Designing On Performance Management System For Construction Enterprises With BSC

Engineering construction industry is an essential industry related to the backboneand the people’s livelihood. It performs a significant role on promoting the economicdevelopment of our country and social progress. Facing increasing competition, animportant topic of realization of management upgrading has been raised by theconstruction enterprise how to establish scientific performance management system topromote realization of enterprise strategic target, further improve the transformationand upgrading of enterprises. Balanced scorecard performance management modelhas shown great superiority on the aspects of the theory and practice. Therefore, it hasa good practical significance to conduct the empirical research base on the balancedscorecard performance management.ZT Company is a large private engineering construction enterprise. Because ofsome unique characteristics of this industry, such as lack of correct recognition of theperformance management, gap of performance evaluation and company goals,management performance becomes the drawback of current management. Initially,this paper will introduce some theories related to performance management. In orderto provide theory foundation for the construction of the performance managementsystem, this paper will compare performance management methods which have beenwidely used nowadays. Then, according to the practical situation of ZT Company andrequirements of modern construction enterprise, it analysis problems exist in theperformance management system, which will helpful in the construction of theperformance management system. The body part of this paper will introduce theconstruction process of performance management system in ZT Company in allaspects, including set performance management reforming team; determinecompany’s strategy and future goal. Build key performance index system based onfour dimensions (financial dimensions, customer and market dimensions, internaloperation management dimensions, learning and development dimension), and threelevels (company level, department level, and position level). Processes also includemake key performance indicator by using hierarchy analysis process, clarify target ofthe key performance index, make rules for exam score, promote implementation innew performance management system, evaluate feedback, and improve the system.Moreover, this paper will discuss some safeguard measures during the progress ofimplement the new performance management system to gradually realiseinstitutionalization and standardization. This paper combines theory and practice together, uses both qualitative and quantitative analysis, which scientific and practical.The purpose of this paper is changing ZT Company’s current performancemanagement status by introducing the balanced scorecard. Through establishing ascientific and perfect performance management system, further enhance enterprise’smanagement ability and core competitive power. Meanwhile, hoping this paper canhelp domestic construction enterprises to improve the performance managementsystem and participate in a wider range of competition.