Performance appraisal for receptionists in rising dragon hotel system

NATIONAL ECONOMICS UNIVERSITY NEU BUSINESS SCHOOL NGUYEN THI QUYNH NGA PERFORMANCE APPRAISAL FOR RECEPTIONISTS IN RISING DRAGON HOTEL SYSTEM ên uy Ch MASTER OF BUSINESS ADMINISTRATION THESIS đề c ự th p tậ Tố p iệ gh tn HANOI –2015 NATIONAL ECONOMICS UNIVERSITY NEU BUSINESS SCHOOL NGUYEN THI QUYNH NGA PERFORMANCE APPRAISAL FOR RECEPTIONISTS IN RISING DRAGON HOTEL SYSTEM MASTER OF BUSINESS ADMINISTRATION THESIS ên uy Ch đề SUPERVISOR: Assoc Prof, Dr NGUYEN THANH HA c ự th p tậ Tố HANOI –2015 p iệ gh tn ACKNOWLEDGEMENT In order to complete thesis “Performance Appraisal for Receptionists in Rising Dragon Hotel System”, I would like to express my deep and sincere gratitude to my supervisor, Assoc Prof, Dr Nguyen Thanh Ha, National Economics University for his wide knowledge guidance, understanding, encouragement and personal instructions which facilitated me to complete my thesis I would like to thank the Board of Management, all the lectures and officers in NEU, Business School for supporting and assisting me during my course as well as the completion of this thesis I also would like to say thank to my family for encouraging me during the whole course, from the beginning to the end, especially my husband and my son I also would like to send the most special thanks to my college at Rising Dragon Hotel System for their support and necessary information, for their participation in the surveys, interviews and other precious information to complete my thesis Last but not least, I would like to thank all my friends and classmates EMBA 12C who have accompanied with me, motivated me in the whole course and helped me a lot in encouraging me for continuously conducting the thesis Ch Hanoi, July 2015 ên uy Nguyen Thi Quynh Nga đề c ự th p tậ p iệ gh tn Tố TABLE OF CONTENTS ACKNOWLEDGEMENT .1 ABBREVIATION LIST OF TABLES LIST OF FIGURES EXECUTIVE SUMMARY .7 CHAPTER1 - INTRODUCTION 1.1 Rationale 1.2 Research objectives 1.3 Research questions 10 1.4 Research methodology 10 1.4.1 Research Process 10 1.4.2 Data collection 10 1.4.3 Data analysis 11 1.5 Research scope 11 1.5.1 Research objects: 11 1.5.2 Geographical scope of the research 11 1.5.3 Time of the research 11 1.6 Research Structure 11 CHAPTER - THEORETICAL BACKGROUND ON PERFORMANCE APPRAISAL IN ORGANIZATION 12 2.1 Natures of Performance Appraisal 12 Ch 2.1.1 Definition of Performance Appraisal .12 ên uy 2.1.2 Importance of Performance Appraisal 13 2.2 Objectives of Performance Appraisal 14 2.3 Goals of Performance Appraisal 16 đề 2.4 Process and components of Performance Appraisal .17 2.4.1 Identification 17 ự th 2.4.2 Measurement 18 2.4.3 Management 20 c tậ 2.5 Approaches to Performance Appraisal 20 p 2.6 Methods of Performance Appraisal .22 Tố 2.6.1 Past oriented methods 23 2.6.2 Future oriented approach 31 tn 2.7 Factors affecting Performance Appraisal 37 p iệ gh 2.7.1 Future orientation 37 2.7.2 Relationship between appraiser and receptionists 38 2.7.3 Inconsistent link between performance and rewards 38 CHAPTER - CURRENT TECHNICAL COMPONENTS OF RECEPTIONIST PERFORMANCE APPRAISAL IN RISING DRAGON HOTEL SYSTEM 39 3.1 Background information of Rising Dragon Hotel 39 3.1.1 Overview of Rising Dragon Hotel system .39 3.1.2 Receptionist labor force in Rising Dragon Hotel .39 3.1.3 Current methods of RDH’s performance appraisal 40 3.2 Current components of receptionist performance appraisal system in Rising Dragon Hotel 41 3.2.1 Identification 41 3.2.2 Measurement 41 3.2.3 Management 42 3.3 Current situation of receptionist performance appraisal in Rising Dragon Hotel 42 3.3.1 Strengths of receptionist performance appraisal in Rising Dragon Hotel 42 3.3.2 Weaknesses of receptionist performance appraisal in Rising Dragon Hotel 43 CHAPTER – RECOMMENDATIONS TO IMPROVE RECEPTIONIST PERFORMANCE APPRAISAL IN RISING DRAGON HOTEL 54 4.1 Recommendations for the Board of Management 54 4.2 Recommendations for the RDH Receptionists 55 Ch CONCLUSION .57 ên uy REFERENCES 59 đề c ự th p tậ p iệ gh tn Tố ABBREVIATION PAS Performance Appraisal System PA Performance Appraisal RDH Rising Dragon Hotel RDHS Rising Dragon Hotel System HRM Human Resources Management HR Human Resources FDO Front Desk Office BOM Board of Management ên uy Ch đề c ự th p tậ p iệ gh tn Tố LIST OF TABLES No Hotels No of staffs No of current receptionists No of receptionists that quit Rising Dragon Palace 60 10 Rising Dragon Paradise 35 5 Rising Dragon Villa 45 Rising Dragon Estate 25 5 Rising Dragon Legend 30 6 Rising Dragon Grand 28 6 Rising Dragon Cathedral 15 Rising Dragon Haven 36 Total 274 46 49 Table 1: Number of receptionists working for RDH ên uy Ch đề c ự th p tậ p iệ gh tn Tố LIST OF FIGURES Figure 1: RDH’s receptionist working experience years Figure 2: Working field of the receptionists leaving RDH Figure 3: RDH’s policy for