Improvement Study Of Performance Management System Of Microfinance Institutions

Microfinance in the world of practice has lasted for 30 years, which plays a financial incentive and restraint mechanism to mobilize the enthusiasm of the poor by providing small loans to them and realizes the poor relief by an organic combination of financial transfer payments and innovation. As the Microfinance has posed a challenge on the traditional financial theory to a certain extent, this kind of Microfinance for the purpose of anti-poverty and promote development were welcomed by many developing countries from the date generated, and soon extended to Asia, Africa and Latin America, many developing countries. This article aims to make readers aware of sustainable development trend of Microfinance institutions by reviewing the development process of Microfinance and management of the status quo. The need for such an institution for sustainable development trend has led to Microfinance institutions need to implement staff performance management. Reached consensus on the above, this article will mainly address incentive performance management system design problems of Microfinance institutions. Through analyzing of the international development trends and the status of domestic development of Microfinance, learning from overseas success of the operation mechanism of micro-credit institutions and referring to the performance management methods of State-owned Commercial Banks, we try to establish a sustainable development-oriented performance management system before optimizing the organizational structure and allocating human resources rationally. Because A good performance management system should have the motivation, communication and evaluation of three important functions, we should use BSC (Balanced Scorecard), KPI(Key Performance Indicators) and MBO(Management By Objectives) as tools to establish a scientific system to achieve organizational goals from the design and implementation of the performance management system to the evaluation and management of the entire process. To sum up, micro-credit as an innovative financial system is the modern finance seasonal advantage of the opportunity of the inevitable trend. A well-designed key performance indicator system will enable microfinance institutions to effectively judge the performance of organizational governance. As the practice of Microfinance in China is only at an early stage, Microfinance institutions to explore the performance management system design are still in progress. But this does not affect their promotion and application, as China's market economy system matured gradually; Microfinance performance management system will continue to move toward perfection and maturity.