Growing pains: problems in the performance appraisal of China's state-owned enterprises transformed from governmental organizations

2012 ◽  
Vol 2 (8) ◽  
pp. 1-10
Author(s):  
Huang Gui ◽  
Fu Chunguang ◽  
Chen Jingli ◽  
Pan Minting
Keyword(s):  
Performance Management ◽  
Performance Appraisal ◽  
Management System ◽  
Assessment System ◽  
Performance Management System ◽  
Appraisal System ◽  
Content Type ◽  
Governmental Organization ◽  
Growing Pains ◽  
Performance Appraisal System

Study level/applicability This case is suitable for undergraduates, MBA students and students from business administration departments in the teaching of human resources management and performance management. Case overview Luodian Electric Power Construction Corporation Group (LEPCC Group) is a state owned enterprise transformed from a construction unit of Luopu Power Supply Bureau (LPSB), a governmental organization in charge of all the electricity supply in Luopu City. The general manager of LEPCC, Gu Ming tried to set up a modern market-oriented management system for LEPCC. Unfortunately the problems that had accumulated in the past two decades during which LEPCC was a governmental organization made his reforms very difficult. The first headache for Gu Ming was the performance appraisal reform in LEPCC. The existing performance appraisal system seemed to have at least three problems in practice: unclear appraisal objectives, an improper assessment system, a different appraisal standard for similar positions. What should Gu Ming do to build a proper performance appraisal system to help the fast-growing LEPCC Group to make LEPCC a competitive market-oriented player? Expected learning outcomes The first objective of this case is to enable students to understand that the issues of working performance are issues of people first, rather than issues of the management system. If the management focuses on the system instead of on the staff of the company to design the performance management system, the system will be fruitless and inefficient. The second objective is to cultivate students' capability to apply the basic theories of human resource management and the knowledge of performance appraisal in case analysis and practical management. This case, seemingly about performance appraisal, is in fact about the organizational structure and processes of the organization. Reform should start with organizational analysis, job analysis and job descriptions. Only when all these have been done correctly, can the performance management system be designed more reasonably, scientifically and efficiently. Supplementary materials Teaching notes are available; please consult your librarian for access.

A Study On Performance Appraisal Techniques In A Selected Industry

2019 ◽  
Vol 118 (5) ◽  
pp. 66-73
Author(s):  
M. Jayaseely
Keyword(s):  
Performance Management ◽  
Performance Appraisal ◽  
Management System ◽  
High Performance ◽  
Employee Performance ◽  
Growth Management ◽  
Performance Standards ◽  
Performance Management System ◽  
Appraisal System ◽  
Performance Appraisal System

Performance appraisal system operates in which an individual manager regularly, annually records performance and developments in top down process. It can be argued that perceived defects of appraisal system led to development of more sound concepts of performance appraisal. The provision of challenging assignments and regular performance feedback are included in effective performance management system. At the end of the performance period usually a year the supervisor and employee meet to summarize the accomplishments and challenges of the past year and document the discussion using performance management form. In any organization to be effective the resources should be property maintained. The study concentrates on finding whether the current performance management system followed in organization is effective and how far they are satisfied and whether all the employees all aware of performance standards fixed for them and promotions are given based on performance. It also suggests whether any change is required in the existing system.  Success with performance appraisal system relies on good design and implementation. Managing employee performance is an effective mechanism for developing both employee and organization growth. Management and employee involvement in the design/review of a performance management system is important performance appraisal can be redesigned for betterment of performance. Thus performance appraisal is a shared commitment to high performance.

scholarly journals Portraying an employee performance management system based on multi-criteria decision analysis and visual techniques

2016 ◽  
Vol 37 (4) ◽  
pp. 628-659 ◽  
Author(s):  
Alessio Ishizaka ◽  
Vijay Edward Pereira
Keyword(s):  
Decision Analysis ◽  
Performance Management ◽  
Performance Appraisal ◽  
Management System ◽  
Employee Performance ◽  
Added Value ◽  
Performance Management System ◽  
Content Type ◽  
Qualitative And Quantitative ◽  
Multi Criteria Decision Analysis

