Study On A Accounting Firm Performance Management System

On2011, June16th, the Ministry of Finance issued ‘The Guidance for Enterprises onHow to Select an Accounting Firm properly’(Caikuai [2011] No.15), it explicitly indicatesthat large and medium-sized enterprises should select an accounting firm, which suits the size,status and social influence of the enterprises themselves. Objectively speaking, this willrequire the accounting firms, especially those medium-sized accounting firms, should enlargetheir scales and improve their service level at the same time. Based on the characteristics ofaccounting firm, the only way to accomplish it is to establish a strategy-oriented and feasibleperformance management system. As to the high cost of performance management and thetechnique requirements of assessments, small-sized accounting firms normally are lack of themotive to exercise the performance management.This article aims to discuss on how the medium-sized accounting firms achieve theirstrategic goals, enhance their core-competitiveness, and become one of the top accountingfirms by setting up the organizational strategy-oriented performance management system.According to the result from the survey on employee satisfaction, this article tries tosummarize and dissect the problems on the compensation incentive system by analyzing theexisting status of the Employee Performance Management System of the A accounting firm.To design a proper performance management system should based on the practicalsituation of the firm. This article attended to design a strategy-oriented, feasible andClosed-loop performance management system by delivering a clear dimension ofperformance appraisal based on the results from the Position Analysis, decomposing thestrategic goals, refining the performance target of the management, CPAs and assistants,setting down the performance agreement, and introducing the principle, frequency, andoperation methods of performance appraisal and the ways to feedback.Finally, this article would discuss on how to link up the appraisal result, compensationincentive system and the employee relationship, and apply it as the important basis to themanagement of Human Resources.