Human resourcing has become one of the most important parts in organizations in the world of knowledge economy, since whether an organization could success depends on that how its employees performed. Therefore, performance management is drawing more and more attention. Because performance management is not just the appraisal of performance, it also provides incentives to improve the performance of employees.
DHL is the world’s biggest company in the express delivery area. It has its own successful performance system, and became to use the balance scorecard as an important part of the performance system in recent years. DHL China, the subsidiary company of DHL, was established in 1986 in China. It developed its own performance system to fit the specific environment of China, and accepted the balanced scorecard system as well.
The performance management system of DHL China is analysed in this assignment, mainly from the above phase: whether the system well achieved the goal of performance management system; evaluate the balanced scorecard model of DHL China; and the perceived strengths and problems of it. Introduction of Performance Management
In order to analysis the performance management practice of a company, a clear understanding of the aims and approaches of performance management is necessary. Therefore, it is important to be clear about what is meant by performance management to understand it more fully.
Hendry et al. (1997) define performance management as:
A systematic approach to improving individual and team performance in order to achieve organisational goals ... the approach you take should depend on your organisation: its culture, its relationship with employees and the types of job that they do.
Armstrong and Baron (2000) defined it as:
A strategic and integrated approach to increasing the effectiveness of organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors.
From both of the definitions, three points could be concluded: firstly, the performance management is a strategic approach, which means that performance management serves for the company strategy; Secondly, it relates with the organization, it means that performance management system need to be developed within the context of the organisational structure and culture (Corbridge, M. et al., 1998); Lastly, the performance management system shows the requiring to employees to be responsible to the quality of their work and their development needs. Therefore, it is an appropriate way to evaluate a performance system with comparing the outcomes of the system and the key elements being concluded above.
Understanding the definition of performance is not enough to analysis a performance management system. To analysis the system, understanding the contents of it is also important. Corbridge, M. et al., (1998) noted that performance management consists of the following stages: defining organisational goals; setting objectives; agreement of training and development plans; performance appraisal; regular feedback, reward allocation; and development of individual career plans. This is the system approach that divides the objectives into functional areas, departments and teams to individuals. It provides a clear arrangement of analysing a performance management system as well.
The Balanced Scorecard
The BSC (balance scorecard) was firstly introduced by Kaplan and Norton in 1992, and has become one of the most popular models which are being used in the world. The Harvard Business Review called it one of the most important and influential management ideas of the past 75 years.
Kaplan and Norton (1996) suggested that the BSC view the organization from four perspectives, and analyse the performance relative to each of these perspectives: the financial perspective; the customer perspective; the business processes perspective; and the learning and...