Research On The Performance Assessment Of The Management Team Of CME's Subsidiaries

The state-owned enterprises have been playing a critical role in China's economic development ever since the establishment of PRC.Evaluating the performance of management team of the state-owned enterprises,as well as establishing and perfecting an incentive and constraint system in order to enhance both current benefit and long-term development have been the key and difficult points for human resource management.This paper studies CME Group by analyzing the problems occurred during performance assessment being practiced within its subsidiaries.After consulting the recent domestic and international academic researches,as well as reviewing evolution of performance evaluation of the management team in Chinese state-owned enterprises,the author defines research management team,and conducts comparison analysis among several assessment methods frequently used in Chinese state-owned enterprises.This paper analyzes the management background,assessment criteria and latitude,management structure,work flow of the performance assessment,and recognizes problems lies on three aspects of criteria,latitude and personal factor by a case study of CT's 2015 performance assessment of management team which is wholly owned by CME.Moreover,this paper summarizes three achievements made by CME conducting management performance assessment to subsidiary companies over the past three years.It draws a point that there're deficits in the performance assessment from designing and implementing satisfaction surveys as well as analysis of necessity of such performance assessment.As per the solution to the issues within the management team assessment of CME's subsidiaries,the author conducted a specific research on it.In conclusion,this paper provides a plan of optimizating management team assessment with specialties as follows: 1)with principles of efficiency first and fairness and objectiveness,to promote the healthy development of CME by aligning responsibility,risk and benefit;2)to reduce from 6 assessment latitude to 4 by combining,canceling and adding,as well as adjusting weight of each latitude;3)to simplify assessment targets,by introducing KPI,restraining company control target criteria within 16 categories that assesses companies in phases of profitable,unprofitable,and newly founded,emphasizing key targets and steering effect;and 4)as per the updated assessment latitude,modified target setting,and 360 degree assessment method,to add two entities of management team and other employees into performance assessment,so that performance assessment becomes closer to truth and comprehensiveness.At last,based on various function orientations and development phases of each company,this paper argues to optimize performance assessment system for profitable,unprofitable,and newly founded companies by balancing result assessment and process assessment,combining result assess and awards and punishment,relating assessment to personnel management.In this way,it's hoped to improve the attitude and creativity of the management team,as well as to make state-owned enterprises bigger and stronger in order to maximize the state-owned capital revenue,their share holders' benefit,and the social value.