The performance management refers to all levels of managers and employees jointly participate in performance planning, performance communication, performance evaluation, performance results application in order to achieve the organizational objectives. It can effectively manage the performance of the company.
1. Total Reward reflect a deeper picture of how companies can attract, motivate, and retain talent, how they can get the performance of the company they need to develop, and how to reward those who have achieved excellence. The program is a broader vision of what the company can provide for its employees and what employees expect from the company, reflecting the fundamental changes in the management mindset of the company’s top management. When design the total reward program, it should reflect the following factors.
A. Basic financial Rewards
This includes basic wages, cash allowances, rewards, and corporate equity, which are the most fundamental part of the Total return.
B. Financial remuneration
Includes health and welfare offers, paid vacations, perks, retirement plans and personal recognition.
C. Features of Job
This is linked to the quality of the worker’s own work, including the diversity, challenges, importance and significance of the job offering, and includes the feedback and impact of employee performance.
D. Career design
Including personal growth opportunities, capacity improvement, organizational team progress and employment relations, such as the stability and security.
E. Employee affiliation with the company
This refers to the employee’s sense of belonging to the company, which not only enables the company to enjoy a good reputation, but also can make the staff and the team forms a good atmosphere.
2. Duty specification
Experience shows that, from CEOs down to the general staff, they are usually not aware of their duties in performance management, and do not know what to do, how to do it. Therefore, many managers and employees in the performance management, often act more passive, sometimes the head of each department would come forward the coordinate the performance managing process.
Any work would first of all require a scientific and rational division of labor, and then according to the division of labor to develop detailed work rules. The work can be clarified only in this way. In a company, we can divide the roles of managers and employees into four levels: business executives, HR managers, line managers, and employees.
3 Management process
only with a sound performance management process, can the performance management system be effective. We can use PDCA cycle to illustrate this problem. PDCA cycle is put forward by the quality management expert Deming in United States, so it also known as “Deming Cycle”. The meaning of PDCA is: P (Plan) – plan, D (Do) – implementation, C (Check) – check, A (Action) – action, . The above four processes is a cycle, problems could be solved in several rounds.
4. Negotiation system
To help the staff to achieve their own goals, the managers should negotiate with the employees on a regular basis as for clarification of the goals, the achievement and giving guidance to to the employees. The managers should communicate with the employees, listen to the opinion of the employees and adjust the implementing method and goals in a timely manner, this is also a kind of control and monitoring to the performance .It should be emphasized that good communication is the basis of effective negotiation.