Research on enterprise performance evaluation and incentive mechanism The same paper How to write Please.

The use of performance appraisal in the incentive mechanism

Abstract: In recent years, China's enterprises are increasingly using the performance appraisal system to motivate the potential of employees, however, the general effect is very little. Based on this situation, this paper from the performance appraisal process design, methods and results of feedback in the incentive mechanism to play a role in the analysis, proving that a reasonable performance appraisal can become the core of the incentive mechanism, play a role in promoting, on the contrary, there is a negative effect. On this analysis, the enterprise how to promote the performance appraisal really play a role in motivating employees to provide some reference.

Keywords: performance appraisal, incentives, utilization

I. Introduction

At present, performance appraisal has become one of the core aspects of enterprise management, and the critical degree of its impact on enterprise performance has been widely noticed by enterprises. Performance appraisal mainly assesses the past performance of employees, focusing on the current value of employees, high performance work system is conducive to improving employee satisfaction and motivation, thus enhancing work performance. Performance appraisal refers to the appraiser against the work objectives or performance standards, the use of scientific and reasonable methods to assess the completion of the employee's work tasks, the degree of fulfillment of the employee's job duties and personal development status, and will assess the results of a process of feedback to the employee. The main content of the appraisal includes the performance, work ability and work attitude shown in the work process, and the evaluation results are used to judge whether the appraisee is competent for his/her job. The ultimate goal is to confirm and encourage the appraisee's work achievements, improve the appraisee's work style, improve their work efficiency, test the reasonableness of the appraisal method, and whether the appraisal can achieve the role of motivating employees. Performance appraisal is a common means of human resources in the management of the work, but also to motivate the staff of the usual methods, for human resources management thinking other parts of the provision of basic information. [1] performance appraisal is the superior managers and employees to *** with the cooperation, collaboration way to complete, which has a strict requirement: between the superior and the employee to have a continuous two-way communication channels, otherwise neither achieve the purpose of the assessment, but also can not achieve the role of incentives. This is a constructive measure in order to achieve the goals of both sides, what is needed is between employees and appraisers *** with efforts, remove barriers, *** with learning, *** with improvement, to achieve a win-win situation.

The incentive mechanism is the sum of various incentives in the enterprise, the establishment of incentives, with many important role and purpose, to be clear in what conditions and under what premise, employees are more willing to work on time, more willing to stay rather than jump ship, how to be more efficient. Performance appraisal in the motivation of employees has a lot of variables, it is worth people to further study. Practice has proved that a reasonable and scientific incentive mechanism is a single track for enterprises to achieve their goals, and the other is the performance appraisal, they complement each other, and this dual-track operation can ensure that enterprises move forward in the right direction. Harvard University Professor William. James in an employee incentive survey research found that hourly paid employees as long as the ability to play 20% - 30% of the job can be kept, if given adequate incentives, then their ability to play to 80% - 90%. [2] This shows that, with the continuous progress of science and technology and the increasing complexity of production technology, relying on machinery and equipment alone can not increase production, stimulate the creativity of the staff and the spirit of innovation becomes more and more important. Today's fierce competition at home and abroad, enterprises in order to survive and develop, and constantly improve their competitiveness, we must maximize incentives for all workers, fully tap the inherent potential of human resources, is more employees can voluntarily go to the realization of the organization's goals and struggles. From the performance of the work to see the incentive: performance = ability × motivation That is, if the ability of the two workers equal and performance is completely different or there is a big difference, then the reason is very simple, that is, motivation bias, and the key to solving this problem is what? It is to find ways to guide the enthusiasm to the right direction, make the right choice, and constantly only with incentives, sustained and stable mobilization of the enthusiasm of the workers to achieve the ultimate goal.

So a systematic, scientific, reasonable performance appraisal can improve the positive effect of incentives, can effectively motivate employees to attach to the enterprise, and strive to complete the work objectives, to achieve the ultimate vision and mission of the enterprise.

