Study On General Scheme Of Jihua Company's Performance Appraisal System Based On EVA

The establishment of total performance assessment is a significant strategic plan of deepening the reform of State-owned enterprises, it makes sure to take responsibility for the national asset of contributor, guard the rights and interests of the owner, implement the responsibility of preserving or increasing State-owned asset, it can also advance the administration as an important method. Furthermore, it can ensure the operation and management workable for all levels of officials and basic units, passing the pressure on all positions, and it is a great step that has the stimulation and restraint cover all staff. So it will take an extreme implication for improving quality, uniting strength, promoting common development, realizing the enterprises' goal.The performance appraisal which is based on the added value of enterprises economic assessment can avoid pursuing increase rate and enterprise scale, but focus on the wealth increasing. the drawbacks caused by profit-maximizing, and Ignoring the cost of capital and capital efficiency because of blindly pursuit of growth and expansion of business scale can be avoid. The performance appraisal also can control operational risk and promote economic performance, delivery stress step-by-step. The concept of value creation and capital costs down to awareness of grass-roots . A method of Key Performance Indicator(KPI), the Balanced Score Card(BSC) and 360-degree evaluation model to complete performance appraisal , the purpose of which is to more standardize the appraisal process ,to more scientific assess results and to more target improvements should result to Practical problems and to Promote the further development of enterprises.Presently, the problems of Jilin Petrochemical Industrial Company are as following: the distribution of payment has an equalization tendency to an extent; although the protection is enough, the stimulation still insufficient for key position and major staff. The system of performance assessment has not yet completed; The responsibility chain doesn't cover all around; The target of performance and strategy is not even tight; The development and application of assessment results not deepen enough; The work has to be further enhanced. Analyzing these problems, this paper designed a performance management program based on EVA theory. The system of total performance assessment should be built base on the performance contract, connection between up and down, attaching equal importance to stimulation and restraint, it can cover all level administrative staff, professionals, operating and servicing personnel. It can match appropriately by operating performance assessment and the system of remuneration incentives, the practical problem can be solved effectively, which plays a leading role at enterprises' development strategy and realizing the target of driving performance.Smoothly forwarding performance management, perfecting incentive and restraint mechanism has an exciting internal function and competitive strength for external, strengthening exciting and guidance function, and forming the reasonable and orderly patterns of labor cost controlling, which is full implementation of the ultimate goal of performance appraisal.