Why do more than eight out of ten companies fail in performance management?

The reasons for performance appraisal failures are often due to the following three main reasons:

1) Because it is not integrated with the corporate strategy and goals, or the enterprise does not have clear goals and strategies at all.

Enterprises do not have layers of enterprise-level goals to break down to departments, and then from departments to individuals, and then implement and monitor. Strategic management consists of four basic components: environmental analysis, strategy formulation, strategy implementation, and measurement and monitoring.

Performance management is the most important component of measurement and monitoring in the strategy process. Therefore, without a strategy-based performance appraisal, it is like a river without a source, and it must eventually dry up.

2) Because it is not integrated with business operations, the business department regards performance appraisal as an additional burden, and even resists performance appraisal.

Managers of business departments do not participate in the refinement of performance indicators, do not set performance goals with employees, do not have performance coaching, do not have appraisal interviews, but only passively fill in the appraisal designed by the human resources department. There is no partnership between the human resources department and the business department, human resource management is limited to the human resources department, and human resource management has not become the responsibility of each manager.

3) Since there is no high-performance corporate culture concept, a common phenomenon is that the top management of the enterprise does not participate in the performance appraisal, and it seems that the performance appraisal.

The core is only for employees, and the employees are forced to be eliminated or only used for bonuses.

The senior management of the enterprise must attach great importance to and promote the comprehensive penetration of the concept of performance in the enterprise, build the atmosphere of the organization, form a culture, and ultimately improve the performance of the organization.

One of the most important reasons is that the company has made a set of performance management system (which is reasonable) and then handed it over to managers and employees at all levels to implement, and these people have little knowledge of performance management knowledge, ideas, concepts, methods and operational skills, so they implement it. Resistance, misunderstandings, mistakes and errors in the implementation process will inevitably occur, and if these problems are not resolved in a timely manner, the failure of performance management will become so natural. Shanghai Xinglong Consulting has been focusing on performance management consulting and training, in order to ensure the success of the implementation, in the early stage of performance management consulting, it is particularly focused on the publicity, training and indoctrination of knowledge, ideas and concepts, in the process of consulting, special attention to the guidance and implementation of performance management methods and operational skills, and after the consultation, pay attention to the implementation of counseling.

This fundamentally guarantees the success of performance management.

Because plans can't keep up with changes.

We may also often hear that line managers complain that their employees are doing very well. Why do employees have to deduct money when they fail? Can't they all get by?

In response to the forced allocation, the line manager will come up with various strategies, such as taking turns to sit in the village. Ultimately, on the surface, HR performance appraisals are harmonious, but in reality, performance appraisals are increasingly deviating from their ultimate goals. Does the implementation of performance appraisal necessarily require mandatory allocation?

The normal distribution is the distinction between high-performing and low-performing employees. According to the 28th Management Law, <>

Twenty percent of the outstanding employees have created, and 80 percent of the company's performance. The compulsory allocation method is not a necessary condition for the implementation of performance appraisals. For enterprises that have just begun to implement performance appraisal or small and medium-sized enterprises with non-standard management, it is difficult to carry out performance appraisal quantitatively and objectively, and the method of forced distribution will be counterproductive.

For mature large enterprises, when the information system is relatively perfect, forced distribution can be implemented. If the mandatory allocation method is not implemented, the performance appraisal coefficient method can be introduced. Linking individual performance to departmental performance <>

The corresponding adjustment coefficients are introduced for the appraisal results of different departments, and the reason why the performance appraisal is normally distributed is because it is worried that the performance results are too concentrated, resulting in helpless choices. While the normal distribution does enable a distinction between performance outcomes, is this distinction a reflection of true performance outcomes? I don't know.

The most important thing in assessment is in the setting of indicators, quantitative measurement and objective evaluation. Forced assignments often mislead test takers into focusing on the endless grading battles rather than on the actual improvement of performance behavior. The implementation of performance appraisal does not necessarily require the implementation of compulsory distribution.

The authority to evaluate scores is delegated to the candidate's immediate superior, which is known as the 360-point assessment. We should have full trust in the assessee's immediate superior. Only in this way will the direct superior have enough power to control the performance of his subordinates and be objective in a relatively fair situation.

Second, the evaluation scores can be simply added to obtain the total evaluation score m, and the relative final score of the employee in the evaluation group can be calculated based on "the final score of employee A = the initial score of the employee Total evaluation score m".

Because the situation of each enterprise is different, and the status of employees is different, the degree of cooperation of employees is also different.

