Design Of Hk Company’s Performance Management System Based On Kpi

In terms of the current theory of performance management, performancemanagement is not only just a system to manage employees’ performance, but also usedto promote enterprises to realize the strategic goal. However, in fact, many enterprises,who have implemented the performance management, find that they don’t achieve thepredicted goal. Instead, the implementation of this system causes increase ofmanagement cost and brings the burden to staff at all levels. Therefore, it is vital for thecompany’s development to establish a set of scientific and perfect, effective performancemanagement system according to the company’s practical production and operation.HK Limited Liability Company is a traditional state-owned enterprise whichproduces a full range of high and low voltage circuit breaker switches and cabinets. Butnow it is in the situation of low level of technology and dilemma of production andmarketing due to various reasons. Since starting the implementation of performancemanagement from2001, it has experienced more than10years. During the period,departments and personnel, as well as the performance appraisal methods, have beenchanged a many time. But the effect is not obvious. The company’s profiles and realityshow that various factors have hindered the implementation of performancemanagement system, which includes its historical heavy burden, inflexible mechanism,frequently changed institutions, and obsolete product types and so on. What’s more thelevel of HR management in the company is low, staying in the traditional personnelmanagement stage. The established performance management system is not scientificand efficient. As a result, it practices formally. This not only affects the staff’s initiative,but also restricts the company’s further developments. In addition, because HKCompany is currently in the process of restructuring, a mass of civil servants playing adominant role has also led to the special issues in the company’s performancemanagement.How to carry out the performance management well in HK Company becomes akey issue. Through the case studies and analysis of the HK company’s performancemanagement work, this paper finds out some problems and deficiencies existing in theimplementation process of HK Company’s performance management system, especiallyin the construction of performance index system. Combined with the studies andanalysis, this paper put forward some relevant solutions. Based on the current theory ofperformance management, through the comparison of various performance differencesin technique, this paper presents the KPI as the core in order to construct the indexsystem of performance management of HK Company. Setting specific departments andindividual positions as an example, this paper explains the KPI index systemconstruction process. Further, this paper provides some suggestion on how to do a goodjob in the company performance management and other aspects of the work.