1. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved CHAPTER 11 Training to Performance Standards

2. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved INTRODUCTION If you go to a good hotel and ask for something, you get it. If you go to a great hotel, you don’t even have to ask. - John Collins, Human Resources Director The Ritz-Carlton Boston Common - John Collins, Human Resources Director The Ritz-Carlton Boston Common

3. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved TALES FROM THE FIELD In the weeds…  If a business promotion attracts a large response that the business cannot handle, what is the outcome?  How effective is advertising and promotion compared to a hospitality operation’s ability to “execute”?  Is word-of-mouth advertising more effective than more traditional media outlets, or does there need to be a proper balance between the two?

4. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved CHAPTER OVERVIEW  Training and development  Benefits of training  Needs assessment  Performance standards  Performance management cycle  Performance standards  Five learning principles  Selecting a training method  On-the-job and off- the-job training  Evaluating training

5. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved TRAINING AND DEVELOPMENT TRAINING: helps employees do their current jobs more effectively TRAINING: helps employees do their current jobs more effectively DEVELOPMENT: helps employees gain knowledge and skills to help prepare them to handle future responsibilities DEVELOPMENT: helps employees gain knowledge and skills to help prepare them to handle future responsibilities

6. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved THE ULTIMATE GOAL… of training is to focus on an employee’s present job duties, while development focuses on the employee’s potential future advancement within the company of training is to focus on an employee’s present job duties, while development focuses on the employee’s potential future advancement within the company

7. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved TRAINING BENEFITS THE EMPLOYEE  Increased job satisfaction and recognition  Moves the employee closer to personal goals  Encourages self- development and self- confidence  Helps the employee become an effective problem solver  Allows employees to become productive more quickly  Sustains a positive attitude toward customer service

8. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved TRAINING BENEFITS MANAGEMENT  Improves communication between managers and employees  Improves morale and builds cohesiveness  Aids in evaluating employee performance  Makes policies and procedures viable  Aids in sustaining systems and standards  Helps identify employees for promotion or transfer

9. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved TRAINING BENEFITS THE HOSPITALITY ORGANIZATION  Leads to improved profitability  Reduces accidents and safety violations  Helps create a positive corporate image  Aids in organizational development  Helps employees adjust to change  Reduces costly employee turnover

10. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved PERFORMANCE MANAGEMENT CYCLE An ongoing, continuous process of communicating and clarifying job responsibilities, priorities, and performance expectations… An ongoing, continuous process of communicating and clarifying job responsibilities, priorities, and performance expectations…

11. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved PERFORMANCE STANDARDS Effective job performance standards serve two important functions: Effective job performance standards serve two important functions: 1) they become targets for employee efforts, and 1) they become targets for employee efforts, and 2) they are the criteria against which job success is measured 2) they are the criteria against which job success is measured For hospitality managers and supervisors, they are indispensable For hospitality managers and supervisors, they are indispensable

12. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved WHAT? HOW? TO WHAT STANDARD? Effective performance standards must be Specific Observable Meaningful Measurable Specific Observable Meaningful Measurable Some hospitality operation’s job descriptions break each task to be performed down into a performance standard: the what, how, and to what standard each task within the job description is to be accomplished Performance standards are often stated in terms of quality, quantity, timeliness, or cost…

13. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved PERFORMANCE STANDARD EXAMPLE Activity: ANSWER incoming calls Performance Standard: Performance will be satisfactory when: Performance Standard: Performance will be satisfactory when:  Telephone is answered in three or fewer rings; employee has a smile on his or her face, and employee uses appropriate address such as “sir” and “ma’am.”  Employee does not leave callers on hold for longer than 30 seconds without acknowledging they are still waiting  Information provided to callers is correct and complete  Customer complaints do not exceed 2 per annual rating period

14. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved MEASURABLE STANDARDS Provide for a range of acceptable performance Provide for a range of acceptable performance There should be several levels of performance so that excellent performers can be differentiated from satisfactory performers, poor performers, and so forth There should be several levels of performance so that excellent performers can be differentiated from satisfactory performers, poor performers, and so forth

15. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved SETTING A RANGE OF BEHAVIORS Some organizations may choose to set a range of behaviors as follows: Some organizations may choose to set a range of behaviors as follows: Excellent performance: Answered in 1 ring or less Excellent performance: Answered in 1 ring or less Good performance: Answered in 1 to 2 rings Good performance: Answered in 1 to 2 rings Satisfactory performance: Answered in 2 to 3 rings Satisfactory performance: Answered in 2 to 3 rings Marginal performance: Answered in 4 to 5 rings Marginal performance: Answered in 4 to 5 rings Poor performance: Answered in 5 or more rings Poor performance: Answered in 5 or more rings

16. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved NEEDS ASSESSMENT  Conducting a needs assessment helps to diagnose current and future challenges that the organization might face, and then it helps to determine ways to meet those challenges through training and development  An important step because it ensures that money devoted to training and development produces the desired results

17. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved FACING CHALLENGES INTERNAL challenges may include learning to operate new equipment, or learning a newer and more productive way to accomplish a task INTERNAL challenges may include learning to operate new equipment, or learning a newer and more productive way to accomplish a task EXTERNAL challenges often result when new federal, state, or local laws and ordinances are enacted and thus force the operator to conduct business differently EXTERNAL challenges often result when new federal, state, or local laws and ordinances are enacted and thus force the operator to conduct business differently Hospitality organizations face both internal and external challenges

18. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved APPROACHES TO NEEDS ASSESSMENT  Observation  Task identification  Employee surveys  Exit interviews Needs assessment is not only a valid diagnostic tool that helps a company to identify training needs, it also helps to reveal shortcomings that can be traced to other management activities like ineffective job placement, ineffective orientation programs, or ineffective recruiting

19. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved FIVE LEARNING PRINCIPLES 1) Repetition 2) Participation 3) Relevance 4) Transference 5) Feedback

20. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved FACTORS TO CONSIDER WHEN CHOOSING A TRAINING METHOD  Cost-effectiveness  Desired training content  Facility  Trainee and trainer preferences  Learning principles With annual revenue of $1.2 billion, and more than 112 restaurants and 27,000 employees nationwide, the Cheesecake Factory spends an average of $2,000 on training per hourly worker each year Workforce Management, April 24, 2006, p. 1, 22-29

21. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved TRAINING METHODS  On-the-job training (OJT) and job rotation are delivered directly to the employee while on the job  Off-the-job training methods include lectures, video presentations, computer-based training, role-playing, case studies, simulation exercises, and self-study

22. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved METHODSRepetitionParticipationRelevanceTransferenceFeedback ON-THE-JOB OJT Cross Training Internships Yes Sometimes Yes Yes Yes Sometimes No Sometimes OFF-THE-JOB Lecture Video E-Learning Role playing Case Study Self-study No Yes Sometimes Yes No Sometimes Yes No Yes Sometimes Yes Sometimes No Sometimes No Sometimes DIFFERENT TRAINING TECHNIQUES UTILIZE VARIOUS LEARNING PRINCIPLES

23. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved EVALUATE TRAINING  The reactions of the trainee: fill out an evaluation form  The knowledge or learning acquired through the training process: give a pre- and a post-test  Changes in employee behavior as a result of training  Measurable results or improvements in the individuals or the hospitality business overall: examples include lowered turnover, fewer guest complaints, fewer accidents

24. Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved SUMMARY  Training and development  Benefits of training  Needs assessment  Performance standards  Performance management cycle  Performance standards  Five learning principles  Selecting a training method  On-the-job and off- the-job training  Evaluating training