| Since China joined the WTO, all segments of business have faced increasing competition in the global market. The hotel industry, being one of the earliest industries to be in line with international practice, cannot avoid that same fierce competition. The question that all hotel operators have to deal with is "How to improve the core competitiveness and to sustain the development of hotels?" To this end, hotel operators must seize the precious opportunities and improve the managing efficiency of their business to keep up with the trend. The author believes that one of the key points to hotel management lies in human resource management, and the latter hinges on performance management, which attaches great importance to performance evaluation. Therefore, starting from devising a sound performance evaluation system is of practical significance for solving the issues facing hotels in the course of their development.Taking LM hotel as an example, the paper analyzes the current operation and management comprehensively and in-depth based on several first-hand sources including questionnaires, documents and interviews. As a result it reveals the current problems facing the performance management and evaluation of LM hotel. With the knowledge gained of strategic and human resource management, the author works out the performance evaluation system of staff for LM hotel. This system has filled in a gap in performance management and performance evaluation at LM hotel and has received much recognition and support from the hotel staff and the management level. This system will be improved, even after it in practice; in the meantime, the author hopes it will influence other similar hotels by giving them a reference for the establishment of a performance evaluation system based a scientific, rational and effective method. |