
Narrative essays
Critical incidents
MBO - Management by objectives
Methods of Appraising Performance
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Ranking Methods
Simple ranking
rank all employees from best to worst

39. does not distinguish between different aspects of job
responsibilities
Alternative ranking
list each employee on a separate piece of paper and order them
from best to last
Paired comparisons
directly compare employees to one another on each job criterion
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Other Methods of Evaluating Performance
Peer evaluations
Staff appraisals of managers
Self-appraisals
Guest appraisals
Multiple rater evaluations
360 degree appraisal
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Supervisors as Appraisers
May have little to no contact with the employees he or she
evaluates
Immediate supervisors make vastly superior assessments when
compared with those of a second-level supervisor
Bosses in a bad mood are more likely to issue negative
performance appraisals
Subconscious stereotypes that managers hold regarding race,
age, attractiveness, and other attributes directly affect their
appraisals

40. Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Frequency
Once or twice per year is norm
Difficult to remember events and behaviors that occurred
Goal should be quarterly
Performance appraisals are most effective when used often
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Content Issues
Performance standards must be based on job analysis
Evaluations based on specific dimensions of job performance
Performance standards should be objective and observable
Ratings should be documented
Validity of appraiser’s ratings should be assessed
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
Process Issues
Performance standards must be communicated to and understood
by employees
Specific instructions for appraisals should be in writing
More than one appraiser should be used
Appraisers should review results with employees
Have process clear for formal appeals
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance

41. 1
Motivating Employees
• Compensation programs must motivate
individual employees to work; however, they
rarely succeed when they base motivation solely
on monetary rewards.
• Motivation theories fall into two principal types:
– Content theories
• Inherent traits of humans
– Process theories
• How environments can be built to motivate others
Content Theories
• Content theories propose that all people are
motivated by certain common needs; the
most common are the following:
– Economic Man Theory
– Maslow’s Hierarchy of Needs Theory
– Alderfer’s ERG Theory
– Herzberg’s Two-Factor Theory
– McClellands’s N-Achievement Theory
Economic Man and Maslow’s
Hierarchy of Needs
• The Economic Man Theory holds the idea that

42. money is the only important goal for which
people work
• Maslow’s Hierarchy of Needs
Economic Man and Maslow’s
Hierarchy of Needs
• The Economic Man Theory holds the idea that
money is the only important goal for which
people work
• Maslow’s Hierarchy of Needs
Alderfer’s ERG Theory
• Alderfer’s ERG Theory agrees with
Maslow
–individuals have basic needs that could be
arranged in order of priority
–there are basic distinctions among those
needs
–those needs need to be classified
–Alderfer divides them into three
categories
• Existence Relatedness Growth
Alderfer’s ERG Theory
• Alderfer’s ERG Theory agrees with
Maslow
–individuals have basic needs that could be

43. arranged in order of priority
–there are basic distinctions among those
needs
–those needs need to be classified
–Alderfer divides them into three
categories
• Existence Relatedness Growth
2
Herzberg’s Two-Factor Theory
• Employees have two needs
–Hygiene factors
• factors that are expected by employees,
and therefore cannot lead to satisfaction
• Extrinsic rewards
–Motivating factors
• factors that lead to satisfaction and can
drive performance
• Intrinsic rewards
Herzberg’s Two-Factor Theory
• Employees have two needs
–Hygiene factors
• factors that are expected by employees,

44. and therefore cannot lead to satisfaction
• Extrinsic rewards
–Motivating factors
• factors that lead to satisfaction and can
drive performance
• Intrinsic rewards
McClelland’s N- Achievement Theory
• Contends people have three needs
– Need for achievement
• Usually good managers
– Need for power
• Usually good leaders
– Need for affiliation
• Usually do well in jobs with high levels of social
interaction or where interpersonal skills are valued
McClelland’s N- Achievement Theory
• Contends people have three needs
– Need for achievement
• Usually good managers
– Need for power
• Usually good leaders
– Need for affiliation

