a performance plan is an appraisal plan, which constrains, draws and measures the work performance results of the appraised object by setting appraisal indicators and corresponding target values for a certain period. If a sales representative is assessed monthly, the assessment index is sales, of which the target value of sales in the current month is 1 million.
performance guidance refers to timely statistics, problem analysis, improvement suggestions or improvement support for the actual achievement of the performance indicators of the assessed object. Suppose that a marketing director's "expense rate control" index is assessed every quarter, and the calculation formula of the index is "(marketing expense+management expense)/sales revenue", and the target value is 1%. If the director's expense rate is 2% in a certain quarter, it is found that the management expense exceeds the standard through index analysis, and further analysis shows that the director has no control over the establishment of the marketing team, then we can improve the expense rate by fixing posts and staffing the marketing team.
performance evaluation refers to measuring the appraisal score of the appraised object according to the actual achievement of each index of the appraised object and the corresponding scoring standard. For example, there are four appraisal indicators for a human resource manager, namely, on-time completion rate of employment demand sheet (accounting for 3 points), company skill compliance rate (accounting for 3 points), salary expense rate control (accounting for 2 points) and company system process construction (accounting for 2 points). After the actual value of each appraisal indicator comes out, the human resource manager's is calculated according to the scoring standards of each indicator.
performance reward refers to determining the promotion, demotion, bonus and fine of the assessed object according to the score of performance evaluation. For example, the assessment score is used to distribute bonuses-"actual bonus = target bonus * actual assessment score/assessment standard score (usually 1 points)", and for example, the assessment score is used to determine the promotion and demotion of personnel-"A sales representative has scored more than 9 points for three consecutive months and will be promoted to the next level; If the assessment score is less than 6 points for three consecutive months and the monthly sales completion rate is less than 8%, it will be eliminated directly. "
Although the whole performance management system is only four simple links: performance plan, performance guidance, performance evaluation and performance return, performance management is still an insurmountable mountain for many domestic enterprises. According to the survey, 8% of China enterprises have failed to implement performance management successfully. This data just proves that there are some necessary conditions for the implementation of performance management in enterprises.
so, what are the necessary conditions for the implementation of performance management?
decomposition is strategy. We can get the necessary conditions for enterprises to implement performance management by analyzing the four components of performance management.
first, the design of assessment indicators must have a source basis
why should this assessment indicator be set to assess this department or this position? This problem is the primary problem that will be encountered when making performance plans and assigning responsibility targets to the assessed objects.
to solve this problem smoothly, we must clearly know the basis of index design. Any indicator must have a source, and the indicator without water is not a correct assessment indicator. For example, a newly established retail enterprise sees that the industry benchmark enterprise is assessing the efficiency of a single store, so it also follows suit to assess the indicator, resulting in better and better assessment results, fewer and fewer company stores, and rapidly shrinking market share. As everyone knows, different enterprises have different stages of development, different management foundations and different business processes ... The key success factors that naturally lead to good or bad performance are naturally different, and the corresponding assessment indicators should be different.
In fact, the assessment indicators have a fixed source:
1. The target of post indicators comes from the target of department heads; The indicator target of the department head comes from the indicator target of the department; The target target comes from the company's target target.
2. The company's target comes from the company's strategy, the company's annual business plan and the company's annual budget. For example, the target value of the company's sales target comes from the company's annual revenue budget and the target value of the company's key work completion rate comes from the company's annual business plan.
3. The target of departments and posts not only comes from the target of the company, but also depends on the annual work plan, job responsibilities and operation process of departments and posts.
The basis for designing the assessment indicators of any enterprise can only come from the above three points. Therefore, the design of assessment indicators should not be divorced from enterprise strategy, annual business plan, annual budget, responsibilities and processes.
only when the source of index design is clarified can we enter the second necessary condition, the purpose and significance of index design.
Second, the purpose and significance of designing the appraisal indicators must be clear.
No one likes to be appraised. Even if some appraisal indicators are reluctantly accepted, if a convincing reason is not given to the company and management, the indicators are likely to find weaknesses in the following days of appraisal implementation, which will shake the company or management.
in order to ensure the correctness of the set assessment indicators, it is necessary to make clear the purpose and significance of an assessment indicator for the company, department and even the position of the assessed.
