BMI sere [oonnet er rom fret shew cata Tl mee O ® iw 2 o-n- 7; nee i) Qe Geemme T] Of) arms tha sige SOA ay HEB gay IR wee aioe an . ‘SYNOPSIS Li Ma is the chief executive officer (CEO). of the Beijing Aircraft Maintenance and Engineering Corporation (Ameco), a joint venture between Air China and Deutsche Lufthansa AG. In 2010, Ma introduced to the company a new monthly evaluation program that was met with challenges and difficulties s both before and after its implementation. The Direct Control of Personnel Cost (DCPC) monthly evaluation = program used a combination of key financial and operational indicators from different production units, as well as labour cost control indicators, to become a critical management tool for performance appraisals. o ‘The program was gradually realized by comparing budgetary and actual figures. However, the new performance appraisal system was soon met with obstacles and challenges due to changes in the external 8 environment, product updates, and internal innovations. In January 2015, Ma was deliberating on the challenges facing the company. » LEARNING OBJECTIVES This case uses the problems and challenges faced by Ameco during the implementation of the DCPC ‘monthly performance evaluation program as the main line of discussion. Through a detailed case analysis, students will be able to achieve the following objectives: Understand the meaning of performance management for the development of a company. Obtain an in-depth understanding of the performance management process and clarify the differences between performance management and performance appraisals. ns nerfirrmance evaluation methods. hased on work results, bo aa ' 8 Master va