How to set performance appraisal indicators and who sets them for performance appraisal indicators

1. Strategy-oriented indicator design.

If the performance appraisal does not adhere to the strategic orientation, it is difficult to ensure that the performance appraisal can effectively support the company's strategy. The orientation of performance appraisal is realized through performance indicators, and whether performance appraisal can achieve the guiding strategy is actually achieved through the design of strategy-oriented performance indicators.

This means, first and foremost, that the KPIs are the measure of performance in each role, and that the measurement reflected in the KPIs ultimately depends on the company's strategic objectives. When the KPI forms an effective part of the company's strategic objectives or the support system, the position it measures takes as its primary responsibility to achieve the relevant parts of the company's strategic objectives; If a KPI is detached from the company's strategic goals, the direction of effort for the position it measures will also be at odds with the achievement of the company's strategic goals.

KPI comes from the decomposition of the company's strategic objectives, and its second meaning is that KPI is the further refinement and development of the company's strategic objectives. The company's strategic goals are long-term, instructive and general, and the key performance indicators for each position are rich in content and set for the position, focusing on the assessment of the current year's work performance and are measurable. Therefore, the key performance indicators are the exploration of the specific factors that really drive the realization of the company's strategic goals, and are the concrete embodiment of the company's strategic requirements for the performance of each position.

The last implication is that KPIs evolve as the company's strategic objectives evolve. When the company's strategic focus shifts, the KPIs must be revised to reflect the new elements of the company's strategy.

2. Indicator design based on job analysis.

Job analysis is the basis of all human resource management and the basis for designing performance appraisal indicators. According to the purpose of the assessment, the work content, nature and conditions for completing the work of the subject are studied and analyzed, so as to understand the objectives and working methods adopted by the person being assessed in the position, and preliminarily determine the elements of performance appraisal.

3. Design performance appraisal indicators based on comprehensive business processes.

The strategy-oriented, job analysis-based approach to indicator design may be applied by many companies. However, when they design the indicators, they ignore a very important process, that is, the integrated workflow to design the assessment indicators.

Performance appraisal indicators must be grasped from the process. According to the role and responsibility of the assessee in the process and the relationship with the upstream and downstream, the performance indicators of the work are determined. In addition, if there are problems with the process, the process should be optimized or restructured.

In the process of designing KPIs, if we grasp the above three points, there will not be too many problems with our performance appraisal indicators. In a word: not the best, only the appropriate.

There are a few steps to consider when determining a job performance metric:

1.Define the objectives of the work: First, clarify the core objectives and key results of the work. These goals should be aligned with the organization's strategic goals and the department's priorities. Work objectives should be specific and quantifiable for subsequent performance evaluation and measurement.

2.Break down goals into measurable metrics: Break down work objectives into measurable metrics or key performance indicators (KPIS).

These indicators should be able to quantify progress and results of work. For example, if the goal is to increase sales, relevant metrics can be the growth rate of sales, customer conversion rates, and so on.

3.Consider key performance areas: Consider the key performance areas of the job, which are critical to job success.

For example, customer satisfaction, quality control, work efficiency, etc. According to the characteristics and requirements of the job, select appropriate key performance areas to measure job performance.

4.Consider the time dimension: When determining performance appraisal indicators, you need to consider the time dimension. Long-term and short-term goals can be set, and metrics can be set accordingly. Long-term goals may take more time to achieve, while short-term goals allow performance to be measured more quickly.

5.Quantifiable and measurable: Ensure that performance metrics are quantifiable and measurable. Indicators should be able to provide specific data and indicators for performance evaluation and comparison. Avoid vague, subjective metrics and instead choose metrics that can be quantitatively measured.

6.Engage employees and management: When setting performance appraisal metrics, it is important to have active communication and engagement with employees and management.

They can provide valuable feedback on job responsibilities, challenges, and expected outcomes. This ensures the accuracy and feasibility of the assessment indicators.

7.Regular evaluation and adjustment: Performance metrics need to be evaluated and adjusted on a regular basis. As the work changes and the needs of the organization change, the metrics may need to be adjusted and optimized. Ensure that the indicators are aligned with the objectives of the work and revised according to the actual situation.

When determining performance metrics, the key is to have clear goals, quantifiable metrics, and adequate communication and engagement with employees and management. This ensures the accuracy, feasibility, and fairness of performance appraisal metrics.

Performance appraisal indicators are general: quantitative indicators, work quantity, and qualitative indicators.

