The Research Of Performance Appraisal System Design And Application Based On The BSC And KPI

Under the process of the state owned enterprises(SOEs)reform in the northeast of China,the Ansteel Group,as a pilot of the reforming SOE,has launched a series of policies to improve profitability.As a core department of the Ansteel Group in charge of telecommunication service,the Ansteel Automation Company Limited is under the pressure of a number of the institutional issues.Consistent with the main objective of the Ansteel Group and advance the knowledge-based ideology,it is essential to establish an evaluation system to be competitive on the markets.Meanwhile,the efficiency of such a system is also a main vehicle for Ansteel Automation Company Limited to achieve an improved management.This paper first introduces the background and significance of the research,as well as the Balanced Score Card(BSC)and Key Performance Indicator(KPI)which are the most widely used evaluation systems.Then,this paper describes the current evaluation system used in Ansteel Automation Company Limited and its weaknesses.According to the standard procedure of establishing an evaluation system and the feature of the Ansteel Automation Company Limited,this paper aims to design the development strategy and organization restructure.Based on the four aspects of the BSC,we partition the strategic objectives and extract the key successful factors,to form a key evaluation indicator at both the department level and the individual level.Then,using the analytic hierarchy process(AHP)to obtain the weight of the indicator,and develop the application and effectiveness of the evaluation system which is suitable for Ansteel Automation Company Limited.The proposed evaluation system has been applied in Ansteel Automation Company Limited for about one year,and the effectiveness of this system could be evaluated based on the questionnaire.The conclusions show that this system is effective to improve the performance,which could be generalized to other peers.However,some limitations are also noted.