45. • Usually do well in jobs with high levels of social
interaction or where interpersonal skills are valued
Process Theories
• Used to explain how employees can be
motivated to work
– Exectancy theory
– Equity theory
– Goal setting theory
– Reinforcement theory
Expectancy Theory
• Contends that motivation is related to an
individual’s perception of three factors
– Expectancy
• The probability that effort will lead to performance
– Instrumentality
• The probability that performance will lead to certain
outcomes
– Valence
• The value attached to each outcome
3
Expectancy Theory
• Contends that motivation is related to an

46. individual’s perception of three factors
– Expectancy
• The probability that effort will lead to performance
– Instrumentality
• The probability that performance will lead to certain
outcomes
– Valence
• The value attached to each outcome
Equity Theory
• Does employee believe he/she is being fairly
treated in comparison to another person
perceived as being in the same position
• Assumes all employees ask:
– What do I receive in return for what I give
– What do others receive in return for what they give
Equity Theory
• Does employee believe he/she is being fairly
treated in comparison to another person
perceived as being in the same position
• Assumes all employees ask:
– What do I receive in return for what I give
– What do others receive in return for what they give
Goal Setting Theory
• States setting specific goals motivates better

47. performance
• The following factors are needed to bring
higher levels of performance from specific and
challenging goals
– Ability
– Goal Commitment
– Feedback
Goal Setting Theory
• States setting specific goals motivates better
performance
• The following factors are needed to bring
higher levels of performance from specific and
challenging goals
– Ability
– Goal Commitment
– Feedback
Reinforcement Theory
• Assumes people are conditioned to respond to
stimuli
• Leads to four possible managerial actions in
response to employee behavior
– Positive reinforcement
– Negative reinforcement
– Extinction
– Punishment
4

48. Reinforcement Theory
• Assumes people are conditioned to respond to
stimuli
• Leads to four possible managerial actions in
response to employee behavior
– Positive reinforcement
– Negative reinforcement
– Extinction
– Punishment
1
1.Describe types of compensation and outline the major
influences on compensation plans
2.Describe major content and process theories of motivation and
their application to compensation plan design
3.Outline methods of determining job worth and describe the
advantages and disadvantages of each
4.Describe the steps and identify options for establishing pay
structures
5.Describe current issues in compensation administration
Managing Hospitality Human Resources
Chapter 8: Compensation Administration
Compensation Policy

49. • Articulates where the company wants its pay
policies to be in the marketplace and how the
company will reward and motivate employees
• Monetary compensation is commonly divided into
the following:
– Direct compensation
• payment of money to an employee in exchange for work
– Indirect compensation
• compensation given as a condition of employment rather
than in direct exchange for work.
Major Influences on Compensation Plans
• Cost of living
• Labor market influences
• Union influences
• Government influences
Cost of Living
• Refers to the real dollar value of a worker’s
purchasing power for ordinary necessities such as
food and clothing
• The cost of living in different regions is also a factor in
compensation.
• Consumer price index

50. – computed by comparing the retail prices of goods and
services at a fixed time with the prices at subsequent or
prior times
– is generally the best overall indicator of the real value of
wages or salaries.
Labor Market Influences
• The number of available workers varies
– Unemployment
– Type of work
– Location/regional economic conditions
• Compensation rates vary according to worker
availability
• Internal conditions of a company influence
compensation rates
Union Influences
• Unions influence compensation rates
– union contracts generally have same pay for all employees
who perform the same job
– raises based on seniority
• Non-union companies typically reward individual
employees
• Whether unionized or not, hotels in markets in which
unions are present generally have higher
compensation costs.

51. 2
Government Influences
• Laws that mandate companies compensation for
their employees
– minimum wage
– wage rates
– overtime pay
– child-labor restrictions
• Exempt
– An employee who is not subject to the minimum wage or
overtime provisions of the Fair Labor Standards.
• Non-exempt
– An employee who is subject to the minimum wage or
overtime provisions of the Fair Labor Standards.
External and Internal Equity
• External equity
– pay variations among similar properties in a particular
market
• Salary Survey
– External analysis depends on direct collection of
information from competing organizations in the market
• Internal equity
– pay variations within a particular company

