The Research On Performance Management System For X Life Insurance Company

With the opening up of China’s insurance market in recent10years, the traditional domestic life insurance market is undergoing an increasingly fierce industry competition bought about by foreign life insurance companies. The core competition of life insurance company is ultimately reflected in the competition of human resources which in the final analysis is the competition of the corporate performance management capability. As a manifestation of the company’s comprehensive strength, performance management has been increasingly subject to the attention of life insurance companies. Whether for domestic or foreign life insurance companies, establishment of an effective performance management system that is in line with China’s national conditions and suitable for the company’s development strategy will have important practical significance in improving both management efficiency and core competitiveness of enterprises. Moreover, it is also a necessity for maintaining sustainable operation and enhancing the intrinsic value of a company. Therefore, the study of the use of performance management in the actual operation in life insurance industry will have a positive significance for both theoretical study and practical operation. X Life, as one of the first batch of foreign life insurance companies since accession of China into the WTO, has been upholding the sound development strategy during the previous decade. On the second decade of development conference, the Board decided to adopt such a development strategy as to speed up pioneering institutions, enhance the performance scale and maintain the priority of effectiveness, leading the company into a stage of rapid development. At the same time, the existing performance management system has become increasingly difficult to keep up with the pace of reform and the negative impact thereof on the development of the company is becoming obvious.X Life Insurance Company is used as a object of study in this paper and its existing performance management system is analyzed by means of empirical analysis, documentary research, questionnaires and interviews etc. In order to solve the problem found in the said analysis, the performance management system of X Life is optimized in this paper based on relevant performance management theories and successful performance management experiences both at home and abroad. The following seven main problems are found based on questionnaire survey and interview with the staff with regard to current performance management situation in X-Life:the performance management system is imperfect with little effect in achieving strategic goal; the KPI Indicators is not scientific enough and the results-orientation effect is poor; basis for performance evaluation is not sufficient and the evaluation power is unfairly centralized; application of the results of performance evaluation is limited just only to material excitation; implementation process of performance management is defective, with emphasis only on evaluation and less attention to other aspects; measures to ensure implementation of performance evaluation is not sufficient with no complaint mechanism; responsibilities of management in terms of performance management is not clear and the concept of performance management is weak.Based on in-depth analysis of the existing problems and causes in X-Life’s performance management, a performance management system that is in line with X-Life’s strategic development is re-built in this paper. New KPI Indicators is established to balance the relationship between results and individual departments so as to ensure results-orientation. A360-degree annual examination is adopted additionally to increase basis for performance evaluation. In addition, the application scope of the results of performance evaluation is extended in this paper which heightens the intrinsic motivation of performance management. Also, performance management competency training is enhanced for management and complaints system is established to ensure effective implementation of performance management. Due to the complexity of the work of performance management, performance management implementation process will be subject to company management capabilities, corporate culture and many other factors, so the results may vary. In addition supporting measures for implementation of performance management in X-Life are somehow analyzed in this paper and suggestions are given.The study carried out in this paper may improve the management efficiency of the X-life insurance company and enhance its core competitiveness, so that it can stand in an invincible Job in fierce market competition. Furthermore, conclusions of this study may also serve as a reference and guidance for companies in life insurance industry when developing their own performance management systems.