Construction And Empirical Research Of The Compensation Incentive Mechanism For The Operator Of Subsidiary Company

As the rapid development of global economic integration,acceleration of company expansionism and deepening of the reform of economic system of China , Parent company and subsidiaries as a form of economic organization, play an important role in economic activities. Owing to large scale of organization and complicated structure, new problem has arisen such as bad relations between the parent companies and subsidiaries, the inefficiency of organization and low economic benefit. Looking at the surface of things, this is caused by carelessness of operators and being short of supervision and restraint, but the deep reason is lack of effective incentive mechanism for operators. Establishing standard and effective compensation incentive mechanism for subsidiaries'operator is of great importance to arouse the enthusiasm and creativeness of operators, improve business management level of the subsidiaries, promote economic benefits increase of the subsidiaries and realize integrated development strategy of the parent company.First, the paper makes a summary of incentive theories about the compensation incentive theory and reviews the application and practice of incentive theories to companies of China though paper analysis, document retrieval and case study. Then, the paper analyzes the problem of present compensation mechanism of subsidiaries'operator, explores to establish perfect new model of parent company's strategy-oriented compensation incentive mechanism for the operator of subsidiaries, the performance evaluation system is also built up to make subsidiaries'operator to proceed in all cases from the interests of oneself and make action according to the parent companies'strategy. Finally, the paper does an empirical study on one invest company, mainly analyzed the compensation incentive mechanism of this subsidiary company's operator, and pointed out the problem of present compensation incentive. And the same time, guided by parent companies'strategy, the paper establishes relevant compensation incentive mechanism for subsidiaries'operator.