You should always dress or discard a hammer that has cracks or pieces missing. Missing pieces are usually surrounded by cracks and more pieces will come out when you strike something. As to dressing it, it depends if it was surface hardened or not, machinists hammers sometimes are, and the hardening isn't all that deep, if the face is ok, leave it and round the sides so they are smooth, if the face is damaged, and the damage is more than 1/16 , the hammer is probably suspect...
Sometimes hammers are over hardened, especially cheap import ones, and the thing will just keep popping chunks off, there isn't much you can do with those...
Using a hand file on it will tell you if it is hard on the surface or not, if it shaves off metal easily, it isn't hardened anyhow...
(Ball pein hammers with pieces missing have likely been abused, they are not sledge hammers )