Enterprise Performance Evaluation Of A New Theory

Enterprise performance appraisal is not only an outcome of market economy development on certain stage, but also a scientific method and an effective tool to supervise the enterprises for nations with mature market economy. It is the direction for modern enterprise management to learn successful experience of enterprise management from foreign market economy and apply enterprise performance appraisal for supervising and controlling the enterprises. As on\e of the methods of modern enterprise management, enterprise performance appraisal is enduring the challenges of rapidly developing economy and constantly updating enterprise management mode. It has received wider attention and deeper discussion. As for the work of enterprise performance appraisal in our country, how to follow the change of our economic and social environment and the trend of internationalization and how to establish a system of performance appraisal that fits our economic development plays an especially important operation significance for enhancing the health of our enterprises, improving the management level, sharpening the enterprise competitiveness and further improving the economic growth quality.Every application study has its own theoretic base. Beginning with the concept and principle of enterprise performance appraisal, this article will explore the principle followed by the appraisal itself, form a theoretic framework for enterprise performance appraisal, and provide theoretic support for establishment of the system of enterprise performance appraisal on the base of economic theory research. The article will start with theory of entrustment and agency, theory of shareholders, theory of strategic management, theory of organized conduct, theory of systematic management, theory of flexibility in tactics, theory of general budget, theory of encouragement, and, deeply discuss the theoretic contents of production, formation, perfection and application of the system of enterprise performance appraisal.The idea of enterprise performance appraisal is the base of appraisal orientation. In order to fully express the orientation function of enterprise performance appraisal, the basic idea of appraisal must be built. The author believes that leading the enterprises to a right development direction and seeking for strategic and sustainable development of enterprises should be the objective of enterprise performance appraisal. According to the reality of our economic development and requirement of enterprise management, orientated with value judgment, establishing an appraisal system with the core of maximizing the enterprise value should be the development direction of enterprise performance appraisal.On the base of the theory of shareholders, the author believes that maximizing the enterprise value should embody maximizing the value of various appraised shareholders, that is, to maximize the value of the owners (shareholders), guarantee the creditors' interests, safeguard the personnel's interests, protect the public benefits of the government and make social contribution by the enterprise. As long as the goal of various interest bodies gets fully expressed, the maximum value of the enterprise can be realized. This article takes the first time to propose a value performance theory of "Five into One" on the base of the theory of shareholders, establish a system of enterprise performance appraisal with the core of maximizing the enterprise value, and then, reach the goal that the performance appraisal serves various shareholders including the enterprise investors.The method of forming a new-style system of enterprise performance appraisal should be analyzed according to the idea of establishing a new-style system of enterprise performance appraisal. The author believes that implementing the strategies of enterprise development and sharpening the enterprise competitiveness are not necessarily synchronous with improving the short-term financial indexes of the enterprise. Only when the appraisal is carried out with the combination of financial indexes and non-financial indexes, can the operation performance of the enterprise be generally and systematically appraised, that is to say, the system will take maximizing the enterprise value as its essential principle. As for the design of detailed financial indexes, the system will absorb the reasonable kernel of "Financial indexes first" in Dubang Analysis Method, take the supplementary role of non-financial indexes into consideration, and, pay attention to the common interests of the shareholders but not the special interests of certain group. It will also combine the quantitative method and qualitative indexes and mutually make up between the objective standards and subjective standards. Such a system of enterprise performance appraisal will be established with a thinking manner of balance scoring card, so as to carry out an all-round, multi-angles and open judgment on enterprise performance.The final goal of establishing and perfecting the system is to serve for enterprise management and economic construction. A new-style system of enterprise performance appraisal should express its role in the following ways: The 1^st one is to serve for the government while indirectly managing state-owned enterprises, the 2^nd one is to serve for the investors of the enterprises, the 3^rd one is to serve for the creditors of the enterprises, the 4^th one is to serve for encouraging the operators of the enterprises, the 5^th one is to serve for strengthening management and improving economic profits for the operators of the enterprises, the 6^th one is to serve for meeting the goal to maximize the enterprise value, and the 7^th one is to serve for establishing the system of social credit.Enterprise performance appraisal is a discipline with constantly development. Nowadays, the enterprise operation is facing more and more challenges and impacts under the circumstances that the economic globalization, trade liberalization and information networking is developing rapidly, the market demand is changing quickly, technical innovation is accelerated constantly, the product lifecycle is becoming shortened unceasingly and the market competition is becoming drastic increasingly. Correspondently, the system of enterprise performance appraisal must be constantly developed and perfected. Further exploration should be carried out on establishing a strategic system of enterprise performance appraisal, so as to meet the requirement of constantly developing economic society and constantly innovated enterprise management.