Study On The Manager's Incentive Mechanism Of Chinese State-owned Enterprises

The state-owned enterprises, with a wide range of industries and their predominance in economy, play a very important role in the economic and social development. Its reform has been the main concern of the specialists and scholars both at home and abroad. So far, spiritual incentive has been only neglected relatively; The medium-and-long-term incentives have been used by a small amount of enterprises; The mechanism including short-term and medium-and-long-term is to be improved. The salary mechanism of the state-owned enterprises managers, which meet the requirement of the characteristics and system of modern enterprises in terms of management system, has not been built. Therefore, study on the incentive on the managers of the state-owned enterprises has theoretical and practical importance.During the period of the converting society,the incentive on the managers of the state-owned enterprises lacks of moral and financial encouragement. Based on the reforming achievement, reforming shortage and their reasons from the angle of system optimization theory , this paper, which focuses on the development of enterprises, incentive subjective and objective, and stock right distribution, puts forward some suggestions on the incentive mechanism of the state-owned enterprises as well as the reasons'analysis.Spiritual incentive is the glorious tradition of manager's stimulating, but subject to the system of organization and the cultural environment. At present, the managers of the state-owned enterprises have double features. According to the content of spiritual incentive, the paper deems that it is quite necessary to provide the managers with various spiritual incentive, such as belief, undertakings, reputation as well as moral and sentiment incentive. Besides, any menace from the"rear"should be taken into consideration.The focus on study of the financial incentive both at home and abroad is to share the medium-and-long-term surplus of the enterprises, especially the stock right incentive. This paper reasons the importance of the stock right incentive and its effect, giving an objective analysis on inner-and -outer factors'effects on the stock right incentive, and puts forward the principles of assorting management of state-owned enterprises and the treatment of financial incentive according to the variability of an individual, and comes to the following suggestions: Firstly, we must specify the incentive objects of the medium-and-long term ,the ability and efforts and the salary quotation; Secondly, we must stipulate the salary package according to substitute principle of the short- and-long incentive in order for the managers to choose the best and obtain incentive result according to the maximum effectiveness expect , the stock right and risk preference. In the incentive process, we should include the expect of the managers'stock revenue, and specify the expect of effectiveness of the managers in accordance with that of board of directors, and also make some adaptations to the outer surroundings. The key point of the paper is that medium-and-long-term incentive of the stock right is not magic drug, but we must stipulate the proper salary quotation and optimize the incentive structure by taking the inner and outer factors into consideration so as to make better achievement of the incentive effectiveness.