Performance evaluation method

What are the methods of employee performance appraisal? What are the common performance appraisals? Let's take a look at the performance appraisal method I brought to you. Maybe you need it.

Performance appraisal is a link in enterprise performance management. Common performance appraisal methods include BSC, KPI and 360-degree appraisal. EMBA, MBA and other mainstream enterprise management courses regard the design and implementation of performance appraisal methods as an important requirement for managers' human resource management ability, which is mainly one of the core tasks of human resources departments.

What are the commonly used performance appraisal methods?

Strictly speaking, there are only two commonly used performance appraisal methods: KPI and BSC. 360? In fact, assessment is not, or cannot be regarded as, a method of performance assessment, but an assessment logic; From the practical application, 360? It is more suitable for understanding the subjects of a position in five dimensions, such as superiors, peers, subordinates, external customers and internal customers, and the evaluation of the appraisee on some indicators when changing jobs. As we all know, as managers, especially department heads, they should not only carry out internal management, but also communicate with internal and external customers, which puts more demands on managers' communication ability, leadership and affinity. If you want to promote a person, you must not know the situation from his/her boss and subordinates unilaterally, but also need to know from many aspects. So, 360? In fact, it is more suitable for an employee's promotion/transfer, and not suitable as an assessment method.

KPI is the simplest performance appraisal method, but the first difficulty lies in whether the selection of KPI is reasonable. Most enterprises are accustomed to using empirical methods to select KPIs, which is not inappropriate. However, if enterprises withdraw from new products/services or enter an emerging market and need to add new KPIs, they will face the problem of how to select KPIs.

Balanced scorecard is a kind of strategic management thought. When Kaplan and Norton invented BSC, the idea was to get through the link from strategy to action, but it was later extended by academic and business circles and developed into a more mature performance appraisal model. However, in the four dimensions of BSC, you need to fill in the KPI of the corresponding dimension. Only in this way can it be used, otherwise only BSC can't evaluate it.

From a practical point of view, BSC is a very comprehensive performance appraisal model, but the biggest problem is: how can enterprises judge the driving relationship among the four dimensions of KPI? Do you rely on experience or intuition? Are there any overlaps between indicators? Is the logical relationship between indicators correct? These are all problems. Therefore, if you want to use BSC well, you'd better use strategic map.

BSC is more complicated to operate, and requires higher human resource management level and professional quality of department heads. Although it has been applied in most enterprises, the effect is not ideal. But once the operation method is mastered, enterprises will find that strategic map is really a good set of strategic management tools, and if it is combined with BSC operation, it is also a good set of performance management tools.

EVA is the abbreviation of economic added value. In fact, EVA originated from a term in accounting, which was first invented by Stenster Company in the United States. To put it simply, EVA examines the after-tax net profit after deducting the cost of capital (usually WACC) created by the actual use of capital, rather than? Accounting profit? Or? Book profit? , can more truly evaluate the value created by enterprises, to a certain extent, constrain the investment decisions of executives, and do not invest indiscriminately or destroy capital. Because there are many experts? Do the accounts? Some enterprises can make beautiful accounting statements, but if the use cost of funds is deducted, it is likely that they will not only have no profit, but even lose money.

As an important indicator, EVA can effectively protect the interests of shareholders, eliminate the phenomenon of insider control, and effectively avoid blind decision-making and reckless investment behavior of executives by unifying assessment standards (combining income, profit, cost and other indicators) and comprehensively evaluating the cost of capital use. However, the calculation of EVA is troublesome, and many accounting indicators need to be adjusted within the enterprise, which is not suitable for high-risk industries, financial industries and start-ups, and is more suitable for practical use.

When calculating the performance of KPI, BSC or EVA, there are three commonly used measurement/evaluation methods: percentage method, either-or method and addition and subtraction method. Percentage rate method is the most widely used quantitative assessment method, which is suitable for the calculation of most performance assessment indicators. Its calculation formula is: actual achievement value? Planned value? 100%? Index weight score; This method can score the work effect at multiple levels, and can intuitively understand the rating ranking of employees in various departments.

The result of this evaluation method is only yes or no, and there is no intermediate state. It is suitable for phased work that does not need to be quantified, such as whether a work is completed within the specified time. If it is, it will get full marks, otherwise it will get full marks.

