Abstract
To an enterprise, performance measurement is the objective while knowledge management is the method and purpose of both is to enhance overall performance of the enterprise. Both academic circles and enterprise circles investigated performance measurement and knowledge management alone, even regarded knowledge as the objective rather than the enabler to improve performance, and subsequently most of the knowledge gathered lacked boundary and focus. I.e., the generic enterprises lack an integrated theoretical framework and a feasible system to help them solve problems of performance management efficiently. This study integrates both performance measurement and knowledge management to develop a performance management framework and a practical system. The framework links performance measurement and knowledge management. Although the framework may limit the scope of knowledge to enterprise empirical knowledge, however it also provide a mechanism to filter knowledge which is irrelevant to an enterprise’s performance by the performance indicators, and thereby it can ensure both usefulness and cost-effectiveness of the created knowledge for the enterprise. The proposed integrated performance management system and procedure to introduce it into an enterprise could be effectively applied to generic enterprises. A case study of a semi-conductor company in Taiwan also has proved that the integrated performance management system could assure the conveyance of performance objectives and work plans from high-level managers to low-level labors and can also facilitate both vertical and horizontal communication and learning in an enterprise.