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performance bonus proportion and score ranges are shown as below: (see Remuneration Management System of Li Ning Co., Ltd for details)LevelPerformance levelScore rangePerformance bonus proportionRemended proportion of employeesResults applicationA+ ExcellenceZ≥100120%510% Reference for promotion A Good95≤Z<100110%510% B Eligible 75≤Z<95100%7080% C Ineligible Z<75075%(inclusive)linear calculation510% Performance Improvement Plan(PIP) or change positionsEmployees whose performance results are affected due to being late, early leave, absence from work or disciplinary violation, or those who bring serious damages or loss to the pany, certain proportion (up to 100%) of performance bonus will be withdrawn depending on the seriousness. For details see the relevant rewards and punishment system. Remuneration adjustment whose performance results keep good continuously deserves much attention when remuneration is adjusted. whose performance results are level C will not deserve a pay rise within one year until performance is obviously improved. Training and developmentPerformance assessment results and leadership/professional skills assessment results are the main basis for working out a training plan. High potential employees with continuous good performance deserve much attention for training and development and will be listed as key talents. Development plan will be made for them to enable them to have more opportunities to achieve career development.Article 23 Disp。 Timeliness: Performance assessment is the prehensive assessment of work results pleted during the assessment cycle, and thus the previous behaviors should not be included in the assessment results or one or two remarkable achievements taken over recent period should not be able to stand for those pleted during the whole assessment period。 Communication and feedback principle: On the basis of full munication, examiners and examinees work out assessment period and conduct the assessment, and give timely feedback to the examinees. Meanwhile, listen to the opinions of the examinees on assessment results and correct the problems (if any) in the results。 STAR principle: Give feedback on assessment results using STAR。 for those who fail to achieve the preset goals, put forward suggestions for improvement。 IDP review: Examiners and examinees municate with each other, reviewing the implementation of IDP set forth at the beginning。 Performance bonus calculation: Human Resources Center determines the performance bonus given to the examinee for the first half year based on the examinee performance assessment results.Article 18 Ability Potential Assessment Ability assessment cycle: Half a year is an assessment cycle. The specific time for ability assessment is decided by managers depending on the needs of the current work and announced when issuing the document on performance assessment. assessment methods: When interviewing with employees, the examiner evaluates examinee’s leadership petency and professional skills, identify strong and weak points, propose suggestions for improvement, coach to work out improvement plan and help employees raise ability quality.Article 19 Individual Development Plan Review Cycle of IDP: Work out and evaluate IDP once a year。 Performance assessment: After interviewing, an examiner scores the performance pleted by the examinee based on interview results and the agreement, and inputs the information into assessment system。 Draft the performance indicators of next cycle: Based on work focuses and the feedback from the supervisor ordinarily, the examinee drafts the performance indicators for next cycle。 KDI) assessment cycle: The cycle is half a year, ., in July conduct the first half year of performance assessment, and in Jan next year conduct the previous year of performance assessment. The assessment cycle for employees in some sales areas should be associated with monthly and quarterly work and is to be decided flexibly by each area. Performance assessment process: Issuing documents: Human Resources Center officially issues documents on performance assessment, specifying the schedules, requirements and relevant matters。 Potential assessment: Potential reflects the possibilities of an employee developing towards higher level or other directions. It is set in Top 10 Factors for Evaluating Leadership Potential in Li Ning.For specification to fill in, please refer to other relevant regulation. Article 12 Setting of Individual Development PlanIndividual Development Plan is filled in by taking into account work requirements, employee’s current ability and willingness for individual development. It is drafted by the examinee. When interviewing an examinee, the examiner coaches the examinee, providing ability assessment opinions and development suggestions. For specification to fill in, please refer to other relevant regulation. Chapter 4 Allround Performance Management Process Coaching and CommunicationArticle 13 Purpose of Performance Process Coaching and CommunicationProcess coaching and munication refers to look for solutions through tracking the pletion of performance goals, following up progress and finding difficulties and problems. It supports and coaches the examinee and integrates resources in order to ensure the correct work direction and finishing work within the time limit.。 Principle of latitudinal coordination: Breakdown of indicators shall also take into account the latitudinal coordination between systems and departments. Communication meeting shall be organized and held to determine the core indicators of each department to guarantee the latitudinal coordination and collaboration. Principle of keeping certain weight: The weight of a single indicator shall not be lower than 5% and number of indicators shall not be more than 10 to maintain the attention of exa