Principles of performance appraisal

On December 8, 2020, at the general manager's office meeting, Mr. Wang Fenghua, general manager, elaborated that the design of performance indicators, objectives and weights should conform to the following principles: performance appraisal should conform to the historical trend; performance appraisal should be able to stimulate positive motivation; performance appraisal should be controllable; and performance appraisal should focus on improving customer satisfaction

First, Performance appraisal should conform to the historical trend

In the past two days, through consulting the performance appraisal data in ERP system, we found that our performance appraisal target setting does not conform to the trend of modern enterprise management. For example, the assessment target for the product delivery cycle of the person in charge of the logistics department is 90 days, while the manufacturing cycle of the plastic frame of Huahong, a benchmark enterprise in the glasses industry, has been realized within 10 days, and the manufacturing cycle of the plate frame is also controlled within 20 days. The product delivery cycle required by customers in domestic market is generally about 45 days. If we still use the target of 90 days a decade ago to assess the person in charge of the logistics department, we will not be able to meet the needs of our customers, nor will we be in line with the historical trend. Contemporary enterprises pursue "fast mode", that is, more money, less quantity and faster speed. Performance appraisal is an effective management mechanism to measure the performance and motivate employees, and it is also an important support to improve the competitiveness of enterprises. Therefore, we should keep pace with the pace of the times when setting assessment objectives

Second, Performance appraisal should be able to stimulate positive motivation

Performance appraisal objectives cannot be set too high or too low. If the target of performance appraisal is too high, no matter how hard the employees try, they can't achieve the goal. Finally, the examinee will lose confidence and lose the significance of assessment. If the goal is set too low, the staff can achieve it without effort, and the staff will not pay attention to the assessment index. The setting of performance appraisal objectives should stimulate positive motivation in the following two aspects: on the one hand, the setting of performance appraisal objectives should conform to the value orientation of enterprises. For example, the target of the output achievement rate of the production department is 95%, that is to say, if the monthly output target of a production department is 200000, only 190000 payments can be scored fully. The design of this target is not in line with the value orientation of our enterprise. As early as 2018, the company implemented the "daily cleaning and daily finishing" project, which requires that the tasks of the day be completed on the same day, the work of the day must be completed on the same day, and the output of that day must be achieved by 100%. If the output achievement rate target of monthly assessment is set at 95%, is it not contrary to the value orientation of our company? So how to motivate employees? On the other hand, the goal setting of performance appraisal should stimulate the motivation of continuous improvement and promotion of the team. For example, the target of delivery rate of material procurement has been set at 90% since 2018. Three years later, if we still evaluate the purchasing staff with the target of 90%, we can't stimulate the continuous improvement and promotion power of the logistics team. In terms of performance target setting, we should follow the "monkey picking banana principle", that is, "jump to reach, do not jump to reach". In short, performance objectives should play a role in stimulating positive kinetic energy

Three, Performance appraisal should be controllable

In the planning of performance appraisal, the controllability of performance appraisal index should be considered. For the examinee, the assessment index should be within the scope of his / her duties, which is closely related to his / her work content, or his / her performance can be improved through his / her efforts. For example, the management of finished products in the production line can assess the manufacturing time of finished products, rather than the lead time of products. Because the delivery time includes business order time, procurement time, semi-finished product manufacturing time, commission time, finished product manufacturing time, etc. In so many segmented periods, the management of finished products on the production line can only control the period from the material (including the mantissa) to the warehousing of finished products. As for other segmented periods, no matter how hard the management of finished products on the production line can help the results. For the same index may require the joint efforts of multiple departments to change its results, we should determine the assessment weight of each department according to the size of the influencing factors. For example, the output achievement rate is mainly determined by two factors: one is the matching quantity of materials, and the other is whether the production department is required to complete the task 100% on a daily basis. In the past few years, we only examined the production manager and workshop management. Later, we found that one of the main reasons for the low yield achievement rate was the lack of matching materials. At this time, we should adjust the assessment index, including the yield achievement rate into the assessment items of the material controller, and the weight of the assessment should be high, and the assessment weight of the production department should be reduced. Generally speaking, the index with high degree of control of the examinee is of great importance. If other departments or personnel have great influence factors, the assessment right is low. Of course, the design of evaluation index and evaluation weight should be based on job analysis, which is the basis of performance evaluation index and weight design. As a planner of performance appraisal, we should make a comprehensive analysis according to the purpose of assessment, the work content and nature of the object to be assessed and the conditions for completing these work, so as to understand the objectives and working methods of the examinee, and finally determine the elements and indicators of performance appraisal

Four, Performance appraisal should focus on improving customer satisfaction

From the strategic level, performance appraisal should effectively support the company's strategy. From the tactical level, performance appraisal should focus on serving customers. Whether the performance appraisal can realize the strategic orientation is actually realized through the design of the strategic oriented performance indicators. When the key performance indicators constitute an effective part or support system of the company's strategic objectives, they measure the realization of the company's strategic objectives. If the key performance indicators are separated from the company's strategic objectives, what they measure will be different from the realization of the company's strategic objectives. Key performance indicators are the further refinement and development of the company's strategic objectives. For service customers, if customers are not satisfied, the company can not achieve good performance. For example, if the product delivery period required by customers is 75 days, then our assessment period should be less than 75 days. If the number of customer quality complaints is more, then we should include the customer complaint indicators into the assessment items of quality management related personnel. Therefore, the design of performance evaluation indicators and objectives must focus on serving customers well and improving customer satisfaction

Performance appraisal is an advanced management tool in modern enterprises. It can evaluate the performance of a person or a department, and it also plays a supporting role in the realization of enterprise strategy. We should not only conform to the historical trend, but also play a positive role in encouraging and taking into account the controllability of the examinees. At the same time, we should also focus on improving customer satisfaction.