Redesign Of Performance Management System For Corporation V

With the rapid development of China Economic, the labor cost is increasing gradually annually, the foreign funded Company in China is now facing unprecedented challenges. As the wholly US funded daughter company who producing piping products and fire-fighting products, Corporation V enlarged the investment and built the production facility in Dalian, China for further development, but currently Corporation V is facing smaller and smaller profit margin due to increasing labor cost and decreasing exchanged from USD to RMB; the old performance evaluation system is still prevailing in the Corporation V with no further update as per actual internal and external circumstance resulting in the low labor productivity. How to improve the performance management system and improve the initiatives and efficiencies of staff becomes a new topic which Corporation V must solve.The article is started from the basic theory of the performance management system to find out and analyze the main problems existed in current prevailing performance management system. Base on those, design a new performance management system according to company's strategic targets, the new performance management system consists of 3 performance management modules. First is performance target management module, emphasizes on choosing and determining the performance indicators including of position KPI, KPI Database establishment, target and weight determination etc.; second is the performance management plan, emphasizes on validity of performance management system implementation. Third is the performance appraisal result application and claim management, emphasize on valid application of performance evaluation results including summary of performance result, etc. aspects, as well how to solve claims to ensure the justification of the performance management system.Re-designing of performance management system of Corporation V will one side standardize the performance evaluation system with relevant polices, as a result that productivity improves; on another side improve the initiative of the staff, as a result of steadily team. All in all, through the re-design and optimization of performance evaluation system, we can not only realize the win-win targets which benefits both company and employee, but also ensure the realization of company's strategic target and facilitate the marketing competition and consistent development.