Motivation Mechanism to Human Capital of Chinese State-owned Enterprises

On 10/07/2012, in Management, by rain

【Abstract】 The state-owned enterprises of our country face puzzledom, that is, lack of effectual person with ability and serious outflow occur at the same time. Furthermore, this problem will be more serious by the warfare of person with ability, which resulted from using indigenous person with ability of foreign enterprises and a mass need of person with ability in private enterprises. The popular outflow of core personnel of state-owned enterprises is resulted from many factors, some are involved with the deep problem in reform of state-owned enterprises. But many state-owned enterprises merely notice high level salary in foreign and private enterprises, which is impossible to them, so they cannot help but facing the outflow. In fact, salary is one aspect to attract person with ability, but the more important aspect is that the foreign and private enterprises pay more attention to bring up the personnel and offer development chance. This text is cognizant of the need and importance of motivation to human capital by expatiate motivation theories and human capital theories, and find that there are many questions in the understanding of the state-owned enterprises to human capital and the construct of motivation mechanism, which compare with that of American and Japanese, such as the meaning of human capital, long term motivation, the relativity between salary and achievement. The low effect of motivation to human capital counteract that the state-owned enterprises is powerless to attract and retain person with ability. Of course, motivation mechanism, as one part of human resource management system, can make larger use only with restriction mechanism, traction mechanism and competition mechanism. In the market economy system, human capital of state-owned enterprises accord with the hypothesis of “complex person”, so their need is not only much but also variational. Based on the academic analyse and the case, the penman brings forward a suit of motivation mechanism to fulfil human capital, which including economic benefit motivation, achievement motivation, culture motivation and progress motivation. As underpinning of economy development of our country, effective motivation mechanism to human capital is related with the development of state-owned enterprises and persistent and healthy grandness of our economy, then affect integrated national power and competition power of our country. The penman hopes that this study helps to perfect human capital theory of our country and form Chinese characteristic human capital theory, furthermore, direct the practice of state-owned enterprises in attracting, retaining, and using high level personnel.


Study of the Theory of Enterprise Human Capital Property Right on the Basis of Modern Property Rights System

On 14/06/2012, in Management, by rain

【Abstract】 With the development of technology and economy, especially with the advent of knowledge economy, the status and the function of human capital in the enterprise were upgraded, human capital becomes the key and can determine the success of an enterprise. Therefore, human capital property becomes the hot topic within both enterprises and research institutes. Directed by the theory of enterprise knowledge theory of human capital, theory of labor value of Marx, theory of modern property rights, theory of west human capital property right, human capital property right of enterprises was studied in this paper, and the main aim is that the theory explains for human capital comes down on surplus rights and interests were offered, accordingly, the realization of human capital property rights of enterprises was assured. The three problems such as what’s the human capital property right, whom does the human capital ownership belong to and how does human capital property come true were answered individually in the paper, the frame of the basic theory of human capital property right of enterprise was constructed primarily. First, the conception, characterization, structure and function of human capital property right were analyzed; Second, from the point of the particularity of human capital property right, it is been point out that the ownership of human capital should belong to the undertaker of human capital, human capital should come down on profit sharing, that the profit sharing is halved by material capital and human capital is the best enterprise property arrangement. Third, derive from the characteristic of human capital, it was pointed out that human capital contribution is the basic of human capital quantification press, the breakaway and measure of human capital value should according to contribution value, Douglas function and role value appraisal were introduced to separate the human capital value, and the difficult problem about breakaway was solved, also, a series of calculating model was established, an effectual scale was offered about realization of human capital property right. Last, the modality and mechanism of human capital property right were analyzed, the conclusion that the best approach about human capital property right realize is according to contribution come down on residual rights and interests was gained, the year-salary system, stock future system, employee stock holding system and profit sharing system are the effective form about human capital property right; the correlation of enterprise governance, enterprise supervise and human capital property right were analyzed, the conclusion that an effectual governance structure can promote realizing human capital property right.


