Question
What is Performance Appraisal? Discuss the methods of Appraisal with their shortcomings.
Answer :
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Performance appraisal is a systematic and periodic evaluation of an employee’s job performance in relation to predetermined standards and organizational objectives. In tourism organizations such as hotels, travel agencies, airlines, tour operations and event management companies, performance appraisal plays a crucial role in managing personnel because service quality largely depends on employee efficiency, behavior, communication skills and customer handling abilities. It helps management assess individual contributions, identify strengths and weaknesses, determine training needs, provide feedback, and make decisions regarding promotions, incentives, transfers and terminations. In the tourism sector, where customer satisfaction and service excellence are vital, performance appraisal ensures that employees align their performance with organizational goals and service standards. One common method of appraisal is the Traditional Ranking Method. Under this method, employees are ranked from best to worst based on overall performance. It is simple and easy to administer, especially in small tourism enterprises. However, it has several shortcomings. It does not specify the degree of difference between employees, may create unhealthy competition, and can lead to bias if the evaluator favors certain individuals. It also ignores specific performance criteria and focuses only on overall comparison. Another widely used method is the Graphic Rating Scale. In this method,
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