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Security and Incentive:The Research Based on the Rules of Exchange and Cooperation

On 04/10/2014, in Agriculture, by rain

The exchange and cooperation based on rights in Economic activities,in which it is the first pointthat security is the behavior of the right to maintain and the second point that incentive is thebehavior of the right to expand from security.Exchange and cooperation should be based on the right view of justice, which contains twomeanings: one is a fair allocation of the kernel of rights being protected,another is the processof the formation, the exchange and the cooperation of property rights according with Paretoprinciple. The right view of justice is not only the efficiency standards of a kind of behavior,themore important it can also promote the efficient behavior to occur. Usually, the results of theefficient behavior is objective existence and independent of the right view of justice, But only tomeet the right view of the justice, the results can be realized. And those “efficiency results” thatdeviate from the right view of the justice, often conceal a larger conflict. Without the interestscompensation mechanism and sharing mechanism according with the justice of the right view, wecannot judge the “efficiency results” is true or not.Security as the first point in the exchange and cooperation based on the right view of thejustice, includes three security forms: the security of the kernel of rights, the exchange of rightsand the cooperation of rights. But only the security in accordance with the right view of thejustice is effective, and that deviating from it is inefficient. It shows that the security is effectiveor not depending on whether it comply with the right view of justice or not.Incentive as the second point in the exchange and cooperation is based on the security. Thejustice of incentive reflects in consistency between individual and group goal, and theeffectiveness reflects in the maximization of incentive, the effectiveness is determined by thejustice of incentive. The right view of the justice selects the effective results, and at the same timepromote the maximization. It also shows that the incentive is fundamentally effective or notdepending on whether it comply with the right view of justice or not.”Exchanging land for Social security” as an example, we think, only to take the right view ofjustice as the fundamental value orientation, the plan will make the expected effect. The plan isessentially the exchange of rights, but the key is “with what rights” to “for what rights”, which isaccording with the right view of justice or not. And the plan that deviates from the right view ofthe justice, usually changes into an injustice behavior that infringes “the rights of farmers” under”the banner of security”. If urbanization process itself is an efficient behavior, the plan of”Exchanging land for Social security” will be a benefits sharing behavior. But in practice, the planwill be faced with substantial legal barriers and related institutional constraints, which shows thatour country’s rights system fundamentally may stray from the right view of justice.Therefore, we have the final conclusion: the right view of justice is the fundamental valueorientation for social and Economic development, and the so-called “efficiency” and “fair” shouldbe based on the right view of justice.

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Research on Optimal Incentive Model of Government Leading Enterprises to Invest in R&D Based on Principal-Agent Theory

On 17/09/2013, in Management, by rain

In the face of ever-changing pattern of global competition, the world is paying moreand more attention on innovation and development of Economic and scientific strength,China is also on the track of innovation-oriented country to explore and advance R&D(Research and Development, R&D). As an important factor to measure a country’stechnological development and innovation, R&D should arouse the attention ofgovernment and society. It is conducive to improve the national innovation capacity byenhancing the Investment in science and technology. It is also the key factor to promote theharmonious development of economy and society. Analyze national science andtechnology inputs constitute, we can find out the corporate R&D Investment is dominant,whilst the Government Financial input plays an important guiding role, so explore theimpact effect and the incentive mechanism of government guiding enterprises to increaseR&D Investment, establish entrust-agent incentive model, sought after optimal incentivescheme, thereby increasing the incentive efficiency of the government on corporate R&D,therefore it is an important subject in the study of Management science theory andmethodology.This article covers three aspects: Firstly, the status quo analysis of the R&Dinvestment, and the impact of government technology investment on the corporate R&Dinput, the necessity analysis of government encouraging the enterprises to increase theR&D investment; Secondly, based on commissioned-agent theory framework, in the caseof multi-stage dynamic game, the reputation model and the ratchet effect of governmenttechnology investment incentive model on the Enterprise is studied, coming to theconclusion that the necessity of introducing rank-order tournaments, so as to solve thecontract parameters of government incentives for corporate R&D investment; Thirdly, incombination of Shandong provincial investment in science and technology-the R&Dinvestment of mainly industrial enterprises above designated size to proceed empiricalresearch. According to the model and empirical results of the study, five suggestions areput forward.This paper analysis and research come to the following conclusions: Firstly, theincentive role of government R&D investment toward the Enterprise will be weakenedunder the reputation model, the government must increase the investment in science andtechnology budget and disbursement of funds, making a smooth external utility generatedby incentive contract available; Secondly, incentive behavior of government R&D investment on the corporate may also have a ratchet effect, the Government must introducea comparative performance; Thirdly, introduce the comparative performancetwo-dimension (horizontal and vertical) under the championship to fully play incentives.The multi-stage dynamic game model within the commission–agent theory is used inthe establishment of the incentive model of the government R&D investment on theenterprise. The solving methods of the established incentive model and incentive contractof Government science and technology investment versus enterprises the R&D expenditurecan enrich the Management science’s theory and methodology, which reaches thesignificance of the theoretical innovation; Carry out empirical research on our provincialgovernment encouraging the enterprises to increase R&D investment, whose analysisresults can be directly for the reference of decision making the concerned technologysector and management sector, therefore, it is of great application value.

