Saturday, July 24, 2010

The other side of performance evaluation [1]

The future really have a competitive advantage, will be those that can stimulate members of the business beyond the pursuit of self interest.

Human resources director of a company is very depressed recently, some time ago according to monthly sales evaluation system ambiguity disadvantage, HR leading role in the redesign, did not expect this to be high hopes after the implementation of new system backfired, resulting in a number of orders people worried.

The company's traditional practice is self-determined sales target by the department, at the end of extraction by a certain percentage of sales money to the department assigned by the department heads. Performance evaluation in accordance with prevailing views, such subjective judgments based on department heads bonus distribution, lack of motivation of employees. To promote the sales staff's enthusiasm, Human Resources will reach a sales target sales rate and the money factor linked, set the ladder of rewards:

Unexpectedly, the policy implementation Que 鍑虹幇 to be the case: As the sales target Bijiao challenging, part of the sales personnel are no longer paying exclusive attention to sales of Shang, but the Da Cheng Jiang Zi Ji monthly rate of "precision" controlled at 80% -81% in order to ensure that the monthly rate can reach more than 80%.

More headache, the new policy, the company's climate has undergone subtle changes. Before that, though there is no incentive mechanism of traction, but all departments except sales goals, will also focus on product marketing initiative to identify some "mission impossible", to determine their own challenge goal, the company is very strong and positive atmosphere . After the implementation of performance appraisal goals, many people began to focus on sales objectives and bargaining on the company, but lost before the entrepreneurial spirit, the company changed the atmosphere of concern.

The other side of the coin
The embarrassment of implementation performance appraisal in many Chinese companies were not uncommon, but nevertheless, there are still more companies to stick into target performance appraisal. The target performance appraisal fans on the view, the employee is self-interest, and the efforts of the lack of internal motivation. Organizational performance improvement the key lies in the use of employee self-interest, design the incentive system and the corresponding penalties, the staff recognized Dao goal for the organization's national interest, prompting them to Gongzuo.

This carrot and stick type of concept at first glance a simple and practical, and China has always been not a lack of "reasonable incentive, reward on merit" of consciousness, so companies interested in objective performance appraisal is not surprising. To address the performance evaluation of the problem, companies did her best, but unfortunately, the efforts of businesses in this area are often counterproductive.

First, many enterprises will be distributed on hopes of a mandatory, but there will be differences in the incentive bonus as the only means to force the distribution is seen as the difference between the technology, the end result is to force the distribution of the force distribution, entirely contrary to the the principles of motivation and mind. It is said a consulting firm in the market and also forced the distribution of "practicing" to require the mandatory distribution of the project team is also the ultimate project manager bite the bullet and the number of places to be improved to the first entered team of assistants, assistant crying out, were classified not done for the good of the people, take their places Naozhuo to go out.

Many people on the dynamic curve of the lack of real understanding of the meaning, practices which are being "forced distribution is science" puzzled by the question. Welch helm at GE in fact, the mandatory distribution of one of the best, as is the distinct values of GE. Welch as "one of the highest principle of" through a "soft (people) hard (business) numbers of" effective management, to achieve the performance has increased significantly. In Welch's eyes, the same people and business, can add value through investments. Values, no good or bad, or whether it can be used to measure scientific and reasonable.

Quantitative Management is now also widely seen as a magic weapon to solve problems performance evaluation. "Can not be quantified will not be able to measure, can not be measured can not be managed." Because the more important things more difficult to measure, quantify and end up in one-sided pursuit of wanted A got B results. Media have reported that the Public Security Bureau in a manner to strengthen the assessment of the attendance of 110 to km / day as an indicator, resulting in 110 a day in emergency nothing to scream come and go in downtown.

Indeed, the fundamental does not quantify individual performance appraisal for employees, but against the process and organizational aspects of performance management. It has long been recognized that purely financial indicators have a lag characteristics, can not fully reflect the performance of enterprises, need to be complemented by non-financial indicators. And easy to collect data on financial indicators of different, non-financial indicators to measure quite difficult to quantify unless otherwise difficult evaluation, Only then can not be quantified can not manage to say.

Enterprises around the individual appraisal and reward has struggled, however, there is not a return to pay, many persist in performance through the assessment to get people gradually found a dead end: set sophisticated incentives has led to staff not concerned about the performance itself Instead, the company plays the game; often received short-term gains but long-term damage to the development of really pressing the calabash gourd played.

These problems not only exist in Chinese enterprises. Sony declined in recent years, industry leadership, its former directors, the outer server Lang recently written that, from the end of 1995 the introduction of performance evaluation system is not the culprit Sony scenery. In his "doctrine destroyed the performance of Sony" article that "the results of operations and financial rewards directly linked to reward employees in order to get more hard work" of the performance of doctrine, so that Sony lost the passion and spirit of challenge, became more and more mediocre. People tend to identify more easily achievable goals, starting with the company playing a bargaining game.


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