annual performance appraisal Figure 4: Receptionists’ expectation from RDH’s PA system Figure 5: Receptionists’ performance report Figure 6: Necessity of the report Figure 7: Content that receptionists want to have on performance report Figure 8: Performance target approved by managers Figure 9: Receptionists know how to set objectives themselves Figure 10: Possible purposes on performance appraisal purposes Figure 11: People conducts performance appraisal in Rising Dragon Hotel system Ch Figure 12: How receptionists evaluate current PA system ên uy Figure 13: How receptionists evaluate appraisers đề c ự th p tậ p iệ gh tn Tố EXECUTIVE SUMMARY Now Vietnamese companies are facing with a lot of problems in management and one of the most essential reasons is inefficient human resources management Rising Dragon Hotel System is a twelve – year experienced company which is one of the biggest hotels system in the Old Quarter Being aware of human resources problem, RDH has recently paid attention to Human Resources Management in general and to Performance Appraisal in particular to enhance the quality of Human Resources However, there have not been many things to be done to improve the performance appraisal so it remains very weak As one of the Receptionists working in Front Desk Office of Rising Dragon Hotel, I have realized this problem for quite a long time and have noticed that unless the performance appraisal is improved immediately, receptionists in RDH still lacks motivation for the work Besides, the company cannot perform well its role in the tourism market In order to improve the performance appraisal, a survey is necessary to identify the strengths and weaknesses of the current performance appraisal so that we can work out how to improve it With the above reason, this thesis focuses on three main objectives The first one is to summarize relevant theories on the performance appraisal in order to figure out Ch the dimensions for RDH’s receptionist performance appraisal The second one is to ên uy analyze current technical components of performance appraisal in Rising Dragon Hotel system and the last one is to propose recommendations for improving the performance appraisal of the company đề In order to achieve goals, an in-depth interview with one key managers in RDH was ự th conducted with a survey This survey was distributed to 30 staffs who are working c and used to work in RDH The interview focused on identifying the elements of tậ while the survey concentrated on evaluating quality of current PA The survey result p did show some weaknesses in performance appraisal in RDH The first to be Tố mentioned here is about the objectives of staff performance appraisal The second tn weakness belongs to appraisal process which did not follow all the standards steps p iệ gh Third weakness belongs to the appraiser-the managers who conducts the appraisal Another weakness in NPC performance appraisal is poor feedback after appraisal After finding the main problems in EDH performance appraisal, author made some recommendations to remedy the problem, improve the performance appraisal in RDH and partly help RDH to reach the goals that were set by the Board of Management for long run The recommendations involved (1) Building an appropriate and strong appraisal system by applying effective and suitable appraisal method, organizing a formal and effective appraisal interview; (2) Strengthen Human resources policy on performance appraisal by organizing training course about conducting performance appraisal for all appraisers/ managers and rescheduling the appraisal period The writer hoped that with all the findings after the survey and the recommendations made, performance appraisal in RDH will be enhanced and RDH will become more and more powerful, contributing more to the nation energy industry Because of limitation of time and capacity, author would like to welcome all comments and contribution to make the thesis more complete and comprehensive ên uy Ch đề c ự th p tậ p iệ gh tn Tố CHAPTER – RECOMMENDATIONS TO IMPROVE RECEPTIONIST PERFORMANCE APPRAISAL IN RISING DRAGON HOTEL 4.1 Recommendations for the Board of Management Establish a tight policy on performance appraisal: As the Board of Management of a big hotel system, the appraiser should figure out which items are the key evaluation value, therefore they can set a practical goals and benefits for the receptionists In order to ensure the performance appraisal is conducted seriously and effectively, the Board of Management should design a tight policy on performance appraisal which regulate the method used, the steps, the requirements and desired result as well as an appropriate mechanism of awarding for good results earners to motivate individuals Board of management should make it clear that performance appraisal is compulsory to each individual in RDH, that