Changsha Cigarette Factories Performance Management Research

With the coming of knowledge economy era, human capital becomes the dominant element that increases value more than any other capital. The management of human resources and human capital is the center of enterprise management. Performance management is an effective method and critical success factor of human resources management. To keep pace with the intensification of the reforms in China tobacco industry, the cigarette industrial group of Hunan province carried a consolidation and reorganization, and Changsha Cigarette Factory (CCF) changed from an independent company to a manufacturing unit of China Tobacco Hunan Industrial Co., Ltd. How to implement an effective performance management system to stimulate the enthusiasm, initiative and creativity of the employees sufficiently and help the factory to achieve strategic competitiveness has become an urgent problem for CCF in this situation.Guided by the Key Performance Indicator theory and Balanced Score Card theory, the author analyzed the current performance management of Changsha Cigarette Factory, and some problems were found. The author proposed a complete performance management cycle including strategy analyzing, performance planning, performance checking, performance negotiating, performance evaluating and feedback was built, and set up a strategy-oriented hierarchy of Key Performance Indicators based on Balanced Score Card theory to fulfill the need of performance evaluation. The author also advised that great attention should be paid to guarantee the operation of the performance checking system from the corporation culture, structure and institutions, and pointed out further research should be carried in the direction about how the system should be combined with other module of the human resource and organization structure, performance procedure and corporate culture.The conclusion of this article provided a reference for CCF to modify the current performance management system so that it could gain competitive competency in the future.