Performance Appraisal And Countermeasures Of Service-Oriented Enterprises In The State-owned Group

Peter F. Drucker once said that:‘if you are unable to evaluate things, you can’tachieve a goal of enterprises’ management’. Performance management&appraisal hasbeen regarded as an important means by the enterprisers. Concluded from the practicalresults, performance management of the foreign-investment enterprises is comparativelysound and well implemented. However, performance management is not so satisfactory forthe domestic enterprises, especially the state-owned enterprises. I think it has the closeconnections with the customs and the distinguish features of China, such that people paymuch attention to the social relationships to avoid exposing others’ mistakes withoutsparing their sensibilities; nepotism is another factor to affect the impartiality ofperformance appraisal; HR staff’s professional level is not good enough to meet the highrequirements of performance appraisal etc. All the above reasons make performancemanagement become a mere formality of bonus allocation.This paper aims to put forward consultative opinions on how to set performancecriteria, how to improve performance appraisal measures and how to enhance performancemanagement for the subsidiary companies of large and medium-size state-ownedenterprises/groups by analyzing the current situations of performance management of Scompany. It begins with a brief historical overview of S company’s performancemanagement, adopting questionnaire survey, group discussions and individual depthinterviews, to explore the employees’ attitudes towards the current performance appraisaland the fields to be improved, summarizes its experience and positive effects. Mostimportantly, it also discloses the existing problems of performance management of Scompany, such as ‘all the employees get the average bonus no matter what they havecontributed to the company’; KPI needs to be further defined and weighed; employees’feedback needs to be applied to the performance management more thoroughly.By exploring the weakness of the enterprises’ management, this paper holds a viewthat ‘Renovation of performance appraisal can’t be accomplished unless we can change ourmind and reconsider it out of its limitation’. In addition, performance management requiresthat corporate culture is established and acknowledged. All the employees are ready toaccept such kind of renovation.Performance management is just like a double-edged sword, which can make theenterprises go further and develop prosperously when it is well implemented. Otherwise, itwill foul up the employees’ initiatives and lead the enterprises to the opposite direction. Inmy view, people-oriented concept should be taken as one of the principles for performance management by cultivating high-quality professional managers. Only if they comprehendthe true meaning of performance management, should state-owned enterprises be able tomake a breakthrough with its development.