is every one’s responsibility and rights to conduct appraisal precisely, bias free and transparently In order to get every one’s consensus, Board of management must show their determination in conducting performance appraisal, and must show that, the result of PA is the criteria for further steps supporting employee’s career development and promotion Ch with RDH ên uy Assign one team responsible to supervise and monitor the implementation: It would be the best if for each PA method, one team is assigned to supervise and đề monitor the PA implementation in RDH This team is responsible for ensuring that ự th all of the receptionists will conduct PA seriously and effectively, without bias and unfair evaluation, no violation of the policy and that, the result has been agreed c between both appraisers and appraise If there is any violation is recorded, this team tậ p will report to Board of Management timely and have appropriate action to remedy p iệ gh tn Tố the problem, ensuring the Pa is still conducted sufficiently 54 Improving the process of PAS: Not every manager has the opportunity to impact or improve the overall performance appraisal system within which they must work But, every manager has the opportunity to take the system they’ve been dealt and turn the performance appraisal process into a positive, rewarding, beneficial process for both themselves and the employees who report to them Managers can improve performance appraisals and make them into an effective communication, goal setting, and development tool for employees while operating within the requirements of their system of performance appraisals Managers can start by implementing the suggestions in these performance appraisal FAQs (frequently asked questions) They can end up with the required performance appraisal document but make the performance appraisal process useful by their approach Building performance criteria: as the results of questionnaires, most of receptionists find it necessary to have evaluation and task as one of the main criteria on PA report And the purpose that managers should carry on for Pas should be for punishment or reward, in order to bring fairness and justice to the Front Desk Office This also helps FDO to have a more competitive environment 4.2 Recommendations for the RDH Receptionists Be more actively participate on the PA implementation : its receptionist’s rights and responsibility to participate in PA, and it’s more about right than responsibility, Ch so they should take more initiate in PA they should remind their appraiser of PA of ên uy the appraiser seems want to ignore or forget the PA, and should supervise their appraiser in conducting the PA, if there is any violation, any bias or unfair practice, the employee can report to human resource or even Board of Management đề immediately so that there is timely action to be made to ensure the effectiveness and ự th sufficiency of PA c Be fully self-aware of their rights and responsibilities toward performance p tậ appraisal In order to have best results, each employee should be full self-aware of the importance of PA to themselves and then to the hotel, they should understand Tố the relation between PA and their career development, career promotion and then, tn they are more engaged in the PA Once understanding the benefit of Pa, they will p iệ gh 55 know exactly what they should and need with PA They can get all information about PA in the company policy, Pa guideline or approach human resource staff to ask about PA and what they are still unclear about ên uy Ch đề c ự th p tậ p iệ gh tn Tố 56 CONCLUSION This study focuses on evaluating the current performance appraisal in RDH One of the strategies to develop human capital is through the consists of several problems, in order to find out the problems in PA of RDH, a survey was conducted among RDH receptionists and another in depth interview was made with the human resource manager The result of survey was used to analyze the current appraisal system, find out its strength and weakness in order to work out some solutions to remedy these shortcomings The most successful of current performance appraisal in RDH is the PA helps to establish a basis for payment and reward for receptionists Along with the salary structure regulated by Government, receptionists in RDH are entitled to a corporate salary structure which bases on their performance, this helps to increase the income of receptionists and partly create motivation to encourage employees work harder The second success of Pa in RDH is it partly helps appraiser and employee to recognize employee’s strength and weakness, and thus, building development plan for the receptionists to make improvement Besides the achievements, current PA in EDH has a lot of shortcomings The first to be mentioned is the inflexibility and leak of criteria This is a drawback