On The Design And Application Of KPI

Key Performance Indicator(KPI) is a very important tool to performance appraisal.It combines the idea of Management by objective and quantified assessment,it has a positive effect both in value evaluation and behavior guidance.The purpose of this thesis is to study application of KPI appraisal system.It mainly talks about the characteristics and advantages of KPI,meanwhile it make a further explanation of the function,principles,method and general process.The fourth part of this thesis is also the most important one.It mainly analyses the present situation of Shandong HJ Engineering Supervision consulting Co.,LTD and put forward its own solution of KPI appraisal system.The study indicates that there exit some imperfect aspects inside Shandong HJ Engineering Supervision consulting Co.,LTD at present.The thesis thinks that KPI can help the company run out of the predicament if it is used properly.KPI use its special methods to clear the major responsibility of departments,to clear the index of performance.KPI has good maneuverability,objectivity and pertinence.KPI is not only a new system of motivating and constraint the stuff's behavior, but also has a good strategic guidance.KPI combines the personal behavior and department target through layer decomposition of the enterprise strategic target,then KPI system can explain and broadcast the general development strategy effectively and become a very important tool of applying enterprise's strategic planning;KPI emphasizes self-encouragement of the human nature.It doesn't need any external restraint makes employees do themselves best while make contribution to the development of enterprises.That is helpful for continue quality improvement and enhancing competitiveness.