Practical Analysis And Demonstration Of Performance Appraisal As Input-Output Theory

All the investors, enterprisers and public management organizations pay close attention to how to appraise the performance of a modern enterprise. Now the theory of Chili and Khond Walla is the foundation of our performance appraisal forms. The core of the method is financial analysis. The approach is giving way to EVA approach. EVA is abbreviation of Economic Value Added. The approach is similar to the Input-Output theory that wan the Nobel Prize in 1973.So using Input-Output table to appraise the performance of an enterprise is an advanced approach in performance appraisal.We choose four auto manufactures in this practical analysis and demonstration. Using the Input-Output table, we draft the analysis system for our analysis and demonstration and raise the proposal to the enterprises and local government.At the beginning of our thesis, we introduce EVA approach and Input-Output theory. Using the Input-Output table, we analyze the Value- added, Value-added rates, the direct input coefficients and other main economic indicators of the four auto manufactures. Then we discuss the advantages and disadvantages of the four manufactures, the macro environment and the tendency of auto industry. At last, we raise the proposal to the enterprises and local government on how to achieve win-win situation in the future.In the thesis, we announce the similarity between the EVA approach and Input-Output theory. We believe that it is effective for appraising the performance of an enterprise with value-added and value-added rate. We also believe that we can compare the enterprises in the same industry with Matrix of Direct Input Coefficients and Matrix of Cumulative Input Coefficients. In our practical analysis and demonstration, we analyze the main expenses of the enterprises linking with their value-added. It is the most important that we put forward an algorithm on the ability of the enterprise driving the local economy and supplying posts to the local government and we work out the result. All of this is unique and we cannot find them in the now available documentation.In conclusion, this approach can give a new choice for performance appraisal. If we appraise the performance of an enterprise with Input-Output theory, we can comprehend the situation of the enterprise and its contribution to local government. We can also put forward some advice to the public.