M Institute Of Employee Incentive System Design

Research institute is a typical knowledge-intensive organization, in which a majority of employees can be characterized as knowledge-type. These employees form the core competitiveness of a research institute. It is very important for many research institutes to figure out how to attract and retain these employees and increase their productivity. This is especially true in today's environment where market competition becomes fierce. M research institute is one of the largest research organizations in the nation and it has a large reservoir of industry experts. However, due to bad designed incentive system, the working morale is low and a lot of human resources are wasted. In recent years, the brain-drain problem has become serious, and quite a few backbone researchers resigned for various reasons. As a result, the development of the research institute faces a big hurdle ahead and it becomes urgent to reform its incentive system so as so stop the brain-drain and put the institute back to the track of healthy development.This paper tries to design a comprehensive incentive system based on the reality of M research institute and with reference to the incentive theories and practice, both foreign and domestic. I first deal with the background, purpose of the research and I also review the literature in the first section on commonly accepted incentive theories, analyzing the behavioral characteristics of knowledge-type employees. Second, based on the survey and analysis of the employees of M research institute, I lay out the existing problems and analyze their causes. In the following section, drawing the conclusions from the survey, I propose the strategies of how to design and reform the current incentive system. I, in particular, point out the necessity to combine the external incentive system with the internal one. Finally, I outline the blueprint to redesign the incentive system of M research institute: a comprehensive yet operable system that combines compensation, performance, culture, organization and process reengineering.In this paper, I think in order to motivate employees' morale and make them proactive and innovative in workplace, the key is to understand their real desire. As such, during the process of building the new incentive system, we must carefully conduct employee interviews and surveys. Only after thorough analysis can we build an effective incentive mechanism through which employees enjoy a higher working morale and unite around the enterprise.