The Research On Performance Evaluation System Of A Country Local Taxation Bureau Based On The Balanced Scorecard

With the development of science and technology and the adjustment of the productionrelations, great changes have taken place in social and economic relations. As thedefencer of social and economic order, the government has come across more andmore problems and challenges. It is the western countries who took the lead in thenew public management movement and introduced the concept of enterprisemanagement to government management.They reshaped the image of the governmentwith the entrepreneurial spirit. In China，as the market economic system has graduallyreplaced the planned economy system, the functions of the government has alsochanged,which is from "management" to "service". In order to adapt to the changes,the government begins to draw lessons from the concept of enterprise management.So the performance management went into the field of government management. Theessence of the performance management is performance evaluation, which includesmany different kinds of methods to evaluate. One of these methods is the BalancedScorecard, which is drawing more and more attention. Not only theory but alsopractice has proved that the application of Balanced Scorecard in governmentfunction is feasible, effective and significant.From the first day when working in A County Local Taxation Bureau,the authorhas meet some problems caused by the unsound and inefficient performance of theevaluation system. It makes the author think about the system of performanceevaluation of the tax authorities. After some preliminary research, the author thinksthat the introduction of the Balanced Scorecard into the tax authorities will bringbetter results because of its definite strategic target and the balanced four-dimensionalevaluation model. However, in the former research and practice, the BalancedScorecard lacked the analysis and deep thoughts of the environmental factors. So itcauses the lack of adaptability to the environment in the specific research results. Inorder to solve these problems,the author takes A County Local Taxation Bureau as asample,and then trys to establish a set of tax system’performance evaluation systemwhich is suitable for the current situation, with a view to benefit the future practice.In this paper, the author will apply the literature research method, qualitativeanalysis method, quantitative analysis method, survey method, case study method,andso on. With the analysis of the existing evaluation system of A County Local TaxationBureau for a start, we have found out that A County has already formallyimplemented a set of performance evaluation mechanism, but it’s confronted withmany problems. The author thinks that the Balanced Scorecard can be used inimproving the performance evaluation of A County Local Taxation Bureau. Theconstruction of this performance evaluation system can be divided into three steps,including preparation, framework construction and post-maintenance. These threesteps are linked together and indispensable. During this process, the author appliesPEST analysis method to analysis the new situation and new requirements with whichthe current tax work is confronted. Considering the new changes of environmental factors, the author constructs the strategy map of A County Local Taxation Bureau.When the framework is complete,taking the actual situation of local taxation workinto account,the author trespectively defines the evaluation indexes from fourdimensions—financial, taxpayers, internal business processes, and learning andgrowing. The author adopts the Analytic Hierarchy Process method to determine theweight of each index in order to form a set of Balanced Scorecard. This set ofBalanced Scorecard of A County Local Taxation Bureau is applicable to the newsituation and new environment. After the preliminary practice verification, the set ofperformance evaluation system has been proved to be feasible and effective.The author hopes that from this study, on one hand, we can form a "three steps"process of building the Balanced Scorecard,and make full analysis of theenvironmental impact in the process to make the Balanced Scorecard more adaptableto the environment. On the other hand,the author hopes that the study can help ACounty Local Taxation Bureau to improve the performance of evaluation of the work,to establish the idea of strategic management,and to stimulate greater developmentvitality to local taxation cause.