The Application of 360 +KPI Performance Evaluation Model in Chinese and Western Culture Background

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1 The Application of 360 +KPI Performance Evaluation Model in Chinese and Western Culture Background Wei Tan The Institute of Public Affairs, Chongqing Three Gorges University The No.780 of ShaLong street, WanZhou, Chongqing, China Abstract-The performance evaluation is an important human resource management means in many enterprises, and it is the basis for adjusting salary, bonuses, position down and up and training planning. Because of advanced concepts and good use effect, the two methods of 360 performance evaluation and key performance indicators (KPI) are more and more used in Chinese and western organizations. Based on the analysis of 360 +KPI performance evaluation model, this paper takes the performance evaluation of middle-level cadres in Chinese enterprise as an example, and explains how to use 360 +KPI performance evaluation model for evaluation. At last, for the Chinese and western different culture background, it explores the application of 360 +KPI evaluation model, and gets the conclusion that the enterprise should be suitable for the enterprise culture, and in the long evaluation process, the enterprise should gradually optimize the conservative, closed traditional enterprise culture. Keywords- The Performance Evaluation; 360 +KPI; The Chinese And Western Culture I. INTRODUCTION In the human resource management means, the performance evaluation is an important factor in many enterprises, and it is the basis for adjusting salary, bonuses, position down up and training planning. For the advanced concepts and good use effect, the two methods of performance evaluation and key performance indicators (KPI) are more and more used in Chinese and western organizations. 360 is the 360-degree feed-back and also called the full view assessment or more reviewers assessment. The reviewers are superior, colleagues, junior, customers and themselves, from many angles to get the comprehensive evaluation, again through the feedback program, to change behavior and improve the performance. The 360 performance evaluation method has the following advanced concept: all-round and multi-angle; promote the personal development; pay attention to the information feedback and two-way communication; pursue the minimum error [1]. KPI is Key Performance Index, it refers to whenever making the staff assessment projects, not to put all their work contents to examination contents, but to choose some keys factors which close to the organizational goals as the assessment projects, thus to make their workers more focus on goals and direction, and it also can develop more performance evaluation for realizing the goal of the organization. The KPI method is effective, because it is in line with principle : the 80% tasks are finished by 20% employees; therefore, the enterprise gasps the 20% key behaviors which mean to get the centre of performance evaluation [2]. The 360 +KPI performance evaluation model refers to comprehensively use of 360 o performance evaluation and key performance indicators, mutually infiltrate their advanced concepts, and give full play of their advantages which gains the mutual supplement [3]. This 360 +KPI performance evaluation model sets the quantitative and qualitative evaluation in an organic whole, melts comprehensive concepts, promotes the development idea, principle, and reflects the competence characteristics, strategic guidance and so on. II. THE NECESSITY AND FEASIBILITY OF 360 +KPI PERFORMANCE EVALUATION MODEL A. The Necessity of Combining 360 and KPI The effect of using alone the 360 performance evaluation is very small. The shortcomings of 360 performance evaluation decide this method should not be used alone. The main disadvantages are: the first, it belongs to the subjective assessment method, the human factors are more, and the qualitative evaluation has greater proportion, the quantitative performance assessment is less; second, involving a great quantity of evaluation scope, deal with more data, so the cost of assessment is very high; third, using undeserved may cause tension in the organization, and damp down the members work enthusiasm; fourth, it is mainly a kind of examination concept, and focuses on who to test and how to test, and neglects the evaluation index system [4]. Only KPI method does not constitute an assessment model. The performance evaluation method cannot independently use

