The Study On Performance Management Of SMEs In European Union And Its Insights To China

The Small and Medium-sized Enterprises (Abbreviated as SMEs) is one of the most important part in the National Economy for almost all countries, no matter it is developed or developing. Enhance, special attention need to be paid to the point that SMEs hold the balance in social and economic field for us China, which is an underdeveloped country full of population.In recent years, SMEs have made great progress; however, they are still faced with many problems, including outdated model for performance management (PM) and lower quality in management level. These problems have already affected further development of SMEs. Today, it has become a very hot subject on how will SMEs overcome existent deficiency, apply for advanced theories on PM, establish more scientific and reasonable PM system, in order to improve enterprise's overall performance strengthen enterprise's core competitive ability.Based on the literatures that have been collected and read in the United Kingdom, the author of this dissertation did some research and analyses on SMEs Performance Management(PM) in EU countries, and find there do exist beneficial points of PM, especial its key part—performance appraisal for China. After that, by citing an example of X company located in one member country of EU, this very dissertation get further insights into its Scientific PM System and sophisticated experience, so do the aspects that need to be improved, and finally tries to give some beneficial insights for Chinese SMEs on how to establish an effective performance appraisal system, and how to bring its effect into play in performance management and human resource management of a company.