The Five Key Components of Performance Management Process in Restaurants

November 5, 2019


The performance management process is a systematic process to manage and monitor your staff performance in light of their key performance standards or objectives. It serves as a process to lead the management of individual and organizational performance.

According to A Handbook for Measuring Employee Performance, performance management is the systematic process of:

  • Planning work and setting expectations
  • Continually monitoring performance
  • Developing the capacity to perform
  • Periodically rating performance in a summary fashion
  • Rewarding good performance

To have an effective and efficient performance management process, restaurant managers must continuously master and apply this process. Mastering this process, a manager will be able to better focus staff efforts on achieving organizational and individual goals, driving the restaurant towards success.

1. Planning:

The restaurant manager should meet with the staff to create their performance plans. He also should establish measurable objectives in line with the restaurant’s strategic and operational plans and consult with staff when establishing these objectives. At this planning stage, the restaurant manager has the opportunity to explain to staff how its performance directly affects how the restaurant and business will achieve their objectives.

There are three important characteristics of performance planning:


The Performance Management Metric is used to measure the performance of employees and stations. It provides information about performance gaps and achievements. Thus, it assesses how well an individual employee performs against his or her appointment goals


Measuring employee behaviors is one of the most difficult tasks in performance standards. The manager or the Human Resources Department can measure human behavior through close monitoring and supervision.

·Development plan: 

The development plan is the third stage of performance planning. At this stage, a restaurant manager develops plans to improve staff knowledge, skills and attitude (K, S, A). It allows employees to take their professional standards to the next level that is the support of development tools and plans.


2. Monitoring:

You, as a restaurant manager, should monitor your employees’ progress, not only when there is a review of the progress, but continuously throughout the evaluation period.

Both the employee and the manager are responsible for measuring and evaluating the employee’s performance against stated goals. The process should include the extent to which individual objectives, behaviors, attitudes, and accomplishments are made during the performance evaluation cycle.

Monitoring allows the manager to make a course correction or schedule if necessary so that employees can achieve the desired result to successfully achieve the goals of the restaurant.

It also provides an opportunity for the manager to sensitize staff to their progress, whether favorable or unacceptable. If the manager decides that the employee has an unacceptable performance on any critical task, monitoring performance enables the manager to identify the problem in advance and have a chance to adjust practices prior to the rating stage.


3. Developing:

Through continuous monitoring, the restaurant manager shall determine whether staff needs further development to fulfill their responsibilities. It is important to remember that staff development not only includes treatment but also promotes good performance.

In the developing stage, a restaurant manager should be able to specify what an employee should do to improve his performance when necessary. Moreover, the manager should identify the actions staff should take to develop their knowledge and skills and increase their levels of competence.

Types of development could include


4. Reviewing and Rating:

Performance Review is an evaluation phase, where performance is reviewed against given goals or objectives, over a period, covering aspects such as achievements, progress, and problems, leading to performance ratings.

For a successful performance review, the engagement and exchange of dialogue are equally necessary between the restaurant staff and the manager. Apart from reviewing performance, they also discuss development plans and training courses to improve skills and practices. Additionally, they can discuss next year’s goals and expectations of both the employee and the manager. Thus, this stage is the basis for next year’s performance evaluation cycle.

In the rating phase, a restaurant manager shall compare that performance with the employees’ metrics and KPIs to assign a rating, using the knowledge gained from monitoring and reviewing employee performance. The final rating should surprise the employee, especially when the manager and the employee have had many discussions about performance during the mentoring and reviewing period.


5. Rewarding: 

The award must be clearly distinguishable between different levels of performance that are quite successful or higher. Moreover, performance management should support compensation decisions.

Each restaurant should have unique policies that govern performance management. The restaurant manager should master and well apply planning, monitoring, developing, reviewing & rating and rewarding practices. In addition, he must learn and apply these policies as they relate to the specific practices of restaurant management.

To decide whether they have implemented their restaurant’s performance management process successfully, you, as a restaurant manager, have to answer the following questions:

  • Does my application of the process lead to better performance?
  • Has performance been optimized during the evaluation period?

If your answers where yes, then you effectively implement performance management policies and practices, and the process went well.


Final thoughts:

Performance management is an ongoing process. Once the performance is reviewed and terminated, the process begins to evaluate the next performance. It must align and integrate again with the next year’s mission, goals, and objectives.

Actually, this process starts over and needs discussion, design, development, implementation, and review again. This is essential because the external environment of a restaurant such as market, customers, competitors, suppliers, etc. also changes and all subsequent changes must be preconditions for next year’s performance planning and strategic objectives of the restaurant.