The Improvement Proposal For Performance Appraisal System Of M Company

In the fierce competition of today’s global economic integration, the competition of management has become the key factor of success or failure. Since the1990s, many outstanding enterprises in the world have set off a revolution of business management. One after another, they have established a new business management system with performance management as the core. By this way, they maintain the strong corporate competitiveness. Practices have shown that the timely implementation of effective performance management in the enterprises can help establish the brand image, improve management efficiency, improve managers’management skills, increase employees’ self-management skills and hard working with clear objectives, make managers to better control the enterprises’development speed and the degree of execution, ensure the strategy implementation, and enhance the core competitiveness of enterprises.While the internal and external environments of the enterprises keep changing, the traditional financial indicators-based performance appraisal system has become less able to meet the requirements of the modern enterprise management and development. It is because that the traditional financial evaluation system only provides limited information which reflects the results instead of the driven factors and processes lead to those result, and the past performance. The enterprises cannot use the limited information to make judgment to the development prospect and profitability of the enterprise. The most important thing is that the limited information can not achieve the integration of the organization’s strategic objectives and management tools. In view of this, the academia and the business have been studying and exploring the strategic evaluation index system which includes financial and non-financial indicator, enable the connection of corporate strategic goals and daily business activities, and quantify the strategic objectives.In1992, Professor Robert· S. Kaplan of Harvard Business School and David· P. Norton, the president of the Revival of International Programs worked out The Balanced Scorecard"(referred as to BSC). BSC enable the organization’s vision, mission and development strategy and its performance evaluation system link together, describe the performance causes by the causal process, transform the organization strategy into employee’s handy performance index card by a strategic map of setting and disassembling organization’s overall measure indication, and make the traditional performance management change from a staff assessment and evaluation tool to a strategy implementation tool. It effectively solves the connection problem of the performance management and strategy implementation, and achieves the integration of organizational strategy and performance. Therefore, the BCS is also known as the world’s most important management tool and method within the past80years.The author, under the principles of problem-oriented, through field research and interviews, basing on SBC theoretical guidance and starting from M company strategy selection, does the analysis and makes judgment to M company’s organizational structure, human resources, business operational procedures, etc. He points out the weakness of performance evaluation based on strategy execution, propose to import SBC to M company in order to establish a multi-dimensional performance appraisal system, transforms its vision and strategy into a performance measurement index system which combines finance, customer, internal operations and learning and growing by using strategic map and fish bone chart, and tailor makes a multi-level, practical and balanced scorecard.The author believes that the BSC-based performance appraisal program designed in this Paper can build a bridge between M company’s operating performance and the identification of its competitive advantage, help the company make the correct development strategy in the complex market environment, discover its strengths and weaknesses in a timely manner, dig out its potential to improve economic efficiency, build up a sound brand image, and enhance the core competitiveness so as to remain invincible.