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With the rapid development of economic and the coming of the increasingly competitive market, more and more companies are becoming to recognize the situation that it is not suitable to adopt traditional management methods to keep the companies’long-lasting operation and development anymore. Faced to such fierce competition, for a lot of small and medium-sized companyies, it is an urgent target to enhance their competitiveness. However, owning to the shortage of the financial, technology and talent et al, strengthening internal management is the best choice so as to improve the company’s performance, as well as to play full parts of the staff, funds, substance and information. In addition, each staff and the company can both achieve their best performance level. In conclusion, a Performance Management System tailored for its own characteristics is the urgent need for a modern company.Hence, it is meaningful to investigate the Performance Management System for small and medium-sized companies and solve their existed problems. That is just the purpose of this paper. Firstly, this paper put an insight into the basis of performance management theory. And then take Peng Fei Company for example, gainst the problems exist in the performance management process of Peng Fei, this research proposed the methods to improving the management of performance. Furthermore, this paper also gives suggestions to Peng Fei from the points of the improvements of goal-setting, performance evaluation indicators, corporate culture, and so on.Overall, the paper, to practice analytical thinking, and then use the method of combining theory and practice, to seek the optimization and improvements for the performance management of Peng Fei Company.
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