Different System Of Property Rights, Corporate Employee Incentive Study

With the development of the Chinese economic system reform, there comes to show the deep reasons causing the state enterprises to be lacking in energy. The enterprise property right is indefinite, and the political governing and enterprise managing is confused as well, which must be resolved through policy readjustment, so as to push our state enterprise reform. The system should be changed from " right offering and profit providing" to the renovation of the enterprise system and regulations, and an efficient road to combine public ownership with the market economy should be sought for.The indefinite relation of the enterprise property right and the confusion of political governing and enterprise managing make the entrepreneurs and the employees unable to fully develop their initiative effectively, and the enterprise's imperfect has influenced definitely on national economic development. At present, the traditional state enterprise can not stimulate their entrepreneur and employee effectively any more. The direction of the state enterprise's reform is to establish modern enterprise system. Only by clearing property right and straightening out the property right relations between the state and the enterprises, the owners and entrepreneur can you strengthen enterprise's energy and mobilize the employee's initiative.The core of the enterprise system is the property system, while its theoretical basis is also the theory of the property right system. To establish modern enterprise system, property right relationship should be made clear firstly, which can solve the problem thoroughly concerning the employees being lacking in initiative and the imperfect encouragement system.Being social people, their living and development can not separate from demand. Demand satisfaction is the internal motivation of human's economic activities. The encouragement we here discuss about and do research on is a process of demand satisfaction by the starting point "demand". Regarding the enterprises, encouragement is divided into two parts: encouragement given to the entrepreneur (manager, senior chief executive included), and to the employees (general managing people included). The second part will be discussed as an important problem, and the former will be just analyzed briefly. As the property system defines the interest relation among economic people and the transfer of the property right is available, the definition of property right provides the encouragement system for economic people, and makes them innovate continuously, so as to push the state economic development. There are two encouraging functions of the property system: the property sources allocation in macro view, the encouragement to micro body.Hereby the paper analyzes the employees' encouraged condition in traditional enterprise system and its effect through a case study and adopts the research information about the state enterprise's demand and satisfaction levels to analyze the reason of employee's insufficient initiative. The modern enterprise system in China should be a kind of new system taking "standard and perfect enterprise legal body system" as the core " limited responsibility ". The political governing and enterprise managing should be separated and property right relation should be clear. The states assets belong to the state, and the enterprise owns legal body property right.The paper discusses the encouragement to the entrepreneurs and to be employees respectively, focusing on one of the encouragement execution form, ESOP, which can connect employee's interest with his investment in the enterprise property. The paper compares the employee's satisfaction content in some enterprises with different property right system. The conclusion is that only by establishing the modern enterprise system and straightening out the property right relationship can we fully develop the employees' initiative , so as to stir up the enterprise's positive benefit.