Research On Performance Appraisal Of State-owned Engineering Design Enterprises

In the21st century, the world has entered the era of knowledge economy, as the global economy becomes increasingly integrated, enterprise market environments have taken place the earth-shaking changes and the competition becomes increasingly fiercely. The ultimate competition among enterprises is the talent competition. People and technological innovation as the core technology of the carrier, is the most important factor in the ultimate realization of the strategic objectives of the enterprise. With the increase of China’s national strength and the important role in the international economy, a group of outstanding enterprises have emerged. Chinese enterprises have gradually realized the importance of human resource management on corporate strategy development and invested more and more on human resources management. Chinese enterprises are paying attentions on how to retain talent, how to cultivate talent and how to stimulate innovation talent.Chinese engineering design enterprises are typically knowledge and technology-intensive and most of the employees obtain well education and hold high degree. As China’s economy continues to develop, performance appraisal program for the majority of employees in Chinese engineering design enterprise are foreign experiences and methods, which is not fit for China’s actual situation and industry characteristics. So a lot of problems occurred, such as:employee enthusiasm is not high, innovation is not strong and lack of cohesion centripetal force, the most serious problem is the loss of excellent human resources. China’s economic growth has brought great development opportunities for engineering design enterprises, so the prosperity of the whole industry is attracting talent and provides a higher level of pay. But for knowledge employees, the simplification of the incentives with pay doesn’t provide opportunity of full range of development. Once they realize the lack of fairness and transparency in the enterprise performance management, they will have the feelings of insecurity and the limitation of personal development. This will result in the loss of talent. For the engineering design enterprises this phenomenon will lead to the decline of innovation and competitiveness. In some sense, it is educating the talent for the industry competitors. This thesis is based on the performance appraisal research on the state-owned engineering enterprise named W in short. Three research methods are adopted: questionnaire investigation, group discussion and focus interview. W Company the existing performance appraisal system is deeply analyzed and therefore reveals the existing problems in W’s performance appraisal system, such as:the main purpose of the assessment is for bonuses and to complete examination, assessment indicators is lack of comprehensiveness, assessment results feedback and the application need to be improved, as well as " iron rice bowl" phenomenon. Then some methods are proposed to solve these issues in order to improve the performance appraisal system implementation plan. As the saying goes, see reflected conceivable whole picture, the issues found in company W’s performance appraisal system are common issues of entire state-owned engineering design enterprises. Therefore, the study of W’s performance appraisal system and the proposal of improvement program provide reference for the same type of company in the country when selecting performance indicators, implementation of assessment and improvement of assessment methods.