Because in many cases, there is no employee participation in the formulation process, which leads to the development of things that are not very reasonable, so it is difficult to improve.

Because there are too many employees in the company, there is no good competition mechanism and reward mechanism, so it is difficult to improve this performance, and people do not follow the rules.

Because the company's survival speaks with profit, profit speaks with numbers, and numbers are obtained through performance appraisal, it is recommended to try the performance appraisal management system of Guofeng Software to achieve quantitative management and speak with objective numbers.

There are some common misunderstandings in performance management, and here are eight performance management misconceptions:

1.Over-reliance on quantitative metrics: Reducing performance to digital metrics and quantitative data ignores the overall performance and contribution of employees. This focus on quantitative indicators tends to ignore the non-quantitative value and potential of employees.

2.Lack of coherence of goals: If there is a lack of close connection and coherence between performance goals and the strategic goals of the organization, performance evaluation and management will lose effectiveness. Goal setting should be aligned with the organizational strategy and adapt to the changing environment.

3.Unfair evaluation and rewards: There are issues of subjectivity and unfairness when it comes to performance evaluation and reward distribution. If there is a lack of transparency, fairness, and objectivity in the evaluation and reward process, it can lead to employee dissatisfaction and decreased motivation.

4.Lack of timely feedback and coaching: Performance management should be an ongoing process that includes timely feedback and coaching. If feedback is only provided during annual evaluations, employees are not kept abreast of their performance and opportunities for improvement.

5.Employee development and growth: Performance management should not only focus on the achievement of employees' goals, but also on the development and growth of employees.

If we only focus on the completion of short-term goals and ignore the ability improvement and career development of employees, it will affect the long-term motivation and retention of employees.

6.Shifting management responsibilities: Performance management is the responsibility of managers, but sometimes managers tend to shift the blame to employees without assuming their own roles and responsibilities. Managers should actively participate in and support the performance management process and provide necessary guidance and support.

7.Lack of communication and cooperation: Performance management requires a good atmosphere of communication and cooperation. If there is a lack of effective communication and cooperation between managers and employees, it can lead to poor information, unclear goals, and conflicts.

8.Linking performance management to compensation: Linking the performance management process entirely to compensation can lead to employees focusing too much on compensation and ignoring other important aspects such as development opportunities, work environment, etc.

Performance management should be seen as an integrated human resource management tool, not just a means of compensation management.

Performance management is an important management activity in an organization, but there are also some common misunderstandings and challenges in practice. Here are eight common performance management pitfalls:

Ignore employee feedback and opinions: Performance management is not only an evaluation of employees by managers, but also a two-fold communication between employees and managers. If managers ignore employees' feedback and opinions, it may lead to employees' dissatisfaction and distrust of performance management, which will affect the effectiveness of performance management.

Over-reliance on quantitative metrics: Quantitative metrics can provide important performance data, but over-reliance on quantitative metrics can also overlook other important contributions and performance of employees. Therefore, performance management should take into account a combination of quantitative and qualitative indicators and use a variety of evaluation methods.

Lack of transparency and impartiality: Performance management requires fair and transparent evaluations and feedback, which can otherwise cause dissatisfaction and controversy among employees. Therefore, managers should establish fair and transparent evaluation standards and procedures, and provide adequate feedback and clarification to employees.

Ignoring the growth and development of employees: Performance management is not only an evaluation of employee performance, but also a support and help for employee growth and development. If managers ignore the growth and development of the hidden chain of employees, it may lead to employee turnover and attrition, which will affect the performance and growth of the organization.

Linking performance management to compensation: While compensation can be used as a way to motivate and reward, linking performance management to compensation can lead to excessive attention and controversy over performance evaluations, which can affect the effectiveness of performance management.

Lack of employee engagement and feedback: Employee engagement and feedback can improve the effectiveness of performance management and employee engagement and recognition. If managers lack employee engagement and feedback, it can lead to employee dissatisfaction and a loss of trust in performance management.

Focus only on short-term goals and results: Performance management should not only focus on short-term goals and results, but should also consider the long-term development of employees and the long-term success of the organization. Therefore, performance management should consider short-term and long-term goals and take corresponding measures and plans.

Lack of ongoing follow-up and support: Performance management requires ongoing follow-up and support to ensure employees are able to achieve their goals and improve their performance. If managers lack continuous follow-up and support, it may lead to a loss of motivation and goal orientation among employees, which can affect the effectiveness of performance management.