The Construction On The Performance Appraisal Index System Of The State-owned Commercial Banks

Up to July2010, the state-owned commercial banks as an important pillar of china’sfinancial system, has achieved Joint-stock reform and dispute into the top100banks in theworld. However, there are more and more intense competition between the banking sectorbecause of a new business environment created by the transformation of the financialglobal competition and information technology for the state-owned commercial banks. Inorder to maintain the status of competition in the international market, the state-ownedcommercial banks should acquire more information about the strategic decision-making sothat the operating management behavior is consistent with the strategic objectives, whichraises new challenges for the state-owned commercial banks’ performance appraisalsystem. Since reformed soon, the state-owned commercial banks born out of the plannedeconomical system have introduced the concept of modern international commercial banksoperation, still deviate from the direction of strategic management in action. Thestate-owned commercial banks pay more attention to the results than process in the currentperformance evaluation index system, which is unable to give a comprehensive evaluationof the results of operations of the state-owned commercial banks. Therefore, to get to thebottom of the root of the problem in China’s state-owned commercial bank performanceappraisal and build a comprehensive performance evaluation index system is of greatsignificance to improve the market competitiveness of China’s state-owned commercialbanks.There are literature study, standard research method and system analysis in this paper.Firstly, it systematically analyzes and summarizes the historical background of themanagement of state-owned commercial banks in order to get the root causes of the state-owned commercial banks’ performance appraisal problems. Secondly, aftercomparing the pros and cons of several performance appraisal method, this papersummaries the experience and Inspiration of the performance appraisal system ofWestern commercial banks. Under the premise of clear strategic goals and performanceevaluation of the state-owned commercial banks target, this paper builds a set ofperformance evaluation index system, which is to the main of The Balanced Scorecard, asauxiliary to the EVA evaluation and economic capital appraisal methods, and take intoaccount the financial indicators and non-financial indicators, results indicators and processindicators, and keep the unity of the conduct of operations of the state-owned commercialbanks and long-term development goals. Subsequently, with the help of Key performanceevaluation method and Target Management method, the thesis step by step to devise theindicators of financial class, customer class, internal processes classes and learning andgrowth class in The Balanced Scorecard, and design weights by the Analytic HierarchyProcess,so that the entire index system has a certain practical value. Finally, to achieve thepurpose of using the Performance evaluation index system of state-owned commercialbanks effectively, this paper proposes five security measures.