M Company's Key Performance Indicators System

The operation and development of any organization are all for the basic purpose with reaching the performance target. Performance evaluation is an important part in the human resource management, which is to ascertain each worker's contribution to the organization in the fair and reasonable evaluation means, and is used as the standard to calculate the salary, welfare and incentive compensation. The key step is design of indicator, which makes sure the contents and the standards of performance evaluation to employee within the corporation. As a result, the effective index is the key which decides whether the performance appraisal is successful or unsuccessful.The " Key Performance Indicators "usually is used to reflect the driving factor of the corporation value, and measure the contributeon of individual or organization. With the Chinese business enterprise management system Connects with international, the system of KPI has been led into and apply extensively in business enterprise performance management of our country.Because the history of applicating the KPI is not long in our country business enterprise, characteristics, function comprehension to the KPI contain deviation in the business enterprise, therefore, the function of the KPI in the enterprises does not get to develop well, performance appraisal become formalistic. This paper is divided into five chapters, chapter 1 introduces the current background and the general situation of the case companies; chapter 2 analyzes the problems aiming at the problem of original performance in company, pointing out the necessity to lead into the KPI; chapter 3 expatiates the basic theories about the KPI system;Chapter 4 is a central part of this text to set up the system of KPI; chapter 5 points out the issue should be notice in application and the practice to the system of KPI. This article quote an instantce of M company to analyze the various limitation in the current performance appraisal indicator system in business enterprise, and discuss the principle of designing KPI, selecting indicator and application of KPI, and put forward some ways of solving these problems.