Purpose – Performance appraisal is one of the most critical and indispensable human resource practices for organisations. However, it generates dissatisfaction among employees as it is often viewed as complex and ineffective. The purpose of this paper is to present a new performance management system that integrates multi-criteria decision analysis (MCDA) methods – the analytic network process (ANP) and PROMETHEE – with the visual techniques of the GAIA plane and the stacked bar chart. MCDA methods allow a structured and consistent evaluation integrating qualitative and quantitative criteria. Design/methodology/approach – The authors developed a structured and transparent performance management system. It is based on the MCDA methods PROMETHEE and ANP. It also incorporates the visual techniques: GAIA and stacked bar chart. Feedback for trainings and developments can precisely be formulated. Findings – Visual techniques permit clear identification and quantification, for each employee, of the areas that need improvement through training and development, which contributes to the resource-based view of organisations. A real case study has been portrayed to show the added value of the MCDA methods and the visual techniques in employee performance management. Originality/value – The paper describes a new employee performance system adopted in an organisation. The multi-criteria analysis transparently combines qualitative and quantitative decision criteria into a holistic and transparent evaluation. The visual techniques permit us to gain a deep insight into the employees’ skills profile and capture fine details where individuals perform or underperform.

Performance Management System at Gas Company

2010 ◽  
Vol 14 (01) ◽  
pp. 95-115
Author(s):  
A. K. Siti-Nabiha
Keyword(s):  
Performance Management ◽  
Performance Appraisal ◽  
Performance Indicators ◽  
Management System ◽  
Evaluation System ◽  
Parent Company ◽  
Performance Management System ◽  
Appraisal System ◽  
Management Processes ◽  
New System

The case is about the implementation of a performance management system (PMS) in ALPHA, a gas processing company. ALPHA is also a subsidiary of a multinational company based in Malaysia. The new performance management system was imposed on ALPHA by its parent company. The PMS integrates the following key management processes, i.e. strategic planning, portfolio management, resource allocation, performance measurement and reporting and executive compensation in the organization. The ultimate aim of the new system is to ensure that the focus of business activities is on economic value creation. At the heart of this system is the use of key performance indicators (KPIs) for each of the management processes coupled with performance targets for all the KPIs. However, there were various implementation problems in the company. The employees had difficulty in formulating their performance indicators. There was also confusion and anxiety among the organizational members regarding the new system, specifically on how it would impact on their performance appraisal. Consequently, most of the employees formulated two sets of indicators, one to be used for their performance appraisal and another indicator for the performance management system, which is not used in their evaluation system. Ms. Marinah, the General Manager of the Finance Division and also the person responsible for the implementation of the new performance management system needs to make a decision as to whether to continue the usage of two sets of indicators for the parent company or to brief the managers again about the usage of value based indicators for their appraisal system.

Is it time to do away with Annual Performance Appraisal System?

2016 ◽  
Vol 24 (3) ◽  
pp. 7-10 ◽  
Author(s):  
Anita Sarkar
Keyword(s):  
Performance Management ◽  
Performance Appraisal ◽  
Feedback Mechanism ◽  
Team Work ◽  
Appraisal System ◽  
Content Type ◽  
Performance Appraisal System ◽  
Employee Attrition ◽  
Traditional Performance ◽  
New System

Purpose The purpose of this paper is to describe factors that determine scrapping of traditional performance appraisal system. Design/methodology/approach The study explains how the new system of feedback giving is aligned with the requirement of performance management system. Findings Traditional performance appraisal often created employee dissatisfaction, stalled employee creativity and team work, and increased employee attrition and missed out on performance improvement of employees. New check-in system promises to develop employees on the basis of continuous feedback mechanism. Originality/value This paper aims to provides insights on how the new system of performance management is connected to overall needs of the organization and the employees.

Smartschool.com’s performance review- an opportunity for growth or to quit?

