The Research On The Improvement Of Company A's Performance Appraisal System

Under the background of economic globalization in the 21st century,The theme of contemporary management accounting is the cultivation of core competence of enterprises.The purpose is to improve the company's economic efficiency.The development of right talents and non-imitation core competence has become increasingly important for enterprises to stand out in the fierce competition.Performance evaluation is the basic premise of enterprise management.With performance appraisal and motivation,we can better motivate the potential of talents and realize the financial and strategic objectives.Although most enterprises have set up the performance appraisal system,the research leading by government shows that many are not working well in fact.The design of performance appraisal not closely related to company's strategic goals,imperfect performance appraisal system,improper performance assessment and communication,and lack of execution result in the absence of belonging.The performance appraisal system cannot play its role,such as the function of incentive,the proper reflection of contribution and the realization of enterprise strategic goal.Therefore,how to build or improve the performance appraisal system to make it more suitable for the company and more convenient for daily management,has become a major concern of many enterprises.Company A of state-owned is chosen as an example.It is found that the arrangement of the assessment process is unreasonable,the assessment is not comprehensive,the indicator setting lacks incentive,the assessment standard adjustment cannot keep up with the changes,and so on,divided into design and execution two aspects,by analyzing its performance appraisal system.For these questions,based on the current strategic objectives of company A,decomposing the target,finding key points and factors which have effects on sub-goal realization,selecting key indicators preliminarily by means of key performance indicators method,and collecting these indicators together.Performance appraisal is generally divided into three levels,including corporate,department and individual level.Due to departments play important roles like bridges,the paper focuses on the improvement of departmental performance appraisal system.On the basis of the Balanced Scorecard,use the selected evaluation index to build departmental evaluation system.And then,extract the corresponding indicators classified into financial,customer,internal process,learning and growth four aspects,eliminate corporate level indicators,and distribute different indicators to different relevant departments by taking into account the department functions.Last,determine the index weight through expert scoring method and analytic hierarchy process.The performance appraisal system,which is reasonable,scientific and close to practical situation,will help to achieve the strategic goals of company A,standardize daily operation,risk prevention and control of real-time,strengthen the customer contact,improve the staffs sense of belonging,and enhance the company's ability.The starting point of the performance appraisal system is the company strategy that emphasis on strategy,goal-oriented management,combination of financial and non financial dimension assessment.It's more comprehensive and contacts the company's strategy with performance appraisal closely.But things change quickly,the performance appraisal system should be optimized and redesigned constantly if the firm faces new changes.This paper just provides a reference for the improvement of the company A's performance appraisal system.