What are the commonly used performance appraisal methods? What are the advantages and disadvantages of each?

What are the commonly used performance appraisal methods? What are the advantages and disadvantages of each?

Commonly used performance appraisal methods are strictly speaking only two: KPI and BSC. 360 ° appraisal in fact is not, or can not be considered a performance appraisal method, from the practical application of the point of view, 360 ° is more suitable for the transfer of a post, used to understand a post of the superior, the hierarchy, the subordinate, the external customer, the internal customer of the five dimensions of the main body of the evaluator in some of the indicators of the evaluation. We all know that as a manager, especially the department head, not only to manage internally, but also need to communicate with internal and external customers, which puts more requirements on the manager's communication power, leadership, affinity and other aspects. If you want to promote a person, you certainly can't one-sidedly understand the situation from his/her supervisor and subordinates, but also need to understand from multiple sides. Therefore, 360° is actually more suitable for use when promoting/transferring an employee, and is not suitable as an appraisal method.

KPI is the simplest performance appraisal method, but the difficulty lies in the first place in the selection of KPI is reasonable. Most companies are accustomed to using the empirical method to select KPIs, which is not wrong, but if the company withdraws from a new product / new service or enter an emerging market, the need to add new KPIs, will face the problem of how to select KPIs.

BSC is exactly a strategic management idea, Kaplan and Norton invented BSC, its intention is to open the link from strategy to action, but then by the academic and business community to the extension of the extension, the development of a set of more mature performance appraisal model. However, in the four dimensions of the BSC, it is also necessary to fill in the corresponding dimensions of the KPI. This can be used, otherwise only the BSC words can not be assessed.

From a practical point of view, the BSC is a very comprehensive set of performance management model, but the biggest problem is: how to determine the enterprise in the four dimensions of the various KPIs between the existence of the driving relationship? Is it based on experience or intuition? Is there any overlap between indicators? Is the logical relationship between indicators correct? These are all questions. Therefore, in order to use the BSC, it is best to use the strategy map.

BSC operation is more complex, the level of human resources management of the enterprise, the professionalism of the person in charge of each department requires a high degree, most companies have been applied, but the effect is not ideal. But once you master the operation method, the enterprise will find that the strategy map is really a good set of strategic management tools, and at the same time combined with the BSC to operate, it is also a good set of performance management tools.

EVA is the abbreviation for Economic Value Added. In fact, EVA is a term that originated in accounting and was first invented by Stenstrom in the United States. Simply put, EVA assesses the net profit after tax created by the enterprise's actual use of capital after deducting the cost of capital (usually WACC), rather than "accounting profit" or "book profit", which can more truly evaluate the value created by the enterprise, and to a considerable extent, it can also be used to assess the value of the enterprise. It can more truly evaluate the value created by the enterprise, and to a considerable extent restrain the investment decision of the executives, do not invest recklessly, do not waste the capital. Because there are many companies that are good at "bookkeeping", they can make the accounting statement very beautiful, but if the cost of using capital is deducted, it is likely that not only no profit, or even a loss.

EVA as an important indicator, unified assessment of the caliber (revenue, profit, cost and other indicators are combined), a comprehensive assessment of the cost of capital, can effectively protect the interests of shareholders, to eliminate the phenomenon of insider control, can effectively avoid the executives of blind decision-making, the behavior of haphazard investment, but the calculation of EVA is more cumbersome, and the need to adjust the number of accounting indicators within the enterprise, does not apply to high-risk industries, financial industries, and other industries, as well as the cost of capital, the cost of capital, the cost of capital, and the cost of capital. However, EVA is more troublesome to calculate and requires the adjustment of several accounting indicators within the enterprise, which is not suitable for high-risk industries, financial industries and start-up enterprises.