2020 ◽  
Vol 10 (2) ◽  
pp. 1-20
Author(s):  
Saleena Khan ◽  
Varun K ◽  
Ameera Raiza
Keyword(s):  
Performance Management ◽  
Management System ◽  
Organizational Context ◽  
Business Students ◽  
Performance Management System ◽  
Appraisal System ◽  
Bottom Line ◽  
Content Type ◽  
Link Type ◽  
The Impact

Learning outcomes This case will help students to improve their understanding of several important aspects of an organization’s culture and the importance of ethics in developing an organization’s culture. Students will be able to demonstrate their understanding of the concept of values and their importance in business and learn what organizations should do to make their culture more value-driven. Students will be able to identify the impact an organization’s blurred culture causes and understand the concept of “value congruence” and its need to get higher employee performance. Students will be able to understand the importance of Holland’s person-job fit theory, in an organizational context, along with the impact of Hofstede’s national culture on the organizations’ culture of a country. Students will realize how a result-driven performance management system impacts an employee’s morale negatively, and discover why an organization should balance on giving equal importance to both result and behavior-based performance appraisal system. Students will develop sensitivity to the application of the “triple bottom line” and deontological approach in ethics, and determine how to formulate policies for sustainable and ethical process-driven organizations. Case overview/synopsis There are two aspects to this case. On the one hand, it talks about the ethical dilemma faced by the protagonist Mr. Vijay Shekhar while working with Smartschool.com, with its head office in Bangalore, India. On the other hand, the case focuses on the performance management system at Smartschool.com, its existing framework and the impact it has on employees and other stakeholders. It also emphasizes the importance of establishing a value-driven culture in an organization for its long term sustenance. Complexity academic level Graduate and under-graduate business students/MBA level. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 6: Human resource management.

Does new performance appraisal system (EVA) affect earnings management?

2020 ◽  
Vol 11 (2) ◽  
pp. 191-216
Author(s):  
Weifeng He ◽  
Liping Chen ◽  
Wei Liu
Keyword(s):  
Earnings Management ◽  
Performance Appraisal ◽  
Management System ◽  
Real Earnings Management ◽  
Appraisal System ◽  
Content Type ◽  
Decision Control ◽  
Performance Appraisal System ◽  
And Control ◽  
Research Studies

Purpose Currently, most research studies focus on ownership reforms and governance reforms, while only a few research studies focus on management system innovations. Based on an evolution of state-owned enterprises’ (SOEs) performance appraisal systems, this paper investigates the influence of performance appraisal system on earnings management. Design/methodology/approach Using a natural experiment that central government-owned enterprises (CGOEs) carried out economic value-added performance appraisal (EVA-PA) in 2010, the authors adapt difference-in-difference method to analyze the relationship between EVA-PA and earnings management choice. Furthermore, the authors consider the situation which contained financial status, separation between decision-making rights and decision-control rights, separation between ownership and control and industrial characteristics. Findings The research finds that after carrying out EVA-PA, CGOEs prefer accrual-based earnings management to real earnings management, and there is substitution effect between the two types of earnings management. Moreover, further research studies reveal that enterprises suffering losses in the previous year and featuring higher separation between decision-making rights and decision-control rights and higher separation between ownership and control have stronger earnings management motive under EVA-PA. In contrast, enterprises achieving satisfactory financial performance in the previous year and engaging in businesses within protective industry have weaker earnings management motive under EVA-PA. After the implementation of EVA-PA, accrual-based earnings management and real earnings management both impair operating performances of CGOEs. Originality/value Theoretically, this paper enriches research studies on earnings management from the perspective of incentive mechanism and expands research studies on economic consequences of EVA-PA. In addition, it validates the relationship between the two types of earnings management. As an important mechanism of corporate management and control, performance appraisal system is an important part for establishing ownership management system and improving internal management system of SOEs.

scholarly journals Practice of EVA-Based Balanced Scorecard in the Construction of Performance Evaluation System

2021 ◽  
Vol 2021 ◽  
pp. 1-8
Author(s):  
Dongwen Xie ◽  
Hui Deng
Keyword(s):  
Performance Evaluation ◽  
Performance Management ◽  
Performance Appraisal ◽  
Balanced Scorecard ◽  
Management System ◽  
Evaluation System ◽  
Performance Management System ◽  
Appraisal System ◽  
The Balanced Scorecard ◽  
Performance Evaluation System

