Jinan Iron And Steel Group, A Subsidiary Of State-owned Asset Management Performance Evaluation Program Discussed

Under the system of state-owned enterprise in existence, this paper proposes effect factor and theory applicability of the performance evaluation system used to the managers of Jigang group subsidiary company, then bring forward a set of fitting evaluate system (PES). The system combined theoretic and practical.In the modern economic times, how to coincide the interests of managers (as the agent) and owners (as the principal) has become a key issue for organization's survival and thriving. At present, compare with owners of state-owned enterprise and owners of common enterprise, they ask the different benefit. The working goal of state-owned enterprise is not only maximum shareholder value, but also benefit equilibrium of all stakeholders. It is determined on the environment of inside and outside. Through the analysis, there are three aspects which is discussed about:a. The analysis of environment of PES. The powers influence manager's behaviors are mainly from constraints of the external market including products market, capital market and labor market, the power diversion of corporate governance, and the incentive derived from PES. The differences of market efficiency, legislation system, culture and business tradition among the different countries have significant influence on the corporate governance, and also on the PES.b. The analysis of stakeholders. In this paper we give up this hypothesis and take all contributors of economic resources as principals and identify the ways to express their interests in PES on the basis of analyzing these contributors' interest-protecting mechanism and their relationship with managers under specific external conditions. On the basis of stakeholder analysis, Co-Determination is a matching principal model to have shareholder, employee, bank, and government work together in designing PES. Because the deficiency of the mechanism for employee and bank to play the role and the confusion of the roles the government plays as shareholder and as public manager simultaneously, the application ofCo-Determination model has to follow the reform of the corporate governance.c. The principles to design PES under the specific stakeholder condition. Under the elements of performance measures, benchmark, performance measuring system and compensation plan, design a complete system cooperate with other subsystem in this mechanism and coinciding the interests of stakeholders and managers by the influence on the managers' behaviors.This paper designed of conjoined method design and example. Choose one model subsidiary company, collected dealing data about 2001, consult with the status of the industry, measuring performance of the manager through the operation, then count the annual salary so that explain the applicable instance.