What are the advantages and disadvantages of the five performance appraisal methods?

Lead: The so-called performance management refers to the continuous cycle process of performance planning, performance coaching and communication, performance evaluation, performance result application and performance goal promotion that managers and employees at all levels participate in to achieve organizational goals. The purpose of performance management is to continuously improve the performance of individuals, departments and organizations.

What are the advantages and disadvantages of the five performance appraisal methods? 1, management by objectives

The concept of management by objectives was first put forward by the famous management master peter drucker in 1954. The so-called management by objectives method is a method to check, assess and evaluate the performance of the organization and its employees according to the management objectives set by the organization. The combination of target management and KPI is a popular employee performance appraisal method at present. Its basic procedure is:

(1) The supervisor and employees jointly set the work objectives to be achieved during the assessment period.

(2) During the evaluation period, supervisors and employees modify or adjust their objectives according to business or environmental changes.

(3) The supervisor and employees jointly decide whether the goal is achieved and discuss the reasons for the failure.

(4) Supervisors and employees jointly work out the work objectives and performance objectives for the next assessment period.

The characteristic of MBO is that the role of performance appraisers has changed from judges to consultants and coaches, and the role of employees has also changed from passive bystanders to active participants. This enables employees to enhance their sense of satisfaction, work initiative, enthusiasm and creativity, and can devote themselves to work with higher enthusiasm to promote the realization of work goals and performance goals.

When adopting this method, we should not only pay attention to the result of achieving the goal, but also pay attention to the process of achieving the performance goal, otherwise it will easily mislead employees to pay more attention to achieving the short-term goal and ignore the realization of the long-term strategic goal of the enterprise.

2.360 degree evaluation

In order to make employees' performance appraisal more fair, just and open, some enterprises expand the subject of performance appraisal from simple superior appraisal to so-called? 360-degree assessment? The form of. In this form, an employee's work behavior information comes from everyone around him (her), including the employee himself, his (her) superiors, subordinates and colleagues, and internal and external customers, so the performance appraisal subject is also composed of these people.

Most 360-degree evaluation systems are composed of several columns. Relevant evaluation subjects, such as colleagues, superiors, subordinates and customers, fill in a questionnaire to evaluate someone, and then systematically summarize and analyze all feedback information by computer system to get the evaluation results.

360-degree assessment is implemented because it collects a lot of information. If the number of enterprises is large, a better evaluation system is needed to support the operation of this method. Therefore, this method needs more time and cost. At the same time, when selecting the examinees, we should pay attention to selecting people who are really related to the examinees, and pay attention to cultivating them to avoid some emotional scoring or revenge scoring phenomena.

3. Key performance indicators (KPI)

Key performance indicators (KPI- Key PerformanceIndicators) are tools to decompose the strategic objectives of enterprises, and are the basis of enterprise performance management system. By analyzing the strategic objectives of an enterprise, it can decompose the strategy into several key areas by fishbone analysis, and set the performance indicators of the key areas. KPI can make the department head clear about the main responsibilities of the department, and on this basis, make clear the performance measurement indicators of the department personnel. Establishing a clear and feasible KPI system is the key to do a good job in performance management.

When determining the key performance indicators, we should grasp the following points:

(1) Link the goals of individuals and departments with the overall strategy of the company and think about the problem from a global perspective;

(2) Indicators should generally be relatively stable. If the business process is basically unchanged, the key performance indicators should not change greatly;

(3) Key indicators should be simple and clear, easy for implementers to understand and accept.

(4) What should be observed? Smart? Principles, that is,

? s？ (concrete) means that the goal should be specific;

? m？ Measurable means that the goal should be quantified so that it can be measured;

? Answer? (attainable) refers to the goal that can be achieved through hard work;

? r？ (Relevance) means that the target should be related to the employee's job business;

? t？ (Time-bound) means that there should be a specific time limit to complete the goal.

KPI can be combined with MBO, BSC, EVA and other performance management methods to form different performance management systems, which have been well applied in many enterprises.

