A Study On Innovation Of Incentive Mechanism For BGHEDI

Beijing Gas and Heating Engineering Design Institute (hereinafter "BGHEDI")is a professional design institute with 45 years' history. The major employees ofBGHEDI are those technical staffs who have higher education background. With theestablishment of socialistic market economy system and China's entry to WTO, themarket competition is getting fierce. The existing management mechanism andincentive mechanism cannot meet the need of its survival and sustainabledevelopment. This article designs a creative incentive plan for the institute by takingthe incentive theory in the studies of management and economics as the theoreticalbasis and by means of practical investigation of the Institute. The train of research thoughts in the article is mainly reflected in three parts:documentation, case study, analysis of staff requirement levels and the performanceof the existing incentive mechanism and an innovative design of the incentivemechanism for the Institute. The study of documentation is the theoretical basis of thesis research. InChapter II, the author studied the design of incentive mechanism by using forreference the incentive theory, different perspectives and the practical procedures ofincentive mechanism. Through the study of documentation,the author selected thenormative method and the train of research thoughts of the article, and made someinnovative experiments based on the research results at home and abroad. The case study mainly concentrates on summarizing the incentive practices ofthe enterprises in different industries, especially focusing on the research on theincentive practice in the engineering reconnaissance consulting and designingindustry in China. These are placed in the last two sections of Chapter II, where theauthor analyze the difference between the incentive theory and the incentivemechanism design practice, the reasons behind and some room for improvement. The analysis of staff requirement levels and the performance of the existingincentive mechanism and an innovative design of the incentive mechanism for theinstitute are the main part of the article, which constitute Chapter III, Chapter IV, IIIChapter V and Chapter VI. In this part, the author disserted from five aspects. Firstof all,the author analyzed the current incentive situation of the institute, and at thesame time investigated the features of (unsatisfied) staff requirements. Based on that,the author designed a systematic solution to the incentive mechanism, includingorganizational design, the design of performance excellence program and the waysof motivation. With a view to the staff requirements and the prominentcharacteristics of strong consciousness of participation, self-determination andself-recognition, the author proposed an incentive plan covering stock right,remuneration and welfare, dual promotions of administrative position & professionaltitle, training and cultural motivation. Finally, the article concentrates on theimplementation of the plan. The implementing procedures and assessment of theresult are designed. Because the Institute is representative in this industry, the result of this researchhas positive and practical bearing in directing the Institute to perfect its incentivemechanism, solve its problems and promote its development. In the meantime, it canbe a good reference for other design institutes to design their incentive mechanisms.