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HR Compensation Design for SL Company

On 13/09/2013, in Management, by rain

With the development of modern market economy, the competition between enterprises has gradually evolved into the competition of human resources. As enterprises’first resources, human resources are more and more valued by Enterprise managers. There is an urgent need to improve human resources administration and shape the core competitiveness of the Enterprise. Compensation Management is the core contents of human resources Management, which is an important measure to attract, retain and motivate talent. However, there are many problems of compensation design and management existed in domestic enterprises.As a subordinate enterprise of a group company, SL Company has been newly established since early year of2010but the development is rapid. The current compensation system is not scientific and standardized, from the view of long run, it should inevitably hinder sustainable development for the company. In order to improve the management level and give full play to the role of human resources, the author have studied the present company compensation system and puts forward a proposed approach. On reviewing the related theory of compensation management, the author find the compensation problem by situation investigation, then analyze causes and put forward compensation design scheme.Through sorting of theoretical knowledge of compensation system, the paper is aimed at combining theory with practice, putting forward a set of human resources compensation scheme which is suitable for the company. By giving full play to the initiative and creative of the employees and improve the comprehensive strength of the enterprise, it helps the enterprise finally realize strategic goals steadily. At the same time, The author also hopes to give some reference for other small and medium-sized enterprise, and provide beneficial discussion on compensation management practice.

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The Stimulation Study of Hotel Industry Human Resources Low-cost Incentive

On 13/09/2013, in Management, by rain

The purpose of this study is to provide some operational cost motivate staff for the hotelindustry human resources, thereby reducing the hotel staff turnover, improve the jobperformance of hotel staff, own modest contribution to the development of China’s hotelindustry.This research method is two-fold: first, investigation and study. I surveyed the five-starhotel employee motivation, five hotel are: Macau Wynn Resorts (five star), BeijingKempinski Hotel (five star), the Kempinski Hotel Dalian (star) Dalian Golden ShineInternational Hotel (four stars), Dalian Riverview Hotel (three stars).In this paper, threetheoretical models, namely: the hierarchy of needs, motivation-the target incentive model toweigh the incentive model.Conclusions of this paper: the hotel industry is part of the tertiary industry is the largestcomponent of Social services, it has a labor-intensive, consumer goods, raw materials usemore frequent and many other features. Now is an era of inflation, these features of the hotelindustry is particularly weak result in the hotel face of inflation. Case of inflation, consumergoods, raw materials are rising, wages of employees are also rising, the hotel’s operating costsare constantly pricey, huge pressure.So, in today’s hotel operating costs of the increasing pressure, the hotel industry high staffturnover in order to be resolved by another large increase in staff wages this way is notdesirable and must therefore be taken to not spend too much financial way to motivate andretain staff, reduce staff turnover.Departure from the classical theory of motivation, the potential ability to inspireemployees to create a good environment, atmosphere, job, task for the survival anddevelopment services of the hotel. To employees to create and develop the space, theformation of common values and common aspirations of the hotel and staff, so that we cangive full play to their wisdom in their respective positions, and co-ordination andco-ordination, the formation of the team spirit of Enterprise. Seek low-cost incentives tomotivate staff and retain qualified personnel is a good way, you can get a multiplier effect ofmanagement.

