The Study Of Core Competence Oriented Performance Evaluation System

As one management method adapt to specific economic environment, performance evaluation should innovate correspondingly when the economic environment and the requirement of enterprise management changed. Human is on the way from industry economy to knowledge economy, which is a new stage of economic development after agriculture economy and industry economy. Knowledge economy has a key productiveelement which is different from ever productive element before——knowledge.Knowledge provides competitive advantage far more than financial capital and material capital does. Intellectual capital is just the appearance of knowledge element of the firm. Therefore, in order to adjust the change of economic environment and the requirement of strategic management, it's necessary to take intellectual capital in performance evaluation system and build up core competence oriented performance evaluation system.On the first hand, this paper studied the theoretical basis of core competence oriented performance evaluation system. As expansion and innovation to traditional performance evaluation, we think its special theoretical basis is resource-based theory of firm and capability-based theory of firm except for principal-agent theory. The principal-agent theory provided theoretical basis for us to fix corpus, nonego and evaluation target of performance evaluation of the firm. The resource-based view of firm thought that strategic resource decided enduring competitive advantage of the firm. The capability-based theory of firm further thought that core capability hided in the back of resource decided enduring competitive advantage of the firm. They also emphasized to focus on core competence for the firm. Therefore, performance evaluation should focus on core competence.On the base of theoretical basis analysis, we explored some basic theoretical problems of core competence oriented performance evaluation system, such as intention, characteristic and framework. We think that core competence oriented performance evaluation system is an evaluation system giving synthetic evaluation to performance ofthe firm combined with incentive system which is surrounding promoting core competence of the firm, adopting evaluation indicator system including financial capital and intellectual capital, comparing set standard, using some evaluation method. It's individual and dynamic. The framework of the core competence oriented performance evaluation system is a duo-dimension system started from strategic target of the firm combined horizontal side and vertical side. According to the administrative levels, the vertical side divided the evaluation from the owner to top administration, from top administration to middle administration, from middle administration to basic administration. The horizontal side is consist of financial capital and intellectual capital, as financial capital, human capital, organizational capital and relational capital in detail.After building up the framework, on the base of agent relation between owner of the firm and top administration which is the most important and the most representative agent relation of the firm, we further set up the evaluation index and corresponding evaluation method.The ultimate purpose of researching core competence oriented performance evaluation system is to apply it into practice. This paper takes a communication manufacture enterprise as example to illustrate how to use this evaluation system. Surrounding the strategic management target, adopting concrete evaluation indicators, comparing set standard, we evaluated the performance of top administration. We further illustrated and analyzed the evaluation result.