Performance Evaluation Of State-owned Enterprises Managers' Motivation

Research on state-owned enterprise performance evaluation and its incentive mechanism is an important task while deepening the reform of our country?s economic system, improving state-owned enterprise?s management, raising the allocation efficiency of state-owned enterprise resources and other resources in our society ,and developing socialist economy. At present two groups under the Ministry of Finance are studying this issue independently,and I myselfani a member of the state-owned enterprise perf ormance evaluation study group.The findings of the study shows that a good state-ownde enterprise performance evaluation system is the basis of implementing proper incentive mechanism and proper incentive mechanism is a prerequisite of effective realization of performance evaluation?s functions. So the author combine state-owned enterprise performance evaluation study and incentive mechanism study during the research and mak an effort to establish a system of performance evaluation for the enterprises (mainly for state owned enterprises in our country and incentive mechanism for the managers of state-owned enterprise suitable for the current conditions of China. Nevertheless, due to the limited time, academic level and the working field of the author, there are still many problems in state owned enterprise performance evaluation and incentive mechanism and their relationship left to be desired. This book is the rudimentary study of the author.This paper is compised of six chapters.Chapter one discusses the theory and its related issues of enterprise performance evaluation. With the introduction of the generation and evolution of performance evaluation, the relationship between economy development (development in the organization of enterprises especially)and performance evaluation is discussed. From the views of agency theory and non-agency theory, the generation of performance evaluation is explained, and an comprehensive model of enterprise performance evaluation system is formed. Then based on the comparison between the social behaviors of classic and modern enterprises, the conclusion is drawn that performance evaluation system should include the following four aspects: enterprise social performance evaluation, enterprise operation performance evaluation, enterprise management performance evaluation and enterprise business level performance evaluation.Chapter two studies state-owned enterprise social performance evaluation. The pur-pose, basic theory and practice of state owned enterprise performance evaluation inWestern counties are discussed after the analysis of the existing reasons of Westermcountries' state ownde enterprises. Then, the purpose and pattern selection of China'sstate owned enterprise social performance are studied; factOrs which influence China'sstate owned enterprise social performance are explored; social performance evaluation in-dicators and the method, the principle of establishing the indicatOrs are discussed; Finallythe future state owned enterprise social performance evaluation as well as the changes ofstate owned enterprise management pattern and the development of the environmentChina's state owned enterprises exists are prospected.Chapter three deals with state owned enterprise's operation performanceevaluation. Firstly, the purpose of enterPrise operation performance evaluation and theweak points in current operation performance evaluation's practice are discussed. Sec-ond1y, the positive and normative studies on the features of the board of directors andmanagers are performed, and while considering China's current situation their influenceon enterprise operation performance is expounded. Thirdly, fOllowing the exarnination ofoperation perfOrmance evaluation criteria, a set of enterprise operation performance eval-uation indicators is set up. Finally through the study of financial characteristics at differ-ent enterprise development stages, operation performance evaluation priority at differentstages and the ope...