Performance Compensation Management of Huawei Company

Performance Compensation Management of Huawei Company

The purpose and principle of performance appraisal

1.

In order to build a huge team with high quality, high level and high unity, we should establish a self-motivation and self-restraint mechanism. The purpose of performance appraisal is not to complete KPI, but to improve the quality and ability of employees, which is what we really want to achieve.

2. Principles

Fairness, justice and openness. It depends on two things. First, the ability of managers. Can he do it? Second, is the performance appraisal system scientific enough?

System and content of performance appraisal

1. Content

Work attitude, work ability, work performance, personal adaptability and potential, management ability. Job performance is just one of them. Huawei's assessment of work performance, like Alibaba, only accounts for a part, but also depends on other soft parts, attitudes and abilities. These are soft management capabilities.

2. System

Realize the second-level assessment, that is, the direct superior carries out the first-level assessment, and the superior of the superior carries out the second-level assessment.

3. Huawei enterprise value chain

Huawei's assessment uses the Basic Law. In Huawei's basic law, the real concern is the enterprise value chain. Huawei's modern human resources system is based on the value chain, so is performance management.

① the source of value

Who created value? It is Huawei's army, and Huawei people have created value. So the first one involves recruitment and resource allocation.

② Value creation

The creation of work performance and the completion of goals.

③ Value evaluation

Finally, evaluate the value created by employees and the work completed. This is a performance appraisal.

④ Value distribution

After the assessment, benefits should be distributed according to employees' contributions.

4. Performance management system architecture

If performance management is successfully implemented, it should be a tool of strategic management. Huawei's strategy comes from the enterprise's vision and mission, which determines the company's long-term strategy and short-term strategy. After setting the strategic objectives of the enterprise, the KPI of the company, department and position can be decomposed.

According to the responsibility system of this organization, each level has different assessments, which is also a feature. The last four red boxes in the above picture are actually the process of performance management. On the left is the setting of performance goals, and above it is performance coaching. This is the process. Then there is the performance appraisal, which is the performance appraisal. The last one is the feedback to evaluate performance, that is, the interview.

Of course, after this round is completed, it is the application of performance results. Therefore, as can be seen from this picture, we should regard performance appraisal as a strategic converter, and we should also regard it as a cultural promoter. Finally, performance management is a very useful human resource tool.

Classification and grading evaluation system

Huawei is characterized by classified management and hierarchical performance management, which has three layers.

1. Middle and high level

Debriefing plus KPI, which is quarterly score and annual debriefing.

2. At the grassroots level

Evaluate with IPBC. In fact, when Huawei started its performance appraisal, IPBC mentioned IBM's system, which is called PBC, which means personal business commitment. So this is also a quarter, plus the annual evaluation.

3. Measure employees and new employees

Ordinary employees, especially those with measurement systems, are assessed monthly.

Advanced performance evaluation

1. Balanced Scorecard

Huawei is a very good learning company. At first, it studied IBM, then the balanced scorecard, and then it used the strategic decomposition tool of Harvard professor, which was mainly used in the debriefing of executives, because as executives, they should have the concept of strategic decomposition.

The balanced scorecard has four dimensions: finance, customers, learning and growth, and internal processes.

There is a logical relationship, that is, employees must be trained to learn and grow, so that employees can implement the company's internal processes well. Only companies with perfect internal processes can provide customers with satisfactory services, and what does satisfactory service ultimately bring? Financial results.

Therefore, it is a very good method to evaluate executives with the balanced scorecard. Each dimension will have some different indicators. As can be seen from the above figure, the financial dimensions are all KPIs about sales, profits and so on. Then on the left are customer satisfaction, internal and external customers, and there are various internal processes. Learning and growth mainly refers to employees' ability improvement, career development, corporate culture and so on.

2.KPI six index areas and decomposition

The balanced scorecard guides the thinking of Huawei KPI well. Therefore, Huawei divides KPI into six indicator areas. In fact, it is closely related to the balanced scorecard, even from the balanced scorecard.

3.KPI dictionary

According to the six fields of balanced scorecard and KPI, Huawei has requirements for KPI, and KPI must make such a dictionary, which is very accurate.

The index names are customer satisfaction and service customer satisfaction.

The definition of indicators explains what is satisfaction, that is, the user's satisfaction with the company's services. Its level is an important criterion to judge the service quality, which is calculated by the score and satisfaction weight of the third-party external satisfaction survey. This definition is very clear.