52. • Job Evaluation
– Internal analysis based on establishing meaningful
compensable factors
Job Evaluation Methods
• Ranking method
– usually uses a team of managers to rank jobs
• Classification method
– compares each job to a predetermined grade or class
– Sometimes called job grading
• Point method
– probably the most widely used method of job evaluation
– A point system assigns a point total to each job on the basis of
several
clearly defined criteria
– jobs are then placed in job grades according to their point
totals.
• Factor comparison method
– entails identifying key jobs
– generally those that that are extremely important to the
success of
the organization
Competitive Pay Policies
• Pay leaders
– Leading the market
– Paying more than the market average

53. • Pay followers
– Lagging the market
– Paying below market average
• Meeting the competitors
– At market
– Pay the prevailing wage
Pay Grades
• Each hospitality organization must determine the
number of pay grades it will use
• It is important to establish ranges of pay within each
grade
– allows employees to receive raises without changing pay
grades
• Performance pay must be high enough to effectively
reward performance
• Must be observed differences in pay between people
who make higher and lower contributions to the
organization.
Determining Pay Within Grades
• Seniority provides a good reason for establishing a range
of pay within job grades or classifications
• Merit
– typically the second determinant of pay within grades
– merit pay policies are intended to motivate employees

54. • Pay scales can be determined by
– Broadbanding
• eliminates all but a few comprehensive salary and job
classifications
– Careerbanding
• uses market surveys to determine scales
3
Other Pay Structure Options
• Two-tier wage systems
– provide a higher pay structure for existing employees and a
lower one for employees hired beyond a specific date
• Skill-based pay systems
– assume that a company can afford to pay more to people
who do more
• Knowledge-based pay
– a variation of a skill-based pay system in which pay is tied to
knowledge rather than to skills
• “On-call pay”
– companies provide pay premiums to on-call employees
• Team-based pay rewards
Current Issues in Compensation

55. • Pay secrecy
• Wage compression and expansion
• Comparable worth
• Wage and hour audits
Pay Secrecy
• The decision of whether or not to keep pay rates
secret involves at least two issues:
– Does the company make its pay grades and the pay ranges
of those grades known to employees?
– If the company prefers pay secrecy, does it attempt to
prevent or forbid employees from discussing their pay with
other employees?
• The National Labor Relations Board has repeatedly
found policies that forbid or discourage employees
from discussing their pay to be unfair labor practices
Wage Compression and Expansion
• Wage compression
– levels of demand result in higher pay for new employees
than for current employees
– primarily caused by competition with other companies for
new hires
• Wage expansion
– occurs when employers try to raise pay rates of current

56. employees to keep salaries in line with higher wages of
new hires
Comparable Worth
• Many people confuse comparable worth with equal
pay issues
– Equal Pay Act prohibits pay discrimination in the same job
– Comparable worth deals with the issue of pay in similar jobs
• Comparable worth advocates cite the fact that pay is
based on job classification rather than on the work
that goes into a job
Wage and Hour Audits
• All pay policies and procedures must comply with the
provisions of the Fair Labor Standards Act
• Policies and procedures that are inconsistent with
the act can result in fines for a company and back
pay for employees
1
1. Describe general performance appraisal issues and summarize
the
functions of performance appraisals.
2. Identify and discuss potential problems with performance
appraisals.
3. Describe the principal types of rating systems used in

57. appraising
employee performance.
4. Describe commonly used methods of appraising performance.
Managing Hospitality Human Resources
Chapter 7: Evaluating Employee Performance
5. Identify who should evaluate performance, and discuss
objectives
for programs that train managers and supervisors to conduct
performance appraisals.
6. Discuss how often performance appraisals should be
conducted,
identify legal issues relating to performance appraisals, and
summarize keys to developing an effective employee appraisal
system.
Employee Appraisal
• An objective and comprehensive rating or
evaluation of employees.
Successful performance appraisal programs
include:
– Performance goals set by supervisors and
employees.
– Regular, informal feedback from supervisors.
– A formal method to address performance or
disciplinary problems.
– Regular and formal appraisal.
Performance Appraisal Issues

