Objective To develop a fair, equitable, scientific and convenient method for nursing wards performance evaluation and allocation. Methods We developed a nursing ward performance evaluation system including 4 dimensions (nursing workload, quality, efficiency, and performance) and 90 indexes, then we monthly extracted data of these 90 indexes from the hospital information system and analyzed by using CHAID. According to the significant difference (P<0.05) of the index, nursing wards were grouped into different patterns and awarded with different bonus coefficients. Results Both nurses and their head nurses were satisfied with the new performance evaluation method and head nurses spent less time on performance evaluation (P＜0.01 for all). Conclusion Employing hospital information system and CHAID in nursing wards performance evaluation can accurately and fastly evaluate performance of nursing wards and improve work efficiency and nurses′ satisfaction, thus to provide reference for decisionmaking.