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Performance Appraisal System is one of best business management methods. How to use performance management to increase worker productivity and to achieve organizational goal is one of important topics in businessadministration. This essay integrates theory with practice to study the staff performance appraisal of TZ Company, and hopes that through this study, found that the existing problems of performance appraisal, and puts forward the solutions for reference.TZ is a modern private enterprise, who is engaged in special vehicles, construction machinery, road and bridge components, petrochemical equipment industry, new energy and other business. In this essay, based on the study of performance management theory, in-depth and detailed analyzing as well as discussing the existing performance appraisal in TZ Company, finds that TZ Company’s current performance appraisal system restricts effective operation, and there exists problems of illogical performance appraisal, unsound incentive-security mechanism, divorcing from performance appraisal and corporate strategy. In order to solve these problems, this essay based on the business practice, uses modern basic principle and theory of performance appraisal to give improvement suggestions from understanding the connotation of performance appraisal theory, completing incentive-security mechanism, designing perfect performance appraisal system, as well as evaluating performance appraisal process and results.
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