Zhangjiajie Tobacco Company Performance Management System Optimization Design

China’s tobacco industry is being increasingly competitive, as the advent of economic globalization. Hence, it has become a serious problem faced by tobacco business managers that, how to select applicable performance management tools and establish an effective performance management system, according to their corporate status and future development goals. Based on the specific industry background of the tobacco monopoly management system, this paper uses the performance management system of Zhangjiajie tobacco company as the study object. First, this study makes analysis of corporate performance management status through questionnaires and depth interviews, and then, this paper points out several issues, such as lacking a clear positioning of performance appraisal’s objectives, performance evaluation content is not in-depth and comprehensive, performance appraisal indicators are not specific enough and not truly focus on the progress, and so on. Second, by using BSC and KPI, this paper optimizes the design of company’s performance management system. According to their company strategy, we re-set the goal and principle of the system and set company-wide key performance indicators and their weights from the following four dimensions:financial, customer, internal operations, learning and growth, and then divide them down into departmental level indicators and job-level indicators.Last, this paper proposes the implementation process of this company’s new performance management system, i.e. performance plan formulation, performance implementation and management, performance appraisal, performance feedback interview, and performance results application. In addition, in order to better implement the new system, the company should also provide the appropriate guarantee system of organization, personnel, and culture.