H Based On The Balanced Scorecard Performance Management Case Study

With the rapid development of society, the competitions of human resources among enterprises become more intensified than ever. More and more enterprises learn and benefit from the Human Resource theories. Company H was established in 1996 as a privately-owned IT enterprise. Japanese software out-sourcing is the core of their business. The large growth of the amount of employees led to the noticeable changes in human resource structure, which brought much challenge and pressure to their human resource management. The problem of lacking human resource management was exposed. The old performance appraisal methods couldn't judge employees thoroughly and fairly. Accordingly, the appraisement and punishment rules are lost far behind the development of Company H. In such a serious situation, the managers of Company H made the strength of human resource management the primary managing object in 2003 for the need of development of themselves and IT industry. They hired a professional management consulting company to help them set post responsibility, salary rules, performance appraisal system and employee training. The new performance appraisal system was set up after one year of consulting and was put online at the beginning of 2004. But there were some problems made the system don't prove its power during the implement period.We'll see the whole process of the new performance appraisal system setting up first in this essay. Then we will discuss the process based on human resource management theories and methodology, especially the theory and method of performance appraisal such as job analysis, Balanced Scorecard, etc. We'll try to find the reason why the new performance appraisal system failed to show its power and make our suggestion according to the failures in the case. In the meantime, based on the analysis results we can find a way of properly using Balanced Scorecard in enterprises of China, especially in IT enterprises.