How to apply performance appraisal results to personnel rewards and punishments

The role of performance appraisal

1. Performance appraisal is the basis for personnel recruitment. Due to the implementation of a scientific evaluation system, comprehensive quantitative and qualitative assessments are conducted on employees' work, learning, growth, efficiency, training, development, etc., and the employment of employees is determined according to the standard requirements of the job description; < /p>

2. Performance appraisal is the basis for promotion and demotion of personnel. The basic basis for the assessment is the job description of the job. Whether the work performance meets the requirements of the position and whether it is qualified for promotion, or if it does not meet the requirements of the position, it should be demoted;

3. Performance appraisal is the basis of personnel training. in accordance with. Through performance appraisal, we can accurately grasp the weak links of the work and specifically understand the training needs of employees, so as to formulate practical and effective training plans;

4. Performance appraisal is to determine labor remuneration. basis. According to the requirements of the job description, the corresponding salary system requires that the salary be obtained according to the position, and the realization of the job goals is achieved by performance appraisal. Therefore, salary is determined based on performance, or performance is measured based on salary, so that the salary design is continuously improved and more in line with the needs of corporate operations;

5. Performance appraisal is a means of motivating personnel. Through performance appraisal, employee recruitment, job promotion and promotion, training and development, and labor compensation are combined to fully utilize the enterprise's incentive mechanism, which is conducive to the healthy development of the enterprise; at the same time, it is also convenient for the employees themselves to establish a psychological model of continuous self-motivation; < /p>

6. Link performance appraisal with future development. Whether it is for an enterprise or an individual employee, performance appraisal can make a timely and comprehensive evaluation of the actual work, making it easy to find weak links in the work, discover the gap with the actual requirements, and grasp the direction and trend of future development, in line with the times. The pace of progress is to keep pace with the times and maintain the sustainable development of the enterprise and the continuous progress of individuals.

The significance of performance appraisal

Performance management is an important part of modern human resources management, and performance appraisal is the most important part of performance management. This has formed *** knowledge. However, Chinese enterprises are faced with an embarrassing reality: on the one hand, enterprises realize the important value of performance appraisal; on the other hand, they do not know how to implement correct performance appraisal. On the one hand, we are well aware of the shortcomings of traditional personnel assessment, but on the other hand, we have to continue to use personnel assessment characterized by "morality, government, diligence and performance". The crux of the problem and the confusion of enterprises is that we cannot design a feasible performance appraisal indicator system.

1. Return performance appraisal to true performance

Performance appraisal is an evaluation of employee performance, so what is employee performance?

Performance is a concept with a broad meaning, and it has different meanings in different situations. From a literal point of view: "performance" refers to performance, that is, the results of employees' work; "efficiency" refers to efficiency, that is, employees' work process. That is to say:

Performance = result + process (behavior and quality to achieve excellent performance in the future)

Performance = what has been done (actual results) + what can be done (expected results)

It should be noted that performance appraisal is undoubtedly performance-oriented. But performance orientation does not mean only focusing on results. While focusing on results, it also focuses on the process of achieving these results, that is, the behavior and qualities of employees to achieve excellent performance in the future. Therefore, the performance here is the combination of past performance and future achievements. The sum of the behaviors and qualities that lead to high performance.

For an employee, his greatest contribution to the enterprise is performance, and only performance is the core element that supports the survival and development of the enterprise. The focus of traditional personnel appraisal is "people at work", and its value judgment is that people are costs; while the focus of modern performance appraisal is "people's work", and its value judgment is that people are resources. Therefore, the elements and indicators of performance appraisal must focus on true performance.

Of course, there are various elements related to employee performance. Performance appraisal does not require a comprehensive evaluation of all performance elements. Some elements can only be evaluated through other value evaluation systems (such as quality evaluation, qualifications evaluation, etc.) to complete. The applicable principle here is: on the premise of grasping the basic concept of performance appraisal, whatever is lacking should be tested; whatever one wants to gain, should be tested. Whatever you test, you will get. Key performance indicators are the successful ideas for implementing this principle.

2. Key performance indicator system

Key performance indicators (KPI) are the extraction and summary of key success factors in the operation of companies and organizations. Therefore, key performance indicators have the following characteristics:

1. Connect employees' work with the company's vision, strategy and departments, decompose it layer by layer, and support it at every level, so that each employee's personal performance and department performance are directly linked to the company's overall benefits.

2. Ensure that employees' performance is connected with the value of internal and external customers, and both serve to realize customer value.

3． The design of employee performance appraisal indicators is based on the company's development strategy and process, not the functions of the position.

Therefore, compared with general performance indicators, key performance indicators have more long-term strategic significance by linking personal and departmental goals with the success or failure of the company as a whole. Because the key performance indicator system focuses on measuring the behaviors we need, and because it is simple and clear, less but more precise, it becomes controllable and manageable. For employees, the key performance indicator system enables employees to act in accordance with performance measurement standards and reward standards, and truly plays the pulling and guiding role of performance appraisal indicators.

