Enterprise performance refers to the business efficiency and operator performance during a certain operating period. What is the meaning of enterprise performance in human resources? Take a look at the following I bring you a little knowledge of enterprise performance, read it and you will understand!
What is enterprise performance
Enterprise performance refers to a certain operating period of enterprise business efficiency and operator performance. The level of business efficiency is mainly manifested in profitability, asset operation level, solvency and subsequent development ability. Operator performance is mainly through the operator in the management of the process of enterprise management, growth and development of the results achieved and the contribution to reflect.
What is enterprise performance evaluationOverview of enterprise performance evaluation
The so-called enterprise performance evaluation refers to the use of mathematical statistics and operations research principles, a specific indicator system, against a unified standard, in accordance with certain procedures, through quantitative and qualitative comparative analysis of the enterprise's operating efficiency and performance of the operator for a certain period of time to make objective, fair and accurate comprehensive judgment. It makes an objective, fair and accurate comprehensive judgment on the operational efficiency and performance of the operator during a certain operation period through quantitative and qualitative comparative analysis according to certain procedures. It should be noted that the current ERP is gradually popular in the field of enterprise information management in China, the same need for enterprise performance evaluation, but it is here with us to speak of enterprise performance evaluation is a different concept, ERP used in the enterprise performance evaluation refers to the evaluation of its resource management project implementation of the effectiveness of the overall application of the ERP enterprise after the effect.
China's current implementation of enterprise performance evaluation, in essence, in accordance with the requirements of the market economy, the implementation of an enterprise regulatory system. With the development of the socialist market economy, the government's way of managing the economy is also moving towards the use of market economy principles of indirect management of the direction of continuous change. Promoting the performance evaluation of state-owned enterprises and the appraisal of the value-added of state-owned assets has become an urgent task in the reform of China's economic system. At present, government departments at all levels are gradually carrying out enterprise performance evaluation as a fundamental task in the supervision of state-owned enterprises, and require large state-owned enterprise groups to carry out the evaluation of their subsidiaries (sub)companies in conjunction with the requirements of the group's internal management, in order to strengthen the supervision and management within the group and improve the level of operation and management. The results of enterprise performance evaluation are regularly announced by the Ministry of Finance every year. The results of performance evaluation are also being gradually combined with the pilot work of reforming the annual salary system for operators, stock options and other income distribution methods, and have become an important basis for the performance appraisal of managers in SOEs. At present, our intermediary organizations are gradually involved in the enterprise performance evaluation, mainly the state of the key state-owned enterprise group business efficiency, the operator's performance evaluation, as well as the state-owned enterprise group itself to its subordinate subsidiary (sub) company business efficiency, the operator's performance evaluation.
Although enterprise performance evaluation is a means for the government to assess the business performance of state-owned enterprises, the main responsibilities of government departments in the future should focus on the development of evaluation rules, release evaluation standards, implementation of the commissioned tasks, supervise the quality of evaluation, etc., and the specific evaluation of the affairs of the intermediary organization should be handed over to complete. The participation of intermediary organizations in the evaluation of enterprise performance can enable the supervisory departments to focus on the application of evaluation results and regulatory decision-making, and because social intermediary organizations have rich professional experience, they can improve the efficiency, quality and fairness of evaluation work. In foreign countries, it is also a common practice to hire private auditors to carry out evaluations of the business performance of enterprises. Social intermediaries annual statement audit and management consulting business is also based on the enterprise financial accounting information, so intermediaries can be the enterprise performance evaluation work and accounting statement audit, management consulting and other business combination, to further develop their own business, better serve the community.
Evolution of enterprise performance evaluation methodsWith the continuous improvement of the market economy and the development of economic globalization trend, the public attaches more and more importance to the objectivity and authenticity of enterprise performance. Over the past hundred years, foreign economists and management experts have conducted more systematic research and exploration in this field from different perspectives, and have achieved many influential research results and promoted the practical application and popularization of corporate performance management and performance evaluation. The first is to make sure that the performance evaluation of the company is not a problem, and that it is not a problem that can be solved.
(I) cost performance evaluation stage (early 19th century - early 20th century)
This stage of performance evaluation is mainly cost-based, and the basic principle of its cost evaluation is a very simple idea of seeking profit by cost, and the performance evaluation indexes in this period are mainly costs. With the first revolution in cost accounting and the emergence of capitalist commodity money economy, the original only to calculate the profit for the purpose of cost control ideas gradually by how to improve production efficiency, as much as possible to earn profit ideas replaced. 1911, the United States accounting workers harry designed the earliest standard cost system, the realization of the second revolution in cost accounting. The establishment of the standard cost and variance analysis system, the realization of the cost control by the passive after-the-fact system to reflect the analysis of the change into a positive, proactive pre-budgeting and in-control, to achieve the purpose of the management of the cost, and for the future business performance appraisal to lay the foundation.
