Research Of Performance Measurement System Based On Q Company

The growth rate of China’s GDP has become slowly in recent years and our government announced that the development of China’s economic enters into a new stage. Meanwhile, the number of company in our country is becoming more and more year by year. As a result, the competition between companies will become fiercer than ever before. At the same time, the competitive advantage of tangible elements, such as capital, gradually disappear. However, human resource, as one of the most important intangible assets in company, plays an important role in the competition between companies. Meanwhile, as is known to all, performance measurement plays a direct role in promoting human resource management, and it will finally promote the value of human resource in the company. Thus, both domestic and foreign companies pay a lot of attention on performance measurement, even though performance measurement has been known as the most difficult problem of management around the world.It’s not easy for companies in our country to put performance measurement into action. In other words, there are many problems in the performance measurement systems which have been carried out by the companies in our country. According to the paper about performance measurement whose writers are from both domestic and foreign, there are some usual and common reasons accounting for these failure cases. And the main reason is the congenital deficiency of the companies, such as the loss of governance mechanism, the weakness of management philosophy and so on. All of the above weaknesses in management lead to the one-sided recognition of performance measurement and the failure to establish the performance measurement system which is adapted to the development of the companies in our country. In this paper, the performance measurement of Q Company, taken as an example, has been analyzed from all aspects. According to the classification of enterprise issued by the government, Q Company belongs to the small and medium-sized enterprise. The main business of Q Company is providing automobile spare parts for vehicle manufacturers. Through the analysis of actual case, this paper points out the usual problems of performance measurement existing in the companies in our country. And then the paper discussed how to build performance measurement system for Q Company, which can be taken as an example for other similar company to carry out performance measurement. The design of this paper is based on literature review, case study and interview investigation.The research results of performance measurement both from domestic and foreign are introduced at the beginning of this paper through literature review. Since the small and medium-sized companies are different from big sized companies in many aspects, the literature review has also noticed the difference and made a classification. The theories of performance/performance measurement methods/ performance measurement indicators are analyzed and summarized. All of these theories make the foundations for building performance measurement system in the following paper.After the literature reviewing, Q Company is introduced from the macro level and micro level. In order to have an in-depth knowledge of Q Company, the "Strengths, Weaknesses, Opportunities and Threats" (SWOT) method is used which is helpful in building an appropriate performance measurement system for Q Company, In order to get the primary information about Q Company, interviews on senior managements and core employees were carried out. Through the interviews on the employee from administration department and the vice president who carried out the performance measurement, the present performance measurement implemented in Q Company is introduced in detail and analyzed in the third and forth chapter of this paper. Based on the conclusions drawn from the analysis, the problems and misunderstandings in the implemented performance measurement of Q Company are pointed out one after one. So the possible reasons for the problems are also raised. And it’ll provide the practical basis for rebuilding the performance measurement for Q Company.At the end of this paper, how to rebuilding the performance measurement system for Q Company is discussed in detail based on the summarized theories of performance measurement and the situation where Q Company stayed at. This paper is also focused on this chapter. In this chapter, through the interviews on the managers and core employees, the analysis of responsibilities and duties of each department and post in Q Company is putted out at the beginning of this chapter. What’s more, the instructions and descriptions for each post are made out based on work-analyzing methods. In order to have a clear look at the posts of Q Company, in this paper, the key business process diagrams are made through simulating the business process. Secondly, the key indicators of performance measurement are selected from the instructions of posts and business process diagrams. The index weight is determined by AHP methods. The performance measurement form for both departments and junior staff can be made out since the indicators of performance measurement and the index weight are indentified. Thus the performance measurement system including the department measurement and the junior staff measurement is established completely, which is based on the key indicators of performance.All in all, there are two points summarized about the research value in this paper. First of all, the effective performance measurement system is built for Q Company, which is completely different from the previous performance measurement implemented by Q Company. The new performance measurement system solves the problems of human resource management and promotes the working efficiencies and initiative of employees in Q Company. As a result, the new performance measurement system will help Q Company to promote the value of human resource and finally achieve operating goals. Secondly, even though only the performance measurement of Q Company is analyzed in this paper, the way of building performance measurement system and choosing performance measurement method are analyzed in detail in the fifth chapter. Thus, the way and process to build performance measurement system can be referenced to other similar small and medium-sized companies in the country. In other words, this paper has some reference value to these issues.