Grantham University Employee Engagement and Performance Appraisal Paper Employee engagement, sometimes referred to also as stakeholder engagement, is a relatively new term to organizations. It was first used in a 1990 Academy of Management article (Ergle, 2015). Even today there may not be a clear definition of stakeholder engagement, but there are many various ones. “Former General Electric CEO Jack Welch has stated that employee engagement should come first, with customer satisfaction and free cash flow coming in second and third, respectively” (Mello 2015).
Review the Article: Case study on employee engagement and performance appraisal (Anand, 2011).
Anand, P. (2011). Case study on employee engagement and performance appraisal: ITC Maurya. Review of Management, 1(2), (83-88).
Through research from sources provided in the course and from academic and scholarly resources outside of the course, evaluate and discuss the following elements:
Analyze the three levels of employee engagement (pg. 84-85) discussed in the article
Create an optimal motivational approach by combining two motivational theories that you as a leader of the organization would use to build a positive and productive culture from these three levels of employee engagement.
Apply the five performance perspectives (pg. 87) to an evaluation of employee performance within your organization (or a former one).
The paper should contain the following APA formatted elements:
Body of the essay (Your researched response).
The requirements below must be met for your paper to be accepted and graded:
Write a response between 750 – 1000 words for the body of the essay (The title page, abstract, conclusion and References section are not counted toward the word requirement.) (approximately 4-6¬ pages) using Microsoft Word in APA style.
Address all three elements fully.
Use font size 12 and 1” margins.
Use at least three references from outside the course material (You may use the academic resources included in the Week 8 Bibliography.) one reference must be from EBSCOhost. The course textbook and lectures can be used, but are not counted toward the five reference requirement.
References must come from sources such as, academic and scholarly journals and essays found in EBSCOhost, CNN, online newspapers such as, The Wall Street Journal, government websites, etc. Sources such as, Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing.
Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style. Provide citations everywhere information from the sources is used for foundational support and for validation of opinions.
Use the third person narrative and avoid the use of the first and second person narrative and terms such as; I, me, myself, you, your, yourself, we or us (or related form such as let’s (let us) or we’ll, we’ve (we will / we have) among others). This will prevent the author or other parties from becoming the subject matter and will maintain the focus of the paper on the central theme and subject matter found in the elements.
Be informational and avoid being conversational.
A detailed explanation of how to cite a source using APA can be found here (https://owl.english.purdue.edu/owl/resource/560/01/).
Grading Criteria Assignments Maximum Points
Meets or exceeds established assignment criteria 40
Demonstrates an understanding of lesson concepts 20
Clearly presents well-reasoned ideas and concepts 30
Uses proper mechanics, punctuation, sentence structure, and spelling 10
Total 100 Review of Management, Vol. 1, No. 2, April-June 2011
Case Study on Employee Engagement and Performance
Appraisal: ITC Maurya
The hotel industry in India has experienced considerable and consistent growth over the
last decade. The influx of tourists for the common wealth games has caused a further rise
in the five star and deluxe hotels. In sync with the emerging trend, the study focuses on the
two important HR practices of performance appraisal and employee engagement in the
hotel industry. The research was conducted in ITC Maurya evaluates their practices
relating to HR processes. The basic methods and systems are described keeping in mind
the general trend in the Industry. ITC Maurya conducts the Q12 Gallup survey on its
employees, this method is used to access the existing levels of satisfaction amongst
employees. The employees were involved and highly satisfied with the work environment.
The performance appraisal standards are updated and different methods of appraisal are
used across the organization. The employees were aware of the criteria for appraisals and
also related a sense of importance to them. The incentives and initiatives taken by the
Hotel for various levels in the organization were communicated to all the employees.
Keywords: Employee Engagement, Performance Appraisal, Hospitality Sector
The growing trends and rising competition in each category of hotels from five star deluxe
to five star and even the new age budget hotels has caused the best in the business to
evaluate their practices and check for areas of improvement. As the economy is
developing and becoming more fluid the sustenance and growth of all organizations have
assumed new dimensions all together.
