The Sws Rural Credit Cooperatives Operating Incentive And Restraint Mechanisms

Rural Credit Cooperatives of SWS County, which is in SC Province MS City SWS County, is the non-listed stock cooperative enterprise which is reformed by the principles of "clear property rights, definite power and responsibility, separation of enterprise and government and scientific management." The company's system is based on separation of ownership and management rights-based agent system. That system will bring some risk to business operation. To establish "incentive and restraint mechanisms", is to promote the interests of the operator services for the shareholders.This paper mixes the method of quantitative analysis, qualitative analysis and empirical analysis, uses the theories and methods of management science and economics, bases on previous large study, learns and absorbs modern Western thought of commissioned agent theory, sets the Rural Credit Cooperatives of SWS County for study subject, studies its operators incentive and restraint mechanisms, analyzes the short, and improves the program and advance the conditions for implementation of the program.Based on the thinking of "A questionâ†'Analyze problemsâ†'solve Problemsâ†'A prerequisite for solutions", the paper empirically analyzes the Rural Credit Cooperatives of SWS County. This paper is divided into six chapters.Chapterâ… :Introduction. This chapter introduces the background, advances the issues, states the purpose, meaning and application research.Chapterâ…¡:Literature Review. This chapter defines the related concepts and reviews the literature.Chapterâ…¢:Ask questions. This chapter introduces the current status of the operator incentive and restraint mechanisms on Rural Credit Cooperatives of SWS and points out it is necessary to improve the mechanisms. It mainly uses the knowledge of management, and modern economics theory, and uses the quantitative analysis, qualitative analysis, contrastive analysis and empirical analysis.Chapterâ…£:Analysis of the problem. This chapter analyzes the impact of internal and external factors of operators'incentive and restraint mechanisms on Rural Credit Cooperatives of SWS County. It mainly use the knowledge of economic and management theories and the methods of SWOT analysis, logical induction and empirical analysis.Chapter V:Solutions. This chapter investigates how to improve the operator incentive and restraint mechanisms, and points out the designed principles and proposed improvement program. It mainly uses the knowledge of economic and management theories and the methods of quantitative analysis, logical induction and empirical analysis.Chapter VI:preconditions. This chapter investigates ways to improve implementation of the program, including improvement of a sound external environment market environment, and the Supervision and the internal environment of strengthening internal corporate governance and improving ownership structure.Through studying the operator incentive and restraint mechanisms, this paper points out that the operator incentive and restraint mechanisms of rural credit cooperatives of SWS County achieves some success, but still need to be improved. It is the premise of establishing the suitable operating environment and applicating effective monitoring tool. It is necessary to introduce the market-based operator selection mechanism, to encourage by culture and to make the operator have stand-by when they old. The best solution to the operator incentive and restraint mechanisms of rural credit cooperatives of SWS County is "annual salary+stock options".