English-绩效考核管理制度final1216.doc

Li Ning Co.,LtdPerformance Assessment Management SystemRevised in Dec.,2010Table of ContentsChapter 1 General Provisions3Chapter 2 All-round Performance Management System and Duties Division4Chapter 3 All-round Performance Management Performance Indicator Setting7Chapter 4 All-round Performance Management Process Coaching and Communication10Chapter 5 All-round Performance Management Rating, Rewards and Punishments11Chapter 6 Supplementary Provisions16Attachment 1 Li Nings Competency Models17Attachment 2 Top 10 Factors for Evaluating Leadership Potential in Li Ning18Attachment 3 Template of Individual Development Plan（IDP）19Attachment 4 KPI Template and Examples20Attachment 5 Employee Performance Coaching List22Attachment 6 Performance Improvement Plan23Attachment 7 Record of Complaints25Chapter 1 General ProvisionsArticle 1 Scope of ApplicationThis performance assessment management system applies to all employees of Li Nings holding companies and joint stock companies in Mainland China, including Li Ning (China) Sports Goods Co., Ltd, Li Ning Sports (Shanghai) Co., Ltd, ,Li Ning Sports Goods Commerce (Beijing) Co., Ltd, Shanghai Yueao Sports Goods Co., Ltd, Shanghai Yidong Sports Development Co., Ltd, Shanghai Z-DO Sports Goods Co., Ltd, LOTTO Sports Goods Co., Ltd, Li Ning Sports (Tianjin) Co., Ltd etc.Other subsidiaries including Li Ning Sports (Hong Kong) Co., Ltd，Li Ning Sports Technology Development (Hong Kong) Co., Ltd, Li Ning Sports USA, Inc，Li Ning Sports Singapore Pte Ltd, Guangdong Yueao Sports Development Co., Ltd, Foshan Li Ning Gymnastics School Services Co., Ltd, other brands and sales companies as well as newly established companies refer to the rules.Article 2 Purpose of Performance Management2.1 Performance goals breakdown: Based on performance management system, break down the companys strategic goals and annual operational goals at different levels in order to ensure that the goals for departments and individual employees support company goals effectively;2.2 Performance results improvement: Carry out performance goals setting, performance process guiding, performance appraisal and feedback performance management system to ensure the continuous improvement of the performance of individual employees and teams;2.3 Building a communication platform: Performance management delivers a complete and easy-to-use management tool for the communication between management members and employees in terms of goals setting, work performance and future development, encouraging the timely communication between them during the assessment cycle;2.4 Create performance-oriented culture: Through performance goals-oriented performance assessment, conduct an objective assessment of employees performance, grant rewards or impose punishment, raise the initiatives of employees, and intensify the culture characterized by excellent performance;2.5 Upgrading performance-related abilities: Through developing and implementing Individual Development Plan (IDP) based on the leadership competency model and professional level, improve the abilities of all employees step by step, facilitate the realization of performance goals and help identify excellent employees.Article 3 Performance Management Principles3.1 Set sensible goals: In the process of breaking strategic goals down into performance goals of individual employees, take into account the longitudinal conformity and latitudinal synergies, identify clear focuses and set sensible goals.3.2 Recommend positive encourage: Performance management encourages employees to keep breaking established goals and their own abilities, inspires them to achieve excellent performance, and gives full affirmation and rewards to those excellent performers;3.3 Differentiate performance levels: Through the whole-process management of the all performance all indicators, set performance assessment criteria tailored for Li Nings management conditions to differentiate different levels of performance and reflect different levels of performance results and rewards;Chapter 2 All-round Performance Management System and Duties DivisionArticle 4 All-round Performance Management SystemAll-round performance management consists of two parts: all-indicators management and whole-process management, including performance, abilities and individual development, being a cyclic management from goals setting, process guiding to assessment and feedback.Article 5 All-round performance All indicators management5.1 All-indicator performance management comprises performance management system, which takes KPI as the core, and ability development, which takes leadership/professional skill as the core. It involves performance results and the ability needed to achieve the expected performance results.上图中文字：全指标管理：All-indicator management 愿景：Vision 业绩导向：Performance Orientation 能力导向：Ability orientation战略目标：Strategy goals 价值观：Value部门目标：Department goals 资质模型：Competency model个人关键业绩指标：Individual key performance indicator能力潜力评估：Ability potential assessment 个人发展计划：Individual Development Plan（IDP）5.2Performance management which takes KPI as the core: 5.2.1 Key Performance Indicator（KPI）: It is a management indicator to measure the performance of an employee in a performance cycle, being the basis of the companys performance management system. The setting of KPI helps drive the implementation of company strategy and guide the direction of employees working. 