Employee performance management is an indispensable part of the management function of the state-owned enterprise.When traditional performance management may not be able to meet the need of rapid development of the enterprise,how to optimize the employee performance management of the enterprise is particularly important.The optimization of employee performance of the enterprise was analyzed,and the optimization countermeasure of employee performance management of the state-owned enterprise was put forward.The balanced integral assessment method was researched on to clearly pay attention to the balance between employee's ability potential and performance ability in employee performance evaluation.Through the integrated management of strategic and performance,performance management was linked with corporate strategy,department performance and individual ability,potential and performance,and a multi-dimensional performance evaluation system was constructed.Based on the feedback mechanism of performance result,shortcoming compensation,employee promotion,and annual plan formulation,a complete plan,do,check,action cycle process of performance management to achieve the common development of employee and the enterprise was built.