Contemporary Issues And Reflection Of Labour Turnover Commerce Essay

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In the hotel industry, this always happen due to the demand and supply of this job market. Some hotels have staffs whose average tenure in the organization is shorter than its competitors. It is harmful to have a high labour turnover for the hotel industry. The productivity will be low if the skillful workers leave more than the unskillful workers.

Fringe Benefit

Sometimes, employees in the hotel industry do complain about the benefits given which is not enough. Hotel doesn't work like other organizations where there is public holiday and it opens everyday throughout the year. Many people have to work during public holidays and even festive seasons. Staffs claim to get lesser or not enough benefits like sick leave, medical expenses, vacation and profit sharing.


Every organization has their promotion internally or externally. In the hotel industry, promotion happens but employees feel that the opportunities are lesser despite putting in a lot of effort. This might be due to the lack of monitor of the upper management or they do not really put in effort.

Pay Related

This is very much related to salary and wages. Everyone needs the salary to establish them and this is the same for the hotel industry. The starting pay of the hotel industry is low and the increment is not high as well. All these are based on their performance and contributions.

Human resource is included in the core source of company. I agree that performance appraisal play role in developing the current human resource of company, and I do believe that company also needs to pay attention into this performance appraisal matter. If the human resources of a company are good, qualified, the company will mostly good, qualified as well. Company must take a good care of their employees. For hotel industries, the challenge in the Human Resource management, is ensuring that their workforce has relevant skills to move forward (Anonymous, n.d). According to Ross and Denroche, (2001), now in hotel industries, employees are assessed on their performance, to determine and build new leadership initiatives, in addition it means they measure have been developed to assess leadership, specifically the alignment to succession planning, to identify development and retention of high performing leaders.

As I mentioned above, Performance appraisal is the evaluation of an employee's current or past performance relative to his or her performance standards (Aminuddin, 2005). According to Mondy and Noe (2005), performance appraisal (PA) is a formal system of review and evaluation task performance of individual or team. There are some ways to conduct performance appraisal such as:

360-Degree Feedback Evaluation

Rating Scale

Critical Incidents


Work Standard


Forced Distribution

Behaviorally Anchored Rating Scale

Result-Based System

Assessment Centers

To measure their performance appraisal, the method that adopted by the hotel industry is the 360-Degree Feedback method. 360-degree feedback method is also known as multi source feedback, where there is an evaluation of the performance not only by the subordinate, but also by superior (peers), manager, customer and themselves (Noe, 2008). This appraisal method is a trend that practice by a lot of company, whether the well-established company or a just born company.

To conduct a 360-degree feedback performance appraisal test, a company must learn and collecting information as many as possible to help them determine the quality of their HR. The source of information can be collected as shown in below diagram:

The Superior or peers

The Subordinate


Other Staff

The Superior Manager


Figure1. Possible source of information in appraisal (Aminuddin, 2005)

360-degree feedback has the function of informational and motivational (Dipboye, 1994). By the evaluation of others people to them, the employee should able to find what his performance condition is, what are their weaknesses and strength in the current level. Besides that, the evaluation also can give positive inputs such as some critic to the current performance, and how to solve that problem to be a better individual in the future (Noe ,2008).

A new 360° feedback survey with online base has been developed by the hotel industry based on the newly enhanced model. This system helps individuals and groups assess their current level of performance to see whether they have maximized their performance or not. With that they will able to receive suggestions to develop their level of performance (Cavallo and Brienza, n.d).

The 360-degree feedback performance is used effectively, especially when they are measuring the performance of that leader in management level. With this method they can get the supervisory responsibility from employee reports. They did found out that most of their employees do not play a maximum attention to their supervisor and usually over critical towards them.

Advantages and Disadvantages of 360-degree appraisal

By 360-degree feedback method, the result shows a fair comment from multiple sources. The sources that evaluate the particular employee were people who work directly around him/her. By that kind of sources it will be easier to get the complete profile of the particular employee. In example: in the hotel industry, the employee of Sales department must not be evaluated by the Research and Development department, because these two departments are working under different goals and circumstances. The person who work in sales department should be evaluate by those work in that department also.

In order to help the hotel industry to get better quality of information to rely on, appropriate person that in charge to rate the performance of the employee should not be a subjective person. Means that the person should really show the credibility and accountability.

Besides helping company in development decision, this performance appraisal also help appraises to learn about themselves, not only from their judgment from their point of view, but also from various raters that in charge to comment on him/her. The performance appraisal should have a clear standard that can be use widely by the raters.

To do a 360-degree feedback appraisal is consuming so much time, since there are not only a single commentator. This appraisal also consumes a lot of fund, to pay the incentive rates. Besides that, 360-degree feedback method also need the seriousness of the rater, because if the rater rate the employee not seriously it will give the bias result to the company to commented and make decision from it.

Sometimes in the company there are nepotism and collusion. These conditions allow the raters to rate their favorite person with a good rate and those that they don't like will be rated unfairly. This will lead the company into moral hazard condition.

Enhance the TQM (total quality management), communication, team management and customer service of an organization. Before employees are trying hard to please their boss as he was controlling the appraisals. But by using 360 degree appraisal each employee will work harder to maintain good relation with his internal and external customers as they have feedback into the his performance rating.

According to Waldman and Atwater (2007), employee involvement will bring a positive issue that the employee existence is not ignored by the company. This gives the chance to employee to rise out their opinion and contribute it out to development of the company.


Even though the 360-degree feedback online base in the hotel industry is a good appraisal to measure the HR performance, it does not mean that the hotel industry will not accept a way to improve their system to develop their human resources. New idea means new input to be better for them.

In my opinion, the hotel industry may have collaborate their current system; 360-degree feedback online method, with new innovation. Like what most hotels are doing, they are setting up a performance measurement with accomplishment in their objective in a period of time. The objective that the employee must achieve is not objective that set up by the company. Instead of that, the hotel industries give their employee ability to set up their goal. So, instead of those objectives that set up by top management, the employee has their own goals.

The other method also might help the hotel industry to get the real commentary of the performance appraisal by asking the feedback including the reason, the competency that need to be developed for employee to be written in essay. According to Noe (2008), this can help the hotel industry to get more specific detail of their employee performance, to make decision regarding the training that should be provided, and also prevent their employees to use this feedback as the chance to promote themselves.

To measure in more fairy way, the hotel industry's management maybe can use the outsource method, where they hire outsider to help in the measurement. Since outsider will not have any relation to their employee. This outsider might go and observe the employee performance and give a fair comment on the performance itself.


Every company in all type of industry should have the measurement of their employees even management performance. Human resources are the most important resource that a company posses. That's why, company should take a good care of their employee, train them to have the skills and quality they needed to bring the company into a success.

To measure the current ability or condition of employees, a company must do a performance appraisal; it is a core performance measurement for a company. Performance appraisal is an evaluation of employee current performance, to find the current strength and the weaknesses, to establish a better one in future. In this present time especially, the 360-degree Feedback method, it is the best method to apply the organization performance. However to make the 360-degree feedback appraisal work in appropriate way, the company should make sure the component of measurement are reliable and trustworthy.