Q: What are the phases of Performance Appraisal Cycle?

A: Performance Appraisal Cycle usually contains three phases: Performance Planning, Performance Coaching and Performance Review.  In the Performance Planning phase, the appraiser and appraisee will discuss together and agree on the performance standard for the coming year whereas in the Performance Coaching phase, the appraiser should provide guidance as well as feedback on the appraisee’s performance to help the appraisee achieve the performance standard. Finally, the appraiser will assess the performance of the appraisee in the Performance Review phase according to the achievement of the agreed performance standard.

To remain competitive in nowadays fast-moving business environment requires not only right strategies but also good execution.  An effective performance management tool can help organizations communicate corporate policies, clarify responsibilities of departments and transform strategic directives into Key Performance Indicators (KPIs) in different perspectives, which enables systematic assessment on corporate and departmental performance and initiation of improvement actions required to close the performance gaps.

Workshop Outline:
• Defining the Vision, Mission and Values, Long-term Goals and Business Strategies
• Cascading and Implementing the Business Strategies
• Striving for Performance Excellence
• Different Tools for Performance Management
• The 4 Perspectives of Performance Measurement and Their Causal Relationship
• Establishing the Annual Objectives, Key Performance Indicators (KPIs) and Quantifiable Targets
• KPIs Examples for Different Departments in Manufacturing Industry
• Translating Objectives to Tangible Action Plan
• Cascading the Corporate Objectives down to Departmental and Individual Levels
• Clarifying Departmental Roles and Responsibilities
• Conducting Systematic Performance Assessment at Corporate and Departmental Levels
• Implementation Strategies for Performance Management
• Success Case of Performance Management
• Simulation Activities on KPI Development

To learn more on how HMI Consulting can help your company's management team to enhance corporate and departmental performance via this in-company training workshop, please call (852) 3627 3673 or email to info@hmi.hk.

Economic Overview

In Hong Kong, the value of total retail sales in July, provisionally estimated at $22.8 billion, decreased by 5.5% year-on-year, according to the latest figures released by the Census and Statistics Department. After netting out the effect of price changes over the same period, the volume of total retail sales decreased by 5.4%, compared with a year earlier.  The revised estimate of the value of total retail sales in June, at $21.1 billion, fallen by 4.7%, while the volume of total retail sales decreased by 4.1%.  Taking the first seven months of 2009 together, total retail sales decreased by 4.6% in value or 5.4% in volume when compared with the same period last year.. [Source: HKEJ (P5)/ csd.gov.hk, 2 Sep 09]

Meanwhile, the total employment in the private sector decreased by 1.5% or 38,200 in June than a year earlier. Employment decreased in the industries of manufacturing (-6.2%), import and export trade (-5.7%) and information and communications (-3.3%). The total number of vacancies was 31,530, representing a decrease of 39% over last year. Vacancies decreased in all selected industries in June 2009 over a year earlier.  Decreases were mainly in the industries of import and export trade (-54%), financing and insurance (-60%), professional and business services (-49%), retail trade (-29%) and manufacturing (-67%). [Source: SCMP (A3)/ HKET (A26), 22 Sep 09]

On the other hand, the mainland’s manufacturing activities grew last month at the fastest pace in 16 months. The country’s purchasing manager’s index (PMI), compiled for the National Bureau of Statistics, jumped to 54 last month from 53.3 in July, driven largely by surging growth in new lending. Any reading above 50 signals expanding manufacturing. Economists said the green shoots of the manufacturing recovery were becoming more evident and pointed to improving orders during the peak season when factories rushed to fill Christmas orders. [Source: SCMP (B1)/ HKEJ (P1), 2 Sep 09]

Under the uncertain economic conditions, companies remain conservative in their hiring plan. According to a survey conducted by Manpower Hong Kong, 11% of Hong Kong employers plan to increase headcount, 7% predict a decrease and 80% expect no change. The net employment outlook stands at +4%. This figure is derived by taking the percentage of employers anticipating total employment to increase, and subtracting from this the percentage expecting to see a decrease in employment at their location in the next quarter. Quarter-over-quarter, employers report slightly stronger hiring intentions, with an improvement of 4 percentage points. In terms of business sector, services and finance, insurance & real estate sectors are most eager to hire recruits. [Source: HKET (A6)/ manpower.com.hk, 9 Sep 09]

The following summarized the recent actions taken by different organizations:

• BEA adding 120 employees to ranks amid recovery hopes [Source: SCMP (B2)/ The Standard (P5), 1 Sep 09]
• China Oilfield sacks 40 at Norwegian unit to cut costs [Source: SCMP (B3), 1 Sep 09]
• Mitsubishi Motors hiring 1,300 workers in Thailand [Source: Channelnewsasia.com (Sep 9)]
• Magna says it plans to cut 10,500 jobs at Opel [Source: Channelnewsasia.com, 15 Sep 09]
• JAL to cut 6,800 jobs amid route reduction [Source: SCMP (B5), 16 Sep 09]

Disclaimer: Should there be any different views in the interpretation, please always refer to the original media source as reference. HMI Consulting accepts no liability in respect of the accuracy and truthfulness of the materials included in this newsletter.