Build The Performance Evaluation System Of The S Metallurgical Mining Group Co.,Ltd Under The Perspective Of Balanced Score Card

The metallurgical industry is at a very important base position in Chinese economy nowadays. Without a prosperous metallurgical industry, it will be extremely difficult for China to advance in industrialization and modernization, as well as achieve the Chinese Dream. Accelerating the development of metallurgical industry could drive economic growth, stabilize tax revenue of the government, and promote social progress. Whether state-owned metallurgical enterprises are able to sustain healthy development is directly link to economy and social stability. However, since the global financial crisis in2008, metallurgical companies in China have been experiencing a significant downturn. Most of the state-owned metallurgical enterprise incurred losses in the fluctuating market. The whole industry faces serious mismatch between the supply and the demand. Companies are under greater pressure to sustain their growth. Under these circumstances, state-owned metallurgical enterprises must adopt advanced performance management systems for revitalization.Due to the influence of the planned economy system, some problems could be commonly found in the management ideology of state-owned metallurgical enterprises. On one hand, production management is overly emphasized while management of the employees is ignored by state-owned enterprises. On the other hand, management ideology of policy-makers are lagging behind and more specifically, they are lacking knowledge related to performance management. Therefore, comprehensive employee performance appraisal system are not established. Out-dated management ideology of policy-makers not only prevents full performance of current performance appraisal system, but also prevent employees from fully performing their potentials. In other words, proper management ideology of policy-makers could enables creativeness of employees, allows them to constantly create value to the company and fulfill themselves, which reduces employee turnover. Companies are not able to achieve sustainable growth if the huge potential of human resources are not fully leveraged on.Balanced Score Card in performance evaluation has its unique advantages. It not only reflects financial situation of the company accurately, but also draws attention to internal process optimization, customer satisfaction improvement and the increase of employees’capability. Therefore, in order to solve the performance management problems of state-owned metallurgical enterprises, we could introduce Balanced Score Card into performance appraisal system, so that we could improve the staff’s performance, revitalize and achieve sustainable development for the company.In this article, we take a subsidiary of China Minmetals Corporation (hereafter referred to as "Company S") as the research objective. Firstly, we present findings from literature reviews. Secondly, we introduce basic concepts about performance appraisal system and Balanced Score Card. Thirdly, we analyze the current situation of the performance appraisal system of company, including its history and drawbacks of the current system. After that, we assess the necessity and feasibility of implementing Balanced Score Card. Guided by the Balanced Score Card theory, we then tailor-make a performance appraisal system for Company S, which covers4dimensions:finance, customer, internal affairs, as well as learning and development. We hope this system could achieve3different goals. First, it could solve operational problem the company is currently facing. Second, it could promotes the application of Balanced Score Card in metallurgical industry and even in all state-owned enterprises. Finally, it could provide insights and act as a reference for metallurgical companies who want to improve their competitiveness and management expertise.