An Improving Method Of Performance Management Based On The Problem Of HY Company

HY Company is the largest beer manufacturer in Hunan province, south China.During these years, it developed fast, because of its performance management system.Most indicators，especially the financial indicates were improved obviously. Howeversuch a management methodology wasn’t so clear. The main KPIs were not related tothe operational strategy, annual managerial schedule or the regulations of the company.Performance management was divided into several independent modules, and operatedseparately. The motivation policies were all based on short term object, so the long termtarget were overlooked. The moral of most of employees were very low. They lost theirenthusiasm on their job.By learning the problems of performance management system, this work hasdeveloped an improved performance management system for this company. It is basedon BSC, strategy management and motivation theory. This system repositioned HYCompany’s performance management, built a systematic management skeleton，including three hierarchy：the top managers，the middle managers and the employees.Every KPI or KPA is connected to the strategy and annual managerial schedule of thecompany, and the responsibility of every department. We have developed five workingmodule of performance management system: job responsibility, indicator system,performance monitoring, motivation method and improving frame. The performanceevaluation is carried out annually and monthly to every member of the company. Moredepartments participate in such a work professionally.After one year’s practice, the employees have got more passion on their job. Theoutput and revenue rose and surpassed it annual target. The respond speed ofmanagement department has accelerated. Most regulations and processes are under control. The supervisors take more time to stimulate and check their underling workrather than do anything themselves. The employees are trying to find any way topromote their indicators. This performance system has helped HY Company to achieveits operational object, monitor its processes and regulations, and stimulate itsemployees.