Investigation Of Performance Appraisal And Cafeteria Style Benefit Commerce Essay


Since ancient times, China be known as the country's civil service traditions, and has accumulated a wealth of ideas and personnel. Personnel Management from the ancient to modern human resources management of the development process reflects China's unique characteristic of human resources management. After the reform and open policy (1978), Chinese enterprises and external environment has changed dramatically, learn from advanced foreign experience, combined with the practice of Chinese enterprises, China has formed the pattern of human resources development and management gradually. At the same time, and the entry of foreign multinational companies to set up so that more of the color of invasive alien to the local human resource management model, the Chinese human resources management withstand serious challenges.

According to my collecting data and reading the actuality of the people management profession in China can be summarized below:

1. The Chinese human resource management is confronted with re-cognizing and re-learning

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In point of 1.3 billion people, undoubtedly, the Chinese human resource is the richest in the world. But a universal problem is Chinese corporate system in the process of improvement in the aspect of human resources management. Speaking overall, the Chinese corporation is ruled by men, not laws. Corporate mind had not yet awakened to the most important asset is employees. Human Resource Management as a social science and technology, it cannot avoid the actuality of social development, deviate the background to talk about human resources, neither essential nor meaning.

2. From tradition to modernity

Traditional personnel management center on 'career' not 'person' and limited the personnel management. Counting wages and managing archives, the managing form and purpose is control person. Modern human resources management center on 'person' and emphasize the development of human psychology, consciousness. The basic starting point of management is 'focus on the person' and leading enterprises to obtain the best social and economic benefits. There is a big mistake of Chinese human resource management in notion which is no long-term talent strategy; talent mechanism is not market-oriented; the method of talent selection is imperfect; personnel structure is single and so on.

3. The question of being in the Chinese human resource management and development:

â‘  Many people frequently move from one ownership, sector or place to another, changing their jobs or capacity from time to time. This situation caused extensive damage between employee and corporation.

â‘¡ Lack top managers and new and high technology employee universally.

â‘¢ Invest in human capital below the world's average.

â‘£ Corporate management system and Management Principle are obsolete.

The core of knowledge economy is based on human resource and knowledge capital as the center of the new economy. Human resources are the most important, special, exciting and challenging resources which is the only one get creative resources. It can bring organization competitive advantage constantly.

Many enterprises and organizations believe that performance appraisal is very important, but they do not like to use it. In China, many enterprises and institutions, even government agencies, such as conferring of bonus, advanced individual. They have no enthusiasm just follows the crowd. Sometimes play a negative role.

How to appraise the performance of employees? How to improve it? This is a difficult problem that any enterprises and organizations have to face. Many international enterprises and organizations improve performance through the establishment and evaluation systems to address this problem. Therefore, this article aims to explore the design of performance appraisal system, new ideas.

Cafeteria-style benefit helps SMEs to retain talent. The talents or a staff who lives in SMEs are depression. SMEs lives in difficulties, its staff size, assets scale are comparatively small compare with SMEs and large enterprise. In different countries, different stages of economic development, different industries have different definitions to SMCs. Develop the core competitiveness of enterprises is the key to win. With the new economy era, the importance of human resources has exceeded the funds and all other resources. As With the new economy era, the importance of human resources has exceeded the funds and all other resources. There are numerous SMEs in China. They have to make policy so as to keep talent.

2.2 The content of research

The content, objective, function and meaning of Individual performance appraisal; The critique for the assessment of existing personnel system; A investigation of staffs condition; job analysis; The goal setting of performance; The source of performance appraisal information; The content of performance appraisal; Appraisal technology and tool; Appraiser training; The knowledge process capability of performance.

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2.3 The purpose of research

First of all, provide a basis for organizational performance management systems, individual performance appraisal is its subsystem. In addition, provide a platform let staff make self-appraisal. Thirdly, provide a channel which let organization understand the working condition of manager and employee. Fourthly, establish a bridge between staff and team. Fifthly, provide the gist for the employee's appointment, promotion and demotion, salary design and so on. Sixth, provide bonus system and means. Seventh, provide organizational cultural development. Eighth, provide guarantee of human resource for organisation achieve its strategic goal.

2.4 The meaning of research

By studying this research, it explains the basic concept, theory, meaning, principles, contents, methods, procedures and other aspects of performance appraisal. Provide theoretical foundation for the employee performance appraisal. It has important meaning to promote the human resource department of enterprise in China, team and individual performance appraisal.

3 The advantage of self-service benefits

Attract and retain talents and make talents work hard for the achievement of organizational goals. It is the primary mission of human resource development and management, however, welfare as an important constituent part of reward management. Its meaning and function own a great importance. It not only attracts excellence staff and drums up staff morale, but also reduce flow rate and encourage employee.

The advantage of self-service benefits is that it properly provides what employees need. As each person get all the things they want and need. It can encourage employee to work hard so as to purchase the welfare which play a role in management by objectives. On other hand, self-service benefits give the sense of identity and embodies the human sympathy, increase the sense of belonging of employee.

