| The21st century is the century of globalization. It presents unparallel challenges to Chinese entrepreneurs. They have to deal with not only the increasing internal competitive pressure, but also pressure brought by foreign rivals. While technology, capital and management play a crucial role in this ruthless competition, it is fundamentally a competition of human resources as technology develops. In order to be competitive, a company should manage its employees well, letting everyone of them fully function. Thus motivating employees and improving management skills shall be companies’priority. One productive way to give employees incentives is performance management.Tiantai Company saw some desired effects after switching to performance management in2009. Yet there are still many problems:the communication between leaders and employees sometimes is not efficacious; it is hard to track performance for a long time; monarchy makes it possible to not pass the true results to management level; management itself can be very inefficient. Tiantai Company could not effectively motivate its employees, improve its management, and become competent through performance management. Judging from the current situation of Tiantai Company, the performance management needs improvement.By studying the performance management system of Tiantai Company, this paper elaborates various problems that could emerge when companies employ the performance management system. Furthermore, this paper also proposes modifications to the existing performance management system at Tiantai Company by combining the theories from related literature and the current situation of Tiantai Company. This paper proposes modifications to every step in performance management system--making plans, executing plans, examining performance, reporting results and rewarding employees accordingly. Hopefully this paper could provide a helpful insight for Tiantai Company to effectively utilize the performance management system. |
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