Performance Evaluation. Operators

Along with the establishment of modern enterprise system and the separation of the enterprise ownership and the management power, the enterprise executives' benefit becomes different from the owners' benefit. According to the assumption of "economic man" and "opportunism behavior", and the disproportional control of information between the executives and owners, it is possible that the executives manage the enterprise for the sake of their own interests and not for owners' benefit. The phenomenon is widespread in our country because there are many state-owned enterprises, which lack the absolute owners. How to make executives maximize the enterprise value is a difficult problem for numerous theories scholars. The reasonable executives' performance appraisal is the key to settle the problem. The executives get their reward based on the appraisal, which make the executives' benefit become in accordance with the owners' benefit. In a word, the foundation of the executives' performance appraisal system is significant.This thesis is to analyze using what measures to evaluate the directorates' and managers' performance can make the executive's benefit keep accordant with the shareholders'.This thesis is composed of three parts:I. Introducing the basic concepts and theories for the executives' performance appraisal. This part commences from the meanings of the executives' performance; clarifies the relations between the evaluation and three theories including principle-agent theory, motivation theory and strategy management theory; and further analyzes the factors of the performance appraisal system.II. Introducing the development and the evaluation of the executives'performance indices. This part points out that the establishment of the executives' performance appraisal index system can make use of the enterprise evaluation indices; then elaborates the traditional indices' limitation; further analyzes the development of the performance appraisal index system including The State-owned Capital Effect Evaluation, EVA (Economic Value Added) and The Balanced Scorecard, which are significant for the establishment of the executives' performance appraisal index system frame.III. Researching the executives' performance appraisal index frame. This part firstly analyzes the quality principle and the concrete principle for the index system and gets a conclusion that the index system is a system with the mix of many financial indices and non-financial indices; then analyzes the financial indices' choosing principle and the non-financial indices' choosing principle; finally, establishes the index frame, which makes use of The Balanced Scorecard's frame and includes The State-owned Capital Effect Evaluation's financial indices and EVA.