Case 1 - Group SDM 2
Case 1 - Group SDM 2
David Kimball
Case
Abstract
Jennee LeBeau was very excited to be hired as the Director of Human Resources at Sunshine Hotels. While
working in her office she noticed Sunshine Hotels did not conduct performance appraisals. The case then
revolves around Jennee developing a reliable performance management system that could be used at all of the
Sunshine Hotels.
Case
Jennee LeBeau was very excited to be hired as the Director of Human Resources at Sunshine Hotels. Her office
was located at the Main Island Hotel. Jennee spent her first year at Sunshine Hotels getting used to the
processes used by human resources (HR). She spent most of her time in her office at Main Island Hotels. She
didn’t get to visit the other two Sunshine Hotels very often. Jennee’s employees in HR like her hands-off
supervisory style. However, they also feel she would be an even better supervisor if she left her office and
interacted with the employees more often.
Jennee had spent the last seven years as the assistant director of HR for a chain of 10 fast-food restaurants. She
figured being in charge of HR for a growing chain of three hotels would be similar to her experiences working
in the fast-food industry.
While working in her office, she noticed Sunshine Hotels didn’t conduct performance appraisals. Jennee
thought performance appraisals (PA) were a common process in all companies. She was quite shocked at
finding such a review process was not in place at Sunshine Hotels since they have nearly 30 employees. She
decided the hotel chain was not overly concerned with evaluating employees in their first two hotels since the
employees were mostly family and friends. But the addition of a third hotel has forced the Sunshine Hotel
owners to create more HR policies, rules, and forms to make sure they are following all the laws of HR.
Jennee did some research and found that a performance appraisal is an ongoing process of evaluating employee
performance. However, it is also a tool of the large process of having a performance management system
(PMS), which is the process of identifying, measuring, managing, and developing the performance of the HR in
an organization. Thus, a PA is really a mechanism to help evaluate employees so they can develop into larger
roles and to ensure the success of the company going into the future.
The good news is that Jennee figured out she could start from scratch and develop her own PMS. She figured
she could set up an entirely new PMS. PAs of individuals could be part of an ongoing process of evaluating
employees.
Jennee has to decide what will be included in her new PMS. She wants the PA to collect valid information. That
means what she measures must be true and correct. She wants to be sure to measure the performance process.
Although Jennee wants to collect valid information, she also has to be concerned that the process isn’t overly
long or costly. She figures she can keep costs lower by emailing the PA to each employee to reduce mailing
costs. She also wants to use a multiple choice style PA so she can easily quantify the results.
The PA also has to be reliable. She has to trust that the performance data collected are consistent and that the
PA works the same each time she uses it.
Jennee wants the employees to accept the process as important to their own career development. Acceptability
means that the use of a PA is satisfactory or appropriate to the employees that will use the PA to improve their
work performance.
Jennee also wants to develop a process that would not be overly expensive or time consuming to implement. If
the PA is overly long to complete, then the manager and employee will not use the PA as a tool to improve
performance.
The PA has to be specific about an employee’s job performance so that it is a useful instrument for improving
areas that need development for that specific employee.
Another important goal is the PA has to help achieve the mission and goals of Sunshine Hotels. Completing the
PA process should help employees better understand what Sunshine expects from them and how they can
complete their own job to help the company fulfill its mission.
Jennee is starting to realize that she has walked into a very large project in designing a PMS from scratch. She is
starting to realize she will need to organize a committee to help develop the process, especially the PA form. In
answering her own questions, she realizes she will be putting together a PA that Sunshine employees will be
using for the first time. Employees currently receive a straight raise across the board. If the owners of Sunshine
Hotels determine everyone deserves a three percent raise, then all employees get the raise irrespective of their
own work performance. A new PMS and performance appraisal process will most likely make it easier to
administer raises based on the rating each employee receives as part of the process. However, the employees
might prefer the across-the-board raises rather than having to personally earn their raises.
Jennee decides to create a first draft of her performance appraisal form. She can show this draft to her
committee. The following is Jennee’s performance appraisal:
1.
2.
How can Jennee be sure to collect valid and reliable data with her new performance system?
3.
How can Jennee get the employees to accept the process as important to their own career development?
4.
Can Jennee develop a process that is not overly expensive to conduct with employees?
5.
Complete the performance appraisal form in the case using Jennee LeBeau as the employee you are
rating. Assume you are Patrick Staal, who is the chief financial officer (CFO), who is rating Jennee’s
first year of performance.
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or
self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall
be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within
your university, and cannot be forwarded outside the university or used for other commercial purposes.