Under The Corporate Governance Perspective A Design Of Professional Managers' Incentive And Constraints System About Company A

The core issue of this paper is to discuss family business professional managers' encouragement and constraint system. According to statistics, now, the family business in mainland China accounted for more than 90 percent. Many family-run enterprises have taken the traditional family mode of governance. After nearly 30 years' development, these enterprises have reached a certain scale. When an enterprise is developing and growing, the traditional family mode of governance has been unable to meet the fierce market competition. An external professional manager is imperative, but the lack of good management talent has become a fetter to constrain enterprise development and improvement. For the family business, an important reason of scarcity about good management talent is that the corporate governance structure does not match the actual situation of corporate development. The system of enterprises attracting and motivating talented people, and supervision personnel has been not sound.The paper looked company A as the family business model. Under the guidance of incentive theory of constraints, this article sought to design professional managers' encouraging and restraining system in the perspective of corporate governance. It is going to meet the actual development of company A and adapt to the modern market economy environment. This study will not only help to enrich corporate governance theory but also help to the establishment and improvement of professional managers' encouraging and restraint system. At the same tome, it can be conducive to the growth of professional managers, the expansion teams of professional managers and useful to raising the level of enterprise management. So, this study has important theoretical and practical significance.The whole article was divided into three parts. The first part included chaptersⅠandⅡ, which introduced the background and significance. It gave definition of the concept about the family business, professional managers, and other related incentive. At the same time, management, economics theory of incentives, corporate governance and professional managers' encouragement and constraint, and other relevant theories were expounded, which is the basis of research and design. The second part included chaptersⅢandⅣ. It investigated into hiring managers, keeping people policy and causes of separation about company A by taking the form of in-depth interviews and questionnaires to find the truth. On this basis, the author designed professional managers encouraging and restraint system of company A. This system took into account material incentives and non-material incentives, two aspects. At the same time, it discussed the restraint system to support the use of incentive system. The third part is ChapterⅤ, which summed up the full text and proposed prospects.This paper studied Company A business by combining theory with practice and practice-oriented research and analysis methods. At the same time, it used comparative study, the combination of qualitative and quantitative methods to make up professional managers' encouragement and restraint system of company A. The article also presented measures and recommendations to improve professional managers' incentive system that was bound by family management mode.In this paper, the innovation lies in combining corporate governance thought and incentive theory of constraints. In the light of the actual state of economic development, it designs a workable professional managers' incentive program, which provides a theoretical basis and practical guidance for the establishment and improvement of professional managers' encouragement and constraint system.