Performance Management System Chapter 5 PDF

Chapter 5: Quality Standards and Employee Dimension Introduction In order to understand quality systems, one must understand their quality. As lots of definitions have been given but some of them are most informative as follows:  The features and characteristics of a product, a...

Chapter 5: Quality Standards and Employee Dimension Introduction In order to understand quality systems, one must understand their quality. As lots of definitions have been given but some of them are most informative as follows:  The features and characteristics of a product, and service, which bear upon its ability to satisfy a stated and implied need.  Fitness for purpose.  Meeting customer’s requirements and exceeding their expectations  Doing things right the first time. The essence of these quality definitions is to pride the company's operating system which promotes conformance to specification. The more towards quality assurance rather than quality control philosophy and the ever-increasing pressure to provide better quality products led to the adoption of the concept of the quality system. Learning Objectives: At the end of the lesson, the students should be able to:  Appreciate the quality standards before the implementation of performance management; and  Understand employee dimensions and its important contribution. Course Materials: QUALITY SYSTEM The quality system is the original structure, responsibility, procedures, process, and resources for implementing quality management. According to this approach, quality system covers all business functions except finance. The main element of the quality system:  Manufacturing process:  Development  Design  Purchases  Purchase  Customer Service  Process Engineering  Validation  Inspection  Training  Delivery  Customer Order  Customer Order  International Organization for  Service Process Standardization (ISO) Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  ISO is a specified agency for standardization. It is a worldwide federation of national standard bodies of more than 100 countries. ISO 9000 standard emphasizes that a quality system is the right way to achieve and maintains quality standard. ISO 9000 is equally applicable to small and large organizations. It defines basic concept-specific procedures and formulates criteria to ensure that the product of an organization meets the customer requirements. The main elements of ISO 9000. There are 20 elements of the ISO 9000 standard, which determine how the standard should be applied to any particular organization. The 20 elements of ISO 9000 are as follows: 1. Management responsibility 12. Inspection and test states 2. Quality system 13. Control of non-conforming 3. Contract review product 4. Design control 14. Corrective action 5. Documents control 15. Handling, storage, packaging 6. Purchasing and delivery 7. Purchases – supplied product 16. Quality records 8. Product identification and 17. Internal quality audits traceable 18. Training and development of 9. Process control the employees 10. Inspection and testing 19. Servicing 11. Inspection measuring and test 20. Statistical technique equipment Benefits of Quality Standard  Value for money  Customer satisfaction  Higher productivity  Increased profitability  Improved corporate image  Access to the global market  Growth of the organization  Higher morale of the employees Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  The following steps have been identified for developing a quality system in the organization:  Analysis – It involves an identification of the quality objective. A review of the existing quality system ensures of commitment of senior management and the development of the implementation plant.  Product and service specification – The steps involved developing contract review, procedure, design, and development procedure.  Material Control - The 3rd step involves the procedure for the specification bought in goods and services, a method for accessing sub-contractors, and the procedure for receiving raw material including sampling plant and control procedure for any material supplied directly by the customer.  Process Control – The 4th step requires a procedure for identifying the product through the conversion process and for maintaining tractability.  Inspection and Testing – This step includes the method for in-process and final checking of the product. This stage should also include details of any statistical technique.  Quality Rewards – This step requires a procedure for the maintenance and storage of quality system rewards. It also requires a procedure for periodic auditing of the systems. Procedures are also required for recording employees' training.  Quality Manual – A quality manual should be prepared which is a relatively brief document stating the business policy with respect to quality.  Quality System Design and Structure – The company in India and the world over has undertaken only one of the formalized designs of the quality system as a process development. EMPLOYEES DIMENSIONS Sirota and Weber (1994) have identified the following employee dimensions to maintain quality standards for better productivity and corporate culture in the organization.  Empowerment of Employees  Sense of direction  Reward and Recognition  Fact-based decision-making  Training and developments  Continuous improvements  Open communication  Collaboration  Employee’s orientation  Corporate citizenship Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  From the above, we can say that in any organization the way of recognizing of people is as under:  Develop a scenes’ award specifically for those whose actions aren’t usually in the limelight, make sure such awards are in the limelight  Create a best-ideas-of-the-year booklet and include everyone’s picture, name, and description of their best ideas.  Feature the quality team of the month and put their picture in a prominent place.  Honor peers, who have helped you by recognizing them at your staff meetings  Let people attend meetings, committees, etc. in your place when you’re not available.  Create a visibility wall to display information, posters, and pictures, thanking individual employees and their teams and describing their contributions.  Take interest in employees’ development and set up appropriate training and experience to build on their initiatives.  Get your team’s pictures in the company newspaper newsletter.  Ask people to help you with a project you consider to be especially difficult but which provides a real challenge.  Send a team to special seminars, workshops or meetings, outside that cover topics they are especially interested in.  Promote or nominate for promotion, those people who contribute most to improvement over a period of time. Quality of life can be obtained by focusing on principle. We must realize that we do not control authority but our principals do, yes – we can control our actions but not the consequences of our actions. Building character and creating quality of life is a function of aligning. Our beliefs and behavior must be in concurrence with universal principles. These principles are impartial, external, factual, objective, and self-evident. As human being, we have four unique endowments i.e., self-awareness, conscience. Independent and creative imagination. We must nurture these four endowments by following these ways: 1. Educate your conscience by learning, listening, and responding. 2. Have a high trust, culture by avoiding lies, cover-ups, game playing, backroom manipulation, and bad-mouthing. 3. A life of total integrity is the only one worth striving for granted. It is a struggle. Nurture independent will by making and keeping promises. To build national integrity, start by making and keeping small promises, and slowly go ahead. 4. Develop creative imagination through utilization and visualization in a high-leverage mental Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  exercise. SEVEN HABITS OF HIGHLY EFFECTIVE PEOPLE 1. Proactive and Responsible – Proactive leaders and employees accept responsibility for their own behavior without blaming and accusing others. They act according to values and principles they identify and commit to live by; and focus on their circle of influence, wherein they can make a difference, as opposed to spending time in their circle concern, where they have little ability to contribute. When they are involved in change, proactive leaders share their own responsibilities and while working within their circle of influence make efforts to fulfill them. They don’t pass the buck and point fingers. 