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Performance Appraisal
• Performance appraisal is the process of obtaining, analyzing and recording
information about the relative worth of an employee. The focus of the
performance appraisal is measuring and improving the actual performance
of the employee and also the future potential of the employee. Its aim is to
measure what an employee does.

According to Flippo, a prominent personality in the field of Human resources,

"performance appraisal is the systematic, periodic and an impartial rating of
an employee’s excellence in the matters pertaining to his present job and his
potential for a better job.

“Performance appraisal is a systematic way of reviewing and assessing the

performance of an employee during a given period of time and planning for his

• It is a powerful tool to calibrate, refine and reward the performance of the

• It helps to analyze his achievements and evaluate his contribution towards the
achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart

of personnel management and reflects the management's interest in the progress
of the employees.

Objectives Of Performance appraisal:

• To review the performance of the employees over a given period of time.

• To judge the gap between the actual and the desired performance.
• To help the management in exercising organizational control.
• Helps to strengthen the relationship and communication between superior –
subordinates and management – employees.
• To diagnose the strengths and weaknesses of the individuals so as to identify
the training and development needs of the future.
• To provide feedback to the employees regarding their past performance.
• Their personal decisions in the organization.
• Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
• To judge the effectiveness of the other human resource functions of the
organization such as recruitment, selection, training and development.
• To reduce the grievances of the employees.
• Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.

Performance Appraisal Process

The performance appraisal process is a process that evaluates employee
performance. Normally it compares quality, quantity, cost, and time. Some of the
things that performance appraisal are used to do would be.

• Give something tangible to the employee regarding their work performance.

• Shows what training employees need.
• Determines what the employees raise might be.


(Tools of ) Performance appraisal methods include 11 appraisal methods / types
as follows:

1. Critical incident method

The critical incidents for performance appraisal is a method in which the manager
writes down positive and negative performance behavior of employees throughout
the performance period
2. Weighted checklist method
This method describe a performance appraisal method where rater familiar with
the jobs being evaluated prepared a large list of descriptive statements about
effective and ineffective behavior on jobs
3. Paired comparison analysis
Paired comparison analysis is a good way of weighing up the relative importance
of options.
A range of plausible options is listed. Each option is compared against each of the
other options. The results are tallied and the option with the highest score is the
preferred option.
4. Graphic rating scales
The Rating Scale is a form on which the manager simply checks off the
employee’s level of performance.
This is the oldest and most widely method used for performance appraisal.
5. Essay Evaluation method
This method asked managers / supervisors to describe strengths and weaknesses
of an employee’s behavior. Essay evaluation is a non-quantitative technique
This method usually uses with the graphic rating scale method.
6. Behaviourally anchored rating scales
This method used to describe a performance rating that focused on specific
behaviours or sets as indicators of effective or ineffective performance.
It is a combination of the rating scale and critical incident techniques of employee
performance evaluation.
7. Performance ranking method
Ranking is a performance appraisal method that is used to evaluate employee
performance from best to worst.
Manager will compare an employee to another employee, rather than comparing
each one to a standard measurement.
8. Management By Objectives (MBO) method
MBO is a process in which managers / employees set objectives for the employee,
periodically evaluate the performance, and reward according to the result.
MBO focuses attention on what must be accomplished (goals) rather than how it is
to be accomplished (methods)
9. 360 degree performance appraisal
360 Degree Feedback is a system or process in which employees receive
confidential, anonymous feedback from the people who work around them. This
post also include information related to appraisal methods such as 720, 540,
10.Forced ranking (forced distribution)
Forced ranking is a method of performance appraisal to rank employee but in
order of forced distribution.
For example, the distribution requested with 10 or 20 percent in the top category,
70 or 80 percent in the middle, and 10 percent in the bottom.
11. Behavioral Observation Scales
Behavioral Observation Scales is frequency rating of critical incidents that worker
has performed.



