On The Application Of Key Performance Indicators In Small And Medium-sized Manufacturing Enterprises

With the rapid development of the economy,the competition among enterprises has become increasingly fierce,and the space for survival and development of enterprises has been squeezed.SMEs are aware of the need to guide and regulate employee behavior.It is the core of performance management to evaluate the work of employees and to motivate employees.Due to different development stages,different industries,and different core competitiveness,the performance appraisal system that is learned and borrowed may not be suitable for the company's own situation.Although this allows the management of the company to have a certain understanding of performance management,but the understanding of performance management is superficial,there is still a lack of understanding of performance management.In this way,SMEs need to establish a scientific performance management system,which decomposes the corporate strategic objectives into achievable performance management objectives,and encourages SMEs to continuously learn and grow in the process,and ultimately make the company continue to progress.Key performance indicators only evaluate key indicators,with fewer indicators,more operability,and lower assessment costs.They are more suitable for the strengths of SMEs and simplify management.This paper adopts a combination of literature research method and case analysis method to study the status quo,problems and causes of performance management of D enterprises.Firstly,by reading a large amount of literature,we can understand the research dynamics of performance management at home and abroad and the application of performance management methods,and use it as the theoretical basis of this paper.Then according to the status quo of D enterprise's performance management,this paper introduces the three stages of D enterprise performance management experience,and concludes that D enterprise performance management has lack of relevant links in performance management,performance objectives are inconsistent with corporate strategic objectives,performance management is not implemented,and lacks.Incentives and other issues.Then it analyzes the causes of enterprise performance management problems,which are mainly reflected in the lack of understanding of performance management,the poor quality of middle and senior management personnel,and the lack of performance management related to corporate strategy.Then use SWOT analysis method to establish the strategic goal of D enterprise.Based on this,design D enterprise performance management system based on key performance indicators,and formulate key performance indicators at the enterprise level,department level and employee level and assign weights.After the implementation,the effects of D company's implementation of key performance indicators are analyzed from four aspects: total product sales,sales return,employee satisfaction,and customer satisfaction.Finally,it is concluded that:(1)The performance management system needs to be combined with the current strategic goals of the enterprise to ensure that the performance objectives are consistent with the strategic goals of the enterprise.(2)In the performance appraisal process,the company continuously obtains feedback from internal and external sources to determine whether the performance management of the enterprise is effective.(3)There are too many punishment clauses in the performance management system,too small and the incentive clauses do not match,and the incentive clauses are too long,which will directly affect the enthusiasm of employees and the implementation effect of performance management.(4)After the management of the enterprise understands the connotation of performance management,clarifies the basic processes and key issues,the implementation of the performance management system by SMEs can also achieve better results.