Study On The Establishment Of Performance Management System As The Core Of KPI For Jilin Gold Company

After China joined WTO, with foreign capital market gradually enteringdomestic market, our enterprises are confronted with strikes from advanced foreignmanagement philosophy,and those previous conservative management modes hardlycan meet current demands of market economy. Due to the competition pressure fromforeign enterprises, to learn from those advanced foreign management mode andexplore management philosophy which matches local enterprises are indispensable.Only after management mode is improved, can local enterprises break routine andeliminate limitation, thereby competitiveness of state-owned enterprises can beenhanced. Since oversea market is significantly different from domestic market, whenintroducing and applying advanced foreign management mode, we are facing theproblem of “non-acclimatization”. Among all management philosophies,management of human resources proves most controversial, and performancemanagement, one of the six component parts of human resources management, turnsout to be a wicked issue of human resources management. Methods for performancemanagement do have a great variety, but the question which one is the mostappropriate has been always bewildering different types of operation managers.Jilin Gold Company, subordinate to the central enterprise of China NationalGold Group, now is facing the management malady that every traditional state-ownedenterprise faces: on human resources management, company is not comparable tothose foreign-funded enterprises, while such kind of malady is gradually penetratinginto every aspect of company, and it has become a stumbling block against furtherdevelopment of enterprise. Only after traditional mode of human resourcesmanagement is broken through, can the superior advantage of corporate humanresources capital be brought into play. The performance management system ofenterprise not only involves rewards, punishment and promotions of employees, but also is closely related to the long-term development of corporate strategy. Jilin GoldCompany desperately requires for a performance management system that suits itslong-term development. The system plays a vital part in the development andexpansion of enterprise.The paper, through studies of a huge number of references and collection ofrelevant data information in company, adopts Documentary Method and CaseAnalyzing Method to give an introduction to the current performance managementsystem of Jilin Gold Company, then carries out systematic analysis of those problemsthat exist in system; adopts Questionnaire Survey Method to further analyze theinfluence degree of following problems; adopts Experimental Summary Method toput forward recommended solutions to performance management system, so as tostudy and discuss how to establish a performance management system that sets KPIas its core. Basic structure of this paper: in chapter one, topic background andsignificance are raised, research thread and method for Jilin Gold Companyperformance management system are listed; in chapter two, current situation andexisting problems of Jilin Gold Company performance management system areintroduced; in chapter three, causes are analyzed in different directions of theproposed problems in chapter two; in chapter four, start from the perspective ofcorporate strategy and design out the performance management system with KPI asits core.Conclusions drawn in this paper are as follows: in order to ensure long-term,stable and healthful development of Jilin Gold Company, enterprise needs to establishsuitable performance management system as soon as possible. The system is based onKPI management method, thereby it better fits the strategic direction of enterprise.Through layer-upon-layer division of corporate strategic goals into each employee,corporate performance and staff performance can finally take off.Realistic meanings of this paper: the construction of a performance managementsystem, which sets KPI as the core, can not only help accomplish the long-termprospect of enterprise, but also realize person-post matching and every staff’sself-discipline. Via complete performance system, staffs can continually enhance andimprove self skills, adapt to the requirement of market economy, and bring promising future to enterprise.