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The Marketization Process, Control Properties and the Effectiveness of Executive Pay Contract

On 13/09/2013, in Finance, by rain

With China’s listed companies the increasing number and scale expand, the executivecompensation, although in general Enterprise show a rising trend, there was some abnormalchange in individual: some loss of company executives are still getting rich high salary;Instead, the performance good company executive pay is not extrude; Some companyexecutive pay much faster than the growth of the Enterprise performance. Obviously, thedevelopment of executive compensation in our country have deviated from “the mostoptimal contract theory,” to a certain extent, the executive pay is no longer linked toperformance, its taking less incentive effect, therefore, the listed company executive payeffectiveness studies is imminent for our country.This paper adopts rules analysis and empirical analysis combining to study theeffectiveness of executive pay. Research shows that, in order to protect the interests ofshareholders and investors, the incentive contract of the executive pay and performancecombining is effective. But the principles of executive pay incentive contracts are complex,and they do not have transparency. Although the final purpose of incentive is to improvethe Enterprise value, improve performance, but the executive pay incentive contracts willset by numerous company internal or external factors, the impact is likely to improve theeffectiveness of the incentive is positive effect, there may be a negative interference onincentive effectiveness.Previous studies on the effectiveness of executive pay incentive contracts, theyconsideration the company scale, risk, growth and industries and regions, and corporategovernance structure factors wealthy, it is important for entrepreneurs payment theory andmanagement theory. This paper based on the study of executive compensation andcorporate performance relationship, in allusion to China’s local market degree of different,study the system environment on executive compensation and the corporate performancerelationship influence; At the same time, this paper further considered the relationship ofthe government intervention on executive compensation and corporate performance effect,according to whether the government control for enterprises are classified, empiricalanalysis respectively. At last, this paper also considering the market process, control thehuman nature influence the executive compensation and corporate performancerelationship. We can say, this article added a new perspective for executive pay research,and it has certain practical significance to perfect our country listed incentive mechanism,also it can help our government better play the functions of government. This paper on the basis of theoretical analysis, building the regression model, using2007-2010years of the listed company data carried on the real diagnosis analysis, theresults show that:(1) executive compensation and corporate performance correlation exists,and significantly related, namely the listed company executive compensation contracts hasincentive validity.(2) market index and executive pay significant positive correlation,(3)relative to the government for control of the company, non-governmental control companyexecutive compensation has more incentive contract effectiveness.(4) the market processfor non-governmental control company executive compensation contracts and theperformance of the sensitivity of the more influence, and for government control of thecompany executive compensation contracts and the performance of the sensitivity of theinfluence is relatively minor.Finally, this paper gives the following Suggestions: the company governancemechanism with the system change environment and the corresponding dynamicadjustment, only to adapt to the environment of the corporate governance structure wasable to bring into full play. On the government’s Economic function to further adjustment,to safeguard the development of market economy benign track; The government should bereduced to the market and enterprise intervention, to give full play to market self adjustingfunction.

