Improve And Redesign Company Z’s Employee Performance Management

Performance management is an important part in modern company, because It is not only central content in human resource but also main job in company management due to the fact that the how well employee perform in company influences directly on company’s performance. The research objective in my essay is company Z, a wholly state-owned and modern service company in a Institute of AVIC. After years rapid development, this company becomes huge and diversified company whose services range from aviation estate, construction, property management, hotel, transportation to construction material trade. However, a companying problem occurred and bothered company’s managers during its rapid development,that is they encountered the bottleneck in performance management.As a result it is imperative to the managers to improve the efficiency of that performance management.My essay starts from redesign of Z’s performance management mechanism and finally focuses on solution to performance management. First thing need to do is to learn relevant theories and to understand how to utilize these relating management tools including Management by objectives, Key performance indicators and Balanced Scorecard. Secondly, learn and understand the current incentive mechanism of Z company in order to find out the real problems this company faces. After research several problems were found like that performance management is not suitable to company’s development strategy, the notion that equate performance management to merely assessing employee’s performance, scientifically weakness of performance management, inappropriate choice of objective in performance management, that setup appraisal mechanism insufficiently, limitation of use of assessment result and not enough incentive effect on employees. Many factors are able to make these problems happen. Primarily, a huge divergence about how important incentive mechanism is in company’s strategy lies between managers and employees. Secondly, designers usually neglect thorough, systematic and macro consideration in designing incentive mechanism. From those problems aforementioned, a redesigned mechanism is given in my essay. This system is based on Balanced Scorecard, and massive use of KPI. What is more, some measures should apply, such as enough rules, human resource and culture backup so that it possible to establish performance-oriented management system and this mechanism entrenches leading position improving management standards and gain new competitive advantage.The program of state-owned enterprise performance management, logistics services sector,the work has some value and significance.