Research On Improving The Performance Evaluation Project Of Manager In HIMC

As the development of the market economy, the state-owned enterprise(SOE)s’ management system has gradually improved. In the Third Plenary Session of the 18th Central Committee of the CPC, it’s brought up that a healthy professional managers system and a long-term effective motivation and restriction system should be established. And the compensation management system for the managers in SOEs should be improved, too.Huizhou Investment and Management Company (HIMC) has implemented the evaluation of the operating performance since 2007. Through the evaluation, the enterprise’s potential has been stimulated and the performance has been improved. As the company expanded, some series problems on the former evaluation system has gradually exposed, like the unreasonable index setting and inadequate measures on compensation’s motivation and restriction. In this paper, the problems in performance evaluation system of HIMC will be thoroughly analyzed. A rational performance evaluation system will be suggested for HIMC’s managers by learning scientific measures from both here and abroad, as well as the measurements in central enterprises and provincial SOEs.The main contents are as follows:first of all, the performance evaluation index system will be rebuilt. According to the theory the Balanced Score Card (BSC) and theory Economy Added Value (EAV), the basic frame includes four aspects, that is, financial, customer, internal processes and innovation and learning, concerning with the enterprise’s overall strategic plan. EVA will be adapted as the main financial evaluation index and the result will be re-evaluated under a new measurement. Second, the paper makes an explanation on how to implement the new performance evaluation project. It will also explain the organization and standard in the course of the performance evaluation and both possible problems and solutions. At last, by analyzing the example of a solely SOE-Hongyuan Water Supply Company, the paper comes to a conclusion that the new performance evaluation system is more scientific and applicable and it is easier and more effective to inspect the manager’s operating result. Besides, it can also improve the enterprise’s performance and competitiveness. Last but not the least, the weakness of the new evaluation system will be presented and the way for further research will arise.