Design Of Performance Management System Based On The Company's Strategic Objectives

Performance management is a perpetual issue for any enterprises, and still the most challenging work for any HR managers in China. As a state-owned monopoly, the electric power companies are facing the same situation. The previous studies on performance management have rarely focused on this particular field; therefore, the author attempts to concentrate on this area in which he has been working for more than a decade. After the necessary survey and followed analysis, the author aims at establishing KPI series based on the company's business objectives and formulating a performance management system on the basis of the national standard. By putting theories into practice, basing on the State Grid Corporation's business objectives, considering the country's national conditions and the features of the electric power industry, the author is attempting to establish a performance management model for a power supply company. The design of the model shall apply the BSC, employ the benchmarking method and make full use of the theories in performance management.The findings of this study are as follows. Firstly, although the enterprise has done a lot to establish the system of performance appraisal as well as that of rewards and penalties, generally speaking, it is still in short of a holistic performance management system.Secondly, before the design of the performance management system per se, some prerequisite work has to be done: analysing the company's objectives, establishing efficient organizational structure, finishing job descriptions and raising the employees'consciousness about performance management.Thirdly, the design of the system must be based on the company objectives, making use of the role of BSC as an instrument for transmitting objectives. The relation between KPI and BSC should also be considered in order to formulate KPI series.Finally, the finished performance management system must be a complete cycle, with the performance contract as the managing key for each administrative layer, the appraisal result as the basis for the subsequent management, and employing the national standard in its final evaluation.