It is much easier to reward good employees than to deal with those whose performance is unsatisfactory. In order to maintain and develop the competitiveness of an enterprise, effectively managing underperforming employees may be even more important. For example, GE implements a strict ABC management method, stipulating that 10% of employees must fall into category C, and these individuals will be promoted.
**Performance Management Evaluation Methods**
Strictly speaking, the human resources department of a company, like other functional departments, provides support and service to enhance the operational efficiency of business units and manages the company's human resources policies. Clearly, the effectiveness of performance management goes beyond the scope of functions of the human resources department; its true responsibility lies with the CEO of the enterprise and all levels of management personnel. The role of the human resources department in the process of performance management is to undertake horizontal organization and coordination work in specific operations.
The choice of evaluation methods in a performance management system is a key and sensitive issue. In some mature companies, due to the formation of an excellent performance evaluation culture, methods such as vertical evaluation, horizontal evaluation, 360-degree evaluation, and self-evaluation can be freely applied. However, in a company just beginning to implement a performance management system, mechanically applying these methods can easily turn the evaluation process into a game between evaluators and evaluatees, or even become a form-filling exercise, failing to truly play the role of improving performance. It may also cause conflicts between employees and their supervisors, affecting the enthusiasm of employees at work. Therefore, the design of performance evaluation methods should carefully consider factors such as corporate culture and the quality of managers. Our suggestion is that the selection of evaluation methods should ensure full participation from employees and incorporate them into the performance communication process. The benefit of doing so is that employees already feel during communication that performance management is not adversarial towards them but rather a collaborative effort to improve work performance, thereby reducing employees' defensive psychology. At the same time, employees already understand their performance goals during communication and recognize the evaluation methods, so the evaluation is merely a summary of the work, and the evaluation results won't come as a surprise, allowing the evaluation process to take place in a harmonious and amicable atmosphere.
**Performance Management and Human Resources Management, Performance Management Evaluation Methods, Performance Management and Incentive Systems, Institutionalization and Managers' Responsibilities, Performance Management and Management Information Systems**
In the process of exploring the establishment of a performance management system, because performance management is closely related to the selection, cultivation, utilization, and retention phases of strategic human resource management, especially the "utilization" phase, many companies intuitively treat performance management as part of human resource management, assigning it to the human resources department. This practice creates many problems in practice, making performance management superficial and potentially leading to conflicts between departments and among employees. The root of the problem lies in the company's management equating performance management with performance appraisal. Performance appraisal is merely the evaluation of employee work outcomes and is only a part of performance management, not the whole. Performance management is the process by which a company translates strategy into action and is an important component of strategic management. Its deeper purpose is, based on the company's growth strategy, through continuous and dynamic communication between employees and their supervisors, to clarify employees' job responsibilities and performance objectives, determine measures for evaluating employee work outcomes, influence employee behavior in the process, thereby achieving the company's goals and enabling employee growth.
A performance management system must receive good support from an incentive system to fully function. However, performance should not only be linked to salary and bonuses, as this could make employees think that implementing performance management means raising or lowering wages. Incentive methods should be diversified, such as personal growth of employees, taking on more job responsibilities, obtaining promotions, and receiving public recognition and spiritual rewards. With the maturity and standardization of capital markets, stock options and other incentive methods can also be experimented with.
**Performance Management and Incentive Systems**
**Performance Management and Human Resources Management**
Competition is always the driving force behind changes in corporate governance. In the early stages of market economy development, the growth of most enterprises stemmed from the rapid increase in domestic consumer markets. As competition intensifies, the growth of enterprises will mainly depend on unique competitive advantages cultivated through efficient management systems and institutional structures. The effectiveness of performance management reflects the company's ability to execute strategies, drawing increasing attention from more and more managers. In our exchanges with companies, establishing an effective performance management system is often the aspect that most impresses entrepreneurs. In the practical process of helping clients establish performance management systems, we feel that the establishment, improvement, and growth of a company's performance management system requires handling well the relationships in the following areas.
This article is from: National Standard "Knowledge Management Framework" will undoubtedly promote the widespread application of knowledge management._1028