ITC is one of India’s best private sector companies with a market capitalization of nearly
US $ 18 billion and a turnover of over US $ 4.75 billion. ITC is rated among the World’s
Best Big Companies, Asia’s ‘Fob 50′ and the World’s Most Reputable Companies by
Forbes magazine, among India’s Most Respected Companies by Business World and
among India’s Most Valuable Companies by Business Today. ITC also ranks among
India’s top 10 `Most Valuable (Company) Brands’, in a study conducted by Brand Finance
and published by the Economic Times. ITC has a diversified presence in Cigarettes,
Hotels, Paperboards & Specialty Papers, Packaging, Agricultural-Business, Packaged
Foods & Confectionery, Information Technology, Branded Apparel, Personal Care,
Stationery, Safety Matches and other FMCG products. ITC is an outstanding market
leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and AgriExports. Over the last decade and half the mad rush to India for business opportunities has
Lecturer, IILM College, Gurgaon (India) E-mail: firstname.lastname@example.org
Review of Management, Vol. 1, No. 2, April-June 2011
intensified and elevated room rates and occupancy levels in India. Gaining market share
even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel,
Personal Care and Stationery. ITC’s Agricultural-Business is India’s second largest
exporter of agricultural products. ITC is one of the India’s biggest foreign exchange
earners (US $ 2 billion in the last decade). The Company’s ‘e-Chou pal’ initiative is
enabling Indian agriculture significantly enhance its competitiveness by empowering
Indian farmers through the power of the Internet. As one of India’s most valuable and
respected corporations, ITC is widely perceived to be dedicatedly nation-oriented.
Chairman Y C Deshwar calls this source of inspiration “a commitment beyond the
market”. In his own words: “ITC believes that its aspiration to create enduring value for
the nation provides the motive force to sustain growing shareholder value‖. It was the first
to launch the powerful idea of a ‘Hotel within a Hotel’ by segmenting and branding the
hotel services. It created the exclusive ‘ITC One’, ‘The Towers’ and the ‘Executive Club’
each catering to the needs of the global business traveler with unmatched quality and a
range of services.
Employee Engagement at ITC Maurya
Employee engagement is the measure of how involved and committed the workers are
towards their organisation and values. A well engaged employee is well aware of the day
to day happenings of the organisation and work with his or her fellow colleagues to
improve the performance of the individual and work s towards the betterment of the
organisation. It is an optimistic attitude that the employees hold towards their organisation.
Employee engagement is how the employee feels about his workplace employee feels
about his workplace and whether he or she is satisfied with the work or not. It is also
concerned with the emotions of an individual employee. The unique emotional balance of
employees and their experience. The employers and their talent of creating conditions that
give rise to employee engagement. Communication among employees at all levels in the
Levels of engagement: Gallup defines the various types of levels of engagement
engaged-these employees are also known as builders. They are impatient and willing to do
the best of their ability. They are ready to know the expectations of their role so that they
are able to face and exceed them. They are curious to know about their work place. They
are highly talented and hardworking and like to give their 100 % at all times. They are
passionate about their work and never take their work as a burden.
Not engaged- this category of employees are more concerned about the short-term task,
they are quite away from the goal of the organisations. They work for the sake of doing it
and want to get over with every task they perform as soon as possible. They never perform
their work whole heartedly. Such people often feel that their work is not given enough
importance or appreciation; they feel this way because they do not have healthy
relationships with their fellow worker or managers.
Actively disengaged- this category of workers is also known as cave dwellers. They are
highly negative regarding their work. They are highly unsatisfied with their work and they
often show their unhappiness. They are pessimist and often create tensed atmosphere in
the workplace. They transfer their negativity all around. Engagement is an important
aspect of any organisation. It cultivates the feeling of commitment and satisfaction within
the employees. When employee is engaged in their work, they give their 100% and work
Review of Management, Vol. 1, No. 2, April-June 2011
for the benefit of the organisation. Engaged employees have a sense of responsibility and
they work towards the required goals. Engaged employees provide the organisation with
best results and high performance. An engaged employee will always deliver beyond
expectations. ―The Watson Wyatt‖ consulting companies have proved that there is an
intrinsic link between employee engagement, customer loyalty, and profitability. As
organizations are become more dependent on technology in a virtual working
environment, there is a greater need to connect and engage with employees to provide
them with an organizational identity.
Engagement assessment: This HR practice plays a crucial role in every organization.
Employees who are engaged perform to their full potential, they are motivated and can
also improve their skills as they progress. Employee engagement plays a vital role in the
hotel because it effects everything from retention and productivity to profitability and
safety. In today‘s world organizations have found out various methods of creating
competitive advantage. They have created competitive advantage through innovation,
quality products, technology and pricing technology. Organizations view ―customer
service that exceeds expectations‖ as their key to success. Engaged employees provide
quality service. Now there are a numbers of jobs in every industry but organizations need
to focus on the right people for the right job. They should also make sure that these right
people are satisfied with their work.