An enterprise management committee got together to discuss the assessment indicators of business departments at all levels, and the person in charge of each business department set 7-8 indicators. A boss looked at his assessment indicators and was annoyed: "With so many indicators, how much time do I have to spend on internal communication and coordination, and how can I have time to carry out business and visit important customers?"
in fact, every indicator is very important, and these 7-8 indicators belong to the four levels of the balanced scorecard-"finance, customers, internal operations, learning and growth", which includes both outcome indicators and process indicators; There are both financial indicators and management indicators. The reason why this boss complains so much is that when designing the assessment indicators, he didn't tell him the purpose and significance of these indicators for the performance assessment of his subordinate departments and positions. As a business boss, it is very necessary for him to accept and decompose these indicators into the corresponding responsible departments and positions.
Third, every assessment indicator must have a target value
Indicators are like the hands in clocks, and each scale is the target value corresponding to the hands. Only the hands, clocks without scales can't measure time; Similarly, only indicators, no target assessment can not measure performance. For example, the quarterly assessment of the "staff turnover rate" index of a production workshop director, if there is only this turnover rate index, but there is no target value of a few percent, then such an assessment plan has no value to implement.
in the setting of goals, the SMART principle is usually followed:
1. Specific principle: the goals should be clear and definite.
2. Measurable principle: the goal should be quantifiable.
3. Attainable principle: Setting goals should be challenging and realistic, and avoid repeatedly adjusting goals.
4. Relevant principle: the goal should be able to withstand vertical decomposition, from company to department to individual.
5. Time-based principle: there should be a time limit for the goal, and the month, quarter and year should be clear about what kind of goal to achieve respectively.
Therefore, setting target values for assessment indicators or other assessment items has become the first prerequisite for the implementation of performance management.
For enterprises that implement performance appraisal for the first time, it is often very confusing that there is no historical data to support the assessment contents, and naturally there is no way to set corresponding target values. Therefore, after the evaluation index is established, it is necessary to collect data according to the calculation formula of the evaluation index and try it out for a period of time before the target value of the evaluation index can be evaluated.
Fourth, the appraisal indicators or items must have a clear name
A simple and easy-to-understand name can make the appraised object and non-professional human resources managers more easily understand the significance and key points of the appraisal indicators, which is more conducive to the implementation of performance management.
For example, the factory of a company always fails to complete the demand plan submitted by the sales department on time, so the sales planning department proposes to check the completion rate of the factory's demand plan. After this indicator is put forward, many managers can't understand why this indicator should be tested and how to calculate it.
Later, we divided this indicator into two dimensions to describe it: the timely completion rate of customer orders and the timely completion rate of the required quantity, and everyone accepted it easily, because these two indicators actually reflected the two dimensions of the required plan: one is the batch of orders and the quantity of an order. Suppose the factory receives 1 orders every month, and the required quantity of each order is more or less, with large orders and small orders and important customers.
many indicators can be tested directly or reversely, such as indicators reflecting the quality of finished products, which can make the qualified rate of finished product inspection or the defective rate of finished product inspection, depending on the actual quality management business process and corresponding statistical reports. If the workshop only has bad inspection records and there is no corresponding report for calculating the qualified rate, it is more convenient to assess the defective rate of finished product inspection.
It can be seen that effective indicator naming must clearly know the business processes and even related reports within the enterprise, so as to set indicators that are easy for everyone to understand in the enterprise according to the actual situation of the enterprise.
5. The calculation formula of assessment indicators must be accurately defined and supported by statements
Many times, enterprises have different understandings of different terms because of different departments, different working backgrounds and different majors. We must attach great importance to this in performance appraisal, and give a precise definition to the calculation formula of each appraisal index.
For example, the formula for evaluating the target completion rate of sales in the sales department is "actually completed sales/target sales *1%". If there is no precise definition of sales in this formula, I am afraid the consequences will be unimaginable: the sales department simply understands that this sales amount is the order amount in the sales process, the logistics department thinks that this sales amount is the delivery amount, and the finance department thinks that this sales should be the net sales income after tax deduction. In this way, everyone's statistical results of indicators will be different every time, and chickens will talk to ducks.
