Performance Management System Desige For Frontline Staff Of Qingdao WH Company

Each employee must focus on his work like laser in order to achieve the strategic goal in the fierce competition in the global business environment. As the core of human resource management, Performance management closely linked the job descriptions, employee recruitment, staff training, reward system, target setting, staff development as the core of human resource management, which is the key to the enterprise strategic target realization.WH company is engaged in auto parts manufacturing enterprises, was founded in2005August. At the beginning, there wasn’t sufficient performance management system for the front-line staff, only simple management method. The effect is not significant to company’s operation because front line staffs number is little and management team wasn’t big. The performance management system didn’t keep up with lean organization restructure, production scope quick extension; many problems about the front line’s performance management are highlighted.The performance appraisal system is not sufficient, the problems on the disconnection between performance appraisal and the corporate strategy, appraisal process is biased fairness, lack of monitoring, evaluation period is too long, lack of feedback of appraisal results, unable to motivate employees, application of the assessment results of one-sided and so on, which has seriously affected the enthusiasm and morale, the employees satisfaction decreased, the high turnover rate within front line employee, low work efficiency, many work overtime, caused the WH company’s indicators can not be completed with high cost, low quality, late delivery problems, company’s competitiveness is losing, all those above are main obstacles for future development of company’s businesses. Establishment and optimization of the performance management scheme of front-line staff have been imminent.Based on the related performance management theory and the domestic and foreign advanced research results, we analyzed WH company performance management problem of front line staff, found root cause through the questionnaire survey, interview methods and so on, we designed the simple scientific, reasonable, easy implement’s front line staff performance management scheme. In the system, we aligned with lean enterprise’s value stream structure, broken down the company strategic target to the front line team goals, combined with employee’s work requirement; we set key performance indicators for front line staff, definite performance appraisal standard, assessment cycle and the appraiser requirements.We integrated informal, formal, written records methods to enhance employee performance communication and feedback in line with the principle of fair and total employee involvement, all performance appraisal results must based on facts and data, managers and employees to develop performance improvement actions and employee development plan together, then tracking the effectiveness of their improvement.The results of performance appraisal are applied all process of human resources management, including employee recruitment, training, performance improvement, post adjustment, salary management, employee development and so on. WH’s performance management reflects the core value truly, with its function, we enhanced the company performance along with front line staff capability and performance increased, realized the sustainable development of the company.In this paper, the main innovation of the system can be seen as integrated the balance scorecard and key performance indicators in WH’s front line staff performance management. We cascading continues downward until each front line staff has a set of goals compatible with organization’s strategic target in accordance with the four dimensions of financial, customer, internal process, employee growth, combined with front line staff’s job responsibilities, from the two dimensions of employee performance, employee development potential, four levels key performance indicators including work performance, work attitude, multi-skills, competence. In order to enhance team work within front line, align personal goals with team goals and company’s objectives, we appraisal individual performance combined with team’s performance, employees must consider team’s performance by improving individual performance; all front line staff involved in the performance management process, we take two-way communication to make all related staff to full understand the performance management scheme and reach an agreement during performance planning, implementing, appraisal result.This paper presented the research and development of front line staff performance management system of WH Company by combining advanced performance theory with the reality of lean manufacturing enterprises. The system provided a method for top down alignment of organizational objectives based on WH Company’s culture and vision, strategic purpose. We encourage all staff growth and development with organization together, clearer responsibility and performance management process that enhance the system implement effectively, we explored new ideas for front line staff performance of lean manufacturing enterprise.