Tuesday, March 1, 2011

Institutions how to implement pay for performance

 Institutions to implement pay for performance may be encountered during the ten questions

mm Tan Youmao
many of our institutions are made for the implementation of performance pay in full swing with all aspects of preparation. Performance management is a worldwide problem, not being understood, institutions must implement pay for performance is the implementation of performance management process will certainly encounter difficulties. I study and implementation of performance management nearly five years, accumulated some experience. a time when institutions and the implementation of pay for performance Many people give much attention on the occasion, a business unit asked me to talk about how the performance evaluation, and precautions. I talked about the following view:
Question One: institutions that raise additional merit pay up?
institutions to engage pay for performance, some people believe that a raise in disguise, and some think not. in the end it is up wages, the key need to look at two aspects:
First, performance pay from the general source of performance pay
There are two forms (or modes)
Mode One: In the past, cut out a piece of total wages for performance pay.

form of merit pay is certainly not a complete > Type II: an additional part of the income of the content, specifically as a pay for performance.
original new performance pay additional wages have increased
model two real nature of wages or a wage, but not fully determined that the is rising wages, it is directly related to how to deliver the distribution.
Second, the rules of distribution of performance pay
We believe that performance pay should be a reward in nature. It should be a unit or individual job performance over target, wages.
Therefore, even if the source of institutional units is the part of the second mode m as a new mode of performance pay, but the distribution of the principle of wages should not be regarded as a , may be regarded as a raise, directly or indirectly, it does not have the effect of performance pay, would not achieve the desired incentives.
Thus, performance pay will rise to become a disguised form of wage, is that really to motivate employees to work harder role, the key is how to allocate payment of incentive pay, more in-depth to say, the key is whether a unit to establish an effective performance management (or performance evaluation) mechanisms.
question two: Why institutions To set up merit pay?
Why pay for performance business units, in addition to the officer referred to In the traditional
First, the introduction of a new distribution mechanism with the idea, or to change the traditional idea of the distribution mechanism. The new allocation mechanism and the idea to break the traditional contribution to the size of the level of responsibility and ability as a basis for allocation of public institutions, reflecting the distribution of a new value orientation.
two, so that distribution as a tool to achieve unit goals and means. through a new distribution methods, promotion of and security units in a desired goal, to better complete the various tasks.
three traction units and staff behavior. Performance management can be different at different times reflect the priorities and task-oriented, change work units and staff focus and task-oriented, change or traction units and individuals. In many companies, performance appraisal has become a towing company and employee behaviors most effective tool. For example: by changing the performance index or the index weights, guide the staff concern and attention certain aspects of the work, increase investment in certain areas, certain aspects of the work from the surface to make improvements or breakthrough.
Fourth, improve our work, improve performance and capacity. through performance management, especially in the performance management process, the units and staff understanding and awareness of the advantages and disadvantages of their work, and for the lack of improvements to enhance the performance and ability to achieve the purpose. in the world, who regard the success of performance management improvements, improve performance and capacity as the main purpose of .
V. Jiangqinfalan. This is performance management, performance pay the most original, most basic functions.
six, breaking egalitarianism. wage system and institutions, the breeding of the egalitarian; often bad about doing a good job, do a little more like, or even more but earn less phenomenon. The basic wage system does not have the incentive. public institutions to introduce pay for performance, should be broken to some extent, egalitarian, or institutions that make a reasonable number of the wage distribution.
seven, the introduction of management methods and tools. In the past, the income and institutions can not do also very limited), so that managers lose traction under the act of a management tool. implement pay for performance, can provide managers with a powerful and effective means and tools of management.
three issues: the performance of institutions wages can play its function? or you may become a fixed salary?
or less from the part of some companies have taken the lead institution for the performance management practice situation. Now the implementation of pay for performance business units, its performance Wages should be able to perform functions in the end, will become a fixed wage, the key is to prevent the following problems can avoid:
First, there is merit pay, but not the establishment of performance management or performance allocation mechanism.
II performance management or performance appraisal mechanism m behind the unit or can not effectively evaluate staff performance status.
Third, although a good performance management system, methods and tools, but the implementation of strict, performance management becomes a form management process going through the motions, so that scientific performance management system exists in name only.
Fourth, the traditional concept of m, such as deep-rooted egalitarian ideology, or units of poor leadership, or unit leaders are determined not firm, can not change the status quo.
five, fear of change, fear of change, or do not want to work hard, do not want to take risks, lack of confidence in unit leadership and determination, or lack of ability and courage, just want to go on pay for performance can be made, do not want to take this opportunity to introduce performance management system to strengthen performance management. < br> June, wants to do good, but also spent a lot of effort, but due to lack of experience, ability ineffective, the results of the established performance management systems, or outdated, or incomplete, can not achieve the intended purpose.
If a unit of the above questions, you can view their performance management largely ineffective, or basic failure; its performance pay will not be able to function; performance pay will inevitably become another form of fixed income. which in many enterprises and institutions is profound lessons.
relative to enterprises, institutions or the implementation of performance management, the implementation of m performance pay, more prone to these problems, mainly due to:
