Performance Management 

　　Organizational & Human Resource Development Division aliqq

　　Hong Kong Productivity Council

　　Seminar Content

　　Why is PM Important to Business Performance?

　　What is PM?

　　The PM Cycle

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　　Effective PM System aliqq

　　Identification of Individual Performance Measures aliqq

　　What is Balanced Scorecard?

　　Barriers in Strategic Management of Organizational Performance

　　How does a Balanced Scorecard Translate Company Strategy into Action? aliqq

　　Framework of a Balanced Scorecard Performance Measurement System

　　Action Required for Implementation of an Effective PM

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　　Why is Performance Management (工作表现管理制度) Important to Business Performance? aliqq.cn

　　Why is Performance Management (工作表现管理制度) Important to Business Performance?

　　Benefits to Individuals

　　Better understanding on performance standards

　　Better development opportunities

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　　Motivated as it is a fairer system to measure employees’ performance

　　Improved relationship with supervisors 阿里巧巧

　　Improved individual performance aliqq.cn

　　Why is Performance Management (工作表现管理制度) Important to Business Performance?

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　　Benefits to Organisation

　　Effective monitoring system

　　Better understanding on performance standards

　　Organisation’s expectations can be clearly communicated

　　Link individuals’ work output to organisational goals

　　Better morale

　　Shape organisation’s culture aliqq

　　Why is Performance Management (工作表现管理制度) Important to Business Performance? aliqq.cn

　　What is Performance Management (工作表现管理制度) ?

　　“A process for establishing a shared understanding about what is to be achieved, and how it is to be achieved; an approach to managing people which increases the chance of achieving job-related success.”

　　  

　　Different Approaches

　　Performance Management - Current Trends(当前趋势)

　　Performance management as a core process

　　New approaches:

　　self-appraisal 自我评核 阿里巧巧

　　peer appraisal  同级同事评核

　　upward appraisal  下属对上司的评核

　　360 degree appraisal  360 度评核

　　Greater employee involvement / participation

　　From measuring outputs      measuring outputs + inputs aliqq.cn

　　Greater line-management ownership 阿里巧巧

　　Formal, once-a-year feedback      more informal, on-going communication

　　Performance Management - Core Principles(核心原则)

　　Corporate & individual performance are mutually dependent aliqq.cn

　　On-going process providing the basis for continuous improvement

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　　Relies on consensus 阿里巧巧

　　Not just top-down

　　A 2-way communication process

　　Forward looking

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　　Concentrate on positive attributes

　　Works best when applied to all staff

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　　Performance Management - Interlinking Parts表现管理的互相紧扣的部份

　　Towards an Effective PM System迈向有效的表现管理制度

　　Measuring Outcomes (Results)如何评核工作成果 (效果) aliqq

　　Measuring Outcomes (Results)如何评核工作成果 (效果)

　　Accountabilities, examples (负责范围的典型例子) :

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　　Human Resources 人力资源

　　Staffing 聘用人才

　　Staff relations 劳资关系 aliqq.cn

　　Compensation planning 薪酬策划

　　Benefits administration 褔利行政

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　　Executive development 管理层培养

　　Policy development 政策制定

　　Measuring Outcomes (Results)如何评核工作成果 (效果)

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　　Sales aliqq

　　New business development aliqq.cn

　　Sales management

　　Lead generation

　　Account development

　　Marketing

　　Advertising

　　Promotion strategy

　　Pricing

　　Market research aliqq.cn

　　Media relations aliqq

　　Setting Objectives 建立目标

　　Stephen Covey: set your goals within your role

　　 (介定角色、确立目标) aliqq.cn

　　An objective is a statement of results to be achieved

　　Characteristics: 阿里巧巧

　　Focused

　　Written aliqq

　　Stated forcefully

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　　Significant

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　　Prioritized and weighted 阿里巧巧

　　Not too many 阿里巧巧

　　Communicated

　　“SMART”, “SMARTER”

　　Defining Performance Standards制订表现标准

　　Measurable factors from a performance factor

　　4 direct measures of output:

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　　Quality aliqq

　　Quantity

　　Cost 阿里巧巧

　　Time

　　May be “hard”/ “soft” numbers, problems to overcome

　　Cost effective

　　Agreeing on Action Plan共同协议行动计划 aliqq

　　What

　　When

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　　Where aliqq

　　Who

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　　Written

　　Communicated

　　Assessing Performance Factors (表现原素) / Competencies (称职原素) 阿里巧巧

　　Examples:

　　Coca-Cola Mobil

　　Performance Competencies

　　Factors

　　Communication Teamwork

　　Job knowledge Technical knowledge aliqq

　　Problem solving Setting high standards

　　Work relationships Concern for accuracy

　　Leadership Concern for effectiveness

　　Planning, organising Flexibility

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　　Designing the Process 设计评估阶段

　　Determine the purposes 确立目标

　　Develop the procedures 程序应包括 : aliqq.cn

　　No. of forms 表格数目 aliqq.cn

　　What to be assessed 评核甚么

　　Who should appraise 谁来评该 阿里巧巧

　　Appraisal period 评核期

　　Frequency of meetings 评核面谈的频率

　　Linkage with pay 与薪酬的联系

　　Designing the Appraisal Form 设计评核表格 aliqq.cn

　　What to include 应包括甚么 ?