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The Re-design of the Compensation System of Z Corporation

On 03/09/2013, in Management, by rain

Valuable resource of human resources is the era of knowledge economy, is also crucial for survival and development of enterprises, strategic resources. Enterprise Economic profit growth and competitiveness of enterprises is of decisive significance. Therefore, the Management of human resources has a significant place in the Enterprise Management; compensation management is the core issue of human resources management. How scientific, reasonable and effective pay system to attract, retain and motivate talented people to maintain and enhance the core competitiveness of enterprises is the focus of attention of the modern business world.This article through research related pay system theory to explore the decorative characteristics of the industry and the remuneration system of the status quo, the Z’s existing pay system diagnosis. Z Company post diagnosis and analysis of the status quo on the salary system, according to the remuneration of the design principles and design process, job analysis and scoring positions valuation, combined with the company’s development strategy and positioning the company to determine the positions pay. The combined theoretical basis to develop internal fairness and external competitiveness, as well as take into accounts the overall team incentives and individual incentives remuneration package. Evaluation and pay system redesign. The paper is divided into four parts, the first part of the remuneration overview of the theory, the remuneration of its management concept, the pay system design principles, steps and its influencing factors; second part about the company organizational structure based on describes the status of the pay system, to find the problems in the pay system design; third part of the existing problems in the salary system, targeted recommendations for improvement of the pay system redesign; fourth part is the conclusion of research.In this paper, a real case, to support corporate strategy in the process of program development for the purpose, always consider the feasibility of the real-life situation, so with a strong operability. However, due to the limitations of time and ability supporting performance appraisal system with the new system, the annual salary system for senior management compensation management, as well as part of the total compensation benefits and non-monetary remuneration part have not been able to carry out in depth.

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The Attribution, Incentive and Restraining of Purchasing Behavior

On 29/08/2013, in Management, by rain

Purchasing plays an important role in the production and operation of enterprises, which is connected to the bond part of the manufacturers and suppliers. Quality purchasing not only reduces production cost, but also improves the utilization of funds, and increases profits. As the main body of the implementation of the purchasing, the buyer plays a vital role in ensuring the quality of the purchasing and improving procurement efficiency.In this context, this article based on the attribution theory and behavior-related theory will study the concept of the purchasing behavior as well as the internal and external factors that affect purchasing behavior.Besides,this paper will build attribution model of purchasing behavior, identify controllable factors and put forward the corresponding incentive constraint model, to provide the theoretical basis for the managers to implement effective procurement Management.The article is divided into four parts.Firstly, define the purchasing behavior and organize the contents of related theories; Secondly, attribute the factors that affect purchasing behavior, find27factors from different dimension and establish a theoretical attribution mo del. Thirdly, construct the structural equation modeling of purchasing behavior, and then combining with empirical research, the model data validation is done. Lastly, discuss the incentive and restrictive measures based on Social preferences theory and prospect theory.The study shows that:(1) The factors that have significant stimulating effect on purchasing behavior include Social preferences perception, capacity, institutions and social groups factors,etc and the factors which possibly have significant restraint effect on purchasing behavior include policy factors and stimulating factors, especially the relationship between enterprises and their suppliers.(2) The buyers have different social preferences, such as identity, trust, mutual respect and self-fulfillment, on the basis of which, an incentive system including fair subsystem, trust subsystem, mutual subsystem and recognition subsystem, can be constructed.(3) Decision-making for purchasing irregularity is a typical risky decision-making under uncertainty conditions.Based on prospect theory, we can construct a constraint system to increase probability of self-investigation for the buyers thereby reducing the possibility of making purchasing irregularities behavior.

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Research on Incentive&Restrictive Models of Cooperative Innovation in Complex Product System