5.2.2 Key Development Indicator (KDI): It is an indicator set for management members of department managers or above, in order to draw the attention of managers to the team building and employees development. Through the purposeful introduction, coaching and guiding for employees, help them achieve their performance goals.5.2.3 Observation indicators: For the supervision and risk control of some business results, we just assess the observation indicators and the results are not included into the final assessment results. Observation indicators include company observation indicators and individual observation indicators. l Company observation indicators: Depending on the company focuses at a certain stage, choose the corresponding indicators for target employees to observe and the target employees are identified by the company.l Individual observation indicators: Depending on the focuses at the current stage, the examiner and the examinee discuss and set the individual observation indicators in order to carry out and monitor the execution of the indicators.5.3 Capability assessment management: Performance management does not only focus on the performance, but also on capability to achieve continuous excellent performance and competency behaviors. With the leadership competency models and professional skill as the core, train all employees to develop, assess and give feedback to their competencies and qualities in a planned way to raise their competencies step by step and guarantee the sustainable competitiveness of the company. Capability assessment management includes capability assessment based on leadership competency models and professional skill and development-based potential assessment. In particular, 5.3.1Leadership assessment and development: Leadership competency acts as the important basis for leadership development. The company highlights the concept of “every employee in Li Ning is a leader”. The leadership assessment, based on “Li Ning leadership competency model”, includes four parts: leading self, leading business, leading teams and leading others (see Attachment 1).Review, assess, train and follow-up the employees leadership competency behaviors on a regular basis. See training materials for details.5.3.2 Professional skill assessment and development: Professional skills differ depending on the different positions/tasks, reflecting the professional skills needed for an employee to do his work. Review, assess, train and follow-up the professional eligibility of an employees on a regular basis to improve their efficiencies and achievements. See Notes on Professional Skills and Positions Description for the requirements on Professional skills.5.3.3 Potential assessment: Potential reflects the possibility of an employee to develop higher or toward other areas in the future. By assessing an employees potential, observe his or her space for future development and growth as the reference for personnel preparation and promotion. For details, see Attachment 2:Top 10 Factors for Evaluating Leadership Potential in Li Ning 5.3.4Individual development plan (IDP): Based on an employees performance, leadership, results of professional skills assessment, as well as his or her knowledge and experience, work out an IDP for the next year taking into account work plan and individuals career development needs.(See Attachment 3). Article 6 All-round Performance - Whole-process ManagementWhole-process management refers to the cyclical whole-process management from performance indicators setting, process follow-up coaching and rewards and punishment after assessment. In particular,6.1Indicator setting: It includes performance goals setting, ability goals setting, working out of individual development plans, and reaching an agreement on goals setting; 6.2 Follow-up coaching: It includes regular review of performance goals execution and employees coaching, giving support and coaching to solve the problems, and ensuring the correct work direction and timely resolution of problems;6.3 Rewards and punishments: This includes performance review, assessment, communication as well as the implementation of rewards and punishment.上图文字：全过程管理：Whole-process management指标设定：Indicators setting 业绩目标：Performance goals能力目标：Ability goals 个人发展计划：Individual development plan目标设定沟通：Communication for goals setting 评估奖惩：Rewards and punishment after assessment 绩效总结：Performance review 绩效评估：Performance assessment绩效沟通：Performance communication 绩效结果应用：Application of performance results跟踪辅导：Follow-up coaching 期中回顾：Midterm review 辅导跟进：Coaching and follow onArticle 7 Duties Division7.1 Examiner responsible for setting, managing and evaluating employee performance goals, in particular:7.1.1 Set performance and ability goals and individual development plan together with employees: Based on the companys strategic goals and work focuses, break down and work out the performance goals of each business unit and subordinate employees; communicate the goals with employees and reach an agreement with the setting of performance goals; 7.1.2 Coach employees to accomplish goals and feedback: Assist and coach employees to implement the performance goals; help employees upgrade abilities and accomplish performance goals and achieve individual development; 7.1.3 Conduct performance assessment and feedback: Depending on performance cycle, perform an interview with employees and conduct assessment, and give the real and objective feedback to employees. Affirm the excellent performance behaviors of employees, coach them in the aspects needing improvement and propose clear and specific requirements, work out an improvement plan together with individual employees.7.1.4 Rewards and punishments: According to the performance assessment results, a supervisor puts forward the opinions on the rewards and punishments with individual employees and communicates the information to them.7.1.5 Identify the key direction for the next stage: supervisors and employees together discuss the direction, focuses and goals for the next stage; the supervisors motivate the subordinates to be willing and able to achieve the goals, and provide necessary resources support.7.2 Examinee the object of performance management which undertakes the following duties: 7.2.1 Confirm goals: Set, clarify and confirm with the examiner the performance goals and schedule, while determining ability development goals and individual development plan etc;7.2.2 Performance realization: An employee makes efforts to realize the goals effectively, display commitments and responsibilities in accordance with company competency behavior criteria. During this process, communicate with the examiner, seek feedback and assistance with the problems, confirm the results for the current stage and the direction for the next stage, and ensure the achievements of the final performance goals. 