Literature Review

4.1 The theoretical research about performance appraisal

In terms of performance = ability X motivation (Holland 1989), performance appraisal relates to motivation theories deeply. In motivation theories, the most influential theories are: the hierarchy of needs theory by American humanistic psychologist Abraham Maslow (A. Maslow, 1943), the two-factor theory by psychologist Herzberg (F. Herzberg, 1959), the expectancy theory by American psychologist Vroom (VHVroom, 1964), the equity theory by American behaviorists Adams (Stancy.J.Adams, 1967), the goal-setting theory by Locke (EALocke, 1967), the frustration theory by Austrian psychologist Sigmund Freud (S. Freud), as well as the theory of reinforcement by Skinner, a psychology professor at Harvard University (BFSkinner). These theories are important foundation to design performance appraisal.

To a certain extent, performance appraisal system was established by three landmarks of organizational psychology: Critical incident technique, management by objectives and principle of aggrandizement (Dunnette, 1976). Principle of aggrandizement means to approve and confirm the ongoing desirable behaviors. Gary P.Latham & Kenneth N.Wexley are considered that performance appraisal should be based on another landmark; this is the principle of fairness within the organization. Because it will affect employee's appraisal about organizational justice and fair.

4.2 The research of performance appraisal tool and appraisal error

Appraisal tool is the primary factor which affects individual performance appraisal error. There are many theories and methods can use for research appraisal tool.

Gary P.Latham & Kenneth N.Wexley contrast researched Trait Scales (TS), Cost-Related Outcomes (CRO), Forced-Choice Scales (FCS), Behaviorally Anchored Rating Scales (BARS), Behavioral Observation Scales (BOS), and Mixed Standard Scales (MSS) and so on in Performance appraisal - Devote to improve the general strength of enterprises and organizations (Second edition). And recommend use Behavioral Observation Scales (BOS) as a method of performance appraisal.

Key Performance Indicators (KPI) is an exercisable tactical target which analyzes organisational macro-objective decision. And it is a monitoring indicator of decision implementation of macro-strategy. Usually, KPI is used for reflect the effect of policy implementation.

The Balance Scorecard (BSC) turns organizational mission and strategy into a complete operational objective and performance index as a tool of strategic implementation and control. It is also a management method and effective communication tool. BSC includes 4 dimensions: finance, customer, internal processes, learning and development. This method mainly for organizational performance appraisal, while appraise the staff's performance.

The source of appraisal information is the second factor which affects individual performance appraisal error. Gary P.Latham & Kenneth N.Wexley analyzed superordinate appraisal, peer appraisal, subordinate appraisal, self-appraisal and external professional appraisal and so on and analyzed diverse appraisal error in Performance appraisal - Devote to improve the general strength of enterprises and organizations (Second edition). Such as comparison error, primary factor error, halo error, judgment error, central tendency error, cultural differences, over-regulated or loose and so on. Start with error assessment from appraisal information, the key is to train the appraisers and select the appropriate appraisers in force.


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2.1 Based on interrelated theory, adopt the viewpoint of dynamic linkage, the method of empirical research and the method of inductive analysis. Through the introduction of theory and existing operational benefit. Look for the bonding point between human capital operation and SMEs performance in order to find the important information on cafeteria-style benefit. Find out how human resource manager can give employee a cafeteria-style benefit.

2.2. Investigation method: Use the questionnaire method to verify and analyze the recent status of staff. For example, use the Minnesota satisfaction questionnaire (MSQ) or Likert-type scale to make employee opinion survey.

2.3. Research method: Using logical reasoning, empirical analysis, and comparative analysis method. Using comparative analysis method, combining the actual situation in SMEs, namely, start with employee opinion survey and observed result. Reopen the job analysis, compare in different appraisal tool, goal setting standard and so on. And analyze the design ideas of performance appraisal system from reliability, validity, applicability and impartiality this, that and the other. Use the empirical analysis method in connection with the intrinsic deficiency of SMEs so as to propose corresponding advanced strategy.

Dimension analytic table of individual performance appraisal






Emphasize the basic qualification of human

Emphasize Production & Quality 

Emphasize Assembly Quantity

Key content

Personality trait & ability

Behavioral phenotype & working attitude

Objective creative productivity & means of production

dimension title

Ability appraisal

Personality Traits appraisal

Behavior appraisal

attitude appraisal

Performance appraisal

Objective appraisal

Proposed Research Time-Table

Jan. 2010 -- June 2010: Finish the literature review; I am going to be familiar with the related research information. Achieve mastery of knowledge on human resource management especially in performance management.

Aug. 2010 - Dec. 2010: Finish the data collection and set up the outlines of data required.

Jan. 2011 -- June 2011: Review all the fundamental theories and establish the theoretical framework.

Aug. 2011 - Dec. 2011: Practice in a SMEs and analyze data further so as to improve and perfect the research.

Feb. 2012 - Mar. 2012: Send the first draft to tutor.

May 2012----Sept. 2012: Finish the work.

Research Strategy

The research collected data from firsthand information and second. They came from: 1. Chinese government official publications of statistics. 2. Newspaper reading from Chinese official newspapers and website. 3. Bachelor of Science (Human Resource Development)

The all of source data is going to serve as empirical findings to interpret how performance appraisal important is. And the cafeteria-style benefit influence SMEs policy.