Study On The Performance Appraisal Of Top Executive In Enterprise

In recent years,the problem of top executive's restraint and incitement has attracted people's attention. Many enterprises try to set up top executive's short-term incentive plan and long-term incentive plan,such as ESO. They want to force top executive's behavior support the benefit of enterprise. But the realizement of compensation plan bases on the operation of performance appraisal system. Only appraises performance fairly,top executive can get the right pay. This is the significance of executive's performance appraisal.This thesis firstly reviews traditional performance appraisal system and makes an inquiry into its advantages and disadvantages. Secondly it discusses the new development of performance appraisal. Lastly it put forward a practical and effective system based on present situation. This new system includes three parts,setting up appraisal indexes,deciding scope of goals and designing compensation based on appraisal.There are two ways of appraising executive's performance. One is based on results,the other is based on behavior. But the more reasonable pattern is mixing up two ways,because it can appraise both executive's performance and his or her contribution to core competition of enterprise.This thesis provides references for enterprises which want to set up executive performance appraisal system and executive compensation system. It has practical value in broaden enterprise's horizons.