Setting Up An Efficiency Incentive System To The Operators Of State Owned Enterprise

The State-owned enterprises at present are stepping into an important period, during which the reform of the property rights, the regulation innovation, the transform of the system and the optimizing the structure are being carried out. Meanwhile, the magnificent changes are taken place to the duties, statues and the functions of the State-owned enterprise operators.With the development of the reform, the functions of the operators of State-owned enterprise are being changed from a representative of state-owned capital management to an agent of State-owned enterprise. So, the Operators whose sense of creativeness, the management talent and the decision-making ability are vital to the existing and development of the enterprises and whose actual power of control to the enterprise is directly effecting to the interests of the capital owner. Therefore, we must, based on the reality of management of the State-owned enterprises, draw from a successful marketing experience of the western countries to explore incentive and restrain systems with Chinese characteristic for the operators of State-owned enterprise, which is a significant way to protect the interests and rights of the operators of State capital so as to ensure the appreciation of the value of the state capital.The purpose of this paper is to discuss how to establish an effective and incentive system to the operators of state-owned enterprise. The first part of the paper is to dealwith the necessity of the incentive system. In this part, according to the theory of agent appointment to modern enterprise and based on the complicated and specific background of the appointment to the state economy, I would like to elaborate an incentive as well as a restrain system to emphasis the internal personal management. Also in this part, the paper analyzed that the working nature of an entrepreneurs is as a matter of fact to make decision and to bring forth new ideas trough the way of the investment of intelligence. Entrepreneurs and the intellectual assets are sometimes rare but the most important factors in the management of an enterprise. The material incentives for an entrepreneur must be found expression in the principle of distribution according to the factors, that in an important basis to distinguish from that of the ordinary workers. The second part of the paper, titled the requirement and the guidance of the incentive system, analyze the various factors which could effect the interests of the operators of State-owned enterprise, and in this part, the principle of establishing the incentive systems for the operators will be explained. Third part, titled Design and analyze of the incentive system to the operators of State-owner enterprise, is a key part of this paper. In this part, considering the reality in the State-owned enterprise, it analyzed, designed and put forward a way to improve the payment system for an entrepreneur. These analyzing and designing as well as the counter-measuring are carried out through the way of setting up a multi-type material incentives for the operators of State-owner enterprise, stressing on the shares rights incentive system and the annual compensation for the operators which presenting the modern enterprise incentive system. I hope that what I have stated in this paper is helpful to the improvement of the incentive system for the operators.