M's Performance Management System Design

Performance management system designing is the precondition and core of setting up human resource management system of modern enterprises. How to design and set up a performance system, which is scientific and suitable to China and meets the requirement of tactic development for the enterprises, is a completely new and important task to the enterprises in China, especially for the state-owned enterprises. It is a juncture for the enterprise's growth to establish a scientific performance management system based on the enterprise's practical situation to improve its competition ability, especially for some little corporations changed from state-owned enterprises. Many medium-sized and small enterprises have their further development affected greatly due to the lack of a system of human resource management to support rapid business development, especially an effective system of performance management, as well as much attention paid to their sales income and development speed. Therefore it is an urgent and important work for such enterprises to establish a suitable performance management system. This paper probes the performance management system of M Company. It introduces the two methods that have been successfully utilized in overseas business circles, i.e., The Balanced Scorecard (BSC) and the Key Performance Indicator (KPI), and synthesizes the two methods for constructing the performance indicator system on enterprise level, division level and individual level on the basis of the company's strategies, which are fit for long term development of the company, in an effort to solve the conflict between development speed and development quality. The paper has four sections. The first section relates to the fundamental theories on the performance management system which...