58. • Mismanagement can cause resentment and
resistance
• Managers must realize that both managers and
employees are subject to human conditions
that affect performance appraisals
• Managers should also comment on the
positive aspects of an employee’s performance
Functions of Performance Appraisals
• Basically fill two kinds of needs in
organizations:
– improving work performance
– making work-related decisions
• The purpose is to give employees feedback
– reinforce or encourage performance
– help employees develop in their careers
• Appraisals should be designed with a specific
purpose in mind
Performance Feedback
• To be successful, feedback should contain
– No surprises
– Employee Involvement
– Primarily objective data
Decision Making and Evaluation Tool
• Provide an effective way to link rewards and
discipline to performance

59. • Provide a basis for compensation, promotion,
transfer, grievance, or discipline decisions
• Can be used to measure the effectiveness of
training
– if the employee is evaluated both before and after
the training
• Can serve as an evaluation for new policies
2
Validation of Selection Process
• May help establish predictive validity
– the extent to which a measurement predicts future
behavior, of selection methods
• Construct validity
– appraisals must measure what they intend to
• Content validity
– appraisals must measure the entire issue
• Consistency
– it is important to look for consistency rather than
just focusing on one or two particular points in time
Bias

60. • Leniency errors
– occur when managers or interviewers rate an
employee too positively
• Severity errors
– occur when managers or interviewers rate
employees too severely
• Central tendency errors
– occur when managers or interviewers rate all or
most employees as average
More Possible Bias
• Recency errors
– when managers base employee ratings primarily
on the most recent events or behaviors
• Past anchoring errors
– when rate employees on the basis of previous
ratings
• Halo errors
– when managers rate employees on the basis of a
single positive attribute
Principal Appraisal Rating Systems
• Trait-based ratings
– used primarily to assess the personal

61. characteristics of employees
• Behavior-based ratings
– assess employees on their behaviors rather than
on personal characteristics.
• Results-based ratings
– focused on measuring the extent to which
employees accomplish results
Ranking Methods
• Simple ranking
– rank all employees from best to worst
– does not distinguish between different aspects of
job responsibilities
• Alternative ranking
– list each employee on a separate piece of paper
and order them from best to last
• Paired comparisons
– directly compare employees to one another on
each job criterion
Other Methods of Evaluating
Performance
• Peer evaluations
• Staff appraisals of managers

62. • Self-appraisals
• Guest appraisals
• Multiple rater evaluations
– 360 degree appraisal
3
Supervisors as Appraisers
• May have little to no contact with the employees he
or she evaluates
• Immediate supervisors make vastly superior
assessments when compared with those of a second-
level supervisor
• Bosses in a bad mood are more likely to issue
negative performance appraisals
• Subconscious stereotypes that managers hold
regarding race, age, attractiveness, and other
attributes directly affect their appraisals
Frequency
• Once or twice per year is norm
• Difficult to remember events and behaviors
that occurred
• Goal should be quarterly
• Performance appraisals are most effective
when used often

63. Content Issues
• Performance standards must be based on job
analysis
• Evaluations based on specific dimensions of
job performance
• Performance standards should be objective
and observable
• Ratings should be documented
• Validity of appraiser’s ratings should be
assessed
Process Issues
• Performance standards must be
communicated to and understood by
employees
• Specific instructions for appraisals should be
in writing
• More than one appraiser should be used
• Appraisers should review results with
employees
• Have process clear for formal appeals
1

64. 1. Discuss training expenditures, and identify and explain the
stages
of the training cycle.
2. Explain how a training needs assessment is developed and
conducted, and discuss the first steps in designing a training
program.
3. Describe various training methods and how to select one.
4. Explain how to implement and evaluate training programs
and
activities.
Competencies
5. Discuss career development for managers.
Managing Hospitality Human Resources
Chapter 6: Training and Development
The Training Cycle
• Develop/conduct a needs assessment
• Identify training objectives
• Establish training criteria
• Select trainees
• Pretest employees to establish their current
knowledge, skills, or abilities for training
• Choose the proper training methods and techniques
• Implement the training program
• Conduct a training evaluation
Conducting A Needs Assessments
• Need analysis