1. The work standard method compares the work of employees with the work standards and labor quotas formulated by the enterprise to determine the performance of employees. The advantage is that the reference criteria are clear and the evaluation results are easy to make. The disadvantage is that it is difficult to set standards for personnel in management positions, and there is a lack of quantifiable indicators.

2. Ranking method is a performance evaluation method that ranks employees within a certain range from high to low according to a certain standard. Its advantage is that it is simple and easy to implement, avoiding the centering error, and the disadvantage is that the standard is single, and it is difficult to compare between different departments or positions.

3. Hard distribution, this method is similar to the sorting method to a certain extent, it is a method to force the distribution of employees according to a certain probability distribution within a limited range, the advantage of this method is to avoid a big pot of rice, and the disadvantage is that the probability assumption is not necessarily in line with the facts, and the probability in different departments or ranges may be different.

4. The key event method refers to the recording of those behaviors that have a significant positive or negative impact on the efficiency of the department or enterprise. The assessor must record all the key events of the assessee during the assessment period, which has the advantage of being more objective, and the disadvantage is that the workload is large, and it also requires a quantitative process.

5. The basic feature of the objective management method is that the appraiser and the assessee work together to formulate work objectives, and guide and assist them to complete the objectives, and constantly revise the objectives. This makes the relationship between the appraiser and the appraisee change from simply supervising and being supervised to being a consultant and facilitator, and promotes the realization of work goals and performance goals.

Degree assessment method, this method combines the above multiple methods, through different assessors to carry out assessment, in the selection of assessment indicators as much as possible quantification, combined with target management and a certain degree of hard distribution and forced sorting. The disadvantage is that the assessment workload is large, and the assessment cycle is difficult to choose.

The methods for determining the indicators and contents of performance appraisal are: graph scale appraisal method, alternating ranking method, pairing comparison method, and forced distribution method.

1. Graphic Rating Scale (GRS): It is one of the simplest and most commonly used performance appraisal techniques, which is generally carried out in the form of filling in the chart scale table and scoring.

2. Alternative ranking method (ARM): It is a more commonly used assessment method for ranking field answers. The principle is:

It is much easier to pick the best or worst performers in a group than to measure their performance absolutely.

Therefore, the operation method of alternating ranking is to select and arrange the "best" and "worst" respectively, and then select the "second best" and "second worst", and so on until all the assessees are completely arranged, so as to take the ranking of good and bad as the result of performance appraisal. Alternate sorting: You can also use the performance sort table when you operate.

3. Paired comparison method (PCM): It is a more detailed method of assessing the performance level through sorting, which is characterized by the fact that each assessment element must be compared and sorted between personnel, so that under each assessment element, each person has been compared with everyone else, and all the assessees have been fully sorted under each element.

4. Forced distribution method (FDM): It is to set the distribution ratio of performance level before the assessment, and then arrange the assessment results of employees into the distribution structure.

Performance appraisal indicators are to divide morality, work performance, ability and attitude into items and standards in a scientific way in combination with organizational characteristics for performance evaluation and performance improvement.

Performance appraisal index refers to the process of judging the value creation of the work performance of managers at all levels who undertake the business process and results of the enterprise to complete the specified tasks by clarifying the unit or method of performance appraisal objectives.

For example, for enterprise employees, it refers to the implementation of enterprise employee evaluation indicators, including the comprehensive inspection and evaluation of the morality, work performance, ability and attitude of enterprise employees, so as to determine their work performance and potential management methods.

Significance of performance appraisal:

1. Achieve your goals.

Performance appraisal is essentially a process management, not just an appraisal of results. It is a process of decomposing medium and long-term goals into annual, quarterly, and monthly indicators, and constantly urging employees to achieve and complete them.

2. Dig out the problem.

Performance appraisal is a PDCA cycle process of continuous planning, implementation, inspection and processing, which is reflected in the entire performance management process, including performance goal setting, performance requirements achievement, performance implementation and revision, performance interview, performance improvement, and then goal setting cycle, which is also a continuous process of finding and improving problems.

3. Distribution of benefits.

Appraisal that is not linked to interests is meaningless, and employees' salaries are generally divided into two parts: fixed salary and performance salary. The distribution of performance pay is closely related to the performance appraisal score of employees, so when it comes to appraisal, the first reaction of employees is often the payment of performance pay.

4. Promote growth.

The ultimate purpose of performance appraisal is not simply to distribute benefits, but to promote the common growth of enterprises and employees. Through the assessment, problems are found, problems are improved, gaps are found for improvement, and finally a win-win situation is achieved.