When calculating KPIs, BSCs, or EVA achievement, there are three most common measurement/evaluation methods: percentage rate method, either/or method, and plus/minus method. Percentage rate method which is the most widely used a quantitative assessment method, applicable to the vast majority of performance assessment indicators, the formula for its calculation: the actual value ÷ plan value × 100% × indicator weighting scores; this method can be the effectiveness of the work of the multi-layer scoring, can be very intuitive to the departments of the employees of the points of the sort of situation.

Either/or method This evaluation method results in only yes or no, there is no intermediate state, and is applicable to the stage work that does not need to be quantified, for example, whether to complete a certain job within the specified time, such as yes, then scored full points, and vice versa, no points.

Addition and deletion of points is a zero-weighted assessment method, such indicators in the assessment cycle does not necessarily occur, but once it occurs, it is usually deducted from the larger points, or even a veto, such as major accidents. Neither points are added nor deducted when they do not occur, and once they do occur, the score for that indicator is deducted or even a veto on all performance scores.

The common methods of performance appraisal are Management by Objectives (MBO), Key Performance Indicators (KPI), and Balanced Scorecard (BSC)

1, Management by Objectives (MBO) is one of the most widely used methods of appraisal, and most of the appraisal methods currently used in enterprises are Management by Objectives (MBO), which is a method of management by objectives.

The goal is easy to set, according to the company's own situation can be set.

Disadvantages: Due to the setting of goals, there is a lack of incentives, systematic.

2, Key Performance Indicator (KPI), is to extract the key success factors of the enterprise for the assessment indicators and set the corresponding objectives of an assessment method, the advantages and disadvantages of Key Performance Indicator (KPI) method:

Advantages: compared with the target management method, the KPI is more standardized; in the formulation of the performance indicators, to follow the principle of target decomposition, from top to bottom; in the formulation of the performance objectives, more towards the standard value and the benchmark value, the target value, the target value and the target value, the target value and the target value, the target value and the target value. The standard value and benchmark value, a stronger sense of purpose.

Disadvantages: relative to the balanced scorecard, insufficient systematic;

3. Balanced Scorecard (BSC); is a kind of indicators are divided into four dimensions of financial, customer, internal operations, learning and development of a kind of assessment, the balanced scorecard is a strategic management tool. Advantages and disadvantages of the Balanced Scorecard:

Advantages: the indicators are more systematic, strategy-oriented, focusing on long-term development and sustainability of the enterprise;

Disadvantages: because it is a strategic management system, the operation and initial promotion is relatively cumbersome, and the quality of the enterprise promoters is relatively high.

What are the performance appraisal methods, and what are the advantages and disadvantages?

Relative evaluation method (1) Sequential comparison method

Sequential comparison method is a method of sequential assessment according to the good and bad performance of employees. Before the appraisal, the first step is to determine the module of the appraisal, but not to determine the standard of work to be achieved. All employees in the same position are compared in the same appraisal module, and they are ranked in order according to their work status, with those who work better ranked first and those who work worse ranked second. Finally, the ranked numbers of several modules for each employee are added together to give the employee's appraisal result. The smaller the total, the better the performance appraisal results.

(2) Relative Comparison Method

Relative Comparison Method is a two-by-two comparison of employees, and any two employees are compared once. After comparing the two employees, the relatively better employee is recorded as "1" and the relatively worse employee is recorded as "0". After all the employees compared with each other, each person's score will be added, the higher the total score, the better the performance appraisal results.

(3) mandatory proportionality method

The mandatory proportionality method refers to the performance of the person being assessed, the person being assessed according to a certain percentage is divided into several categories (the best, the better, the middle, the poorer, the worst) to assess the method.

Absolute evaluation method (1) goal management method

Goal management is a performance appraisal method by breaking down the organization's overall goals level by level until the individual goals, and finally assessing the appraisee according to the appraisee's completion of the work objectives. Before starting the work, the appraiser and the appraisee should agree on the content of the work to be accomplished, the time period, and the standard of the appraisal. At the end of the time period, the appraiser will assess the appraisee's performance and the originally formulated assessment criteria.

