1. The necessity of performance management
No matter which stage of development it is in, performance management has a huge role in promoting the competitiveness of enterprises, and performance management is very necessary. Performance management is particularly important for companies in a mature stage. Without effective performance management, the performance of organizations and individuals cannot be continuously improved, and companies will not be able to adapt to the demand of cruel market competition and will eventually be eliminated by the market.
Many companies have put more energy into performance management attempts. Many managers believe that the fair and objective evaluation of employees’ contributions, provides a basic basis for employee compensation, motivates employees with excellent performance, and supervises employees with low performance. This is performance The main purpose of management. Of course, the above point of view is not wrong, but performance appraisal is performance management, and the role of performance appraisal is to provide a basis for salary payment is still one-sided.
Performance management mainly has the following three aspects:
(1) Performance management can not only promote the improvement of organizational and individual performance
Performance management points out the direction of work for employees by setting scientific and reasonable organizational goals, department goals and personal goals. Through performance coaching and communication, managers discover problems in the work of subordinates in a timely manner, and provide necessary work guidance and resource support to subordinates; subordinates ensure the achievement of performance goals through the improvement of work attitude and working methods. In the performance appraisal link, conduct an objective and fair evaluation of the individual and department stage work, clarify the contribution of individuals and departments to the organization, encourage high-performance departments and employees to continue to improve performance through various methods, and supervise low-performance departments and employees Identify gaps and improve performance. During the performance feedback interview process, through face-to-face communication between the examinee and the examinee, help examinees analyze their strengths and weaknesses in their work, encourage subordinates to use their strengths and avoid weaknesses, and promote personal development; after this performance management cycle, organizations and individuals The performance will be comprehensively improved.
On the other hand, performance management ensures that outstanding talents stand out by selecting and distinguishing employees, while eliminating unsuitable personnel. Performance management can enable the growth of excellent internal talents, while attracting excellent external talents, so that human resources can meet the needs of organizational development, and promote the improvement of organizational and personal performance.
(2) Performance management promotes the optimization of management process and business process and the improvement of the basic management level of the enterprise
Enterprise management involves the management of people and things. The management of people is mainly a matter of incentives and constraints, and the management of things is a matter of process. The so-called process refers to how a thing or a business is operated, which involves several aspects such as why it is done, who will do it, how it will be done, and who will be passed on after completion. The different arrangements of the above four links will all be correct. The output result has a great influence, which greatly affects the efficiency of the organization.
In the process of performance management, managers at all levels should start from the overall interests of the company and work efficiency, try to improve business processing efficiency, and should continuously adjust and optimize the above four aspects to gradually improve the efficiency of the organization. While improving the operational efficiency of the organization, it has also gradually optimized the company’s management and business processes.
Performance management can find the problems in the basic management of the enterprise, put forward higher requirements on the basic management, and promote the improvement of the basic management level of the enterprise.
(3) Performance management ensures the implementation of the organization’s strategic goals
Performance management can promote and coordinate the efforts of various departments and employees in accordance with the predetermined goals of the company to form a joint force, and ultimately can decompose the business goals of the company and promote the completion of the business goals, thereby ensuring the realization of the company’s short-term development goals and long-term development vision.
2. How to do a good job of performance management
The main factors affecting performance are employee skills, external environment, internal conditions and incentive effects. Employee skills refer to the core abilities possessed by employees, which are internal factors that can be improved through training and development; external environment refers to the factors that organizations and individuals face that are not affected by the organization. They are objective factors that we cannot control at all. Internal conditions refer to the various resources required by organizations and individuals to carry out work, and are also objective factors. To a certain extent, we can change the constraints of internal conditions; incentive effects refer to the initiative, Positivity and incentive effects are subjective factors.
Among the four factors affecting performance, only the incentive effect is the most active and dynamic factor. As people’s initiative and enthusiasm increase, the organization and employees will try their best to strive for the support of internal resources, while the skill level of the organization and employees will gradually improve.
Performance management is to stimulate people’s initiative and enthusiasm through appropriate incentive mechanisms, inspire organizations and employees to strive for the improvement of internal conditions, improve their skills, and improve personal and organizational performance.
The mechanism by which performance management plays a role is to set reasonable goals for the organization or individual, establish an effective incentive and restraint mechanism, and make employees work toward the direction expected by the organization, thereby improving individual and organizational performance; through regular and effective performance evaluations, affirming achievements, Point out deficiencies, reward behaviors and results that contribute to the achievement of organizational goals, and restrain behaviors and results that do not meet organizational development goals; through this incentive mechanism, employees are encouraged to develop themselves and improve their ability and quality, and improve work methods to achieve better High level of personal and organizational performance.
To make performance management a virtuous circle, the following three links are very important: target management link, performance appraisal link, and incentive control link.
The core problem of the goal management link is to ensure the consistency of organizational goals, departmental goals and personal goals, and to ensure that individual performance and organizational performance are simultaneously improved. This is the main problem that needs to be solved in the performance plan formulation.
Performance appraisal is the basis for the effectiveness of the performance management model. Only by establishing a fair, just, and effective evaluation system to accurately measure the performance of employees and organizations can we reward those with excellent performance and encourage those with low performance. If there is no performance evaluation system or the performance evaluation results are inaccurate, it will cause the incentive object to be misplaced, then the entire incentive system will not be able to function.
In the performance management model, the incentive effect plays a very important role. The incentive effect depends on the product of the target valence and the expected value. Only when the target valence and expected value are high, the incentive effect will be large. Target valence refers to the degree of incentives for the individual to achieve the goal or the degree of punishment for the individual if the goal is not achieved. Expected value refers to the possibility of an individual achieving a goal and the possibility of fulfilling an organization’s promise. Only when these two possibilities are large enough can the expected value be high.