Professional Documents
Culture Documents
In Fulfillment of the
(MBA)
by
51230025
Tripoli, Lebanon
Summer 2016-2017
1
DEDICATIONS
Every Challenging work needs self-effort as well as guidance of elders especially those who
Whose affection, love, encouragement and pray of days and nights make me able to get such
2
ACKNOWLEDGEMENTS
University (LIU) for the time that they spend for helping me and for the support to finish the
thesis and I am particularly grateful to my supervisor, Dr. Khalil Ghazzaoui for his advice
and support.
Last, I am grateful to my family for their support throughout my educational life and
thanks to my friends for support and being with me for the entire research work and helping
3
ABSTRACT
The main purpose of this project is to assess the relation between employee awareness of
motivation. Previous studies showed that a positive relationship exist between these two
questionnaires on 50 employees at Quality-inn hotel. This paper found that many problems
exist in the Performance appraisal system such as rater’s subjectivity frequency of conducting
4
Table of Contents
1.1- Intoduction..................................................................................................................... 12
5
2.5.3- Personnel difficulties ......................................................................................... 37
2.7- Summary....................................................................................................................... 39
APPENDIX A ......................................................................................................................... 92
6
LIST OF TABLES
7
Table 32- Commitment and PA ............................................................................................... 76
Table 33- Effectiveness of performance appraisal................................................................... 77
Table 34- Cross-tab 1 ............................................................................................................... 78
Table 35-Cross-tab 2 ................................................................................................................ 79
Table 36- Cross-tab 3 ............................................................................................................... 79
Table 37- Cross-tab 4 ............................................................................................................... 80
Table 38- Cross-tab 5 ............................................................................................................... 80
Table 39- Significance ............................................................................................................. 82
8
LIST OF FIGURES
9
Figure 33- Performance appraisal and how is influenced by personal gifts ............................ 72
Figure 34- PA satisfaction ....................................................................................................... 73
Figure 35- Clear communication ............................................................................................. 74
Figure 36- Performance appraisal follows up .......................................................................... 75
Figure 37- Commitment and PA .............................................................................................. 76
Figure 38- Effectiveness of performance appraisal ................................................................. 77
Figure 39- Gaps of performance appraisal............................................................................... 85
Figure 40- Model for performance appraisal ........................................................................... 85
10
PART I: THEORICAL FRAMEWORK
11
CHAPTER 1: INTRODUCING THE GRADUATE PROJECT
1.1- Introduction
employee motivation and development.” Researchers stated that it’s very important to
interview, the same study found that employee satisfaction and a good performance
appraisal system are positively impacting each other. All aspects that characterize a
such as high productivity, job satisfaction and many other variables are positively
A limited number of studies were conducted on this topic, but yet the mentioned
will help in generating a good outcome that will support categorizing, identifying and
12
1.2- Research Problem
perception is the set of perceived rules and regulations, organizational goals and
behaviors that are directly related to the employee’s status in the organization.
This research paper studies the performance appraisal done at Quality-inn hotel in
Tripoli, a hotel facing dozens of problems; the main problem studied in research
paper is the perception of performance appraisal system. The main issues here are the
bias and errors in the rating of Performance appraisal and in the appraisal interview.
Thus this study aims to managers in understanding the effectiveness and efficiency of
Therefore, and based on what was already stated, the following research questions
13
1.3- Research Objectives and significance of the study
factor for Human Resource Management, and researchers in this field are still
studying the topic thoroughly. Performance appraisal helps in solving different human
enhancement…
Human resources management inside an organization. Clear and strict rules and
For the performance appraisal system to succeed, employees should well perceive
it. In other words, in any performance appraisal employees have to react positively to
14
1.4- Research Hypothesizes
motivation and development. Few studies were conducted on the relation between
employee awareness and engagement in the performance appraisal system and the
indicated that employee awareness and appraisal system are positively related, as well
15
1.5- Overview of the Sector/Domain/Organizations
Recent statistics published in 2015, the Lebanese hotel sector is a very attractive
1,500,000 tourists visit Lebanon each year, with many new famous hotels opening in
Beirut and around the country. An increase by 19% is expected each year; most of
especially to its gateway link between the Middle East and Asia, and due to its 4
season’s weather.
