Performance Management Beida Presentation(绩效管理幻灯)

Performance Management is the key to ―raising the bar‖ in an organization, for all levels of performance
Organizations with a high-performance orientation and strong management capability have higher revenue, profits, and market valuations
Thirty-five percent of an institutional investor‘s valuation of a company is attributable to nonfinancial information that gauges the ability of the management team to deliver results:
5-year sales growth = 17.5% per year 5-year profit growth = 10.8% per year Annual equity growth = 16.7% per year 5-year dividend growth = 13.4% per year
Barometer of progress (periodic)
Performance Ownership
Dialogue (continual) Shared accountability for results
Role of Employee
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The Promise of Performance Management
Imagine a system that could—
Increase the likelihood that your strategy is effectively executed Harness and direct the 10–60 minutes a day of discretionary effort that every one of your employees has Rationalize and focus the number of goals that anyone in your organization has Improve the decisive dialogue that occurs in your organization
Reward performance in a way that it is motivating and engages people
Differentiate performance in ways that make line managers feel good about their decisions
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Improving Performance Management Improves Business Results
Highly Successful Companies
Performance-Based Rewards Clear Employee Goals Participative Style Attention to Development Encourage Creativity
Source: D. Karvetz, The Human Resources Revolution
Less Successful Companies
86% 80% 70% 67% 62%
30% 26% 4% 27% 10%
Highly Successful Companies are defined as having—
35% improvement in human-capital systems resulted in 10%–20% gain in shareholder value
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Improving Performance Management Improves Business Results
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Improving Performance Management Improves Business Results
Number of Employees
பைடு நூலகம்Source: Hay/McBer
Performance
Optimizing the performance of your people will have a positive impact on business performance
390
“Human Capital” Enhancements
370 350
330
310
290
0
20
40
60
80
100
Quintile Improvements in Strategic Alignment and Integration of HR System
Source: Huselid and Baker, 1995
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Performance Management Stages
Design Parameter Function Performance Appraisal
Report card (retrospective)
Performance Management
High-performance companies define Performance Management in its broadest sense: it is critical to executing and implementing strategy Performance Management is now widely recognized as delivering more returns and delivering more competitive advantages than other HR investments




A process that ensures that people execute the strategy of the organization A process for establishing a shared understanding of what is to be achieved and how A process for ensuring that decisive and constructive dialogue occurs A process of managing self and others so that people do achieve A process for ensuring that people are doing the right things in the most effective ways, to the best of their ability
0% Profitability Productivity
Source: Sheffield Effectiveness Programme
Percentage of variation in change in company performance accounted for by managerial practices
Strategy Execution: Can management make tough decisions and seize opportunities quickly? Management Credibility: Does the company keep its commitments? Strategy Quality: Is management’s vision of the future likely to optimize value creation in a volatile, globalized, and connected economy? Innovativeness: How readily does this company adapt? Attracting and Retaining Talent: Is turnover higher or lower than key competitors? Do new hires surpass leavers in skills and experience? Management Experience: What skills and experiences does the management team bring to the table? Compensation: Do compensation policies support the firm’s strategic intent?
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Performance Management
Performance Management is about improving business performance by improving team and individual performance, and ensuring that the company’s strategy is executed and implemented. It is—
Source: Mavrinac & Siesfield, Measuring Intangible Investment
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Human Capital Systems Increase Shareholder Value
Market Value per Employee (000)
Executive Human Resource Program
The Promise of Performance Management
蔡前里
The Current Challenge of Performance Management
The HR process—
Is completely unrelated to other key business processes Is dreaded by managers and employees alike Does not result in any meaningful feedback Does not differentiate performance or pay Is a focus for only one or two days—or hours—per year
High-performing companies are better at managing, motivating, and rewarding employees
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Strategy Execution Matters to Shareholders
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Human Resource Management Practices Drive Profitability and Productivity
40%
30%
19% 18%
20%
10%
2% 1% 1%
6% 3% 1% 1%
8%
HRM Strategy Quality Technology R&D