Because only when the calculation formula of indicators is accurately defined, then we can construct the corresponding report system according to the calculation formula of indicators, and hand over the data collection and statistics in the report to the corresponding responsible departments and positions; Once the report system is mature, IT can be solidified and e-processed, and the indicators can be retrieved smoothly through the system with the help of IT management system. The source of building informatization is to have an accurate definition of the calculation formulas of various indicators of enterprise management.
for example, in order to strictly control the turnover efficiency of finished products, an enterprise engaged in garment research, production and marketing put forward the index of checking the turnover rate of finished products, and its calculation formula is "sales cost ÷ (inventory balance at the beginning+inventory balance at the end) /2 (in which the inventory amount is calculated by ex-factory price)", and the company has imported "IT software for purchasing, selling and storing". Before that, The company already has a set of perfect price management system of "internal settlement price, ex-factory price and retail price". When each product leaves the factory, there is a clear price form. Therefore, when the index "finished product turnover rate" is assessed, the company can easily retrieve data from the invoicing software system on a regular basis.
VI. Whether to set the upper and lower limits of an indicator depends on the weight of a single indicator and the nature of the indicator
The weight of an indicator often highlights the importance of the indicator to the assessed object. The greater the weight, the higher the importance of this indicator. When an indicator has a high degree of importance, it will inevitably occupy most of the weight, which will lead to the reduction of the weight of other assessment indicators. For example, there are four indicators for evaluating sales representatives in a company, of which the sales indicator accounts for 8%, and the total weight of other indicators is only 2%. One of the indicators is the collection of accounts receivable. Since then, the assessed person will not pay attention to other indicators at all, but will only cut down the indicator to improve sales, because this indicator is too heavy. Such assessment weight may cause sales representatives to lengthen and enlarge accounts receivable, and sell more products to customers on this condition, which is actually a kind of bad sales at the expense of the company's capital turnover efficiency, and the potential bad debt risk is huge.
some indicators must set the upper limit of the score, and its function is to cap it. Otherwise, when encountering uncontrollable factors, the actual score of the indicators will become very uncontrollable. For example, a heavy industry enterprise meets the national investment policy of 4 trillion yuan, and home appliance enterprises meet the policy of going to the countryside with home appliances, which will lead to a hundred times increase in sales. If the sales indicators of sales representatives of these companies do not set an upper limit, the final assessment score of sales representatives will be ten times and one hundred times the standard score.
another function of setting the upper limit of indicators is to encourage by segments. For some important performance indicators, such as the target value of 8% set by a sales director's "development quantity of new and large customers", the indicator score is full or "corresponding standard score * 1.1"; More than 1%, the index score according to the "corresponding standard score *1.3" accounting. In this way, it has not only played the role of segmented encouragement, but also capped the highest score of this index.
The lower limit of an indicator must depend on the weight of a single indicator. If some indicators are important and the weight cannot be raised too much, you can set the lower limit of the indicator and emphasize it as a veto indicator. For example, when a company evaluates the performance of sales representatives, there are four evaluation indicators, among which the sales indicator accounts for 3%. Considering the high importance of this indicator, this indicator is used as a veto indicator. When the actual sales are lower than the target sales of 8%, the overall evaluation score is "zero" or converted according to "score *.5". By setting the lower limit and veto nature of the index, the importance of the index can be guaranteed.
VII. Before the design of assessment indicators, there must be corresponding management organizations to support
The implementation of performance assessment by enterprises will definitely mean changes in value evaluation and value distribution. Especially for enterprises that implement performance appraisal for the first time, because there are no appraisal indicators before, suddenly each department or employee has to bear many indicators to get the previous salary income (even if the salary income after the assessment is more than the previous salary income), then it will bring people great rebellious psychology. Such a change is bound to be resisted by many forces.
therefore, in order to ensure the seriousness and authority of the company's performance management, it is very necessary to set up performance management institutions at all levels of the company. For example, at the level of corporate governance structure, there is a nomination and remuneration Committee under the board of directors, which represents the board of directors in assessing and encouraging the company's top operators; A management committee or performance committee can be set up under the general manager of the company, which is to evaluate and encourage the heads of all units at the first level of the company on behalf of the general manager. Under each unit, a performance promotion working group or window can be set up. This institution is the person in charge representing each unit at the first level and cooperates with each other.