The Design Of Performance Apprasisal System Of Sales Department Based On Balanced Scorecard And Key Performance Indicator In TX Company

In the modern era，the competition among enterprises is essentially the competence ofmarket. And sales staff plays a decisive role in this battle. Therefore, how to manage andincentive sales effectively is the vital problem enterprises must deal with. As an importantpart in human resource management, appraisal could be a critical tool to guidelineemployees’ behaviors, and to stimulate their creative and innovation. As a whole, designingand building the performance appraisal system of sales staff is the important way toimprove the overall performance and to achieve sustainable development of enterprises.In this paper, by comparative studies and qualitative analysis methods, after examiningthe existing performance appraisal and related theories, this paper sets up a new andadvanced performance appraisal system which combines BSC and KPI theories all together,based on the comprehensive analysis on the current performance appraisal methods in salesdepartment in TX Company. During the process, the paper takes the Balanced Scorecardtheory as the main framework which is conducive to achieve the balance of financialindicators and non-financial indicators, and the equilibrium of short-term benefits andlong-term interests in enterprise, and adopts the Key Performance Indicator theory as aconcrete tool, which owns the advantage of decomposing and qualifying indicators.The paper consists of six chapters. The first chapter explains the background, themeaning, the methods, and the framework of the paper. The second chapter refers to therelevant theories of performance evaluation, and introduces the common methods ofperformance appraisal, including MBO, BSC, and KPI. In the third and fourth chapter, thepaper refers to the state of TX Company and its sales department, and then analyzes thecurrent performance evaluation system in sales department. The fifth chapter shows theprocedure of designing the performance appraisal system, and identifies the overallframework of the system, getting the critical success factors from four areas of financial,customer, internal processes, and learning and development; and decompose and qualify thekey performance indicators for each critical success factors through KPI, and then form theperformance appraisal index system of all levels in the sales department. The sixth chapterelaborates the reflection and summary of designing the sales performance appraisal systemin TX Company.