Incentive System For The Enterprises Management And How To Improve The Incentive System Of Management During The New State-assets Management System

Chinese state-owned assets have been operated in a low level for many years, whichcaused bad economic results. There are many reasons, among which the most importantone is that there is lack of effective incentive system for the management. Since Chinecarried out the policy of opening and reforming, it has been bring about steadyimprovement in the incentive measures for the management in state-owned enterprises asit further developed the reform of the state-owned enterprises. Though the measuresplayed an important role in arousing the enthusiasm and creativeness of the management,comparing with the effective incentive and restrain system required in the market-directedeconomy country, the current measures need to be improved.In this thesis, it starts from analyzing the theory of incentive system. It clarifies theimportance of the incentive system to the enterprises management and the necessity toChinese state-owned enterprises management. Next it explains the following incentivemeasures carried out in different periods. It explains the grade wage system in traditionalstate-planned economy. It explains the multiform allocation system with breaking throughformer grade wage system, which was adopted during the beginning of carrying outreforming and opening policy. It explains the annual payment system and stockpromissory income system during the current system of modernized enterprises. Thisthesis analyzes the background, application, role and malpractice of the different incentivesystems. The incentive measures for the state-owned enterprises management broughtabout a great advance in different period and accorded with the demands of thestate-owned enterprises reform. But since some critical problems have not been solvedwhich affected the reform of state-owned enterprises, the incentive systems are with somedeficiencies.In the 16th National Congress of the Communist Party of China, it put forward therequirements of forming new state-assets management system. After it separated thefunctions of the government from those of the enterprise, the functions of the governmentmust be separated from the assets, because it is the inexorable trend of the policy ofreforming and opening and it is the key of improving the incentive system. This thesisanalyzes the present situation of the state assets, the necessity of forming new system ofstate assets management, the new frame of state assets management system. It affirms thatthe new state assets management system solves the difficult problems during thestate-owned enterprises reforming, such as the "vacancy" of the state-owned enterprisesmanagement. In the end, this thesis puts forward the author's viewpoints of how toimprove the incentive system of management, the annual payment system and stockpromissory income system to accord with the requirements of new state-assetsmanagement system.