Study on Stock Options Incentive System Based on Human Capital Property Rights

On 12/06/2012, in Management, by rain

【Abstract】 Enterprise’s operator is the soul of an enterprise, and a kind of important and rare human capital of economic development. The problem of enterprise’s operator’s incentive has been the major subject that the modern enterprise’s management theory has studied all the time .Facing the intensive international competition in the era of globalization and knowledge-driven economy,it is of great significance to solve the problem that enterprise’s operator in our country has stimulated insufficiently for a long time by refering the successful foreign experience of the stock options.The stock option , as a set of incentive system to senior executives as one, makes its theoretical foundation mainly on the principale-agency theory and the theory of human capital property right. Its validity lies in : the hypothesis that the stock option ,offering operators a certain option of purchasing shares has realized “Incentive Compatibility” between the manager and shareholder through the remuneration and ownership incentive,thus reduced agency costs; The game theory proves that the stock option will align the goal of owners and managers and make them reach Nash Equilibrium to maximize their utility . The stock option , which is the result of operator’s human capital articipating in enterprise’s residual distribution , is substantially the effective way of turning human capital into property rights.Nowadays the stock options has already been an effective way in western developed countries to prompt senior executives. However ,the stock options ,in which some defects appear gradually in recent year , has received some queries. Analysis on characteristics of the stock option in foreign countries will provide precious experiences to the execution of stock options in our country . Several kinds of typical modes has been formed in pilot projects in China such as the mode of Shangha, Beijing , Wuhan , Lenova , Taida ,etc. Though the above modes have played an


The Research on Constructing the Inner Control of the Rural Corporative Bank on the Base of Humanism

On 23/04/2012, in Finance, by rain

【Abstract】 Since the 1990s, the international financial market has rised crisis from all directions, which has caused a series of significant international finance events, like Mexican, Southeast Asia finance crisis. These bank events mostly due to the imperfection of bank internal control system.The Rural Cooperative Bank (RCB) was just born, so the biggest development “the bottleneck” is the low quality human resources, which inevitably causes the imperfect of internal control at present. Therefore, it is very urgent to research the internal control based on the human resources. This article is in refer to the foreign country commercial bank mature standard the internal control and bases on low quality human resources of the Rural Cooperative Bank as a knowledge enterprise , with the point of view of implicity of appropriation knowledge as well as the contract incompleteness, it explains that it is the the information asymmetry to create the habit of “insider control” in the rural cooperative bank. Due to this habit, it provides an opportunity for the internal managers and the staff to steals the illegal benefit, which harms the benefit of the funder and the depositor of the RCB. In order to control these internal personnels’ violating behaviors, we must build a perfectly incentive system and a supervise system .Therefore, the article proves the necessity for staff to enjoy the bank partial the power of domination and surplus demands with analysis of the human capital property right (formal contract); it employs the psychological contract to emphasize the the incentive function of satisfication of the staff psychology contract in the human resources management. Then it constructs a game model to analyze equilibrium process of strategy between managers’ control and the staff violation under the perfectly functioned system of internal control, which further confirmes the necessity of drive mechanism and the monitoring system of internal control.Finally,it proposes three indispensable system for constructing the internal control system with humanist trait: First is the human resources management system with humanist trait; Next is the perfectly functioned mechanismof internal control, which contains the following essential factor: a perfectly functioned mechanism of corporation governce, a credit granting mechanism, a keen reaction of risk monitor system, information system explictizing implicit knowledge of the RCB, the highly independent investigation system, the modernized internal control culture; Three is highly effective exterior supervise mechanism and the market restraint mechanism.


