HRM - Performance Management - Critically Evaluating

1. Unit 5: Performance
Management
Assignment Task – 01-A
Waseem Hameed
1/27/2019

2. Page 1 of 10
Table of Contents
Evaluating existing performance management system for Swissotel Hotel and Resorts...............2
Prerequisites ...............................................................................................................................................2
The Aims of the performance Management...........................................................................................2
Appraisal Method .......................................................................................................................................3
Performance Planning...............................................................................................................................3
Develop Objectives/ Defining technical Competencies....................................................................3
Defining behavioral competencies.......................................................................................................3
Core Values.................................................................................................................................................4
Ratings.........................................................................................................................................................4
Final Rating .............................................................................................................................................5
Individual development Plan.....................................................................................................................6
Performance Execution.............................................................................................................................6
Employee’s Responsibilities.................................................................................................................6
Manager’s Responsibilities...................................................................................................................6
Performance Assessment.........................................................................................................................7
Improving Performance.............................................................................................................................7
Performance Review .................................................................................................................................8
Reviewing Performance – 12 Golden Rules..........................................................................................8
Performance Renewal and Re-contracting ............................................................................................9
Conclusion.................................................................................................................................................10
References................................................................................................................................................10

3. Page 2 of 10
Evaluating existing performance management system for
Swissotel Hotel and Resorts.
Below discussion will take place on the current performance management system in place for
the Swissotel Hotels and Resorts and considering the process of Front Office department for the
line employees as an example to discuss its negative and positive aspects in the performance
management system.
Prerequisites
For the front office department the individual goals have been aligned to the organizational
goals. Such as front office agents are required to achieve the below mentioned KPI’s on a
yearly basis. It has the characteristic of individual performance management as Armstrong
mentioned in his book and it includes five primary elements of agreement, measurement,
feedback, positive re-enforcement and dialogue with the manager (Armstrong, 2012, p. 332).
The Aims of the performance Management.
The global aim of the performance management is to establish a high performing culture where
individuals are rated according to their individual traits and behavioral approach as per the job
description and to make sure the employees are engaged in the tasks that is aligned to the
overall organizational objectives (Armstrong, 2006, pp. 1,8). It is also the aim to increase
organizational performance and capabilities. (Armstrong, 2012, p. 328).
It also should be a process of development for each employee on competencies they need
improvements on and by the end of the appraisal employees are provided with development
plans so that they can perform better and again re-evaluated throughout the year (Armstrong,
2006, p. 2). However the current practices reveals that the evaluation process praises the high
performing employees and provides complete negative feedback for the low performing
employees. The negative feedback provided for the low performing employees has brought
down the moral and no improvement plans are discussed or placed.
The current practices involves in paperwork rather than changing behavior and to provide
adequate support by assigning relevant trainings. It is not treated as a management tool to help
managers to manage the department and the team. Not obtaining solutions that work. Doesn’t
focus on development for the poor performers and doesn’t adequately focus on rewards for the
high performers (Armstrong, 2012, pp. 332-333).

4. Page 3 of 10
Appraisal Method
The current method used to conduct appraisals in Swissotel is the MBO method. Management
By Objective is results oriented method. This method seeks to measure employee
performances by examining predetermined work objectives (North, [n.d.]). However the
downside of this method is that it can lead to unrealistic expectations by the manager.
Performance Planning
The current process includes a yearly review with each employee with the department head.
Appraisal form consists for the line employees include 3 individual objectives and 7 behavioral
competencies. The feedback form consists of a positive outline.
Develop Objectives/ Defining technical Competencies
The 3 individual objectives or KPIs are aligned to the organizational objectives. It is necessary
to develop achievable SMART goals (Armstrong, 2012, p. 334) and to develop objectives
accordingly (Woods, 2016). The examples given below are for front office agent in the
discussed department. Goal theory helps employees to provide direct attention on priorities; it
provides a stimulation to perform better through their progress on the assigned goal and it
challenges and increases individual skills and competencies (Armstrong, 2012, p. 323).
3 individual SMART goals assigned to each employee which are aligned to the organization’s
KPIs.
1. Setting a yearly goal of achieving revenue by making individual room upselling.
This is directly aligned and is effective to achieving the organizational KPI of
gross operating profit also known as GOP.
2. Creating or enrolling customers to the loyalty membership program. Each agent
is assigned with a yearly goal of enrollments and is aligned to the organizational
objective of Growth of the company. Each agent contributes immensely to the
growth of the loyalty members.
3. Obtaining several positive customer feedbacks through surveys and social media
which directly affect the organizational goal of increasing customer satisfaction.
Defining behavioral competencies
7 behavioral competencies that represent the culture of the organization and competencies
demanded by the position front office agent. The current competencies are well enriched
throughout the appraisal forms.
1. Open Minded = Enriches himself/herself through understanding differences. Is
receptive to new ideas, perception and points of view.

