Performance Management Research In Investment And Finance Companies Directed By The Government

After35years of reform and opening-up, China’s social productivity, economic baseand comprehensive national strength have taken great changes. Especially in the recentdecade of urbanization, the industrial structure, the population of urban and rural areas aretaking significant changes. Local governments are trying to set up investment and financecompanies to change the situation of poor infrastructure for economic development and toresolve the problem of financial shortfall. The local government, as the main or onlyshareholder invests the companies via the land as the initial capital. And in return, thecompanies, on behalf of the government, will carry out large-scale projects in socialwelfare, urban infrastructure and people’s livelihood. These projects are normally mediumor long term investments with low return, which are not popular in market by the normalcommercial investors. This kind of companies, with the government as sole shareholder,not only pursue the maximum profit, but also focus on their functions on regionaleconomic development. On the beginning stage of setting up, the employees are mainlyfrom civil servants backgrounds, who work with strong bureaucratic style. In addition,this kind of companies have the responsibilities from the government but they have tooperate abiding by the rules of the competitive market which makes their performancemanagement more complicated compared with normal commercial companies. So far,there are not many successful theories of performance management for such kind ofcompanies with governmental and commercial functions in China or overseas. Therefore,this thesis uses this kind of investment and finance companies directed by government asthe research object and focuses on their performance management with the hope ofimproving management performance, the efficiency of the use of land resources andcooperation of employees.Thesis introduced the basic performance management theories, with investment andfinance companies directed by government as the research object. It proposes a method andits application in performance management system, the analysis of the balanced scorecard,KPI, target management in the application of performance indicators, introduces theimplementation of performance appraisal and performance management program. Theauthor has furthered D company for investigation and study, integrated use of literatureresearch, investigation methods, deductive and inductive methods, comparative analyses,in combination with quantitative and qualitative methods, with an attempt to assess Dcompany’s performance management situation and find out the problems of performance management and finally put forward reasonable suggestions to improve the performancemanagement in this kind of investment and finance companies directed by thegovernment..This thesis has shown the true picture of current performance management situationfor the investment and finance companies directed by government and made the conclusionof effectiveness of appraisal tools such as balanced scorecard, KPI and target managementfor such kind of companies. The innovation of the paper is the use of multiple tools for theappraisal rather than single method for this kind of special companies. It helps suchstated-owned companies’ transformation with meeting the requirement of the market andthe government under the direction of the Enterprise Transformation Development on the18th meeting of the Third Plenary Session.