Zoomlion Business Unit Performance Evaluation System

After the foundation of modern enterprise system, more and more attentions have been given to corporation performance evaluation. Changsha Zoomlion Science and Technology Co.,Ltd is facing the strategic adjustment from traditional nuclear fusion to nuclear fission so that it can adapt to a multiple international market. Radical changes have taken place in internal organization structure, management model as well as financial evaluation method after the reform of multidivisional organization. In order to adapt to these transformation, it's necessary to modify performance evaluation system and make it a favorable force to realize the transformation.The thesis summarized the basic theory of performance evaluation system, described the past evolvement of Chinese and international performance evaluation history, illustrated the principle, content and methods of performance evaluation system. It employed the opinions of strategic theory, agency theory and management by objectives theory to analyze the existing performance evaluation system of Changsha Zoomlion Science and Technology Co.,Ltd, pointed out its merits and limitation and suggested several methods to improve the existing performance evaluation system.The thesis focused on discussion the method to create a new-type performance evaluation system for the business divisions of Changsha Zoomlion Science and Technology Co.,Ltd., formulated the system frame, indicator system and implement process plan in the light of company's actual situation. According to the functions, it defined the quantitative and qualitative indicators and its evaluation method from different levels. In view of the different objectives of quarterly and annual performance evaluation, the thesis formulated different evaluation combination separately, achieving to be simple and practical. The new divisional enterprise performance evaluation deals well with long-tern and short-tern interests of the whole group and assure the whole company keeps up making progress. Meanwhile, this thesis also explained the application of the performance evaluation result from four different levels. Enterprise performance evaluation is a dynamic process. With gradual improvement of corporation management, the development of performance evaluation will change even more quickly.