Contrast To State-owned Enterprises Based On Multidimensional Performance Evaluation Index System Design

Performance evaluation is the hot topic that has attracted attention of the Chinese and Western scholars, the consultative agencies and enterprises. The SASAC (State-owned Assets Supervision and Administration Commission of the State Council) has issued a series of SOE (state own enterprises) performance evaluation systems in 6 years since its establishment, but the SOE current performance evaluation system has quite a number of unreasonable areas that need improvement so to improve the evaluation result quality.The first part the thesis elaborated the definition of SOE, performance assessment and performance evaluation, and then studied typical performance evaluation models like financial based evaluation model, value base model, balanced model, etc and analyzed the disadvantage of each model in SOE performance evaluation.The second part of the thesis briefly reviewed the SOE performance evaluation development and progress, and analyzed the current and . Through the study, it is found that currently majority of SOEs' performance are not effectively evaluated and supervised, current SOE performance evaluation system is not able to effectively lead the development of SOEs. Besides, current SOE performance evaluation system still has following problems in KPI setting: focused on capital gain, only use vertical comparison and budgeting comparison, performance indicator is not clear, only use qualitative indicator, etc.The third part of the thesis brought up the improvement suggestion to set up a dimension of classification SOE performance system based on the problems exist in current SOE performance evaluation system. That is to set several dimensions to indicate the character of the enterprise to meet the supervision need, then improve the relevance and applicability of SOE performance system through common indicators, dimension indicators and additional indicators. Besides, through indicator setting game analysis, it is suggested that the performance indicator should be set by using the weighted average of enterprise budget and industrial standards, to improvement SOE performance evaluation comparability. Finally it is suggested to separate non-financial indicators from the current evaluation system, non-financial indicators such as enterprise development should be independently assessed and evaluated.The thesis redesigned the SOE performance evaluation system on the basis of the current , following the principle of "dimension of classification SOE performance evaluation system". The SC company, a small high tech SOE, is used as an example, the thesis conducted detail design for it's basic indicator, dimension indicator and additional indicator, and compared its 2007 performance evaluation by using a few different SOE performance evaluation system. It is found through the comparison that overall performance evaluation system can thoroughly, truly reflect the enterprise operating result, and can clearly reflect the shortfall the enterprise. Dimension of classification performance evaluation system is able to set up performance indicators based on the industry the enterprise is in and the certain life cycle the enterprise is at. This system is able to do both vertical and horizontal comparison during the indicator set up so it is a good improvement for current SOE performance evaluation system.