Manager's Performance Evaluation--Analysis On "Performance Evaluation Plan For Central Enterprise Responsible Persons"

The paper described the five key elements evaluation objectives, evaluation objects, evaluation measures, evaluation criterions and evaluation reports of Top Manager's performance evaluation system (PES), and appraised the success and weak factors in each of these five elements of "Performance Evaluation Provisional Plan for Central Enterprise Responsible Persons" by State-owned Assets Management Committee. To further understand the key elements of performance evaluation system, successful implementation and practice from foreign enterprises have been introduced, especially experiences of managing the state-owned enterprises.As the result of analysis and comparison, we suggested that Chinese state-owned enterprises should distinguish the objectives between enterprise performance/value and top managers performance evaluation system, clearly determine who should responsible for the performance of the enterprise, and establish modern corporate governance to structure the performance evaluation procedure. We also give some suggestion on improve the current PES plan to central enterprises. Multiple evaluation measures should match with the objectives; match between each other and emphasis the strategic roles of the measures. On determine evaluation standard, the budget management should take the main role, and benchmarking methods should be integrated. The reward designing for top managers should realize the real connection with the responsibilities of each manager, and make the incentive system more effective.