How to develop a performance appraisal and salary system that is more suitable for small and medium-sized enterprises

Performance Appraisal Methods

1. Graphic Rating Scale (GRS): It is one of the simplest and most commonly used performance appraisal techniques. Graphic Rating Scale is generally used. Fill out the scoring form. 2. Alternative Ranking Method (ARM): It is a more commonly used ranking assessment method. The principle is that it is much simpler and easier to select the best or worst performers in a group than to perform an absolute assessment of their performance. Therefore, the method of alternating sorting is to select and arrange the "best" and "worst" respectively, and then select the "second best" and "second worst", and so on until all the Until the persons being evaluated are completely arranged, the order of merit will be used as the result of the performance appraisal. Alternating sorting can also be performed using a performance ranking table. 3. Paired Comparison Method (PCM): It is a more detailed method of assessing performance levels through sorting. Its characteristic is that each assessment element must be compared and sorted between personnel, so that In each assessment factor, everyone was compared with everyone else, and all assesses were fully ranked in each factor. 4. Forced Distribution Method (FDM): The distribution ratio of performance levels is set before the assessment is conducted, and then the employee assessment results are arranged into the distribution structure. 5. Critical Incident Method (CIM): It is a method of performance appraisal of employees' performance levels through their key behaviors and behavioral results. Generally, supervisors evaluate the extraordinary performance of their subordinates at work. Excellent behavioral events or very bad behavioral events are recorded, and then an interview is conducted with the employee at the assessment time point (quarterly, or every six months), and the performance level is assessed based on the records and discussions. 6. Behaviorally Anchored Rating Scale (BARS): It is a method based on observing and assessing the work behavior of the appraisee to assess the performance level. 7. Management by Objectives (MBO): Management by Objectives is a more commonly used method in modern times. Managers usually emphasize profit, sales and costs, which are the result indicators that can bring results. Under the management by objectives method, each employee determines a number of specific indicators. These indicators are the key goals for the successful development of their work, and their completion can be used as the basis for evaluating employees. 8. Narrative method: When conducting assessments, use a written narrative to explain the facts, including what obvious results have been achieved in the past work, and what are the shortcomings and defects in the work. 9. 360° assessment method: During the assessment, the performance level is assessed through peer evaluation, superior evaluation, subordinate evaluation, customer evaluation and personal evaluation.

-------Performance Appraisal Plan

1. General Principles

In order to standardize the company's inspection and evaluation of employees, this system is specially formulated.

2. Assessment purposes

1. To create a high-quality, high-level talent team with high cohesion and team spirit in Tongfang. And form a team based on assessment A core-oriented talent management mechanism.

2. Evaluate employees’ work performance in the past period in a timely and fair manner, affirm achievements, identify problems, and prepare for performance improvement in the next stage of work.

3. Provide personnel information and decision-making basis for the formulation of career development plans for Tongfang's middle-level management and technical employees, employee remuneration (including adjustment of employee shareholding weight), and related education and training.

4. Transform personnel assessment into a management process and form a two-way communication platform between employees and the company to improve management efficiency.

3. Assessment Principles

1. Based on the company’s operating performance indicators and related management indicators for employees, as well as the objective facts in the actual work of employees;

2. Take the content, procedures and methods stipulated in the employee assessment system as the operating guidelines;

3. Take comprehensive, objective, fair, open and standardized assessment concepts as the core assessment concepts.

IV. Applicable objects

This system is mainly designed for the functional department personnel of Tongfang Company headquarters and professional and technical personnel in operation and management at or above the deputy general level of branches (deputy general level of branches) The following personnel shall be assessed by the branch company on its own with reference to the headquarters form). Personnel under the following circumstances are not included in the assessment:

1. During the probation period, employees who have not yet been regularized

2. Those who have been continuously absent for less than six months or have been on leave for more than six months before the assessment

3. Part-time and special staff

5. Various assessment time schedules

Assessment categories, assessment time, review time, assessment final time

Mid-year assessment from June 1st to 5th, June 5th to 8th, June 15th

Annual assessment from January 15th to 20th, January 21st to 23rd, January 25th

The regularization assessment is carried out according to the company's recruitment and deployment system

The promotion assessment is carried out according to the company's internal promotion system

Note: 1. The assessment time mainly refers to the time determined by each business Time for department and functional department heads to discuss performance, performance improvement plans, and new performance goals with their subordinates***

2. The personnel review time is mainly for the personnel decision-making committee to review controversial assessment results Investigate, understand and arbitrate employee complaints

3. The assessment finalization time is the time when the Human Resources Department summarizes the assessment results and files the new performance targets.

