The Study On The Implementation Of Performance Appraisal Of K Accounting Firm

Since the 1990‘s, Economic Globalization has become a trend. With the deepening of Reform and Opening, China‘s economic development emerged a new situation. The markets became vibrant and the economy grew fast. Under such circumstances, foreign accounting firms dashed into China, providing professional services with high quality to the domestic state-owned enterprises, foreign-funded enterprises and private-owned enterprises. As one of the world‘s ―Big Four‖ accounting firms, K Accounting firm demand higher requirements for their talents‘ professional ethics, professionalism and devotion. For companies like accounting firms, whose main business is providing professional services, talent is the biggest asset to the firm. Competition among accounting firms is ultimately a competition of human resources. Therefore, the selection, training and retention of the talents are particularly important. Performance management is a key way to ensure that the company keeps the fertile talents. Due to the development for many years in other countries, K Accounting Firm has a mature performance management system for its employees. However, the implementation of this system in China is not very satisfactory. The employees do not really understand the firm‘s performance management system. The communication regarding the performance issues between managers and employees is not sufficient. The performance appraisal is not objective with untimely feedback which falls into a mere formality. These are the problems that the implementation of K Accounting Firm‘s performance management is facing. Through the effective implementation of performance appraisal, managers can evaluate the effectiveness of the company’s management from the results of the employees‘ performance appraisal, in a timely manner in order to adjust or improve the company’s operation and management strategies to achieve maximum of the effectiveness of human resources, so that the company survives in the fierce market competition.This dissertation adopts two research methods, document analysis and questionnaire survey, to study on the implementation of K Accounting Firm‘s performance appraisal. Three problems were diagnosed in the implementation of K Accounting Firm‘s performance appraisal: Insufficiently objective and accurate evaluation, untimely feedback and formality. The causes were analyzed as: differences in values, working pressure and inadequate training.Considering the actual practice of the performance appraisal in K Accounting Firm, this dissertation put forwards specific measures for improvement: the firm should stress the importance of communication; in the performance evaluation process, managers and employees should actively communicate and timely feedback; the firm should enhance the performance management training for both employees and managers; in the meanwhile, the firm should adopt a variety of ways to effectively utilize the results of performance evaluation. Hopefully this dissertation is able to help K Accounting Firm to improve its effectiveness of performance evaluation and also means something to the localization of performance management for foreign companies in China, especially for the foreign accounting firms.