Second, the two-way performance appraisal program design to promote incentives for the incentive mechanism of the incentive effect

The main basis for the enterprise to develop a performance plan is the employee's work objectives and job responsibilities. In the performance planning stage, business managers and employees need to reach a **** knowledge of the performance expectations, on the basis of **** knowledge of the employee's commitment to their own work goals, managers of the employee's commitment to confirm. Between managers and employees *** with the input of participation in the program design of the plan is more able to motivate employees to complete the task, this agreement type of program development, more stimulate the sense of responsibility and recognition of employees, so as to achieve the enterprise and the employees of the *** with the goal. Research shows that when people are personally involved in the development of a decision-making process, they will generally tend to adhere to the position, and in the process of external forces will not easily change and change the position of the employee public commitment to the content of a strong incentive.

As the saying goes: "the plan is the precursor to action", there is no performance appraisal plan, work up to go east and west, it is difficult to achieve the organization's individual employees *** with the same goal. [3] performance plan design can ensure that the organization, the implementation of team plans, individual work plan to obey the organization, at the same time, the implementation of the organization's plan depends on the work of the employees, and the employees of the individual plan to formulate a good or bad, is directly related to the survival and development of the organization, and each other to play a catalytic role.

Advantages of bidirectionality: help the organization's goals and objectives of personal development of employees combined. All levels of program development, fully absorb the views of employees, can provoke the interest of employees to complete the goal. Philips semiconductor division of the staff, from the original increase of 5% of the change program, to later increase to 20% of the target, is the result of a higher degree of employee participation. [4] lost direction, the ship can only follow the waves in the sea, there is no return, there is no goal of the people, can only be in the wasted time in the waste of time, the direction and the goal of the people's incentive role is huge. With the goal of no power ship, but also can only float around, miserable fate.

Employee participation in the performance appraisal design, to facilitate employees to find their own strengths and weaknesses, the plan needs to be in the environment and their own situation in a holistic manner, so that employees can fully recognize their own strengths, know their own shortcomings, in order to achieve their goals, what kind of requirements for the enterprise, better communication with the department to obtain recognition and help. Clearly defined goals, with knowledge of their own situation, the requirements of the enterprise and the enterprise to give the conditions of knowledge, employees can be in accordance with the objectives of the requirements to complete the task. This kind of full participation of employees, independent management, *** with mutual assistance, collaborative work can achieve the best use of materials, people make the best use of their talents, why not?

This understanding, in the planning stage, enterprises should do to create a good communication atmosphere, requiring managers and employees to pay attention to this process, to determine a special time for the performance plan to communicate, and the atmosphere of communication to be relaxed, rather than give each other pressure. It is best to choose those casual places, coffee shops, etc., so that employees can easily accept, so as to achieve the effect of motivation. Communication process, managers and employees to maintain an equal relationship, communication, business managers should not only listen to more employees' opinions and suggestions, but also to summarize and analyze the staff's target ideas, know that employees in mutual coordination and cooperation to achieve their personal goals, and finally to encourage employees to make a decision, and employees with the implementation of corporate performance management.

Third, a reasonable performance appraisal method to promote incentives for employees

With the crazy growth of foreign companies in China, most of the enterprises in China are also facing unprecedented challenges. Based on this situation, China's home industry has also taken some effective measures to rectify the situation, they also establish their own performance appraisal program to motivate employees. Want to establish a set of suitable for the enterprise, performance-based incentive system, good and bad evaluation of employee performance and effective feedback to stimulate each employee's enthusiasm for work and the spirit of innovation, is a science, but also an art. Scientific and reasonable performance appraisal will combine qualitative and quantitative assessment, the use of effective promotion, promotion incentive system to reflect the principle of fairness and justice, through a variety of awards, promotions to motivate employees enthusiasm and creativity, and become the fundamental task of the enterprise.