(2) Key Performance Indicator (KPI) method

The KPI method is based on the annual objectives of the enterprise, and through the analysis of the performance characteristics of the employees, the key quantitative indicators reflecting the comprehensive performance of the enterprise, the department, and the employees for a certain period of time, and based on the performance appraisal.

(3) Level assessment method

The level assessment method is based on job analysis, the work content of the position being assessed is divided into several independent modules, in each module with a clear language description of the work required to complete the work of the module to achieve the work standards. At the same time, the standard is divided into several grade options, such as "excellent, good, qualified, unqualified", etc., the appraiser according to the actual performance of the appraisee, the completion of each module to assess. The total score will be the employee's assessment results.

(4) Balanced Scorecard

The Balanced Scorecard evaluates the enterprise from four perspectives: financial, customer, internal business process, learning and growth, and gives different weights to each indicator according to the strategic requirements to realize a comprehensive assessment of the enterprise, so that managers can grasp and control the enterprise as a whole, and ultimately achieve the strategic goals of the enterprise.

Description of the method (1) the whole perspective assessment method

The whole perspective assessment method (360 ° assessment method), that is, superiors, coworkers, subordinates, themselves and customers on the assessment of the person being assessed an assessment method. Through this multi-dimensional evaluation, synthesize the opinions of different evaluators, then you can come up with a comprehensive and fair evaluation.

(2) important events method

Important events refers to the appraisal of the usual attention to collect the appraisee's "important events", where the "important events" refers to those who will have a positive or negative impact on the overall performance of the department. Important events, these performances should form a written record, according to these written records to organize and analyze, and ultimately form the assessment results.

The quantitative performance management method is precisely in different periods and different work conditions, through the scientific processing of information, timely and accurate assessment, coordinated implementation of income, capacity, distribution relationships.

The target performance appraisal method target performance appraisal is a top-down decomposition of the general objectives and responsibility for the implementation process, accordingly, performance appraisal should be subject to the completion of the general objectives and sub-objectives. Therefore, as the department and position of the KPI assessment, should also be from the department of the company as a whole to support, department staff to support the department of the foothold. At the same time, company leaders and department leaders should also be responsible for the performance appraisal of their subordinates and should not shirk their responsibilities to their subordinates. The performance appraisal distinguishes between departmental and personal appraisal indicators, and ensures that supervisors can actively care for and guide their subordinates in accomplishing their tasks.

SMART principle of appraisal indicators

S: (Specific) ------ clear and specific, the indicators should be clear and unambiguous, so that the appraiser and the appraised can accurately understand the objectives;

M: (Measurable) ------ quantifiable. An enterprise to quantify the boss, quantify the enterprise, quantify the organizational structure. Objectives, assessment indicators should be more quantitative, better, not bad such words are not quantifiable, will lead to the ambiguity of the standard, must be digitized. There is no digitized indicators, is not free to assess, an assessment is prone to error;

A: (Attainable)----- achievable, goals, assessment indicators, must be able to achieve by putting in the effort, neither too high nor too low. For example, the assessment of the sales manager, last year's sales revenue of 20 million, this year's requirement of 150 million, nor give any support, which is a completely unattainable indicators. The target value of the indicator should be set in conjunction with the individual's situation, the situation of the post, the past history of the situation to be set;

R: (Relevant) ------ actuality, realism, rather than hypothetical. The definition of realism is to have the existing resources, and the existence of objectivity, real;

T: (Time bound) ----- time-bound, goals, targets are to be time-bound, to be completed within the specified time, time to time, we have to look at the results. Such as the requirement of 20 million in sales, alone so that the requirements are meaningless, must be stipulated in how long to complete the 20 million in sales, so it makes sense.

How to set goals

The target performance comes from the decomposition of the business objectives, that is, in order to complete the strategy of the business objectives of the enterprise layer by layer decomposition to each department and related personnel of a method of design indicators.

