To overcome this problem, this study introduces a new idea of performance evaluation and management mechanism optimization of clustering algorithm, accurately controls the influencing parameters through the similarity measurement theory, and uses it as the road map for index allocation, and then uses the clustering algorithm to innovate and construct a system scheme. The test results clearly point out that in the context of the evaluation criteria, the new scheme has been significantly optimized in terms of accuracy and processing speed for a variety of challenges, showing stronger performance superiority. Therefore, in the research process of student group performance evaluation and management mechanism, the simulation scheme based on clustering algorithm successfully overcomes the shortcomings of the traditional fuzzy synthesis algorithm and significantly improves the accuracy and operation efficiency of the simulation.