M Company Performance Management System Re-design Research

M company is a trading company with the main business of saling electronic components. Main positions in this company is sales, marketing and supporting (including Human Resources, Accounting, General Affairs etc). When facing big impact of high turnover ratio and great challenge from market, M company chose to review its performance appraisal system to adapt new changes and challenges.Nowadays in Coorperate Management filed, Human Resources has attracted more and more attention as a more important management element, being the most important tool to evaluate staff performance and the contribution to the coorperate, performance appraisal has been recognized by more and more managers. This paper discuss related theory with actual cases to analyse the performance appraisal system of M company, and reach a conclusion that in M company, performance appraisal system base on competency is a better way to solve existing issue and to face future challenges.