Abstract：In recent years, it has received much attention from researchers and practitioners for enterprise performance evaluation and incentive mechanism. Many studies about performance evaluation and incentive mechanism have been made maturely in the foreign country, however, it is a new field in our country and many academic studies are confined to the introduction and theoretical discussion of foreign performance evaluation system and incentive mechanism.
This paper begins with a review of the evolution course of performance evaluation in Chinese and western, as well as the scholars’ study on the relationship between performance evaluation and incentive mechanism. And then the connotation of performance evaluation and incentive mechanism are explained and trying to find their shared theoretical support. Subsequently, we use Jiangsu Wuzhong industrial co., LTD as the research object and want to find the advantages and disadvantages by internal and external environmental analysis of it. Through investigation and analyzing current situation of performance evaluation and incentive mechanism, to find out existing problems and the root causes of problems. Finally, we may build better comprehensive performance evaluation model and comprehensive incentive mechanism model, in order to make them harmony and promote each other. And we should turn performance evaluation and incentive mechanism into the level of corporate strategy, to warn companies that only pursuing for immediate interests while ignoring long-term interests is wrong. All in all, scientific and reasonable performance evaluation and incentive mechanism can help enterprises develop sustainably and make contributions to enterprise value maximization.
Key words Performance Evaluation Incentive Mechanism Mutually Promoting Enterprise Value Maximization...