Research On Performance Appraisal System Of Subsidiaries' Executives In Corporate Groups

With the constant enlargement of the scale and quantity of corporate groups, how to effectively control and encourage subsidiaries'excutives becomes one of the focuses of parent-subsidiary Corporation management through performance evaluation.The traditional studies on firm performance evaluation are mostly based on single enterprises, but the performance evaluation of subsidiaries'excutives has its uniqueness, so it is ncessary to structure the new theoretical system of performance evaluation of subsidiaries'excutives in order to guide Parent Corporation in charge of subsidiaries effectively and promote the sound development of the system of corporate groups.In corporate groups, there are the agency agreement relationship between the Parent Corporation and subsidiaries'excutives, and the problem the author will solute is that the goal and interests consist between them. In this study, it is structure the new theoretical system of performance evaluation of subsidiaries'excutives.The Balance Scorecard appraisals performance from four aspects: the Learning and Growth Perspective; the Business Process Perspective; the Customer Perspective; the Financial Perspective.Based on studying others' research fruits, analyze the character of performance evaluation subsidiaries'excutives, this paper added the aspect of excutives'ability to the BSC and build the index system from five aspects.Investigated by questionnaire, associated with interview of expert, the indexes were filtered, then, by using factor analysis 13 factors were concolude. At last, the paper defined the coefficients of the index system and a full index system was built up.Parent corporation need to select the suitable performance appraisal method in order to implement the system of performance appraisal of subsidiaries'excutives. Because there has fuzzy information during the performance evaluation and the fuzzy method has some advantages, we adopt fuzzy method and AHP to analyze the implement course of performance evaluation of subsidiaries'excutives.Then, according to the problems of performance appraisal of subsidiaries'excutives; author proposes a kind of new performance appraisal of model that emphasizes communication and improvement of performance.At last, the author tests the validity of the indexes system by a demonstration to the performance of subsidiaries'excutives of a company.