Huajian No.1 Company Based-KPI Performance Management Research

Enterprises are an important part of the national economy system and one of the pillars of the industry. Construction enterprises are the typical capital-intensive, technology-intensive and labor-intensive industries. It is relative to not only the construction industry but the majority of the people's lives. In order to adapt to the new situation and the needs of the market economy and to win the competition in the market, it is necessary to reform in management structure which is conductive to the creation of good talents Selection and employment mechanism. In the process, performance management reform is difficult. How to change this situation? The way to enhance staff performance is the hardships and challenges which China's construction enterprise human resources management is facing.This paper is mainly concerned with the design and implementation of performance appraisal system of Huajian No.1 Company. The author has related Huajian No.1 Company's reality with MBA study that he has received, adopted advanced performance appraisal method and thinking. Finally he has designed a targeting performance appraisal system and guided its implementation. All of these are based on the strategic goal and characteristics of business and personnel of Huajian No.1 Company.The text was divided into four chapters:ChapterⅠThe existing problems in the management department of Huajian No.1 Company.In this chapter, the situation of the first company in China was overviewed, including the company's general overview, the company's organizational structure and human resources management status. And then the problems exposed in the human resources management and the performance management were analyzed. We also list the existing problems in the performance management.At the corporate level: unclear corporation goal, lack of performance appraisal and reserve personnel, loss of the serious staff, salaries failing to encourage, and so on. At the departmental level: the serious problems in communication, lack of awareness of guidance, management and coordination, the serious selfishness departments and departments function conflicts in some cases.Staff level: unclear responsibility of job and duty, unclear workflow; lack of communication between staff and department managers, delayed feedback; staff satisfaction Low, low efficiency.Chapter II. Analysis of the performance management problemsIn section I, the first analysis pointed out that the performance and objectives of the organization lack of consistency and accuracy, performance management lack of accuracy and the design of indicators for accessing lack of clarity. Second, performance managements focus on the process and ignore the results. Rewards and punishments are the purpose. There is no real participation of staff. It lacks of performance evaluation correction and reform measures. In Section II, the performance evaluation mechanism was analyzed. First of all, performance evaluation feedback mechanisms lack of effective feedback mechanism. The performance feedback was neglected because of the concept confusion. Secondly, the company's performance evaluation mechanism lacks of incentive mechanism, mainly due to the performance evaluation system design and operational deficiencies. The final chapter pointed out the performance appraisal process is a mere formality. First of all, the main responsibility of is not for sure. Responsibilities at all levels in charge of performance appraisal are not clear, the departments regard performance management as a single human resources department, ignore the real consultant role of human resources staff. The chargers of grass-roots shirk the responsibility of the staff appraisal. The information of the corporate performance was not fully used, which lead to lower quality of work performance the information in performance assessment and evaluation.Chapter III. China to build a company based on the KPI performance appraisal program designIn the first part of this chapter, the key performance indicators law was cited. We should grasp the achievement of performance targets key performance indicator in order to ensure the reach of individual performance and achievement of organizational goals. The concept and the core concept of KPI were introduced. Then identified KPI targets should be adhered to the principle, the principle of SMART, as well as the establishment of a just, communication. Second, the general idea (SWIH)was determined; KPI targets selected to grasp the main points: the management of indices, indicators of growth, coordination and indicators Profit targets; determine KPI indicators: enterprise-level KPI, project manager-level KPI and the ministerial-level staff KPI; determine KPI steps: Identification of the company's goal, KPI key performance indicators; analysis of the process for the department managers and staff; determine the objectives, evaluation criteria set; analysis of the relationship between the departments and progress to identify the targets of sectors.In the second part of this chapter, the detailed KPI system was designed:At the company-level, according to the characteristics of the construction companies and China to build a performance management, from the enterprise's competitiveness, capacity development, management, operational efficiency, the level of contribution to society, and other aspects of indicators, there are eight kinds of indicators was designed to adapt to market economy and the ability : the core competitiveness of enterprises, total contract capacity, the level of corporate governance, the sustainable development of enterprises, enterprises operating efficiency, capacity growth, social contribution.At the project manager -level, according to the nature of their business and output, the performance indicators of project managers focus on performance indicators. Ten different kinds of project manager-level KPI indicators were decided.At the employees -level, according to the classification of positions in project-level departments KPI targets, the company's business, administrative and back office staff in the department of performance indicators was determined respectively. The staff-level KPI targets were designed according to performance indicators and the ability to approach targets.Chapter IV. China to build a KPI's evaluation program and the implementation of securityFirst, the company's preparations for the implementation of performance appraisal was pointed out, including the relevant training programs for KPI performance appraisal, the training of the performance evaluation system. This was followed by the program performance counseling. The company's KPI preparations for the implementation of the program evaluation were illustrated. The implementation of KPI need for effective performance feedback. Performance feedback and performance feedback face-to-face performance were the effective way to find the problem and take corrective measures, as well as to improve performance. In the second part of this chapter, the protection for KPI's evaluation program was introduced. The first protection is on the organization of the performance appraisal system. The performance evaluation committee was established. From the corporate level and at the departmental level, as well as the establishment of the appropriate level of staff, performance evaluation units as well as the company's security system were built for performance appraisal and performance management. Finally, it is necessary to pay attention to communication and coordination.In this paper, the authors build a KPI key performance indicator. The performance appraisal system is a basic framework designed according to the performance management of China to build a company, but that is a reference for construction enterprises, especially small and medium-sized construction enterprise. From both theoretical and applied, the authors also hope to apply favors to the research for performance management.