The purpose of setting up such a KPI is to improve service quality and measure customers' satisfaction with Huawei. It has a calculation formula, satisfaction × weight, and all satisfaction and weight add up. The statistical period is one year. The data comes from the Marketing Engineering Department.

4. Reference template for senior and middle-level debriefing

Just mentioned that the middle and high-level assessment is a debriefing plus KPI, and its debriefing has a template. The template here has eight requirements.

Doing debriefing means asking executives to tell the CEO how my work is done and how my KPI is completed. In fact, it is a requirement for the ability of executives, and it is also an opportunity to observe his leadership and observe his strategic ability.

Performance appraisal of middle and primary level

1. Performance appraisal principles for middle and junior employees

2. Basic Assessment Form

Analysis of the assessment form, first, it is quantitative indicators plus non-quantitative indicators, and the total * * * accounts for 70% in this form. The remaining work attitude and management behavior account for 30%. So the first part of this table, the quantitative target, has a weight of 40 and a score of 400.

The following are the key work objectives, which cannot be quantified, so non-quantitative assessment is adopted. Weight 60%, total score 600 points.

What is written here is an example. For example, the first part of KPI is recruitment. The goal is 90% and the weight is 15%. Because the weight is 15%, multiplying by 400 points is 60 points or full marks. There is an evaluation score ABCDE at the back, which means that you did the best in this KPI. If it reaches 100%, it will be 60 points, and if it reaches 75%, it will be 45 points.

It writes all the evaluation criteria. In the middle of the quarter, you need to list this standard. By the end of this quarter, you will be graded according to the results. You may end up with 60 or 45 points. Therefore, the combination of the two parts is a very good balance between quantization and non-quantization.

It is true that there is no way to quantify a lot of work at present, but we want to evaluate it. I think we might as well learn from Huawei, take quantification as a weight and add up non-quantification as another weight.

Application of performance appraisal results

What is the promotion ratio and salary increase corresponding to Huawei's annual assessment level?

1. level

The grade is ABCDE, from excellent to good to competent, basically competent and incompetent. This criterion is that you may get 100% bonus, 80% bonus and 60% and 50% bonus.

Step 2: Bonus

Of course, the bonus here is one month's basic salary, which is just an example. Maybe five months' basic salary. Because I hired a Huawei salesman before, he jumped ship and came to our company. He said that Huawei's bonus is very high, maybe five months' salary.

3. Proportion

The proportion here is compulsory distribution.

Get a promotion

Excellent people can be promoted to two levels, and ordinary employees can be promoted to one level. Of course, incompetent people have no chance of promotion.

Huawei's performance appraisal suggestions

Finally, Huawei's performance appraisal suggestions are actually suggestions for middle managers.

1. Follow corporate values

What are our corporate values? As a manager, we should reflect it in our daily work from our words and deeds.

2. Adhere to principles and seek truth from facts.

In the assessment, we must score according to the actual situation, data and cases.

3. Appraisers have the courage to take responsibility

You are a manager, you evaluate others, and you are responsible for your own scores.

4. Pay attention to communication and guidance in the assessment process.

Managers must have the skills of performance interview and the ability to coach employees, not just to complete their own work.

5. Keep learning and improve the quality of performance appraisal.

Now most managers are doing well, because they are doing well, so they are as busy as a bee. Because they are busy, they will ignore performance management and think that performance management is HR's business. In fact, performance management is what middle managers should do, and it is their daily management work.

6. Let employees realize the importance of personnel assessment.

This is the training and management for all employees. Every employee has the responsibility to actively participate in performance appraisal, set goals for himself and provide information for managers.

7. Provide complete information for the assessed as much as possible.

As a manager, it is your responsibility to provide information to employees. Why does a manager disappoint his subordinates? Subordinates may come to complain. Then show me the evidence. I failed the test. I have all records, including performance records of unqualified subordinates and behavior records of unqualified subordinates.

8. Adjust the work content in time according to the assessment results.

This adjustment may be a promotion, or it may be to transfer unqualified employees from this position. Let employees realize that his performance directly affects his career development, so that employees will pay attention. This aspect should be done in accordance with company policy.

Summary of Huawei's Performance Management Characteristics

Finally, summarizing the characteristics of Huawei's performance management is worth learning.

■ First of all, its stratification is very characteristic.

■ Then the debriefing method adopted by middle and senior managers is added to the balanced scorecard, and KPI is also used.

■ There is also an assessment method, which organically combines middle and primary quantitative indicators with non-quantitative indicators, and solves the problem that many non-quantitative indicators cannot be assessed.

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