KPI Performance management

Kpi

KPI Performance management Key Performance Indicators performance indicators The peaceful process of the enterprise is the process that the laborer uses the labor tool to change dement. In the three basic factors of enterprise Production (labor force, implements, Dement), the labor force is the most important factor, the correct statistic, analysis, forecast productivity Index, it is important for enterprises to organize production, fully develop and utilize human resources rationally. Its main contents include: A) statistics on the number of labour force indicators. A Statistics of labor force index according to work position. 1. Workers: Basic production workers (workers directly engaged in product manufacturing), auxiliary production workers (engaged in various ancillary work) 2. Apprentice: Refers to the person who learns production technology and enjoys apprentice treatment under the guidance of skilled workers in production and labor; 3. Marketing personnel: Refers to directly engaged in product sales of the relevant personnel; 4. Management personnel: Refers to in the enterprise organization and the production workshop engaged in the administration, the production, the economic management work personnel; 5. Engineering and technical personnel: refers to the engineering and technical work and has engineering skills and has a college degree or above personnel; 6. Service personnel: Refers to the service staff to produce or indirectly serve the production of personnel; 7. Other persons: Persons outside the above six categories. B Statistics of the number of employees indicators. 1. The final number. Refers to the last day of the reporting period the number of enterprises, is a point of time indicators. such as the number of months, seasons and year-end. 2. Average number of people. Refers to the average number of labour force per day during the reporting period, which is a sequential average indicator. The calculation formula is: Average monthly number = number of persons per day during the reporting period ÷ number of reports months days Or: Average monthly number = (number of people at the beginning of month + end of month) ÷2 Average number of quarters = (sum of average monthly numbers in the quarter) ÷3 Average annual number = (sum of monthly average numbers in the year) ÷12 Or: = (the sum of the average number of quarters during the year) ÷4 Note: When the number of enterprises changes in the case of individuals, you can take the above method to calculate: Conversely, should take the weighted average number calculation. C Statistics on the number of employee change indicators 1. Number of employees balance: Beginning number + number of people in the current period = decrease in current period + number of end-of-term 2. Employee Change Indicator: Employee change indicator (%) = (number of employees in the reporting period ÷ base period) x100% D Statistics of staff quality indicators 1. Staff Culture quality Statistics: ∑ (Actual training time × number of participants) Average Literacy indicator =---------------- Total number of participants in the training E. Statistics of labor Time Utilization Index Labor time refers to the employee engaged in the production of labor duration, is to measure the scale of labor consumption, in the statistics are usually "man Day", "hours" and other units expressed. In order to calculate the working time accurately, the composition of working time is analyzed by graph: Enterprise Labor Time Analysis chart: 1. Attendance. Attendance reflects the degree of actual attendance by the employee during the prescribed working hours. The calculation formula is: Attendance (%) = Attendance man Day (hours) ÷ system Man Day (Hours) x100% 2. Attendance Man Day (hour) utilization. Reflects the proportion of time spent in production related activities during the period of employee attendance. Calculation formula: Attendance Man Day (work) utilization (%) = Actual man day within the system (hours) ÷ Number of Attendance Man day (hours) x100% 3. System Man Day (hours) utilization. Reflect the extent to which the system's working hours are actually used for production. The formula is: System Man Day (hours) utilization rate (%) = Actual man day in the system (hours) ÷ system Man Day (Hours) x100% 4. Overtime ratio index and intensity index (1) Overtime ratio indicator (%) = overtime Hours ÷ actual work hours x100% (2) Overtime intensity indicator (%) = Overtime hours/number of actual working hours in the system x100% (ii) Statistics of labour productivity indicators Labor productivity is the production efficiency of enterprise laborer in a certain period, it is the economic index of the comparison between labor consumption and production result, and is an important index to measure and evaluate the economic effect of enterprises. There are two basic manifestations of labor productivity: Labor productivity (positive indicator) = product output/labor consumption; Labour productivity (inverse indicator) = Labor consumption/product yield; Labour productivity is a comparison of labor consumption and product yield. Output can be used in physical quantities (or standard physical output), labor production (fixed-hour production), value (total production, increased duty), and so on, said: The amount of labour available time. The formula is: 1. Workers ' physical labor productivity = Production volume in the reporting period ÷ average number of industrial production workers (including apprentices) during the reporting period 2. Physical labor productivity = Product production in the reporting period ÷ the average human sensitivity of all employees during the reporting period 3. Labor productivity (yuan/person) = industrial gross output value (million) in the reporting period/average number of employees in the reporting period (person) Or: Industrial value added in the reporting period ÷ average number of staff in the reporting period (iii) Statistics on the indicators of labor remuneration Labor remuneration is the material basis for the reproduction of labor force. In a certain period of time, the total amount of labor remuneration paid directly to the enterprise by the Enterprise is called the labor remuneration of the workers. Including: Payroll of employees and other employees of the enterprise Labor remuneration two parts. Among them is the total wage of workers. A Payroll Gross salary is the total amount of labor remuneration paid directly to all employees of the enterprise in a certain period of time. The main should consist of six parts. 1. Hourly wage. Refers to the remuneration of workers paid to individuals by time-of-reference and working hours. 2. Piece. Remuneration for work done on a per unit basis. Can be divided into: standard piece rate and piecework excess wage. 3. Bonus. Refers to the excess remuneration paid to the workers and the increasing earnings of the labor remuneration. 