How to implement a good performance appraisal scheme

Performance appraisal is an important part of modern enterprise human resource management system. It is an institutional system to evaluate employees' performance, morality, attitude and ability in the process of work, and it is an important basis for determining employees' salary, rewards and punishments, transfer and promotion. At the same time, performance appraisal is the main method for enterprises to improve employees' work efficiency and achieve work goals. Different industries, different enterprises and different stages of development have different performance systems and selected assessment methods.

Performance appraisal is indeed an important job of HR, because it involves the interests of employees. To choose an appropriate performance appraisal method, we must first have a correct understanding of the concept, significance and purpose of performance appraisal, then understand the common performance appraisal methods at present, and finally choose the appropriate method according to the development strategy and actual situation of the enterprise itself.

Purpose of performance evaluation

First, in order to improve the overall performance of the organization and realize the strategic objectives of the enterprise, this is also the most important purpose of performance appraisal. By establishing performance reward and punishment standards to motivate employees, the effectiveness of providing employees' work is realized, which creates the possibility of improving organizational performance. At the same time, performance appraisal also plays a guiding role in employees' behavior. When the organization's goals and strategies change, the performance appraisal standards of employees will also change.

The second is to strengthen communication within the organization. Through assessment, regular inspection of employees' performance and achievements, and timely feedback can promote communication, understanding and cooperation between employees and departments, help to form an efficient working atmosphere, help to transfer information and integrate feelings among members of organizations, and provide necessary information for scientific management decisions of enterprises.

The third is to help employees improve their work behavior and promote their own development. Through the objective and fair evaluation of employees' work performance, we can strengthen employees' sense of responsibility and goal orientation, and urge employees to continuously improve their work ability and achieve better performance. Feedback in the process of performance appraisal is to affirm what employees have done well, point out their weaknesses and deficiencies, reward those who have done well, and criticize and punish those who do not meet the requirements.

In the process of performance appraisal, what performance appraisal methods are there? How to choose an appropriate performance appraisal method? In years of theoretical research and practice, the author analyzed and summarized the following points:

Common performance evaluation methods

(1) forced distribution method. The forced distribution method classifies employees in groups according to the normal distribution law and the "28" principle. This technology requires managers to divide a certain proportion of employees into different categories, such as excellent, excellent, up to standard, in need of improvement, poor and so on.

(2) Behavior anchoring grade evaluation method. Behavior anchor rating evaluation method is a method to evaluate performance by establishing behavior anchors related to different performance levels. It collects a large number of key events that represent excellent and ineffective performance at work, and determines the performance level represented by each key event as the anchor standard of employee performance.

(3) Management by objectives. Management by objectives is a mature performance appraisal method. It is a management method to realize the business purpose of an enterprise through the setting and decomposition of goals, the inspection of the implementation and completion of goals, rewards and punishments, and the self-management of employees.

(4)360-degree performance appraisal system. The 360-degree performance appraisal system is conducted anonymously by superior leaders, subordinates, colleagues at the same level and external customers who are closely related to the appraisers. The leader in charge gives feedback to the appraisee according to the evaluation opinions and scores and the appraisee's self-evaluation, so as to help the appraisee improve his ability level and performance.

(5) Sequence comparison method. Sequential comparison method is a method to rank and evaluate employees' job performance. Before the assessment, we must first determine the assessment module. For example, we can set up a sales module for sales indicators, but we are not sure about the working standards to be achieved. All employees in the same position are compared in the same evaluation module. According to their working conditions, those with good jobs rank first and those with poor jobs rank last. Finally, add up the ranking figures of several modules of each employee, which is the assessment result of the employee. The smaller the total, the better the performance appraisal results.

(6)KPI key performance indicator method. The KPI key performance indicator method is based on the annual goal of the enterprise, and through the analysis of the performance characteristics of employees, it determines the key quantitative indicators reflecting the comprehensive performance of enterprises, departments and employees in a certain period, and conducts performance appraisal on this basis.

(7) Balanced scorecard. The balanced scorecard evaluates the enterprise from four angles: finance, customers, internal business processes and employee learning and growth, and gives different weights to each index according to the strategic requirements, so as to realize the comprehensive evaluation of the enterprise, enable managers to grasp and control the enterprise as a whole, and finally realize the strategic objectives of the enterprise.

How should enterprises choose?

Generally speaking, enterprises can consider the following aspects when choosing performance appraisal methods:

(1) From the characteristics of the performance appraisal method itself.

(2) consider the characteristics of different positions. Generally speaking, the job content of grass-roots posts is relatively stable, the job responsibilities are relatively simple, and the performance standards are relatively clear, which is suitable for assessment by target management method or compulsory distribution method.

(3) Performance appraisal considering operating costs. The cost of quantitative evaluation is usually higher than that of qualitative evaluation, but qualitative evaluation will increase management and operation costs and organization costs due to great distortion in the process of information transmission. In addition, the cost of performance appraisal is also related to the scale of the enterprise.

(4) Considering the present stage of the enterprise, the enterprise should choose the corresponding evaluation methods in different development stages. In the initial stage of an enterprise, the management is relatively extensive, so there is no need for performance appraisal at this time. In the growth period of enterprises, the expansion speed of enterprises is accelerated, the business objectives are clear, and a clear strategy is formed. At this time, around the strategic objectives of the enterprise, how to ensure the realization of the objectives by improving the work efficiency of all departments of the company is very necessary and increasingly prominent, and performance appraisal needs to be placed in an important position. It is suggested to adopt the management by objectives method-by decomposing the objectives into people, each employee can clearly define his performance objectives and put them into practical action to achieve the overall strategic objectives of the enterprise. In the mature period of an enterprise, the development speed slows down, but all businesses are mature and the external market is stable. After a perfect process, the performance appraisal has entered a mature state. At this time, KPI key performance indicator method is applied to extract key performance indicators from daily work, and the overall performance level of the enterprise is improved through the achievement of key performance indicators, which effectively promotes the development of the enterprise. In the recovery period of enterprises, through product technology innovation and human resources integration, enterprises enter a new round of growth period. At this time, the performance appraisal needs to adjust the thinking, innovate the performance appraisal method, improve the performance management system and adapt to the enterprise reform. We should also use the concept of performance appraisal and innovate and apply various performance appraisal methods according to the actual situation of enterprises.

In short, the existing performance appraisal methods have their own advantages and disadvantages, and enterprises should choose the appropriate performance appraisal method according to their own actual situation. Only in this way can we achieve the purpose of performance appraisal, comprehensively improve the performance level of enterprises and promote the healthy development of enterprises.