Appraisal to really create value in the enterprise staff, play a traction and incentive role, is indeed a challenging task. Below, on the two common appraisal methods to analyze the role of the enterprise to motivate employees.

1, 360-degree appraisal method combined with Masnor's hierarchy of needs.

360-degree feedback, also known as the "360-degree performance appraisal method" or "all-round assessment method", first known as the "symbol of the power of the United States," the model of enterprise Intel first proposed and implemented. [5] 360-degree performance feedback refers to a full range of perspectives from the employees themselves, their supervisors, direct subordinates, colleagues and even customers to understand the individual's performance, as shown in Figure 1. Communication skills, interpersonal relationships, leadership skills, administrative skills ...... Through this ideal performance evaluation, the evaluated person can not only get feedback from multiple perspectives from himself, his supervisor, his subordinates, his colleagues and even his customers, but also clearly know his own deficiencies, strengths and development needs from these different feedbacks, so that his future career development will be The first step is to get a better understanding of what is happening in the workplace.

Figure 1: 360-degree appraisal schematic

Through 360 this top-down assessment method, can synthesize the views of various aspects, from different perspectives to recognize the staff as a whole, so that employees are more aware of their own strengths and weaknesses, to continue to carry forward or continue to improve, so as to achieve the purpose of improving performance, and also be able to continue to motivate employees to do their own best. However, employees have mobility, we need to combine the actual situation and needs of employees to specific operations. This method of assessment of a person is more impartial, when the superior and subordinate assessment has a big difference, managers should communicate with the staff in a timely manner, should be in the existence of dissenting views of the place to go to get the same opinion, the superior to help the subordinate to improve the mood of the subordinate staff can make the employees feel comfortable, have a sense of belonging, and more incentive effect. 360-degree appraisal to promote the incentive mechanism to improve the incentives to improve the incentive role.

Secondly, the advantages of 360-degree appraisal also have different characteristics of different appraisers, as shown in Figure 2:

Appraisal subject Advantages Disadvantages

Supervisor With a clear goal-oriented, understanding of the business content, subject to the personal subjective influence of the appraiser is obvious

Colleagues Work with each other for a long time, know more, evaluation is more objective, and conducive to collaboration and unity Sometimes

Subordinates can diagnose the management style and get feedback from subordinates

Customers can get information from outside the organization, which is objective and fair.

Figure 2: Characteristics of different appraisers

And Maslow's Hierarchy of Needs Theory divides human needs into five levels, as shown in Figure 3:

Figure 3: Maslow's Hierarchy of Needs

The five types of needs are like a ladder, from low to high, and in general, people are always from the lower to the higher level of fulfillment of the needs of a level will be satisfied like a higher level, the lower to the higher level of fulfillment of the needs of a level will be satisfied like a higher level. The level of fulfillment will be like a higher level, and the higher the level, the lower the percentage of fulfillment. Sometimes, at the same stage, different people have different needs, and even the same person is governed by multiple needs. When managers use the 360 degree assessment program, they have to be far-sighted and not rattled. According to western management psychologists, Masnow's Hierarchy of Needs can help entrepreneurs manage their business and motivate their employees. Table 1 is a reference table that closely integrates the Hierarchy of Needs with management practices.

Table 1 Hierarchy of Needs and Management Measures[6]

Hierarchy of Needs Triggers (Pursued Goals) Management Systems and Measures

Need for Safety Salary, Healthy Working Environment, Various Welfare Benefits Physical Health Care (Medical Facilities), Working Hours (Rest), Residential Facilities, Welfare Facilities

Need for Safety Job Security, Accident Prevention Employment Guarantee, Pension System, Health Care Facilities

Need for Safety Job Security, Accident Prevention Employment guarantee, pension system, health insurance system, accident insurance system

Need for love Friendship (good relationship with people), acceptance by the group, and consistency in the organization Negotiation system, profit distribution system, group activity system, recreation system, education and training system

