Social Capital Perspective Of China's Private Enterprise Employee Incentives

Since reform and opening, Chinese private enterprises have developed quickly and grown into a major force driving national economic growth, they also play an important role in optimizing resource allocation, increasing economic benefits, promoting employment, stabilizing society and other aspects. But compared with other types of enterprises, especially "Three Forms of Ventures"(Sino-foreign joint ventures, Sino-foreign cooperative enterprises and foreign-invested enterprises), private enterprises are in inferior in the area of attracting and retaining talents. At present, in the final analysis, the competition in enterprises becomes into competition among talents. Only with enough talents can enterprises achieve healthy and sustainable development. Therefore, in order to respond to competition and make breakthroughs, private enterprises are urgent to establish and improve incentive mechanisms. Although the contemporary incentive theory, including economic incentive theory and management incentive theory, has been useful to analyze and solve some motivation problems, human behavior is affected by not only the hypothesis of "economic man" and his own mentality, but also the surrounding social environment which always changes. And social capital of sociology compensates for this defect of current incentive theory. Therefore, in Chinese relationship-based cultural background, this paper focuses on employees' incentive problems in private enterprises by the view of sociology. Firstly, according to the research method of literature review, corporate social capital and its basic dimensions are redefined based on previous studies. Then with ordinary employees of private enterprises as the object of study, in the leading of different characteristics of internal and external social capital, incentive mechanism model of private enterprises in the perspective of social capital is designed and built for the first time. Private entrepreneurs mainly apply internal social capital-oriented incentives (including cross-sectoral or cross-functional teamwork, informal organization, trust and corporate culture) and entrepreneurial social capital-oriented incentives (involving of entrepreneurial image, the social status of entrepreneurs, cooperation in enterprises and vertical networks) to motivate staff to achieve. Next, the model is verified by the two cases of Qingdao Changda Precision Instrument Co., Ltd. and Nanshan Group in the methods of case studies and comparative study. In the case of Chanda company, first-hand information is mainly obtained by interview, but in the case of Nanshan Group, the form of secondary data is mainly taken. Finally, this paper suggests that the construction of this model is very necessary, and the model has great guiding significance to development of private enterprises at different stages. Due to their small scale, private enterprises at growth stage should focus on guiding and standardizing the informal organization, establishing corporate culture and strengthening the social status of entrepreneurs to motivate staff. When small and medium private enterprises break through the growth limits and develop into mature stage successfully, all the incentives of the model can play an active role, but the following four incentives:"cross-sectoral or cross-functional team work", "excellent enterprise culture", "good entrepreneurial image" and "high social status of entrepreneurs", have more encouraging results. This can help the most Chinese small and middle individual and private enterprises which are still at the start or growth stage to succeed.