From management science, the goal is a little higher than the range of real capacity requirements, that is, "a jump, reach" kind. "Eye" is the eye to see, want to get, willing to get, it is a kind of dream; "standard" is, scale also. The goal is to have the scale of the goal, no scale of the dream called fantasy, fantasy, whimsical.

The goal is not blown out of thin air, not fictional delineation, not a closed-door car thought out, but the enterprise up and down the heart, everyone together to create, to have detailed information, someone agreed, there is a cycle of completion, but also ***, to go through the precise budget and plan.

After the establishment of the goal, the enterprise must find ways to turn it into everyone's dream, to let each employee to identify it. Only when the employees and the company exist *** with the same beliefs, employees can be in a company deep long-term development.

The indicators obtained through the target decomposition, its assessment is the content of each position, each person must complete the work of the most important. The target indicators for each level of personnel are broken down from layer to layer. Performance appraisal must be from the top down, the chairman, general manager to lead by example, simply only do the assessment of ordinary employees is not able to form the assessment culture of the enterprise.

Common indicators

Sales (sales revenue) Production costs (defective rate, product cost, production staff output, production cost reduction rate) Purchasing costs (cost of raw materials, equipment costs, purchase costs) Management costs (operating cost savings rate) Marketing costs (fees and sales ratio) Personnel and salary costs (personnel achievement rate, talent training rate, work saturation, wage benefit ratio) Tax costs (tax savings rate, work saturation, wage efficiency ratio) Tax cost (tax saving rate, tax-to-sales ratio) Business model construction (quantification, standardization, and tangibility of business model) Production system construction (formulation, promulgation, training, implementation, and revision of production processes and standards) Organizational system construction (formulation, promulgation, training, implementation, revision, and evaluation of organizational system programs) Business system construction (formulation, promulgation, training, implementation, and revision of business processes) Financial system Construction (formulation, promulgation, training, implementation, revision of financial processes, rules and regulations) Process system construction (formulation, promulgation, training, implementation, revision of operational processes)

Simple sorting method (a) the meaning of the simple sorting method Simple sorting method is also known as the sequence method or the sequence of assessment method, that is, a batch of assessment objects in accordance with a certain criterion to sort out the order of "1, 2, 3, 4," the order of "1, 2, 3, 4". ......" order. The advantages and disadvantages of this method.

(B) the operation of the simple ordering method First, the formulation of the assessment of the project. The second step is to assess the appraisee on each item and rank the sequence. The third step is to add up the number of sequences of each person's respective assessment projects to arrive at the total score and ranking of their respective order.

Mandatory distribution method (a) the meaning of the mandatory distribution method Mandatory distribution method, is a pre-specified proportion of the evaluation of the person to be assigned to the various performance categories on the method. This method is based on the principle of statistical normal distribution, which is characterized by the highest scores on both sides, the lowest scores are very few, in the middle of the majority.

(ii) Applicability of the Mandatory Distribution Method

Element Rating Method (a) Meaning of Element Rating Method The Element Rating Method, also known as Functional Measurement Method or Measurement Scale Method, is a method that combines qualitative and quantitative appraisal. The advantages and disadvantages of this method.

(2) The operation of the elemental assessment method

(1) Determine the assessment program.

(2) Classify the indicators according to the degree of merit.

(3) Training for the appraisers.

(4) Scoring the assessment.

(5) Analyze, adjust and summarize the information obtained.

Work Record Method The work record method is generally used for the assessment of operational work of production workers. Advantages and disadvantages of this method.

Management by Objectives (1) Knowledge of Management by Objectives

1. Meaning of Management by Objectives Management by Objectives (MBO) is a comprehensive approach to performance management. Management by Objectives (MBO) is a comprehensive approach to performance management. It was proposed by Peter Drucker, the famous American management guru. Goal management is a two-way interactive process between leaders and subordinates.

2. Advantages of Management by Objectives The management by objectives method has more advantages and some limitations.

(b) The quantitative standard of the goal goal management should be consistent with the principle of "SMART", its specific meaning.

