Keywords: high-level; Management team; perform
1 Overview of Pure Management
Performance management is a challenging task based on enterprise development strategy, and its effectiveness is reflected in the ability of enterprise strategy implementation, which has been paid more and more attention by management and has become a management knowledge. With the change of economic environment and the intensification of market competition, enterprises must strengthen scientific management with endless advanced management ideas. Judging from the development trend of management theory, many management scholars have regarded performance management as an effective tool for strategy implementation. From the perspective of human resource management, performance management is also the core. Fierce market competition requires top leaders to operate more in a team way, so it is imperative to strengthen the research of enterprise top management team.
2 definition of senior management team
The top management team referred to in this paper is a small group of senior managers in the company, including CEO, general manager, deputy general manager and senior managers who report directly to them. They are a team of managers who play an important role in key business decisions. At the same time, it is emphasized that this senior management team does not include corporate owners such as major shareholders, but only refers to corporate managers. This group has the characteristics of benign interaction, resource integration and optimization, consistent goals and high efficiency. Under the modern management concept, the management mechanism of decision-making by top leaders is gradually replaced by a more scientific, reasonable and rational collective decision-making mechanism. Fierce competition and rapidly changing market conditions require the top management team to cooperate closely, make faster response, solve problems more flexibly and better, and achieve greater results. Therefore, in performance appraisal and management, team appraisal is regarded as an important aspect.
The above definition comes from the "high-level echelon theory" put forward by Hambrick and Mason in 1984. The research focus of high-level echelon theory is the whole high-level management team. Not just the manager himself. Organizational leadership is an activity. Although top managers are the main decision makers, they share power and responsibility with other members of the organization. From the current literature, the research on top management team can be summarized into two aspects: the relationship between top management team and organizational innovation, organizational strategy, organizational strategic change and organizational performance; The relationship between top management team and enterprise diversification and international diversification. At present, the research on the former mainly focuses on the composition of top managers and the distribution of individual members' characteristics in the team. The basic view of the theory of top echelon is that the characteristics of top management team will affect organizational performance and strategic choice, and the different cognitive basis, values, insight and the process of these characteristics of team members will affect the competitive behavior of the organization. Therefore, it is necessary to understand the background, experience and values of the entire leadership team. From the conclusion of foreign research, there are significant differences in the operating results of top management teams under different backgrounds. Compared with the general work team, the decision-making function of the top management team is stronger.
In China's management practice, the leader's personal behavior theory is still popular, and only a few scholars study the whole top management team from the perspective of team. With the rapid expansion of enterprises, many companies have essentially established effective management teams to determine the development direction and pace of enterprises. From the perspective of application, this paper focuses on how to measure the role and achievements of top management team in realizing organizational strategy and performance.
Three elements of performance management
3. 1 Establishment of target system
The strategic direction of an enterprise is generally decided by the shareholders' meeting and the board of directors. As a senior management team, we need to explain the strategy through scientific and objective analysis. Whether the strategic goal of the enterprise is feasible, what the environmental conditions will be, the challenges and opportunities that may be faced, whether the strategy is decomposed and implemented, whether the strategy is effective, and so on. In reality, some enterprises lack scientific target system construction, which leads to the mismatch between performance management objectives and the actual situation of the company, lack of systematicness and scientificity, and can not guide and promote the company's strategic planning and actual development needs. Only under the premise of defining the company's strategic objectives can the assessment standards of the top management team be established, and enterprise leaders can better understand how to carry out effective management and what kind of behaviors and measures are in line with enterprise development. Only under the premise of certain goals can we ensure that its future performance evaluation is open, fair and just.
3.2 Establishment of evaluation criteria
In terms of assessment criteria, it is a big problem to quantitatively determine the performance of the top management team. In many decision-making processes, because the environment, opportunities, people, money and things change at any time, we can never find the best plan, only the most satisfactory plan at that time; At the same time, decision-making schemes are often determined under risky circumstances, even under uncertain circumstances. When the risk probability is extremely small, it will be 100% for the management. Therefore, even if the whole senior management team is fully committed, it may cause the failure of strategic objectives, which is one of them.
Second, in the past, we used to use sales, profits and other indicators as strategic objectives and assessment basis. Practice has proved that under the modern corporate governance structure, such assessment indicators often make managers pay too much attention to the current income and give up future development. When faced with risky decision-making, the top management team always gives up high-risk and high-return projects based on its own interests, which is obviously not in line with the long-term interests of shareholders and the company.
Based on these two points, we usually add qualitative judgment to the assessment of senior management team on the basis of quantitative indicators. Qualitative judgment plays a decisive role when the environment changes greatly, which is far from the predicted situation, or even when the quantitative index assessment is abandoned.
