| Considering the importance of Material Department in daily operation, this paper studies the performance management in Material Department in a wholly owned foreign invested company in Suzhou by US. It takes the procurement team in Material Department as an example, with supporting from the HR, and encouraging the material staff to figure out the draft responsibilities, the special skills & education or training background for each specific positions themselves firstly, with reference to the company strategies, to mutually define the principle roles & requirement for each positions by both the manager and the staff, and to list up the rooms for improvements as well. By studying the specific issues, to dig out the root cause behind, and work out the appropriate theoretic models according to SMART principle, to make KPIs action plans, starting to measuring the KPIs in the department, by practicing of different ways of communication with respecting the individuals, to make mutual ways communication more constructive, and meanwhile, to make sure the outstanding problems or issues that the team is facing can be resolved & communicated in a timely manner, and to organize periodic team reviewing meeting for the progress monitoring, encouraging or awarding the good performance or good result, and taking actions to stop the bad manner or activities timely, by doing so, the team is getting more and more focus on the issues resolving, and all the staff started to focus on their daily operations result & business goals themselves, and of course their performance improved from day to day. The case shows that performance management is a good tool for system management and performance improvement, if we can implement it in a constructive way, it will help quite a lot for the management improvement. |