Design Of The M Enterprise Key Performance Indicator System

Over the last few decades, executives have gradually recognized the importance of human resource management which is a basis of competitive advantage. Performance management is one of the significant means for accomplishing corporate strategy. Moreover, performance appraisal is the essential part of performance management.The performance target is the strong guarantee and necessary part for the operation and development of any organization. Performance evaluation is an important module in the human resource management, which aims to find out each worker's contribution to the organization in the fair and reasonable evaluation means, and is used as the principle to calculate the salary, welfare and incentive compensation.The design of indicator is a significant step in the application of evaluation system, which determines the contents and the standards of employment performance evaluation in the corporation. As a result, the effective index is the key which leads to the success of performance appraisal. The "Key Performance Indicators" (KPI) is often used to reflect the driving factor of the corporation value and to measure the contribution of any individual or organization. As the Chinese business enterprise management system is a part of the global system, the KPI has been widely used in our country. Because the history of the application of the KPI in our country is not long, the business enterprises are lack of the comprehension of the characteristics, functions and meanings of the KPI, the KPI in the enterprises does not get well development, and performance appraisal became formalistic.This dissertation is divided into six chapters. Chapter 1 introduces the purpose and significance of the research and reviews the literature of the domestic and foreign researches. Chapter 2 explains the basic theories of the KPI system. Chapter 3 analyzes the original performance in the company, discusses the problems of it and points out the necessity of leading into the KPI. Chapter 4 is the essential part of this dissertation, establishing the system of KPI. Chapter 5 indicates the M company's implementation of the new system and the application of it. This dissertation ends with a conclusion in Chapter 6.This dissertation takes the performance appraisal of M company as an example and considers both the theory and practice in order to analyze the various limitations in the current performance appraisal indicator system in business enterprise. It is based on the principle of designing KPI, selecting indicator and application of KPI. Finally it raises some possible solutions for the problems of M company.