According to statistics 90% of the 5 stars hotels in Lebanon are situated in Beirut,
whereas 80% of 3 and 4 stars hotels are situated outside of the capital. The study
added that 22.2% of the Lebanese GDP is made up by the outcomes of the Lebanese
16
Figure 2- Geographical Distribution of Hotel Categories (2) (BLOM, 2015)
After the Syrian bloodshed the occupation of hotels in Lebanon dropped from
90% to merely 72%, and in 2013 it reached 51% in one of the lowest rates ever
recorded.
17
Quality Inn hotel is a 4 stars hotel located in Tripoli ranking, and encompassing
112 rooms from different sizes. The hotel is located in Rashid Karami international
fair, with an astonishing view for the mountain and the city.
According to quality Inn hotel, 2016:“We ensure the highest level of hospitality
while providing warm welcoming and appropriate service for our guests. We dedicate
our guests a distinctive collection of rooms and services suitable for their
expectations. We also offer a wide range of innovative dishes to provide our guests
with the ultimate taste and flavors. We are a business oriented hotel, while offering all
meeting and conference facilities to satisfy all corporate requirements.” (Quality inn,
2016)
18
CHAPTER 2: LITERATURE REVIEW
function in the human resources field, in which a comparison between employee current
performance, compared to the given job description. Employee appraisal is also defined as a
help managers in developing employees’ current and future outcomes, this will directly
Performance appraisal is known for its positive impact on employee development and
progress, as it assesses each weakness and strength in employees, and takes actions according
developing enterprises’ future outcomes and makes them more beneficial. Thereafter, and as
a conclusion from the above sections, we can directly relate employee participation and
al., 2011).
19
2.1- Definition of performance appraisal
not considered the only step that includes (Abdulkadir, Isiaka, & Adedoyin, 2012):
a) Continuous performance
b) Firm’s objectives
c) Compensations
d) Skills development
c) Supervisor’s capability
appraisal:
Established by the United States Navy during the world war one, is a
20
This technique compares individuals themselves, in addition to their wages
outcome. The higher the outcome is, the higher the payment that is going to be
The main reason behind the failure of this traditional view of performance
employees with same working capabilities would still get paid in the same
Self-confidence
Employee Satisfaction
introduced by Taylor in his study called “time and motion”. This theory is
considered one of the most effective appraisal theories in the field of human
resources management.
21
The modern theory contradicts with traditional performance appraisal
theory in many forms. The main contradiction between the two theories is that
according to the size of the company, at least twice a year. The performance
where their skills lags, and emphasize their development opportunities. This
The following section presents the steps to form methodical procedure for
22
with employees and subordinates inside an organization, and developsthese
source in order to ensure the equality of performance appraisal and its fairness.
along with the barriers of good performance. All of these variables are
23
e. Evaluate appraisal procedures: After finishing the above steps, it’s highly
important to evaluate and assess these procedures in order to ensure that they
2010):
a very important aspect in the Human Resources field that helps organizations
appraisal will let firms divide performance to levels, and associate these levels
employee(s).
24
training and development programs, in order to turn their weaknesses into
strength.
enough information on how their team will act, and what are the important
f. Additional objectives:
period
Performance Appraisal
25
2.4- Performance appraisal and employee contribution
one of the greatest obstacles of the performance appraisal process. Thus, the
in this table:
To ensure that those measures are relevant acceptable in the point of view
progressed measures
the assessment.
26
Recognize the importance of capabilities and skills of the designated
job
present the main characteristics of a certain job, and add it to the job
description
is very crucial for conducting these procedures. The following factors are
2011):
Performance Appraisal
supervisors
27
2.4.2- Developing appraisal Scopes
accuracy
performance scale, without taking into consideration the job and tasks of
28
concepts: basic competencies that could be applied to performance
that are:
29
process. To provide effective behavior an employee capability will be
affected by the following aspects, such as for example, the putting the
only authorized appraisers are the ones who are able to enter to this room,
First, the appraiser should make sure that data are collected from reliable
before performing the PA interview; this will cause a huge bias in assessing
information, various methods are used, include 360 degrees feedback. Many
solely.
