The reason for bargaining is that, in a narrow sense, people think that this is a way to deduct money in disguise.
Everyone knows the "28 Law". The theoretical basis of KPI is "28 principle", which is an economic principle put forward by Italian economist Pareto. It is very effective to realize the strategy through the top-down decomposition of KPI, and there are also many successful cases.
I am not HR, and from the perspective of an outsider, it is difficult to implement KPI for the following reasons:
1. At the early stage of the company's development, there was no complete management system, and the performance appraisal indicators were formalized, so it was assessed for the sake of assessment.
2. With the rapid development of the company, personnel shortage, recruitment difficulties, complex performance management, or out of touch with management, it is difficult to implement KPI assessment. Even if it can be implemented, it may not be good for the company's development.
3. Company personnel have a misunderstanding about performance management, thinking that performance management is to deduct money, which will lead to instability and high turnover.
4. The grading is random, and there are psychological factors such as hello, I am good and everyone is good, so the assessment is useless.
When the company develops to a certain stage, some people say that KPI performance appraisal is inevitable, but it cannot be copied. There should be ways and means suitable for your own enterprise management mode, a gradual process and a smooth transition.
With the development of the information age, the way of performance management is also changing. Just like financial management, simple financial accountants will be eliminated in the next 5- 10 and replaced by financial BP transformation. So will there be better performance management to replace KPI management in the near future? Some people say that KPI is out of date and KSF will become the mainstream in the future. I'm not HR, and I don't know much.
Recently, I listened to Professor Fan Deng's "OKR working method" again and consulted some other materials. I think OKR working method and KSF management tools have modern management ideas and concepts. The following figure clearly illustrates the role of OKR and KSF (network diagram).
Why do more and more enterprises begin to adopt KSF salary full performance incentive model? I'm not HR, but I really want to learn. The following content comes from the network.
The principle of KSF thinking is:
1, KSF is not reduced, but increased, because salary increase is the general trend.
2.KSF advocates increasing wages without increasing costs, but digesting costs by promoting employee value-added.
3.KSF believes that assessment is the second and motivation is the first, because without motivation, employees will not be motivated and assessment will lose people's hearts.
4.KSF strives for the balance between enterprises and employees and the win-win interests, and forms a community of interests.
5. KSF integrates objectives with budget, salary and performance to form a complete performance incentive system.
The difference between KPI and KSF:
1, KPI is the key performance indicator and KSF is the key success factor;
2.KPI reflects comprehensive performance and KSF reflects success factors;
3.KPI is used for performance evaluation and improvement, and KSF is used to measure core value results;
4.KPI can be linked to employee promotion, target management and special incentives, and KSF can be directly linked to employee compensation system;
5.KPI is used for performance management of Xinghe, and KSF is used for value and distribution management.
Why should SMEs give up KPI?
1, KPI is not a profit distribution model. KPI is only an assessment and measurement tool, and it has no incentive function. Although it can be barely linked with incentives, due to design restrictions, the scope of association is small, the intensity is obviously insufficient, and the effect is not ideal.
2. The operation of 2.KPI needs complete data, perfect process and complete culture as support, and it also has high technical requirements for planning and design. Small and medium-sized enterprises do not have these conditions, so it is very difficult to operate.
3.KPI focuses on the balanced development in the medium and long term, which has certain value for the continuous optimization of enterprise performance. But small and medium-sized enterprises pay more attention to short-term effects.
4, KPI has a certain degree of professionalism, and it must be fully mastered to operate normally. In addition to human resource managers, other middle and senior managers should also learn to master it, but such a requirement is difficult to achieve in small and medium-sized enterprises.
5.KPI model has the following natural limitations and defects:
Pay more attention to the result than the process, but how to produce good results without a good process.
1, the essence of which is target management and control, lacks systematic and encouraging performance improvement.
2. The weight scoring model shows that KPI model is more suitable as an evaluation method, and it is difficult to apply it to benefit distribution.
3. The systematization of internal processes is very demanding, otherwise it will not play its normal value.
Summary:
The current popular KPI performance appraisal model is actually more suitable as an evaluation tool. Therefore, the traditional practice of linking KPI with local salary has certain positive value through some floating and incentive methods, but it is of little significance. The motivation for continuous improvement is insufficient and the success rate is very limited. Most of them are mere formality or easy to give up halfway.
Compared with the traditional salary performance model, what is the value of KSF to enterprises?
1, employees have a sense of security and motivation, employees are easy to accept, and work hard for themselves!
We allocate 40%-80% of employees' fixed salary to KSF salary and allocate it to 6-8 indicators, instead of deducting employees' salary, we give employees a raise. On each K indicator, employees can get this part of their salary as long as they reach the balance point, and the balance point will generally choose the average value of one year.
For example, if the average annual monthly sales of an enterprise is 200,000, then the K-index balance point of the sales manager is set to 200,000, and it is not difficult to reach the average level every month, right?
If you exceed it, you will be rewarded. On the premise of ensuring safety, employees can get more by fighting together. Which is more acceptable than KPI?
2, enterprise management risk transfer, improve human efficiency, increase efficiency.
For enterprises, the fixed salary of employees will be reduced, and the operating pressure will definitely be much less. The premise for employees to get high salary must be to make high value and high performance.
The more employees get, the better the enterprise benefits.
3. Employees work spontaneously and work hard for themselves.
Under the broadband salary model, the premise for employees to get high salary is to make good performance. The boss doesn't have to stare at employees all the time, and employees will work spontaneously for their own income instead of kicking around.
No matter what management method is used, Drucker, a master of management, said: management is assessment. Without performance appraisal, there is no management. Whether it is KPI, OKR or KSF, the purpose is to improve the management efficiency of the company and achieve management goals. Only the performance management suitable for your own enterprise is the best management method.