Executives' Performance Evaluation Based On RPE

With the challenge of knowledge economy and globalization, theexecutives play more and more important role in enterprises. Theseexecutives are the core and soul of enterprises; they are also kind ofimportant human capital in the development of economy. Undoubtedly aneffective evaluation system of executives'performance and incentivemechanism can not only help with the selection, evaluation and growing ofoperators, but also accelerate the development of enterprises. However, theenvironment is in a quick change, and we cannot neglect its impact on theenterprises. In a way it can also lead to incorrect evaluation which made theincentive mechanism lose its function. So, the study about how to eliminatethe effect of uncontrolled environment factors on the evaluation andincentive mechanism of executives is of great academic and practicalimportance.This article will make use of relative performance evaluation theory toremove the noises of uncontrolled environment, eliminate the impact onexecutives and study the theory, the model and the method of executives'performance evaluation. We will also use an academic and practical method,establishing a model of executives'performance evaluation and givingsome advice and direction for enterprises to improve their evaluationsystem. The study will be divided into five parts as follows:The first part mainly brings forward the importance of executives'performance evaluation and the purpose, the way of this study. The secondpart systemically introduce the development of relative performance theory.In the third part, we compare the operate performance and executives'performance and point out that they are not equal with the influence of environment risk. In this way, we introduce relative performance theory toerect a model to eliminate the environment risk and give a detailedexplaining on the selection of reference frame, the setting of parameter andperformance indices to improve the effect of this model. Use empiricalresearch in the fourth part, mainly make an analyse of the travel industrywith the data of 2002-2005 and point out that this method of executives'performance evaluation is more rational and feasible than the old ones. Andthe last part is a conclusion, it generalize this article and advance somestudying advice, that is design an effective salary planning on this basement,which is in a great demand in our country.The primary contribution of this article is that: systemically introducethe development of relative performance theory; use this idea in the modeldesigning of executives'performance evaluation and give some advice onhow to improve the evaluation method in our country; erect a relativeperformance model to eliminate the system risk,In order to solve theproblem of low incentive efficiency of proprietors that is common inChinese enterprises, truly reflect the contribution of proprietors to theenterprises；we illuminate the usage of this model in detail, and do researchof demonstration, which elementarily verifies the achievement ofproprietors based on relative performance evaluation theory . The model isreasonable and practical, enriching the theory of relative performanceevaluation theory with certain practical significance.