Based On The Research Of The Balanced Scorecard Performance Evaluation In Company A

Company A was founded in 1997,it has now been one of the largest and the most competitive Chinese painting equipment manufacturers.However,on the strength of rapid growth in business,an increasing number of issues which refer to performance management have been presented,as a result,those issues will potentially stunt the long-term organizational development.In today's highly informationized and globalized society,solely relying on current performance measurement system that could make company A fail to adapt to external market environment,eventually could have a negative impact on enhancing core competence and maximizing business value.Therefore,company A should be more concerned about financial and non-financial factors in designing performance evaluation system,and every effort should be made to improve evaluation system so as to increase competitiveness.This paper looks at the status quo of performance measurement system of company A,and focuses on creating Balanced Scorecard System for company A to resolve performance management issues.The main contents in this paper are as follow: first of all,a comprehensive literature review on performance management and balanced scorecard are given,especially on presenting a theoretical,rational,and empirical summary for performance evaluation and balance scorecard system,and ordinary methodologies in performance measurement as well.Secondly,according to a report on company A,some issues have been pointed out,additionally,the necessity and feasibility that balanced scorecard used in company A were analyzed.Thirdly,this paper designs Balanced Scorecard System under current development circumstances of company A.It not only lays emphasis on principles of Balanced Scorecard System construction,also on the operation of four dimensional performance evaluation system—financial,customer,internal business processes,and learning and growth which directed toward achieving an integrated organizational strategy.Furthermore,The composition of the hierarchy index under each dimension was discussed and the relevant weight was determined as well.As a result,the overall performance evaluation score of company A was 69.312.Additionally,on the basis of actual development of company A and the views of relevant industry experts on the rating,the results revealed that the performance evaluation level of company A was medium,also showed that the indicators of accounts receivable turnover ratio,asset-liability ratio,customer acquisition,R&D completion,after-sale efficiency and senior personnel attraction was relatively low.These financial data helps understand organizational performance of company A,specifically,high cost of capital,inadequate cash flow,lower level of R&D capability and talent attraction and staff education,and fewer front-line workers training opportunities.Consequently,company A should regularly monitor and evaluate the activities and status of implementation of the Balanced Scorecard,and continuously eliminate any deviation from the implementation process.Finally,based on the evaluation scores,a set of recommendations are made for company A to manage accounts receivable,and to establish a standardized and transparent reward and punishment mechanism so as to ensure fairness and impartialness of rules and regulations.