2 KPI, it mainly because: the KPI method only makes clear test what, which refers to use what indicators to assessment, not makes clear who is the assessment, and how to carry on the evaluation, so it does not be a complete assessment model; second, the determination of KPI is the highest, layer decomposition, and it is not enough scientific set; third, KPI method is objective assessment method, and some indicators are unable to quantitative, so it must combine the qualitative evaluation methods. B. The Feasibility of Combining 360 and KPI The two methods of 360 and KPI could be combined, because they are complementary to each other. The properties complementary. The 360 performance evaluation belongs to subjective assessment method, but the KPI method is objective, both just complementary. The functions complementary. The 360 performance evaluation focuses on who to test and how to test, that is to say, it determines the assessments and angle, but the KPI method focuses on test what, which is to determine the examination index method. Putting them together just can form a complete assessment model [5]. III. THE APPLICATION OF 360 +KPI PERFORMANCE EVALUATION MODEL TAKING THE PERFORMANCE EVALUATION OF MIDDLE- LEVEL CADRES IN CHINESE ENTERPRISE AS AN EXAMPLE In the application of 360 +KPI performance evaluation model, how to fix the assessed, determine the key performance evaluation contents and extract KPI are the core links. The following takes the performance evaluation of middle-level cadres in Chinese enterprise as an example, from the above three core links specifically explains how to use 360 +KPI performance evaluation model. A. Fix the Assessment The key performance indicators (KPI) which are extracted from 360 +KPI performance evaluation model will be divided into the quantitative indexs and qualitative indexs. According to the two kinds of indicators, it needs different assessments to give comments respectively. Generally speaking, it needs to form a special jury to examine the quantitative indexs, and for the qualitative indexes, it needs to take 360 o performance examination way to appraisal [6]. The assessments of quantitative indexes. For the quantitative indexs, it has the objectively quantified standard, so it is easy to give the discrimination, and according to the standard, it can be directly evaluated by the inspection work leading group. It can also set up the special jury to give the appraisal for the quantitative indexs. The assessments of qualitative indexes. The qualitative indexs can be evaluated with the 360 o method, the middle-level cadres in the enterprise are respectively evaluated by the following elements: the superior, direct subordinates, the assessments at the same level, the customers of the reviewed and the reviewed themselves (see Figure 1). 360 o 360 o Fig.1 The assessments of 360 +KPI performance evaluation model B. Be Sure of the KPI Contents From the years of practice experience and theory research, the main contents of assessment for the middle-level cadres in China are the five aspects of morality, ability, diligent, performance and clean. Basing on principle with the KPI method to look closely the five examination contents, the key examination contents are for morality and performance. The following reasons: First, from the broad sense, the morality should include clean. Because a person of honest and upright are the important

3 contents of morality character, in constructing the performance evaluation system, the clean as the category of morality. This can be used by the formula (1). Morality (general) = morality (special) + clean (1) Second, the three indexs of ability, work and performance are closely linked. Ability is the comprehensive quality of cadres, the size of ability directly reflects the size of potential performance; diligent is the cadres working attitude, which reflects the will of the cadres to make performance level. Ability and diligent are two important dimensions for performance; the relationship can be used by the formula (2). Performance= a* ability * diligent +u (2) The coefficient which represents the influence degree to performance; u-random perturbation terms which represent the sum of other factors influence the performance. C. Extracting the KPI The KPI evaluation of middle-level cadres can be divided into 3 levels in an enterprise, and it decomposes the strategic targets, and 3 levels indexes are for the enterprise, departments and post. From the mission of the enterprise, vision and the strategic target, according to the structure of organization, and through the work output analysis, it gradually extracts KPI at all levels. With the specific target decomposition method, the extracted steps can be showed by the figure 2. Fig. 2 Extracting the KPI with the target decomposition method (Taking the performance evaluation of middle-level cadres in Chinese enterprise as an example) Be sure of the strategic goals. Determine the strategic goals of an enterprise should make clear its mission and vision. Analyze the enterprise s opportunities,threats, and internal advantage and disadvantage with the SWOT analysis method, thus to be make a reasonable positioning. The enterprise s long-term goals are divided into several progress goals; every progress goal is a strategic stage. Be sure of the department goals and post goals. The strategic goals are divided into several department goals. Making clear the department goals, according to the middle-level cadres roles and responsibilities to determine the goal posts. Post goals are the completed basic task for each middle-level cadres in a certain period. Extracting the KPI. After being sure of the strategic goals, the department goals and post goals, then it can be according to the below steps extracting the KPI: first, work output analysis; second, the business value analysis, to determine the key performance field; third, the key driving factors analysis, extracting the key performance indicators. To sum up, the application of 360 performance evaluation model can be expressed by the figure 3:

