The Design And Application Of Performance Management System Based On Strategic Objectives

With the rapid development of global economic integration, more and moreprivate enterprises realized that in order to survival and develop under the fiercecompetition, they have to upgrade their core competitiveness continuously and make aclear strategy for enterprise development, and they have to keep on implementing thestrategy, however, performance management is the most effective protection for aenterprise to achieve strategic goals.Nowadays, most companies have already realized that performance managementplays a key role for them to gain the good performance and competitive advantage.But at the meantime they suffer from the process of performance management, thisshows that performance management has become a important topic of a company’smanagement.This paper gives us analysis of the current situation and existence problem forthe private enterprise, show us how to set up performance appraisal system based onthe strategic objectives of enterprises to solve the problems happened in theperformance management. Firstly, it analyses the connection between performancemanagement and strategic management, show us the theoretical basis and necessityfor establishing of strategy oriented performance management model. Secondly, itanalyses the connection between each link of the strategy oriented performancemanagement. Lastly, from the previous integrated management theory and my ownmanagement experience of performance management work, I set up the Strategyoriented performance management modelIt includes develop the strategic objectives of enterprises, performance targetsetting, personal development plan, the performance of the implementation andmonitoring, Performance evaluation, performance feedback, performance obstacleanalysis,etc.Lastly, I took a private enterprise as the case, analysis the current situation and existence problem, application of PESTEL analysis method to carry on the analysisof external environment, Application of five forces model to carry on the analysis ofindustry environment analysis, Application of SWOT and BSC to process thecompany’s strategy analysis and choice, Design of the company’s strategic objectives,and then do the target index processing, determine weights, constructing thecompany’s performance index system, Making the performance management model’sdesign to be concreted.The major progresses of this paper are as follows:(1) The result proves that, strategy oriented performance management system canmake the strategy goal to be concreted, and will affect the strategic success factorsfully reflected in the performance evaluation index system, making performancemanagement and strategy combined closely, it provides some ideas and methods forprivate enterprises to carry out effective performance management.(2) In the performance index system by introducing process work points toassessment, by means of qualitative and quantitative methods to combine toassessment the work performance for the benefit of enterprises in the non-productionsector, Making evaluation results more objective.