A Case Study In FAW Car Company Of The Performance Management System

With the increased competition in automotive market, especially the passenger car market, the state-owned companies market share is gradually reduced, however, the FAW Car Company, as a typical representative of the state-owned companies, since 2006, the market share not only retained a place in this fierce market competition, but also maintained 40% increased.. So remarkable achievements can be attributed to FAW Car Company in 2005 to establish and implement a performance management system. So research the FAW Car Company Performance Management System characteristics, summarized their effective implementation of the key points, analyze the problems and propose directions for improvement, not only for FAW Car Company has the effect, but also for other enterprises has the effect in the performance management system implementation.First of all this article which make a case study in FAW Car Company, describe the background of the FAW Car Company , the evolution history of FAW Car Company Performance Management System, the background of the Performance Management System which this article make the case study. FAW Car Company is the holding subsidiaries of the China FAW Group Corporation, it is also the first joint-stock company of the car manufacturing in China. FAW Car Company focuses on exploring management innovation since its inception. Performance Management System is the miniature of this management innovation. The Performance Management System has gone through three major stages, the democratic appraisal stage, the plan evaluation stage and the performance management stage. And the Performance Management System has both external and internal factors. The external factors are market pressure and good vision in future. The internal factor is the perfect system. On the basis of the external and internal factors, FAW Car Company takes the overall design and step by step to implementation when it designs Performance Management System. Such as, FAW Car Company changes the remuneration system before Performance Management System. Secondly, the article analyzed and summary it's performance management system. Describe the characteristic of performance management system. The major elements as follows:(1) Take FAW Car Company as a example, this article introduced two characteristics when the performance management system sets targets. First, for the purpose of the target has effective implementation, decomposes the target level by level; secondly, focus on process-oriented. By the means of monitor the Indicators, monitor the process.(2) Performance management should be accord with the enterprise actual, don't blindly pursued the advanced theory and tools, however, should be take the most practical tools and methods. And thus, this article introduced the experience method and the department category method when determine the performance objectives weight, introduced the contrast method when determine the performance target value, introduced the layered method and the categories method when monitored the performance target, introduced the mandatory distribution method when evaluated the performance results, introduced the operating method when feedback the performance results. All this for other enterprise referenced.At the same time,this article introduced the results since implemented the Performance Management System. On one hand, it brought growth in benefit, on the other hand, it promoted the development of enterprise culture.Next on the based of analyzed the FAW Car Company's characteristics in the performance management system., this article proposed the key factors for how to effectively implement the performance management system as follow three points:(1) There should be ensured the persons who in performance management system, from the leaders to direct manager, from the organizers to the staff, have a correct roles understanding. This article considered the correct roles understanding is the core assurance to ensure the performance management system in effect.(2) There should be has a correct understanding to enterprise management foundation. This article considered the clearly strategic, the completely job management, the perfectly regime system and the strongly related system capability, are the necessary conditions to ensure the performance management system in effect. At the same time, this article by the means of conjoint analyzed the management foundation and the performance expectation, considered both two factors need to coordinate. (3) There should be has a correct understanding to environment. This article considered in the enterprise life cycle, growth stage is the best period for creating the performance management system. On the other hand, this article considered the performance management methods from western countries do not for Chinese enterprises, the reason is the cultural differences. Thus this article discussed which culture should be reflected in the performance management system, and take FAW Car Company as a case.In the article end, this article considered the performance management system which in FAW Car Company takes too much attention to enterprise business, and little attention was paid to staff capacity building. So this article raised the performance management system of staff capacity building for FAW Car Company and other enterprise to discuss and reference. Performance management system of staff capacity can also be called job qualification system, because its promotion criteria can be regarded as performance objectives, its qualifications promotion can be regarded as performance incentive. At the same time,the article introduced the operation mode of the staff capacity performance manage system from the four aspects.The four aspects are targeting stage, monitoring and counseling stage, the performance evaluation stage and the performance feedback stage.Summarized above, this article not only described the characteristic of performance manage system in FAW Car Company, but also summarized the key features in the performance management system implement. These elements provide a case for other enterprise created performance management system. At the same time, this article raised the performance management system of staff capacity building for FAW Car Company and other enterprise to discuss and reference.