Performance Management Of Private Enterprises In China Problems And Solutions

With its growing impact on social and economic life, private enterprise has gradually developed to be a very important component and driving force of economic development during the three decades of China's reform and opening up. Private enterprise is playing a more and more important role in keeping prosperity of economic, maintaining security and stability of society and supplying ample job opportunities. However, there are a lot of drawbacks and shortcomings inherent which mainly reflect in internal management, especially in performance management. With the continuous development of scale and scientific management system, entrepreneurs from private enterprise paid more attention to human resource management. The performance management as a core of human resource management is not only a main tool to improve employees'and organizational performance, but also an effective guarantee for the implementation of organizational strategy. Without the performance management, even the best strategy is impossible to be implemented. Performance management is an essential supporting mechanism for effective management, decision-making and control of the organization. And scientific and reasonable performance management systems will greatly enhance the ability of continuous development of private enterprises, which is particularly important to private enterprises. But it is also the relatively weak link of private enterprises management now. Therefore, this paper firstly analyzed the main problems in performance management of private companies, then proposed corresponding solutions in response to the issues. We hope to be helpful to the development of private companies in our country.Firstly, this paper gave a brief introduction of the theory of performance management both at home and abroad, including all the features and the four important parts of performance management. Secondly, this paper analyzed the status and problems of private enterprises performance management through a research on the characteristics of development of private enterprises and proposed suggestions of improvement, which included establishing the strategic direction of performance management system, constructing performance indicator system, improving the performance management system and using the results of performance evaluation. I hope that our analysis on the performance management system and suggestions to improve it will contribute to the development of private companies in our country.