​PMI Group HR Strategy series 1 

Performance Management System Design Guide

Inside the book

Amidst a prevailing acceptance of "long-term low economic growth as a 'new normal'", firms must say adieu to externally favorable factors like "good times"; easy growth is no longer possible. Capital-intensive operations of yore churned out good products that led to a firm's high performance, however, todays' business environment is not like that; 21C firms have to rely on corporate climate and on hardware factors for their success. A structure & chemistry of corporate's sustainable growth are the main gists of business administration; "corporate climate" for humane & performance-orientation is the top requirement in securing managerial innovation. Firms have been run likewise, however, not many ones overlooked these precepts; performance management has been treated far from its original intentions. Moreover, corporate climate has had no relationship with actual running of the firm and sometimes played a decisive role of deterioration. For the sake of performance management, a firm could achieve its aim only when micro-level designs & operations should be oriented on macro-level to high performance climate. This book is a guide for job-oriented organization design in tune with business environment; design & operation of improved objectivity, fairness, accommodation as for performance evaluation; sustainable high performance and relevant innovation & taking roots.

Issues inside the book

Many firms do the best in coming up with a good strategy, but to no avail. Why their strategies do not turn into hoped-for performance? It's because they lack an executional outfit, that is, they have no job-oriented organizational readiness.

Then, what is job-oriented outfit that improves executional capability? And how to design it?

Workers are always not contented with their performance evaluation. A corollary is that high performers receive good marks, while low one’s low marks. However, dissatisfaction prevails in low performers' mind which finds fault in circumstances, who to blame, what other external causes.

Is there any way for low performers or laggards to accept willingly each one's evaluation sheets that guarantee a very objective merit-rating system?

Scant thoughts are given to whether organizational objectives are closely linked to performances and to how HR nurturing is being related to organizational aims. Each area seems to be working very well, however, there are only individual rushes in performances, objectives, merit-ratings, HR nurturing... so that a hoped-for output is being aborted.

Is it possible for performance management to be meaningful in that individual performances can be aggregated & sublimated to individual improvement & organizational growth?

Meanwhile, various forms of performance management have been introduced in the past; BSC & KPI are todays' performance management measures. However, KPI is not representative, especially because it fails to deal with "quality" of performance. Performance management is somehow being left out, not being implemented internally.

How can we embed it?

This book deals with assorted problems stated as above, and it enables the reader to find a way how to make a high-performance corporate climate.

Biblio information

Book title: Performance Management System Design Guide

Area: BA, Structural Innovation, Performance Management, Corporate Climate

Published by: PMI Group Press

Author: Shin Hyun-Kwan

Price: 19,000 won

Issued on: Oct 15, 2014

About the Author

He is a professional in the area of business administration & HR with a doctoral degree in BA. With more than 25 years' experience in domestic & abroad consultings & successful examples, Ph.D. Shin concentrates on how to structure corporate strategies & to make corporate climate for sustainable growth. His career started from JEMCO's consultant in Japan thru Korea Management Association consultant, CEO of EMC Partners, Vice-President of HayGroup, Business Planning VP of BarTech and EWoo Technology. He now represents PMI Group, with a dynamic activity in the capacity of a consultant in various fields such as management strategy, HR unit, business marketing, management accounting