2. Security through shared mission, vision, principle, and values – Security lies in the clearly identifiable mission, vision, and principles that are constantly reflected in the behavior of leaders and managers. Employees are placed throughout the organization. When people feel secure in the mission and principles of the organization, they feel less threatened and, thus, offer less resistance to change in structure and systems. 3. Prioritize joint commitments – It is important for people not only to understand the mission, vision, principles, and values of the organization but also to understand and share through involvement and commitment in its strategic action plans. The difference is the understanding that strategy will change with the changing environment and the internal resources, while core mission and principles will be more constant and stable. 4. The paradigm of mutual benefits – Trust is built when people see by constant practice that leaders seek mutual benefit for employees and other key stakeholders in all their quality change decisions and initiatives. True win-win thinking requires seeking to understand the needs and wants of stakeholders and synergistic creation of their alternatives that cooperatively balance competing needs and scarce resources. 5. First understand and then be understood - Central to effective change based on win-win thinking is the constant opinion of two-way communication between all participants in the organization through a stakeholders’ information system (SIS). This two-way communication process includes:  Management with employees.  Upper management with middle management.  Departments and divisions with each other.  Headquarters with the field.  The main organization with external stakeholders and external Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM   Stakeholders with each other. 6. Constant synergistic dialogue – Through constant synergistic dialogue, the creative capabilities of the organization are unleashed through the involvement of all appropriate parties to:  Asses and evaluate organizational strengths, weaknesses, opportunities, and threats pertaining to meeting stakeholder’s needs.  Develop and implement solutions addressing any and all of them. 7. Continuous personal and organizational improvement - Continuous improvement means continuous change. When people within organizations commit to the principle that the status quo means continued innovation and progress, they reduce resistance to change and look forward to making the next series of structural and process improvements even more significantly effective. As with any complex ecosystem, organizational effectiveness and quality comes through balance. Change for the sake of change alone, and change so frequent that it becomes disruptive, uneconomical, and inefficient as well as ineffective, does not constitute quality. Leaders must never be afraid to institute change. Developing Quality Culture in an Organization Culture is not a technocratic but a behavioral issue. There are however approaches that provide a path towards quality culture. Quality problems are mostly related to management. Cultural issues apply to all levels of upper management, middle management, supervisors, technical specialists, and the workforce. Organizational Culture Can be Changed We need to provide awareness of quality by evidence of upper management leadership, self- development, empowerment, participation, recognition, and regard. To change culture, it requires a year, not a month, to change quality, requires trust not techniques. STEPS FOR CREATING QUALITY CULTURE IN AN ORGANIZATION 1. Removing organizational boundaries and internal competition. 2. Management thoughts and actions towards delivery its customers. 3. Using fact-based decision-making. 4. Continuous improvement must be encouraged. (Use of KAIZEN). 5. Do not use specially designed organizational structures for maintaining total quality. Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  6. A condition that strives to attain a world-class label is the need of the hour for companies. They must follow the seven quality maturity phases to achieve accelerated improvement. ILLUSTRATIONS ON HR DIMENSIONS DRAWN FROM CMM The Capability Maturity Model (CMM). This model is an organizational model that describes 5 evolutionary stages (levels) in which an organization, manages its process and system for its development and growth. CMM describes 5 evolutionary stages in which an organization manages its processes. Then behind the Capability Maturity Model, the origin should be able to absorb and carry its software applications. The model also provides specific steps and activities to get from one level to the next. The 5 Stages of the Capability Maturity model are: 1. Initial – Processes are ad-hoc, chaotic, or actually few processes are defined. 2. Repeatable – Basic processes are established and there is a level of discipline to stick to these processes. 3. Defined – All processes are defined, documented, standardized and integrated into each other. 4. Managed – Processes are measured by collecting detailed data on the processes and their quality. 5. Optimizing – Continuous process improvement is adopted and in place be quantitative feedback and from piloting new ideas and technologies. Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  The Capability Maturity Model is useful not only for software development but also for describing the evolutionary levels of organizations in general that an organization has realized or wants to aim for. CONCEPT OF SIX SIGMA FOR DEVELOPMENT AND GROWTH FOR AN ORGANIZATION It is not a secret society, a slogan, or a cliché. Six Sigma is a process that helps organizations focus on developing and delivering near-perfect services. Why “sigma”? the word is a statistical term that measures how far a deviates from perfection. The central idea behind Six Sigma is that if you can see the “defects” that you have in a process, you can systematically figure out how to eliminate as close to “zero defects” as possible. Six Sigma has changed the DNA of many now the way they work. Six Sigma incorporates the basic principles and techniques used in Business, Statistics, and Engineering. These three form the core elements of Six Sigma. It improves the process performance, decreases variation, and maintains consistent quality of the process output. This leads to defect reduction and improvement in profits, product quality and customer satisfaction. Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used to represent standard deviation in statistics) from mean. Six Sigma methodologies provide the techniques and tolls to improve the capability and reduce the defects in any process. Six Sigma methodologies improve any existing business process by constantly reviewing and retuning the process. To achieve this, Six Sigma uses a methodology known as DMAIC (Define, Opportunities, Measure performance, analyze opportunity, Improve performance, Control performance.) Six Sigma methodologies are also used in many Business Process Management initiatives that are not necessarily related to manufacturing. Many of the Business Process Management that use Six Sigma in today’s world include call centers, customer support, supply chain management, and project management. The Six Sigma Tool Box is a comprehensive self-help set of Documents to a system under various conditions. It covers fundamentals and provide specific service and process with individual needs and goals. To achieve Six Sigma quality, a process must produce no more than 3.4 defect opportunities. An opportunity is defined as “a chance for nonconformance, or required specifications.” This means organizations need to be nearly flawless in processes. Six Sigma is a vision many organizations strive toward and a philos their business culture. At its core, Six Sigma revolves around a few key concepts.  Critical to Quality: Attributes most important to the customer  Defect: Failing to deliver what the customer wants Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM   Process Capability: what your process can deliver  Variation: What the customer sees and feels  Stable Operations: Ensuring consistent, predictable processes to improve sees and feels  Design for six sigma: Designing to meet customer needs and process cap THE SIX SIGMA: A COMPLETE PACKAGE  Fact Sheet – Six Sigma in a nutshell. This is a simple, concise overview phrases, and concepts and basic activities are summarized.  