for receptionists is achieving targets set by the hotel as well as to be recognized as the outstanding receptionists The second shortcoming to be mentioned is the weakness of manager level or appraiser in Ch conducting appraisal while they are supposed to be crucial element involving the ên uy whole process and is the driving force for the success or failure of the PA system From the shortcomings and the causes that were found out there is some proposal to đề be made in order to improve the current performance appraisal in RDH These proposals focus on giving solution to all these causes with hope to make some ự th contributive change The first proposal is building an appropriate and strong c appraisal system which involves applying effective and suitable appraisal method tậ and organizing a formal and effective appraisal interview This part focus on how to p have an effective appraisal interview, author proposed an appraisal interview Tố guideline to ensure the interview bring best result on appraisal The second solution tn is to enhance human resource policy including human capital and the schedule of p iệ gh 57 appraisal The appraiser teams inclusive of managers and head of departments did not perform well in the key role of appraisal conducting, as a result, the result is not convincible and persuasive to employee To fix these shortcomings, an in-depth training course on performance appraisal is proposed to offer to these appraisers to ensure they fully understand the why and how to conduct appraisal, so that they can take initiate in getting best result in each appraisal period ên uy Ch đề c ự th p tậ p iệ gh tn Tố 58 REFERENCES Antariksa, Yodhia “Performance Appraisal Methods.” Exploring HR Management (explorehr.org/articles/Performance_Appraisal/Performance_Appraisa l_Methods.html) Do Xuan Hop (2013), The impact of the reward system on employee motivation and retention in Vietnamese Garment Industry, Brunel University, London Dao Thanh Huong (2010), The performance appraisal system for Hanoi Consultancy and Installation JSC (Hancin), NEU Business School, National Economics University Fletcher, C (2008) Appraisal, feedback and development: Managing performance review at work (4th edition.) Oxford: Routledge Hoang Thanh Binh (2013), Improving performance appraisal in Northern Power Corporation (NPC), NEU Business School, National Economics University Kluger, A N & DeNisi, A (1996) The effects of feedback Ch interventions on performance; A historical review, a meta-analysis, and a preliminary feedback intervention theory Psychological ên uy Bulletin, 119, 254-284 Luis R Gómez-Mejía, David B Balkim, Robert L Cardy (2007), đề Managing Human Resources, Pearson International, United States of ự th America c McNamara, Carter Basics of Conducting Employee Performance The Free Management Library p tậ Appraisals (managementhelp.org/emp_perf/perf_rvw/basics.htm) p iệ gh tn Tố 59 Nguyen Thi Hoa (2012), Improving the performance appraisal system in CTIC, NEU Business School, National Economics University 10 Nguyen Thi Mai (2014), Improving performance appraisal for staffs at MP Telecom Co., Ltd, NEU Business School, National Economics University 11 Nguyen Van Quyen (2009), Performance appraisal for administration staff in Vietcombank tower, NEU Business School, National Economics University 12 Roberta S Russell, Bernard W Taylor III (2011), Operations Management Creating Value Along the Supply Chain, John Wiley & Sons, Inc., United States of America 13 SITI AISYAH ABD HAMID, Factors affecting performance appraisal effectiveness, Faculty of cognitive Sciences and Human Development Universiti Malaysia Sarawak 2011 14 Vu Tu Quan (2011), Improving performance appraisal system at Vietnam productivity centre (VPC), NEU Business School, National Economics University 15 Zachary Dechev (2010), Effective Performance Appraisal – a study into the relation between employer satisfaction and optimizing business results, Faculty of Economics of Business, Erasmus Ch University Rotterdam ên uy 16 Zairi, M, (1994), “Measurement performance of business results”, Chapman and Hall, London đề 17 http://www.referenceforbusiness.com/management/Em-Exp/ Employee-Evaluation-and-Performance-Appraisals.html ự th 18 http://risingdragonhotel.com/about-us/# c p tậ p iệ gh tn Tố 60 APPENDIX Survey Questionnaires Dear colleges, Please take a few minutes to complete this survey Your specific answers will be completely anonymous, but your views, in combination with those of others, are extremely important for the author to conduct a research This research aims at improving the performance appraisal system in Rising Dragon Hotel system Should you have any questions/ comments or contribution to my survey, please kindly contact me via: Ms Nguyen Thi Quynh Nga – Front Desk Office – Rising Dragon Palace – Rising Dragon hotel system – 12 Nguyen