Performance Evaluation System

Since HR department do not have the skill of improving employees' job satisfaction and defining and promoting company culture and values, Chengdu Wangfeng Food Co., Ltd can invite HR training experts to offer them some courses to teach them methods to increase employee satisfaction. This course is mainly lecture-based， which means teachers should be the leading role.

The advantage of this method is that the teacher can control the entire classroom, master the teaching progress, and directly impart knowledge to the students (Kyndt et al., 2013). However, Børing (2017) argued that the teaching method has certain limitations. If the teacher cannot arouse the students’ attention and interest, and cannot inspire the students' thinking and imagination, the curriculum will not be effective.

The contents of the course can be how to adjust the relationship between employees, how to effectively define and promote corporate culture, how to organize group building activities which are all effective in increase employee satisfaction (Proudfoot et al., 2009). Additionally, training courses can be held four times a week, because for HR, failure to master these two skills is quite an emergency.

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Background Analysis

The reasons why there are several KSA gaps are that Chengdu Wangfeng Food Co., Ltd did not regularly check employees for their gaps and did not provide them with effective training. After KSA analysis and training, a performance evaluation system is designed to check if their KSA gaps are filled.

Body

Performance Evaluation System

Performance evaluation refers to the process by which the company evaluates the completion of tasks, the fulfillment of job responsibilities and feeds back the evaluation results to employees (Wiemann, Meidert & Weibel, 2019). To evaluate employees’ performance, a performance evaluation system is designed which includes seven steps: OKRs setting, KRs weights setting, OKRs scoring, employee self-assessment, peer assessment, performance calibration meeting and adjustments.

Okrs Setting & Krs Weights Setting

Objectives and key results (OKR) is a framework for defining and tracking the set objectives and their outcomes (Hill, Thornhill & Conboye, (2018). The OKR consists of two parts: an objective and several key results. Objective refers to a statement of a broad goal which is generally not measurable and key results refers to statements of measurable goals which defines achievement of an objective (Business Wire, 2019). Moreover, KR weights should also be set, which can be determined according to the importance of KR, because it will be used when calculating the score of each objective.

The reason why KPI was not selected is that, relatively speaking, OKR has the advantages of allowing every employee to actively think, work and innovate. However, the characteristics of KPI is that employees only focus on completing tasks (Swiatek, 2019).

Four OKRs have been set for the head of HR department, HR manager, recruitment manager and three recruiters, two are about skills that are trained and the other two are skills they have mastered at moderate levels. When setting the OKR, the recruiter should fully discuss the OKR with managers and make adjustments to avoid OKRs being too easy to accomplish. Meanwhile, setting OKRs is a two-way communication process, employees can also make suggestions of managers’ OKRs, therefore, OKRs that do not reach consensus cannot be set.

Four tables below are quarterly (Q1 of 2019) OKRs for the head of HR, HR manager, recruitment manager and recruiters of Chengdu Wangfeng Food Co., Ltd.

Quarterly OKR for the Head of HR Department

Define and promote company culture and values Survey all employees (220) on our current values and receive answers from at least 80% employees. 20%

Dividing HR department into 5 teams, conduct brainstorm sessions to redefine our culture. 40%

Design and promote our new values on intranet. 40%

Based on the interview results, Chengdu Wangfeng Food Co., Ltd employees lack team cohesion, sense of mission and responsibility, which means Chengdu Wangfeng Food Co., Ltd had a problem of promoting culture and values. Therefore, the HR department should take the responsibility. An objective and three KRs were set to deal with this issue. For the first KR, survey all employees make sure the result is representative and not biased, but receiving all the answers are not achievable, so, receiving 80% answers is rather reasonable. After surveying employees’ understanding of culture, the HR head can take actions like redefining their culture in a more acceptable way and then promoting new culture and values on their intranet.

For the KR weights, the objective is to define and promote culture and values, so, redefining culture and promoting culture take larger proportions, 40%.

Quarterly OKR for the HR Manager

Improve employee engagement and job satisfaction. Conduct 3 team building activities on a monthly basis. 33%

Interview 100 employees on their needs for improving our work culture. 33%

Make improvements based on interview results. 33%

When employees have the problem of being not engaged, the HR manager should make some improvements. Team building activities are very necessary, which could make employees feel a sense of group and the activities could help employees relax and increase job satisfaction. Besides, it is also necessary for the manager to interview employees to know how they feel about the job and if there is anything they want the company to change. Lastly, making improvements based on employees’ opinions are also important.

For the KR weights, all the three KRs can effectively improve employee engagement and job satisfaction. Therefore, they are of the same importance (33%).

Quarterly OKR for the Recruitment Manager

Be up to date with competitors hiring practices. Review competitor’s hiring campaigns and gather insights 4 times. 33%

Develop a strategy that shows our advantages over competitors. 33%

Survey potential employees of our advantages and disadvantages compared to competitors. 33%

It’s important to hire better employees than competitors, it can reduce the cost of employee training and also the time to tap their potentials, therefore, comparison is important. Chengdu Wangfeng Food Co., Ltd can review the hiring campaigns of competitors once a month and survey potential employees to understand competitors’ recruitment requirements and compensation and benefits for employees, and then show their own advantages when developing recruitment strategy.

For the KR weights, since all the three KRs can help hiring better employees and play different roles in this objective. Therefore, they are of the same importance (33%).

Quarterly OKR for Three Recruiters in HR Department

Objective KR KR Weights

Develop a sustainable candidate lead strategy. Partner with 5 platforms to regularly place job ads. 40%

Partner with 10 yearly recruitment events or fairs to showcase our company. 40%

Build a database of rejected candidates who might be hired in the future. 20%

The company lack a sustainable candidate lead strategy, so they are less likely to be seen by job seekers. What recruiters should do is to partner with platforms where they can regularly place job advertisements and partner with recruitment events where a lot of job seekers will go to seek job opportunities to showcase their company. Moreover, setting a database of excellent candidates who were rejected for some reason is also useful, because they can contact them on the next recruitment, which could save recruitment managers’ and recruiters’ time.

Since the objective is to develop a sustainable strategy and it seems like the first two KRs are longer and more sustainable, they account for more proportions (40%).

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