The Oberoi Group, founded in1934 by Rai Bahadur M. S. Oberoi, owns or manages
35hotels and luxury cruisers across seven countries. The group has two principle
brands the deluxe Oberoi Hotels & Resorts and the first class Trident Hilton. The
Group is also engaged in flight catering, airport restaurants, travel and tour service,
car rentals,project management and corporate air charters.
Rai Bahadur Oberoi laid the foundation of the Oberoi Hotel by acquiring his first
property ³The Clarks Hotel´ in Shimla. In1943, he acquired eight properties of the
associated hotels of India thus giving shape to the Oberoi Group of Hotels, India’s
first hotel chain. On 26th May1949, M. S. Oberoi floated ³The East India Hotels Ltd.´
a corporation, which has grown into EIH Limited± the flagship of the Oberoi Group.
Hisson P. R. S. Oberoi played a key role in introducing new concepts in Indian
Hospitality Industry. He took his father’s dream further by exporting Oberoi
management expertise to Australia, Saudi Arabia, Egypt and Indonesia. Today they
have 35 Oberoi Hotels inseven countries of the World.
Oberoi Hotels and Resorts under the flagship of EIH Ltd is the second largest hotel
chain in India. The group is one of the recipients of the numerous awards and
accolades in the world of International travel and hospitality. Five Oberoi hotels are
the members of the ³Leading Hotels of the World´ and the eight Oberoi Hotels are
the members of the ³Leading Small Hotels of the World´ (these hotels are chosen
for their extra-ordinary levels of guest comfort and services).
• A distinctive feature of The Groups hotels is their highly motivated and well-
trained staff that provides the kind of attentive and sensitive service that is
rare today.
• The Oberoi Group employs over12,000 people worldwide. Training is a
particular strength.
• Set up in1966, The Oberoi School of Hotel Management, which is now
known 7 as The Oberoi Centre of Learning and Development (OCLD), is
considered one of the best in Asia, providing high quality, professional
training in hospitality management.
• The people development activities in the company take shape from

The Oberoi People Philosophy (HR POLICIES)

Organizational Structure and Manning

• Organization structure is lean with a minimum number of levels and with

clear individual reporting and accountability.
• Recruitment and Selection: At entry level of the organization they select
people of the highest quality and with the highest potential to advance their
• Performance Appraisal: To inculcate a culture of personal growth and
organizational excellence based on the principles of performance based
• Learning and Development: They aim for world-class managerial and
technical excellence using continuous learning and development to support
the business and encourage growth within.
• Career Development: We provide careers, not merely jobs, to their
people, through developing them in ways where organizational needs are
matched with personal strengths and potential
• Succession Planning: Their focus on development of people will reflect
their international character and ensure that they have the right number of
employees with the appropriate skills in the right place at the right time.
• Transfers: Transfers, National or International are based on organizational
needs and career development requirements of the individuals.
• Compensation: Their compensation philosophy enable them to recruit
and retain the best and most highly motivated talent and encourage the
highest level of performance amongst their employees through result based
reward and recognition and be related to the company’s overall business
• Employees relations: To create and preserve an open and harmonious
environment in which employees at all levels want to give off their very best
delivering world-class service at the highest level of productivity.
• Retention: Retention of talent is a key management responsibility as is
separation of those whose performance is consistently below par or who
breach the accepted ethical standards and rules of conduct.

Training and Development Vision' of the Oberoi Group, which

"We see an organization where people are nurtured through continuous
learning and skill improvement, and are respected, heard and encouraged
to do their best. Oberoi is recognized as the best centre for training and
developing its people ."

Identifying The Process Of Performance Appraisal of The

Oberoi Hotels.
Basically there are two types of performance appraisal done on the basis of
designation of the OBEROI HOTEL’S employee. They are:

1.Executive performance appraisal system

2.Non-executive performance appraisal system


This system is for performance appraisal for executives of the level E-0 to E-4 .
Thevarious steps involved are:

A)Self Appraisal Performance Review & Planning

I. Appraisee writes his view over the actual achievement for the Key performance
area / Task and Target assigned to him for the year.