In the hospitality industry many employees see their jobs as stepping-stones to more
permanent positions, and employee turnover rate ranges between 78.3 percent to 95.4
percent. These numbers are staggering; more staggering is the cost of this employee churn.
The Incentive Research Foundation estimates roughly 100 to 200 percent of an
employee‘s base salary is spent to recruit and train a replacement. In an arena where
customer service is paramount and the labor pool is shrinking, keeping employees satisfied
and engaged is critical. ITC MAURYA measures the level of employee engagement in the
hotel. It conducts the GALLUP Q12 survey on a yearly basis. An exhaustive study is
conducted in different departments of the hotel on the basis of 12 questions. The Gallup
conducts a survey and they give a small presentation in the hotel and they tell about the
strongest and weakest departments in the hotel.
Initiatives: The management comes to know about the loop holes in various departments
and they try to overcome them in order to increase employee engagement. Maurya
undertakes various activities through employees can feel engaged in the work place. They
have Maurya gazette, this is an internal newsletter which is made on monthly basis…This
newsletter entails about the day to day happenings of the hotel. It also showcases
department of the month. The employees those who are awarded as the employees of the
month also narrate their experience that is also shown in this gazette.
They also have Good Morning Maurya which is a daily bulletin and it high lights the
birthdays and lunch menu of the day. Some of the other activities are:Instant recognition,
GM‘s tea, Retirement ceremony, Yoga and meditation camps, Health camps , Diwali
tambola, Annual day, New year celebration, Open forums and Long service awards.
Gallup‘s plays a vital role in the hotel. Employee engagement is of great importance in the
hotel. The hotel has more than 100 employees in each department which is a huge number.
The duty of the HR department is to take care of all the employees and the department
ensures that the employees are well engaged in their job because only when the employees
Review of Management, Vol. 1, No. 2, April-June 2011
are satisfied can they perform their 100%. The issue of a shortage of skills throughout the
workforce is very important to the hospitality industry and the need to create a talent mix
is recognized. Planning for future recruitment helps to accommodate the lack of essential
skills in the modern HR environment. People are multi-talented and they expect a lot out
of their job owing to this the employee engagement techniques are contemporary.
The Employee Side of the Human Sigma Equation: Human Sigma combines the power of
two Gallup Consulting concepts: employee and customer engagement. The Human Sigma
approach provides leaders with the means to reduce the variance in performance across
organizational units. Research published by Gallup and others has shown that engaged
employees are more productive employees. The research also proves that engaged
employees are more profitable, more customer-focused, safer, and more likely to
withstand temptations to leave. Many have long suspected the connection between an
employee’s level of engagement and the level and quality of his or her performance.
Performance appraisal is a very important tool in any workplace. It helps in evaluating the
behaviour of the employees in the workplace. It includes both the qualitative aspects of the
job performance. It evaluates a person systematically including his on the job performance
and his potential for development. It is a continuous process and its responsibility is totally
on the supervisor. The supervisor makes sure that the work is in its place, he or she keeps
a check on employees as to how the task assigned to them is performed. The supervisor
tries to find out the weak points and try to cope up with the challenging situations. This
process in an organization faces certain limitations like Halo effect, Error of comparison,
Personal Bias, Leniency and incompetence of Appraiser. To make the process most
effective the organizations should set clear defined standards, mutual understanding,
selection of the right appraisal tool and constant review and feedback.
Process of Appraisal: The performance appraisal systems were formally communicated to
the employees. Employees were well aware of the parameters of performance and also
were satisfied with the systems. The performance appraisal system is based on the
assessment sheet. The parameters of the sheet include: knowledge of work, planning
organizations, delegating work, initiative & drive, personal efficiency, dependability,
leadership, co-operation, honesty integrity, quality of work, punctuality, six sigma
contribution. The parameters were assessed on a scale of outstanding, above average,
average, below average. The performance is appraised by both appraiser and appraisees,
Head of department, personnel manager and general manager. The sheet would contain
information from all of the above. Appraisals are conducted yearly, in the month of
February and March.
The process takes two weeks to complete. The appraisal depends on mainly the strength
and weakness of employee and means to enhance quality of work of employee. The award
system for appraisal is also in place. The head of department will decide the most
deserving candidate for award. Performance Appraisal was found to be a two way process
in the hotel, with the employer and the employee being equally involved in assessment.