4. Balanced Scorecard

In the Harvard Business Review (No.1/February, 1992), an article by Robert Kaplan, a professor at Harvard University, was published. Kaplan) and David Naughton's first article on the balanced scorecard, A New Method to Measure and Drive the Performance of the Balanced Scorecard, marks the formal birth of the balanced scorecard. 10 years, the balanced scorecard has made great progress in theory and has been recognized by more and more companies in practice. When Harvard Business Review celebrated its 80th birthday, it chose? Top ten most influential management concepts in 80 years? , the balanced scorecard ranked second.

According to the survey of Gartner Group (Gallup), by 2000, 40% of Fortune Global 1000 companies had adopted the balanced scorecard system. A recent survey of 265,438+04 companies by William m. Mercer found that 88% companies put forward the balanced scorecard, which is helpful for the design and implementation of employee compensation plans, and the non-financial evaluation method revealed by the balanced scorecard is widely used in the design and implementation of employee bonus plans in these companies. At the same time, 80% of the world's top 500 enterprises are applying the balanced scorecard.

The balanced scorecard is a set of index system that enables the top management of the company to quickly and comprehensively inspect the company's performance. As a strategic performance management and evaluation tool, the balanced scorecard mainly measures enterprises from four important aspects, including financial indicators. At the same time, financial indicators are supplemented by some factors that drive financial performance, such as customer satisfaction, internal processes and organizational learning and development capabilities.

The balanced scorecard method has the following advantages:

1, to overcome the short-term behavior of financial evaluation methods;

2. Make the whole organization act in unison to serve the strategic objectives;

3, can effectively transform the organization's strategy into performance indicators and actions at all levels of the organization;

4. It is helpful for employees at all levels to communicate and understand organizational goals and strategies;

5. It is conducive to the learning and growth of organizations and employees and the cultivation of core competence;

6. Realize the long-term development of the organization;

7, through the implementation of balanced scorecard, improve the overall management level of the organization;

It has been two years since the Balanced Scorecard entered China, and it is very popular in management and business circles. According to the author's investigation, many enterprises are carrying out the balanced scorecard, but not many enterprises have really mastered the essence of the balanced scorecard and achieved success, which shows that our management experts and entrepreneurs need to do further exploration and research.

5.EVA value management

EVA(economicvalueeaded) is a performance measure. Unlike most other measures, EVA considers all the capital costs that bring profits to enterprises. EVA-based performance management method unifies many discrete indicators made in the enterprise into a final indicator, that is, creating value for the enterprise.

If the cost of equity capital is not considered in the performance evaluation, it will not truly reflect the operational efficiency of capital and the wealth created by enterprises for shareholders. Therefore, only by fully considering all the capital expenses used by enterprises in performance evaluation can we truly reflect the capital preservation and appreciation of enterprises and the wealth they create. EVA is equal to after-tax operating profit minus debt and equity costs, which is the residual income after deducting all costs. It is a fact that it reflects the difference between the net profit after tax and the cost of all invested capital. Economy? Profit evaluation. If the after-tax net profit is greater than the total cost of capital and EVA is positive, it shows that the enterprise has created value for shareholders and increased their wealth; On the contrary, it shows that it has caused the loss of shareholder wealth.

EVA does not measure the process, but directly cuts into the value created for shareholders, which is a simple conceptual method and avoids the misleading of intermediate process indicators to management. EVA performance management is not an isolated assessment of the ultimate value creation, but runs through the top-down value chain of the company, which can effectively decompose the enterprise's goals to the grassroots level. However, the strength of this method is aimed at financial indicators, so it introduces IPF-independent performance factors, which are similar to the behavioral process indicators in KPI. Through IPF, the total bonus of administrative, human resources and other support departments that do not directly create value is linked to the value created by their internal customers in proportion, and then the bonus distribution among employees in the department is determined.

EVA performance management based on finance puts forward very high requirements for the company's internal financial system. Therefore, enterprises with imperfect financial analysis system and difficult financial data to meet the needs of analysis and judgment need specific adjustments when implementing.