The Performance Management System Optimization Of LH Company

In recent years, with the rapid development of China’s economic system reform andmarket economy, enterprises are under increasing pressure in the industrial upgrade andindustrial structure adjustment. Meanwhile, it has put forward higher requirements tocorporate human resource management because of soaring labor costs and demand for higherquality of labors. As the aluminum electrolytic capacitor industry leader, LH Company isfacing enormous challenges in the market downturn and the labor shortage and other issues. Itis an urgent task to establishing an effective performance evaluation system adapting to thedevelopment of LH Company.In this study, we analyzed the current situation of performance management of LHCompany via field research, surveys, sampling and analysis, guided by abroad performanceappraisal theories. Furthermore, we found several problems of previous performancemanagement system. The overall framework of new performance evaluation system has beenestablished according to the survey results. We constructed new performance managementsystem by building key job responsibilities index database, setting performance goals,designing main assessment indexes and improving the examination process, establishingperformance management circuits. Finally, we established guarantees of performancemanagement system according to the above design situation of management system to ensurethat performance management is working properly and orderly.LH Company’s new performance management system is running effectively now. We sumup experience and lessons learned focusing on optimization methods of performancemanagement on the basis of LH Company. And we analyze the building process ofperformance appraisal system suitable for development strategies of company. Finally, we sortout a set of methods for performance management of state-owned company’s affiliates, whichis a reference for the future human resource management of other related companies.