The process was designed to facilitate discussion and mapping of future goals and growth
plans. The implementation of the performance appraisal process determined promotions,
increments, training and development needs and best employee awards. The process
differed across different levels; a combination of methods was used. It was clearly an
Review of Management, Vol. 1, No. 2, April-June 2011
annual process. In case of severe deviations from the expected standard, the employee was
given a warning letter, terminated, increments were withheld, promotion withheld and in
some situations employee is referred for further training and development.
Balanced Score Card: ITC Maurya successfully uses Balanced score card method for its
appraisal. Balanced scorecard was prepared on FIVE parameters, which are as follows:
1. Customer perspective
2. Financial perspective
3. Internal perspective
4. Employees perspective
5. Social perspective.
The innovative aspect was the fifth parameter of the social perspective, which was added
to the Scorecard at ITC Maurya. The Balanced Scorecard was strategically oriented, and
all the functional heads had a series of meetings with the HR department and the top
management team. The BSC is supported by the career review form to further assess the
Career Review Form: This form assesses the subjective aspect of measuring a person’s
performance which is fixed at 30%. The objective of the career review form is to
encapsulate the Big Five (The five Perspectives). The key competencies and the feedback
which needs to be given to the senior managers. secondly, to allow inputs taken on key
parameters and assessing the potential for future growth. It is done in cohesion with the
Balanced Scorecard. It comprises of five sections.
Section A-The big Five/Self-Assessment
* Revisiting the Big Five
* Providing background against which the employee performed
* Providing a framework to prepare for appraisal discussions
Filled by: Assessee
A1: Specify Departmental Objectives
A2: State Big five at the beginning of the year and achievements: Example: ?
A3: Factors which aided/hindered performance
Future Outlook: The Company has adopted various positive engagement and performance
oriented objectives, however the future growth of the company will be determined by the
enhancement of additional strategies. The drivers of engagement are the key focus of the
company, the workforce has to reflect uniform positive levels of engagement. The focus
on the drivers of engagement namely Career, Community, Congruence, Compensation,
Content, Coping will further involve each employee. The process of appraisal will be
blended with the requirement of the work. The appraisal process may align with the
following aspects: process being Trait based, Behavior based, Knowledge or skill based,
Result based. The Hotel aims at ideally using a combination of all these aspects for
Focus of the organization is on increasing job understanding, remedial performance
improvement, career development, employees efforts focused on specific tasks, increasing
output, HRP, linking pay and performance, improving team work. Peer rating being an
important part of the process, building a system of peer assessment to add value to the
feedback collected by reviewers. Rating by customers, suppliers, outside experts and
Review of Management, Vol. 1, No. 2, April-June 2011
clients provides an important insight into the study of appraisals. The measurement of the
results to strengthen the existing processes and further additional three elements:
dimension, measures and standards to the appraisal. Usage of forms which are more
qualitative than quantitative, as using qualitative forms can cloud judgment and impact
The focus is on taking care of its people and developing them at every stage. Maurya is a
27 year old hotel and majority of the employees are working here since many years.
Moreover, the trade union of this hotel is very strong and thus the employees have an
emphatic backing from the union. The top management at times faces problems with the
union and has to ensure that all its policies are people centric. It organizes various
activities for its staff and provides welfare amenities. Daily meetings take place for every
department and Saturday training sessions for all the head of departments. Various
informal activities are organized to facilitate an open and friendly environment in terms of
organizational work arrangements.
Every department designs its own feedback forms, which the employee has to fill from
time to time. Despite these efforts at times the people working in the organization since
many years tend to command most of the decisions. Except for one respondent, every
employee interviewed supported the open culture facilitated at Maurya Sheraton.
Authenticity is close to openness, the employees don’t feel hesitant to come out with their
views and own up their mistakes, as Maurya’s culture doesn’t believe in firing people for
every small mistake unless and until it is really drastic. Various cross-functional training
sessions and other informal sessions are organized to facilitate better employee relations.
Running the gauntlet to more effective, purpose based performance management is a high
risk, high reward endeavour. Many myths may be dispelled and may traps avoided. A
successful run requires significant investment, sustained commitment and the underlying
belief that performance management is a core business process that can create competitive
advantage when done well.
Berger & Berger. (2004). Talent management handbook. New Delhi: Tata McGrawhill.
Bhatnagar, Jyotika, Puri Radhika, Jha, H.M. (2004). Managing innovation strategic HRM:
The balanced scorecard performance management system at ITC Hotels. South Asian
Journal of Management, Oct-Dec. 2004.
Cheese, Thomas & Craig. (2008). Engagement: The talent powered organization. London:
Murphy, Emmet. (2009). Coach for achievement: Talent IQ. Platinum Press U. S. A.
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