Performance evaluation is the driving force for the sustainable development of enterprises

At the general manager's office meeting on May 21, 2020, general manager Mr. Wang Fenghua stated that in order to carry forward the spirit of "continuous hard work," companies must establish a sound performance evaluation system.

The scientific performance evaluation mechanism can motivate people's motives, unleash the energy or potential not released by employees themselves, and create more value. It also creates a platform for companies to select talents and attract external talents. The incentive effect of performance appraisal has many classic cases in ancient times. The "reward farming warfare" promoted by Shang Yang is the "performance evaluation" of the military and peasants by Qin State. Shang Yang's "performance appraisal system" only looks at contributions but not status and position. Regardless of seniority, this makes all soldiers, especially ordinary soldiers, serve the war under the stimulation of interests, and serve the country's frontier expansion. The transformation of Shangyang's "rewarded farming war" paved the way for the struggle from ordinary soldiers to nobles and even thousands of households and 10,000 households; it created historical stars such as Bai Qi, Meng Huang, Wang Jian; attracted Nengchen counselors such as Zhang Yi, Fan Ju, Li Si Attracted by Shang Yang's "performance appraisal system", talents from the Six Kingdoms "went westward into Qin", which also won Qin's "talent war." The Shangyang Reform was inherited by the monarchs of the Qin Kingdom in the past and became the institutional basis for the Qin Dynasty to destroy the Six Kingdoms, and ultimately won the great victory of "Unification of the World". From the perspective of modern management, Shang Yang's performance appraisal system is how to link a person's behavior change and performance with salary and benefits, with promotion channels, and with the selection and employment of personnel.

1. Establish scientific assessment indicators and assessment objectives

Whether the performance mechanism can be implemented smoothly and play an incentive role, the preliminary planning work is very important, and the preliminary research based on seeking truth from facts is also very important. Set of assessment index is mainly derived from the responsibility, the weights of assessment indexes and assessment should follow the principle of SMART, namely performance indicators must be specific, performance indicators must be measurable, performance indicators, performance indicators must be reached to have certain relevance with those responsibilities, evaluation cycle must have a clear deadline. When we design the assessment indicators of a certain position, we should choose the KPI key indicators of the position. The assessment indicators should not be too scattered and can be quantified with data. We should try to eliminate qualitative indicators, the purpose of which is to avoid the influence of human or emotional factors in the assessment process of qualitative indicators. The assessment objectives should be set around "management serves operation", and the individual objectives should serve the organizational objectives, while the organizational objectives of the subordinate units should serve the organizational objectives of the superior units. For example, departmental (business unit) goals should be decomposed from the annual overall budget of the enterprise, team goals from the department goals, and personal goals from team goals. In order to make the assessment goal setting more down-to-earth, so that employees can feel it with one jump and complete the task with small steps, in the early stage of the implementation of performance assessment, we can set the assessment goal on the actually achieved target value. For example, when designing the delivery target of logistics supervisor, if the actual delivery achievement rate in 2019 is 85%, then the delivery achievement rate in 2020 will be 85% as the qualified baseline, and the delivery achievement rate in 2020 will be only higher than 85%, and then there will be bonus or bonus.

The performance appraisal process should be rigorous

The performance appraisal process should follow the following principles: first, the fairness principle. If the performance appraisal violates the fairness principle, it is impossible to exert the positive incentive effect of performance appraisal. Second, strict principles. If the performance appraisal is not strict, it will become a mere formality, which not only cannot reflect the real performance of the organization and individuals, but also produces negative and negative consequences. Third, the performance appraisal should follow the objective principle. The performance appraisal should be based on the evaluation standards, grab data from the scientific nodes in the system, evaluate the objective evaluation data, and try to avoid the infiltration of subjectivity and emotional color. The results of performance appraisal shall follow the principle of openness and feedback. Making the results public allows the examinees to know their strengths and weaknesses. It also helps to prevent possible bias and errors in the performance appraisal process. The purpose of feedback of evaluation results to the examinee is to point out the direction of work improvement, and put forward the corresponding guiding opinions, but also play a certain role in education or warning.

Application of performance evaluation results

1. If the result of performance appraisal is not related to salary, welfare, promotion and post rating (including promotion and demotion), it will lose its incentive role. In terms of salary structure design, we should gradually increase the proportion of performance-based pay to 40-50%. By increasing the proportion of performance-based pay, we should highlight the "performance-oriented" corporate values and make employees understand that only high performance can bring high salary and benefits. Within the assessment cycle, employees who have achieved continuous excellence will be included in the job promotion survey list or listed in the talent pool of "Buttonwood tree", and their career planning will be formulated. Key training will be conducted according to the competency requirements of the new post. In terms of talent selection, we should do horse racing instead of judging each other. Performance evaluation will also be applied to job rating. Employees with good evaluation results will be promoted, while those with poor evaluation results will be demoted or even eliminated. As the position level is adjusted, the basic salary, housing treatment, living allowance and other salary benefits and year-end bonus of the employee are also different.

2.Performance improvement. Performance improvement is also the follow-up application of performance appraisal and the key link between performance appraisal and the next cycle of planning and goal setting. The purpose of performance appraisal is not only to determine the salary, reward and punishment, promotion or demotion of employees, but also the fundamental purpose of continuous improvement of employees' ability and performance, and the way to achieve this purpose is performance improvement. There are various forms of performance improvement, but the process can be roughly divided into the following steps: First, analyze the performance assessment results of employees to find out the problems existing in employee performance; Secondly, to solve the existing problems, formulate reasonable performance improvement plans and ensure their effective implementation; Thirdly, in the next stage of performance coaching, the performance improvement plan has been implemented to provide knowledge and skills as much as possible for the performance improvement of employees. In order to realize the guiding effect of performance appraisal results on work improvement, the appraisal cycle should be gradually realized from month to week and then to unit hour, so that employees can know their performance in each unit hour. And the establishment of a performance assessment early warning mechanism, when an employee fails to complete the task in a certain period of time, the system will send an early warning information to himself or his boss, so that we can timely understand the work status of each employee, timely supervision, timely correction, timely help employees to improve work efficiency.

Performance appraisal is the main goal of "management serves performance and management serves distribution". It is also the driving force for the sustainable development of enterprises. It can tap the potential abilities of employees and motivate them to strive towards their goals. I hope you can work together with the Human Resources Department to improve the performance appraisal program of all departments, teams and individuals, so that the performance appraisal can really play a positive role in motivation.