Reflections on the Construction of Strategic Performance Management System in Chinese Manufacturing Enterprises

Abstract

In the surge of global economic integration, China's manufacturing industry is poised at the forefront of a transformational upgrade. Beyond the hum of production lines, the vital pulse lies within the robust rhythm of Strategic Performance Management Systems (SPMS). Yet, studies indicate that despite China's manufacturing sector advancing towards "intelligent manufacturing" and innovation, there are numerous areas within strategic performance management systems that urgently demand enhancement. In the coming years, for China's manufacturing industry to secure higher value positioning within the global supply chain and assert dominance in niche markets, it must seize the nerve center of strategic performance management. Confronted with a series of challenges including slowing growth, rising costs, and tightening environmental regulations, manufacturing enterprises urgently need to construct an efficient and precise performance management system. However, in reality, many enterprises still exhibit a weak strategic execution, lacking a systematic performance orientation and employee incentive mechanisms, often resulting in a disconnect between strategic objectives and performance management. The factors affecting the effective implementation of strategic performance management within enterprises are intricate. Internal factors primarily encompass the rigidity of corporate culture, bottlenecks in leadership style and employee engagement, as well as hindrances in information sharing and communication mechanisms. External factors involve the volatility of market environments, unclear policy directions, and intensifying international competition. The formulation of a comprehensive performance management system undoubtedly holds profound significance for optimizing resource allocation, reinforcing core competitiveness, and enhancing strategic responsiveness.