7.2.3 Self assessment and summarization of performance: through the interview with the examiner or other ways, summarize the implementation of individual performance, make self assessment of the current performance, review the IDP and propose the points for improvement in the next stage; seek feedback and get to know the expectation of the supervisor, and work out an improvement plan together.Chapter 3 All-round Performance Management Performance Indicator Setting Article 8 Breakdown and Setting of Performance Goals Setting of performance indicators includes Key Performance Indicators (KPI), Key Development Indicators (KDI) and observation indicators. It breaks down the strategic goals of the company level by level and assigns them to each position, representing a process of communication and reaching an agreement between the supervisors and the employees with work goals and considering these work and goals as the basis to evaluate the performance of employees at the end of each stage. The setting of performance goals includes the following:8.1 Break the strategic goals of the company down at the level of business unit: in accordance with the annual operation plan of the Group, break its annual goals down at each brand, system and business unit, ensure the support of each business unit to the Group work; when necessary, organize discussion and communication to coordinate the synergies between indicators in all aspects, and form performance contract of head of each business unit;8.2 Goals of each business unit is broken down at the level of departments: Head of each business unit communicates with Dept managers and break down the annual goals of the business unit at each department to ensure the support of departments to the work of their business unit; coordinate the synergies between departments, and form performance contract of department managers;8.3 Break down the departmental goals at the level of employees: Based on the key tasks and positions of each department, department manager or designated examiner, together with employees, determine the performance goals and completion criteria, form Employees Key Performance Indicators;8.4 Setting of Key Development Indicators: They are set by the company based on the development focuses of the company at each stage and the actual situation of each business unit;8.5 Setting of observation indicators: Based on the focuses at each stage, tasks which need the attention of the examinees can be set as observation indicators. Observation indicators can be divided into company level， which is set forth by the company, and individual level, which is set forth by examiner and examinee after discussion.Article 9 Contents of Key Performance Indicators Key performance indicators include indicator type, indicator, weight, target value assessment method, examiner and name of examiner. Please refer to Attachment 4 for KPI Template. 9.1 Indicators: Key indicators which are determined by examiner and examinee through discussion and reflect the current focuses. They can be result indicators (directly reflecting the business results of the company, departments and individuals and their performance and showing the success or failure in a straight way); or process indicators (reflecting the actions taken to achieve the result indicators, or the examination items during the process) on which an examinee may have impact;9.2 Weight: Determine the weight of each indicator based on the current focuses and the sum of each weight should be 100%; 9.3 Target value: goals to be attained according to the indicators at current stage. Performance examination goals should be explicit, specific and measurable, i.e., specify the work quantity and quality and specific requirements;9.4 Assessment methods: They are methods to calculate or evaluate the score of each indicator. Usually there are formula for calculating quantitative indicators and result indicators;9.5 Examiner: It is divided into first examiner (usually immediate supervisors) and second examiner depending on work requirements and subordination;9.6 Name of examiner: Name of the first examiner/second examiner; Article 10 Principles for Setting Key Performance Indicators 10.1 SMART principle: Setting performance indicators shall follow the principle of SMART: l Specific: Performance goals shall specify the work contents and assessment ways; l Measurable: Performance goals shall be measurable through objective calculation or subjective assessment, and the cost, time, investigation/calculation difficulties shall be in a controllable range (to avoid select indicators hard to achieve or needing overly high cost);l Attainable: Performance goals shall be controllable within the work scope of the examinee, and attainable through making necessary efforts; l Relevant: Performance goals shall be highly relevant to the work of the examinees; l Time bound: Performance goals shall have specific time limit, i.e., there must be specific results in a specified period, normally the examination cycle. Alternatively, considering the characteristics of positions set the more detailed time frame within the examination cycle.10.2 Timely renewal: Performance goals shall be changeable. They shall be adjusted in a timely way when any change of work focu