Financial performance evaluation stage (about the beginning of the 20th century - the 1990s)
With the intensification of free competition in the market, enterprises have engaged in a variety of operations in order to control the risk, which resulted in a large number of cross-industry enterprise groups, providing a possibility for the reform and innovation of the enterprise performance evaluation index system. 1903 DuPont managers designed a performance evaluation index system that focuses on the rate of return on investment. In 1903, DuPont's managers designed a performance evaluation system with the investment return rate as the main content, thus creating a precedent of financial-based enterprise performance evaluation methods.
From the 1960s to the 1970s, in terms of performance evaluation indexes, it has experienced the evolution of the enterprise performance evaluation method with sales profit margin and return on investment as the main evaluation index system. 1980s, the evaluation of enterprise business performance has gradually formed a performance evaluation system based on financial indexes and supplemented by non-financial indexes. Many companies in western countries, especially in the United States, have realized that over-emphasis on short-term financial performance is an important reason why American companies are in a disadvantageous position when competing with European and Japanese companies, so they have turned the focus of enterprise evaluation more to the formation and maintenance of sustainable competitive advantage of enterprises. While focusing on the short-term financial performance of enterprises, they paid more attention to the status and role of non-financial indicators in performance evaluation. Therefore, this period of performance evaluation is characterized by financial indicators, supplemented by non-financial indicators.
(C) enterprise performance evaluation innovation stage (1990s to the present)
In the 1990s, the business environment of enterprises has changed dramatically. Due to the trend of economic globalization and integration of the world economy, the arrival of the new economic period, the frequent use of financial instruments and the rapid changes in the market, resulting in competition intensified globally. In order to survive and develop in the competitive market, enterprises must integrate performance evaluation with strategic planning and vision. In order to realize the strategic plan and vision of the enterprise, it is necessary to form and maintain the core competitive ability of the enterprise. Since the 1990s, many enterprises in Europe and the United States have found that performance measurement methods that rely mainly on traditional financial indicators have led to a variety of problems and have become the main reason for hindering the progress and growth of enterprises. In order to overcome the problems in performance evaluation, it is very necessary to establish a new set of performance measurement methods and to combine financial and non-financial information and disclose it in financial reports to improve traditional financial reporting and to serve for the development of corporate strategic planning. As a result, the Balanced Scorecard was developed. Balanced Scorecard
The first step in the development of a new approach to performance evaluation is the development of a new approach to performance evaluation.
EVAThe evaluation of business performance refers to the real, fair, objective and comprehensive evaluation of the business results of the enterprise's asset management, accounting income, capital preservation and appreciation during a certain period of time, including the evaluation of the enterprise's economic efficiency and the evaluation of the performance of the operator. Performance evaluation is a method of adapting to the requirements of enterprise management under specific historical conditions. When the environment and management requirements on which a specific evaluation method exists change, the performance evaluation method should be changed appropriately so as to adapt to the requirements of enterprise management. With the deepening of China's economic system reform, the importance of correctly and effectively evaluating the performance of enterprises is being recognized by more and more people, and has become a major issue for the government, the business community and the accounting profession. Especially for the government management, only to understand the actual performance of enterprises, in order to correctly formulate the goals and policies of economic development, and better fulfill the function of macro-control; at the same time correctly evaluating the performance of enterprises, but also the management of fair and objective evaluation of the ability of business managers and the level of the premise.
First, the current situation of China's enterprise performance evaluation and existing problems
China's enterprise business performance evaluation system over the years has been a kind of net profit indicators calculated according to the current accounting standards and accounting system is the main. 1992, the State Planning Commission, the State Council Production Office, the State Bureau of Statistics jointly issued a system of evaluation and assessment indicators of the industrial economy, including six indicators. In 1993, the promulgation of the ? Two rules? ,? Two systems In 1995, the Ministry of Finance issued the enterprise economic efficiency evaluation index system, including 10 indicators. 1997, the State Economic and Trade Commission, the State Planning Commission and the State Bureau of Statistics revised the original industrial economic evaluation and assessment indexes, adjusting them from six to seven. 1999, the Ministry of Finance, the State Economic and Trade Commission, the Ministry of Personnel and the State Planning Commission jointly issued the enterprise performance evaluation system, including 8 basic indicators, 16 revised indicators and 8 evaluation indicators. Although the indicator system takes capital operation efficiency as its core, adopts a multi-level indicator system and a multi-factor item-by-item correction method, uses unified evaluation standard values as benchmarks, applies the basic principles of system theory, operations research and mathematical statistics, and implements a combination of quantitative and qualitative analyses, its scientificity, standardization and fairness have overcome some of the defects that existed in the past evaluation system. However, since the core indicator it chooses is the return on net assets, it has not changed the main features of our traditional enterprise performance evaluation system, which is mainly based on net profit and the indicators calculated on the basis of net profit. According to modern financial theory, profit is not the core of enterprise operation and management, not to mention the embodiment of enterprise value. The profit of the enterprise is only a product of the accrual system of accounting. It is the result of matching all revenues and all costs for a certain period of time in accordance with the current accounting standards. Therefore, it is difficult for these indicators to fairly, objectively and realistically reflect the operating results of enterprises and the performance of operators, and will only distort the performance status of enterprises. This kind of business performance evaluation system, which is mainly based on net profit evaluation indexes established on the basis of accounting income, has the following problems