Need for respect Status, fame, authority, responsibility, and salary in relation to other people. Appraisal system, promotion system, recognition and bonus system, selection system, committee participation

Self-actualization needs Organizational environment that can develop personal strengths, challenging work Decision-making participation system, proposal system, research and development plan, labor-management meetings

From the above 360-degree appraisal and Masnor's hierarchy of needs, business managers need to develop appraisal priorities according to the needs of their employees in order to achieve motivation. Develop the focus of the assessment in order to achieve the purpose and effect of motivating employees. First of all, to meet the security needs of employees is the basis, there is a reasonable salary design, assessment and salary benefits linked can play a role, often can stimulate employees to complete the established goals. Second is the need for safety, safety is also very important for employees, just imagine, no safety and security of the enterprise can expect employees to achieve what kind of standards? Can they risk their lives to work for the business? Once again, the need for belonging and love, the enterprise is a team, regulating the staff perception of teamwork can improve employee satisfaction, thereby improving motivation, the relevant system of discussion and development of the need for employee participation. Fourth, the need for respect, in the 360-degree assessment, promotion, promotion as one aspect of the assessment, can motivate employees to work hard for this respect. Finally, the assessment method is not set in stone, business managers also need to be clear that the current situation in China, many employees have a stronger need for self-realization, in the implementation of 360-degree assessment, as far as possible, can take into account the self-realization of the staff, so that the human potential of the reality in order to achieve the perfect human nature. [7]

In short, as long as the appraisal mechanism and the theory of need are reasonably used together, taking into account the strengths and weaknesses of all aspects, you can activate the incentive mechanism of the enterprise to form a good, healthy circulatory system. This system is a kind of values and corporate culture, employees as a living organism is not simply have external forces or unconscious impulses to control, but by their own values and selective domination. Motivation theory is directly or indirectly based on the theory of human needs, there is a need to cause motivation, motivation needs to find goals to meet the needs of the driving force to inspire employees to achieve the goals of the enterprise. The 360-degree assessment and the needs of the theory of integration, which captures the key, the staff in order to their own needs will be the development of productive forces to change the means of production, so that the enterprise continues to progress. People's needs vary according to different situations, according to the different needs of different people, targeted to take different assessments, in order to really achieve results.

2, the goal management method of assessment of the role of staff incentives

Goal management: goal management is goal-oriented, people-centered, results-based criteria, and the organization and individuals to achieve the best performance of modern management methods. Goal management is also known as "results-based management", commonly known as accountability. It refers to the active participation of individual workers in the enterprise, from top to bottom to determine the work objectives, and in the work of the implementation of "self-control", bottom-up to ensure the realization of the objectives of a management approach. [8]

The assessment of goal management is to reward employees for their work, this assessment is particularly useful for productive, quantitative production goals of employees, in China's current situation of labor-intensive enterprises, the role of this assessment system has been greatly strengthened, but also played a great incentive to motivate employees to complete the goal has become the primary purpose of the employees.

First of all, the motivational role of personal participation in goal-setting. American psychologist Frum believes that people are always eager to meet certain needs and achieve certain goals, this goal in turn has an impact on the motivation to stimulate people, the size of this stimulating force depends on the goal effectiveness and expectations. [9] This shows that the degree of importance of employees to the goal will directly affect his motivation to achieve the goal and behavior, because the realization of the goal is dependent on the unremitting efforts of employees themselves, only recognized goals have the temptation to stimulate the staff's energy to produce a strong motivation. Through this step, in order to achieve the "self-control" function of motivation, employees clear their own goals, powers and responsibilities, you can compare their own labor results and goals to evaluate their own performance, whether they can meet the assessment standards.

