Optimization Of The Performance Appraisal System In Company T

The management of the 21 st century belongs to value management.A set of reasonable and efficient performance appraisal system needs to implement the management perception as well as the management strategy of the enterprise,which can play the role of guiding,supervising,and inspiring the behavior of the administrators and employees.In October 2017,the Ministry of Finance issued the document of Guidelines on the Application of Management Accounting(No.600-60)3—Relevant Guidelines on the Application of performance Management,which stipulates that "Enterprises can use tools and methods alone or comprehensively,including key performance indicator method,economic value-added method,the balanced Scorecard,to establish the index system".With the aggravation of competition and the complication of the management environment,the single performance appraisal system cannot satisfy the demands of the enterprise management any longer.Only the scientific integration of different performance appraisal systems to make up for the limitations of various management tools can create values for enterprises.Following the value-oriented perception,both Economic Value Added(EVA)and The Balanced Scorecard(BSC)are the effective tools to measure the value of enterprises.The scientific integration and complementation of the two methods can improve the enterprises’ level of the performance management.Thus,this thesis proposes to establisha value-oriented balanced scorecard performance appraisal system.At first,this thesis expounds the evaluation methods of EVA and BSC at the theoretical level as well as their respective advantages &disadvantages,and analyzes the feasibility of combining EVA and BSC based on their common points and complementarities.Then,taking Company T as an example from the perspective of practice,it provides a reference scheme for the construction of value-oriented balanced scorecard performance appraisal system,from drawing strategic map and EVA driving factor decomposing to four dimension evaluation indexes of designing balanced scorecard as well as setting up weight through the Analytic Hierarchy Process(AHP),and the calculation and adjustment of EVA as well as the infiltration of EVA index.At last,it expounds the supporting measures of this system so as to further explain the superiority of the new performance appraisal system.Through establishing the value-oriented balanced scorecard performance appraisal system,it optimizes Company T’s original appraisal system,which can truly reflect the company’s operating conditions,and truly implement financial and the non-financial combination,internal and external combination,long-term and the short-term combination,and qualitative and quantitative combination so as to comprehensively evaluate the company’s performance.