Research On Performance Evaluation Of YY Civilian-run Medicine Circulation Enterprises

For high price of medicine, most people can't afford their medical expenditure. The government adopted a series of measures to cope with this situation. One of these is bidding centralization. In the mechanism, suppliers of medicine invite public bidding to trade companies, hospitals invite public bidding to trade companies too. The price of medicine become clear to all participants, and the margin profit that trade companies earned become limited. After annual public bidding, the margin profit of a trade company is nearly a certain number. If the company wants to have more net earned profit, the key issue is to improve its management and competitive ability. So they can save more money and create more chance to earn extra profit. This is the only way that a trade company can keep existing and growing under such a dog-eat-dog circumstance.Upon many years working experience and EMBA academic studying, the author considered that reformation of the performance evaluation system is a most effective method to management efficiency and competitive ability. That's the reason why the performance evaluation system of medicine trade company by private-own is chosen to be the topic.There are totally four chapters in this paper, and the main content is as follows:The first chapter introduced the main concepts of performance evaluation. There are the concept, the system and the main flow, the function and the method of performance evaluation. It's the theoretical basis of the paper.The second chapter summarized the popular issues existing in medicine trade company by private-own, and gave brief reasons for such issues.The third chapter is the main part of the paper. It's a case study of the company which the author worked for, and it's about the reformation of the performance evaluation system and compensation system. All these are based on the author's working experience and the thoughts upon the issues after EMBA courses. It includes strategy analysis of YY Company, the main issues existing in YY Company, the main ideas of the reformation of performance evaluation, the concrete measures and the steps of the reformation, etc.The last chapter summarized the effects that new performance evaluation system brought to YY, and raised some new issues that appeared in the process of the revolution. Relevant advices to solve these problems are given, too.The author gained a lot of thoughts from the process of writing the papers, the most important are as follows:Firstly, the strategy goal of a company is the guide of performance evaluation. That is set a goal before designing a performance evaluation system.Secondly, revolution of relevant management system is the base of designing a new performance evaluation system. For example, reconstruct the company and adjusting the business process should be in advance.Finally, all kinds of obstacles and difficulties would appear when a new performance evaluation system is applying to a company, so the step shall be slowly and one by one after an elaborate plan.