What Is Business Performance Management?

The so-called performance management refers to the continuous cycle of performance planning, performance counseling and communication, performance evaluation and evaluation, performance results application, and improvement of performance goals for managers and employees at all levels to achieve organizational goals. Improve performance of individuals, departments and organizations.

Performance management

(Management term)

So-called

In the process of serving companies for many years,

In addition, the number and definition of decision areas in which industry belongs is also a key factor. "Performance Management" adopts the common manufacturing model because it is the most common and has been widely recognized by everyone. These 42 decision-making areas involve the company's eight major functions, namely finance, marketing, sales, customer service, product development, operations, human resources, information technology, and senior management in charge of leadership.

In information technology, there are five decision areas that provide IT departments with insights and examples that help drive the company's overall value. They are business value maps, IT asset management, project / software development life cycle (SDLC) management, IT supplier management, and IT compliance management. These five decision domain sequences provide a logical, iterative analysis and operational process. The beginning and end of the process-where the IT department starts and how to drive business value-lays the groundwork for priorities and plans to bridge the gap. You need to understand in detail the efficiency of IT assets when they operate independently and jointly, so that they can operate more effectively. To optimize existing assets or add new ones, you need to closely monitor projects and manage suppliers. Finally, you need to visually understand the many "active parts" to ensure that you meet business goals and regulations to reduce risk.

If an enterprise wants to make a profit, it must emphasize the importance of performance in enterprise management, and establish an enterprise culture with performance culture as the core. However, there are many companies that copy the western performance management theories without considering the long-term historical and cultural characteristics of their country, which will lead to performance management and performance culture that are not in line with Chinese companies.
Why are western performance management theories unsuitable for China? Because of the influence of Chinese traditional culture, Chinese companies always maintain a "harmony" and advocate "face".
The "mediocre" way Many business managers are more willing to act as "Mr. Good", and adopt more eclectic approaches in performance evaluation, so that the performance evaluation results tend to be averaged, and employees must be separated Three, six, nine, etc. are more difficult, which is also the main reason why the performance management system stipulates that the level distribution of performance evaluation results becomes a dead letter.
In the Chinese cultural environment, if the company's highest award is won by an employee for three consecutive years, he will be surrounded by jealousy. Thereafter, he will not find too many partners in this company. Because most of the business in the company is done through teamwork, it always motivates individuals, but it hurts the atmosphere of group collaboration.
Face problem The Chinese are famous for their love of face. If one thing makes him lose money in real profits, but there is a corresponding spiritual benefit, that is, with face, then he will probably be happy. On the other hand, if you lose face, even if the benefits are real, you will still have a shame in your heart. If you lose this face, it seems that you will be in trouble in the end.
In order to take care of employees 'face problems, the main body of enterprise assessment often blames the employees' problems on objective reasons, because in this way, they will not lose face even if the employees perform poorly. In the enterprise, an old and good culture is advocated: in order not to offend people, everyone is unwilling to make negative evaluations when performing performance assessments, so as not to cause emotional subjective harm. In addition, companies are not as formal and open as the West when implementing performance evaluations, and are relatively more hidden. When announcing the evaluation results, only the better results are announced. For poor and unqualified evaluation results, they are often not disclosed for the sake of face.

By domestic

Misunderstanding of performance management is the most fundamental reason for poor performance management performance and the most difficult obstacle to break through. Enterprise managers often have the following misunderstandings or even misunderstandings about performance management:

1. Performance management is a matter for the human resources department and has nothing to do with the business department

In the practice of enterprise performance management, there are many such cases. The company leaders attach great importance to performance management and the human resources department has made great efforts to promote performance management. However, the leaders and employees of various departments do not know enough about performance management. Performance management is a matter for the human resources department or the personnel department. some

For companies, performance management is a set of methods to enhance strategic execution. It combines personal performance, personal development, and company goals. It continuously improves corporate performance by continuously improving personal performance and team performance, and ensures the implementation of corporate strategy. And achievement of business goals.

For managers at all levels, performance management can help them improve their management level and reduce management pressure. By establishing a top-down, layer-by-layer target system, each employee can clarify their own work priorities, work goals and directions. Let employees do the "right thing" in the most effective way and do their best to ensure that their work behaviors and work outputs are consistent with the organization's goals. For employees, performance management helps employees improve their personal performance through performance goal setting, performance coaching, and performance feedback, and enhances their personal capabilities through the implementation of employee improvement plans, thereby helping employees achieve personal career development.

Performance management is a process for enterprise employees to form a consensus on the goals that should be achieved and how to achieve them. It is a management method that scientifically and dynamically measures the work efficiency and effectiveness of employees within a certain period of time. It is through the development of effective and objective performance measurement standards. The process of enabling managers at all levels to clearly understand the work performance, business ability, and effort of their subordinates during the assessment period, and to evaluate their work efficiency and effectiveness.

