A Research On The Performance Evaluation Of State-owned Enterprises Based On Performance Prism

Enterprise performance evaluation system has a very important position in the enterprise management. A good performance evaluation system is not only an instrument which can transmute corporate strategies into specific evaluation indexes, but also is the foundation for a corporation to establish incentive and restraint mechanisms. It is propitious to guide the operation and management of the enterprises correctly, and improve the competitiveness of the enterprises.With the social development and economic progress, the business environment of state-owned enterprises in China has undergone profound changes, and enterprises are facing a large number of stakeholders. In this case, enterprise performance evaluation must consider the interests of all the stakeholders, rather than maximize the interests of shareholders. But, the current performance evaluation systems of Chinese state-owned enterprises have short-term behaviors that over-emphasize on the financial performances and haven't taken enough considerations about the interests of all the stakeholders. Performance prism is a stakeholder-oriented performance evaluation system,which can deal with the relationship between the enterprise and every stakeholder effectively and achieve the object to evaluate business performance comprehensively. Therefore, it is very necessary to introduce performance prism for the state-owned enterprises in our country.This paper summarized previous studies on the stakeholder theory, introduced the principle and the advance of performance prism, analyzed the main problems in the current performance evaluation systems of state-owned enterprises in China, and used the performance prism to construct a new stakeholder-oriented performance evaluation system for the state-owned enterprises, which sets targets separately from five aspects, the satisfactions of stakeholders, the contributions of stakeholders, strategies, processes and abilities. It also confirmed the feasibility and superiority of the new performance evaluation system through a case study on the HL company which puts the performance prism evaluation into practice.