Strategic Performance Appraisal And Management In Real Estate Companies

Strategic performance management is the general development trend of performance management.Strategy-based performance appraisal and management have been extensively used by various organizations such as governments,militaries,schools and companies.Chinese real estate enterprises are no exception.In Chinese real estate industry,large and medium-sized real estate companies like Vanke,Wanda,Greenland,Gemdale,Sunco,Country Garden,HNA Real Estate and Evergrande all use performance systems fitting for themselves.During the process,they also met many problems concerning performance appraisal and management while achieving their strategic goals.By analyzing and solving these problems in time,real estate companies can enhance their performance management level and enhance their core competitiveness on one hand,and performance appraisal methods and performance management theories can be enriched and improved on the other hand.So it is of high theoretical and practice significances.The Chinese real estate enterprises have two main topics in the process of development,one is external business and the other one is internal management.The external business is to study and adapt to the changing macroeconomic environment,integrate external resources and promote enterprises growth.The internal management is to improve enterprise's management level,and organize internal power in order torealize the strategic targets effectively.After more than 20 years' development,many Chinese real estate enterprises have begun scale operation and cross-regional development.These enterprises are facing new challenges of performance appraisal and management.How to build effective performance appraisal and management system has become the key problem for real estate enterprises.Therefore,this thesis focuses on this problem.This thesis is composed of five chapter.Chapter One is introduction.It firstly explained the reason and significance of selection of this subject,introduced the current research status,and elaborated research idea,research methodology,technical route,research content,framework of this thesis and possible contributions and deficiencies.In chapter two,this part introduced the development history of performance appraisal and management,explained the basic theories of performance,performance appraisal and performance management,analyzed the peculiarity and applicability of popular performance management methods,such as objective management,key performance indicator and balance score card.This part also made a ground-breaking analysis on specialties of performance appraisal and management of real estate industry,and summarized practical experience of performance appraisal and management in domestic and international companies.Introduction of basic theories and summary of practical experience laid a solid theoretical foundation for this thesis.In chapter three,this part firstly made a brief description of history,current situation,organizational structure,development strategies and performance appraisal of Company WW,and then made a detailed elaboration of the performance management target,principles and range of application of the current performance appraisal and management system of Company WW,the performance indicator system,performance appraisal relations and implementation of performance management,and further,it also made a detailed analysis of the problems in the current performance appraisal and management system.After the above analysis,this thesis pointed out that Company WW's problems in performance appraisal and management,in particular the problem of centralization and decentralization between the head company and project companies and the neglect of project life-cycle performance appraisal and management,are representative and common.Therefore,solving these problems has both theoretical meanings and practical meanings.In Chapter four,this part analyzed Company WW's problem of centralization and decentralization between the head company and project companies and neglect of project life-cycle performance appraisal and management,and proposed a preliminary idea of management reform.This idea made an overall use of popular performance management tools for project performance appraisal and management.We considered that the solution for Company WW also applies to large and medium-sized real estate companies which operate in multiple regions,have many subsidiaries and many development projects.Chapter five is a summary of the main contents of this thesis and conclusion.The idea of management reform and the project performance management solution presented in this thesis are on a theoretical level and have not been verified in practice.The feasibility and significance need to be tested,revised and improved in performance management practices of real estate companies.This is the study direction of this subject in future.This thesis summarized various performance management methods and analyzed the present situation of performance management.This thesis took Company WW as an example,studied the performance appraisal and management system of real estate project companies.It analyzed the problems existing in the performance appraisal and management system of Company WW,and designed a new performance appraisal and management system which is suitable for mature real estate companies.The system is based on corporate strategy,including four dimensions,which are finance,customer,internal operations and learning.From planning and building the index system of performance,controlling of the performance management,to the performance evaluation and performance results application,all these steps formed a complete performance management process,to ensure the realization of company goals.