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56页PPTcutiveHumanResourceProgram<br>ThePromiseofPerformanceManagement<br><br><br><br>HayGroup<br>Boston<br>TheCurrentChallengeofPerformanceManagement<br>TheHRprocess—<br>Iscompletelyunrelatedtootherkeybusinessprocesses<br>Isdreadedbymanagersandemployeesalike<br>Doesnotresultinanymeaningfulfeedback<br>Doesnotdifferentiateperformanceorpay<br>Isafocusforonlyoneortwodays—orhours—peryear<br><br>ThePromiseofPerformanceManagement<br>Imagineasystemthatcould—<br>Increasethelikelihoodthatyourstrategyiseffectivelycuted<br>Harnessanddirectthe10–60minutesadayofdiscretionaryeffortthateveryoneofyouremployeeshas<br>Rationalizeandfocusthenumberofgoalsthatanyoneinyourorganizationhas<br>Improvethedecisivedialoguethatoccursinyourorganization<br>Rewardperformanceinawaythatitismotivatingandengagespeople<br>Differentiateperformanceinwaysthatmakelinemanagersfeelgoodabouttheirdecisions<br>ImprovingPerformanceManagementImprovesBusinessResults<br>HumanResourceManagementPracticesDriveProfitabilityandProductivity<br>Percentageofvariationinchangeincompanyperformanceaccountedforbymanagerialpractices<br>ImprovingPerformanceManagementImprovesBusinessResults<br>StrategycutionMatterstoShareholders<br>Thirty-fivepercentofaninstitutionalinvestor’svaluationofacompanyisattributabletononfinancialinformationthatgaugestheabilityofthemanagementteamtodeliverresults:<br><br><br><br>Strategycution:Canmanagementmaketoughdecisionsandseizeopportunitiesquickly?<br>ManagementCredibility:Doesthecompanykeepitscommitments?<br>StrategyQuality:Ismanagement’svisionofthefuturelikelytooptimizevaluecreationinavolatile,globalized,andconnectedeconomy?<br>Innovativeness:Howreadilydoesthiscompanyadapt?<br>AttractingandRetainingTalent:Isturnoverhigherorlowerthankeycompetitors?Donewhiressurpassleaversinskillsandexperience?<br>ManagementExperience:Whatskillsandexperiencesdoesthemanagementteambringtothetable?<br>Compensation:ompensationpoliciessupportthefirm’sstrategicintent?<br>HumanCapitalSystemsIncreaseShareholderValue<br>35improvementinhuman-capitalsystemsresultedin10–20gaininshareholdervalue<br>ImprovingPerformanceManagementImprovesBusinessResults<br>High-performancecompaniesdefinePerformanceManagementinitsbroadestsense:itiscriticaltocutingandimplementingstrategy<br>PerformanceManagementisnowwidelyrecognizedasdeliveringmorereturnsanddeliveringmorecompetitiveadvantagesthanotherHRinvestments<br>PerformanceManagementisthekeyto“raisingthebar”inanorganization,foralllevelsofperformance<br>Organizationswithahigh-performanceorientationandstrongmanagementcapabilityhavehigherrevenue,profits,andmarketvaluations<br>PerformanceManagement<br>PerformanceManagementisaboutimprovingbusinessperformancebyimprovingteamandindividualperformance,andensuringthatthecompany’sstrategyiscutedandimplemented.Itis—<br>Aprocessthatensuresthatpeoplecutethestrategyoftheorganization<br>Aprocessforestablishingasharedunderstandingofwhatistobeachievedandhow<br>Aprocessforensuringthatdecisiveandconstructivedialogueoccurs<br>Aprocessofmanagingselfandotherssothatpeopledoachieve<br>Aprocessforensuringthatpeoplearedoingtherightthingsinthemosteffectiveways,tothebestoftheirability<br>PerformanceManagementStages<br>PerformanceManagementStagesthis<br>BestPractices<br>BestPractices—What’sDifferent?<br>Therearefourdifferentiatorsofbestpractice:<br>ClearStrategyTranslationProcess<br>IntegratedPerformanceProcesses<br>CultureofDialogue<br>MultipleandDifferentiatedRewards<br>StrategyTranslationProcess<br>ADefinition:<br>“Earlyinthehistoryofthecompany,whilethinkingabouthowacompanylikethisshouldbemanaged,Ikeptgettingbacktooneconcept:ifwecouldsimplygeteveryonetoagreeonwhatourobjectiveswereandtounderstandwhatwearetryingtodo,thenwecouldturneverybodylooseandtheywouldmovealonginacommondirection.”DavePackard<br>StrategyTranslationProcess<br>Checklist:<br>Arealltopteammembersunifiedandfocusedonthe“must-win”battlesoftheorganization?<br>Aretheinterdependenciesclearbetweenthetop-teammembers?<br>Arethemiddlemanagersclearonthe“must-win”battles?<br>Doemployeesknowwhattheyneedtodofortheorganizationtobesuccessful?<br>Financialgoals,operationalgoals,behaviors<br>IntegratedPerformanceProcesses<br>ADefinition:<br>“Leadersmustseetoitthattheorganization’s‘socialoperatingmechanisms’—thatis,thecutivecommitteemeetings,budgetandstrategyreviews,andothersituationsthroughwhichpeopledobusiness—havehonestdialogueattheircenter.Thesemechanismssetthestage.Tightlylinkedandconsistentlypracticed,theyestablishclearlinesofaccountabilityformakingdecisionsandcutingthem.”RamCharam,HBR4/2001<br>......
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