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Is performance appraisal a KPI? What's the difference between them?
I am glad to answer this question about performance appraisal as KPI.

Your company hired someone who claimed to be very good to say that performance appraisal is KPI, which is obviously wrong. The specific reasons are as follows:

First of all, these two concepts are different:

1. Performance appraisal: Performance appraisal is only a link in enterprise performance management, which refers to the process in which the appraisal subject uses scientific appraisal methods to evaluate the completion of employees' work tasks, the performance of employees' job responsibilities and the development of employees, and feeds back the evaluation results to employees.

Five links of a complete performance management: performance planning (or performance preparation), performance implementation, performance evaluation (or performance evaluation), performance summary and performance application.

2.KPI: KPI is the abbreviation of Key Performance Indicator, which means key performance indicator in Chinese. It means that a post may have more than a dozen jobs, but there are two or three key jobs, which determine the success or failure of this post.

For example, the key performance indicators (KPI) of sales positions, that is, the achievement rate of sales tasks and the achievement rate of payment, are not well done, and it is useless to do other work well.

There are three kinds of performance appraisal: quality appraisal, behavior appraisal and result appraisal.

1. Behavior evaluation: divided into subjective behavior evaluation and objective behavior evaluation.

1. Subjective behavior evaluation methods include: permutation method, selective permutation method, paired comparison method, forced distribution method and structured narrative method.

2. The methods of objective behavior evaluation include: critical event method, behavior anchoring grade evaluation method, behavior observation method, weighted choice scale method and forced choice method.

Second, the methods of performance evaluation are: target management method, performance standard method, direct index method, performance record method, essay method and labor quota method.

Third, other performance appraisal methods include: comprehensive appraisal method (360 degrees), key performance indicator appraisal method (KPI), balanced scorecard (BSC), key success factor (KSF), goal and key achievement method (OKR), etc.

I'm Mr. Z, the enterprise staff officer. Welcome attention!

"Performance appraisal is KPI" is the intuitive feeling of many people, and KPI is indeed the most commonly used performance appraisal tool in traditional industries. However, performance appraisal is really not just a way of KPI appraisal.

Performance appraisal refers to the process that the appraisal subject (individual/department) uses scientific appraisal methods to evaluate the completion of employees' work tasks, the performance of employees' job responsibilities and the development of employees, and feeds back the evaluation results to employees. Common performance appraisal methods include KPI, BSC, 360 EIA, OKR, forced proportional distribution, etc.

I have helped several clothing enterprises to do organizational structure optimization and performance management. In practice, I found that there are quite a few problems in using only one method to evaluate different departments, posts or functions.

For certain work, such as process, quality and quantity, there are clear standards and specifications, and KPI is more suitable, such as customer service, working hours, telephone answering times, how to assess satisfaction, etc. For technicians, such as workshop workers in the clothing industry,