Research On Improving Project Of Employee Performance Appraisal Of TDQS

The 21 st century is an era of market economy. For modern enterprises who want to survive in the complicated market environment, management is more important than technology. According to the modern management principles, performance appraisal is the most important and difficult part of the enterprise management. A good performance appraisal system can effectively motivate the staff and achieve a win-win situation between the employees and the company. Without an effective performance appraisal system, enterprises will lack of energy, which will absolutely affect the realization of the overall goals of the company. But performance appraisal system does not always remain the same. With the development of the environment both inside and outside of the enterprise, performance appraisal system needs be improved accordingly.This article takes Tianjin Tiandaqiushi Electric Power and New Technology Co.,Ltd(hereinafter referred to as TDQS), the firm I work for, as the research objective. This article summarized the development process of performance appraisal in TDQS. Based on the company's position sequence, it has further studied the performance appraisal status quo of sequence development, project implementation sequences and sales position sequence employees. For the research of appraisal status quo, we adopted the method combining qualitative research and quantitative research. Qualitative research includes the SMART analysis of the indicators for performance appraisal and analysis of assessment criterion's reasonability. Quantitative research contains performance appraisal's impact on employee compensation and corporate profits, and satisfaction survey on the assessment results. Through the research of the appraisal status quo of each sequence position, this article summed up the problems in performance appraisal. Performance appraisal indicators of research and development sequence positions perform practically no function and are always delayed, so these indicators can't exert significant incentive effect to the employees' short-term behaviors. Project implementation sequence position failed to seize the real KPI, attaching too much emphasis on the completed, while ignoring the costs. Sales sequence position's indicators are too scattered and the appraisal is comprehensive but has no key points. In order to better adapt to the change from both internal and external market and motivate employees' potential to the utmost, this article conducted the revision of the indicators according to the problems existing in the above three positions' appraisal status quo. We adopted many kinds of performance appraisal methods to revise the indicators, such as 360-degree appraisal, key performance indicators, forced ranking and so on. Eventually, the research and development position's monthly appraisal was cancelled. R&D achievements will be assessed on a quarterly basis. We will assess gross margin of project implementation position and assess project amount and return amount of sales position. Besides, elimination criteria for every sequence position were established, which made the appraisal more directive and appraisal results more fully used. The revision of the indicators was completed in May, 2013. And then the indicators were implemented. During the practical application in the latter half of 2013 and the whole year of 2014, the modified appraisal indicators received good results. The gap of employee's compensation was wider,which shows more pay for more work. Meanwhile, the total cost of company's month pay reduced 0.5 percentage point. The compensation costs were used more reasonably for some proper purposes. The revised appraisal indicators also received good results in SMART analysis, the analysis of appraisal standards' rationality and satisfaction survey on the appraisal results. The indicators have been much better than before. From all the above, we can see that the revision was successful. But the improved indicators won't remain the same. It must be adjusted with the change of market environment and the development of the company.