Problems and Background

The Hotel Paris’s competitive strategy is to use superior guest service to differentiate the Hotel
Paris properties and to thereby increase the length of stay and return rates of customers and
thus boost revenue and profitability. But to use those strategies they had to make sure their
employees are doing their jobs properly and performing according to their standards or not.
Performance appraisal means evaluating an employee’s current or past performance relative to
his/her performance standards. Performance appraisal is one of the most important factors of
an organization and a particular organization need to do it well to achieve their strategic and
organization goals. But Hotel Paris was failed to determine their employee’s performance
appraisal. So, HR manager Lisa Cruz must now formulate appraisal policies and activities that
support their competitive strategy.

Inadequate performance appraisal system was the main cause of their problem. If there is a
problem in their system, the whole thing will collapse or not reach the level they should have.
So, having an inadequate performance appraisal system really hurt the performance of Hotel
Paris. Hotel Paris did not force either the employee or their supervisors to focus the appraisal
on the extent to which the employee was helping the hotel to achieve its strategic goals. The
current appraisal process was helping neither the condition of the hotel nor the performance
standards of employees. So, they had to change their appraisal process.

Options and Actions

They need to create a performance management system that focused on both competencies
and objective. Performance appraisal is setting work standards, assessing performance, and
providing feedback to employees to motivate, correct, and continue their performance and
performance management is an integrated approach to ensuring that an employee’s
performance supports and contributes to the organization’s strategic aims. Hotel Paris’s
managers and supervisors’ needs to take necessary steps to make sure that these two process
go well. There are a lot of methods of appraisal and they could use one or two of them to
improve their performance standards. Such as:

 ACR / Annual Confidential Report

 Graphic Rating Scale
 Alternation Ranking Method
 Paired Comparison
 BARS
 Forced Distribution Method