4 Fig. 3 The schemes of 360 +KPI Performance evaluation model IV. THE APPLICATION DIFFERENCES OF 360 +KPI MODEL IN CHINESE AND WESTERN CULTURE BACKGROUND The different values of Chinese and western culture which leads to the different effect of implementing 360 +KPI model, and the fundamental difference between them is that individualism and collectivism. In western,it emphasizes the capacity, and the soft management ways are hard to get effect; instead, in the east, people pay attention to harmony, order, love and etiquette etc, enterprises often follow all intangible orders, the pursuit of stability. A. The Differences of Rank idea and the Equality The United States belongs to the low right distance country, and the employees can be equal to participate into the performance evaluation of their supervisors and colleagues, and not by the rights and authoritative interference. It emphasizes all equal, no special citizens, and the power distance is lesser. In this special environment, the assessment results are to be more credible, the 360 +KPI performance evaluation model can succeed in this country. China is the country of right distance, and it has more level structure, the employees highly respect the superior and authority, or in some cases, they produce fear mood. It also makes most of the leaders of the enterprise can also be difficult to accept supervision and criticism from the lower levels. The Chinese traditional culture has the level concept which makes the employees get used to fill the evaluation from the superior. Out of the leadership authority or other concerns, the evaluation for superior usually is not objective. Therefore, the existence of power and right distance in Chinese enterprise make it difficult to be open channels of communication, and it forms a major challenges to 360 +KPI performance evaluation model. B. The Employees Attitude Difference in High Situation Culture and low Situation Culture The United States belongs to low situation culture, the managers think the most important are influencing others, building relationships, listening to others and showing the ability to adapt. The implementation of 360 +KPI performance evaluation model has its advantage under this culture background, and the communication among staff is direct and clear. The staffs are good at exploring the authenticity of the facts as the information source for improving the personal ability; meanwhile, it is a good way to success. China belongs to the high situation culture, and the character is implicative, the staffs are not like the westerners who are willing to accept the opinions from others. The 360 +KPI performance evaluation model is as a private tool which a person likes by himself. The managers pay attention to the harmonious way in the workplace, not like the Americans talking directly with freely, in this culture atmosphere. So the effect of 360 +KPI performance evaluation model will be a discount rate. C. The Differences of Individualism and Collectivism The American enterprises separate work and life, the relationship between superior and lower, or colleagues are seen as purely business relations and the requirements of task, so the employees in western enterprises to 360 +KPI performance evaluation model are from the point of view, and the psychological is easy to accept. The Chinese culture emphasizes the team spirit, the pursuit of harmonious interpersonal relationship, so the employees in Chinese enterprise to 360 +KPI performance evaluation model are from the point of view of relationship, so the relations have a large proportion in the performance assessment. Especially when the employees know the ultimate aim of 360 +KPI model is to give feedback to the reviewed, they will pay more attention to improve interpersonal relationship, not improve their performance assessment. This result will blow the employees who keep seriously work, form the whole harmonious organization without performance phenomenon, lead to the common evaluation deviation

5 D. The Differences of Understanding the Work Nature In western culture, the staffs consider the work as the fun of life, and will work hard to realize the self, and hope their contribution to the enterprise can through an effective performance evaluation system to reflect. In Chinese culture, the employees consider work as a way of making a living, as the needs hierarchy theory, they must firstly meet the life need, and then they can rise to the higher levels. The different understanding of the work nature which leads to a different psychological for the implementation of 360 +KPI performance evaluation model. Even if the different assessments have the same understanding for the reviewer s performance, but because their different feelings and experience, the result evaluation will be not the same. V. CONCLUSION For any Chinese and western enterprises, a good performance evaluation model is very important. Because of advanced concepts and good use effect, the two methods of 360 performance evaluation and key performance indicators (KPI) are more and more used in Chinese and western organizations. Based on the analysis of 360 and KPI methods, this paper puts forward the 360 +KPI performance evaluation model, and takes the performance evaluation of middle-level cadres in Chinese enterprise as an example, and explains how to use 360 +KPI performance evaluation model for evaluation. But in Chinese and western culture differences, the implementation of 360 +KPI in Chinese enterprise will meet trap of culture shock, arbitrariness, the disappearance of members loyal, supervision failure, nepotism, etc. The results show, the 360 +KPI performance evaluation model advocates the enterprise culture of innovation, frank, open requirements, trust, competition, open and smooth communication and low power distance. Therefore, in the evaluation process of Chinese enterprises, they should be gradually optimized the relatively conservative and closed culture. REFERENCES [1] MAO Zhili. Differences Research of the 360-degree Feedback Based on Chinese and Western Culture Context. Science and Technology Management Research(in China), 2010(18), pp [2] LU Chang-qin, FANG Li-luo, LING Wen-quan. 360 Feedback and Its Uses for human resource management. Chinese Journal of Management Science(in China),2001(3), pp [3] LIU Guili, TONG Xiaozhe. The Optimization of 360-degree Feedback: the Combination of Management and Enterprise Life Cycle Assessment. Journal of Weifang Educational College (in China). 2011(2), pp [4] DENG Chengchao, TANG Dexiang, ZHANG Douxing. The Discussion of the Main Body s Choice Method about 360 Degree Achievements Appraisal System. Economic Problems (in China). 2011(7), pp [5] LIU Feifei, LI Xiaoyong, CHEN Jiancheng, WANG Xiang. On Performance Assessment of Middle-Level Managers: A Case Study of S Corporation. Modern Enterprise Management (in China). 2011(4), pp [6] WANG Zhongjiang. Build KPI index system of enterprise using the balanced scorecard thought. Population & Economics(in China), 2006(13), pp