4. The annual assessment is the company's assessment of the annual work performance of all (formal) employees. The mid-year assessment is an assessment of the two categories of personnel whose annual assessment scores are "to be improved" and "in urgent need of improvement".

6. Assessment System

The assessment system adopts a system in which direct supervisors evaluate subordinates and department supervisors re-evaluate. The Human Resources Department has the functions of policy and system consultation, implementation supervision, and grievance investigation for employee assessment. The Personnel Decision-making Committee (composed of the company's president, executive vice president, relevant vice presidents, general manager of the human resources department and relevant department heads) is the final arbitration body for Tongfang's employee assessment policies. The specific authority is shown in the table below:

Initial evaluation of assessment objects (after employee self-evaluation) Summary department review

Deputy general manager of the branch, general manager of relevant functions, vice president in charge of the human resources department

Chief engineer of the branch, general manager of the branch, vice president in charge of the human resources department

General manager of the branch, vice president in charge of the human resources department, corporate management department, and finance department, human resources department, and relevant vice presidents President, company president

Functional deputy general manager, functional general manager, vice president in charge of human resources department

Initial evaluation of assessment objects (after employee self-evaluation) Summary department review

Functional general manager, employee self-evaluation, vice president in charge of human resources department

Appraisal of personnel below branch deputy general manager

Department manager level supervisor, deputy general manager, branch HR general manager, related functions General Manager

Department staff’s direct supervisor shall be rated and approved by the company’s indirect supervisor of human resources

Technical personnel and technical supervisor shall be rated and approved by the company’s indirect supervisor of human resources

Note: For branch vice presidents For personnel below the manager level, employees will self-evaluate first, then be re-evaluated by their direct supervisor, and the employee’s indirect supervisor (two levels higher than the employee) will finally approve.

7. Assessment standards

Personnel assessment cannot use unified standards to evaluate candidates for different positions, especially for high-tech companies like Tongfang. Tongfang's core concept in designing assessment standards is hierarchical and classified assessment (employees) and objective evaluation of the past with an eye on the future. The company divides employees into three levels based on their operational responsibilities. The human resources department at the headquarters specially designs assessment standards and scales for the company's middle-level and above cadres. Secondly, based on the characteristics of Tongfang High-tech Company, employees are divided into management and technical categories. Business type, and specially designed assessment standards and scales.

The company’s assessment standards are mainly based on three aspects: business performance, work attitude, and job ability. Employees in different departments have different weights of assessment standards, as follows:

Chart of the assessment weight ratio of various types of employees:

Assessment project position category: operation management category, functional management category, technology category

Performance appraisal accounts for about 70%, 50%, 40%

Ability assessment accounts for approximately 15% 30% 30%

Attitude assessment accounts for approximately 15% 20% 30%

Total employee assessment score = performance score + ability score + attitude score

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8. Assessment form

1. The assessment form is classified according to the nature of the work, and is divided into three types: operation management type and functional management type R&D technology type. Each category is further divided into supervisor and For non-supervisors, the Human Resources Department and relevant departments will research and design a unified form. The Human Resources Department has formulated a certain universal scoring reference table for assessment indicators. Each department can adjust the assessment factors and key points according to the actual situation of the department. However, the assessment structure and key points cannot be adjusted without authorization without consultation with the Human Resources Department. Element assignment.

2. The year-end assessment results are stored in employees’ personal files by the Human Resources Department. No other personnel, except the personnel decision-making committee and the general managers of each department, are allowed to review them.