In the current era of new economy, the competition between enterprises is becoming increasingly fierce. In many performance evaluation tools, EVA’s balance sheet scorecard has gradually become a more convenient management tool for organizations to implement strategies. The introduction of a balanced scorecard (if used properly) in the company’s performance evaluation will greatly improve the management efficiency of the organization and play a better role in promoting the enterprise to achieve the best resource allocation. This article aims to analyze the status quo of the EVA balanced scorecard in the performance appraisal system and its implementation in the enterprise through an overview of the relevant concepts and basic theories such as the balanced scorecard, combined with the theory of enterprise performance evaluation, such as the balanced scorecard. And strategic performance evaluation theory and other related theories established a series of effective management methods that match the EVA balanced scorecard. Use performance management system model calculation and performance evaluation system design to study the role of EVA-based balanced scorecard in building the performance evaluation system. Exploring the EVA balanced scorecard through experimental research can not only really improve the shortcomings and problems of the single performance appraisal system used by enterprises but also make it more in line with the company’s strategic development requirements and promote the realization of the strategy. The goal of the company: the experimental results of this paper show that 80% of the company’s operating conditions in the EVA-based balanced points performance evaluation have increased year by year and also confirmed that the EVA performance management system is a future-oriented performance management system.

The relationship between performance appraisal system and employees' voice behavior through the mediation-moderation mechanism

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Khalid Rasheed Memon ◽  
Bilqees Ghani
Keyword(s):  
Performance Appraisal ◽  
Psychological Empowerment ◽  
Vital Role ◽  
Voice Behavior ◽  
Perceived Fairness ◽  
Appraisal System ◽  
Empowering Leadership ◽  
Content Type ◽  
Performance Appraisal System ◽  
The Relationship

PurposeThe purpose of this study is to investigate and articulate the performance appraisal process as a tool, used for the development of voice behavior through the fostering of trustworthiness and empowering culture in the organization.Design/methodology/approachData has been collected through survey instruments, filled by employees and their coworkers. The study proposes and tests a new model based on the relationship between performance appraisal and voice behavior through the moderation-mediation mechanism. Data analysis has been performed using SEM through SMART PLS 3.FindingsResults show that a strong and positive relationship exists between performance appraisal and voice behavior through the mediating variable of psychological empowerment. The moderators, empowering leadership and perceived fairness have played vital role in boosting psychological empowerment and strengthening the relationship with performance appraisal.Research limitations/implicationsThe study presents the performance appraisal system as one of the antecedents of employees' voice behavior generated through psychological empowerment (mediator) and perceived fairness and empowering leadership (moderators) since the appraisal system is to be implemented through the leader.Originality/valueThe study presents a unique and innovative idea while it tries to explore and measure the different effects/impacts of the relationship between performance appraisal and voice behavior.

HR analytics and performance appraisal system

2017 ◽  
Vol 40 (6) ◽  
pp. 684-697 ◽  
Author(s):  
Anshu Sharma ◽  
Tanuja Sharma
Keyword(s):  
Conceptual Framework ◽  
Performance Management ◽  
Performance Appraisal ◽  
Appraisal System ◽  
Improve Performance ◽  
Content Type ◽  
Organizational Settings ◽  
Employees Satisfaction ◽  
Management Area ◽  
And Performance

PurposeThis paper aims to explore the role of human resource (HR) analytics on employees’ willingness to improve performance. In doing so, the paper examines issues related to the performance appraisal (PA) system which affect employees’ willingness to improve performance and how HR analytics can be a potential solution to deal with such issues. Design/methodology/approachThe paper develops a conceptual framework along with propositions by integrating both academic and practitioner literatures, in the field of HR analytics and performance management. FindingsThe paper proposes that the use of HR analytics will be negatively related to subjectivity bias in the PA system, thereby positively affecting employees’ perceived accuracy and fairness. This further positively affects employees’ satisfaction with the PA system, which subsequently increases employees’ willingness to improve performance. Research limitations/implicationsThe paper provides implications for both researchers and practitioners in the performance management area for improving employees’ performance by applying HR analytics as a strategic tool in the PA system. It also provides implications for future researchers to empirically test the conceptual framework in different organizational settings. Originality/valueThe paper offers insights into how the use of HR analytics can deal with issues of subjectivity bias in the PA system and positively affects employees’ willingness to improve performance.

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