What are the key elements of performance management?

What are the key elements of performance management?

Performance appraisal is essentially a process management, not just an assessment of results. So what are the key elements of performance management? Let's have a look!

Indicators, the process of constantly urging employees to achieve and complete, and effective performance appraisal can help enterprises achieve their goals.

The concept of performance management has penetrated into modern enterprise management. If the performance management of any enterprise still stays at the end of the year and sends an appraisal form, the employees fill it out and write it themselves, and then submit it to their superiors for grading, it will be too backward. Whether implementing performance management tools such as management by objectives (MBO), key indicator performance management (KPI) or balanced scorecard (BSC); Whether it is organizational performance or individual performance of employees, performance management is a cyclical management process. From the formulation of performance goals and personal development plans at the beginning of the year, to the revision of performance plans in the middle of the year, and then to the performance evaluation at the end of the year, performance counseling and communication run through, and the application of performance results is long-term. Therefore, if performance management really plays its role in promoting the realization of enterprise development strategic goals, it must do a good job in several key links such as performance goal formulation, performance counseling, performance evaluation and performance result application. At present, there are several common problems in enterprise performance management:

1. Performance targets are difficult to quantify.

The importance of performance goals is self-evident. Only when the performance targets are quantified can the performance appraisal be truly justified. The results of performance appraisal should be convincing, have "gold content" and play a long-term role. The appraisal object must be a quantified performance target. But in practice, it is not easy to quantify every goal. Some targets are quantitative, such as output targets, budget completion, economic added value (EVA) and so on. Some indicators are difficult to quantify, such as institutionalized construction, staff training, information work and so on.

2. Performance management lacks two-way communication.

Performance management is not one-way, nor is it simple for a superior to manage a subordinate or a subordinate to report to a superior. Two-way communication must run through the whole performance management process. Whether there is communication and consistency between superiors and subordinates when setting performance goals; In the process of achieving the performance target, whether the superior gave the subordinate the necessary guidance, and whether the subordinate reported to the superior in time to jointly modify the performance target when encountering force majeure; In performance appraisal, how to conduct performance interview is the key. However, in practice, there is little formal or informal communication about performance management.

3. The performance appraisal procedure is not perfect

Designing performance evaluation procedures is the key point of performance management. Whether the performance appraisal procedure is perfect or not is directly related to whether the performance appraisal results are fair or not. The common performance appraisal procedure is two-dimensional appraisal, namely self-evaluation and superior evaluation. However, this assessment procedure can not fully reflect the performance situation, and it is difficult to ensure the fairness and justice of performance assessment.

4. Not making full use of performance appraisal results

The year-end award can be linked to the performance appraisal results first. However, the application of performance appraisal results goes far beyond this. The results of performance appraisal can be used as a yardstick for salary adjustment, an important reference for cadre selection, an important source of employee training needs, and even as a "stone" in the process of employee career development.

Today, the concept of "realizing the common development of enterprises and employees" has been paid more and more attention, and performance management will play an increasingly important role. How to improve the key link of performance management has become a new challenge for human resource management. The first is the quantification of indicators. After careful analysis, in fact, most indicators can still be quantified.

Secondly, we should vigorously promote performance communication. Managers at all levels should learn how to communicate effectively. Performance communication can be formal or informal. Formal performance communication should be conducted in a quiet and undisturbed place in a constructive way. To avoid the unilateral manipulation of conversation by superiors, we should take measurable facts as the basis in the communication process and avoid subjective, unfounded assumptions or vague evaluation and description.

Third, introduce peer evaluation or third-party evaluation into performance appraisal procedures. In the balanced scorecard, there is a dimension called "customer index". In marketing enterprises, the definition of customers is naturally the marketing object. In non-marketing enterprises, customers can be extended to "internal customers". The so-called "internal customers" actually means that in the process of enterprise operation, various functional departments need to support each other and serve each other. For example, the internal customers of the human resources department are all functional departments. The needs of functional departments include employee recruitment, training and salary adjustment. In the process of work, the human resources department should not only stand at the height of realizing the company's development goals, but also provide strong support and guarantee for the company's development from the aspects of talents and organization. We should also carry out various human resource management work with the mentality of "serving customers". The concept of "internal customer" can be introduced not only into the comprehensive management department, but also into the main business departments. For example, oil and gas exploration is the joint action of exploration departments, drilling and completion departments and other functional departments. The exploration department puts forward well location objectives, and the drilling and completion department is responsible for drilling and completion operations. In this work, the exploration department is the "internal customer" of the drilling and completion department. Generally speaking, the drilling and completion department should realize "playing wherever it refers". However, in the process of drilling and completion, the drilling and completion department cannot do without the support of the Commercial Contract Department, the Planning and Finance Department and other departments. At this time, the drilling and completion department has become an internal customer of the Commercial Contract Department and the Planning and Finance Department. This is true in the process of organizational performance management, and it is also true in the process of employee personal performance management. Taking human resource management as an example, the working relationship among personnel post, salary post, training post, recruitment post and labor contract post is inseparable. When formulating training requirements, the personnel post may be an internal customer of the training post. In order to select and train cadres, personnel posts can put forward targeted training needs to training posts. With the concept of "internal customers", it is very clear which departments or colleagues can be evaluated as the third party in the performance appraisal process.

Finally, we should make full use of the results of performance appraisal. The results of performance appraisal can be widely used in human resource management. First, it is directly linked to this year's benefit award; Second, it is linked to personal salary and post adjustment; The third is linked to the selection and appointment of cadres; Third, it is linked to the labor contract management, which can clearly stipulate that the person in charge of the department or unit whose performance appraisal is unqualified (or incompetent) shall be put forward by the human resources department for improvement measures or job adjustment. After training or job adjustment, the company may terminate the labor contract with it; Fourth, it is linked with staff training: excellent employees can enjoy a certain amount of funding.

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