65. – determines need for training
– includes determining effect that training will have
• Task and behavior analysis
– determines which tasks and behaviors are required
for each specific job
• Individual analysis
– Identifies the strengths and weaknesses of the
employee performing the job
– which employees require what types of training
Ways to Conduct a Needs Assessment
• Observation of work performance (work
sampling)
• Input from guests
• Input from staff members
• Inspections
• Failure to meet performance standards
• KSA’s
• Analysis of financial data
• Advisory committees
• Performance/skills assessments
• Exit interviews
Designing the Training Program
• Establish Training Objectives
• Establish Training Criteria
• Select Trainees
• Pretest Trainees

66. Establish Training Objectives
• Reaction-based objectives
– how employees view the process
• Learning-acquired objectives
– involve the knowledge gained during the training
program
• On-the-job behaviors
– how employee behavior changes as a result of
training
• Results-oriented objectives
– how measurable outcomes of an individual or
group change
2
Define Training Objectives
• Purposes of training objectives:
– To help the trainer connect the
purpose of the training program with
its content.
– To help evaluate training
At the end of this training session,

67. Banquet Set Up Staff will be able to
set up meetings according to the
details specified on Banquet Event
Orders.
Select and Pretest Trainees
• How do you select employees for training?
• What does the TRAINER need to know about
your trainees before training?
• How do you determine what employees know
BEFORE training?
Learning Styles
How people prefer to absorb and process
new information:
remember it (lectures, discussions)
pictures)
ers need to interact with the material
they are learning (writing activities, take notes)
rather than hear or see the materials (roles plays,
simulations)
Training Adult Learners
Adults need to:

68. • See the big picture of what they are
learning at the beginning of the
program
• Be involved in training activities
• Have spaced practice when learning
something new
• Be allowed to relate past and current
experiences to the training
Choose Proper Training Methods
• Develop a Training Plan
• Develop Training Lessons
• Develop a Training Handbook
Develop Training Plan
• Training plan – A description of the
structure (overview) and sequence
of the entire training program.
3
Develop Training Lessons
• Training lesson – The information to
be presented in a single session of
the training plan. Each lesson
contains one or more specific
training objectives and indicates the

69. content and methodology(ies)
required to enable trainees to
master the content.
Develop a Training Handbook
• Training handbook – A hardcopy or
electronic manual (file) that
contains the training plan and
associated training lessons for a
complete training program. The
program can be comprehensive or
more specific.
Training for Managers
• Like case study or real world examples
• Prefer activities or one on one conferencing
• Use of behavior modeling (role play) can
impact future performance
Training for Non-managers
• On-the-job training (OJT)
– typically one employee shows another some desired skill
• Job instruction training (JIT)
– requires trainees to proceed through a series of steps in a
sequential order
• Lecturing
– most common form of off-the-job training
• Coaching/mentoring
– encouraging protégés’ skill and leadership development

70. rather than simply making sure employees know how to
do their immediate job tasks
• Programmed instruction
– enables trainees to learn at their own pace
Different Types of Training
• Job rotation
– involves moving trainees from one job to another
• Role-playing
– allows participants to experience what it feels like
to work in a real or exaggerated work situation
• Simulations
– involves the virtual duplication of the work
environment in an off-site setting
Different Types of Training
• Business games
– a form of simulation through which participants
learn how to deal with a variety of issues in a
mock business environment
• Sensitivity training
– helps participants become aware of their own
behaviors and of their behaviors toward others

71. 4
Checklist for Designing a Training Program Tips for Training
• Provide some means for reinforcement while
trainees learn
• Structure tasks from the simple to the
complex
• Be adaptable to specific problems
• Encourage positive transfer of knowledge and
skills from the training to the job
Other Impacts on Decisions About Training
• Ensure all have equal access to training programs
• Be sensitive to work/life balance and travel related to
training
• In a tight labor market, individuals may be hired who
don’t meet all job requirements and need training to
bridge gaps
• Basic English reading and writing skills may be needed
• Make reasonable accommodations for employees with
disabilities
Evaluation of Training
Level 1: Reaction
How employees feel about the course, the instructor, etc.
(measured through survey)

