The Establishment And Application Of Performance Evaluation System Of CY Company’s Subsidiaries

In 2017,National Tobacco Monopoly Bureau on Diversified Investment Management Conference called for the improvement of evaluation,incentives,and other mechanisms.In response to local conditions,and due to corporate policies,provincial companies ensure the efficient use of corporate governance.CY Company takes XS Hotel,YS Industrial Company and NH Property Company as research samples,and conducts research from the establishment of enterprise performance evaluation system.The establishment of enterprise performance evaluation system and adherence to classification assessment will help improve the efficiency of diversified companies,provide ideas for the basic management of Shaanxi tobacco diversified companies,and provide a theoretical basis for the rational allocation of resources and the establishment of a remuneration system.According to the requirements of CY Company,the data and characteristics of the subsidiaries,the company’s performance evaluation indicators were selected through consulting literature and researches.The reference documents such as SASAC(State-owned Assets Supervision and Administration Commission)and Shaanxi Tobacco Bureau were used to construct the enterprise performance evaluation index system.Among them,the basic indicators are based on financial performance and include indicators such as profitability,asset quality,debt risk,and development capabilities.Classification evaluation indicators for the hotel include average room rate,average occupancy rate,total labor productivity,revenue per available room,and average operating income per room.Classification evaluation indicators for the property management company include the proportion of labor costs,other operating income of the property as a percentage of total income,property fee collection rate,owner satisfaction,per capita output value.The Classification evaluation indicators for the retail company include unit square meter efficiency,average employee profitability,inventory turnover rate,sales volume,and average price.The weight of the enterprise performance evaluation system is obtained by combining the SASAC "Implementation Rules for Central EnterpriseComprehensive Performance Evaluation" and the entropy method.This article takes XS Hotel as an example to calculate its corporate performance evaluation scores from 2012 to 2016.At the same time,based on the 2016 annual reports of the three subsidiaries,the scores of their basic evaluation indicators were calculated,and the company’s operating results were analyzed.It can be seen from the changes in the corporate performance evaluation scores of XS Hotels from 2012 to 2016 that corporate development as a whole shows a clear downward trend and the overall development is uneven.The hotel’s profitability and development ability scores have declined rapidly,while the industry impact score has been relatively high.The comparison of the scores of the basic indicators of XS Hotels,NH Property Company and YS Industrial Company shows that the three subsidiaries have certain differences in the scores of the first-level indicators,and NH Property Company performed well in the total score of basic indicators.The NH Property Company performed well in terms of profitability,asset quality and development capabilities,while the Industrial Corporation performed more prominently in avoiding debt risks.Managers can carry out targeted management of enterprises through evaluation results,such as adjusting investment strategies and allocating resources.In response to the problems existing in the establishment of the enterprise performance evaluation system by CY Company and its wholly-owned subsidiaries,recommendations were put forward such as continuously updating corporate performance evaluation indicators.