Study on Pay System Based on Human Capital Property Right

On 15/03/2012, in Management, by rain

【Abstract】 Along with the development of science and technology, knowledge economy arrives. Notthe financial or capital problem but human resource has been the most important thing thatmodern enterprises confront. Human capital plays a decisive role in economic development,and human capital of high quality become scarce resource. As an important mean to bringhuman value to play and create, pay has been critical and core content of human management.From the development trend of pay, in line with the human capital value is the direction ofpay theory. Initial pay system is based in post and later based in skill and performance. Recentyears, form of human capital participate in the distribution of surplus emerges. All of thesereflect on importance of human capital and encouragement of enhancing personalvalue. Constructing pay system based on human capital right can realize property of humancapital fight and improve stuff’s enthusiasm to a large extent.This article first defined the human capital, its property right and pay. Analyzed pay-related theories such as human capital theory, efficiency wage theory and profit sharingtheory.Then recalled the evotion history of Chinese enterprises pay system. To deal with theproblems, put forward inevitability of human capital participating in surplus distribution. In thelatter part of this article, discussed how to measure the value of human capital, built paysystem based on human capital property fight, put forward human capital property wage whichis human capital’s share in surplus enterprise distribution. It followed priciple of distribution bykey elements and truly realized the human capital property right. Finally, from both governmentsupport policy and enterprise system analyzed external environment and internal machnismthat needed by building pay system based on human capital property right.


Analysis on Motivating Mechanism of Human Capital Property Right in High-tech Private Corporation

On 04/03/2012, in Management, by rain

【Abstract】 Along with the high and new-technology industries’ development, the high-tech private corporations are developing fast too. Compared with the foreign high-tech corporations, our domestic private corporation’s scales are much smaller; the technology innovation capability is weaker. So they faced difficulties to involve in the international economic competence. One of the reasons is the motivating mechanism of human capital property right have reentrance. It leads to the key technical and young managers’ job-hopping for they can’t see the future. This circumstance result the talent crisis and capital right’s lacking. Human capital plays a key role in high-tech corporations’ developing and grandness. So it has practical guiding significance to study on the motivating mechanism of human capital property right in high-tech Private Corporation. High-tech Private Corporation is a two-fold dependence contractual arrangement of human capital and material capital. And human capital’s impaction is more and more important. This article discussed the motivating mechanism of human capital property right in high-tech Private Corporation on the basis of human capital theory.Form the view of human capital theory, Human capital is a kind of initiative asset. Its carrier totally controls the development and utilization of it, and makes it difficult to supervise. At the same time there are difficulties in measuring human capital, and it is easy to result the behavior of adverse selection. So in the course of human capital investment and utilization the first thing we must solve is the motivation of human capital. However, motivation’s essence is capital arrangement. Efficiency motivation human capital motivation lies on the effective capital arrangement. The nature of the firm determined the main body of the enterprise’s ownership is the unity of human capital and material capital. Human capital should engage in the enterprise’s allocation as one of the ownership like material.From a special point of view of our nation’s high-tech private corporation. The motivation of human capital property right is to achieve the human capital’s participation of enterprise’s ownership which includes residual rights of control and residual claim. Stock ownership of human capital’s can solve this problem effectively. The best advantage of stock ownership motivation plan is turning the firm’s value to a variable of its operator’s income function. Then build a long time motivation mechanism to optimize the enterprises govern structure. Currently, it is necessary to execute the motivation mechanism of stock ownership in high- tech Private Corporation. Option motivation and subscription option motivation. Those models have both advantages and disadvantages. This article discussed a case on the base of analysis the human capital’s stock ownership achievement form in high-tech Private Corporation. Take HT corporation in ChangSha as example, particularly clarified the specific apply form of the subscription option motivation. Then on base of the whole article’s analysis, bring forward the best form of human capital property right in high-tech Private Corporation is subscription option motivation.


