Assignment 2 - Huawei

Introduction :

Performance management is the important tool to realize enterprise strategy, is an important supporting part of corporate strategy, therefore, the enterprise performance management should conform to the enterprise’s development strategy. However, many private enterprises performance management separate from development strategy, and even some private enterprises only pay attention to performance evaluation results, regard performance management as performance appraisal, eventually, making performance evaluation become a mere formality. What’s worse, the most private enterprises just absorbed in performance management methods or focused on currently performance rating, instead of pay attention to analysis relation between performance management with corporate strategy. For example, in the private enterprises gathered place, the Pearl River Delta of China, according to survey about 85.9% of enterprises adopt performance management tool, but more than half of the enterprise is not fully understand it. And according to the respondents the performance plan, performance interviews and other activities of performance management process in approximately half enterprises become a mere formality. As a result, the staff and department didn’t agree with the enterprise’s strategic goals and objectives, often appear department and individual performance is good except for enterprise performance.

The Improvement Suggestions based on Huawei’s Performance Management System :

Huawei become the leader of other companies, not only because the performance management process round in efficient cycle with internal performance plans, performance implementation and management, performance evaluation and performance feedback, but also because other aspects of human resource management combined in a whole. Performance management closely linked together with the enterprise’s position system, qualification system, personnel selection and training system, salary management system. Therefore, other private enterprises of Chinese can figure out suggestions from the following aspects.

1. Clear Performance Management Goal

From the above analysis we can see that the performance management of enterprise is a system engineer process, which include a series cycle activities according to the target. And performance management is service for the development of enterprise, as a result, the performance management goal must be coordinated to enterprise’s development and make full analysis, make accurate judgment to the development aim of enterprises, when carries out the performance system. So that we can eliminating barriers―not clear employees’ purpose and uncertainty psychology elements―for late implementation of performance management. The managers of enterprises can follow these tips to gain explicit about their performance management goal. Firstly, make the performance management knowledge popularization for all employees. Secondly, introduce and cultivate performance management talents help to understand performance management goal, at the same time, promote the organization strategic target and encourage employees setting their own goals according to enterprise goal. Third, detail performance management process and improve the application of evaluation results to help the employee clear performance management goal.

2. Set up Perfect Performance Management System

Performance management is a dynamic cycle system, which contains performance objectives, performance coaching, performance evaluation and application of performance results all of them closely linked together and any link disconnect will lead to the failure of performance management. Currently, there is a biggest problem in Chinese private enterprise that is the lack of scientific performance management system. And performance management is not equal to performance appraisal; performance appraisal is only a link in the performance management system. It is meaningful to set up perfect performance management system for realizing the strategic goal of private enterprises and great significance to improve the employee’s work performance. There are some tips to help improve performance management system for the private enterprises: a) the enterprises should take the enterprise strategy as guidance and ensure organization performance combined with employee performance, when formulating performance plans, b) the enterprises can combine qualitative indexes and quantitative indexes, not perfection just accords with the practice of enterprise development when take performance appraisal index, c) it is necessary to take flexible management of high frequency and rigid examination combined with low frequency in the performance evaluation, d) the enterprises should timely feedback to the reviewed evaluation results through the form of interviews after the performance assessment.

3. To establish a Scientific and Reasonable Performance Appraisal System

Performance appraisal is the core of performance management, which can directly reflect the work and performance completion for employees. To establish scientific performance appraisal system, private enterprises can improve the following aspects.

