Research Of Performance Management System Based On ZK Company

With the advent of economic globalization and the information age, economic environment has the characteristics of great uncertainty and the competition between enterprises becomes more and more intense. The outbreak of US financial crisis swept the globe rapidly in 2008, many companies which lacked core competitiveness faced bankruptcy in crisis. Faced with this situation, surviving companies come to realize that companies with core competitiveness can survive for a long time in the economic environment which changing strongly. Therefore, to enhance the core competitiveness has become an urgent problem, every firm must consider how to improve their core competitiveness in order to meet market demands. In the 21st century, with the development of economic globalization and knowledge economy, competition between countries increasingly focus on knowledge and talent. Competition among enterprises has changed from the resources and channel to talent, because people are carriers of knowledge and have great initiative. So to enhance the core competitiveness of enterprises, it is necessary to start from the talents and try hard to improve quality of employees. As the core and basis of human resource management, performance management can greatly stimulate the enthusiasm and potential of the staff and then increase the capacity of employees, therefore performance management plays a decisive role in the enterprise and is the key to success.Performance Management theory already has developed several decades in foreign countries. It is not only widely used in corporate, but also in government and associations etc. Nowadays, a wide variety of organizations are using performance management theory in the assessment and management of their work actively. Since the 1990s of last century, many Chinese companies are starting to pay more attention on performance management, and gradually establish performance management systems in the enterprise. In these companies, many have achieved success to a certain extent, but at the same time there are many problems exist in the majority of these enterprises.As the study object of this paper, company ZK was founded in 2003, is a high-tech enterprise. Its main business is information security products. In recent years, external environment of the company ZK become better. The company seizes the opportunity and has achieved good operating results, operating profit increased year after year. In this context, company ZK did not put enough attention on performance management, which resulted in the fail to establish a good performance management system. In addition, there are many problems in the implementation process and the final effect of the performance management. Most of the rapid development of Chinese high-tech enterprises are also facing such problems.Therefore, this study expect to achieve the following two objectives:(1) In order to provide reference for the improvements of ZK’s performance management and improve its core competitiveness and achieve its strategic objectives, this paper put forward specific countermeasures on the base of research and analysis of the problems existing in the performance management system. (2) This study will provide a reference for the high-tech enterprises of which the performance management system implementation is not satisfactory. The same types of companies can develop their own performance management system on the base of their characteristics according to this study.Text of this paper is divided into five parts, as follows:The first part is an introduction. In this part the paper elaborates the background and significance of this research at first. Then the paper reviewed domestic and foreign research literature. Since the general workers are different from knowledge workers in many aspects, the literature review has also noticed the difference and made a classification. Also this part introduced research mentality, research technique, main content and framework.The second part is the performance management theory summary. In this part the article introduced the three kinds of theory about performance management at first. Then this part elaborates five processes of performance management, involving performance planning, performance implementation, performance evaluation, performance feedback and the application of evaluation results. In addition this article described four methods of performance evaluation, such as Key Performance Indicator, Balanced Score Card, Management by Objective and 360-degree performance evaluation method. Finally this part describes typical cases of performance management——Performance Management of Huawei from two aspects.The third part introduces ZK company profile from four aspects:the company’s basic situation, operating characteristics, the company’s future development strategy and the advantages and disadvantages of the company. Then elaborates the current status of the performance management of ZK company, including main body of performance appraisal, the content of performance appraisal, the communication of performance, the use of performance evaluation results and the implementation of performance management. Finally considering the actual situation of company ZK and the corporate performance management theory, this part mainly analysis the problems existing in terms of performance management, including performance evaluation index design is unreasonable, performance communication is not smooth, the application of performance evaluation result is single, the security measures of performance management is poor. At the same time, this part analysis the causes of these problems in depth.At the fourth part, how to optimize the performance management system for ZK Company is discussed in detail based on the summarized theories of performance management and the situation where ZK Company stayed at. This paper is also focused on this chapter. In this part, the article put forward four specific countermeasures. The first countermeasure is the optimization of assessment indicators. In this section, this paper designs the performance appraisal index from two aspects:sector and staff. After the establishment of performance evaluation index system, this paper apply AHP to determine performance evaluation index weight coefficient. The performance measurement form for both departments and junior staff can be made out since the indicators of performance measurement and the index weight are indentified. In addition, the other countermeasures are strengthening the communication of performance, extending applications of assessment results and improving safeguards of performance management.The fifth part is the conclusion. In this part the paper summarized the problems existing in performance management system of company ZK, the corresponding optimization measures and some aspects need to be improved.