Study On The Performance Evaluation Of M Steel Under The Supply-side Reform

As an important pillar industry in our country and a supportive industry for realizing industrialization,the steel industry has made tremendous contributions to the comprehensive national strength of China.However,since the beginning of this century,the problem of overcapacity in the steel industry has become increasingly serious.To address this problem,in November 2015,President Xi Jinping first put forward "supply-side structural reforms",taking the steel industry as one of the key sectors of supply-side reform.From the national macro-policy,supply side reform requires to "eliminate excess capacity effectively and to enhance the core competitiveness of industry".From the micro-operation of enterprises,it requires that enterprises take the production end as the main management object to strengthen the role of enterprise internal management as well as strengthen the ability of independent research and development.The performance evaluation of iron and steel enterprises should be based on internal management.Production and innovation should be emphasized.However,the current performance rating system of most companies in steel industry has not been adjusted to meet the requirements of supply-side reform.Therefore,under the guidance of supply side reform,it is of great significance to establish a performance evaluation index system that fully reflects the internal management needs of enterprises.It is also very important for the real reflection and scientific evaluation of the comprehensive benefit of the enterprise and the management of the operators.The performance evaluation index system can help find out the problems existing in the production end and the research end.Then,it can guide the supply side reform of enterprise.The Balanced Scorecard index covers four dimensions,such as finance,customer,internal business process,employee learning and growth.It has full advantages in the rational evaluation of the production and innovation ability of the enterprise.In order to analyze the present performance evaluation system of iron and steel enterprises more accurately and to give full play to the positive role of performance management in guiding the supply side reform,this paper probes into the method of using the balanced scorecard to construct the performance evaluation system under the supply side reform by investigating and interviewing a representative steel enterprise in the supply side reform practice.This paper hope to provide reference for the similar steel enterprises to explore the supply side reform performance evaluation.This paper adopts case study method.Based on the analysis of the current situation,business characteristics and performance evaluation of M iron and steel Company,this paper summarizes and analyzes the existing performance evaluation and constructs the performance evaluation system under the supply side reform by using the balanced scorecard.This paper first introduces the basic situation of the operation and development of M iron and Steel company.In the end of 2015,under the guidance of the supply side reform,the company formulated the "Thirteen-Five" development plan.Then it carried out a series of reform practices and achieved certain results.By analyzing the original performance evaluation system of M iron and steel company,it found that the index design and empowerment of production and innovation dimensions are not perfect and reasonable,which can not reflect the requirement of the supply side reform to the enterprise operation.Therefore,according to the enterprise "Thirteen-Five" plan goal,this paper reformulated performance design principle of M and constructed the M steel Company performance appraisal system based on the balanced scorecard.In this paper,we add some important indexes such as capacity utilization,which are required by the reform of supply side.We also adjust the weights of indicators by using AHP to make M steel company’s performance evaluation fit with the goal of supply-side reform.Then,the performance evaluation system constructed in the previous chapter was used to evaluate the performance of M Steel Company in 2015 and 2016.This paper found that after a series of supply-side reforms,the performance level of 2016 was significantly higher than that of 2015.The performance score of financial dimension and internal process dimension was increased highly.However,there is still a distance between the planning target of M steel "Thirteen-Five".