Research on Human Capital Property Right Accounting

On 03/01/2012, in Management, by rain

【Abstract】 Mankind had stepped into 21st century, the knowledge-based economy developed rapidly. The factor playing decisive role has turned from material capital to human capital in economic growth and making fortune. On one hand, human capital property right accompanied the existence and excise of human capital, on the other hand, as the importance of human capital has promoted in the knowledge-based economy, the solo material capital property right system especially the material capital entity’monopolization of enterprise property right has bring lots of problem such as low productivity, unfair income distribution, inner control and so on. In order to solve these problems, we should set up integrated human capital property right, let the human capital entity share the enterprise’property right with material capital entity, realize the reasonable collocation of enterprise’property right, then show the relation through the human capital property right accounting system.Based on human capital theory, human capital property right theory and human resource accounting theory, this paper analyze the disadvantage of the two modes of human resource accounting, explain the necessity of human capital property right accounting. On the condition of obeying the traditional financial accounting principle, this paper add some accounts such as human asset, human capital etc, then put these information into the financial statement, improve the integrity of the report . For the measurement of human capital, it extend to the area of human capital transaction. Through the game of demander and provider in the human capital market, we can attain the price of human capital. Because market can be considered as measurement system of the commodity’s value , so this method must be most efficient .Human capital property right accounting discard the solo material capital property right system, emphasize the dual structure of material capital and human capital. This paper create a new accounting system including the procedure of measuring, recording and reporting, it can not only provider the useful information, satisfy the demand of government, enterprise, and investor but also express the structure and relation of enterprise’s property right, ensure the benefit of enterprise’s pivotal assets owner, Optimize the collocation of enterprise’s property right, promote the development of the enterprise.


Study about How to Improve the System of Human Capital Property Rights

On 25/12/2011, in Management, by rain

【Abstract】 Enterprises are the contract organization of the human capital and material capital. There are some contradictions between enterprises and the human capital property rights in business transactions, because of the characteristics of human capital and human capital property rights. No mortgage of human capital leads to a fixed incentive in corporate contracts, besides, the private and external effects of the human capital have deepen the degree of difficulty in human capital property rights protection. So, to bring into full play the initiative of human capital must be dynamic incentives. It is explained that the state of operator’s human capital property rights system from the system of human rights capital gains.In theory, first, the vector of human capital’s benefit that must be in accordance with high cost investment is decided by the way of formation and characteristics of human capital. Second, the characteristics of human capital property rights determine that enormous wealth could be created when the human capital empowerment combines the material capital, as well as the bargaining power of human capital becomes stronger that also need to proceed the benefit right more seriously. Finally, after overview the problems in annual salary system as a short-term incentive system, I think it could build a long-term incentive stock options system from EVA model.Since reform and opening-up has been, it has pay more attention to the fact that how to preserve and appreciate the value of state assets with the state-owned enterprise introduced to the market and joint-stock reform. Human capital also has been paid more attention as the key of business operate. Their level of income has been a line with the market, even catching up with other private enterprises’level.In the cases, I have made a statistics on the senior management’s annual salary and the shares in more than 800 state-owned or state-holding enterprises in A share market in 2007, then corresponding to the indicator of return on equity to set up regression model respectively. It was found that, the effect of short-term incentive in our state-owned enterprises on the overall was not obvious at the present stage, or no effect of long-term incentive. It means there are still some problems in the human rights system of capital gains. Then I selected the Baoshan Iron and steel shares company as the practice of stock options and annual salary system to analyze and summary the situation. Finally, I give some advices about how to improve the system of human capital property rights.


