Core Of Performance Management

If the managers of a company fail to keep communicating with their employees and coaches, the performance appraisal of enterprises will become a mere formality.

It is the core of performance management and the easiest thing for companies to ignore.

In order to assess the management, a company designed a set of examination forms for the management of the brand enterprises, and carried out the examination from 5 aspects: work performance, workload, work attitude, business level and leadership ability.

However, in the actual assessment, top management has found that enterprises are going through the motions from top to bottom.

Finally, the company has not introduced human resources consulting company.

The human resources consulting firm found that the problem of the enterprise lies in the set of assessment forms designed by themselves.

The crux of the problem lies in the unclear purpose of the examination, the unclear content of the examination, the indifference of different posts, the need to discuss the majority of the assessment indicators, the lack of distinction between the results, the objectives and objectives, the inability to quantify indicators, and the unscientific scoring criteria.

Performance management and performance appraisal are not equal to performance appraisal in traditional sense.

Performance appraisal is only a part of performance management, and it only summarizes and appraise employees' performance in a certain period of time.

Performance management is a continuous and circular process. The core of performance management is to improve the performance of employees, so as to achieve the goal of improving the overall performance of enterprises.

At present, the performance management of many domestic enterprises still stays in the examination stage (or performance appraisal, or "moral capability"), and the assessment method is mainly based on filling out forms, and then rewards and punishments for employees according to the assessment results.

In the process of consulting and training corporate managers, I asked several business executives: "if you cancel the annual performance appraisal, do you think it will have an impact on the company's performance?"

More than 70% of people think that "no impact", and some even feel that the abolition of performance appraisal can improve the company's performance.

Why is there such an answer?

This is because it is difficult to improve employees' performance by examining employees only.

Accurate performance management includes 4 steps and a core.

These 4 steps include: communicating with employees the strategic direction of enterprises, reaching a consensus; helping enterprises and departments and employees clearly identify performance goals; providing performance results and feedback to employees through performance target assessment and qualification assessment; strengthening the performance of employees by means of remuneration, and as an important way of communication in enterprise strategic direction, and using development means to improve staff qualification.

The above 4 steps form a circular performance management process.

The core of performance management is communication and coaching, which is the core of performance management.

But in practical work, communication and coaching are also the most easily neglected places for business management.

In many enterprises, annual performance appraisal seems scientific and fair, but if the managers of this year fail to communicate with their employees and coaches continuously, the performance appraisal of enterprises will become a mere formality.

In fact, continuous communication between supervisors and subordinates can solve two important problems: first, change the "Post Examination" into "process management", identify problems early and solve them in time.

This avoids the deviation of the performance management objectives of the enterprise from execution, so as to ensure the completion of the goal.

Second, avoid the lack of motivation due to the lack of any feedback from the supervisor.

Corporate culture should not be overlooked. Besides, in the process of performance management, the role of corporate culture should not be underestimated.

Although corporate culture seems to be absent, it is ubiquitous and affects the behavior of employees at any time.

Therefore, when carrying out performance management, enterprises must give full consideration to the impact of corporate culture.

For example, a company with relatively loose culture and relatively smooth internal communication will be relatively easy to carry out the 360 degree evaluation. In a conservative and closed enterprise, the implementation of the 360 degree assessment will be out of date.

The four step of performance management is to improve the performance of the enterprise through the administrator's performance. It is far from enough to rely solely on the assessment. The 4 steps and core of performance management are indispensable.

The first step is strategic communication.

At present, many enterprises in China can not clearly communicate their strategic intentions to employees after formulating strategic plans.

Due to the lack of effective communication, it is very easy for all departments to lose common direction and goal, and can not start from the overall situation, resulting in enterprises repeatedly obstructed in implementing strategy.

Thus, it is very important for enterprises to communicate strategically with employees. It is the basis for managing employee performance and company performance.

Second steps, specific goals.

After defining the strategic direction, the enterprise should formulate the performance goals of the company level according to the overall strategy, and decompose it to various departments, and then each department will decompose the target to each employee.

Balanced scorecard is a frequently used tool in formulating performance objectives.

For employees, in addition to giving them a clear performance goal, they should also set the goal of their behavior, that is, the "qualification development goals".

Qualification is a personal characteristic that distinguishes employees from their performance levels in specific jobs and organizational environments.

It includes not only dominant features, such as knowledge and skills, but also implicit features such as values, self-image, personality, personality, internal drive and social motivation.

Enterprises can improve their performance by improving their qualification.

Third steps, assessment and assessment.

At present, many scholars, consultants and human resources managers do not distinguish between assessment and evaluation.

In their eyes, examination and evaluation are synonyms.

In fact, the assessment is different from the assessment, the assessment is targeted at the results of the performance, and the assessment is targeted at the qualification level of the staff.

When a company conducts performance appraisal for an employee, it can apply the SMART principle, namely Specific (specific), Measurable (measurable), Achievable (realable), Result-oriented (result oriented), Time-based (time limit).

For enterprises, these goals are easy to assess, and only need to assess whether the objectives are realized.

But it is not easy to assess the qualification of employees.

Because each person's angle is different, the feedback to the same person is different.

For example, in the face of the same salesperson, his customers may feel that he is proactive and surpassing the expectations of his clients. His colleagues may reflect that he has no team spirit; the finance department may reflect that he often violates the financial regulations of the enterprise.

Therefore, if we want to have a comprehensive understanding of the qualification level of an employee, enterprises should collect information from various aspects and adopt the 360 degree evaluation method.

The fourth step is salary development.

After carrying out performance appraisal and qualification assessment, employees should give relevant information to their employees and make suggestions for improvement or improvement.

Enterprises should also strengthen the performance of employees by means of salary, and develop their qualifications through training, promotion and job rotation.

When making salary design, business managers should keep in mind that "pay is communication", which enables the development strategy of enterprises to be supported by salary and development policies.

For example, sales are the most important and arduous task in the early days of enterprise creation.

Therefore, the salary and development policy of the enterprise should be tilted to the salesperson. When the enterprise enters the mature stage, the sales work becomes relatively easy. The importance of management, R & D and marketing is beginning to show. The salary and development policies of the enterprise should be tilted to these departments at this stage.

For example, if an enterprise's development strategy is internationalized, in order to support this strategy, enterprises can encourage employees to learn English by offering bonuses or providing training.

It can be seen that salary and development are very important strategic communication tools for enterprises.

The end of annoyance: the problem of performance management based on performance management. According to the idea of performance management, I found that the key to providing OEM for brand enterprises is to establish a supply chain system with low cost and high efficiency.

Therefore, the author focuses on the performance management of enterprises in the production, procurement, storage and pportation departments, and sets down performance targets related to cost reduction and corresponding implementation plans for all departments in the enterprise.

In addition, I designed staff qualification models including staff focusing on cost, quality and process optimization, and divided each module into 4 levels.

For example, the 4 levels of process optimization module are: do not understand or do not know clearly the work process of one's own; know clearly the workflow of one's own work, report in time to the problems appearing in the process; be able to lead or participate in solving problems in the process; be able to think actively about the possible impact on their work process according to the changes of external factors, and put forward suggestions or organizational strength to solve problems.