Overview Document – This document can be used to start a discussion explain key concepts and touch on the training elements required. It is a fact Sheet, but still easy and quick to take in.  Building a Six-Sigma Organization – A document that pulls no punches commitment and skills needed to ensure a successful initiative.  Defining Requirements – One of the most important aspects of under initiative is to understand what the requirements for the initiative are. They help the organization to define its service requirements for and improve only this document to be used to collect thoughts on what is required. It can similarly be used for other initiatives in HR, and other businesses. HOW DO WE DEFINE PERFORMANCE AND WHY DO WE MEASURE IT? Despite the importance of performance appraisal, few organizations clearly define what it is they are trying to measure. In order to design a system for appraising performance, it is important to first define what is meant by the term work performance. Although a person’s job performance depends on some combination of ability, effort, and opportunity, it can be measured in terms of outcomes or results produced. Performance is defined as the record of outcomes produced on specified job functions or activities during a specified time period. For example, a trainer working for the World Bank was evaluated on her organization of presentations, which was defined as the presentation of training material in logical and methodical order. The extent to which she was able to make such methodical presentations would be one measure of outcomes related to that function. Those outcomes were evaluated by the customers who received the training. Obviously, a sales representative would have some measure of actual sales as an outcome for a primary function of that job. Customer service is likely candidate as another important function that would have different outcome measures for defining performance. College professors are typically evaluated on three general work functions: teaching, research, and service. Performance in each of these three areas are defined with different outcome measures. Students are obviously one source of data to evaluate the quality of teaching performance on the job as a whole would be equal to the sum (or average) of performance on Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM the major job functions or activities. For example, the World Bank identified eight job functions for their trainers (e.g., use of relevant examples, participant involvement, evaluation procedures). The functions have to do with the work that is performed and not the characteristics of the person performing. Unfortunately, many performance appraisal systems confuse measures of performance with measures, traits, or competencies of the person. Prescriptions for Effective Performance Management  Strive for as much precision in defining and measuring performance dimensions as is feasible.  Define performance with a focus on valued outcomes.  Outcome measures can be defined in terms of relative frequencies of behavior.  Define performance dimensions by combining functions with aspects of value (e.g., quantity, quality, and timeliness).  Link performance dimensions to meeting internal and external customer requirements  Internal customer definitions of performance should be linked to external customer satisfaction.  Incorporate the measurement or situational constraints.  Focus attention on perceived constraints on performance. Designing an Appraisal System: Appraisal can be either person-oriented (focusing on the person who performed the behavior) or work-oriented (focusing on the record of outcomes that the person achieved on the job). Effective performance appraisal focuses on the record of outcomes and, in particular, outcomes directly linked to an organization’s mission and objectives. Some Sheraton Hotels offer 25-minute room service or the meal is free. Sheraton employees who are directly related to room service are appraised on the record of outcomes specially related to this service guarantee. Lens crafters guarantee new glasses in 60 minutes or they’re free. Individual and unit performance is measured by the average time taken to get the new glasses in the customer’s hands. These are outcomes. In general, personal traits (e.g., dependability, integrity, perseverance, and loyalty) should not be used when evaluating performance since they are not measures of actual performance. They may be correlates or predictors of performance but they are not measures of performance. There are six categories of outcomes by which the value of performance in any work activity or work function may be assessed. Although all of these criteria may not be relevant to every job activity or job function, a subset of them will be. It is also important for organizations to recognize the relationships among the criteria. For example, sometimes managers encourage employees to push for quantity, without recognizing that quality may suffer or that co-workers might be affected. Likewise, they may focus on quality without emphasizing timeliness, cost-effectiveness, or interpersonal impact. Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  The Six Primary Criteria on Which the Value of Performance May Be Assessed 1. Quality – The degree to which the process of carrying out an activity approaches perfection, in terms of conforming to some ideal way of performing the activity or fulfilling the activity’s intended purpose. 2. Quantity – The amount produced, expressed in such term as dollar value, number of units, or number of completed activity cycles. 3. Timeliness – The degree to which an activity is completed, or a result produced, at the earliest time desirable from the standpoints of both coordinating with the outputs of other and maximizing the time available for the activities. 4. Cost-effectiveness – The degree to which the use of the organization’s sources (e.g., human, monetary, technological, material) is maximized in the sense of getting the highest gain or reductions in loss from each unit or instance use of a resource. 5. Need for supervision – The degree to which a performer can carry out a job function without either having to request supervisory assistance or requiring supervisory intervention to prevent an adverse outcome. 6. Interpersonal impact – The degree to which a performer promotes feelings of self-esteem, goodwill, and cooperativeness among coworkers and subordinates. Quality Performance in the Market Era We may include contextual or citizenship performance in the interpersonal impact category or outcomes. A good organizational citizen is an employee who contributes beyond the formal role expectations of a job as might be detailed in a job description. Such employees are positively disposed to take on alternative job assignments, respond cheerfully to requests for assistance from others, are interpersonally tactful, arrive to work on time, and often may stay later than required to complete a task. Contextual performance operates to either support or inhibit technical production and can facilitate their translation into individual-, group-, and system-level outcomes. Contextual performance contributions such as mentoring, facilitating a pleasant work environment, and compliance with organizational and submitted policies and procedures may have implications for several of the other outcome categories as well. If performance is defined at a more specific task or activity level, contextual performance also could be represented in the description of the function itself and combined with one or more of the value criteria (e.g., quality, quantity). For example, one model of citizenship performance includes – personal support as a dimension and defines it by such behaviors as – helping others by offering suggestions, teaching useful knowledge or skills, and providing emotional support for their personal problems. We could certainly define outcomes in these areas according to quantity and quality values (e.g., how often is emotional support offered; how good was it?). Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  Measuring Overall Performance While an overall rating approach where the rater does not distinguish among the criteria is surely faster than making assessments on separate criteria, the major drawback is that it require raters to simultaneously consider their average. The probable result of all this subjective reasoning may be less accurate ratings than those done on each relevant criterion for each job activity and less specific feedback to the performer. In general, the greater the specify in the content of the appraisal, the more effective the appraisal system regardless of the purpose for the appraisal system. Performance Management and Compensation The information collected from performance measurement is most widely used for compensation, performance improvement or management, and documentation. As discussed in the previous chapter, performance data are also used for staffing decisions (e.g., promotion, transfer, discharge, layoffs), training needs analysis, employee development, and research and program evaluation. Supervisors may use performance appraisal information to manage the performance of their employees. Appraisal data can reveal employees’ performance weaknesses, which managers can refer to when setting goals or target levels for improvements. Performance management programs may be focused at one or more of the following organizational levels: individual performers, work groups or organizational subunits, or the entire organization. Data on performance should be collected at the appropriate level and over time to indicate trends. To motivate employees to improve their performance and achieve their goals, supervisors can use incentives such as pay-for-performance programs (e.g., merit pay, incentives, bonus rewards). One of the strongest trends in the market era is toward some form of pay-for-performance (PFP) system. Obviously, effective performance measurement is critical for PFP systems to work. Internal Staffing Performance appraisal information also is used to make staffing decisions. Many organizations rely on performance appraisal data to decide which employees to move upwards (promote) to fill openings and which employees to retain as a part of the rightsizing effort. One problem with relying on performance appraisal information to make decisions about job movements is that employee performance is only measured for the current job. If the job at the higher, lateral, or lower level is different from the employee’s current job, then it may be difficult to estimate how the employee will perform in the new job. Consequently, organizations have resorted to using assessment procedures in addition to appraisal data to make staffing decisions. These assessment methods include assessment centers, testing, work samples, and interviews. Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  Training Needs Analysis Most firms use appraisal data to determine employees’ needs for training or development. Hundreds of companies including Microsoft, IBM, and Merck, now use multisource raters (e.g., subordinates, peers, clients) to evaluate their supervise or managers. The results are revealed to each manager with suggestions for specific training and development (if needed). Honeywell, for example, has specific training modules based on appraisal ratings for several job functions. Research and Evaluation Appraisal data also can be used to determine whether various human resource programs (e.g., selection, training) are effective. For example, Toledo, Ohio, wanted to know whether their police officer selection test was valid, they collected performance appraisal data on officers who had taken the test when they were hired so that test scores could be correlated with the job performance. THE METHODS, TECHNIQUES AND PROCESS OF EVALUATION There are three basic ways in which raters can make performance assessments: 1. They can make comparisons of ratees’ performance 2. They can make comparisons among anchors or performance level anchors and select one most descriptive of the person being appraised, and 3. They can make comparisons of individuals to anchors. Rating Format Options COMPARISONS AMONG PERFORMANCES Compare the performances of all rates to each anchor for each job activity, function, or overall performance. Rater judgments may be made in one of the following ways:  Indicate which ratee in each possible pair rates performed closest to the performance level described by the anchor or attained the highest level or overall performance. (Illustrative method: paired comparison)  Indicate how the ratees ranked in terms of closeness to the performance level described by the anchor (Illustrative method: straight ranking)  Indicate what percentage of the ratees performed in a manner closest to the performance level described by the anchor. (Note: the percentages have to add up to 100% for all the anchors within the job activity/function.) (Illustrative method: forced distribution). Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  COMPARISONS AMONG ANCHORS Compare all the anchors for each job activity or function and select the one (or more) that best describes the ratee’s performance level. Rater judgments are made in the following way:  Indicate which of the anchors fit the ratee’s performance best (and/or worst). (Illustrative method: CARS, forced choice) COMPARISONS TO ANCHORS Compare each ratee’s performance to each anchor for each job activity or function. Rater judgments are made in one of the following ways:  Whether or not the ratee’s performance matches the anchor (Illustrative methods: graphic rating scales such as BARS, MBO)  The degree to which the ratee’s performance matches the anchor. (Illustrative methods: all summated rating scales such as BOS and PDA methods)  Whether the ratee’s performance was better than, equal to, or worse than the described by the anchor. (Illustrative method: Mixed standard scales). Defining the Rater Ratings can be provided by ratees, supervisors, peers, clients or customers, or high- level managers. While most companies still give the supervisor the sole responsibility for the employee’s appraisal, formal multi-rater systems are becoming quite popular. A growing number of companies use formal self-assessments. The purpose is to encourage employees to take an active role in their own development. Upward appraisals (ratings by subordinates) are also on the increase. With increasing frequency, organizations are concluding that multiple rater types are beneficial for use in their appraisal systems. Ratings collected from several raters, also known as 360-degree appraisal systems, are thought to be more accurate, have fewer biases, are perceived to be more fair, and are less often the targets of lawsuits. The use of 360-degree appraisal systems is one of the characteristics of high-performance work systems, which have been linked to superior corporate financial performance. The probable reason this approach is successful is that many of the rater types used (e.g., customers, peers) have direct and unique knowledge of at least some aspects of the ratee’s job performance and provide reliable and valid performance information on some job activities. In fact, the use or raters who represent all critical internal and external customers contributes to the accuracy and relevance of the appraisal system. Many organizations use self-, subordinate, peer, and superior ratings as a comprehensive appraisal prior to a training program. The center for Creative Leadership in Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM Greensboro, North Carolina, requires all particulars in it’s one-week assessment center program to first submit evaluations from superior=s, peers, and subordinates. These data are tabulated by the Center, and the feedback is reported to participants on the first day of the assessment center program. Participants consider this feedback to be among the most valuable they receive. Many companies now use external customers as an important source of information about employee performance and for reward systems. The Marriott Corporation places considerable weight on its customer survey data in the evaluation of each hotel as well as work units within the hotels. Burger King, McDonald’s, Domino’s Pizza, and Taco Bell are among the companies that hire professional customers or mystery shoppers to visit specific installations to provide detailed appraisals of several performance functions. Summary of recommendations for implementing a multi-rater /360-degree appraisal system is as follows. Additional Recommendations for Implementing a 360-Degree Appraisal System INSTRUMENT ISSUES  Items should be directly linked to effectiveness on the job.  Items should focus on specific, observable behaviors (not traits, or competencies).  