5. Page 4 of 10
2. Guest Centric = Makes guests and their needs a primary focus in fulfilling their
job responsibilities and resolving guest issues.
3. Self Confidence = Demonstrates self-confidence to establish a positive
relationship with guests and colleagues, embodies the Swissotel values and
maximizes all available resources.
4. Communication = Is able to build rapport and establish a personalized
relationship with others
5. Team Player = Works together collaboratively with team members to develop a
mutual relationship of trust and respect. Always supports colleagues openly in
the working environment.
6. Proactivity and Initiative = Is open and pays attention to his/her environment to
anticipate guests and colleagues needs and expectations. Handles the guest’s
request as a priority.
7. Business Awareness and Improvement = Is responsible for seeking opportunities
to grow the revenue of the business, increasing productivity and / or minimizing
loss or expenses.
Some of the above mentioned behavioral objectives are process objectives and performance
objectives defined by the corporate (Armstrong, 2012, p. 331). All above mentioned
competencies helps organizations for better performance. The behavioral objectives give a
better understanding of the competencies that is required for a line employee in any
department. Some of the competencies are linked directly according to the job description of a
front office agent, however some are not.
Core Values
Swissotel Hotels and Resorts consist of 6 core organizational values. Such as Customer
Passion, Trust, Sustainable Performance, Spirit of Conquest, Innovation and Respect. It is
necessary to rate and evaluate how an employee is meeting the expected values thought out
the year. Performance management can be used to encourage employees to live the values
(Armstrong, 2006, p. 53). Expectations can be defined to uphold core values (Armstrong, 2006,
p. 56) and then evaluate employees accordingly.
The current appraisal method does not include evaluating core values that is relevant to the
organization and its culture. New hires are not educated on their goals upon joining and clear
expectations are not set right from the beginning.
Ratings
The current forms that are in use for the evaluations are exceptional but need to include core
values as mentioned above. The form contains instruction information how the evaluation
should take place as a guidance for the departmental managers. It has provided information on
rating scale for better understanding for both employee and for the appraise. Swissotel has
defined rating scales verbally (Armstrong, 2012, p. 337) and have well informed the managers
how to rate employees. Following are the current rating scales mentioned in the evaluation form
for behavioral competencies.

6. Page 5 of 10
Exceptional Performer
Demonstrates all of the behaviours of the competency all of the time at a very high
standard or frequency. Their performance indicates that they would be considered as a
role model to others or an expert in this area.
Successful Performer
Demonstrates all of the behaviours of the competency most of the time at a high
standard or frequency. Their performance indicates that they have mastered this
competency.
Developing Performer
Demonstrates most of the behaviours of the competency but there may be some
inconsistency or further development required.
Novice or Non Performer
Demonstrates the need for significant improvement in critical areas of the competency.
This may be due to the lack of exposure or development activity to this competency in
their current role. Or it can be due to a lack of effort, ability or willingness.
Final Rating
The process provides a final rating where the ratings are considered for the rewards on
numerical order (Armstrong, 2012, p. 337). The final ratings are mentioned below. This provides
the rater a better understanding on how to rate the employee.
5 Outstanding Performance
Majority of competencies are identified as Exceptional Performer. All objectives
have been exceeded.
4 Performance Exceeds Expectations
Majority of competencies are identified as Successful Performer with some
Exceptional. All objectives have been met or exceeded.
3 Performance Meets Expectations
Majority of competencies are identified as Successful Performer any Developing
Performer competencies are balanced with Exceptional Performer. All objectives
are met, within realm of control.
2 Performance Needs Improvement
Majority of competencies are identified as Developing Performer with some
Successful Performer competencies but there are no balance of Exceptional
Performer. May have met some objectives but failed to meet others within realm
of control.
1 Unsatisfactory Performance
All areas are Developing Performer or Non Performer. Failed to meet objectives
within realm of control.

