Research On Dong Fang Steam Turbine Works's Incentive Programme

Dongfang Steam Turbine Works(DFSTW) is a major manufacturer of power station facilities in China. It has seen rapid growth recent years despite unsatisfactory transportation and insufficient information. With decrease in the size of workforce and without significant increase in hardware and other facilities, the company's turbine production, which ranked first nationally last year, has risen from 2.75 million kw in 2001 to 4.24 million kw in 2002 and to 8.62 million kw in 2003. This outstanding performance is a result of the incentives provided by the management in a bid to improve production efficiency. By looking at DFSTW itself, the development trend of the power industry and the market of electrical equipment, the article will shows that the way forward for a boost in productivity and effectiveness is to promote active participation of staff through provision of different kinds of incentives, which will in turn benefit the company as staff's creativity and their willingness to take initiatives improve. The incentive programme targets three major groups of staff, namely technical staff, branch mangers and technical management staff. The technical staff is vital for the quality of products. Branch managers, who are in control of all resources of the branch, are fully responsible for the operations. The technical management staff is important for ensuring proper production procedures and smooth production process. Along with the development of the factory, both the academic achievement and the living standard of its staff have improved. This takes the demand of the staff to a higher level. An analysis taking into account DFSTW's situation and based on the level of demand, the theory of fairness and the theory of expectation shows that incentives in the forms of salary, opportunity and culture should be provided to the staff. These three kinds of incentives combine to bolster the efficiency of production.