Strategy-based Performance Management - A State-owned Chemical Enterprise Performance Management System Design

The idea and method of Performance Management has being adopted by numerous corporations in the world, as well as more and more Chinese entrepreneurs attach importance to it. This is not only because Performance Management can measure and improve the performances of the employees, but more importantly, Performance Management is the key method and guarantee to help corporations achieve their strategic objectives.The paper strategically reflects the relationships between Performance Management and strategic objectives of coperations, and using the model of Strategy-based Performance Management, analyzes the relationships among performance objectives system, enterprise framework, Performance Management process, performance objectives system and Performance Management organizations. Then, it technically discusses how to design effective Performance Management system. The paper first illuminates the implied meanings of strategy-based Performance Management and puts forward the model of strategy-based Performance Management; second, combined with actual conditions of enterprise A, it carries though demonstration research, that is, analyzes the problems in enterprise performance examine and relative HR and framework by diagnostic questionnaire on HR problem of enterprise, interview and collecting second-hand data; and last, it makes the idea of strategy-based Performance Management into a set of concrete and feasible systems and methods with some technical supports, such as strategically analytic instrument, proper framework arrangements, job analysis, key performance index confirmation and decomposition, so that this favorable idea and principle can be carried out.Compared with other similar articles, this paper has distinct characteristics:1. Analyzing the strategic objectives of enterprise firstly, it focuses on how to promote enterprise performance and achieve strategic objectives through Performance Management, so it reaches certain height of theory.2. Combining theory with practice, it introduces in detail the design process of strategy-based Performance Management system of corporations with real case, so it has stronger reference meanings.3. Aiming at solving practical problems of corporations, it uses helpful parts of former performance appraisal system for references, so that it makes the project more operable.The paper has not only basic research on theory but also practical operating methods. It proceeds from practice, but exceeds practice. Therefore, it is of some directive importance. It is hoped to provide with some valuable references for the change of Performance Management idea of Chinese state-run corporations.