one institutional reasons. In the past, institutions for a long time wage income is national funding (now the vast majority are still national funding institutions), and national funding, and their income levels and units of state and individual job performance is almost unrelated, the mechanism is a kind of income Official Standard and even asked for its inability to generate income, some pure public service units, some with social management functions, some education, medical institutions, their level of performance is difficult to measure performance and individual performance is difficult to distinguish.
three weak foundation. There are many institutions of management mechanism is not perfect, imperfect, weak basic management. such as responsibility, rights, benefits, or not clear, or unrelated. Therefore, implementing modern performance management to make the course too much, difficult, non-short-term or by their own capacity to complete.
four institutions egalitarianism, big pot of state-owned enterprises more serious than in the past. to change it, many a time is unacceptable, in a period of time various contradictions and conflicts will certainly increase the difficulty of the work unit leadership will be a corresponding increase. Therefore, all units carry out performance management of risk will have many concerns and even fears.
Fifth, lack of experience and talent. all business unit managers, almost no experience in performance management, but also are related to the performance of management personnel reserve.
six, with less experience can learn. As far as I know, the real implementation of enterprise management, business performance management few units. As far as I know, the real implementation of enterprise management, performance management and institutions rarely, the institutions necessary to implement pay for performance performance management experience m very mature, especially with less experience will inevitably detours, go back and run into various problems.
Therefore, the implementation of pay for performance of public institutions, from the beginning to avoid and prevent every possible means to avoid
the problems mentioned above.
question four: Why do so many people oppose, disgust, fear of performance pay?
set the starting point of performance pay and awareness is certainly positive, positive, but in the past by some companies and institutions engaged in the performance pay and performance management is not very popular and even met a lot of people against it. sometimes not only fail to effectively motivate people to work ethic, but affect people's emotions, or have a strong negative effect. Therefore, there have been many people, especially m performance management performance evaluation questions and even hold opposition. study of its cause, I do not think performance appraisal performance management m or there are problems, but some units made a mistake, messed up, engaged in a side.
the most common is that many units in performance appraisal completely as become a behavior and good performance, lead them to do better, to encourage them to create more outstanding achievements.
Although the incentive is a negative incentive, including, but not to become a dominant negative incentive, otherwise the incentive will become a horrible blow, rather than incentives. Perhaps, the negative incentive for some people, or in some cases may have some effect, to see some results, but long-term, fundamentally, its role is mostly negative The.
another approach is more common, even many people think is right and proper, that is, for the wages and bonuses or performance appraisal. The purpose of assessment is to be assessing the separation of rank who and so on. Although they can be well reflected m or Jiangqinfalan rewards and punishment, but critics m opponents argue that such a performance management function is not fully play out, or that the main function does not play, because modern performance management or that we set the fundamental purpose of performance pay, as a means to promote and traction units and employee behavior change to enhance performance and improve the work. and some units wages or the performance of those who will be assessing the separation of rank such as a primary objective.
some units, only the personnel department for the performance evaluation. the personnel department personnel departments who do not understand the situation, not familiar with the work of other departments, often engaged in closed-door evaluation, assessment often going through the motions; addition, because the employer sector managers do not really participate in performance management, personnel department from the examination actually easier to work, reach the purpose of improving work incentives. and the corresponding performance pay, performance evaluation is meaningless .
question five: nine, so that wages bonuses to be treated differently. I thought this be the performance evaluation of the Yes, but the assessment of people do not want to face-lift, to continue, I call it forced assessment examination must be a person of rank or grade separation.
and performance of a given month is the best one to 83, according to > As a result, the company made of gold and the Strategy ten feet high, performance evaluation of many units of one of the most troublesome. Experience tells us, the harm is a direct result of failure to complete performance management, and ultimately put an end to performance management.
institutions conducting performance management, the first necessary Beware of or avoid the above problems.
of Six: Performance Management (appraisal) who work?
actually raised the issue a matter of five need to be more deep thinking, deep concern, namely: the performance management process , which should be a manager what role? performance management for each manager, it means what? Who do performance management?
I worked in many companies and institutions as a consultative survey: performance appraisal m or human resources management who work? eighty percent or more of the people considered to be human resources or personnel departments.
This may be a problem five, The manager's performance appraisal as an extra work, that is a personnel department to help work as one of the trouble is not his own. Therefore, they do not want responsibility, do not want too scared to sinners, to meet this work.
general managers believe that performance management is not only a human resources management areas, should be attributed to human resources or personnel department, many executives think so and so is required, this is really a big mistake especially m wrong, this is inherited from the traditional personnel management tasks and responsibilities of positioning.
modern performance management (appraisal), is designed for all managers under a management tool and method; is to control and use of management This tool, traction under the act, under a clear focus and direction to promote the continuous improvement of the work of subordinates, and program management, goal management and performance assessment of organic integrated whole, in order to effectively achieve business objectives.
institutions to implement pay for performance, in fact, is to build the units so as to promote the performance management system, to all managers provide a management tool and method.
