1、Effective Performance Management- A Case StudyRobert H. Xiao, Ph DHR Director, People & Organization DevelopmentPhilips China Corp HRAgenda- Why performance management?- What is the process?- How to make it work?- Value alignment / top down drive- Linking rewards and development- Aspects of infrastr
2、ucture- Communication/education- Part of the culture- Where to start?Why performance management? Basic management cyclePlanning, organizing, staffing, leading, and controllingcontrolling Fundamental corporate infrastructure Consistency in measuring/rewarding Sustainability in business and peopleWhat
3、 is the process? Annual processPast review and next goal settingAppraisal process: rewardsIndividual development planningOn-going review and documentation Global alignedPhilips Way:Philips Way:P People P Performance M Management (PPM) is a process which helps to align personal and business objective
4、sdriven by the Philips way: one culture, one brand, one companyone global approach for People Performance Management supporting the improvement of business results for PhilipsPPM: a cyclical processHow to make it work?- value alignment & top down drive A performance oriented value system Company val
5、ue as the core throughout organization Value derived criteria in the organization structure and supporting system (HR) Determination shown from the top Leaders being driven by the same processOur ValuesDelight customersWe delight our customers by anticipating and exceeding expectations thereby creat
6、ing sustainable market leadershipDeliver on commitmentsWe pursue business excellence, being rigorous in delivering on our commitmentsDevelop peopleWe inspire and enable each other to use our creativity and entrepreneurial flair, and to maximize our potentialDepend on each otherWe work as “one Philip
7、s” in an environment of transparency and trust to mobilize our collective competence and that of our business partnersValuesHow to make it work?- linking rewards and development Tight linkage between performance outcome and rewards Embedded individual development processPhilips Way:Links between PPM
8、 and other HR areasSalary Salary & & Annual Annual incentiveincentiveIndividualIndividualDevelopmentDevelopmentHow to make it work?- aspects of infrastructures Full range of documentation On-line review system Performance distribution Calibration processPhilips Way: DocumentationJob description (JD)
9、Business balanced score card (BBS)Personal contribution agreement (PCA)Individual development plan (IDP) On-line PPMPPM is an on-line system Guided distribution10%, 20%, 50%, 15%, 5% Calibration processManagement team discussionHow to make it work?- communication/education Defined roles and responsi
10、bilities in PPM Full coverage of communication On going updates Deadlines and consequencesPhilips Way:Roles and responsibilities Implementation Leaders Experts/facilitators of PPM training Tutors (Operational HR Managers) Regional Administrators PPM Project Team Corporate HRMHow to make it work?- pa
11、rt of the culture Business achievement needs systematic drive in managing performance Performance comes from employee Management job is to enhance employee performancePhilips Way:An effective PPM process is about the dialogue between manager and employeeEmployeesManagersUnderstand how they contribut
12、e to business resultsUnderstand what is expected from them Understand to what extent they meet these expectationsDevelop themselvesDeploy and realize business goals Set clear objectives and evaluate performanceDevelop people so they can add more valueWhere to start? A performance minded leadership team A competent HR organization and personnel An effective infrastructure A drive on communication and education A clear set of value and value A clear set of value and value oriented culture with criteriaoriented culture with criteria
