In today's corporate management, using 'performance management' to motivate employees is one of the important management measures that many companies are implementing or planning to implement. However, recent voices about performance management, such as 'performanceism ruined Sony' and 'GE doesn't do performance appraisals anymore, why do you?', have made performance management controversial, and many managers question its effectiveness. Additionally, some managers recognize that 'performance management is a worldwide challenge' and 'performance management is a top leader's project', making its implementation seem less 'beautiful'. Wise managers do not follow the crowd; they have their own 'practical judgment'. Regarding the view that 'performanceism ruined Sony', upon careful analysis, it is not difficult to see that during the initial stage of Sony's institutional and performance-based pay reform (1995-1998), revenue and profits grew significantly in 1997 and 1998, achieving the board's goal of 'stimulating revenue and increasing profits', marking the best two years in its history. These revenues and profits were brought about by the earlier 'analog technology products' through compensation and performance management. However, after 1998, as digital technology rapidly replaced analog technology, Sony's indicators required subsidiary general managers to 'take responsibility for investments', and the ROI of investments had to be no less than 10%, which made them unwilling to invest in technologies and products that were risky but important for the future, preferring instead to do things that yielded immediate results without much risk. This short-sighted performance orientation severely hindered Sony's innovation and development; at the same time, each business unit became an independent accounting company, and when they needed to assist other business units without immediate benefit to themselves, there was no incentive to collaborate under this system. Under this overly decentralized system, each business unit's 'departmentalism' became prominent, leading to a 'loss of control' in collaboration. As competitors rose, Sony's golden opportunity for development was lost. Sony's performance management failed to effectively support the company's strategic development. Therefore, how to use the 'performance management' tool well and align it with strategic development is worth deep consideration by every manager. Regarding 'GE abandoning performance appraisal', this is actually a misunderstanding. GE actually announced the abandonment of the 'forced distribution curve' and 'rank-and-yank' in its performance appraisal, which it was proud of, and carried out a comprehensive reform of its existing performance management system. The new performance management system appears in the form of an APP, where managers manage and evaluate employees mainly through 'continuous dialogue', and the appraisal results do not include numbers and are not directly linked to bonuses or salaries as much as possible. GE is currently facing significant market changes, especially the continuous development of internet and mobile technology, and the characteristics of millennial employees have influenced this decision. Because millennial employees were born in the technological age and frequently use social media, they prefer timely feedback. This habit extends to work; they prefer supervisors to provide continuous and timely feedback on their work progress. GE is keeping pace with the times, and its timely reform and innovation align with the concept of performance management. It recognizes that ranking and forced distribution deviate from the original purpose of performance management, which is to improve employee performance and capabilities, thereby enhancing organizational performance and achieving strategic goals. GE also realizes that the best method and means to achieve performance management should be continuous communication. By keeping up with the times and innovating management methods, truly putting people first, GE has not abandoned performance management but has made 'performance management' more effective by combining it with its own corporate development stage and cultural characteristics. Upon reflection, over the years I have been tracking and serving clients, paying attention to the effects after they implemented performance management. Although I need to answer various questions during the implementation, I am still gratified and proud to know that most enterprises and institutions have achieved positive results. Among these enterprises and institutions, most follow the 'positive incentive' orientation we designed. As their performance culture is established, senior managers pay more attention, middle managers recognize the effectiveness of performance management tools and invest more energy, and general employees gradually understand and accept it. I firmly believe that the fruits of 'performance management' will play a greater positive role among them. What is the purpose of implementing performance management? Stay true to the original aspiration, and you will succeed in the end. ****************- END- The best FMCG distributor learning platform in China Focusing on providing professional, practical, and actionable tutorials for enterprises and distributors Committed to helping Chinese FMCG distributors grow rapidly The most professional and practical knowledge base in the FMCG industry Reply with the red number below to get the corresponding content Reply with number 1 to view the complete knowledge base | 001 Excellent article selection | 002 Distributor market operations | 003 Terminal visit management | 004 Sales supervisor skills | 005 Sales improvement techniques | 006 Channel expansion | 007 Managing distributors | 008 Distributor development | 009 Distributor internal operations management | 010 Team management | 011 Efficient distribution techniques | 012 Sales manager's eighteen skills | 013 KA operation methods and strategies | 014 First lesson for new salespeople | 015 Internet, brands | 016 Distributor B2B transformation | [Long press QR code to follow]