When designing key performance indicators, it must comply with the SMART principle:

First, the key performance indicators must be specific to ensure their clear traction.

Second, key performance indicators must be measurable and must have clear measurement indicators.

Third, the key performance indicators must be attainable (Attainable), and employees cannot be frustrated due to the inability to achieve the indicators, but this does not deny that they should be challenging;

Fourth, key performance indicators must be relevant and must be linked to the company's strategic goals, department tasks and job responsibilities.

Fifth, key performance indicators must be time-based, that is, they must have clear time requirements.

3. Design ideas for key performance indicators

The commonly used method for establishing a key performance indicator system is the "fishbone diagram" analysis method. The main steps include:

1. Determine the business focus of individuals or departments, and determine which individual or organizational factors interact with the company;

2. Determine the business standards for each position and define the key factors for success, that is, the strategic means required to meet business priorities;

3. Identify key performance indicators, the actual factors that determine whether a performance standard is met.

4. Decomposition and implementation of key performance indicators

Take marketing personnel as an example. To determine their key performance, we must first determine how the marketing department can achieve the company's strategy based on the company's strategic goals. The responsibilities and key success factors of the goals are then decomposed layer by layer to determine the key performance indicator system of each functional department and business department and related processes within the marketing department, and then decomposed into performance appraisal indicators for marketing personnel.

For example, if the company's strategic goal is to position itself as a world-leading enterprise, then the marketing department's key performance goal must be positioned at market leadership, and to achieve this goal, it must be world-leading in the following aspects Position: market image, marketing network and market share. The responsibilities of marketers determine that their key performance indicators should revolve around "market share."

From this we can determine that the key performance appraisal indicator system for a certain appraisal cycle of marketing personnel is:

1. Customer satisfaction (such as customer satisfaction improvement rate or customer complaint volume)

2. Sales orders (such as sales orders or sales order growth rate)

3. Payment recovery (such as payment recovery amount or payment recovery target completion rate)

4. Selling expenses (such as direct selling expense rate or direct selling expense reduction rate)

5. In addition to the contract error rate reduction rate

Based on the business status of the marketers, qualitative key performance indicators such as teamwork, market analysis, and customer relationships can also be added.

It should be added that by adding the "per capita gross profit of marketing system" indicator to the above key performance indicator system for marketing personnel, the personal key performance indicator system can be expanded into the organization's key performance indicator. The indicator system can form a key performance indicator system for organizational performance assessment for the marketing department.

For employees whose key performance indicators are difficult to quantify, such as human resource managers, administrative personnel, and financial personnel, the determination of key performance indicators is relatively difficult, but it is not impossible to achieve. The key performance appraisal indicator system for this type of personnel comes from:

First, the key responsibilities in the job responsibilities.

Second, contribution to superior performance goals (determined by top-down decomposition of company goals or department goals).

Third, contribution to the performance goals of relevant departments (from horizontal process analysis, determine its output to relevant processes).

Based on this principle, the key performance indicators of this type of personnel can be achieved by defining the work tasks or work requirements within the assessment cycle. As for their measurement indicators, they can be defined through time, from the essence Generally speaking, work tasks or work goals defined by time are also quantitative indicators. As long as we can clearly explain employees' work tasks or work goals and put forward clear time requirements, these key performance appraisal indicators will be operable.

Four. Support system for key performance indicator assessment

After the key performance assessment indicators are determined, whether these indicators can be used in performance assessment, and whether the performance assessment can produce the expected results also depends on whether the enterprise has established a complete set of Support system.

First, the support of performance-oriented corporate culture. Corporate culture is used to form core values ??that pursue excellent performance, corporate culture is used to constrain employee behavior, and a performance-oriented organizational atmosphere is established. At the same time, corporate culture is used to resolve contradictions and conflicts in the performance appraisal process. As GE's Welch said: "Our vitality curve works effectively because we spent ten years building a performance culture in our enterprise."

Second, managers at all levels assume the task of performance management. Managers at all levels should and must assume the responsibility for performance appraisal, and it is up to managers to break down and formulate key performance indicators, while the human resources department provides professional consulting and service functions in this process.

Third, ensure the institutionalization of performance communication. In the process of decomposing and formulating key performance indicators, institutionalized communication is an important part, because key performance indicators are not so much issued from the top down, but rather committed from the bottom up. Only in this way can Guaranteeing key performance indicators is challenging.

Fourth, design an incentive and constraint system for performance appraisal. The incentive system is mainly manifested in the linkage between performance appraisal results and value distribution. Practice shows that the tighter the link between the two, the more obvious the effect of performance appraisal. The constraint system mainly includes employee performance appraisal complaint mechanism, proportional control of appraisal grades, superior review and secondary appraisal system responsible for supervisors, etc. Only when these incentive systems and restraint systems are established and function effectively can performance appraisal with key performance indicators as the core truly play a role.