The Study On Risk Of Performance Management In Power Supply Enterprise

As people study the field of human resource management more deeply, the roleof performance management in business management draws more attention day byday. People began to realize if we want to accurately measure the degree of realizationof enterprise goals and the contribution of the departments and individuals in theorganization, and if we want to determine the effectiveness of the organization’sactivities, a series of evaluation activities, which is called performance management,is necessary. Performance management plays an important role in connecting inbusiness management. It helps to achieve strategic goals that performancemanagement of enterprise is well done.The power supply enterprises constitute the pillar industry in China and theyplay an important role in the development of national economy and the daily lives ofcitizens. At present, power supply enterprises are in the early stages of restructuringand the performance management system of most of the power supply enterprises isnot perfect, so there are various difficulties in the implementation process. If we canforesee or identify the possible risks in the performance management and analyzethem in order to control them effectively, we can reduce or avoid the losses broughtby the performance management risks. The author studies the risk of performancemanagement in power supply enterprises benefiting from the theory of COSO internalcontrol system. The risk control system is proposed. It consists of five parts: theenvironment of performance management risk, the identification of performancemanagement risk, the assessment of performance management risk, the control ofperformance management risk, and feedback.The environment of performance management risk in power supply enterprisesincludes the internal part and the external part. The external environment includes therequirements from government power, as well as the pressure of the hard targets. Theinternal environment includes power supply enterprises’ company culture, organizational structure and characteristics of the human resources. The riskenvironment of performance management lays the tone of performance activities inpower supply enterprise and affects employees’ control awareness in the controlprocess of performance management. The risk environment provides the order andstructure of other elements of the performance management risk.The process of risk identification is to fully recognize the various risk factors inthe performance management process，to determine the nature of the risks and tograsp their development trend at the same time. In this paper, according to thecharacteristics of performance management in the power supply enterprise, the authorseeks for the sources of risks in accordance with the performance managementprocess and then identifies the risks.The assessment of performance management risk is to determine the probabilityof occurrence of certain risks and the losses they will cause. After the previous step–“risk identification”, we can confirm the nature of the risks and get some necessarydata, which will be dealt with some certain reasonable methods. Then we can evaluatethe probability of risk and the extent of the losses. In the paper, we propose to usespecialistic evaluation method, which is a combination of qualitative and quantitativeto evaluate the risk.The control of performance management risk is to take reasonable measures tocontrol the risks according to the evaluation results obtained after the risk beingidentified and evaluated. It should be noted that we need to make sure which positionshould take the responsibility to ensure the risks can be controlled perfectly.The essence of the feedback is communication. In the final stages of the controlprocess, we should summarize the work done before timely. Risk ManagementCommittee should inspect and evaluate the effect of the implementation of theprograms and make reasonable revisions and adjustments.To identify the risks of performance management in power supply enterprisesand take reasonable measures to prevent and control the risks timely is conductive toachieve the strategic objectives of power supply enterprises. It can improve themanagement efficiency of power supply enterprises, reduce the management costs and provide better service for the community.The innovation of this paper is that we analysis the risks of performancemanagement in power supply enterprises systematically based on the theory of riskmanagement and build a control system about the risk of performance management inpower supply enterprises. I hope the system can provide a reference idea for solvingthe problem of performance management in power supply enterprises.