Shanxi Double Happiness Tyre Industrial Corp Ltd signed its 2012 annual performance contracts for all intermediate staff. The contracts specify key performance indicators and projects through a digital model.
The company formed a digital model for setting profit targets and pilot projects.
Taking into account sales revenues, manufacturing costs, operating expenses and sales taxes, the model analyzes a rewards structure to boost profits and reduce expenditures.
The model lists responsibilities and the profit contribution rate of employees to classify for their own profit targets.
The company outlined a performance appraisal panel to manage evaluations. According to a schedule, the panel will analyze individual performance indicators monthly and give corrective guidance. Staff with good performances will get rewarded.
They will be categorized into grades – outstanding, excellent, standard, to-be-improved, and disqualified – at the end of the year, which would determine their wage distribution for the13th month.
Department leaders have embarked on research indicators' on key projects from last year. An "indicator roadmap" has been developed, which would play a more positive role for the company.