The Research Of Company Performance Appraisal Based On Entropy-weighting TOPSIS

With the rapid development of the society, the operating environment in the enterprises has correspondingly changed a lot, which brings a great challenge to the traditional management system. These differences are the root of the changes in Performance Evaluation System and Indicator System. Based on Accounting and Financial Management, The Performance Evaluation System is a realization of the assessment theory in economic field; though Principles of Econometrics and Modern analytical techniques an operation process being analyzed is constructed, with which a firm's real situation can be reflected, and the future development can be forecasted as well.The Performance Evaluation System is an important issue in the knowledge-based period. The essence of alter is lead by the arrival of the knowledge-based era and the frequent application of Financial instruments and the uncertainty of the market. The mode of competition among enterprises is the contest in technology, brain and innovation, rather than that in resource, total capital and Incremental capital in the past; on the other hand, innovation advantages are continuously obtained in order to offset the disadvantages in resources and capital.Thus, operation process can not be reflected roundly and concisely by the traditional Performance Evaluation System, the analysis and management can not run well, let along consistent with the strategy objectives and management means of the enterprise. The core of the Performance Evaluation System ought to be constantly innovated with the connotation of the enterprise management. The important intangible assets factors such as knowledge must be fully reflected in the Performance Evaluation System.Though theory and practice, getting into the develop history of the evaluation system among inland and overseas companies, the paper point out the limitations of the traditional evaluation system. Under the background above, the paper attempts to build up a mode of TOPSIS Performance Evaluation System based on Entropy weight in discussion of the advantages and limitations among Analytic Hierarchy Process, Balanced Scorecard and Economic Value Added Indicators.This new Performance Evaluation System introduces the conception of Entropy in order to set the share of indicators.And three supermarkets are compared with the operation performance in the paper to test and verify the new system.The innovations are outlined here:Firstly, the TOPSIS Evaluation Method can be improved with the introduction of the conception of Entropy. By the TOPSIS Evaluation System each weight will be estimated in order to avoid Subjectivity and arbitrariness in the assessment. Secondly, promote a new way to assess the performance. TOPSIS-based Evaluation System is a way to assess performance, order weights and give out foundation for the investors.The former Evaluation System only shows assessment for just one factor, not for the whole performance. However, with the new TOPSIS Evaluation System not only the main factors but also the overall performance can be distinguished. So, the new System makes up the shortage that the former system has in comparing solo weight and overall competition.From general to specific the research method is taken here from theory to practice. This paper is consisted of five chapters:Chapter one:Introduction. A brief introduction of the background and the research meaning are shown in the first chapter, the main tasks and innovations are mentioned as well.Chapter two:The basic thesis of the Information Evaluation. Some related conceptions and the thesis of the performance evaluation are expounded.Chapter Three:The construction of the evaluation system. An analysis about the performance between eastern and western companies is made, form which we get that the evaluation system vary with the running environment; then a general wide use evaluation system is constructed based on the comparisons among the grade analyzing method, balance score method and EVA evaluation method, which give reference for the building of indicators.Chapter Four:The brief introduction of TOPSIS-based Performance Evaluation System is showed and the relation with the performance evaluation; after the focus presentation of the Entropy thesis, the TOPSIS-based Performance Evaluation System is constructed.Chapter five:Examples analysis of general performance of supermarkets.Set three supermarkets as example.The performance will be evaluated and the result be compared by the mode to identify the Practicality with this evaluation system.