7. Page 6 of 10
Individual development Plan
It is necessary to provide a learning action plan for each individual according to the
competencies they need to improve on. It is the process of creating an action plan according to
the goals, KPIs, awareness and organizational values. The primary purpose is to help
employees to achieve short and long term career goals (OPM.GOV, n.d.).
The current process carried out in Swissotel lack in assigning individual development plan.
Individual development plan should consist of plans that would develop employee’s knowledge
and competencies. (Armstrong, 2006, p. 19). This is observed due to lack of trainings placed for
the employees and there are no improvements to be noticed with the employees as per the
performance appraisal conducted in previous years. Hence it is highly necessary to place
correct development plans and provide adequate relevant trainings. Departmental managers
are required to discuss development opportunities with the employees as it helps recognize
individual potential and aspirations (Armstrong, 2006, p. 22) , improves current job performance
and provides employees a sense of belonging (Babcock, 2015).
Performance Execution
Employee’s Responsibilities.
Once it has been agreed upon employees take the responsibilities of meeting the expected
performance throughout the year for both technical and behavioral competencies. Commitment
to achieve the goal, request for feedback and coaching, have proper communication with the
supervisor and collecting required data that would be favorable for the next review. The
employee is required to achieve all goals and need to understand that the yearend rating will be
subjective on the competencies initially agreed upon. However it has been observed that
colleagues are more engaged in operational requirement lack of interest due to onboarding
incorrect talent that is not suitable for the position. Only few colleagues are engaged in
improving their skills and competencies. Employees need to understand that their pay and
future is affected by performance evaluation (Armstrong, 2006, p. 173).
Manager’s Responsibilities.
Managers are required to conduct regular meetings and follow up on personal development
plans and assign KPI’s for individual employees. In addition to regular meetings it is
recommended to carry out one to one meetings. During conducted meetings, managers are
required to observe the progress made by employees and provide necessary assistance and
guidance to employees to achieve their targets set out during the performance meeting in the
beginning of the year (Armstrong, 2006, p. 71). Implementing control theory and providing
constant feedback to shape employees behavior to highlight the discrepancies and accordingly
assigning development plans is an action managers need to carry out (Armstrong, 2012, p.
323).

8. Page 7 of 10
Current practices in Swissotel reveals that though regular meeting are carried out departmental
level, the required observation, documentation, providing improvement feedbacks and
resources to improve performances are not in place. There are no proper reviews made from
the departmental managers quarterly or biannually. The two main issues that arise in managing
performances are that updating objectives and providing continuous learning opportunities. The
reviews are made again on the next performance meeting instead. Poor documentation of
specific outcome are not documented either (Armstrong, 2006, p. 71). The major issue the
organization face is lack of knowledge departmental manager possess in the importance of
placing correct performance management system. However managers can be encouraged to
believe in performance management system through good practices (Armstrong, 2006, p. 172).
Performance Assessment.
It is necessary to conduct multiple assessment throughout the year in order to make sure the
employees are heading towards right direction in achieving their individual KPI’s and necessary
trainings are provided to improve skills and competencies for the required individual.
Assessments increase employee ownership, increases commitments, provides information and
it further ensures mutual understanding.
Prior to the assessment Swissotel performance management system requires a self-
assessment from each employee. The current assessment form provides necessary instructions
for the employees on how to self-evaluate and provides detailed information on each
competency for better understanding.
Once the self-assessment is received the manager’s assessment will take during one to one
performance review meeting.
Improving Performance
As Armstrong points out that the improvement of performance is a fundamental part of
continuous process of performance management. Managers need to understand that the poor
performers possibly are a result of poor management, inadequate leadership, mentoring and
defective work system can also lead to poor performances (Armstrong, 2006, p. 119).It is a
leadership quality all managers should possess to develop and improve the performance of
each employees, especially for the underperformers. Currently the managers do not understand
such could be a reason for poor performers but rather blame entirely on the employee for their
poor performance.

