Eva Value Management Evaluation System To Explore

The proper inspection target and incentive mechanism are the key elements to influence the value of an enterprise and the actions of its managers and employee. To get the biggest value of an enterprise, the investors and handlers are looking for the best inspection target and incentive mechanism. The best two of them are EVA (Economic Value Added) and BSC (Balanced Scorecard). At the same time, EVA and BSC have their own advantages and disadvantages. Through an instance, the paper analyses how to combine EVA with BSC to build a value guided appraisal system.The first chapter introduces the background of the paper. It shows the history and the status of studying and using of EVA.The second chapter analyses the advantages and disadvantages of traditional achievement appraisal system, KPI, BSC and EVA and gives the value managing theory of EVA.The third chapter introduces the theory of EVA and the calculating rules in detail and discusses the meaning, precondition and steps of actualizing EVA. It gets the result that the EVA is the inspection target according with the value managing requirements. It also shows the localizations of EVA. It shows that EVA and BSC have strong complementarities.The fourth chapter analyses the managing status of Baosteel enterprise and discusses how to put the idea of EVA into the current BSC achievement appraisal system. It points out that the most important thing is to design the salary incentive mechanism based on the EVA.Again, the paper affirms the meaning and feasibility of EVA by analyzing the EVA theory and how to actualize it. Because the compatible one is the best one, any enterprise can build its own appraisal system according to their own situations.