1、1Study on Application of Balanced Scorecard in the Performance Evaluation of FAW Car CompanyAbstract. With Chinas accession to WTO， the competition of Chinese car industry has been greatly expanded in the geographical space， which has created a global competition environment for Chinese car industry
2、， also has brought a broad space for the development of Chinese car industry. Opportunities and risks coexist. When economic globalization and market integration opportunities come at the same time， facing the rapid changing business environment， the increasingly fierce competition， and increasing c
3、ustomers expectations， FAW Car Company is facing difficulties and challenges. This paper regards the FAW car companyas the case study and applies the balanced scorecard management theory and toolsto explore the application of Balanced Scorecard in the performance evaluation of FAW car company， and t
4、o explore the establishment of a scientific strategic evaluation and evaluation methods， as well as to improve enterprise strategic evaluation level， to guide the enterprise strategy to a better development of enterprises， thus to make a reasonable allocation of resources， to improve the speed of th
5、e 2development of enterprises， and to strengthen enterprises strategic implementation capacity. It has a universal significance and the practice significance. Keywords： Balanced Scorecard； Performance Evaluation； FAW Car Company 1. Introduction of the Balanced Scorecard theory The basic structure of
6、 the balanced scorecard concludes the financial， customer， and internal business process and learning and growth four aspects. The core is to dividestrategy into financial， customer， internal business process， learning and growth four aspects of indicators， thus to form a financial and non-financial
7、 indicators combined with the comprehensive performance evaluation index system， comprehensive evaluation of enterprise performance. 1.1 The financial dimension Financial evaluation index consists of four indexes： 1， the solvency index； 2， the profit ability index. 3， the operating ability index； 4，
8、 the development trend index. 1.2 Customer dimension The customer is the God. The customer is also the inexhaustible source of enterprise financial goals. Only by 3meeting customers needscan enterprises have more customers and create better economic benefits. Therefore， the status of customers in th
9、e enterprise development with the internal and external competitive market is more and more intense and important. 1.3 The internal dimensions of business processes Department of business process can be divided into three stages： 1， innovation； 2， operation stage； 3， after sale service stage. 1.4 Le
10、arning and growth perspective Part of an employee learning and growth dimensions mainly refers to the employees working state and mental state， the core is to inspire vitality and improve the technical level. A good information system should be able to ensure that employees can timely obtain the cus
11、tomer， internal business process and financial decision consequences and so on enough information.Organizational procedures can test the link between the improvement of employee incentives and total success factors and important customers and internal business processes. 2. Research on application o
12、f card performance evaluation system of balanced score of FAW Car Company 42.1 FAW car company balanced scorecard design thought 2.1.1 Adhere to the strategic orientation， the principle of giving priority to efficiency Enterprise management is a kind of strategic management. It must look at performa
13、nce evaluation to long-term development vision， so as to achieve strategic objectives. 2.1.2 The principle of justice， fairness， openness principle Performance evaluation is the subjective behavior， but the subjective behavior should be based on objective facts， the only way to justice， fairness. Th
14、erefore， justice， fairness， openness is the key principle of the balanced scorecard implementation process， decomposition and evaluation index and target value setting， ， are very sensitive and meticulous work. 2.1.3 Adhere to the hierarchical classification， layer by layer evaluation principle Perf
15、ormance evaluation of FAW car company is completed by all departments and staff， performance evaluation of staff performance appraisal department drives， and performance evaluation of department and drive performance evaluation corporation. 52.1.4 To proceed from reality， focused， quantitative evalu
16、ation principles In the construction of FAW Car Company of the balanced scorecard， key performance indicators （KPI） the timing， not exhaustive. 2.1.5 Adhere to the performance evaluation results combined with compensation， the principle of individual development The key factor whether employees rece
17、iving guidance is whether will achieve an effective combination of the whole interest of personal interests and the employees of the company， when the two interests are not reasonable combination， the initiative of employees will not be able to play effectively. 2.2 Elements of the balanced scorecar
18、d of FAW car company As the balance theory， every dimension of the balanced scorecard has a structured model， namely every dimension is composed of target， index， target value and action plan. 3. The main contents of the performance evaluation system of FAW Car Company Balanced Scorecard 3.1 The fin
19、ancial dimension The financial dimension index of BSC is issued by the company， therefore， the performance indicators issued by the 6corporation as the basic index of the Balanced Scorecard financial dimension. The financial index variety， not possible in the formulation of the balanced scorecard ar
20、e all included， must choose the development strategy and business are closely related， and can embody the strategic objectives of the enterprise and realize the situation， a vertical chain of cause and effect between non-financial performance and motivation， the final results of the other three non-
21、financial aspects and criteria. Therefore， can be issued by the corporation performance indicators and internal integration of the company， as a common index of the Balanced Scorecard financial dimension. 3.2 Customer dimension In the customer dimension， income growth strategy requires special value
22、 proposition， value proposition special description of the enterprise will create differentiated and sustainable value how to target customers. FAW car company claims to protect the target customers and their value orientation， can be used to determine the performance indicators， the Balanced Scorec
23、ard customer dimension. 3.3 The internal dimensions of business processes 7The customer goals describe a strategy - the target customers and special customer value proposition， the financial dimension object description strategic success. With this clear blueprint， internal business process goals wi
24、ll describe the strategy to be implemented； the dimensions of performance will be driven strategy. 3.4 Learning and growth perspective Learning and growth perspective describes the intangible assets of the enterprise and its role in the strategy. Intangible assets include human capital， information
25、capital， and organization capital. Although learning and growth perspective is at the bottom of FAW Car Company balanced scorecard， it is the driving force and foundation of the above three levels. Whether FAW Car Company can reach more than three dimensions of the strategic objectives and targetssh
26、ould inspect the learning and growth capacity and. The strategic goal of FAWCar Company used intangible assets and resources to drive the learning and growth perspective. “The talent level“ has become a learning organization； development characteristics of enterprise culture； and cultivate the detai
27、ls determine the success or failure of the executionrely on information technology to drive 8the upgrading of management. The implementation of the Balanced Scorecard project of FAW Car Companystrengthenedthe strategic management， making the blurred development into a clear strategic goal. Balanced
28、scorecard is not only designed to clearly describe the strategy， but also including the action plan at all levels， which has obvious advantages in the implementation of strategic communication and strategy. References 1 Roberts.KaPlan and David P.Norton， The Balanced Scorecard：Measures That Drive Pe
29、rformance， Harvard Bussiness Review， 1992-2 2 Wenmei Li， Zunming Chen. The Performance Evaluation System of Balanced Scorecard. Guangxi Accounting， 2001-4 3 Rui Zhang. “Set Up the Framework of Evaluation Index System of New Economy“ Era of Business Performance of Contemporary Economic.2001-5 4 Gulia
30、ng Tang， Senior Fnancial management， Beijing： CITIC publishing house， 2006 5 Robert S Kaplan， Anthony A Atkinson， translated by Changjiang Lv， Senior Management Accounting， Dalian： Northeast University of Finance and Economics press， 1999 6 Junyong Liu， Wei Sun， Evaluation and Incentive 9Mechanism and Enterprise Performance， Beijing： CITIC publishing house， 2007