The core purpose of performance management is to improve the performance of the organization or team by improving the performance level of employees. In the process of performance management, employees have a sense of self-fulfillment by participating in setting their own work goals; by decomposing the goals from the top down, avoiding team and employee goals to deviate from the organizational goals; multiple evaluations and rewards and punishments throughout the year To achieve the organization's monitoring and implementation of goals, to ensure that the work goals are completed on time.

Performance management provides a standardized and concise communication platform. Performance management has changed the previous purely top-down method of issuing orders and checking results, requiring managers and managers to regularly communicate and judge their work behavior and results , Feedback, coaching, managers must train and develop the professional ability of the managed person, provide guidance and encouragement for their professional development, objectively provide a very practical platform between the manager and the managed person.

Performance management provides the necessary basis for the human resource management and development of the enterprise. Through performance management, performance evaluation is performed to provide the necessary basis for management decision-making of enterprise employees, such as dismissal, promotion, transfer, and demotion. It solves the problems of employee training, salary, career planning, etc., and makes it well-founded.

1. Develop an assessment plan

1) Clarify the purpose and object of the assessment.

I. Performance management communication mainly refers to the communication among organizers, appraisers, and appraisers. according to

The Key to Performance Management: Formulation and Decomposition of Performance Objectives

When it comes to performance management, we are no strangers. Many companies are trying or have already implemented performance management. Any HR manager who has been promoted will fall into a dilemma: On the one hand, performance management is a magic weapon that can pass objective assessments and evaluations.

1. Achieve your company's strategic development goals and be able to change as needed.

1. Performance management organization and responsibilities;

2,

often,

1. Lack of strategic guidance and cultural support, the assessment process was scattered

2. The position analysis is not in place, and the assessment follows the feeling

3. Blindly pursue quantification of indicators, fashionable methods flashy

4. The feedback mechanism is not perfect and it is difficult to play the resonance

5. Relevant leaders do not support the HR department

6. Mismatch in related measures, forced abortion of management plan

With regard to performance management, the "top leader" of the enterprise is flawed in the following four aspects:

1. Lack of required performance management knowledge

2. Not paying enough attention to performance management

3. Understanding performance management in a narrow sense

4. Too much pampering line manager

1. Motivate employees and do not control employees

2. What matters is the ability of the manager, not the tools used

3. Focus on communication and consensus

4. Believe in continuous improvement

I. Systematic thinking of performance management,

The effectiveness of managers is the guarantee of performance management systems

1. Performance plan and performance indicators

2. Performance coaching and implementation

3. Performance evaluation and feedback

4. Performance diagnosis and improvement

Performance management is mainly through the performance evaluation of employees,

I. Systematic:

Performance management is a complete system, not a simple step. Performance management is not a special thing, and it is not a patent of the personnel department. In the final analysis, it is still a management tool. It covers all functions of management: planning, organization, leadership, coordination, and control. Therefore, we must take a systematic look at performance management.

Objective

One of the biggest benefits of goal management is that employees understand the direction of their efforts, and managers know how to better manage employees effectively and provide support and assistance through their goals. Similarly, performance management also emphasizes goal management, and the goal + communication performance management model is widely advocated and used.

Only when the goals of performance management are clear, will the efforts of managers and employees have a direction, will they be more united, work together to achieve performance goals, jointly improve performance capabilities, and better serve the strategic planning and vision goals of the enterprise .

Third, emphasis on communication

Communication plays a decisive role in performance management. To communicate performance, to communicate to help employees achieve their goals, to communicate at the end of the year, to communicate and analyze causes to seek progress. In short, the process of performance management is the process of continuous communication between employees and managers. Without communication, the performance management of the enterprise will be in the form.

Many management activities fail because of communication problems. Performance management is committed to improving management communication, comprehensively improving managers' communication awareness, improving management communication skills, and then improving the management level and management quality of enterprises. .

Fourth, attach importance to the process

Performance management not only emphasizes work results, but also the process of achieving goals. Performance management is a cyclic process, which not only focuses on results, but also emphasizes goals, coaching, evaluation and feedback.

Performance management by management level

One of the characteristics of the performance management system is that different performance management objects assume different job responsibilities, and they should correspond to different performance assessment methods according to their characteristics. Therefore, to define and establish a performance management system, it is first necessary to clarify the applicable objects of the performance management system. Usually the company's performance management system is suitable for all employees, including management and ordinary employees.

Performance management by job characteristics

The work of each post can be examined from the characteristics of stability, procedure and independence. Stability refers to the stability of the work content and the work environment; procedural refers to the degree to which work follows certain procedures; independence refers to the degree to which individuals are allowed to make self-decisions in terms of job completion.