Secondly, the incentive function of the sense of responsibility. The reason why the appraisal method of goal management also plays a role is that it can enhance the sense of responsibility of employees, and the sense of responsibility is a huge motivating factor. In fact, many employees' motivation comes from being driven by a strong sense of responsibility, to give full play to the staff to achieve the goal of enthusiasm, initiative, creativity, enhance the sense of responsibility is an important way. The most effective means of enhancing the sense of responsibility is to implement the process of achieving the goal of "self-control", relying only on mandatory management tools to achieve the goal, it will be counterproductive, can not obtain the recognition and respect of the staff can not be inspired by the enthusiasm and initiative, the goal will be difficult to achieve or fail to achieve the required quality.

Once again, the goal itself to stimulate the function of guidance. The goal is the desired results, whether individual, departmental or overall efforts. Objectives not only for the management decision-making level to point out the direction, but also for employees to provide a measure of the actual performance of the standard, the assessment method of goal management can produce a huge incentive for employees, the goal is determined, it can make the staff clear direction to see the prospects, and therefore can play a role in inspiring the people, invigorating and motivating the role of the fight; and in the implementation of the goal process, due to the development of the goal has a precedent and challenging. In the actual implementation process and the realization of the process must be achieved through certain efforts, thus helping to stimulate the enthusiasm and creativity of the staff; when the management and staff to achieve the goal, due to the desire and pursuit of fulfillment, the staff also see their own expected results and achievements, will psychologically produce a sense of satisfaction and pride, which will motivate the staff to undertake new tasks to achieve the new goals with greater enthusiasm and confidence, the formation of the new goals. This will motivate employees to take on new tasks with greater enthusiasm and confidence to achieve new goals, forming a virtuous cycle system. [10]

Fourth, the correct and full use of appraisal results to motivate employees

Performance appraisal process is the main incentive for employees, through the process of more convenient to correct the problems that arise is very effective, but we can not ignore the auxiliary role of the assessment results. Different companies have different use of the assessment results, of course, also play a different incentive effect, not only that, not the same performance appraisal method of the results of the focus of different. 360 degree assessment method and the results of the target assessment method in the use of incentives to employees on the existence of differences, each focus, but also complement each other.

360-degree appraisal, the main performance in motivating employees can provide feedback guidance and avoid assessment errors. Provide feedback guidance: 360-degree performance appraisal emphasizes multi-perspective and effective communication, the results from various aspects, conducive to employee self-knowledge and introspection, direct guidance to the employee's personal career development. Good can help employees recognize their positions, if necessary, can make position changes, if the performance is not good, may be because the position is not suitable, can be adjusted to engage in their own more adept position, good can help employees recognize their weaknesses, to provide information for their own training and development. Avoid appraisal errors: 360 performance appraisal is an all-round appraisal, can reduce the appraisal error, every employee hopes that their assessment results are true and reliable, is fair and just, in order to make the staff convinced, so that employees recognized, to avoid staff appraisal results of the distortion of the state of the staff to affect the mood of the staff, so as to achieve the effect of incentives.

The results of the target assessment are more incentivizing for employees. The results of the target assessment is commonly used to meet the physiological needs of employees rather than the improvement of the strategic plan, in order to enhance the incentive role of the salary, in many enterprises, the completion of the target and the completion of the amount with the amount of salary incentives and wages linked to the general sales staff and production workers are only with this system. Employees often in order to achieve the results of the assessment objectives, work hard to achieve their own and the enterprise's **** the same period of time, a reasonable goal plan can make the staff full of motivation, and the correct evaluation and recognition of the results of the work of the staff can accelerate the staff of the enterprise's pedestrians and loyalists to stimulate the motivation of the staff's creativity.

V. Conclusion

Performance appraisal is not for the appraisal and appraisal, appraisal is only a means of management rather than the purpose of management. If an enterprise's appraisal system can not inspire employees, can not integrate the development of employees with the growth of the enterprise, then the assessment of this enterprise is not meaningful, the assessment system of this enterprise is also ineffective. How to make employees see the organization's mission goals as their own mission goals through effective performance appraisal? So that employees to achieve such goals and consciously work hard?