Items should be worded in positive terms, rather than negative terms. Ratees, particularly employees, may be less likely to respond honestly to negative items about their boss.  Raters should be asked only about issues for which they have firsthand knowledge (i.e., ask subordinates about whether the boss delegates work to them; don’t ask peers since they may not know). ADMINISTRATION ISSUES  Select raters carefully by using a representative sample of people most critical to the ratee and who have had the greatest opportunity to observe his or her performance.  Use an adequate number of raters to ensure adequate sampling and to protect the confidentiality of respondents (at least three per source).  Instruct respondents in how the data will be used and ensure confidentiality.  To maintain confidentiality, raters should not indicate their names or other identifying characteristics and surveys should be mailed back directly to the analyst in a sealed envelope.  Alert and train raters regarding rate errors (e.g., halo, leniency, severity, attributional bias). Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  FEEDBACK REPORT  Separate the results from the various resources. The ratee should see the average, aggregated results from peers, subordinates, higher-level managers, customers, or other sources that may be used.  Show the ratee’s self-ratings as compared to ratings by others. This enables the ratee to see how his self-perceptions are similar or different from other’s perceptions.  Compare the ratee’s ratings with other norm groups. For example, a manager’s ratings can be compared to another manager’s (as a group) in the firm.  Provide feedback on items as well as scales so ratees can see how to improve. FEEDBACK SESSION  Use a trained facilitator to provide feedback to ratees.  Involve the ratee in interpreting his or her own results.  Provide an overview of the individual’s strengths and areas for improvement.  Provide feedback on recommendations and help him or her to develop an action plan. FOLLOW-UP-ACTIVITIES  Provide opportunities for skill training in how to improve his or her behaviors.  Provide support and coaching to help him or her apply what has benn learned.  Over time, evaluate the degree to which the ratee has changed behaviors. SETTING THE STANDARDS AND BENCHMARKING Benchmarking is the process of gauging the internal practices and activities within a firm to an external reference or standard. It is a continuous process of measuring one’s own products, services, systems, and practices against the world’s toughest competitors to identify areas for improvement. An estimated 70 percent of Fortune 500 companies use benchmarking on a regular basis. For example, Ford Motor Company benchmarked its accounts payable function against Mazda Motor Corporation. Ford found that it had about five times as many employees as it needed. The automaker redesigned the system for tracking orders, deliveries, and invoices and thereby helped employees to perform the same tasks more efficiently. As a result, Ford was able to simplify the process, reduce the number of employees, and reduce errors. Goodyear Tire and Rubber changed its compensation practices by benchmarking what several Fortune 100 firms were doing in compensation. It developed a system to link employee performance to the firm’s financial gains. AT & T examined the role of chief financial officers to redesign the job duties and functions of the CFO to be more in line with what world-class CFOs were doing. Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  Studies on the effectiveness of benchmarking have found that it is critical to have top management support and commitment to the roject. In addition, when it results in setting moderately difficult goals that employees believe are attainable, it seems to work. But when poorer performing companies receive benchmarking data that their practices are significantly different from the best practices, and their managers set radical, unrealistically high goals, employees have difficulty embracing the changes and may resist them. As a result, performance actually may decline. These findings should not discourage managers from benchmarking their practices. Instead, managers should be alerted to the types of goals they should set after receiving benchmarking data. Perhaps setting more realistic goals and gradually increasing the difficulty of goals would encourage employees. This is known as shaping, which is a behavioral change technique that promotes gradual improvement from known, initial behavior to the desired goal, or, in this case, the benchmark. For example, if an organization wants to meet the best practice of having 1 percent defects in its industry, and its initial performance is at 20 percent defects, the company may need to first use 15 percent defects as a goal. Once workers master that goal and are rewarded, then the company can change the goal to 10 percent defects. In this way, the company cis continually moving toward the benchmark goal and the employees are less resistant than if they were initially assigned the goal of 1 percent defects, which they may have felt was unattainable. To use shaping effectively in benchmarking practices, the following tips are offered: 1. Identify what is to be benchmarked (a process, product, service, etc.) 2. Identify comparable companies. 3. Collect data to precisely define the target goal (benchmark). 4. Collect data to determine the organization’s current performance level against the benchmark. 5. Reduce the target to discrete, measurable, smaller steps or goals. 6. Train, as needed, any employees so that they can meet the smaller goals (subgoals). 7. Periodically provide feedback and use appropriate, valued reinforces for meeting the subgoals. 8. Increase the subgoals so that they are getting closer to the target goal. 9. Recalibrate benchmarks periodically. The recalibration is important so that the organization continually monitors the benchmark or target goal because it may change. Success by companies may lead to new standards. Benchmarking should be considered one form of performance measurement that provides a basis for comparison to competitors and other outside sources. While this is useful Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM approach to measurement, the importance attached to any measurement should derive from the extent to which the measurement is related to the strategic goals of the organization. MALCOLM BALDRIDGE AWARD Malcolm Baldridge Award One popular form of benchmarking combining nicely with public relations is to compete for awards that focus on product and service quality. The most significant of such awards in the United States is the Malcolm Baldridge National Quality Award. Established by the U.S. Congress in 1987, the Baldridge Award is administered by the National Institute of Standards and Technology of the Department of Commerce (see www.nist.gov.) The U.S. president personally presents these prestigious awards in a ceremony in Washington, D.C. The purpose of the Baldridge Award is to promote national awareness of the importance of total-quality achievements. Seven categories are used to assess quality management and improvement. These are in order of points: business results (450), leadership (110), human resource development and management (100), process management (100), strategic planning (80), customer and market focus (80), and information and analysis (80). The total number of points that can be obtained is 1,000. The seven categories are based on a set of core values and concepts, including the importance of customer-driven quality, leadership, continuous improvement, and learning, employee participation and development, fast response, design quality and prevention, long- range view of the future, management by fact or date, partnership development, company responsibility and citizenship, and results focus. The Baldridge Awars allows any publicly or privately owned business in the United States to apply, with the stipulation that only one division or submit of a company can apply for the same award category in the same year. Not eligible are local, state, and national government agencies; not-for-profit organizations; trade associations; and professional societies. Two awards may be given annually in each of three categories: manufacturing companies, service companies, and small businesses. Applications for the Baldridge Award require submission of up to 75 pages for a completed application form. Some companies that have won the Baldridge Award since its inception in 1988 are Motorola, general Motors’ Cadillac, IBM, Federal Express, and Ritz Carlton Hotels. Winners are expected to share information about their successful performance strategies with other U.S organizations. Most U.S. companies requesting the application materials use them to evaluate their own programs and make changes. Many of the largest U.S corporations have used the Baldridge criteria as benchmarks and as a model for instituting major organizational change processes. There are many external award programs that are used by organizations to benchmark and assess performance. In addition, many companies use internal programs to assess work units on quality and customer satisfaction. Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  Malcolm Baldridge National Quality Award Criteria A total of 1,000 are possible among the seven categories: 1. Leadership 9110 points) 1.1 Leadership System ………………………………………………………………….. 80 1.2 Company Responsibility and Citizenship …………………………………………. 30 This category examines senior leaders’ personal leadership and involvement in creating and sustaining values, company directions, performance expectations, customer focus, and a leadership system that promotes performance excellence. Also examined is how the values and expectations are integrated into the company’s leadership system, including how the company continuously learns and improves, and addresses its societal responsibilities and community involvement. 2. Strategic Planning (80 points) 2.1 Strategy Development Process ………………………………………….………… 40 2.2 Company Strategy ………………………………………………….……………….. 40 This category examines how the company sets strategics directions and how it determines key action plans. Also examined is how the plans are translated into effective performance management system. 3. Customer and Market Focus (80 points) 3.1 Customer and Market Knowledge …….……………………………..…………….. 40 3.2 Customer Satisfaction and Relationship Enhancement ………………...……….. 40 This category examines how the company determines requirements and expectations of customers and markets. Also examined is how the company enhances relationships with customers and determines their satisfaction. 4. Information and Analysis (80 points) 4.1 Selection and Use of Information Data ……………………………………...…….. 25 4.2 Selection and Use of Comparative Information and Data …..………………...… 15 4.3 Analysis and Review of Company Performance ………………………………..… 40 This category examines the management and effectiveness of the use of data and information to support key company processes and the company’s performance management system. 5. Human Resource Development and Management (100 points) 5.1 Work Systems ……….……………………………………………………………..… 40 5.2 Employee Education, Training, and Development ………….………………….… 30 5.3 Employee Well-Being, and Satisfaction …………………………….…….……..… 30 This category examines how the workforce is enabled to develop and utilize its full potential, aligned with the company’s objectives. Also examined are the company’s efforts to build and maintain an environment conducive to performance excellence, Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  full participation, and personal and organizational growth. 6. Process Management (100 points) 6.1 Management of Product and Service and Processes …………………..………… 60 6.2 Management of Support Processes ………………….……………………………... 20 6.3 management of Supplier and Partnering Processes …………….……………...… 20 This category examines the key aspects of process management, including customer-focused design, product and service delivery processes, and supplier and partnering processes involving all work units. The category examines how key processes are designed, effectively managed and improved to achieve better performance. 7. Business Results (450 points) 7.1 Customer Satisfaction Results ……………………………………..………………. 130 7.2 Financial and Market Results ………………………………………………………. 130 7.3 Human Resource Results ……………………………………………….…………… 35 7.4 Supplier and Partner Results ………………………………………………………… 25 7.5 Company-Specific Results ………………………………………………………..… 130 This category examines the company’s performance and improvement in key business areas-customer satisfaction, financial and marketplace performance, human resource, supplier and partner performance, and operational performance. Also examined are performance levels relative to competitors. Malcolm Baldridge Criteria for – HR Development and Management a) Human Resource Development and Management (100 points) 5.1 Work systems (40 points) Describe how the company’s work and job design and its compensation and recognition approaches enable and encourage all employees to contribute effectively to achieving the company’s performance and learning objectives. a. Work and Job Design How work and jobs, including those of managers all levels in the company, are designed, organized, and managed to ensure: i. Opportunities for individual initiative and self-directed responsibility in designing, managing, and improving company work processes. ii. Flexibility, cooperation, rapid response, and learning in addressing current and changing customer and operational requirements. iii. Effective communications, and knowledge and skill sharing across work functions, units, and locations. Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  b. Compensation and Recognition How the company’s compensation and recognition approaches for individuals and groups, including managers at all levels in the company, reinforce the overall work systems, performance, and learning objectives. 5.2 Employee Education, Training, and Development (30 points) Describes how the company’s education and training address key company plans and needs, including building knowledge and capabilities, and contributing to improve employee performance and development. a. Employee Education, Training, and Development i. How the education and training address the company’s key performance plans and needs, including long-term employee development objectives. ii. How education and training are designed to support the company’s approach to work and jobs. Include how the company seeks input from the employees and their managers in education and training design. iii. How education and training, including orientation of new employees, are delivered. iv. How knowledge and skills are reinforced on the job. v. How education and training are evaluated and improved, taking into account company performance, employee development objectives, and costs of education and training. 5.3 employee Well-Being and Satisfaction (30 points) Describe how the company maintains a work environment and work climate that support the well-being, satisfaction, and motivation of employees. a. Work Environment How the company maintains a safe and healthful work environment. Include how employee well-being factors such as health, safety, and ergonomics are included in improvement activities. Briefly describe key measures and targets for each important factor. Note significant differences, if any, based upon different health and safety factors in the work environments of employee groups or work units. b. Employee Support Services Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  How the company supports the well-being, satisfaction, and motivation of employees via services, facilities, activities, and opportunities. c. Employee Satisfaction How the company supports the well-being, satisfaction, and motivation. Include: i. A brief description of formal and informal methods used. Outline how the company determines the key factors that affect employee well-being, satisfaction, and motivation and assesses its work climate. Note important differences in methods, factors, or measures for different categories or types of employees, as appropriate. ii. How the company relates to employee well-being, satisfaction, and motivation results to key business results and/or objectives to identify improvement activities. Major Administrative issues to Consider in Performance Management 1. Frequency and timing of formal appraisals  Number of times per year (e.g. one per year, every six months, quarterly?)  Time period (e.g., anniversary of hire, after project completion) 2. Rating/data Collection medium  Computerized data collection/ data tabulation/ integration into database  Hard copy for personnel file and sign off?  