(C) the implementation of the target management method steps 1. determine the scope of work responsibilities 2. determine the specific target value 3. review the target 4. implementation of the target 5. summary 6. assessment and follow-up measures

360-degree assessment method (a) the meaning of 360-degree assessment method 360-degree assessment method is a more comprehensive performance appraisal from multiple perspectives, also known as the comprehensive appraisal method or the comprehensive evaluation method. Comprehensive evaluation method.

(2) 360-degree appraisal method of implementation First of all, listen to the views, fill out the questionnaire. Then, make an evaluation of the various aspects of the appraisee. On the basis of analyzing and discussing the results of the assessment, the two sides discussed and set the performance objectives for the next year.

(C) the advantages and disadvantages of the 360-degree assessment method

10 What are the commonly used performance appraisal methods

The correct choice of performance appraisal method of reference dimensions are mainly the following aspects:

1, the size of the enterprise, the size of the enterprise, the management of the strength of the different will affect the choice of performance appraisal methods.

2, belongs to the industry, high-tech enterprises performance appraisal and the traditional industry assessment methods will be significantly different.

3, the nature of the work, some employees are able to directly quantify the content of the work, but the work is not and can not be directly quantified.

4, employee positions, for the management of the enterprise and ordinary positions, because of the different indicators, different responsibilities will have different assessment methods.

Expanded reading:

Common performance appraisal methods are the following:

1, KPI (Key Performance Indicator) Key Performance Indicator method. This performance appraisal method is the most common, applicable to be able to have a direct effect and quantitative standards of enterprises or positions.

2, OKR (Objectives and Key Results) goals and key results method. This performance appraisal method is more trial and small and medium-sized teams or management attributes will not be particularly strong team, the general will not have a very clear direct quantitative indicators, or the effect of the work is not able to show the position in a timely manner.

What are the five common performance appraisal methods, common performance appraisal methods which.ppt

Common methods of performance appraisal

A relative evaluation method

(1) sequence comparison method

Sequence comparison method is a method of sorting the assessment of the performance of employees according to the good and bad. Before the appraisal, the first step is to determine the assessment of the module, but not to determine the standard of work to be achieved. All employees in the same position are compared in the same appraisal module, and they are ranked in order according to their work status, with those who work better ranked first and those who work worse ranked second. Finally, the ranked numbers of several modules for each employee are added together to give the employee's appraisal result. The smaller the total, the better the performance appraisal results.

(2) Relative Comparison Method

Relative Comparison Method is a two-by-two comparison of employees, and any two employees are compared once. After comparing the two employees, the relatively better employee is recorded as "1" and the relatively worse employee is recorded as "0". After all the employees compared with each other, each person's score will be added, the higher the total score, the better the performance appraisal results.

(3) the mandatory proportion method

The mandatory proportion method refers to the performance of the person being assessed, the person being assessed according to a certain percentage is divided into several categories (the best, the better, the middle, the worse, the worst) to assess the method.

Second, the absolute evaluation method

(1) goal management method

Goal management is through the organization's overall goals are broken down level by level until the individual goals, and finally based on the appraised person to complete the work objectives to assess the performance of a performance appraisal. Before starting the work, the appraiser and the appraisee should agree on the content of the work to be accomplished, the time period, and the standard of the appraisal. At the end of the time period, the appraiser will assess the appraisee's performance and the original assessment criteria.

(2) Key Performance Indicator (KPI) method

The KPI method is based on the annual objectives of the enterprise, and through the analysis of the performance characteristics of the employees, the key quantitative indicators reflecting the comprehensive performance of the enterprise, the department, and the employees for a certain period of time, and based on the performance appraisal.

(3) Level assessment method

The level assessment method is based on job analysis, the work content of the position being assessed is divided into several independent modules, in each module with a clear language description of the work required to complete the work of the module to achieve the work standards. At the same time, the standard is divided into several grade options, such as "excellent, good, qualified, unqualified", etc., the appraiser according to the actual performance of the appraisee, the completion of each module to assess. The total score will be the employee's assessment results.