First, the enterprise should continue to enhance the consciousness of the management and quality ability, strengthen the development of management ability of managers, really make them play traction at all levels of enterprise management. [11] Industry managers should be through the process of assessment, the results of the staff's work motivation to guide and incentivize the staff to grow in the effective incentives. Continuously improve themselves.

Second, the smooth progress of performance appraisal is inseparable from the establishment and improvement of the overall human resources development and management framework of the enterprise, the enterprise should be from the overall strategic vision to build the entire human resources management of the building, so that the performance appraisal and human resources management of the other links, especially incentives, interlinked and mutually reinforcing. [12] Specific measures include: timely confirmation of goals and performance counseling; assessment of the corresponding rewards and punishments given in a timely manner after the assessment or supervision of the improvement; the assessment results will be used in training and so on. If these measures are not complete, the performance evaluation effect can not be guaranteed, motivating employees will become a piece of paper, a form.

Third, the performance appraisal to respect the value of employees as the main theme of creation, although it is in accordance with the administrative function of the structure of the formation of a vertical extension of the appraisal system, but it should also be a two-way interaction process, the appraisal of the work not only to the main items, objectives and values of the work passed on to the employees, but also respect the value of employees to create, both sides to reach **** knowledge and commitment. [13] Communication between employees and managers can be accomplished with the help of rambling and random harmonious conversations.

Fourth, to make full use of the performance appraisal to mobilize the enthusiasm of employees, not only to pay attention to the material benefits and working conditions and other external factors, but also to pay attention to the spiritual encouragement of people, to give employees the opportunity to grow, develop and promote. To fully link the appraisal mechanism and Masnor's theory of need, a full understanding of the needs of employees in order to truly achieve the role of motivating employees.

In short, an effective performance appraisal system is an important basis for the establishment of a scientific incentive mechanism. Enterprises must be based on the characteristics of the times and the needs of employees, the performance evaluation and incentive mechanism organically combined, in the scientific performance evaluation system to fully motivate employees to work, in practice, constantly summarize, improve and innovate, correct, reasonable and scientific use of different performance appraisal to mobilize the enthusiasm of employees. The incentive system constructed in this way will really adapt to the current development requirements, in order to meet the more intense challenges of the market.

References:

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[2] Yu Wenzhao, Modern Motivation Theory and Application [M]. Liaoning: Northeast University of Finance and Economics Press, October 2006: 5

[3] Liu Rui, How to conduct performance management [M]. Beijing: Peking University Press, December 3003: 135.

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[8] Hua Guijun, Objective Management to Improve the Performance of Grassroots Managers [J]. China Human Resource Development, 2010 May: 943--45.

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[10] Zhao Guoqiang and Yang Weifeng, Management Psychology [M]. Kaifeng: Henan University Press, December 1995: 34.

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This paper starts from the enterprise performance appraisal, links the role of performance appraisal with the departmental incentive mechanism, and analyzes the several aspects of the performance appraisal's design, operation, and the results to the The role of employee incentives to analyze, and finally put forward a few suggestions for enterprises.

The article is clear and reasonably organized, able to link the subjects studied to analyze the problem, combining the 360-degree assessment program and Masnor's hierarchy of needs, psychologically analyzing the conditions to meet the needs of employees, and fully mobilizing the enthusiasm and creativity of employees, with novel ideas; on the other hand, from the incentive role of goal management to analyze the performance appraisal in the incentive mechanism, from several aspects to summarize the core role of performance appraisal and incentive mechanism. The core role, from several aspects to summarize how enterprises use performance appraisal to motivate employees to achieve *** with the purpose.

However, due to incomplete knowledge, the ability to analyze the problem is relatively weak, the content is relatively shallow, the depth of analysis of the problem is limited, resulting in the article is bland and lack of creativity. Personally, I feel that there are weaknesses and strengths, feasible score 80 - 85 points.