Research on Solutions of Applying EVA Performance Evaluation System into Local Grid Corporate
|School||South China University of Technology|
|Course||Senior management of Business Administration|
|Keywords||Performance evaluation grid corporate EVA|
As national economic infra-industry, power industry is the basis to support all the other electric equipment to work. The present firm performance evaluation system doesn’t exert its advantages, instead, it, to some degree, misled the firm’s behavior. It maybe cause the value of the power grid firm to decrease, which is probable to influence our economics development.Economic Value Added (EVA) has come into experts’eyes as a new evaluation system on firm performance. EVA overcame some disadvantages of traditional evaluation system. It is a relatively precise approach to reflect the created value by firm. Based on the EVA evaluation theory, this paper discussed the probability of applying EVA evaluation system into local grid corporate.First of all, the paper reviewed the background, concept and theory basis of EVA. Based on the analysis of EVA characteristics, it put forward to realistic meaning of use EVA in electrical firms. Secondly, The paper designed an EVA mock evaluation on the grid corporate Y. The paper analyzed formula and adjusted items of EVA. According to the data from electric corporate Y in 2007-2009 year, the paper calculated EVA of the corporation. Meanwhile, it compared the EVA evaluation results with the traditional evaluation results. At last, the paper concluded the existing problems and relevant solutions in the implementation of EVA evaluation on local grid corporations.Although EVA performance evaluation is better than traditional one, our local grid firms are not suitable to apply EVA evaluation completely because they burden both economic responsibility and social responsibility. Local grid firm should improve their inner and outer environment and carry out EVA step by step.