The Performance Management Research In Tax Authorities Based On The Balanced Scorecard

In recent years, with the ongoing reform of the government system in China, China has conducted a deeper and deeper evaluation of the government performance. In order to integrate into the integration process of world economy, China must establish an improved evaluation system for the government performance, which is the only way that must be passed for Chinese administrative reform. However, the government performance also attracts much attention in society.In China, the tax department is not only responsible for the main tasks of national macroeconomic regulation and control, but also plays an important role in regulating the income distribution for people. Therefore, the tax department is an important part of the national administrations and the evaluation of the administrative performance in tax departments shows importance significance for China to achieve the desired objectives. Performance management objectives are identified mainly through the upper and subordinate organizations & the communication between the organization and cadres. In order to ensure the smooth realization of the organizational performance appraisal, we need continuous improvement and training to affirm the value of cadres within the organization and ensure the results of the performance appraisal to contribute to the development of the organization, which is a modern performance management method. In recent years of the performance management tasks, tax authorities around the country will gradually integrate the performance appraisal into the management contents of their own departments and they begin to evaluate the tax work through the performance appraisal method, which attempts to improve the working efficiency for the tax department and ensure the continuous development of the overall tax work. However, as the implementation of performance management is still in its infancy, there are many problems in the performance management of the tax departments, such as the incomprehensiveness of performance indicator system, the unsystematic evaluation, unreal evaluation results and the unreasonable evaluation methods, etc. Therefore, there is still of great research value to take the tax performance evaluation as the research object. In addition, as a grass-root tax authority which should keep in direct contact with many taxpayers, its movements will influence the social image of government departments, thus it is of practical significance to take the grass-root tax bureaus as the research object.This paper adopts the research method of combining theory with practice to conduct the study, summarizes some related contents about the existing performance management and performance appraisal methods. Combined with the actual situation of the tax bureau in Baoshan District, this paper divides the contents into four dimensions of finance, customers, internal control and learning & growth in line with the balanced scorecard. Accordingly, this paper designs a KPI system to form a special performance evaluation program for the tax authorities.This paper is mainly divided into four parts. The first part displays an overview of the background of Chinese performance management, the research significance, literature review, and research methods & contents. The second part is an overview of performance management and introduces some related concepts of performance management, performance appraisals and the necessity of implementing performance management for tax bureaus. Moreover, it analyzes the effectiveness and deficiencies of performance management. The third part takes the tax bureau in Baoshan district for example, and it describes the status of the performance management in the tax bureau in Baoshan district and the strategic objectives in Baoshan district. Meanwhile, it designs an index system of the performance evaluation in the tax bureau in Baoshan district based on balanced scorecard, which is the key section of this paper. It also integrates the idea of balanced scorecard through designing a new performance appraisal system and constitutes a three-level KPI evaluation system from the organization, department to staff. The fourth part proposes ways to optimize the performance management of the tax bureau in Baoshan district and provides some relevant suggestions.