4. Allowances and subsidies. Remuneration for compensation or additional labor consumption and for other special reasons. 5. Overtime pay. Refers to the overtime pay and the adding of wages as stipulated. B Average wage statistics. Average salary is the median wage income of all employees in a certain period. The formula is: Average wage (yuan/person) = gross salary (yuan) ÷ staff (person) Note: The average wage statistics, according to the Enterprise different employees range (all employees, managers, marketers, department supervisors, engineering technology to be classified statistics) can also be calculated according to different time range (month, quarter, year). The method of statistics should be determined according to the internal accounting and management requirements of the enterprise. -------------------------------------------------------------------------------- KPIs (Key performance Indicator, critical performance indicators) Enterprise Key Performance Indicators (Kpi:key performance Indicator) is a goal-based quantitative management indicator to measure process performance by setting, sampling, calculating and analyzing the key parameters of the input and output of the organization's internal processes. It is the tool that decomposes the enterprise's strategic goal into the operable work goal, is the foundation of the enterprise performance management. The KPI can make the department head clear the main responsibility of the Department, and on this basis, define the performance measure index of the department personnel. Establishing a clear and practical KPI system is the key to doing well in performance management. There is an important smart principle for determining key performance indicators. SMART is the acronym for the first 5 words in the English alphabet: · s for the specific (specific), refers to performance appraisal to hit the specific work indicators, can not be general; · M stands for measurable (measurable), which indicates that performance indicators are quantitative or behavioral, and that the data or information of these performance indicators can be obtained; · A represents achievable (attainable), which means that performance indicators can be achieved in an effort to avoid setting too high or too low a goal; · R stands for Reality (realistic), which means that performance indicators are tangible and can be proved and observed; · T stands for time bound, focusing on the completion of specific deadlines for performance indicators. The key point of establishing KPI Index is the process, plan and system. First, define the strategic objectives of the enterprise, and use the brainstorming method and Fishbone analysis method to find the business focus of the enterprise in the enterprise meeting, that is, the focus of corporate value evaluation. Then, use brainstorming to find key performance indicators (KPIs) for these key business areas, enterprise-level KPIs. Next, the directors of each department need to set up departmental KPI according to Enterprise KPI, decompose the KPI of the corresponding department, determine the relevant factor target, analyze the performance driving factor (technology, organization, person), determine the work flow to achieve the goal, decompose the KPI of each department level, in order to determine the evaluation index system. Then, the heads of each department and the KPI staff of the Department further subdivide the KPI into finer KPIs and performance metrics for each position. These performance measures are the elements and basis of employee assessment. The establishment of KPI system and evaluation process itself, is to unify all staff towards the enterprise strategic goal of the process, but also will be the performance of the managers of various departments to play a significant role in promoting. After the establishment of the indicator system, it is necessary to set evaluation criteria. In general, the indicator refers to the aspects of measurement or evaluation of the work, to solve the "evaluation of what" problem, and the standard refers to the various indicators should achieve what level, to solve the "How to do, how much to do" problem. Finally, key performance indicators must be audited. For example, the audit of a number of issues: the evaluation of the same performance indicators by multiple reviewers, the results can be consistent. Whether the sum of these indicators can explain the work target of 80% or more of the evaluated person. Track and monitor whether these key performance indicators can be manipulated. Wait a minute. The audit is mainly to ensure that these key performance indicators can comprehensively and objectively reflect the performance of the evaluated objects, and easy to operate. Each position affects a process of a business process, or a point in the process. In setting goals and performing performance appraisals, it is important to consider whether the incumbent of the post can control the outcome of the indicator and, if the incumbent cannot control it, the indicator cannot be used as a performance indicator for the incumbent. For example, the cross-departmental indicators can not be used as the assessment of the grass-roots staff, but should be a department head or a higher level of assessment indicators. Performance management is the process of managing both sides to reach a consensus on goals and how to achieve them, as well as ways to improve their success in achieving their goals. Managers give subordinates the basis for working goals from the KPI of the department, the KPI of the department from the higher department KPI, the KPI of the superior department from the enterprise level KPI. Only in this way can we ensure that each position is in accordance with the direction of enterprise requirements to strive. The use of KPI evaluation Enterprises will help the enterprise organization structure integration, improve the efficiency of enterprises, streamlining unnecessary institutions, unnecessary processes and unnecessary systems. features of KPIs • With the decomposition of the company's strategic objectives, the high-level leadership to clearly understand the value of the company to create the most critical operating conditions; • Ability to effectively respond to changes in key performance drivers, enabling managers to diagnose problems and take measures in a timely manner; • Differentiate between qualitative and quantitative indicators, and vigorously promote the implementation of corporate strategy; • Responding to key and key business behaviors, so that managers focus on the performance of the most driving force of the operation; • Determined by senior leaders and identified by the reviewers, provides an objective basis for performance management and communication between subordinates.