Abstract: The key to effective incentive lies in fair,but the basis of fair is right performance evaluation.When performance evaluation theory is developing toward customers,employees,operators and non-financial both on abroad and in the country, this paper has paid attention to the limitation of scoring to the traditional performance evaluation method,and presented three necessary conditions for setting up a reasonable performance evaluation method,which are score of evaluation being continued,the non-linear relationship between value for evaluation, and quantity for evaluation and same value exchanging between positive index and relative reverse index etc..Furthermore, it has built a performance evaluation model fitted for those conditions,at the same time, made a factual calculation on parameter and application of this model.

Key words: fair incentive, performance evaluation, score transition