II. Comments on fulfillment of KPA / Task and Target are written by the Reporting
Officer , taking account of time frame also.

III.Special Jobs other than tasks given and normal routine work are written by

B)Performance Review Discussion

I.Both appraisee and reporting officer sit together.

II.Comment over Strengths and weaknesses and areas for development are
written which is undersigned by both .
III.Appraisee can help the reporting officer by giving examples which shows his
strength or weakness. He also tell what training he want to undergo.

C) Performance Assessment
I. Rating between 1 to5 are given to the appraisee by the Reporting Officer and
Reviewing Officer individually on the basis of Performance Factors and Potential
Performance Factors :
Quantity of output
Quality of output
Cost control
Job Knowledge and Skill
Team spirit and Lateral
Development & Quality of assessing subordinates
Special Relevant factor
Potential Factors :
Communication Initiative
Commitment and sense of Responsibility
Problem Analysis and Decision making
Planning and Organizing
Management of Human resources
II. Different weightage are given to each factor
III. Final scores are calculated by multiplying rating and weightage .By adding
these Total Factor Score is calculated.
IV. Comments on Overall Performance And Potential are written by both
Reporting and Reviewing Officers individually.
D)Suggestions for Job Rotation and Job Enrichment
• Both reporting and reviewing officers write their suggestions whether the
appraisee should be transferred to other department.
• Either a good employee is transferred so that he can acquire knowledge of all
the departments, or a worst performing employee is transferred so as to
improve his performance.
II.In some exceptional case Head of department give his comments on overall
performance & potential of the employee.
E) Final Assessment
I. Total Factor Score by both Reporting and Reviewing officers is written and
average is calculated.
II. Final Grading between O / A / B / C is given .
III. If Final Grade is C , indicate whether to promote or not to promote the
IV.If not to promote give reasons.
V.Meeting with non-promotable appraisee.


I.Rating are given by both Reporting and Reviewing officers on the basis of
performanceof the appraisee depending upon factors:
Performance on the Job
Job Knowledge & skill
Multi-skill Utilization
Conduct & behavior
Punctuality & availability on job
Cost & Quality Consciousness
Initiative & Capacity to assume higher
Housekeeping & safety consciousness

II.Weightage are given to various factors .

III.Scores out of 100 are calculated by multiplying rating with weightage .

IV.O / A / B / C / C- Grades are given according to scores and attendance of the


V.If grade is C- , then appraisee is interviewed by the Head of Department.

In the present performance appraisal system of OBEROI HOTEL, it
can be said that the Oberoi Hotel follows a wonderful and excellent
HR policies to educate, train, retain their employees. The HR
policies follows a an open environment herein employees at each
level are treated equal and follow a an international trend of calling
each other by their name instead of following traditional approach of
conservatism. The performance appraisal adopted and followed by
oberoi hotel is 360 degree appraisal wherein employee is appraised
from his subordinates, seniors and also from the members from
other department.

But still there are few loop hole in the system of their performance
appraisal, they are :
• If the appraisee has good terms with the reviewing officer and
does not have a smooth relationship with the reporting officer ,
in such case the reporting officer is sometimes forced by the
reviewing officer to give better score to the appraisee.


• The reporting officer should keep the performance data of

each subordinate.
• The reporting officer should give monthly feedback to the
subordinates regarding their performances and thereby giving
suggestions to improve.






 Thomas F. Patterson (1987). Refining Performance Appraisal. Retrieved 2007-01-18.

• Description
Identifying the process of performance appraisal at The Oberoi Hotel, New
Identifying the various parameters involved in the process
Benchmarking of the process
Comparative analys

• Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.

• To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.

• To reduce the grievances of the employees.

Identifying the process of performance appraisal at The Oberoi Hotel, New Delhi
Identifying the various parameters involved in the process
Benchmarking of the process
Comparative analys