On 29/08/2013, in Management, by rain

Since the beginning of the21st century, complex product system becomes more and more important in the development of the national economy. At the same time, because complex product system is composed of a large number of subsystems and modules, the system integrator need to join forces with other enterprises and research institutions which are responsible for the development tasks of some difficult subsystems or modules. Thus, cooperative mode is valued and used wisely. However, due to some factors like information asymmetry, the cooperative units may take opportunistic behavior to damage the benefits of the cooperative innovation. Therefore, in order to improve the level of cooperative innovation in complex product system, it is significant to explore effective methods of incentive and constraint to prevent the cooperative units from opportunistic behavior.Based on above, this paper provides a research of incentive and restrictive models of cooperative innovation in complex product system.First of all, this dissertation reviews the existing research of the complex product system and cooperative technology innovation at home and aboard. After that, a case of U.S. F-35fighter is applied to point out the system integrator must take a scientific and reasonable incentive strategy to mobilize the enthusiasm and creativity of cooperative units so as to improve the level of cooperative innovation. By analyzing the patterns and relationships of cooperative innovation in complex product system, the research indicates that the patterns should be divided into fixed payment mode and output sharing mode. Meanwhile, the difference of relationship between cooperative innovation in complex product system and general project is that the core of project Management in complex product system is to deal with the relationship of the system integrator and cooperative units.In the next part, combining the principal-agent theory with characteristics of complex product system, this dissertation establishes the Basic incentive and restrictive models of fixed payment mode and output sharing mode. On the base of these models, the optimal solutions under the conditions of symmetric information and asymmetric information are discussed. Because the relationship between the system integrator and cooperative units belongs to loose union, those incentive contracts without penalty are invalid. Consequently, penalty is introduced into the models to increase the force of constraint. On the other hand, in view of the risk of technological innovation, the probability of innovation success is introduced too. Therefore, compared with the general principal-agent model, the models of this dissertation are not only in line with the characteristics of cooperative innovation in complex product system but also more instructive.Furthermore, in consideration of knowledge and technology spillover effect caused by the exchange of information and staffs between the system integrator and cooperative units, knowledge and technology spillover effect are induced into the Basic models, so that the models based on spillover effect are explored. Then, the optimal solutions of fixed payment mode and output sharing mode under the conditions of symmetric information and asymmetric information are discussed.Finally, specific cases are applied to verify the Basic models and the models concerning spillover effects. Meanwhile, through sorting and refining the results of this study, the conclusions and further research prospect of this dissertation are systematically summarized.

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The Study of the Salary Design in Digsur

On 29/08/2013, in Management, by rain

With the development of Chinese market economy and graduallyimprove, more and more enterprises take part in the activities of market economy andincreasingly engage in business activities of the industry. The various components ofeconomy widely get into the field of Economic activities. They have become the importantfeature of Chinese economy and society, and will promote the gradual improvement of themarket economy. In the numerous economies of the industry, enterprises and variouscomponents, private enterprises, such as the surveying and mapping of company, prove tobe an essential force in Economic activities, and plays the work of exploration and designso that the Basic Economic and Social construction smoothly operate. Private surveyingenterprises are rising, now. They become a beautiful scenery line, and attracted the moreattention of people, also encourage more private enterprises to join the ranks of thesurveying. This situation results in the fierce competition of surveying industry. In thecompetition, the talent has become the key factor in winning the private mappingenterprise competition. How better attract and retain talent becomes the core issue in thedevelopment of private Enterprise of surveying. The establishment of an effective internalsalary system has become an important measure to solve the problems of the developmentof private Enterprise talent in surveying company.The private surveying enterprise such as Beijing digsur is the sample of the researchobject. Through analyzing the Beijing digsur salary system’s situation and problems,Beijing digsur designs four elements of the company’s salary whether it is scientific andreasonable, how the position is designed, how to evaluate the professional title. Theposition, title and salary become fair among the internal staff. The salary system hasbecome an incentive to work harder, to create business value, to promote the developmentof the enterprise, to provide ideas and scientific approach to correct for private enterprisesalary system design of surveying in the rationality and science.

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Theory and Practice of People-first Modern Enterprise Management

On 26/11/2012, in Management, by rain

【Abstract】 Some of state-owned enterprises operate with low cost-efficiency. The employees are not active with the work assigned. How to change the situation? The author thinks that the key is to apply the people-first Management theory in the operation. This thesis introduces the contents of this theory, and the application in manufacturing Management. The author sets up the people-first Management theory for her Enterprise based on the theory presented, analyzes the elements that will impact the realization of this theory, raises some issues should be attentive during this process.The conclusion is that people-first management theory should be applied by all enterprises. The results of realizing this theory may be important for evaluating the performance of the entrepreneurs. The management level should try to foster their quality and control their affectivity properly when they apply this theory.

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