　　Work outcomes or objectives 工作成果 (目标)

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　　Performance factors 表现要素

　　Jobholder personal data 员工个人资料

　　Major achievement 主要成就

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　　Development needs and plans 培训需要及计划

　　Approvals 审批机制

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　　Employee comments 员工意见

　　Promote ability

　　Rating scheme 表现评级标准 aliqq

　　How many levels 多少级别?

　　What will we call each level 级别名称?

　　Performance Review 表现评核 阿里巧巧

　　Strategy & system for performance management

　　Continuous process of

　　Review  检讨表现

　　Feedback  回应不理想的表现 阿里巧巧

　　Reinforcement  强化好的表现

　　Documentation of the on-going process

　　Objectives of Performance Appraisal表现评核的目的

　　Motivate/ reinforce good performance

　　Identify areas for improvement 阿里巧巧

　　Identify training & development needs aliqq

　　Clarify job expectations aliqq

　　Strengthen staff-supervisor relationship

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　　Elements of a Good Appraisal好的表现评核

　　1. Document performance

　　2. Performance diagnosis 阿里巧巧

　　3. Seek bilateral participation

　　4. Focus on goals

　　6. Minimal criticism

　　7. Single purpose

　　Appraisal Errors 表现评核常见错误

　　Halo error  以偏概全

　　Contrast error  对比误差 aliqq.cn

　　First impression error  先入为主

　　Regency error  近入为主

　　Leniency error  宽容误差

　　Severity error  严厉误差

　　Central tendency error  中庸误差

　　Optimising Your Existing System改善你公司现行的制度

　　What we can do to improve?

　　Review your existing system and identify: aliqq.cn

　　Imbalances 阿里巧巧

　　Ambiguities

　　Non-alignment with strategic objectives

　　Inappropriate simplicity/ complexity, etc.

　　Possible changes might be:

　　Change the event       an ongoing process

　　Start with the form      start with planning

　　Focus on traits on behaviors 阿里巧巧

　　  (what he is)   (what he does)

　　Provide appraiser training

　　Cultural Issues  文化因素 aliqq.cn

　　Culture is a common excuse for aliqq

　　not setting up a performance management system (PMS) aliqq

　　not optimizing the existing system 阿里巧巧

　　PMS needs to be compatible with existing organizational culture

　　What is often overlooked is: PMS can help to drive change, which will lead to a new organizational culture

　　Check your organization for readiness

　　Criteria for an Effective Appraisal System好的表现管理制度 - 标准 阿里巧巧

　　Relevance  关联性 阿里巧巧

　　Sensitivity  敏感性

　　Reliability  可靠性

　　Acceptability  认受性

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　　Practicability  可行性

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　　Critical Success Factors  成功要诀

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　　Open, honest management style - high degree of trust

　　Line managers feel sense of ownership aliqq

　　Supportive HR/ personnel function

　　Senior management support aliqq

　　Business plan - linked with organisational goals aliqq

　　Identification of Individual Work Outcomes (工作成果) and Performance Measures (量度标准)

　　Based on the Balanced Scorecard System aliqq.cn

　　均衡绩分表系统

　　How does a Balanced Scorecard Translate Company Strategy into Action均衡绩分表如何实践公司策略

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　　Example : an Electronics Company

　　Vision aliqq.cn

　　“To diversify our customer base and become a competitive and reliable supplier to ANY potential customers”

　　Translation of Vision into Strategic Objectives

　　“a competitive and reliable supplier” would mean

　　cost effective

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　　better product development

　　good customer service

　　Translation of Strategic Objectives into Organizational Goals 组织目标 & Measures 量度标准

　　Strategic       Perspective       Organizational         Measures

　　Objectives            Goals aliqq.cn

　　Translation of Organizational Goals into Departmental Goals - Example of MarketingEnhance Customer Satisfaction on Company Service (Customer Perspective)

　　Departmental Goals  阿里巧巧

　　Provide fast response on customer’s request 阿里巧巧

　　Coordinate with other departments to ensure on-time delivery of services / products

　　Measures aliqq

　　Customer satisfaction survey

　　Sales volume

　　Translation of Organizational Goals into Departmental Goals - Example of ProductionEnhance Customer Satisfaction on Company Service (Customer Perspective)

　　Departmental Goals 

　　Timely delivery of products / services

　　Ensure the quality of products / services is up to the expectation of customers

　　Measures

　　Lot rejection rate: 2%

　　Milestone variance

　　Framework of a Balanced Scorecard Performance Measurement System

　　Action Required 坐言起行 aliqq.cn