First, choose the appropriate performance appraisal main body, it mainly includes the self-assessment, assessment of the superior, peer assessment, external evaluation and at a lower level evaluation several types, and different appraisal main body with different advantages and disadvantages, private enterprises must combine their own actual as well as the purpose of performance appraisal, to choose the appropriate performance appraisal main body. Second, set a reasonable performance appraisal interval, too frequently may waste enterprise’s resources, too little may not reach the performance appraisal purpose. Therefore, the performance appraisal interval should be based on different employees’ position and job nature in private enterprises, strive to science. Again, set up scientific and reasonable performance evaluation indicators, when set up performance appraisal index, private enterprises should highlight and make conveniently operation, and make the index of performance appraisal content real integrity, scientific and reasonable, at same time, and should adopt quantitative data as far as possible, avoid or reduce the index of those prone to understanding deviation. Last, training performance rater, as is shown in Huawei’s performance appraisal system, it is a comprehensive scope including itself, superior and the same level altogether to appraisal and everyone understand clearly of significance and value to appraisal. So, in private enterprises it is necessary to train raters before performance assessment, the raters can truly realize the meaning and value of performance appraisal and clearly understand the performance appraisal content through training, eventually, using appropriate performance appraisal method.

4. Establish an Effective Performance Management Communication Mechanism

In the process of performance management, the lack of communication mechanism, can lead to assessed rights abuse, thus caused controversy and disputes. Particularly, private enterprises should pay attention to build performance management communication mechanism. Because of the enterprise managers tend to be the founder of the company, or its members of the family may abuse their manage rights. Therefore, it is necessary to private enterprises to set up effective communication channels, in order to avoid managers from the frontline staff. In specifically, on the one hand, the enterprises encourage employees take part in formulate performance planning and performance appraisal process, on the other hand, managers should be constantly communicate with employees, find the problems in the process of assessment and should be timely feedback to employees, at the same time, provide useful information, discuss countermeasures, help employees improve performance and complete performance targets.

Cycle : Half Year Cycle

Further Improvement :

As a leader private enterprise in China, Huawei’s advance performance management model provides us with a lot of revelation, for example all attend to formulate with performance planning and every employee makes their own goal combined with enterprise’s strategy goal. Moreover, with scientific performance appraisal indicator system it not only guarantees fairness and effectiveness appraisal results but also provides basis for managers in promote, reward and punish, and at the same time, efficient and timely performance feedback and interview can help the employee clearly understand performance assessment goal and know how to improve their performance for the rest work. Also other aspects, such as its unique management methods with military culture system, in some extent, help to implement its performance management system. But, it may be an effective performance management model in a certain period. In the long run, other enterprises should seek for performance management system that is effective to their special enterprise culture and management system. Therefore, other enterprises not only need to learn from other advanced management system land methods, just like Huawei, but also need to build the cultural of innovation.

Although this work analyzes some urgent problems that exist in current private enterprises of Chinese and based on Huawei’s performance management system, provides some improvement suggestions. There are several aspects that need to be studied deeply in the future about this subject, for example the description is not comprehensive and specific about the mode of Huawei’s performance management system and lacks of data and empirical research evidence. At the same time, the analysis in recommended suggestions can be detailed in specific tips with some tools, just like how to evaluate efficiently with scientific indicators, which all need further work in depth.

Suggested Model : 720 degree Appraisal

720 degree performance appraisal is one of the most recently introduced concepts. As the name suggests, 720 degree performance appraisal is the evaluation of the performance of an employee from all the aspects and giving timely feedback to ensure that the person is able to achieve the set goals before the next appraisal.
760 degree feedback is performing a feedback after the main 360 degree appraisal. Many management experts feel that doing the comprehensive 360 degree appraisal is not complete in itself. The field at an effective procedure to measure improvements and receive feedback is essential for the success of any appraisal.

This gives a pre- and a post intervention result. The pre-intervention result sets the baseline. The development intervention is done done to the participant's behavior. (Eg. Training and coaching) . The boost intervention Subway then show the amount of improvement in the results.

720 degree as the name suggests, 360 degree twice- doing the appraisal once where is the performance of the employee is analyzed and having a good feedback mechanism where the boss sits down with the employee and another time and give them feedback and tips on achieving.

Disadvantages :

1. Exceptional expectations for the process.
2. Insufficient training and process understanding.
3. Focus on negatives and weaknesses.
4. Rater inexperience and ineffectiveness.
5. Requires commitment of top management and human resources.