F Group, A Strategic-oriented Performance Management System

The competition between corporations can be finally rested on the competition of human talents. In the last decades, human resource management has received increasing attention as a source of competitive advantage. Performance management plays a critical role in accomplishing corporate strategy, among which performance appraisal is the essence. Data from authorities indicates, it was ranked the first among the problems that puzzled the managers.There are a lot of confusions in the application of the performance management. For example, many organizations have a full set of performance indicators covering every aspects of the company, but they don't accomplish the success. Their performance management is not aligned with strategy implementation, and organizational objectives are not successfully cascaded to employees, what the employee have done even contradicts the corporate objectives.A KPI system based on organizational goals can contribute to the successful implementation of corporate strategy. This has been testified by many famous companies through their practices. KPI system combines corporate strategy, Critical Successful Factors and employee's post performance to set up a practical and operative performance management system. 80% of corporate value normally comes from a 20% critical performance, and KPI just represents this very 20% critical performances. It's really a breakthrough to the management practices and can also help to solve the challenge of management problems.This paper explains in detail the whole process of developing a performance management system in F Corporation. In this case, based on the large quantity of information collected from different ways, we analyses the problems and its possible reason in the old performance system; then in the light of KPI theory, we work together with the managers from F to set up a new system according to the corporate strategy. In the process of training to the management in F Company, we emphasize that performance management is a process rather than a result, and in which we can not only value the result itself, but we need to supervise the whole process of setting indicators, making performance appraisal and giving result feedback. It is this process thatcan help us to accomplish the corporate strategy.