| For the needs of scale enlargement and internal and external risk supervision in insurance industry, a municipal insurance institute begins to implement the working mode of "centralized operations and vertical management". Under this mode, assessment and management rights of employees in the underwriting and claims departments of the municipal insurance institute are divided to be managed by provincial counterparts, but the preparation and the daily work of employees are still in the municipal company, thus no need of the previous performance appraisal is formed in this case. In this paper, the analytical investigation is made on the design of performance appraisal system under this mode, aimed to design a new performance appraisal management system that conforms to the overall strategic development of the company and improves the level of performance management based on analyzing the deficiencies and shortcomings of original performance appraisal system, and through research and comparison of the data, the feasibility of establishment of new performance appraisal is tested under the current operating mode.Empirical method is employed in the full article to study. A comprehensive collection of daily operational data and performance appraisal data in claims department and underwriting sector of a municipal insurance company from 2014 to 2015, and a comparison is made on overall completion of performance targets in the company. Strengths and weaknesses of the existing performance appraisal system are firstly analyzed by data in 2014, and this paper provides direction and advice on reform, to design a new performance appraisal system on this basis and compares sperformance results in 2015 under implementation of the new appraisal standards to test the advantages and improve results of the new performance appraisal system, as well as the improved degree of effectiveness in practice research.In the data analysis, we have found that in the existing performance appraisal system, the design of key performance indicators for the provincial claims department and underwriting department as the main body of appraisal starts with the work of the department, and this arrangement of key performance indicators is aimed to improve the level of the sector, while appraisal subject is only limited to competent department in the provincial enterprise, without involvement of other subjects. After implementation of this performance appraisal system, performance evaluation results of the employees in departments are excellent, but the company’s completion of overall performance objectives is unsatisfactory. This is because in the existing performance appraisal system, the sector performance is detached with the company’s overall strategy, bad cases occur; for example, the appraisal subject emphasizes professional skills but ignores the overall development of the company and focuses on short-term performance but ignores long-term performance; these drawbacks need to be improveed through the reform in the performance appraisal system. The newly designed performance appraisal system is based on the company’s overall strategic objectives, divided to departments and employees stage by stage, to reach the unity of three levels of company, department and employee on the target establishment. Appraisal subject introduces all-directional appraisal system based on the original combined with key performance indicators to assign weights reasonably. Meanwhile, in the application of the results of the assessment, a new salary system and staff promotion channel is designed. Such a design system, after comparing assessment results, has confirmed its rationality, able to effectively improve the level of performance management.In the data analysis, we have found that in the existing performance appraisal system, the design of key performance indicators for the provincial claims department and underwriting department as the main body of appraisal starts with the work of the department, and this arrangement of key performance indicators is aimed to improve the level of the sector, while appraisal subject is only limited to competent department in the provincial enterprise, without involvement of other subjects. After implementation of this performance appraisal system, performance evaluation results of the employees in departments are excellent, but the company’s completion of overall performance objectives is unsatisfactory. This is because in the existing performance appraisal system, the sector performance is detached with the company’s overall strategy, bad cases occur; for example, the appraisal subject emphasizes professional skills but ignores the overall development of the company and focuses on short-term performance but ignores long-term performance; these drawbacks need to be improveed through the reform in the performance appraisal system. The newly designed performance appraisal system is based on the company’s overall strategic objectives, divided to departments and employees stage by stage, to reach the unity of three levels of company, department and employee on the target establishment. Appraisal subject introduces all-directional appraisal system based on the original combined with key performance indicators to assign weights reasonably. Meanwhile, in the application of the results of the assessment, a new salary system and staff promotion channel is designed. Such a design system, after comparing assessment results, has confirmed its rationality, able to effectively improve the level of performance management.The operating mode of "vertical management and centralized operations" in the insurance company has a certain degree of particularity, but with the development of the insurance industry, there is a growing pressure on supervision. This mode has also been widely recognized nowadays, and especially it has inherent advantages in risk control, greatly reducing the risk of business operations. Nevertheless, employees performance management under this management mode is also in the stage of exploration and development, and this model emphasizes the philosophy of provincial vertical management. The performance management practice proves that there are greater shortcomings, and it can not meet the needs of the company’s development, thus it needs to be improved and strengthened. It is thus evident that no matter what kind of operating mode is adopted, the design of the performance management and evaluation must also meet the need of complying with the company’s overall strategic development. At the same time, after the implementation of newly designed performance appraisal system, performance evaluation results of the staff have maintained at a higher level than before, while the company’s overall target has been increased significantly year on year. It is thus clear that under this operating mode, the existing contradictions can be effectively solved by improving the design of the performance appraisal system.This paper has discussed the issue on design of performance management system for departmental staff under the mode of "vertical management and centralized operation" theoretically, analyzed the disadvantages of the existing performance system, and on this basis, solved the practical difficulties in the performance appraisal taking into account of requirements at all levels to design new performance appraisal system, whih has been applied to the actual work of an insurance company’s performance appraisal. Improved results in performance management have been achieved, with both theoretical and practical significance. |
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