(4) Balanced Scorecard

The Balanced Scorecard evaluates the enterprise from four perspectives: financial, customer, internal business process, learning and growth, and gives different weights to each indicator according to the strategic requirements to realize a comprehensive assessment of the enterprise, so that managers can grasp and control the enterprise as a whole, and ultimately achieve the strategic goals of the enterprise.

Third, the description of the method

(1) the whole perspective assessment method

The whole perspective assessment method (360 ° appraisal method), that is, superiors, coworkers, subordinates, their own and the customer's appraisal of the appraisee to carry out the assessment of an assessment method. Through this multi-dimensional evaluation, synthesize the opinions of different evaluators, then you can come up with a comprehensive and fair evaluation.

(2) important events method

Important events refers to the appraisal of the usual attention to collect the appraisee's "important events", where the "important events" refers to those who will have a positive or negative impact on the overall performance of the department. Important events, these performances should form a written record, according to these written records to organize and analyze, and ultimately form the assessment results.

The quantitative performance management method is precisely in different periods and different work conditions, through the scientific processing of information, timely and accurate assessment, coordinated implementation of income, capacity, distribution relationships.

Fourth, the target performance appraisal method

The target performance appraisal is a top-down decomposition of the overall objectives and responsibilities of the implementation process, accordingly, the performance appraisal should be subject to the completion of the overall objectives and sub-objectives. Therefore, as the department and position of the KPI assessment, should also be from the department of the company as a whole to support, departmental employees to support the foothold of the department. At the same time, company leaders and department leaders should also be responsible for the performance appraisal of their subordinates and should not shirk their responsibilities to their subordinates. Performance appraisal distinguishes between departmental and personal appraisal indicators, but also from the mechanism to ensure that superiors can actively care for and guide subordinates to complete the work task.

What are the performance appraisal methods? The best is the company commonly used ah.

Once a comrade said that because only sales generate profits, the other are all costs, so the performance of the sales position is more important, but fat brother that sales is only the realizer of profits, production (should include technology, products) is the creator of profits, so the performance of the production sector is the most difficult to deal with, in addition to them being more important, and there are usually these reasons: a. The number of production departments is usually the most; two. Usually is the most; Second, the production staff is always difficult to say is to be difficult to communicate some of the; Third, ...... did not think of it for the time being. This is probably the case, go to Sanmao HR community to see it, this I have a headache, sweat.

What are the performance appraisal methods actually used by enterprises?

First, the assessment of the person in charge of the enterprise, with the output value, efficiency, safety linked liaison; second is the assessment of the person in charge of the department, with the quality, safety, efficiency liaison, departmental assessment to distinguish between production, supply, sales, management of different functions, highlighting the performance of the function, management and education of the staff and innovative ways of working; third is the assessment of the staff, with the safety, quality, reduce consumption and reduce the defective products liaison; performance appraisal of my experience is to decline Basic salary or directly only to the cost of living, all the other performance-based active wages and bonuses, piecework, counting system, especially the contracting management right to operate, target management system, etc., can effectively improve efficiency and reduce costs. Layers of contracting to prevent the person in charge of the grass-roots level does not have the ability or ability to be weak, can not be a package, we must grasp the supervision, grasp the implementation of the process of analysis, timely guidance and adjustment. To grasp the management of grass-roots personnel and technical training to improve their ability to quality.

What are the sampling methods? What are the advantages and disadvantages of each

1, simple random sampling Advantages: When the overall number of observation units and the number of sample cases are not large have to implement, the mean and its standard error calculation is relatively simple.

2. Stratified sampling Advantages: easy to understand, simple to implement. It is easy to get a proportionate sample.

3. Systematic sampling Advantages: Because of the increased homogeneity of individuals within each stratum, the sampling error is relatively small.

4, whole group sampling Advantages: easy to organize, save manpower, material resources, time, easy to control the quality of the survey.