Research On Incentive Mechanism Of Employees' Behaviors Based On Fairness Preference

The researches of economic theory and model have been based on the economicman supposition for a long time. According to the supposition, the economicparticipants only pursue their own utility to maximize, not concerned about the fairnessof the distribution. People have the sense of fairness and the supposition of economicman has been challenged severely in recent years. Many famous economists and lots ofdemonstrations have proved that people have fairness preference and when they areconcerned about the benefits of themselves, they are also concerned about the benefitsof others at the same time. Besides, fairness preferences affect people's behaviors,thereby affecting a number of socio-economic activities. Employees'behaviors have adirect impact on the enterprise efficiency and reflect the running status and the future ofthe enterprise. The research of employees'behaviors helps managers to make properdecisions, so it is a necessary condition to ensure the rapid development of enterprise.In this thesis, the theory of fairness preference is applied in the employees'behaviors and a valid method for managers to make decisions has been supplied. Firstly,the model based on the fairness of income is built by analyzing the experiment andmodel application actuality of fairness preference. Then, an analysis of employees'behaviors based on fairness preference is stated and an important effect on theemployees'behaviors by fairness preference is concluded. Secondly, based on thereward system and fairness preference, a model of employees'behaviors is built and asystemic method to solve the model is referred to. The method solves the model fromtwo aspects. One solves the model by game theory based on the employees; the othersolves the model by cost function based on the managers. Therefore, a method how toinspirit the employees is obtained. Thirdly, based on the production sharing mechanismand fairness preference, the research of employees'behaviors is given. According to thecharacteristic of production sharing mechanism, an analysis of the reason why envymentality and pride mentality appear is expatiated on and a method how to inspirit thefairness preference employees is obtained at this status.