It is worth noting that even if quantitative assessment indicators are adopted, special attention should be paid to the fairness of the indicator system. In the continuous performance appraisal, we can also use absolute and relative performance indicators to draw different conclusions. For example, in the product growth period, the performance growth rate is very fast, but in the mature period, the performance growth rate drops sharply. Just like a student's exam, if A scores 60 points for the first time, then the next time he scores 90 points, the growth rate is 50%, and the absolute amount is 30; However, the first time B got 90 points, even if the next time B got full marks 100 points, the growth rate would only be 1 1%. Obviously, B's performance is better, but if the growth rate is chosen as the assessment index, B will be better.
Therefore, in the performance appraisal of the top management team, we regard the reasonable and effective performance of duties as an important criterion from the perspective of behavior analysis. This is different from the evaluation criteria of ordinary employees and individuals. The specific performance standards are determined by the communication between the owner and the operator.
3.3 Contents of evaluation indicators
On the premise of China's management practice, institutional environment and culture, this paper examines the assessment of top management team from the perspective of team internal and organizational operation.
(1) The composition of team members, including education and knowledge level, experience, judgment of events, personal efforts, team unity, resource status, etc. Whether the completion of the business performance indicators and the financial situation of the enterprise are in good condition.
(2) Forecast the future development trend, formulate countermeasures and improve the competition pattern.
(3) Whether the organizational structure and operation of the enterprise are good, and whether the turnover rate and satisfaction of employees meet the requirements of enterprise operation.
(4) Whether to maximize shareholder value and whether to consider the sustainable development of enterprises when making decisions.
At present, there are advanced information technologies and management theories such as business intelligence (BI) technology, balanced scorecard (BSC) and personal key performance indicators (KPIs), and enterprise performance management (BPM) systems based on these technologies.
4 to improve the performance of senior management team should pay attention to the problem
Performance management is not so much a method or tool as an idea, a philosophy and a management philosophy of "performance-based management and performance-based development". Quantitative and scientific evaluation is not the ultimate meaning of performance management.
Its greater value lies in helping managers form scientific management habits, helping employees improve their work efficiency, and thus contributing to the realization of enterprise strategy. Therefore, in addition to assessment management, we should also pay attention to some problems.
4. 1 team capacity
According to the organization theory, a team of 5-7 people is a reasonable and effective team. If there are too few members, the rate of decision-making mistakes will rise. Assuming that the decision-making in a team is an independent event, the probability that one person makes a decision-making mistake is 50%, and the probability that a team of three people makes the same mistake is 12.5%. In reality, from a psychological point of view, its members are likely to think that their ideas, values and ideas are actually wrong. When there are five people in the team, the number will drop to about 3%, and if there are seven people, the possibility will drop below 1%. It can be seen that a small management team is not conducive to the correctness of the decision. However, we should also pay attention to one point: too many management teams and scattered decision-making may also lead to the inability of enterprises to operate.
4.2 Equal rights and responsibilities and consistent goals
If the responsibilities of the management, management and executive levels of an enterprise are unclear or often offside, it will not only be difficult to balance power, but also make employees feel at a loss, even shirk their responsibilities, making their sense of responsibility disappear, and may even lead to chaos in the enterprise. Therefore, we must improve the corporate governance structure and organizational structure, and straighten out and balance the relationship between power and responsibility.
4.3 Corporate Cultural Background
Corporate culture is the key factor and operating platform of performance management. In the soft environment of different corporate cultures, there are differences in the evaluation of performance and behavior. In essence, the implementation of enterprise performance management is to embody enterprise values and business philosophy in a more concrete, intuitive and easily understood and accepted form by enterprise employees. The degree of decentralization of managers' power, tolerance of risks and conflicts, monitoring and coping with the external environment, and the importance attached by enterprises to achieving goals will all determine and change the behavior of top management teams, thus making different performance orientations. The influence of corporate culture on performance is also reflected in the recognition of performance.
4.4 Difficulties in communicating with strategic decision makers
In the process of strategy implementation, if there is no support and guidance from the decision-making level, it will get twice the result with half the effort or it will be difficult to achieve the expected results. Therefore, it is also very important to fully communicate with the decision-making level, understand the goals and value orientations pursued by the decision-making level, and further clarify the strategic intention.
4.5 The incentive demand of employees' overall literacy level
This knife cuts bread and fingers. Measures to manage the team should be carried out by employees. If the top management team wants to achieve the expected performance level, it must mobilize the enthusiasm of employees. On the one hand, understanding the quality level of employees is helpful to the smooth development of all work. On the other hand, let employees and managers help each other. The realization of enterprise performance is unified with the realization of employees' personal value. As far as possible, provide employees with sufficient resources, sufficient incentives and jobs that match their talents, and strive to improve working conditions so that every employee has an equal opportunity to show his talents to meet the requirements of employee performance.
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