9. Assessment and evaluation

1. Grading of assessment results:

All types of assessment results are classified as "Excellent" based on the total employee assessment score. , "Excellent", "Medium", "To be improved" and "In urgent need of improvement", five levels are defined as follows:

Level: Extraordinary, Excellent, Medium, Need to be improved, Urgent need to improve

Assessment The total score is 95 points or more, 85-95 points, 70-84 points, 50-69 points, 50 points or less

2. Assessment grade proportional control:

To reduce the subjectivity and psychological errors of assessment (Halo effect, contrast effect, averaging, etc.), the assessment results are subject to department (branch) proportional control after ex-rights processing. When each department and branch reports the assessment results to the Human Resources Department, the following proportions will be used:

The number of outstanding people: no more than 5% of the total number of employees in the department (branch)

The number of outstanding people: no more than 15% of the total number of employees in the department (branch)

Medium number of people: accounting for 65% of the total number of employees in this department (branch)

Number of people to be increased: approximately 10% of total number of employees in this department (branch)

Urgent number of people to be increased: approximately 5% of the total number of employees in this department (branch)

Note: Those who are listed as extremely outstanding or in urgent need of improvement must provide specific factual basis at the same time

10. Assessment procedures

General operating procedures for assessment:

1. Employee self-evaluation: According to the "Appraisal Authority Table", employees select the appropriate assessment scale for self-evaluation

2. Direct Supervisor review: The direct supervisor reviews the employee's performance.

3. Indirect supervisor review: The indirect supervisor (level two above the employee) evaluates the assessment results and makes the final determination.

Additional suggestions:

When there is a large gap between the direct supervisor’s desired score and the employee’s self-rated score, or even across grades:

1. The direct supervisor should Let employees evaluate themselves again based on the principle of objectivity

2. If the employee’s self-evaluation score changes little, the direct supervisor can conduct a re-evaluation and explain the situation to the employee’s indirect supervisor

< p>3. When there is a grade difference between the employee’s self-evaluation score and the direct supervisor’s score, it is recommended that the supervisor conduct an interview with the employee and complete the “Performance Interview Form”

When the employee’s final assessment score is classified into When "urgent improvement" or "excellent"

1. It is recommended that the employee's supervisor conduct an interview with the employee and complete the "Performance Interview Form"

2. If necessary, additional Attached are specific factual statements as supplementary materials to the assessment results.

11. Assessment appeals

1. Assessment appeals are special procedures set up to improve the assessment system and make the assessment process truly open, fair and reasonable.

2. If subordinates have any objections after discussing the assessment content and results with their direct supervisors, they can first file a complaint with the department head, who will coordinate; if they still have objections after coordination, they can appeal to the human resources department The decision-making committee files a complaint, and the human resources department specialist conducts investigation and coordination.

3. When assessing appeals, specific factual basis must be provided.

12. Assessment, Rewards and Punishments

1. The company links the assessment results with job allowances, and adjusts employees’ job salaries based on their annual assessment results. The adjustment principles are as follows:

①Excellent employees: In principle, the job allowance will be increased by one level

②Excellent employees: The job allowance will not be adjusted. When the opportunity is appropriate, job promotions can be made

< p>③Mid-level employees: There will be no adjustment to the position allowance.

④For employees to be improved: There will be no adjustment to the position allowance, but they will be included in the mid-year assessment.

⑤ There is an urgent need to improve employees: job allowances are lowered by one level and listed as mid-year assessment targets.

2. Treatment of employees whose annual assessment is "to be improved"

① Position allowances will not be adjusted temporarily, and promotion will not be processed before the mid-year assessment

② If the mid-year assessment is again rated as "to be improved", the post allowance will be lowered by one level. If the grade is above "to be improved", the post allowance will not be adjusted, and promotion can be processed according to normal procedures.

③ If the mid-year assessment is again rated as “needs improvement” and the second annual assessment is again rated as “needs improvement”, the company will terminate the employment relationship with the employee.

3. Treatment of employees whose annual assessment is in the “urgent need of improvement” category

① The employee’s position allowance will be lowered by one level after the annual assessment.

② At the same time, if the employment contract between the company and the employee expires before the mid-year assessment, the company will no longer employ the employee after the employment period expires. During this period, the employee's position allowance will be reduced by one level accordingly

③ If the employment contract between the company and the employee has not expired during the mid-year assessment, the employee will be subject to a mid-year assessment. If the employee is still rated as "To be improved" or "in urgent need of improvement", the company will terminate the employment relationship with the employee; if rated as "medium" or above, the company will continue to employ the employee, but the position allowance will not be adjusted before the start of the second annual assessment.

13. Supplementary Provisions

1. The right to interpret this system belongs to the Human Resources Department.

2. The final decision-making, modification and abolition rights of this system belong to the Personnel Decision-making Committee.