Tsinghua Tong Fang Case

500 Words2 Pages
Evaluation of THTF’s control system: THTF mainly use result control method to create its control system. But the cons of just using result control are obvious. Result control transfers the risk to employees and it cannot show whether good actions have been taken. Also, because THTF is a high technology company, it has a lot of R&D expenses. Should the R&D department also be evaluated under result control method? THTF should increase usage of action control and people control and empower employees more especially in R&D departments. Evaluation of THTF’s performance evaluation system: 1) The performance evaluation system is based on a series of subjective judgments rather than quantified criteria, which result in a less objective assessment system. The lack of explicitness will impose risk on employees due to bias or favoritism. 2) The five criteria are weighted equally, which means the company value equally to the five different aspects. But the truth is, THTF values performance more than any other aspects. This will result in confusion when communicating to employees. THTF can emphasize less on obedience and discipline and weight more about performance and knowledge part, which can help employees understand what is expected of them. 3) The results of performance evaluation is not linked with THTF’s incentive system. THTF should have an explicit policy or criteria in determining the relationship between performance and reward. Evaluation of THTF’s incentive system: 1) The discretionary bonus is “almost guaranteed,” and this will make employees become less risk tolerant. Usually, the discretionary bonus is a form of variable pay, and it is the decision of employer on the amount, requirements and timing of the bonus. Employers shouldn’t disclose the bonus in ahead. But in THTF, it has already become an expectation of employees, or even a guaranteed part of

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