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The Establishment of Performance Indices with Balanced Scorecard for Salespersons in the Paper Industry

In today¡¦s world of highly developed economies, the average yearly consumption of paper per person is usually considered as an index of living standard. The paper industry is one of the basic industries necessary to our daily lives and an indispensably important industry in the domestic economic development. Basically, paper is a cheap medium that can be used for a wide range of purposes. Compared with other media, it has strong competitiveness. And as the industry is growing more mature, it is necessary to further investigate how to expand the market and enhance manufacturer¡¦s profit, so as to reach the goal of sustainable management of an enterprise.
In order to evaluate whether the salespersons in the paper industry are able to bring profit for the company, a systematic appraisal system has to be established. This study broke through the conventional performance evaluation method adopted in the paper industry and proposed to use the 4 constructs of Balanced Scorecard as the constructs for performance evaluation, in an attempt to develop a comprehensive appraisal system. Among these 4 constructs, except the ¡§finance¡¨ and ¡§customer¡¨ constructs that were evaluated with objective quantitative indices, ¡§internal workflow¡¨ and ¡§learning and growing¡¨ constructs were subjective qualitative indices.
Literature review was first conducted to induce the items for evaluating salesperson¡¦s performance. Through a survey on expert¡¦s opinions, indices considered as more imperative were derived to build the hierarchical structure of performance evaluation. Analytic Hierarchy Process (AHP) was then applied to calculate the weight of each index. Finally, empirical verifications were conducted to gain the agreement of the paper industry, in hope of providing a reference for the managers of the industry.
Regarding to the structure and weight of the performance index established in this study for salespersons in the paper industry, the conclusions were made as follows:
1.The establishment of a performance appraisal system: 19 evaluation indices were developed, based on the 4 major constructs of Balanced Scorecard.
2.Weight of performance evaluation indices: Among the 4 major constructs of Balanced Scorecard, ¡§customer¡¨ was the priority, followed by the ¡§finance¡¨ construct. The overall weight of the two construct accounted for 60%. And among the 19 other indices, ¡§integrity¡¨ had the highest weight, and the rest of the top 5 indices were: gross profit margin rate, concept of cost, customer satisfaction, and achievement of collection.
3.Empirical verifications: This study conducted empirical verifications on a paper manufacturer, and the analysis results were consistent with the subjective evaluations of the high-ranking supervisors in the company. It was believed that the performance indices proposed in this study possessed high objectivity and accuracy, and could be used as a reference for performance evaluations in the future.

Identiferoai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0120106-004114
Date20 January 2006
CreatorsLo, Yueh-Hua
ContributorsShyh-jer Chen, Jin-feng Uen, Chin-Ming Ho
PublisherNSYSU
Source SetsNSYSU Electronic Thesis and Dissertation Archive
LanguageCholon
Detected LanguageEnglish
Typetext
Formatapplication/pdf
Sourcehttp://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0120106-004114
Rightscampus_withheld, Copyright information available at source archive

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