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Effective Performance Management - A Case Study,Robert H. Xiao, Ph D HR Director, People & Organization Development Philips China Corp HR,Agenda Why performance management? What is the process? How to make it work? Value alignment / top down drive Linking rewards and development Aspects of infrastructure Communication/education Part of the culture Where to start?,Why performance management?,Basic management cycle Planning, organizing, staffing, leading, and controlling Fundamental corporate infrastructure Consistency in measuring/rewarding Sustainability in business and people,What is the process?,Annual process Past review and next goal setting Appraisal process: rewards Individual development planning On-going review and documentation Global aligned,Philips Way: People Performance Management (PPM) is a process which helps to align personal and business objectives driven by the Philips way: one culture, one brand, one company one global approach for People Performance Management supporting the improvement of business results for Philips,PPM: a cyclical process,How to make it work? - value alignment & top down drive,A performance oriented value system Company value 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 process,Our Values,Delight customers,We delight our customers by anticipating and exceeding expectations thereby creating sustainable market leadership,Deliver on commitments,We pursue business excellence, being rigorous in delivering on our commitments,Develop people,We inspire and enable each other to use our creativity and entrepreneurial flair, and to maximize our potential,Depend on each other,We work as “one Philips” in an environment of transparency and trust to mobilize our collective competence and that of our business partners,Values,How to make it work? - linking rewards and development,Tight linkage between performance outcome and rewards Embedded individual development process,Philips Way: Links between PPM and other HR areas,Salary & Annual incentive,Individual Development,How to make it work? - aspects of infrastructures,Full range of documentation On-line review system Performance distribution Calibration process,Philips Way:,Documentation Job description (JD) Business balanced score card (BBS) Personal contribution agreement (PCA) Individual development plan (IDP) On-line PPM PPM is an on-line system Guided distribution 10%, 20%, 50%, 15%, 5% Calibration process Management team discussion,How to make it work? - communication/education,Defined roles and responsibilities in PPM Full coverage of communication On going updates Deadlines and consequences,Philips Way: Roles and responsibilities,Implementation Leaders Experts/facilitators of PPM training Tutors (Operational HR Managers) Regional Administrators PPM Project Team Corporate HRM,How to make it work? - part of the culture,Business achievement needs systematic drive in managing performance Performance comes from employee Management job is to enhance employee performance,Philips Way: An effective PPM process is about the dialogue between manager and employee,Employees,Managers,Understand how they contribute to business results Understand what is expected from them Understand to what extent they meet these expectations Develop themselves,Deploy and realize business goals Set clear objectives and evaluate performance Develop people so they can add more value,Where 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 oriented culture with criteria,
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