A Study On KPI Applied In Performance Management Of M Company

As the core of human resource management, performance manangement is pivotal in practice. At this stage,in particular, it becomes matter of the utmost concern of management that How to assess the working conditions and performance of employees effectively, improve their initiative and creating potential,and achieve the companies'mission.It will not only improve management performance for businesses, improve administrative levels and save time for managers, and avoid the conflict and embarrassing caused by poor performance of employees,but also promote personal development, and help companies achieve strategic objectives by MBO and task implementation. However, to this day, the Chinese State-owned enterprises make less progress in the establishment of a new performance management system as a whole, and the prospects are dim.One of the prominent problems is performance indicators. Face the competition and challenges, if those enterprises cannot solve the problem and explore better approaches and tools as soon as possible, the improvement of the competitiveness will be severely restricted. Therefore, it is the prior question to solve for enterprrise and highly valued problem for rationales that how to establish the performance measurement indicators effectively.This article researchs typical problem of M company in performance indicators and analyses causes, and proposes a set of KPI-based performance management system. We hope we can provide clear specific ideas and solutions for the company or even construction enterprises in China in the performance tools.The article is divided into five sections. the first part is the introduction, it is a description of the background,meaning, methods and ideas, and it made a conclusion on basic theories of performance management and KPI; the second part analysed performance management problems and the causes on M corporate; the third part was the feasibility demonstration of using KPI tools to solve the dilemma of M's, and it presented the necessity of introducing KPI in M's performance management; the fourth part was specific path of establishing and applying the KPI in M's performance management; fifth part concluded on paper.