Use of technology for performance data collection and monitoring  Computer programs that can monitor rater rating tendencies. 3. Training Programs  For raters, ratees, administrators  Scheduling/ assessments/ follow-up 4. Method of feedback  Feedback via computer versus scheduled sessions  Feedback based on comparisons to other employees/companies  Formal feedback sessions with supervisors, team consultants, coaches. To create a supportive atmosphere for the feedback meeting between the employee and supervisor, several recommendations exist. The rater should remove distractions, avoid being disturbed, and take sufficient time in the meeting. Raters seem to have trouble adhering to these guidelines. Raters should keep notes on effective and ineffective behavior as it occurs so that they will have some notes to refer to when conducting the feedback session. Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM  Raters should be informal and relaxed and allow the employee the opportunity to share his or her insights. Topics that should be addressed include praise for special assignments, the employee’s own assessment of his or her performance, the supervisor’s response to the employee’s perceived constraints on performance that require subordinate or supervisory attention, employee career aspirations, ambitions and developmental goals. In sum, raters should provide feedback that is clear, specific, descriptive, job related, constructive, frequent, and timely. Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM Activity (10 pts.) I. Answer the following: 1. What do you mean by industrial restructuring? What are the important postulates for implementing restructuring? 2. Explain the core principles of business restructuring in detail. 3. What are the advantages of industrial restructuring? Explain the important guidelines for effective restructuring. 4. What is the objective of the rewards system? Explain the principles for evaluation of the reward system. 5. What is ISO 9000? Explain its elements briefly. 6. Explain the seven habits of highly effective people. 7. Explain the different roles and features of a leader in the present scenario. 8. How you will create a quality culture in an organization? Explain the steps in the development of quality culture in the organization. 9. How will you maintain quality standards in the organization? Explain the different dimensions of it. 10. Explain the Six-Sigma approach for the development and growth of an organization. II. Case Study: use the Standard Case Analysis Format A Case Study on the Business Performance Management of Hilton Hotels Corp The hotel industry is an important industry in China because it has an important part in not only people's lives but hotel is developing rapidly. Hilton, which has all operations, is the provider of hotel services developed under this advantaged circumstance. Facing the capacious market of China and the potential tremendous need for data, there will be a great opportunity for the whole hotel industry, not mention to Hilton. In the market of the hotel industry in China, there are many famous hotels. Although under the situation of serious competition, Hilton has not won a satisfactory market share. Nowadays the economy globalization has become a part of the necessary requirement for enterprises to sustain a successful business operating in a competitive environment. Accordingly, global expansion of hotel operations has increasingly become a significant strategic development for big hotel corporations. As for Hilton Hotel, a series of market development strategies including entering new market segments and spreading into new Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM geographical areas are made, to capture the potential market and take the leading role in the market competition. With the rapid development of communication technology and international commodities, the acceleration of funding, technology, and personnel are continuous flow. The process of economic globalization will be further accelerated. The world economy has entered a new period of major development and opening up, great competition, great adjustment, integration, and coordination. The multinational companies will continue to emerge, and international competition is becoming increasingly fierce. In this new historical period, talent competition gradually replaced the tradition of competitive technologies and products, thus competition has become the focus of multinational companies. How to train and develop personnel retaining talented people, and enhance their work performance, further company performance, has become a daunting task that Hotels Corp has to face However, the increased globalization of hotel development has created a great challenge for hotel corporations to recruit technically competent and culturally sensitive managers for managing the operations of overseas properties. Expatriates, employees working in a foreign location, find that culture shock can affect their general ability to function well (Hofstede, Schoeider and Bariux, 1991). A failure in an overseas posting will not only damage the manager's sense of self-respect and his/her job but also cost the company money (Spangengerg, 1992). Hence, cultural understanding and adaptability have been identified as contributing to better expatriation. After the economic reform, many international hotel chains came to China and found the local hotel personnel were not qualified enough to occupy senior management positions in their Chinese properties. So with the increase of foreign investment, a large amount of expatriate managers have been assigned to China and are still at high posts in the joint-venture corporations. The business performance management of Hilton Hotels Corp Business Performance Management (BPM) is one of the significant topics in the industry today (Miranda, 2004). The objectives and indicators of BPM are then associated with operational metrics and linked to performance incentives, which lead to effective strategy execution throughout the organization. BI'M involves an array of integrated operational and analytical processes that accomplish two sequential tasks. First, it facilitates the creation of strategic goals by stipulating specific objectives and key performance indicators that are meaningful to the organization. Second, it supports the subsequent management of the performance to those goals (Iervolino 2004). The BPM is without the best model, while a perfect performance management program may be adapted to a company, another company may not necessarily produce good results. There is a huge difference among International Business Performance Management. The multinational companies choose a more complicated and important model in making performance management (Hartlen, 2004). BPM is a consolidation of concepts that companies have been practicing for some time, such as data warehousing, business intelligence, and total quality management. In an effort to provide clarity to the industry, a BPM standards group was established in 2003. They define BPM as a 't of integrated, closed-loop management and analytic processes, supported by technologies that address financial and operational activities BI'M helps businesses define strategic goals Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM and measure and manage performance against those goals (Whiting 2004) An in-depth interview method based on the BPM theory was used for Hilton Corp in China. It hopes that through the in-depth analysis and application of the theory of transnational corporations of the outstanding performance management mode of operation of transnational corporations in China for performance management problems. In the analysis of transnational corporations, the thesis seeks the effective implementation of performance management promoting transnational corporations and raising the level of performance management. For the operation of transnational companies in China, China's development and expansion of multinational corporations, and international companies will contribute to the depth of human resources development. Background study of Hilton Today, there are only nine companies whose room counts exceed the 100,000 barriers. Yet, in 2008, those nine giants now controlled 2.98 million of the world's hotel rooms, while the 10 biggest companies controlled a smaller amount, 2.84 million rooms in 2005. As a famous international hotel corporation, Hilton Hotels Corp has bought one of the largest hotel franchisors