Design And Application Research Of The Performance Appraisal System For Property Insurance Company

A performance appraisal (PA) also referred to as a performance review, or performance evaluation, is a systematic and periodic process that assesses and individual employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives. The performance appraisal originated from the western civil servant system, attracted the researchers’ attention from 1920s, and became an important content in academic regions such as economics, management, and human resources.Since the Reform and Opening of China, the insurance premium of the insurance industry increased rapidly, even faster than the GDP growth rate. At the same time, foreign companies came into Chinses market and challenged our local industry, and inversely, urged the local companies to strengthen their competitiveness by exploring and learning advanced experience from other companies. The performance appraisal gradually became one of the essential systems in almost every insurance company. However, the performance appraisal system in our local companies were preliminary compared with western countries. Further continuous research on performance appraisal and management theoretically and in practice is required to maximize the positive effect of the appraisal system on arising the initiatives of the personnel.In the thesis, the problem mentioned above were studied theoretically and in practice.In theory, the literature and latest work of performance appraisal were investigated.In practice, we took X property insurance company in Shandong as an example, to study and improve the current PA system. This new designed PA system consist organization appraisal and personal appraisal, cover all the branch institutes, departments, and employees of the X insurance company. The indicators and weights in the PA system are analyzed and selected carefully, new cross-coordinate measurement method, objective and subjective indicators are also proposed.Apply this new designed PA system in the X insurance company has led to good results. Company has changed its management mode from the business-scale-oriented to the financial-profit-oriented mode, the operation mode and operation method also charged, and significantly improved the company achievement. The interest raised to a new level, the scale of insurance premium breakthrough, cash flow achieve a high growth. The market status and the competitiveness of the company rise steady.