Analysis of performance management issues in power supply enterprises

Analysis of Performance Management Issues in Power Supply Enterprises

With the deepening of internal reforms of my country’s power supply enterprises and the increasingly fierce competition in the external market, performance management has become increasingly important in the development of power supply enterprises. The following is the detailed content I brought, please refer to it.

1. Current status of performance management of power supply enterprises

my country’s power system reform has generally gone through four stages of development: before 1985, the government and enterprises were integrated into a state-exclusive monopoly operation stage; from 1985 to In 1997, in order to solve the serious shortage of power supply, the power generation market was partially opened to encourage social investment; from 1997 to 2000, the National Electric Power Company was established as the focus of reform to solve the problem of integrating government and enterprises. The government's industry management functions will be transferred to the comprehensive economic department; starting in April 2002, the market-oriented reform stage will be aimed at introducing a competition mechanism and establishing an electricity market system with fair competition, openness, orderliness, and healthy development.

In April 2002, the State Council officially issued the "Electric Power System Reform Plan" (State Council Document No. 5), establishing the overall goals of the power system reform as: breaking monopoly, introducing competition, improving efficiency, reducing costs, Improve the electricity price mechanism, optimize resource allocation, promote electric power development, promote national interconnection, and build an electricity market system under government supervision that separates government and enterprises, fair competition, openness, orderliness, and healthy development. By the end of 2002, the regulatory changes and institutional innovations centered on "separating the power plant from the network, bidding for the Internet, and establishing a new electricity price formation mechanism" pushed power companies onto the market-oriented track, [1] and initially established a competitive and open regional power market. ?. Since then, the former State Electric Power Company has been split and reorganized, and eleven new companies (five major power generation groups, two major power grid companies, and four major power auxiliary industry groups) have been established. From the historical trajectory of this reform, we can clearly find that the main line of the reform is the gradual deepening of market-oriented reforms, the gradual establishment of government-enterprise relations, and the centralized resolution of outstanding contradictions that existed in different periods. [2]

2. Problem Analysis of Performance Management of Power Supply Enterprises

There are still many deep-seated problems in the performance management implemented by power supply enterprises, which are mainly summarized in the following aspects:

1. The performance management system is not established based on the requirements of the corporate development strategy

Corporate strategy is the company’s vision or expectation for future development. The establishment and operation of the enterprise performance management system must serve and obey the requirements of the enterprise strategy. However, the performance management carried out by some power supply companies is seriously out of touch with strategy implementation. Enterprises have less consideration for performance management at the strategic level. They have not established a performance management system based on their own operating conditions, market positioning, and development strategy requirements. They have focused too much on local development and secondary aspects, resulting in The direct consequence is that the department's performance goals are accomplished very well but the overall performance of the company is poor. The fundamental reason is the failure to establish a long-term mechanism for continuous performance improvement based on the company's development strategy.

As one of the strategy implementation tools, the performance management system, the ultimate implementation of the strategy is reflected in the fact that the goals can be broken down and implemented in various functional departments, business units and employees in each position, so that every employee can be committed to the enterprise. on the realization of strategic objectives. The performance goals of each department and each position are not obtained from the decomposition of the overall strategic goals, but are proposed based on their respective work contents. This will inevitably lead to a disconnect between performance management and the implementation of corporate strategies, and the work of departments and employees will not contribute to the realization of the company's strategic goals. to effective support, or even have a negative impact.

2. There are misunderstandings about performance management and performance appraisal

In fact, many power supply companies have not really established the concept of performance management and have no understanding of its role in corporate development. It is not enough:

(1) Thinking that performance management is only a matter for the human resources department of the enterprise, not realizing that performance management is first and foremost the responsibility of the enterprise management;

(2) Regarding performance management The understanding only stays at the level of performance appraisal. In a large number of corporate practices and theoretical discussions, performance management and performance appraisal are often confused. It is not uncommon to find articles titled performance management that are actually performance appraisals. Performance management comes from performance appraisal, which is an important part of performance management.

In fact, there are important differences between the two, see Table 1 for details:

Table 1 The difference between performance management and performance appraisal

Performance management and performance appraisal

The time dimension faces the future and faces the past

The integrity of the process is a closed PDCA cycle, a complete management process. The local links and means in the management process

The focus is on information communication and performance improvement, emphasizing pre-event communication, focusing on judgment and evaluation, and emphasizing post-event evaluation

It is obvious that performance management dynamically adapts to the strategic requirements of the enterprise, and has a complete management process to continuously improve performance to achieve the strategic goals of enterprise development; As a part of performance management, performance appraisal is a specific evaluation and control function used to maintain the normal work of the enterprise, that is, the process of discovering deviations and controlling deviations.

3. The habitual thinking of "emphasis on production and neglect of management" restricts the effective implementation of performance management

For a long time, the special nature of electric power production has determined the importance of safety production in electric power enterprises. occupies a very important position. Although the human resources system of power supply enterprises is gradually being improved, due to its technology-intensive characteristics and the long-term influence of "emphasis on production and neglect of management" thinking, the human resources management and employment mechanism of power supply enterprises still have great flaws. Mainly due to:

(1) Among the assessment indicators specified in the "Three Responsibility System Assessment and Management Interim Measures" of the former State Power Company, safety production indicators account for the largest proportion, so that companies and employees pay too much attention to safety. Production indicators do not take into account the importance of other indicators, which to a certain extent prevents enterprise performance management from being fully and effectively implemented smoothly;

(2) Because of its characteristics, power supply companies are recruiting and hiring employees At that time, most of them hired science and engineering students, technical secondary school students, etc.; middle and senior managers were mostly professional and technical talents. There were not many managers who had received good systematic management theory education. High-level, compound management talents Even less, the talent structure is relatively single, which has a negative impact on the emphasis, attention and continuous advancement of corporate performance management.

4. There are weak links in the process of promoting performance management.

Performance management is first and foremost management. The so-called management is the process of coordinating human, material and financial resources through planning, organization, control, motivation, leadership and other links in order to better achieve organizational goals. [6] In the entire performance management process, there are mainly the following weak links:

(1) Performance management is often considered to be the work of the human resources management department, and the top managers of the enterprise only give performance management General support does not really treat it as an important matter, resulting in the human resources department, the promoter of performance management, lacking execution capabilities;

(2) In the current performance appraisal, KPI Comprehensive use with BSC is relatively common. BSC (Balanced Scorecard) is currently a popular comprehensive evaluation system for corporate performance, but some companies use BSC in a rigid manner and copy the four indicators in BSC: finance, customers, internal operations, learning and innovation.

5. The synergy effect between the performance management system and other management systems is poor

Performance management is a dynamic system that unfolds in cycles, not only the links within the system but also the Interlocking and close connection also require the entire performance management system to interact with other systems. The value creation function of the performance management system is concentrated in the incremental output formed by synergy with other subsystems. Many power supply companies ignore the connection between performance management and all links and subsystems of enterprise management, such as the effective synergy with financial systems, marketing systems, etc. They believe that performance management is just scoring and filling in forms every year, resulting in unclear responsibilities and complicated processes. There are many forms, which increases costs and reduces efficiency. As a result, the value of the entire performance management system cannot be effectively reflected. ;