Design Of Performance Management System For Zhongsheng Biopharmaceutical Co.,Ltd

With the relationship between the competitive advantage and the factorof personnel in the modern enterprises becomes more and more closer, thedevelopment and management of human resources has been paid greatattention, by which the enterprise value and productivity will be raised. Theaim of management is to raise the enterprise performance, which is the core ofhuman resource management. Therefore, how to management personnel toraise performance becomes the focus in whole process. Managers think highlyof it and hope to manage their personnel and organization of all levelseffectively through a set of perfect performance management system that canassure successfully realization of the enterprise strategy.To administrators, they can well acknowledge each employee'scontribution or his shortcomings, if the personnel's performance can beevaluated effectively, which can provide the decision-making basis for humanresource management. A set of accurate criteria and procedures is thepremises of the performance evaluation, otherwise the inaccuracy will leadsto mistaken decision and the meaningless will waste money, energy and time.As we know, performance evaluation is not the aim of administration, it isonly a means to acquire a more outstanding achievement. Therefore, to set upa scientific performance management system and carry out effectively is animportant and difficult topic in human resource management.Zhongsheng Biopharmaceutical Co. Ltd. (hereafter refers to asZhongsheng) is a large state-owned company, which business is combinedwith research & development, production and distribution. It is one of theimportant bases to develop and produce high-tech prophylactic, therapeuticaland diagnostic biologics in China, which sales income can meet about 170million yuan year-by-year. Reconstructed from the traditional state-ownedenterprises, the management system of Zhongsheng becomes outdated andthere brings many problems in human resource management. The evaluationin morality, ability, duty and achievement of the performance managementremains subjective, simple and qualitative. Therefore, establishing andperfecting the performance management turns much important forZhongsheng to become more competitive and play good roles in marketingeconomy.Performance management of the modern enterprise is a dynamic process,which takes the enterprise strategic target as the direction and takescontinually raising performance of the organization, promoting employee'sability and organization's core ability as the target. The key performanceindicators (KPI) and balanced scorecard (BSC) provide the effective methodsfor the establishment and implement of the performance management system.They also can make enterprises to establish the strategy according to theirlong-term plans and value, turn the strategic target into the concrete programthat can be operated, and make the targets for all departments and Individuals.Both of them have successful cases; the BSC is a set of performancemanagement system that combined performance management with strategymanagement, which is paid more attention and prevailed in the last few years.But the application of BSC has certain difficulty. Firstly, it requires anenterprise to have a definite strategy; high level managers should have theabilities and wills of analyses and communications; the medium levelmanagers should have the abilities and the wills of innovation. Secondly, it isa large amount of work to carry out BSC. It takes a great deal of energy andtime to resolve it into each department, and find out the appropriate indicator.As a result, the indicator maybe amounts to 15-20. It is also not a light burdenwhile collecting data and evaluating. Thirdly, it is unfit for individuals, forwhich the performance indicator for should be easy understanding, operatingand managing, while KPI method only designed to have the result indicatorand lack of driven indicator. So this thesis designed a more perfectperformance management system for Zhongsheng Company combining therelated theories of the key performance indicator (KPI) and balancedscorecard (BSC).In this thesis, the author established the strategic target of the companywas set up through the PEST analysis and the SWOT analysis, resolved thestrategic target by the theory of BSC, and designed the indicator of eachdepartment and employee based on KPI. The BSC theory was inducted intodesigning introduced to the indicator design. The four dimensions of finance,customer, internal process and innovation and study were considered enough.It has built up a KPI system based on the strategy, broken the limitation of thetraditional indicator system simply with finance indicator. It makes theperformance management system support and serve the strategic target welland has stronger maneuverability to combine the responsibility of department...