Quang Bich Street, Hoan Kiem District, Hanoi Mobile: 0168.994.1309 Email: quynhnga.eec@gmail.com Thank you so much for your cooperation! ên uy Ch A Respondent Profile Full name (optional): Age: Job title: Sex: Male/ Female: Years in Front Desk Office in RDH: B Questionnaires Please tick (v) on the question that you mostly agree with đề The number of your working experience years? ự th a Less than year b From to years c tậ c More than years p iệ gh tn b No Tố a Yes p Are you current receptionists of RDH? 61 If no, are you still working in hotel and tourism field? a Yes b No Does RDH have any policy for the annual performance appraisal? a Yes b No c Not sure Have you ever trained about staff performance appraisal in RDH? a Yes b No What you expect from the performance appraisal in RDH? a To get commensurate payment and incentive with working result b Help me with identifying my strengths and weaknesses c Help me to evaluate the efficiency of work of the past and increase the efficiency at work in the future d Bring me more chance for improving my profession through training courses e To be precisely evaluated capacity and achievement for promotion or being transferred to more suitable position Do you think current PAS for receptionist s at RDH is necessary and Ch important? ên uy a Yes b No a Yes đề Do you have any performance report? p iệ gh tn c Not sure Tố b No p a Yes tậ Do you think it is needed? c c Not sure ự th b No 62 10 If yes, what following items should be included in your own performance report? a Task b Process c Quality(time, result) d Evaluation(achievement, failures, problem & solution) e Other comments (support needed, etc.) 11 Do you have the performance target for a period which is approved by your line manager? a Yes b No c Not sure 12 Do you set the objectives for you? a Yes b No 13 Do you know how to set objectives? a Yes b No c Not sure 14 In your opinion, for which following purposes should the PAS in RDH be Ch used? ên uy a Salary adjustment b Downsizing đề c Develop the receptionists and training needs d Promotion consideration ự th e Punishment or rewards c f To help the staff improve their underperformance p iệ gh tn Tố i I don’t know p h None of them tậ g Other purpose, please name………………… 63 15 Who conducts your performance appraisal? a Colleges b Myself c Front desk officer manager d Manager and I am acknowledged e Both front desk officer manager and manager 16 Who you think often get high evaluation result? a Receptionist who is at FOM level or have long time of service b Receptionist who is relatives with manager level of has good relationship with manager/ appraiser c Receptionist who is competent and hard working 17 What you think of the influence of PA to monthly salary? a Have much influence b No affect c Not much affect 18 Do you satisfy with that influence of PA to your monthly salary? a Yes b No 19 Do you satisfy with the fact that PA is conducted by team’s objectives or individual’s objectives? Ch a Team’s objectives ên uy b Individual’s objectives 20 Have you found any change / update in performance appraiser in RDH over a Yes c ự th b No đề years? p tậ p iệ gh tn Tố 64 21 What you think of current PA method? Strongly agree Agree Neither Disagree Strongly disagree Current method is fair and objective Current method is emotion oriented Current evaluation method takes a lot of time The current methods of PA is correct in evaluation 22 Are you satisfied with the monthly appraisal result? a Yes b No 23 In your opinion, what is the problem of appraisers? Ch Strongly agree Agree Neither Disagree Strongly disagree ên uy The appraisers are not competent of appraisal company of the đề process of p iệ gh tn Tố The appraisers are still p appraisal tậ importance c not to be aware of the ự th The appraisers seem 65 weak at communicating with employees when doing appraisal 24 In your opinion, how often should the Pa be conducted? a Monthly b Quarterly c Annually d Seasons (high season or low season) 25 What components that you think should be changed most to make appraisal better? a Objectives of PA b Method of PA c Process of PA d Appraiser e Time of appraisal 26 Have you ever received no bonus or salary adjustment? a Yes ên uy Ch b No đề c ự th p tậ p iệ gh tn Tố 66 ên uy Ch đề c ự th p tậ p iệ gh tn Tố 67 APPENDIX In-depth Interview questions What are the components of performance appraisal in Rising Dragon Hotel system? Yes The components What are the objectives of PA in RDH? What you think of the current appraisal process in RDH? How many steps does the current appraisal process in RDH have? What are the steps? Which step in the appraisal process is still poorly conducted? Do you think the results of appraisal is often discussed between appraisers and appraise? If not, why? How to have an objective and fair evaluation result? ên uy Ch đề c ự th p tậ p iệ gh tn Tố 68