30
Self-assessment is also a recommended strategy to increase satisfaction
(Kuvaas, 2006) (Demir, Desmet, & Hekkert, 2009) (E. A. Brown, Thomas, &
Bosselman, 2015):
a. Self-appraisal
This step is very crucial for the assess of individual’s performance and
b. Managerial appraisal
c. Colleagues assessments
groups. Many studies indicated the bad effects of this type of assessment
on teamwork overall.
31
d. Subordinates appraisal
managers’ performance.
e. Consumer appraisal
- Facilitate appraising tools and make it easy and clear through well
overall image of employees, in which their attitudes and behaviors are formed.
performance.
32
It’s highly suggested to utilize the following steps, during, formerly and
emphasize strengths
points of view
feedback
33
2.4.5. Evaluating the Appraisal Process
regular basis. Each process should be appraised with the personnel to measure
increase. The work environment should improve for example, indication that
To start with this topic, researchers have determined that an appraisal system to be
assessment models revealed serious obstacles that can hinder the effectiveness while
34
2.5.1- Structure Plan and Functional Difficulties
An obvious point to be seen is that a poor design can destroy the appraisal
system. This design can be attributed as failure if the evaluation standards are
industry, the assessment criteria should be based output results rather than on
but mangers struggle in their execution due to time and effort consumption
appraiser, normally mangers or supervisors, do not have the right skills even if
the structure is well designed. Upper level managers might not be cooperative
or relaxed with the process of assessment. This is due to the fact that,
managers did not participate in the program design. Given the high profile
35
a. Leniency
grouped ratings are always placed on the positive end of the appraisal
b. Central tendency
In this situation, the appraiser tends to group his rating in the middle of
the scale avoiding the use of very low or very high ratings. This error also
c. Recent performance
d. The halo-effect
negative meaning that the first impression causes the rating to be either
high or low. Other sources of errors for instance prejudices and personal
36
2.5.3- Personnel Difficulties
fair approach to assess performance. In addition, they should believe that the
cannot be taken into measures nor quantified and rely on the opinion of an
2011):
them. The recognized abilities and structures may not offer acceptable
37
2. Halo Effect: The individual’s performance is totally assessed based on
some absences, his manager might give him a high rating in all other
areas of work.
an approach to rate individuals as neither high nor low and follows the
middle path.
appraisal period.
38
2.6- Workers attitude to the context of performance appraisal
appraisal itself and its feedback. In any assessment system the appraiser distinguishes
more than the workers, this gives a system of greeting on the part of the workers to
In addition, the workers’ attitude towards the appraisal can alter by creating the
appraisal system, and how the enterprise earns money. Researchers declared high
trust their feelings about the evaluation system adopted in the association are likely to
prefer administrative variables in the future and have the following features (Mieroop
They are more tolerant and prefer mainly the assessment system and its
feedback.
2.7- Summary
Given the current high profile debate concerning performance appraisal, it’s
the organization and the employees. The literature review had acknowledged three
appraisal procedures, namely, outcome, behavior, and personality. Hence, the last
aspect should be the most studied while assessing performance appraisals. Numerous
addition, controlling the impact of employee awareness can be controlled during the
39
PART II: THE PRACTICAL FRAMEWORK
40
CHAPTER 3: RESEARCH METHODOLOGY
Performance appraisal is an important duty for human resource managers. This explains
the importance of conducting such studies in this field of human resources. This research
paper is made to investigate the main variables impacting employee’s point of view of his/her
important topic. The main factors affecting retention of employees with higher performance
are giving them thorough descriptions of their duties; maintain their constant development,
Following Saunders’ onion, it’s highly important to pick all the right elements of
41
But before stating the part of the research onion, it’s important to mention that in
this literature part, a set of secondary data were used, such as journals, books, internet,
etc..
uses already studied theories, and put them under difficult evaluation processes.
