Performance Management System Design For XD Company

Performance management can ensure that employee behavior is consistent withorganizational goals. It is an important part of human resource management inenterprise. The key to obtain sustainable competitiveness is the way to maximize therole of human resource management as company’s greatest resource througheffective performance management. Substantively speaking, effective performancemanagement is a process that can improve employees’ performance, ensure thetarget of sectors or companies and help to well development of employees’ personalcareer through continuous and dynamic communicate. From the goal of performancemanagement, the ultimate goal is to improve and enhance staff performance, achievestaff value and accomplishment in promoting implement of enterprise businessobjectives. In summary, the way to ensure the orderly development of performancemanagement work and the key to implement people management is theestablishment of a sound and effective performance management system.Natural gas is an important national energy sector and has importantsignificance for normal development of China’s economy. With continuous reformof China’s economy system, the state open up control of the downstream natural gasindustry, and a large number of foreign capital enters strongly, as well as privateenterprises to join, so that market competition of the downstream gas industry isbecoming increasingly fierce. China’s private enterprises must continuouslyimprove their competitive strength to get position in fierce competition. As regionalprivate enterprise in China’s downstream gas industry XD company faces more andmore competition and challenges in the process of operation. So in order to obtainbetter development, company needs to reform its strategy and operationalmanagement. Performance management as an important part of modern enterpriseoperational management system naturally becomes focus of XD company. Only tochange performance management method as soon as possible and build new strategic oriented performance management system can company obtain sustaineddevelopment with many strong opponents’ challenge.In this dissertation, we research and analysis the main problems at current stageof XD company based on theory of performance management, and propose newperformance management system based on Balanced Score Card with corporatestrategy as orientation. Then, we apply Balanced Score Card and key performanceindicators method to establish company, departments and individual keyperformance indicators system, and then decompose company’s strategic objectiveslayer by layer, and ultimately implement to specific sectors and individuals. In theprocess of objectives decomposition, we mainly adopt “moon map” approach todetermine weights, and define the focus of indicator assessment according to thesize of weights. The way to the key links of the program and process design providegood operability for implementing corporate performance management. Finally,some specific safeguard actions and recommendations are proposed for XDcompany to implement performance management program effectively.