The Research Of Constructing LH Company’s Performance Evaluation System Based On Balanced Score Card

The current China’s economic development has gradually slowed down, inter enterprise competition is more intense, especially machinery manufacturing enterprises, is facing rising labor costs, market sale is poor, poor corporate governance and other pressures and problems. This requires machinery manufacturing enterprises to continuously improve their own management system, in order to cope with various pressures and problems. Performance evaluation system as an important part of enterprise management, combined with the actual situation of enterprises, can help enterprises to break through the bottleneck, improve their competitiveness, and promote the sustainable development of enterprises. Through the study of LH company, balanced score card, the advanced performance management tools into the enterprise performance management, to improve the enterprise’s competitiveness, and improve enterprise management level, promote the sustainable development of enterprises play a crucial role.LH company to build a reasonable performance evaluation system, we must first find out the enterprise’s own situation, can use the questionnaire survey and qualitative interview method. But also have the sufficient theory instruction, may use the literature research method and the case analysis method to obtain the related literature material.The construction of the new performance evaluation system must follow a certain process. First find out the existing problems in the performance evaluation system of LH company, and then analyze the reasons for these problems. And then analyzes the necessity and feasibility of introducing the Balanced Scorecard into LH company, which is a good way to build a new performance evaluation system. The next step is to build a new performance evaluation system, including the determination of corporate strategic themes, drawing strategic map, select the enterprise performance evaluation indicators and the use of analytic hierarchy process to determine the weight of indicators. In order to ensure the smooth implementation of the new performance evaluation system, it is necessary to do the preparatory work before the implementation, the results of the performance evaluation should be timely feedback and application.There is a certain degree of innovation in the research process. In the aspects of the choice of indicators, the selection of the reflected in some of the indicators of the characteristics of the company, such as fixed asset turnover rate, equipment utilization rate, completion rate of production plan, inventory turnover rate and so on, also take the market as the guidance, the introduction of customer evaluation index, such as customer complaint rate, complaint timely disposal rate, on time delivery rate etc. In the index weight distribution, using the analytic hierarchy process to analyze the importance of the indicators in this level, compared with the previous experience and interview method, there is a certain degree of innovation. In the implementation of the new performance evaluation system, the innovation of the four dimensions of the balanced scorecard, the development of safeguard measures. However, due to the limitations of their own experience and academic level, there are many deficiencies in the research process, please experts teachers.Finally, through the study we can draw the following conclusions: The balanced scorecard model can play a huge advantage in the machinery manufacturing companies, and the balanced scorecard is an effective tool for performance evaluation. Need to pay attention to is that the balanced scorecard is just for the enterprise to provide a performance evaluation framework, in the specific application must be combined with the actual situation of enterprises. In addition, the study also provides some reference for other enterprises in the same industry.