A Study On The Performance Evaluation System In Geermu Refinery Based On The Balanced Scorecard

In China, the petroleum enterprises have carried out strategic restructuring and international operation strategy, and now they accelerate the process. The petroleum enterprises play a crucial role in the traditional energy in China. Concerning the problems such as the press of petroleum consumption in China and the difficulty of implementing the standards of the state-owned enterprises’ performance evaluation index, the paper puts forward the balanced scorecard framework specially owned by the petroleum enterprises mainly based on the development of performance evaluation system in China, focusing on security and the environment.First, this paper elaborates the research background, objectives, significance, contents, methods and prospective contribution. Second, it introduces the domestic and foreign research status and related theories of the performance evaluation and balanced scorecard. Third, it introduces the status of the performance evaluation system and the existing problems in Geermu Refinery, and it demonstrates the necessity of introducing balanced scorecard framework to establish the staff performance evaluation system in Geermu Refinery. Fourth, considering the above issues of performance evaluation system in Geermu Refinery, this paper introduces the thought of balanced scorecard framework into the performance evaluation system of Geermu Refinery on the basis of the existing performance evaluation theory by combining the petroleum enterprises’own characteristics. A new thought is proposed to improve the performance evaluation of Geermu Refinery from the perspective of the industry chain of petroleum enterprises, providing certain significant exploration and supplement in order to improve the theory and practice of the performance evaluation of petroleum enterprises. Finally, it summarizes the new thought of the performance evaluation system of Geermu Refinery and comes up with some relevant policy suggestions. There are two prospective contributions in the paper:First is the traditional balanced scorecard framework including four layers of finance, clients, internal business process as well as learning and growth. Owing to the particularity of the petroleum industry, we should not only create more values but also ensure production safety and environmental conservation for survival and development. Therefore, the paper specially reflects the issue of security and environment upon the original balanced scorecard framework system. Second is that the industry chain of petroleum enterprise can be basically divided into three parts. The upstream is focused on the exploitation and procurement of crude oil and natural gas. The midstream is to process and produce the petrochemicals by taking crude oil and natural gas as the materials. And the downstream is to further process on the basis of petrochemicals and by-products. Combined with the case analysis, of which the unit belongs to the midstream. The paper believes that the clients of the downstream industry chain are not the entire ones and we should include the suppliers and construction and service team from the upstream. This paper summarizes the above contents into cooperation level to make the balanced scorecard framework more comprehensive, integrated and practical.