Abstract This study sought to shed light on the relationship between employee perception on performance management and employee performance in the hotel industry in Kenya and sought to achieve three objectives. These were to establish employees‟ perception on performance management initiatives in the Hotel Industry in Kenya, to evaluate the extent to which employees view their performance as satisfactory and to determine the relationship between employee perception on performance management and employee performance. The study employed the descriptive design that employed stratified quota sampling and used questionnaires to collect primary data. The questionnaires were distributed to 90 staff members involved in customer service points across 10 hotels classified in the three, four and five star categories in Nairobi. The data collected was analyzed using both descriptive and inferential statistics. SPSS version 17 was used to analyze the data. The Findings indicated that employees appreciate performance management initiatives in the hotel industry. Quality and safety were key drivers in managing performance in the hotel industry. Easy exchange of information within and between departments was also important in ensuring that the quality of customer service was maintained. There was agreement that the management of performance had aided in fostering good working relations. The study concluded that managing performance aided employees in performing their duties but did not significantly influence their individual performance. The study recommended a re-evaluation of the contribution of employee performance in the industry with a view of establishing its main drivers/ predictors. This would enable managers to focus on the issues that positively influence both individual and organizational performance.

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