Deductive theories conditions are first, that two or more variables should be used,
outcomes.
answers mainly on these questions: why? When? What? Who? And How? A case
questions forming a questionnaire. The presented questions are all influenced by the
theories presented in the literature review. All data are analyzed through SPSS, by
42
classifying variables on ordinal and nominal scale, based on Likert scaling model. In
addition to that, the questionnaire is based on SHRM or the Society for Human
All researches are affected by many limitations. The project’s main limitations are
time constraints due to limited time given in the summer semester, in addition to
reaching desired number of employees due to the limited accessibility to the hotel, as
well as language limitation since many employees are no fluent English speakers.
43
CHAPTER 4: FINDINGS AND RESULTS
Currently many firms are looking for skilled and qualified persons to act in the
crucial factor for firms in order to ensure their capacity to sustain in the market. The principle
way used by organizations to maintain and sustain their qualified employee is to recognize
performance in order to meet organizational goals. In following part the results of the
44
4.1- Descriptive Statistics
1. Age
Table 1- Age
Figure 6- Age
According to the above table, 26% of the respondents’ age ranges between 23 and 27 years
old.
45
2. Gender
Table 2- Gender
Figure 7-Gender
Most of the respondents are females scoring 76% (n=38), showing that females are preferred
46
3. Educational level
Table 3- Education
Figure 8- Education
According to the table and graph, most of the respondent comes from a technical school
47
4. Workers distribution in departments
Table 4- Department
Figure 9- Department
According to the table above, most of employed individuals (56%, n=28), are working in the
front office.
48
5. Employees’ positions
Table 5- Position
Figure 10 - Position
SPSS results shows that 64% of the respondents are employed as agents (n=32)
49
6. Experience at quality-inn
As a chocking result of this question, 54% of the respondents have less than 1 year of
working period at quality-inn hotel, showing a great turnover rate, which could be due to the
50
7. Hotel’s Performance Appraisal
According to the table above 90% (n=45) of the employees were aware of the performance
51
8. Person in charge for appraisal
64% of the respondents said that performance appraisal is performed by their supervisors
(n=32)
52
9. PA frequency
Table 9- PA frequency
46% (n=23) of the respondents said that they get performance appraisal each 3 months
53
10. Performance appraisal interview frequency
36% of the respondents (n=18) said that performance appraisal interview was never
performed.
Thereafter, the performance appraisal form was not taken seriously into consideration.
54
11. Procedures for Performance Appraisal
70% (n=35) employees said that verbal interviews are used as a performance appraisal tool
whereas 30% (n=15) said that merit pay is used as a performance appraisal tool.
55
12. Employee Participation
31 (n=62%) of the respondent said that they are highly dissatisfied in the participation in the
56
13. Participate in the development of PA standards
64% of the respondents (n=32) are dissatisfied in their participation in the development of
57
14. Participation in PA improvement
improvement
58
15. evaluated by a Performance Appraisal system designed and developed by other
employees
developed by employees
59
16. Job description to improved PA
56% (n=28) of respondent would feel satisfied if they provide a better understanding of Job
60
17. Enhancement of scales and decisions
46% of respondents think that they their participation in measurements scales and decisions.