in the world and saw its room count soar 241%, from 85,000 to 290,000. Through two brand acquisitions and aggressive organic growth, Hilton Corp. has increased its room inventory by 21.6%, crossing over the 300,000 mark for the first time. Hinton International operates five hotels in China (2405 guest rooms). They are Hilton Beijing, Hilton Chongqing, Hilton Dalian, Hilton Nanjing, and Hilton Shanghai. (Hilton Worldwide, 2010) Hilton Hotcis Corporation is a hotel/ lodging company that is spread worldwide. Hilton strives to maximize productivity and increase shareholder value. Hilton is in the hotel/ casino industry. Being at the top of the industry, Hilton strives to improve upon their sales, stock price, and overall effectiveness. This strategy capstone describes in great detail the Industry Analysis, Company Analysis, and suggestions for Hilton Hotels. Hilton has proved to be the fastest-growing company in the hotel/ lodging industry. They have overall outperformed their main competitors. Hilton is just behind choice hotels in their market capitalization compound annually by one percent. Hilton has grown 22 percent compounded annually over four years. Marriott is behind Hilton with a 15 percent CAGR. Market capitalization is a good way to show the growth of a company because it incorporates the stock price as well as the number of shares outstanding. With excellent management and quality staff, Hilton will continue to be at the top of the industry (Tourism Report, 2010). Higher maturity of the markets in the United States and Hilton Hotel experienced multinationals' long-term development and formed a kind of sound human resource management. Under the impact of traditional culture and management style, they are only the result of heavy work. However, with the development of management theory, the assumption Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM that human nature changes, the enterprise's human resources management has entered a period of rapid development, especially in human resources management pattern produced the earliest and the most completed development in the United States, which has produced much revolutionary management thinking. Performance management has also made many innovations, including the emergence of a new performance management model and management tools, such as performance evaluation of the KP model, BSC balanced scorecard management mode, and 360 performance evaluation model (Edwards and Ewen, 2004), and the rise of the promotion in the level of performance management. The performance management of the Hilton, has two distinct characteristics, namely strict system and mature methods of operation. The hotels and business performance management system, classification, and meticulous, for example, the basis of performance management-posts statement, as it is defined in the positions of power and responsibility. It is not only a detailed description of the content of posts but also defines the powers and the corresponding positions, which should bear the responsibility of making post brochures of enterprise performance management as an effective basis for such enterprises' strict system and it will be detailed to guide enterprise performance management. The mature methods of operation will make it easier to achieve good performance management effectiveness and enterprise performance objectives. While the mature extension is under the guidance of enterprise management, the staff of the hotel will be able to better target segments to the various organizations, departments, and posts. In the performance of this assessment, it will be easier to quantify performance indicators to asses, performance with more science and more viable (Murphy and Clevelen. 1991) Hilton's performance management model As for the management of personnel, as well as the evaluation of soft factors, it has been the difficulty of performance management. Hilton Hotel will start giving management personnel, and leading officers to establish a code of conduct, code of conduct is open to the public. Based on these management staff codes of conduct, and control their behavior, we can clearly understand and know what areas we have done well, but there is a gap between what. Staff can also act in accordance with criteria to evaluate the management effectiveness of management staff. As for the staff of the corporate culture identity, values, and the examination of soft factors, Hilton's approach is to work in advance, the first to be informed of the Hilton values, and values and then there will be relevant training, the staff of the values sentiment will continue to be strengthened, and then use occurred in the company's staff to explain the facts of the values in every assessment is also a conclusion must be proved by facts, and never figment of the imagination, make a reasonable assessment, scientific and feasible. As for the Hilton Hotel among the enterprise performance management models, it has the typical representation of United States performance management. Hilton's performance appraisal system is the most important management classic representative from generic performance management system, performance management; the implementation process can be seen from the world's top multinational corporation's performance excellence households in the show. Hilton's performance management is a systematic project (inspectors, performance assessment, performance management system design from six yards of Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM management, career development, and other supporting staffs of the perfect system, the letter to sleep, the timely feedback) (Travel courier, 2010). Hilton also stresses that the company's values management and the active participation of the general staff, such as the good performance of the operating environment, which is included in the company's performance management system of the Hilton hotel- performance goals and is zoned for the development of performance management is the foundation of the tomb. The subject must be developed in line with the principle that is clear measurable, achievable, and realistic. The personnel department has agreed to maintain the basis of repeated communication with the staff weighted on the development of a performance plan implemented on the basis of performance assessment. Hilton's performance assessment and evaluation process into the year-end appraisal. In the performance appraisal process and the timely implementation of the scheme's performance counseling, the staff performance should be a good chance on sure for the poor performance of staff, a timely reminder to help correct to facilitate the achievement of performance targets, but also for the year-end appraisal accumulated data. The year-end appraisal of the corporate performance assessment links the most important aspect of their assessment, mainly through self-identification, based on the two evaluation processes to implement. The first is the self-identification of the staff, mainly through Personal qualifications filling out records, personal records, and the completion of the year record completed, followed by the manager er evaluation, staff personal information manager on the basis of self- evaluation, the staff filled out a record of performance appraisal, managers must complete the identification of communication with staff, the unanimous opinion. If managers and employees have different views, we must have sufficient reasons to convince the other side. If the evaluation of the staff manager has different views, employees can communicate with the manager, but we must use facts to speak; if employees can convince managers, managers can amend their previous evaluations. If the two sides cannot be reached, it will be to deal with a higher manager. In mutual communication and exchange, we must use facts to prove our point of view, and we cannot imagine any reason. Assessment of the application of the results will also affect the implementation of corporate performance results. The Hilton's assessment results not only in staff salaries and related performance results will be used in staff training, promotion, and changing the guard, and other fields, with staff career development are closely linked. The Hilton's performance results of the processing management are divided into four types: Selection, Training and developing the potential staff, Resignation, Promotion and rewards. Dr. Rolly L. San Jose, MBA HRM ELEC 3 PERFORMANCE MANAGEMENT SYSTEM