72. Level 2: Learning
What learning has occurred (measured with pre-
training/post-training assessment
Level 3: Behavior
Performance should improve (transfer of learning should
occur on the job)
Level 4 and 5: Results and Return on Investment
What business results can be attributed to training (savings
generated, revenue, error rate, etc.)
1
1. Explain the purpose of an orientation program.
2. Distinguish between a general property orientation and a
specific job
orientation.
3. Identify approaches to orientation that managers should take,
and others
that they should avoid.
4. Explain the purpose of a socialization and culture program,
and identify
specific socialization strategies and approaches.
Competencies
Managing Hospitality Human Resources
Chapter 5: Orientation and Socialization

73. Orientation Planning and Goals
• Orientation the process of introducing new employees
to their work and to the environment
• New employees who receive orientation training tend
to stay longer
• Orientation programs are designed to reduce the stress
that employees feel when beginning a new job
• Orientation programs should include:
– Information about job-related issues
– Information about cultural issues
– Information about specific job responsibilities and technical
aspects of the job
Orientation Programs
• Orientation kits enable employees to review
material discussed during the day
• Some properties divide orientation into two
programs
– general property orientation
– specific job orientation
• A package of written materials given to new
employees to supplement the oral information
provided during the orientation session.
Can include:
• Current organization chart
• Copy of employee handbook

74. • Copies of employee performance appraisal
forms/procedures
• Current copy of employee newsletter
• Federal, state, and local tax law materials
• Layout (maps) of facility (large properties)
• Accident prevention guidelines
Orientation Kit
Steps of Employee Adaptation Process
1- New employee has perceptions and attitudes
about the work and the organization
2- Early on-job experiences (orientation and
training) affect new employee’s attitude
3- New employee adapts to the organization, is
accepted by peers, and wants to become team
member
4- Initial on-job performance is affected by
attitude about organization, desire to work to
standards, and interest in remaining with the
organization
What’s a BAD Orientation?
2
• Improves employee retention rate
• Communicates to employees what is expected

75. • Helps satisfy employee’s need to know about
where he/she works
• Increases employee commitment by introducing
them to the company’s mission and philosophy
• Shows how individual jobs fit into overall
company mission
• Improves morale and contributes to employee
motivation
• Helps put new employees at ease
Benefits of a “Good” Orientation
• Employee handbooks are necessary and should include ???
• Ways to encourage employee use of handbooks
– Standards should be respected and consistently met.
– Managers, supervisors, and employees should role-model
examples for their peers.
– Inform staff members about the reasons for the policies
and procedures.
– Information about the most important policies and
procedures should be presented during orientation.
– Staff members should recognize that compliance with
reasonable policies and procedures is part of the
agreement with, and relationship between, their
employers and themselves.

76. Employee Handbooks
Department Orientation
• Conducted in the actual department to provide
information about specific job responsibilities and
the work environment
• Covers topics directly related to the job
– responsibilities outlined in the job description,
– work equipment
– the working environment
– tour of the department and work areas
• Induction
– The process of providing new employees with basic
information that everyone is required and unique to
their department.
• Orientation Follow-Up
Orientation Follow-Up
• Orientation should have an end point, which
should be followed by a period of close
employee supervision
• Mentoring programs may give continual
contact with experienced employees for the
new employee’s first few months
• Managers may give a short test at the end
Socialization and Culture

77. • New employees must undergo socialization
– learn the values, norms, and behaviors of the
organization’s social culture
• Research indicates that new employees who
are effectively socialized to the organization
are more productive more quickly than those
who are not
• Proper orientation and socialization can help
reduce turnover
Planning Socialization
and Culture Programs
• Welcoming activities
• Understanding the organizational history, values, and
purpose
• Implementation of a realistic orientation program
that addresses the stress new employees feel
• Immediate connection to a person in a similar role or
to a mentor
• Must offer a realistic orientation program to reduce
new employee stress
3
Socialization Strategies

78. Formal vs. informal
Individual vs. collective
Sequential vs. non-sequential
Fixed vs. variable
Tournament vs. contest
Serial vs. disjunctive
Investiture vs. divestiture
Who Should Socialize Newcomers?
• Managers/employees
• Marginal employees
• Teams