Research On Business Group Performance Appraisal

In the times of global economic integration, the competition among enterprises, especially among the large business groups, reflects the comprehensive national strength. Since the Reform and Opening up, China’s large business groups make a big leap in quantity and quality, more and more Chinese faces appear in the world’s Top 500 enterprises. But compared with developed countries, our business groups’management still needs to be further improved in terms of theoretical research and practice. Professor Kaplan Robert and David Norton, who proposed "The Balanced Scorecard Theory ", said "No measure, No management", which pointed out the important status of Performance Appraisal in the enterprise simply but clearly, especially for the complicated organizations.The thesis focuses in the application of Performance Appraisal, especially in the large business groups. First we analyze the characteristics and requirements of Performance Appraisal in different theories. Then we make a comprehensive summary on the development of Performance Appraisal in Chinese and foreign enterprises practice, which includes the introduction and comparison of the Balanced Scorecard and EVA (Economic Value Added). Finally, we do a case analysis on the Performance Appraisal, with the example of a diversified large business group--AVIC International.This thesis agrees that most existing methods of Performance Appraisal and their theoretical origin are based on the hypothesis of subject and object. We need to evaluate and select the methods of Performance Appraisal under the subjective and objective condition. And the responsibility of a manager is to find an appropriate Performance Appraisal method, under the particular environment and intention. The thesis analyzes the logical relationship between the Performance Appraisal theory, method and practice, combined with the subjective and objective condition.In addition, the thesis believes that, in the practice of management, Enterprise Performance Appraisal, strategic management, comprehensive budgeting management, the allocation of resources and human resources management support each other. We could only implement the Performance Appraisal management intention effectively, through focusing on the enterprise internal management cycle and the collaboration of the links of Performance Appraisal and other management tools.The thesis wants to give some advice on the operation and management of Chinese business groups, especially on how to make the Performance Appraisal effectively.