Enterprise Performance Incentive

As China's socialist market economic system gradually established and constantly perfected, the competition is increasing among enterprises. Competition among enterprises is ultimately a competition among talent. After the transition of FC, it still uses the original methods and performance evaluation incentive model for management, but not establishing a scientific and effective incentive mechanism. Although it had made some improvements, there still exists fragmented structure of incentives, single incentives in the form and not has differentiated incentive issues, which is far to meet the requirements of the current competitive market. Those existed problems resulted in the loss of human resources and lack of cohesion and inefficient situation. Also it did not have enough awareness to external environment, development trends of the industry and the brain drain, so the enterprise devel opment has been bound. Therefore, to ensure the smooth development of FC and the talent's development themselves, improving current incentive mechanism is imperative.Thi s paper analyzes on the basis of the theoretical performance eva I uat ion, focusing on two performance appraisal system theories:the Balanced Scorecard (BSC) and key performance indicators (KPI). The BSC is a kind of performance management system, which let the organization's strategy become operational measurement and target from four perspectives:finance, customer, internal operation, learning and growth. The KPI assess to the process of company's management. The paper discusses the feasibility combining the BSC to the KPI. This paper also analyzes the evolution of the incentive theory, analyzing and comparing the three motivation theories one by one. The three motivation theories are the theory of content-based incentive, the theory of incentive process and the theory of incentive reform act. FC is a joint venture company, set up by the local government and China Aviation Industry Group Co., Ltd. It mainly develops, produces and sells aviation and non-aviation composite materials.It also cooperates with external companies. It is the main company engaging in researching and developing and producing composite materials in our country. The author analyzes current incentive mechanism, focusing on the implementation of results from the full employment system, the rationality of the wage distribution system, technical staff career development, assessment tools and form, long-term incentives and soon in order to find problems of current incentive mechanisms.In the full grasping of FC s incentive status, I just want to design a kind of performance evolution model combining KPI and BSC. According to the FC' s strategy and vision, I re-sort job and responsibility. Also I divide the KPI into three levels:the company level, the departmental level and individual level, and design step by step. I also focus on quantify the performance appraisal results to score in order to link results of performance assessment to salary incentive mechanisms better, and try to study the specific operating methods., and ultimately to establish incentive-based compensation, non-material supplemented by performance incentives motivation. But of course only after the implementation of ultimately incentive effect, can we get the feedback.This paper referenced to the other subordinate units in the aircraft industry related incentive model and combined with my working experience in FC, I think the incentive model designed has certain realistic basis, owing highly direction and feasible nature. Also this kind of incentive model is significant and valuable to other company's incentive but not only for FC.