Addition and subtraction is a zero-weight evaluation method. Such indicators may not occur in the assessment cycle, but once they do, they will usually be deducted by a large margin or even rejected by one vote, such as major accidents. When it doesn't happen, it doesn't add points or deduct points, but once it happens, it will deduct the score of this indicator or even veto all performance scores by one vote.

Performance appraisal scoring method

There are five scoring methods of commonly used assessment indicators: grade difference method, subtraction method, ratio method, either-or method and explanation method.

1, layer difference method

The grading method is to divide the assessment results into several grades, and the score corresponding to the actual implementation results is the assessment score.

For example, the recruitment cycle = the time from the employer's application for confirmation to the employee's arrival.

If the set minimum completion time is 30 days, the estimated completion time is 25 days. The weight of recruitment cycle indicator in appraisal is 15%, that is, 15 points.

Hypothetical scoring methods can be divided into three types:

A, completed within 25 days, 15 points;

B, 25 ~ 30 days to complete, 10;

C, 30 days after completion, 0 point;

Step 2 subtract

Deduction method is a method of deducting standard points without adding points. In the process of index implementation, if there is any abnormality, points will be deducted according to certain standards, and if there is no abnormality, the score will be full.

3. Ratio method

The ratio method is to divide the actual completion value of the indicator by the planned value (or standard value), calculate the percentage, and then multiply it by the weight score of the indicator to get the actual assessment score of the indicator.

Calculation formula: A/B* 100%* corresponding score. (A is the actual completion value, and B is the planned value or standard value)

For example, HR department recruitment plan completion rate = actual number of recruits/planned number of recruits.

If the recruitment plan completion rate accounts for 20% of this quarter's weight, that is, 20 points, the score is: recruitment plan completion rate *20.

4. Either this or that.

An either-or approach means that there are only a few possibilities for the result, and there is no intermediate state.

For example, the information department is responsible for the achievement rate of the company-level process release plan.

If the weight of the quarterly indicator is 10%, that is, 10 points, because there are not many processes in each department, there may be only eight processes in the human resources department and only seven in the finance department, so the number of processes completed by the information department in each quarter is not very high, so the minimum requirement of this indicator is 100%. There are only two results in the calculation, 65433.

If it is 100% completed, score 10;

100% unfinished, 0 point;

Step 5 explain

Interpretation method: the above method cannot be used in assessment. The explanation method mainly needs to explain several possible situations of performance appraisal results and set the corresponding scoring method for each situation.

For example, employee satisfaction survey and analysis indicators can be scored by explanation. If the index is 20% of a position, the four scores are: 2, 8, 4, 6; Six bosses rated the four items respectively, and the final score was the sum of the four items scored by six bosses.

Matters needing attention in performance appraisal

As theoretical research, each method has its own strict theoretical boundary and system framework, but as consultants, Jiahe Zhibo pays more attention to the relationship between them, the value of each tool, and their enlightenment to enterprise managers and consultants. Taken together, it can be summarized as follows:

First of all, the goal of the enterprise is the core. Either way, the content of management is the goal, and the purpose of management is to ensure the realization of the goal.

Secondly, the internal logic of the system. Companies, departments, specific positions, high-level, middle-level and grass-roots are all a nervous system, and no one can do without anyone, such as pressure transmission, responsibility tracking and performance partners.

Third, the same clever principle. Clear, measurable, quantitative, pragmatic and time-bound, these principles and requirements are the basis of strong operability of performance management.

Fourth, the 80/20 rule of management. The key 20% created 80% of the performance. Therefore, performance management focuses on key performance indicators.

Fifth, pay attention to the future and development. The goal itself focuses on the future development and embodies the pursuit of the enterprise; Evaluation is the means, motivation is the purpose, and improvement is the foundation. Performance management pursues the sustainable development of enterprises.

Sixth, two-way communication and continuous improvement.

We should communicate when setting goals, evaluating results and how to improve them. Performance management is very simple, that is, goal+communication.

Indeed, the balanced scorecard is a scientific tool for setting enterprise goals; The decomposition method of key performance indicators is so fine when setting personal goals; Benchmarking is actually the best indicator and standard source for each assessment indicator.

Enterprise performance management cannot exhaust all methods, but the best method must be the collection of its essence.

The above is the performance appraisal method I provided for you. I hope you like it!

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