On Fair Income of the Manager in Service Multinational Enterprise

On 26/11/2011, in Trade, by rain

【Abstract】 In recent years a lot of senior mangers in Service Multinational Enterprise are listed on top of the billboard with their extremely high annual salary. High, middle and grass-roots level managers and ordinary income disparities and growing income gap between workers. This article holds that Implementation Mechanism of the Fair Incomes of the manager in Service Multinational Enterprise is Human capital property right.The senior mangers in Service Multinational Enterprise Involve in the production and operation of the enterprise activities By virtue of their special skills, and get two Part of the revenue: Basic wage and Wage of human capital property rights. Basic wage is the consumption of human capital management a form of monetary compensation, Human capital of the number of wage and property managers of human capital in the enterprise is directly related to the creation of value. This article analysis sector profit (after-tax profits)of the service transnational corporations, use the cobb – Douglas production function to derive the enterprise contribution rate of human capital, It can be calculated within the service sector of transnational corporations from the human capital of all the remaining earnings; At the same time, Through job design evaluation index system and evaluation methods of design, Groups within the enterprise human capital created by decomposition of the remaining profits to the manager’s job scope, Finally, managers within the service industry in which multinational companies in various positions under the performance appraisal of managers, Positions where the managers of human capital within the scope of the remainder of the proceeds from groups assigned to specific managers. So as to arrive at: Managers of multinational companies within the service industry of human capital property rights equal enterprise human capital from the remaining profit groups、managers of the adjustment factor status、managers to adjust the performance of the product of three factors. The part of the revenue in accordance with the “equal remuneration for equal contribution” principle, so the income is fair.Based on “fair and managers within the service sector revenue of transnational corporations” and the connotation of the defined criteria, Contact the actual situation, China’s service industry managers of transnational corporations within the income is not fair. We need to develop the human capital property rights system,in order to achieve the service sector of transnational corporations in China’s equity income managers.


The Study of Humanistic Financial Government

On 25/11/2011, in Management, by rain

【Abstract】 The traditional financial government theory,based on “‘separation of proprietary rights from operation rights” just admitting the property rights of the owners of material capital, and the owners of human capital can only be the identity of operators or ordinary workers .Because the clients and the agents pursuing different interests,the clients,as the owners,hope to build an effective mechanism to stimulate and bound the operators as the agents,fmally to solve the agency problem through the financial government.This financial government,following a single “shareholders first” logic,will always be symptoms without curing the disease and can not be really effective.Therefore the problem of the financial government at home and abroad has been difficult to cure. In the context of the knowledge economy,pcople have realized that the enterprise was “a particular contracts containing human capital and non-human capital”. As the human capital return to be in status of property, the theoretical and practical community pay more and more attention to the thought humanistic management.With the help of normative studying approach ,it is in line with the inevitable result of time for the author to bring forward the theory of the humanistic financial government,based on the establishment of human capital and guided by the theory of humanism and behavioral science, which conform to trends that the financial governance theory is developing from the phase of the new institutionalism to the humanism.After recognizing of the human capital property,the human capital and material capital combine and become the new unity of the two rights, because of the common interest of value-added, “principal – agent” relationship become the relationship of “principal – agent – take care of themselves”, and the “agent problem “turned into a” self-care problem “, so the primary level of humanistic financial government is the self-government of the human capital owners, the second level is the government between the human capital owners,the last one is the government between the human capital owners and the material capital owners, humanistic financial government seems the self-government around by the other-government. Hereon, the main body and the object of the humanistic financial government would be raised,the humanistic financial government seems the self-government as the core supported by other-government based on the binary nature of property rights,and other basic areas of humanistic financial government.Financial government structure aims to achieve mutual checks and balances of powers, responsibilities and benefits among the stakeholders,to achieve reasonably uniform of efficiency and equity. The goal of humanistic financial government is to maximize the community value,so the arrangement of the powers responsibilities and benefits should rely on their effects in process of value creation . Based on behavior value theory, human resource is the sources of economic value, behaviors are the motivation of value and material resource is the production factor of the economic valuation,by which, I build a humanistic financial government structure to achieve the reasonable share of the value,responsibility and property between the owners of human capital and material capital. Financial governance mechanisms include: financial decision-making mechanism, financial incentives, as well as financial constraints and control mechanisms. Property rights is the center of the traditional financial government mechanism , in which only the owner of material capital can participate in financial decision-making, the operator only as an agent of the operator to participate in decision-making; incentive and monitoring is imposed by the owners of material capital.But in the humanistic financial government mechanism, the owners of human capital not only join the decision-making of the operator finance but also the owner finance;At the same time,the human capital owners make the self-motivation and self-restraint and control come true. Guiding by the behavioral science , we can build a more humanistic, more real and effective mechanism for financial government. In order to eventually achieve property-centric to the centrality of human rights, from the object-ism to the humanism, and from the rational nature of human to build a more effective humanistic financial government theory.