"Key Performance Indicator" appraisal method.
It is one of the methods of corporate performance appraisal. The advantage of this method is that the criteria are more distinct and easy to make an assessment. Its disadvantage is that it is difficult to set standards for simple work, lack of certain quantitative.
The production process of an enterprise is a process in which laborers use labor tools to change the object of labor. Among the three basic elements of enterprise production (labor force, labor materials, labor objects), labor force is the most important factor. Correct statistics, analysis and prediction of labor productivity indicators are of great significance for enterprises to organize production in an orderly manner and fully develop and reasonably utilize human resources.
The advantage of this method is that the standard is more distinct and easy to make an assessment. Its disadvantage is that it is difficult to set standards for simple work; it lacks a certain quantitative nature; the performance indicators are only some of the key indicators, and the lack of a certain assessment of other contents should be duly noted.
The KPI method is in line with an important management principle - "the principle of two or eight". In the value creation process of an enterprise, there is a "20/80" law, that is, 20% of the key personnel to create 80% of the value of the enterprise.
And in every employee, the "20/80 principle" also applies, i.e., 80% of the work task is completed by 20% of the key behaviors. Therefore, it is necessary to seize 20% of the key behaviors, to analyze and measure them, so that you can seize the center of gravity of performance evaluation.