Performance Management System

Topics: Human resource management, Performance management, Management Pages: 5 (810 words) Published: March 6, 2015
Performance Management System
Jack Ma, chairman of Alibaba Group stated that there is no teachers want their students to fail and they want their students to become the one of the best in future. That’s the characteristics of for all the teachers. Also, he said most of the business people are afraid of anyone will take over their place but he is the opposite. So when he found talented workers, he will train them to replace him as soon as possible. Furthermore, he likes to hiring, training, nurturing and motivating talents. (Xiao-Ping Chen, 2013) Performance Management is a process of set up a shared workforce understanding on about what need to be achieved in an organization level. It is about aligning the objectives of an organization with the employees’ agreed measures, competency requirements, skills, development plans and the delivery of results. In order to achieve the overall business strategy and to create a high performance workforce, improvement, learning and development of employees act an important part in an organization. There are three major purposes of Performance Management which is strategic purpose, administrative purpose and developmental purpose. Strategic Purpose

Results and objectives of the organization link employee activities, behaviors, and characteristics of the development staff of measurement and feedback mechanisms Administrative Purpose
Administrative decisions such as payroll management, promotion, retention, redundancy and recognition Developmental Purpose
Develop employees who should be promoted – identifies deficient aspects of employees’ performance and the causes (Raymond, John, Barry, Patrick, 2014, pg.237)

Figure 1.1
Steps of Performance Management Process

Sources from: Figure 1.1 shows the six steps of Performance Management Process. From Figure 1.1, feedback and formal performance evaluation played an important part in the process. Nevertheless, these are not the only critical components in the process of Performance Management. Step one, Alibaba Group determine what are the goals that the company aiming to accomplish in a period of time. Step two, Alibaba Group set and develops their employee’s objectives and behavioral expectations to achieve the goals were set by the company.

Step three, Alibaba Group provides training, necessary resources and tools to their employee. Also, sharing the feedbacks between the employee and superior, this focused on actions as well as issues and challenges that may influence the performance. Typically the outcomes benefit Alibaba Group’s consumers, the employee’s peers and Alibaba Group itself. Furthermore, the objectives, behaviors, and activities should be measurable and become part of the employee’s job description. Step four, Alibaba Group evaluates the performance of their employees. The Superior and employee will discuss and compare the targeted objectives and supporting behavior with annual results. This is included the annual formal performance review for employees too. Step five, Alibaba Group and their employees identify together what employees can do to capitalize on performance strengths and address weaknesses. Step six, Alibaba Group will provide the results to their employees whether they achieved or not achieved the performance outcomes. In general, this entire Performance Management Process have to reviewed every year to ensure that what is being measured at the employee level aligns strategically with company, division, and departmental goals and objectives. (Raymond, John, Barry, Patrick, 2014, pg.235) In order to measure employees’ performance, Alibaba Group implemented some methods for measuring performance. Such huge organizational companies like Alibaba Group need to use few common methods of Rating Behaviors to measure their employees’ performance. There are few common methods such as Critical-incident method, behaviorally anchored rating scale...

Bibliography: Chen, X.P. (2013, August). Company Culture and Values Are the Lifelines of Alibaba. Retrieved February 27, 2015, from
What is Employee Performance Management? (n.d.). Retrieved February 27, 2015 from PeopleStreme
Raymond A. Noe, J. R. (2014). Fundamentals of Human Resource Management (Fifth ed.). Retrieved February 27, 2015
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