Performance Appraisal System Design Of Functional Department Under The Guide Of EVA Idea

If we take the performance appraisal target as the main due, the current performance appraisal will be simply divided into 3 kinds of patterns, financial, balance and value. These patterns have their respective strong & weak points: the financial pattern possesses fairly high objectiveness and comparativeness, however it' s also rather short-term, what' s more, it' 11 make no sense to do performance appraisal system research from some certain respect as the business management has reached the strategy management stage.The balance score card(BSC) has remedied the defect of the financial pattern, it sets the company a strategy target in 4 respects, financial, clients, interior process and innovation and becomes the cornerstone of the company strategy execution. Yet the balance score card normally includes ten to twenty or even more appraisal targets which bring the management party none base to make decision among multi-targets because that shows no definite define on the relationship among all the targets.EVA resolves this through a magic formula.Nevertheless, EVA is not a perfect appraisal system. With regard to the properties, EVA is still some sort to enterprise performance appraisal target which is based on the accounting system,accordingly it inevitably contains sorts of defects of financial targets, also it can' t provide the process information in the respects of clients, staff, innovation, and so on, which is not helpful on the supervision or control during the management process since EVA target is rather simple and rational.EVA appraisal target lays particular emphasis on the financial strategy and ignored the appraisal to the marketing strategy, Human Resource strategy and other management channels, accordingly it can' t tell detailed unfinancial strategy achievement motives and the way and measures for resolving these problems.The break down of finance responsibility only goes to a certain extent and it' s hard to reach the subordinate common staff. Besides it' s not easy to calculate or differentiate to the effort extent that the staff make to improve EVA.The above mentioned several points has embodied a concentrated reflection of EVA target' s fatal weakness which breaking down and executing in functional department.For the above-mentioned reason, under the guide of EVA idea and the collective wisdom of above three patterns, this thesis has designed the performance appraisal system that specializes in resolving the above-mentioned problems in functional department based on cases analysis.