61
18. Feedbackimproves PA and goals.
62% (n=31) of the respondents considered feedback as important factor I improving job
62
19. PA raters Accuracy
42% of the respondents (n=21) are dissatisfied with information given on performance
63
20. raters’ accuracy
30% (n=satisfied) of the respondents think that information provided by raters are accurate
64
21. Feeback session discussions
52% of the respondents said that they are given the chance to discuss work issues during
feedback sessions
65
22. Appraiser Evaluation
66
23. Appraiser need more training
50% (n=25) of the respondents think that Appraiser need more training
67
24. Ability as intended
62% of the respondents (n=31) said the appraiser do not have the ability to perform the PA
task
68
25. Appraiser performance
69
26. Appraiser ethics
70
27. Relation between Performance Appraisal and incentives
38% of the respondents (n=19) think are dissatisfied with the statement: “PA is directly
related to incentives”
71
28. Performance Appraisal and how is influenced by personal gifts
72
29. PA satisfaction
44% (n=22) said that they are dissatisfied by the method of PA system, and didn’t find an
73
30. Clear communication
Most of the respondents said that the task of performance are not well communicated
74
31. Performance appraisal follows up
82 % of the respondents (n=41) made sure that follow ups existed after performance
appraisal.
75
32. Commitment and PA
The results of this study showed that employees would be more committed to work when
appraised.
76
33. Effectiveness of performance appraisal
77
4.2- Cross-tabulations
The above table shows a full valid percentage of 100% in addition to a full sample of fifty
employees
The table above represents a cross-tab of employee position and job performance. This table
shows that Performance appraisals for agents are done by their supervisors. Whereas all
supervisors’ performance appraisal is done by direct managers, the same goes for assistant
managers.
78
Position and Performance Appraisal evaluation
Table 35 -Cross-tab 2
The cross-tabulation above shows that high-level managers have informal performance
appraisal showing that 66% of them are evaluated weekly, while 65% agents are appraised in
duration of 3 months.
According to the above cross-tab we can deduct that performance appraisal is performed
every 6 months.
79
Position and feedback
The above cross-tab shows that a manager feels more positive with the feedback they get.
Most of the supervisors and senior supervisors, according to the above cross-tabulations felt
that the Performance Appraisal form filling is not ethically reliable and felt dissatisfied in
this.
80
4.3- Binary Logistic Regression
0 for No
1 for Yes
According to above table the P-value is high enough to tell that the model is adjusted. As for
the adjustment test, which is above than 0.001, meaning that the relationship between
81
Table 39- Significance
The table above confirms the research hypothesis, which shows a significance less <0.05
which confirms the hypothesis, indicating that the variables are negatively correlated with the
independent variable.
82
PART III: GRADUATE PROJECT CONCLUSIONS AND
RECOMMENDATIONS
83
CHAPTER 5: CONCLUSIONS & RECOMMENDATION
5.1- CONCLUSIONS
In this research paper 2 sources of information were used, primary data relying on
internet articles. The results of the SPSS demonstrated a large dissatisfaction in the
appraisal conducted in Quality-inn hotel. One of the reasons for this dissatisfaction is
the contribution of only managers in the performance appraisal system, whereas self-
This study found a significant lack in the adoption of performance appraisal done
Performance Appraisal system. Career planning and development were very little,
offering limited internal and external planning. Many gaps are found in the
84
Figure 39- Gaps of performance appraisal
It’s very clear according to the results, that managers and other executive are not
matching with the HRM department efforts to meet needed performance appraisal
85
5.2-RECOMMENDATIONS
It’s obvious now-a-days that in the modern world of management a focus is given
managers and executives take a role in the examination process. Thereafter the
making sure that workers are well knowledgeable of the supervisor’s duties
and responsibilities
86
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APPENDIX A
QUESTIONNAIRE
1. Age: ___________________
2. Gender:
Female Male
3. Educational level:
4. Department:
92
Performance Appraisal
Yes No
For the following statements, rate your point of view according to your level of
93
Employee participation
employees
16. You give a better understanding of your job description for the PA 1 2 3 4 5
system
Feedback on Performance
in accomplishing my goals.
21. I’m giving the chance to discuss work issues throughout the feedback 1 2 3 4 5
session
22. The appraiser have the needed skills to conduct the appraisal 1 2 3 4 5
94
Performance Appraisal Results
improve my work
31. Are performance appraisal purposes, schedule, and dimensions clearly communicated
Yes No
32. Was any follow-up conducted after performance appraisal to confirm improvement?
Yes No
Yes No
34. As a final point from the point, I perceive the effectiveness of the performance appraisal
as following:
95