9. Page 8 of 10
Performance Review
Through performance review meetings, the five elements mentioned above such as agreement,
measurement, feedback, positive reinforcement and dialogue can be put to good use. It should
allow managers and employees to take positive steps towards to improving the performances
and agreeing for the rewards accordingly (Armstrong, 2006, p. 75). However currently practices
carried out in departmental level is more like providing negative feedback for their poor
performances and no development plans are provided to the poor performing employees, but
rather to highlight that no rewards will be provided. More personal prejudice and the halo effect
are observed during the review meetings for employees.
There are positive effects in such meetings as sometimes employees are not aware of their
poor performances and bringing such deficiencies to their attention can provide an opportunity
to reevaluate and refocus on their performances. However providing negative feedback may let
the employee feel frustrated, angry and resentful due to the critique received for a performance
that they may think adequate. This could lead to continuous poor performances and the
employee might care less about his future performances or the assigned KPI’s which can affect
the overall organizational goals (McQuerrey, 2013). This is what currently being observed in
Swissotel and due to this high turnover has become an outcome for the organizational hence it
is highly required to educate and provide necessary training for the managers who conduct
performance evaluation on the importance strategic performance management system.
Reviewing Performance – 12 Golden Rules
There are 12 golden rules to conduce a performance review meeting (Armstrong, 2012, p. 335).
Below will be evaluating the current practices according to the 12 golden rules as mentioned in
Armstrong’s book.
1. Preparation
Managers are required to be prepared for the meeting and should have all the required data and
information to conduct the evaluation. Current practices reveal that the managers are well
documenting the data and information and are well prepared for the review meeting.
2. Clear Structure.
Meetings are planned well by managers and covers all the points. The same structure is used
for all the colleagues and meetings are given enough time for better communication.
3. Right atmosphere
The atmosphere is brutally frank and gives a better understanding for the employee. However
less friendly discussion and exchange of view are taking place.
4. Providing good feedback
Current feedbacks are provided from data gathered throughout the year hence the feedbacks
provided are factual.
5. Using time productively
Adequate time is provided for the employee to express their feedback to the reviewing.
6. Using Praises

10. Page 9 of 10
Managers are currently praising employees for their achievements. However current practices
need to increase the praises for the lower performing employee to boost morale.
7. Letting Employees do the talking
Managers are required to let the employees to do more of the talking during the meeting.
Current practices indicate that managers are providing constant feedback and employee
engages in listening.
8. Invite Self-assessment
All colleagues are required to provide a self-assessment prior to the performance meeting.
9. Discussing performance not personality.
Managers are conducting review meetings on factual evidence and not on personality.
10. Encouraging analysis of performance.
Managers are currently just praising or providing negative feedback and not adequately
encouraging to analyze jointly instead analyzed partially and not providing clear understanding
on what could be done to improve performances.
11. Delivering unexpected criticisms.
There are no such unexpected criticisms are discussed by the managers during the review
meeting.
12. Agreeing measurable objectives and plan of action.
Currently managers just provide positive and negative feedback so that they can rate the
employee accordingly. Managers gives importance for performance evaluations of the high
performers and neglects to understand the importance of developing the under performers. The
process rather completed as part of administration. This is one of the major negative impacts on
the entire performance evaluation that has been observed in the organization. Measurable
objective are discussed during the meetings but personal development plans are not discussed
with the employees. During the meeting the previous assessment ratings are not considered to
understand the improvements each employee have made or make necessary action plans and
development plans accordingly.
Performance Renewal and Re-contracting
Since the performance management system is a self-renewing cycle (Armstrong, 2006, p. 16), it
is necessary to review, renew and re-contract new goals and competencies accordingly as
business needs may change throughout the year. It is also required to renew the performance
agreement made between the manager and the employee each year during the performance
appraisal. Current practices carried out within the organization can be considered that the
managers are renewing agreements and providing new goals and KPIs according to the new
organizational goals.

11. Page 10 of 10
Conclusion
According to the above mentioned positive and negative features of Swissotel’s performance
management system, it has been highlighted that there are some major concerns needs
immediate addressing on the process in order to improve the overall performance of the
organization. However some aspect of the process may indicate positive features yet, the
negative features impacts greater on the system.
References
Armstrong, M., 2006. Performance Management. 3rd Edition ed. London: Kogan Page Limited.
Armstrong, M., 2012. Armstrong's Handbook of Human Resource Management Practice. 12th
Edition ed. London: Kogan Page Limited.
Babcock, M., 2015. INDIVIDUAL DEVELOPMENT PLANS: WHAT ARE THEY AND WHY ARE
THEY IMPORTANT?. [Online]
Available at: https://www.gyrus.com/individual-development-plans-what-are-they-and-why-are-
they-important/
[Accessed 05 01 2019].
McQuerrey, L., 2013. The Effect of Negative Performance Evaluations on Future Performance.
[Online]
Available at: https://yourbusiness.azcentral.com/effect-negative-performance-evaluations-future-
performance-14668.html
[Accessed 08 01 2019].
North, A., [n.d.]. Results Method. [Online]
Available at: http://www.performance-appraisal.com/results.htm
[Accessed 10 01 2019].
OPM.GOV, n.d.. Training and Development Policy Wiki. [Online]
Available at: https://www.opm.gov/wiki/training/individual-development-plans.ashx
[Accessed 05 01 2019].
Woods, C., 2016. What Is the Planning Process? - Steps & Concept. [Online]
Available at: https://study.com/academy/lesson/what-is-the-planning-process-steps-lesson-
quiz.html
[Accessed 05 01 2019].