The 2nd Class of Intop --Why do companies need performance management?

Why do companies need performance management?

The results of Hay Group’s survey of 1,000 outstanding companies around the world show that, compared with companies without performance management systems, the average sales amount is about 35% higher, the return on assets is about 3.45% higher, and the overall return on shareholder investment is about about 7.9% higher.

And performance management is the most important key to their success!

In the second phase of “Class of Intop”, Chairman Sam Lau discuss performance management with everyone!

Sam analyzed the meaning of performance management, the difference between performance management and performance appraisal, the importance of performance management and how to do a good job in performance management. Combined with actual cases, he explained how to set goals between managers and employees. On the basis of reaching a consensus on the realization of the goal, by stimulating the enthusiasm of the staff and improving the ability and quality of the staff, help the staff to achieve excellent performance, so as to achieve the organizational goal.

Performance management aims to reward the benefits and eliminate the bad. Different from performance appraisal, performance management is carried out from beginning to end, which is a management method used to help employees and enterprises grow together, emphasizing continuous communication and information feedback; while performance appraisal is a part of performance management, focusing on results. It is easier to ignore the growing up of employees and judge by the results. It can easily lead to a situation where employees and managers are opposed to each other. It is not conducive to the long-term development of the enterprise.

The implementation of effective performance management helps employees and enterprises achieve a win-win situation.

From the perspective of employees, it can help employees to better understand their own strengths and weaknesses, conduct systematic career assessment and training, realize employees' "best use", effectively motivate employees to develop their potential, create more value, and obtain more income.

For the company, efficient and feasible performance management allows managers to discover existing problems in the company, and use performance results to correct development plans in a timely manner. It can also strengthen communication with employees through performance management and create a corporate culture that grows together with employees.

So how to do performance management?

Sam gave a clear explanation.

First of all, we must formulate clear goals, split them from top to bottom, and implement them in place.

Implement the goals in place, clarify the performance completion, ability, and character of the person being assessed, and formulate assessment standards according to different people: what to test, who to test, when to test, how to test, and to set schedule, personnel, orientation, standard, so as to make performance management truly reflects the status of employees and has a positive impact on the company.

After a performance management system is launched, it must be implemented through effective and timely communication between employees and managers in order to better keep the two sides in sync. Employees take the initiative to report the work progress and difficulties encountered in the work to the manager, so that the boss can timely detect the deviation between the employee's work and the target plan, correct it in time, and provide corresponding guidance and resources in a targeted manner. Managers and employees always keep growing together, so that enterprises can go further on the road of development.

In the part of implementing the evaluation, the employee's self-evaluation and the manager's evaluation should be combined. And do a good job of performance interviews, and after reaching a consensus, determine the improvement plan, and form the assessment indicators and assessment standards for the next phase.

The application of the results of performance appraisal is the key to ensuring the closed loop of performance appraisal. It can be used as the basis for employee compensation or performance bonus and job adjustment, allowing employees and managers to better understand employees, motivating employees to improve work efficiency, better formulate career plans, and increase employees' sense of belonging and satisfaction. It also provides an effective basis to recruitment and training, establish a corporate talent reserve system, and promote the realization of corporate goals and strategies.

Finally, Sam emphasized:

No matter how long the assessment period is, managers' attention, communication and coaching to employees should be carried out every day and all the time! And must be uninterrupted year round.

At any time, the enterprise should pay attention to the development of the employees, and the employees work together to make the enterprise stronger and stronger. Performance management is an invisible hand that helps the enterprise to promote all of this development.