| There has always been many differences between the companies all over the world,among departments in a organization, and especially among employee in the corporation. Some statistical data has proved that the practice of performance management has influenced financial performance of a company evidently.A lot of companies are implementing performance management, and most companies in Chinese use maneuverable methods, such as Employee Comparison System, Graphic Rating Scale, Behaviorally Anchored Rating Scale and Behavior Observation Scale, in which Graphic Rating Scale is the most widespread. Chinese companies use qualitative and quantitative methods at the same time, and quantitative indexes are more than qualitative ones. While most of Fortune 500 companies use Management By Object, Balanced Score Card (BSC) , Key Performance Indicator or/ and 360-Degree Performance Management System, and 80 percent of which use BSC with the development of BSC in the most ten years.Human Resource Departments have been inventing many system methods and various indexes, but the situation of confusion made by so many indexes has been excluding many companies desired for better performance in one hand, the disbelieving and complaining of performance evaluation methods are full in many companies including in most Fortune 500 companies.It has been proved that it cannot meet companies with applying any performance evaluation method or a suit of indexes mechanically by management practice, then what should we do to set up a performance management system suitable for companies? Breaking the worship at BSC of many people, this paper analyses some characters of high effective performance management methods, finds some regular mistakes in performance management and the preventiveness for them from the start of the purposes of performance management and the characters of performance management indexes.In the end, the paper advances a innovative project for bettering traditional performance management systems of Chinese companies in her actual conditions in the case of operation ensuring filiale of Jinzhou Petrochemical Corporation in China National Petroleum Corporation. |