Performance Appraisal Methods: Difference and Connection of KPI GS BSC

(KPI) The production process of an enterprise is the process by which laborers use labor tools to change the object of labor. Among the three basic elements of enterprise production (labor force, labor materials, and labor objects), labor force is the most important factor. Correct statistics, analysis, and prediction of labor productivity indexes are of great significance for enterprises to organize production in an orderly manner, and to fully develop and reasonably utilize human resources.　The advantage of this method is that the standard is more distinct and easy to make assessment. Its disadvantage is that it is difficult to make standards for simple work; it lacks a certain quantitative nature; the performance indicators are only some key indicators, and lacks a certain assessment for other contents, which should be paid due attention to.

(2) GS is a kind of performance appraisal, commonly known as target appraisal,

Principles of setting up

A good GS should:

Measure the skills, qualities, and values needed to succeed in the position;

Measure the performance components that are difficult to quantify;

Repeat at least once with KPIs

Define the evaluation criteria to reduce the subjective factors in the assessment. subjective elements in the assessment.

GS is more appropriate for:

Positions where performance is not easily quantified (human resources, administration and logistics, finance, etc.);

Positions that require a high level of unique skills, and where specialized knowledge should be measured more than general technical or managerial competencies (audit, research and development, legal);

New businesses (e.g., venture capital).

GS is less appropriate for:

Positions with quantitative performance targets (production managers);

Top management with higher responsibility for performance (VP of marketing);

Positions where individual performance is more important (salespeople).

Goal Setting (GS) generally selects a few key evaluation elements (e.g., timeliness, accuracy, referability, systematicity, completeness, effectiveness, etc.) to measure, and sets the appropriate weights for each evaluation element. Agree0|Comments

(3) BSC (Balance Score Card, Balanced Score Card) is a performance management and performance appraisal tool invented by Harvard Business School's Robert Kaplan and David Norton in 1992. In the early 1990s, the Norton Institute in the United States hosted and completed a research program on "Future Organizational Performance Measurement". Methods for Future Organizational Performance Measurement" research program sponsored and completed by the Norton Institute in the early 1990s. The initial motivation of the program was that the existing performance measures based on financial accounting measures were becoming increasingly vague, and the aim was to find ways to go beyond the traditional performance measurement model based on financial measures, so that an organization's "strategy" could be transformed into "action". The research includes manufacturing, service, and service industries. The study includes companies in the manufacturing, service, heavy industry and technology sectors. From research to practice, the Balanced Scorecard has become a strategy implementation tool that translates a company's strategy into actionable objectives, metrics, and target values.　The Balanced Scorecard has been hailed as "the greatest management tool in 75 years" and is widely used in Western countries.