Performance Evaluation System For SMEs

As a strategically important part of China's economy,SMEs have the biggest feature that close combination of ownership and management. Therefore, the issue of employee motivation is more important. On the other hand, given the human resources development of SEMs lagged behind, the enthusiasm of employees suffered a serious setback, resulting in the loss of talented employees and even affecting the normal operation. So SMEs should treat the issue of employee motivation seriously. Employee motivation certainly needs a good performance evaluation system. However, due to the characteristics of SMEs and their economic and social environment, the performance evaluation of SMEs must not be a mechanical copy of large enterprises'. In a word, it's practically significant to build the performance system for SMEs.Based on previous studies, this paper has analyzed the traditional financial performance evaluation model, EVA model and BSC model, and found out BSC has advantages in the performance evaluation of small and medium sized garment enterprises. Researching on status ,development trends and the performance evaluation of small and medium sized garment enterprises in Ningbo, this paper has integrated BSC theory and KPI theory, analyzed each critical success factors, which have been classified according to four different dimensions that financial, stakeholders, internal processes and learning and growth .Then the paper has designed indexes for these factors and used AHP to determine the weight of each index .With all the effort, this paper has built KPI System based on BSC, which can help the enterprises motivate employees, promote employees and enterprises.Taking BS Garments Co., Ltd in Ningbo for example, this paper has built its KPI system based on BSC to evaluate the performance of BS Garments and analyzed the inadequacies of the core sectors to give recommendations to promote enterprise development. According to the level of performance and the contribution of the core departments, this paper has also designed simple incentive measures to mobilize the enthusiasm of the employees.