Incentives For Human Capitalization Of Professional Manager In China's Private Enterprises

Private sector of the economy seems to play an increasingly important role in national economy with the continual deepened reform. Although it meets the golden opportunity to develop, the international environment of globalization and the new competitive points in knowledge-economy era still make it feel the pressure of competition and existence. In order to adapt to the changed environment, professional manager should be inducted in private enterprise to improve management ability. So it has great important realistic and theoretical meanings to study human capital incentive of professional manager in China private enterprises.Many cases show that professional manager's positive role has not given full play in his work. This thesis holds that short incentive, inefficient restrain, and trust crisis from the owner of private enterprise to professional manager, that is due to owner's family selfish departmentalism, hinder manager to give full play to his initiative and creativity, and also hinder the establishment of modern enterprise system.By using human capital theory and property rights theory this thesis clarify that professional manager is the owner of rare human capital, who has rights to share residual claimancy. So it is institutional arrangement for effective incentive and constraint mechanism to let professional manager has rights to gain residual claimancy. And considering resources and capital characteristics of labour power and needs of owner of human capital as high contribution and high post, dynamic long-term incentive based on profits sharing is better way to improve professional manager's incentive.