A Study On Incentive And Discipline Mechanism Of China's State-owned Commercial Banks

With the techniques of empirical analysis, criterion analysis, quality analysis and quantity analysis, this article searches for the approaches of how to build an effective incentive and discipline mechanism in state-owned commercial banks. On the basement of incentive theories and principal-agent theory, using the game theory as a tool, this thesis analyzed the relationships of the principals and the agents in state-owned commercial banks.In the final analysis, the value creation in state-owned commercial banks should come into effect by the organically combining of the manpower capital and monetary capital. In the background of finance globalization and information revolution, incentive and discipline mechanism plays a more and more important role in management. And it has become the core function of management. So, to the state-owned commercial banks which has joined the WTO and confront with fierce competition domestically and overseas, it's a very important task that how to establish effective incentive mechanism to adapt to the talents competition in banking.When it comes to the enterprises, generally speaking, incentive problems are divided into two categories: one is to courage the operator, the other is to courage the common employee. This paper emphasizes on discussing the later type, and just makes a simple analysis on the former one. The study of motivation has focused on the human and human needs. Motivation theories studies the motivator how to courage the employee to be more effective by inspiring their potential and enthusiasm. Principle-agent theory is developed in the last several decades, which is widely applied in the field of asymmetric information collaborating relationships. The game theory is a new break-through of modern economics development. Its appearance offers the very important mathematics model for studying the question of incentive and restrain. The characteristics that the analysis of this theory has are accorded with the essential request which the incentive and discipline mechanism has. There is a close relation between principal-agent theory and game theory. They are both important parts of information economics. The difference of the two theories is that the mechanism (regulation) is fixed in game theory, while principal-agent theory searches the mechanism which is a variable.This paper completed two important combinations: One is the combination of the motivation in management and the motivation in principal-agent theory. In the past, the motivation in management, sometimes, discussed the humanity and needs, and principal-agent theory focused on asymmetric information. This paper combined the two theories, and saw them as a fundamental theory of incentive and discipline mechanism designing. The other is the combination of principal-agent theory and game theory. In this paper, incentive and discipline mechanism are founded against principal-agent theory, and using game theory as a tool in mechanism running analysis. With the analysis, we can get the results of mechanism running and its influence factors. These two combinations are the innovations of this paper.On the basement of theory analysis, with the game theory analysis results of principals and agents in state-owned commercial banks, this paper made proposals in many aspects on effective incentive and discipline mechanism according to facts of China's state-owned commercial banks.