An Research On The Manager Motivation System Of China's Modern Incorporated Enterprises

Perfecting the modern enterprise system with the organizational form of corporations is the micro basis of improving socialist market economy. The core of regulating corporation is to perfect the corporate governance structure, the crux of which is to establish corporate managerial motivation system. Corporate managerial motivation system and manager regulation mechanism are different but with certain links. In fact, the former system is the prerequisite condition for the latter. The corporate manager regulation mechanism could only be established during the process of establishing corporate managerial motivation system. It is thus clear that research on the managerial motivation system of China's corporation has great theoretical value and practical significance to perfecting modern enterprise system and socialist market economy. The logical starting point of this research lies in the necessary analysis of the general nature of modern corporate manager, which is about the manager's quality, ability, function and role characterized within the framework of market economy and modern enterprise system. Modern corporate manager is a man who takes up special management capability as a profession, and obtains compensation for providing this management capability. Viewed from the classification system, it is a management rank composed of corporate general manager, deputy general manager, chief engineer, and chief economist, and headed by the general manager. The most basic character of salaried manager (CEO, general manager): 1. they are non-corporate-owner with management talent; 2. they receive wages or annual salary (basic pay + venture income/merit wages) instead of (or not mainly) benefit. Today, while our country is nurturing and developing market economy, we need an army of corporate managers possessing initiative and down-to-earth working spirit. Therefore, a set of effective mechanism is needed to motivate the managers whose profession is conducting operating management. The academics have already made many kinds of theoretical explanations on managerial motivation, among which we choose "economic man"theory, manager's need and motivation theory and the theory of monopolizing the power to control corporate management, so that the general grounds for motivating corporate manager in our country could be well understood. The abstract and hypothetical term of "economic man"given by Smith during workshop handicraft industry period, refers to, at that time, the capitalist who exploits workers' surplus value on one hand, and the commodity producer who tries to maximize their own interests on the other. The "economic man"embodied in commodity producer exists in the whole process of commodity economy development. In the modern market economy, the corporate manager who represents "economic man"will certainly pursue their own interest and efficiency to the fullest in the business operations. Since our behaviors always aim at fulfilling certain needs in the real economic activities, to motivate behaviors is actually to satisfy the needs. The manager has the basic needs like all the other people, but also has some needs of higher level. When designing the modern corporate managerial motivation system, we could induce and stimulate the managers to pursue the corporate's maximum benefit on the premise that the manager's reasonable needs are satisfied. In the modern corporate, the owner and the manager are connected as a unity through the principal-agent relation, so they have the same economic interests. The corporate manager will maximize his own interest during his pursuit to maximize the capital owner's, while the owner could assure his own interest during his effort to assure the manager's. However, the manager monopolizes the power of corporate management control when the proprietary rights are separated from management rights, so the "game playing"of power behavior occurs between the ownership and management. In the "game playing", any party who excessively use the power that he is entitled to pursue his own interest will hurt the other's interest, so their relation is hard to develop and sustain. Therefore, the two parties have to coordinate their interest relation, to which the key is to motivate manager's behavior through appropriate systematic arrangement, so that the corporate performance could be improved to the maximum. Therefore, the origin of managerial motivation comes from the manager's monopoly of the power to control management, while the human capital is the prerequisite for motivating manager only. Managerial motivation system is a series of incentive measures targeted on the manager's behavior and carried out by the capital owner of the corporation. This system falls into the category of market economic system and itsenterprise system rather than that of social economic system and its enterprise proprietorship. However, it should be regulated by the social economic system and its enterprise proprietorship. Under the condition of socialist market economy, the government plays an important role in regulating managerial motivation system. While the corporations that the state and collective control interest motivate managers, material and moral incentives should be collectively used, so that the two distribution methods (distribution according to work, and that according to productive factors) can be combined, and the role of moral incentives will also be valued in the whole motivation system. The managerial motivation system being established in our country includes material and moral incentive system. The material incentive system mainly consists of incentives such as annual salary and stock ownership, which together with the moral incentive system constitutes the framework of China's corporate managerial motivation system. The trend of structuring these three concrete incentives should be the followings: actively popularizing annual salary incentives, progressively using stock ownership incentives, and gradually promoting moral incentives. In the managerial motivation system, material incentives are the basis of the moral ones, and among the material incentives, annual salary is the basis of stock ownership. Annual salary system is the manager payment system popularly adopted by the corporations. The corporate managerial motivation system in our country is also tried out first with the annual pay scheme. Along with the enhancement of the year-long reform of state-owned corporations, the manager's annual pay system stepped upon a new phase of widespread use from the initial phase of trial use, and it is also being regulated and improved in its popularization. The corporations directly under the central government will play the role of example and drive when we are popularizing, regulating and improving the annual pay system. The annual payment composed of basic annual pay and merit annual pay. The merit annual pay is certain times of the basic annual pay, while the basic annual pay is certain times of the worker's average pay. This annual pay system not only reflects the contribution of the managers with high intellectual risk, but also prevents the large salary gap between the managers and the workers. Under the collective regulation of the manager's annum responsibility and tenure responsibility, the corporate's current benefit could be integrated with sustained development. The experience of the corporations in developed market economies who exercise managerial motivation system shows that annual pay system is the...