1, financial indicators: income, profit, expenses, costs and operating cash flow;
2. Turnover indicators: inventory (materials, work in progress, finished products, sluggish products) and accounts receivable;
3. Quality indicators: incoming qualified rate, process qualified rate and customer return rate.
4. Service indicators: internal and external customer satisfaction, etc.
Of course, there are other decomposition methods, focusing on determining key performance indicators according to the actual situation of the company. The difficulty lies in the determination of index values and the application of assessment results, which may be counterproductive and fail to achieve the purpose of assessment. Our company has been pushing KPI assessment since the end of last year, and it is still a single-handed leader, which is still controversial and difficult. In a word: "difficult", without the attention and support of the company's top management, "more difficult"!
Correctly defining the meaning of performance management needs to start from the following aspects:
_ Explore the meaning of performance
_ Performance management is the carrier of enterprise strategy implementation.
_ Performance management is a tool to establish and strengthen corporate culture.
_ Performance management is an effective means to improve the management level of managers.
Ericsson has established a perfect performance evaluation system to effectively manage employees' performance. The system is based on two assumptions: first, most employees work hard for salary, and only by giving them higher returns will they care more about performance appraisal; Second, the performance evaluation process is a process of evaluating both employees and managers. Ericsson believes that employees are often confused by the following questions: What is the job content of my position? How much should the salary for this position be? How can I improve my work? Focusing on the above problems, the content of Ericsson's performance evaluation is mainly divided into two parts: results and performance factors. The final performance result is the weighted sum of the two evaluation results. Ericsson is convinced that fair performance evaluation of employees is conducive to the stability of the company's personnel.
Practice practice
Please do the following exercises:
1. According to your understanding of performance management, please give two examples of enterprises implementing performance management:
2. What has the enterprise gained from the implementation of performance management?
Skill point 2 How to correctly distinguish performance management from performance appraisal?
Exploration of performance management performance management distinguishes performance management from performance appraisal.
Applicable scenarios When you want to distinguish between performance management and performance appraisal accurately, check this skill.
7 skill description
For many enterprises, although it is about "performance management", the actual operation is often "performance appraisal". The confusion of these two concepts has become a big misunderstanding of enterprise performance management. In order to make performance management successful, it is necessary to trace the source and correct the wrong understanding.
1. The meaning and content of performance management
Effective performance management begins with the establishment of a people-oriented corporate culture, and determines individual work plans and goals in combination with employees' personal development plans and the company's overall strategic goals.
(1) Performance management is a process in which managers and employees coordinate their work objectives and how to achieve them and reach an understanding. In this process, the commitments reached by managers and employees must stipulate:
(1) Hope employees can achieve their work objectives;
(2) The influence of employees' job performance on achieving the company's goals;
(3) What is the standard to measure work performance?
④ How can employees and supervisors work together to improve and improve employees' performance?
⑤ Point out the obstacles encountered in performance management and seek ways to eliminate them.
(2) The procedures of performance management include: planning, consulting, evaluation and feedback. Repeat these four steps, and finally realize the performance improvement of the organization and employees. As shown on page 9:
① Performance management should be management first. Performance management is also a part of managers' daily management, which has no particularity and is not only the patent of human resources department.
② Performance management is a continuous communication process. Performance management is to reach an agreement through continuous communication between managers and employees.
③ Performance management not only pays attention to the work results, but also pays attention to the process of achieving the goals. The results are important, but the planning, coaching, evaluation and feedback in the process of performance management cycle must also be paid attention to.
2. The misunderstanding of performance management
First of all, we should correct common misconceptions in performance management:
Performance management is not:
(1) Simple task management;
(2) performance appraisal;
(3) A set of evaluation forms;
(4) In order to find employees' mistakes, we should strictly control employees, emphasize control and neglect management;
(5) It is only the work of the Human Resources Department;
(6) As a stick, forcing employees to work better or harder;
(7) Fill in the form only once a year;
(8) Only used when the performance is not ideal;
(9) It is used for salary increase and promotion, focusing on short-term and neglecting long-term;
(10) is a thing, not a person;
(1 1) Make plans, determine standards, emphasize plans and ignore implementation;
(12) Only pay for performance is adopted, emphasizing the results and ignoring the process;
(13) pay attention to the performance of managers, emphasize the high level and ignore the low level;
(14) Management is more important than participation.
3. The meaning and content of performance appraisal
Performance appraisal is an indispensable part of performance management, but not the whole. Performance appraisal is only a point of performance management.
(1) The ultimate goal of performance appraisal is to assess what employees have done for the company. This is the so-called result-oriented evaluation. It is not only the overall strategic goal of the company, but also the result of the goal.
(2) Performance appraisal should be based on the combination with employees' personal goals to evaluate the overall performance of the company.
(3) Performance appraisal helps employees find their own shortcomings and improve their performance under the guidance of managers.
(4) Performance appraisal should be regular and systematic.
(5) The results of performance appraisal can be used as the basis for motivation and development.
4. The difference between performance management and performance appraisal
As can be seen from the above discussion, performance appraisal is only a link and a means of performance management. Performance appraisal essentially reflects past performance, not future performance. Performance management pays more attention to the improvement of future performance and focuses on future development strategies.
The main differences between performance management and performance appraisal in the traditional sense are as follows:
Main differences between performance management and performance evaluation
Performance management performance evaluation
Management procedure human resource management procedure
Planned judgment
A complete management process, local links and means in the management process.
Solve the problem and settle accounts afterwards.
Focus on results, and process focuses on results.
Pay attention to information communication and performance improvement, and pay attention to judgment and evaluation.
Win-win situation
The whole process of accompanying management activities only appears in a specific period.
Pre-communication and post-evaluation commitment
Focus on future performance, focus on past performance.
Performance appraisal is only a means of performance management, which does not include the front-end implementation theory or the back-end development strategy. However, it should be reminded that too much neglect of the front end will make it difficult for employees to exert their enthusiasm, and the recognition of assessment standards is not high, which will lead to employees' resistance; If the back end is ignored too much, the evaluation may be ineffective and thankless.