Establishment Of Farmers’ Cooperatives Performance Evaluation System Based On BSC

As the market of agricultural products changed from seller’s to buyer’s market,and with the process of agricultural industrialization, the individual farmers pushed tothe forefront of the market lack the ability to deal with fierce competitionindependently. In this context, cooperatives emerge as a mutual aid organization toorganize farmers into market and to promote agricultural industrialization and theharmonious construction of urban and rural areas, and also help to increase farmers’income. However, farmers’ cooperatives still have many problems, the lag in theresearch of its performance evaluation is one of the deep causes, so establishing ascientific farmers’ cooperatives performance evaluation system has vital significance.To solve the above proposition, this paper researched the existing literature aboutthe performance evaluation of cooperatives and found out that it divided into twomain categories: one is based on the “three surplus” theory and the other is based onthe “input-output” theory, but these performance evaluation system disconnect withthe strategy of cooperatives and failed to reflect its innovation ability. In order tomake the system effectively reflect the cooperatives’ strategic objectives and itsinnovation ability, this paper establishes a performance evaluation system by usingthe basic principle of BSC for cooperatives. After analyzing the feasibility andsignificance of BSC application, this paper establishes a performance evaluationsystem including4target layers which is financial, customer, internal core processand the learning and growth,10criterion layers of25indicators. Besides, the paperuses the AHP to endow the performance evaluation indicators with weight andcalculates the scores according to each index’s score that after dimensionless and thegiven weight, then determine the level of performance of cooperatives.In order to operate the performance evaluation index effectively, government andcooperatives should strengthen the propaganda and education, the government shouldincrease the support of fiscal, financial, tax and other aspects, and cooperativesshould also improve the talent developing management mechanism containedintroduction, training, incentive and guarantee, and sound its governance and surplusdistribution mechanism. When selecting the model cooperatives, government shouldview this performance evaluation index as a reference to form the example strength.