Research On Performance Management Improvement Of XG Company

Since the issue of "State Council's Opinions on Dealing with the Overcapacity and Realizing the Rapid Development of Steel Industry" in February 2016,2016 and 2017 had become two critical years of great reform and promotion in reducing overcapacity of steel.From the effectiveness of this policy,it is noted that the contradiction between supply and demand for steel was gradually alleviated and the price of steel rebounded as the overcapacity of steel was reduced.Consequently,the expected profit space of steel enterprises increasingly grew and the industry showed a continuous warming trend as a whole.As China's economy gradually enters the new normal economic state and the competition among domestic and foreign markets is becoming more and more fierce,enterprises must continuously improve their strength to adapt to the fierce competition if they want to develop.An important way to improve the core competitiveness of enterprises is to establish and improve the company's current performance management system.Firstly,this paper defines the related concepts of performance management and introduces the theoretical basis of performance management.The first-hand information was obtained after the survey of the XG company,and the current situation of this company was analyzed in detail from the organizational structure,performance management tools,processes and performance execution results.The following problems existed in this company were identified based on the interviews: a disconnection existed between the objectives of departments and the company due to the lack of process control;the target values were not adjusted in time because of the lagging performance management mechanism;difficulty of inter-level coordination existed as a result of the insufficient information feedback;the effective encouragement was failed due to the use of a single performance evaluation method.To improve the effect of performance management of the company,this paper suggests introducing the Objectives and Key Results(OKR)method into the existing performance management system that uses the Key Performance Indicators(KPI)as tools,combining the two performance management tools,setting annual performance targets through KPI for long-term management,determining the general direction of company performance development,and then using OKR for short-term process management.In the stage of performance planning,the tool can promote effective communication between higher and lower department levels by setting goals,key results and setting challenging goals together.In the performance implementation stage,the process control and timely tracking of market flexible regulation can be fully realized through adjusting the performance target value in a quarterly cycle and establishing a performance disclosure platform.In the performance feedback stage,the company's performance management and profits can further be improved when the improvement mechanism of the performance system is established and the results of performance evaluation are comprehensively used.As a traditional state-owned steel enterprise,the XG company needs to improve its performance management system so as to enhance its market competitiveness in the face of fierce market competition environment and more standardized industrial order.In this way,it is able to stand out among many peers and achieve the company's strategic objectives.By introducing the OKR performance management tool,this paper hopes to improve the performance management level of XG company and provide some references for the performance management of various industries.