The Research Of Performance Appraisal System For Ningbo Shenzhou Knitting Co. Ltd.

Performance appraisal is the process about how the organization observes, measures and appraises the performance of its employees including their behaviors and work outcome by checking the standards from their jobs description. It is one of the key areas regarding the management improvement.Ningbo Shenzhou Knitting Ltd. Co. is the largest vertical knitting manufacturer in China. It is a typical private enterprise in China. Along with the fast-growing of the company and the recruitment of many young employees, the current performance appraisal system has exposed many issues such as the poor support to the strategies and culture of the company. Meanwhile, the system is not fair and transparent enough. All of these issues cause the high staff turnover and the decreasing of the customer services quality. From the outcome of the employees'satisfactory survey, it indicates that the employees are not satisfied with the performance appraisal system of the company.The design of the new performance appraisal system is based on the four basic principles: equal, the link between appraisal and salary, information sharing, knowledge development. The design of KPIs of the appraisal system follows up the SMART principle. The new performance appraisal system includes salary structure, year-end appraisal, performance rating and internal review, etc.The management must pay attention to the factors related with the human resources management, managecial skills for appraisal management staff and the tactics to execute the appraisal system.The company has its original functional organization structure to business division organization structure. What's, it has implemented the new performance appraisal system in the business division No. 3.