If you can not achieve this purpose, the function of merit pay off at least percent seventy.
seven issues: whether the shortcuts, and alternatives?
engage in performance management, performance pay can function effectively it?
I think: must be with the unit, and the individual's work performance-related, otherwise it would no longer pay for performance.
but to performance-related, they must engage in performance management; and to performance management, performance management mechanism must be established; and performance appraisal Performance management is a common form.
not establish performance management or performance appraisal system, there is no performance management platform, there is no corresponding standard, there is no corresponding tools, there is no corresponding management methods and tools; it can not effectively identify and judge the performance of a unit and individual condition, but no traction unit and individual behavior and improvements.
if some units wages in the implementation of pay for performance, trying to cut corners, or find some alternative performance management When performance pay is not performance based.
question eight: just make the personnel department to engage in, will you?
my answer is yes: construction management, difficult, involves a wide range of capabilities and personnel departments of the right to not
Wei and alone is not enough personnel departments.
to establish performance management (appraisal) system, which is not behavior of a department, but the company
behavior, senior managers should take personal charge of this work, and managers should be involved in the mobilization of all sectors and the importance of this work.
I am also a perception that public institutions to introduce Performance schedule information, the first related to the introduction of
management philosophy, to change some people's ideas. but only to change the general staff can not solve the problem, first change the units should be number one or top management concepts and consciousness, which is the personnel department staff of difficult.
lessons tell us: the performance management system to do the personnel department threw the Ministry of Personnel goalkeeper is very difficult, or low efficiency, performance management system for a long time unable to establish a sound; or execution is not enough, not by expected to promote; or not be pushed down, hindered by the parties; or become a mere formality, as a form of performance management.
The reason why the vast majority of unit personnel department threw a single performance system to do, usually there are three reasons: First, unit leaders have not yet fully understand the purpose and value of performance management, or that the institutions to implement pay for performance, simply as a general payment of wages; Second, light management, re-operations, not consider this work as An important work; third is due to traditional habits, ideas, or shape over the years in personnel management behavior, and no sense of human resource management.
Nine: institutions can directly follow the performance evaluation performance evaluation of enterprises you?
my view is: whether in institutions or enterprises, performance appraisal ideas, methods and tools are interlinked. At home, many places (such as Qingdao City, Jiangsu, Nantong, Shanghai Yangpu District authorities, Luoyang City, Henan, etc.) of the Government, business performance evaluation, are quoted for reference or to adopt some business success directly to the performance evaluation of the ideas, methods and tools, and proven to be effective; in the West, such as the United States, 90 of the last century early, the Clinton administration for the national performance assessment, performance evaluation is a direct way to learn business success stories.
visible during the performance management of public institutions, can and should learn and draw on business experience in this regard.
However, we believe that this study and reference, not a simple imitation, but can not be mechanically to accept, as we say enterprise performance management and business units in the thinking, methods and tools are interlinked, it is refers to the is a non-market institutions (or non-full market) the nature of economic organization, as well as institutions of social and public service nature, will make performance appraisal and performance evaluation of the specific business operation, there is a big difference. It includes different assessment modes, assessment criteria, assessment indicators, assessment methods and so not the same.
Therefore, business units and learn from the experience of successful enterprises, when performance appraisal, but not gulping.
Not only that, Even public institutions, also have different properties and characteristics of public institutions is different clients and different ways, in establishing their performance management system, they must The most important process is the most difficult to establish standards of performance appraisal do?
Some people think that the performance appraisal process and institutions in the most difficult of the most important is to establish standards of performance appraisal, which is a grain of truth. because of, the establishment of performance appraisal standard is the basis for performance evaluation of each unit, and, as a result of the different nature of the units, assessment indicators new issues, may need to optimize the sound appraisal standards.
However, according to our experience in the performance appraisal process, what is much more more important. For example, as well as in the performance of the survey we have done the following more difficult is the recognized more important:
not only concerned about results, but also concerned about the assessment process, carried out in the process of coaching, performance management and control, performance feedback, performance incentives and performance improvement, security performance results, this is the performance of modern science examination of the essence, but also many of the units performance management ideal state;
In addition, the evaluation results effectively, objectively feedback to the appropriate team and individual, continue to make the new team and individual objectives, new improvement points, to improve the direction and requirements, so that their work can continue to improve, capacity has been increasing. in the performance management of many units, we must persevere to do this is not easy, but this is what can truly reflect the performance The value of management.
Another point is that performance management itself needs continuous improvement. any kind of management, methods and tools, can not be perfect; and with the development of things and people's understanding of development, will They generate new knowledge. Therefore, the need for appropriate models, methods and tools for improvement, continuous innovation required. For example: Modern e-performance management performance management has traditionally posed a challenge to force us to carry out performance management innovation. Thus, performance management, continuous improvement is the life, is the most difficult and most important.

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