Research On Management Performance Improvement Of FAW Axle Company

The third plenary session of the18th communiqué put forward:"public ownershipas the main body, a variety of ownership economy common development of the basiceconomic system. It is not only the important pillar of the socialist system with Chinesecharacteristics, but also the foundation of the socialist market economy. Both the publicsector and the non-public sector of the economy are important component parts of thesocialist market economy, both of them are important foundation of domestic economicand social development for our country. We must unswervingly consolidate anddevelop the public owned economy, adhere to the dominant position of the publicownership, to play the leading role of state-owned economy, state-owned economicvitality, constantly enhance control force and influence. We must unswervinglyencourage, support and guide non-public economic development, stimulate theeconomic vitality and creativity. And also to improve the property rights protectionsystem, develop the mixed ownership economy actively, in order to promotingstate-owned enterprises to improve the modern enterprise system and also to support thehealthy development of non-public economy". This part demonstrates the basic idea ofsocialist market economic structure for future from our Party, which not only clears thepublic ownership enterprises status in the socialist market economy, but also putforward higher requirements and hopes to the public ownership enterprises on makecontribution to the national economy.With the advent of market economy, China’s major state-owned enterprises arefacing global competition. In order to keep its leading position in the marketcompetition, the major enterprises is exploring how to improve relations between labor and capital, how to Improve personal performance,and how to implementation ofeffective compensation system to retain valuable employees.FAW Axle Company is an auto parts manufacturer, which has2,576employees.The company separate into two plants, south and north. The total area covers1,800,000square meters, and includes1,000,000square meters production area. It has2,000setsof equipment, including more than700sets of imports and CNC equipment. Thecompany has7production workshops,10function department, and more than90advanced production lines. Based on50years operating experience perfectly combinedwith modern technology, the manufacturing technology of the company is staying at thefront position of the domestic industry. More than that, The company’s products can notonly meet the needs of the domestic automobile manufacturers, but also exported toSouth Korea, Russia, India and other countries.The human resource management concept of the company is:“the staffdevelopment is the first thing. Establish employee potential development system andstepped up personnel training system. And created compensation based on performanceincentive systems. To ensure the valuable employees can work dignity, and live decent."With this kind of guiding ideology, when the companies focus on the employee’s abilitygrowing, pay more attention to the construction of incentive compensation system at thesame time, and constantly improve corporate performance management system.In this research, we analyzing the performance management from internal andexternal environment of FAW Axle Company, analysis the existing performancemanagement problems of the company in recent years, and also discussed theperformance appraisal methods and management system process of the new method.Moreover, this report analyzed the characters and advantages of the system, summed upthe problems in the performance management aspects. Based on all of the information, Icould work out the solutions to improve the enterprise’s performance managementsystem, and enhance the core competitiveness of the company.Through the analysis of the specific case study, we can get the followingconclusion: (1) The state-owned enterprises from the performance management mode isfeasible, can stimulate staff’s work enthusiasm, reduce business operating costs, theintroduction of performance management system will help the state-owned enterprisesto obtain more social benefits.(2)The overall goal of the enterprise can be assessment into several specificobjectives. In the process of index decomposition, people need to according to the realcondition of the company, and considering the specific situation of each department.And then, remove the index that is not suitable for the practical situation of thecompany. Finally, balance the internal and external relations of the companycomprehensively, in order to provide necessary support to achieve high speed andhealthy development of the company.(3) Performance management appraisal results can be used on incentivecompensation system and also to improve staff quality, enhance training opportunities,in order to meet the needs of enterprise long-term development, and give full play to theadvantages of long-term performance management.(4) The state-owned enterprise performance management method will be effectiveunder certain conditions, without the company overall level of human resourcesdevelopment and perfect organization, performance management cannot work smoothly.At the same time, the state-owned enterprise performance evaluation should take intoaccount of the value and culture of the company. Therefore, the company must based onthe overall strategy to develop the target of performance management.We hope that through this analysis and Research on FAW Axle Companyperformance management system, to find suitable solutions for state-owned enterprises,provide the reference for the similar companies, for researchers to ponder and theenlightenment.