J Company's Performance Management System Design

The electric power enterprises are faced with real challenges as the new round of governing system reformation is deepening. Because of the longtime planned economy, the management of Chinese electric enterprises desperately needs to be improved, and employees have been lack of enthusiasm and mindset of market competition. The question in dire need of solving is to improve the performing competences of organizations in the industry.Based on the theoretical study about performance management and the analysis of J Corporate's appraisal system, the author brought forward the systematic idea of designing the performance management system starting from the appraisal redesign with the following arrangement.The author firstly recalled the reformation of Chinese electric industry. With the separation of government function from the market function, especially when the state-owned assets supervision and administration commission of the state council supervise the divided electric power enterprises as the representative of capital, the top management must adopt a suitable mindset on their management practices.Then, the concept of performance management was introduced and the appraisal system of J Company was analyzed from the aspects of object positioning, content, appraisal method, feedback and result application. Although the current system is okay, the strategic positioning is still narrow and the system is still far from perfect.Based on the strategy, the author stated the objectives and principles of PMS design, and discussed a three-level framework of the system, then selected in a gradually extending way. In the last part, a performance management system was designed. With the thought of MBO, the author applied KPI method in composing the BSC indicators system. The employee competency notebook and behavior anchoring method in quantifying competency indicator were discussed also.