What Is a Performance Management Plan?

The so-called performance management system refers to the continuous cycle process of managers and employees at all levels participating in the formulation of performance plans, performance coaching and communication, performance assessment and evaluation, application of performance results, and improvement of performance goals in order to achieve organizational goals.

Performance management system

Performance appraisal is also commonly referred to as performance appraisal or performance appraisal. It is based on the work undertaken by each employee in the enterprise, applying various scientific qualitative and quantitative methods, the actual effect on employee behavior and its contribution or value to the enterprise Perform assessments and evaluations. it is

How can an efficient performance management system help companies achieve their operational goals?

(1) Able to transform the business objectives of the enterprise into detailed and measurable standards;

(2) Able to refine the company's macro operating goals to specific employees

If you want to evaluate the effectiveness of an enterprise's performance management system, it must be carried out from the following eight dimensions: 1.

1. Reflect the company's performance value.

2. Make administrative personnel accountable and actively participate.

3. Focus on developing "correct" performance measures.

4. Make managers accountable for performance feedback and differentiation.

5. Establish complementary roles and responsibilities.

6. Integrate with other business and human resources processes.

7. Minimize administrative burden.

8. Provide necessary communication and training.

9. Measure and track the successful implementation of performance management.

10. Make continuous improvements.

The vast majority of Chinese enterprises are using the tool of performance management, but in the actual application process of enterprises, this and other problems often occur. Among them, the most common problems in the operation of enterprise performance management systems are:

1. Consider artificial evaluation at the end of the year as a performance appraisal

In practice, many companies evaluate some people by middle or senior management or all employees at the end of the year by simply filling in a form, called "assessment", which is fundamentally different from what we call performance management. Performance management is ex-ante management It is not the hindsight, but the institutional reviewer, not the human reviewer.

2. Treat business budget decomposition as performance management

Most companies equate the formulation and decomposition of annual financial goals with performance management. This is also a bias. Financial goals are results that require the support of several process management indicators. It is difficult to ensure the effective realization of results by simply looking at the results of the assessment.

3. Low correlation between performance appraisal and corporate strategic goals

Although the concept of strategic performance management has been accepted by everyone, in the practice of performance management, due to the lack of understanding and grasp of corporate strategy, both strategy and performance management are often disconnected. Managers design assessment systems based on experience and financial indicators, and lack the process of demonstrating and deriving from strategy to assessment systems.

4. Performance appraisal flows into the form and has no substantial value

Due to the formalization of performance appraisal, the lack of practical effects, and the difficulty in effectively applying the evaluation results, the performance appraisal flowed into the form, which did not help the actual business activities. It just became a form of year-end performance and a necessary process for distributing bonuses.