A Study On The Foundation Of Closed System's Incentive Mechanism Under The Rareness Of Altruism

Managers should examine the environment and then adjust their organizations to keep balance with it. This kind of thought has already seeped through each level of operation in organizations. Factors of the environment effect have been considered adequately in the daily activity of various systems, the method of systemism is just exerting its strong function. The adjustment process of the organization according to the systemism standpoint and answering to the environment actually constitutes the category of organization incentive management. But because of problems such as the moral risk and contrary choice broadly exist in the talented person's function mechanism, this kind of adjustment needs an effectively mechanism. Incentive theories start logically in the individual demand or natural characters. It's necessary to examine and think of closed system's incentive mechanism problems with this start, to learn things towards factors such as altruism and so forth which relating with human nature, to deploy corresponding countermeasures analysis. After a long-term neglect, economists increasingly renew to altruism and its economic meaning with more and more interests. The factors as altruism, subjective utility, etc, have been taken as necessary complement, included into the content of"economic person". However, in regard to current circumstance, particularly the reality of practice, it's obviously that altruism is still placed in a condition of relative rareness. It still needs to study on the importance of altruism to mankind's economic activities and to the human development. Because of the existence of Altruism Paradox, the altruism's rareness has thus fine encouragement value. Associating analysis of altruism which is long-term neglected with incentive mechanism's build process will be proved an effective measure to cater to the needs of the latter's development. A good example of this rareness exploitation is integrating the altruism into the increment of objective and subjective utility, establishing positive feedback mechanism to optimize the organization's function. Then both sides in incentive activities will improve their interests and the organization produces stronger resultant force, have stronger vitality and competition ability.