A Study On Operator's Encourage Mechanism Of State-owned Enterprise In China

The innovation and perfection of operator's encourage mechanism of state-owned enterprise of our country are the key problems and difficult points of the state-owned enterprise reform, and have great significance in improving the operation efficiency of the state-owned enterprise and promoting the present and added state-owned assets. At present, the operation and implementation of operator's encourage mechanism of state-owned enterprise are at exploring and practicing stage, having obtained some achievement in part, but generally speaking, this kind of encourage mechanism still lacks the good running environment, a lot of restraint factors are restricting the effective full play on function of the encourage mechanism. The author, by observation, study, realizing, and analyzing the particularity of operator's encourage mechanism of state-owned enterprise, reviewing its forming and evolution and several kinds of methods often used nowadays in our country, putting forward the countermeasure of perfecting operator's encourage mechanism of state-owned enterprise by combining a lot of ideas appearing in the academia on this question and analyzing the six respects resulting in its good operation. At present, the state-owned enterprise of our country is large in quantity and wide in distribution, while there are many differences on the scope, nature, characteristic, management mode, administration structure and operations objective. Since the situation is complicated, the application of the encourage mechanism has nothing in common with each other too. And some application of encouraging means and method is at the stage of exploring, has not been approved, so the condition of popularization is still unripe. The encouraging ways includes administration rank, reputation, annual salary, stock right and EVA, etc. However, the positive role of these encouragement ways does not reflect obviously, while some of them bring passive influence. Restraint conditions that influencing the good operation of encourage mechanism of state-owned enterprise are as following: First, environment restraint. The sluggishness of state-owned enterprise reform and imperfection of state-owned enterprise management have greatly restrained the good operation of encourage mechanism of state-owned enterprise. As the state-owned enterprise reform has not reached the ideal result and the real modern enterprise system has not set up yet, the encourage mechanism under market economy condition cannot function. Second, operator selection restraint --the operation foundation of encourage mechanism. It is difficult for the operator selection of state-owned enterprise to get rid of government administrative influence. One of its obvious characteristics is that an operator of state-owned enterprise enjoys certain administrative rank. In this case, the guidance of operator's behavior is often deviated from the influence of market law and produces deviation of encouraging goals, thus it's difficult to reach motivation. Third, pluralism of state-owned enterprises and the using of encourage mechanism. The variety of state-owned enterprises'scale, administration structure, operation objective and distribution situation will inevitably result in the variety of encourage mechanism, which brings difficulty for setting encouraging goals. In case of the owner's relative omission, the operator often pursues a kind of encouraging way which leads to maximize his own interests, thus the encourage mechanism becomes a self-reward and loses the encouraging function. Fourth, imperfection in supervision and restraint of operator's encourage mechanism of state-owned enterprise. 1. Substandard administration structure and imperfect balance mechanism causes that the inside supervision and restraint cannot function normally. 2. Substandard and unripe of the capital market, product market and manager market leads to imperfect market restraint mechanism. 3. The current laws and regulations are not sound enough. 4. Achievement estimatemechanism of state-owned enterprise's operator needs further standardization and perfection. Fifth, operators encourage mechanism of state-owned enterprise and social fair problem. The social fair problem is the question that the society pays close attention to extensively at present, and a question that can't be avoided in economic reform of our country too. In this environment, material encouragement to operators of state-owned enterprises becomes relatively sensitive. At present stage, the state-owned enterprises'distribution policy and distribution system is not perfect enough; this needs to pay attention to the justice while considering efficiency. Sixth, operator's encouragement of state-owned enterprise in short-term, middle term and long-term. An effective encourage mechanism should be designed according to the enterprise's operation characteristic, developing stage, operator's effective demands and potential demands. While most of our state-owned enterprises uses short-term encouragement and welfare policy in encourage mechanism. Long-term encouragement is failed to get good application due to the imperfection of supporting policy and regulation and unripe of the market. Through the analysis of several main problems that influencing the good operation of operator's encouragement of state-owned enterprise in our country, the conclusion is that the following jobs must be done in further reforming and perfecting the encourage mechanism. First, continue deepening the state-owned enterprise reform and perfecting the company management. Make and perfect relevant laws and regulations as soon as possible to offer system assurance for state-owned enterprise reform. Accelerate the reorganization and transformation of state-owned enterprise according to its nature and function. Further advance market-based construction, perfect company's administration structure and use market means to encourage the operator of state-owned enterprise with setting up the modern enterprise system as the goal.Second, expand the operator selection channels and strengthen marketability. Get rid of the administrative color from ideology and system, closely combine the operator's interests and enterprise's development, and dispose operator resources according to the market rule. Set up and perfect manager market, clarify selection standard, choosing procedure, widen the range, and progressively set up the encourage mechanism integrated with talent's value of the market. Third, distinguish the nature, characteristic and demands of operators and choose the effective encouraging means. The difference of nature and characteristic of enterprises leads to difference in task, goal and market position, encouraging means should have different emphasis accordingly. Meanwhile, encouraging means should be made according to technological characteristics, developing stage and operator's demands of enterprise. Break current system of operator office term, guarantee the continuity and stability outstanding operator's post and establish the foundation for long-term development of enterprise. Fourth, perfect the supervision and restraint mechanism of state-owned enterprise's operator. Realize the company corporate governance structure of the state-owned enterprise as soon as possible and perfect the inner restraint mechanism. Further perfect the market function, constantly strengthen the market restraint. Strengthen and improve the supervision and restraint function of laws and regulations. Strengthen the morals and self-containment consciousness of the operator and improve the consciousness of working hard. Fifth, distinguish the classification of state-owned enterprise, standardize and perfect operator's achievement estimation mechanism. Making the assessment criteria according to enterprise's nature and characteristic. The criteria index should be concrete, clear to examine, effect and reflect the SMART principle. The middle term and long-term development potentialshould be considered. Strict and rational rewards and punishments measures should be completed. Examination and assessment structure should be authoritative and fair. Sixth, the implement of material encouragement should fully consider social fairness and handle several relations. Deal with the relation between material encouragements with social acceptance. Deal with the relation between operator interests and workers'interests. Deal with the interest distribution between operator and other managers. Correctly deal with the treatment difference between state-owned enterprises'operators and managers of other enterprises. Seventh, synthetically use various kinds of encourage measures to improve motivation effect. Design scientific and rational encourage mechanism according to the nature, characteristic of enterprise and the seven principles of encouragement. Combine the short-term, middle term and long-term encouragement to improve encouraging effect. Strengthen the spiritual encouragement's function to meet state-owned enterprise's operator's higher-level demand. The encouragement problem of the operator of state-owned enterprise has got lots of suggestions from scholars and experts, while causes many questions and contradictions too. We should treat this with the developing view, properly handle various kinds of contradictions and offer the reference basis for the development and stability of state-owned enterprise.