Performance Management: A Case Study Of Daqing Driling Engineering Company

As the establishment of a modern corporate structure in Chinese state-ownedenterprises gradually; performance management as the helpful tool to boost thesecorporates’ management efficiency is employed in the management practices ofthese state-owned enterprises. Definitely, it is the establishment and the applicationof performance management that enhanced these Chinese state-owned enterprises’comparative advantage on the world stage significantly. However, theoretically andpractically speaking, these mushroomed performance management projects inChinese state-owned economies are debated critically. These being reviewedprojects often lead us to a problematic discussion regarding the practical role ofthese newly emerged performance management institutions played in state-ownedcompanies. Rather, a clear and concrete out-looking performance managementinstitution may fail to promote state-owned companies’ economic performance invery many cases, for instance, Daqing Drilling Engineering Company (hereafterDDEC) in this context. Then, not only the why but also the how question is raised tofurther discuss potential problems and dilemmas of current performancemanagement institutions in this very case. That is, why this newly establishedperformance management system in DDEC fails to promote the corporate’smanagement performance and efficiency? Moreover, how to revise DDEC’s currentperformance management institution to achieve better corporate performance ininternational markets.In this project, the author is to review performance management theoreticallyto guide this empirical research, i.e. case study, the performance management ofDDEC. As for the empirical verification part, official documents regarding DDEC’sperformance management institution are to collect; and interviews with bothperformance managers and performance management participants are to conduct asempirical data to support this research on how to further revise performancemanagement system in DDEC to enhance the company’s efficiency. With respect tothe analytical framework, significant attention are paid to linking practice, i.e.analysis on DDEC’s performance management system, and theory, i.e. theoreticalframework of performance management in state-owned enterprises.In this research, the following problems are identified by the author as theobstacles of DDEC’s performance management system. That is,1) the problematicapplication of the qualitative evaluation results;2) the uneven application of theperformance management process; and3) the strong out-bonded indicators of the performance management process. However, in order to overcome these notedobstacles, the following procedures should be considered as the resolution. To bespecific, firstly, the operation model of this performance management systemshould be improved. Secondly, these key indicators should be re-formularized tofurther accommodate the proposed performance management system. Thirdly, theimplementation of the performance management system should be formalized.Furthermore, the supplementary measures should be taken seriously to assure theimplementation of performance management system.To sum up, it is worth noticing that this specific case，i.e. Daqing DrillingEngineering Company is an appropriate starting point to discuss newly establishedperformance management institution in China’s state-owned economies; due to thefact that DDEC is an emerging state-own economy in the post-market reform era ofChina.