Operators Pay Incentive Theory And Empirical Analysis

One of major causes responsible for economy failure of Socialism is short of effective incentive, or to be exactly the incentive has not work in increasing the economics efficiency. That is why the reconstruction of incentive system in the enterprises should be drew more attention, particularly of top managers, for they have taken the leading role in organizational transformation and their capacity and endeavor hold the deciding factor for the enterprise performance. This thesis studies the essential of incentive, the compensation, discusses the attitude and pay satisfaction of top managers.In the first part of the thesis, the author analyzes the dominant need of managers upon the theory of need as well as developing period of life. And then discuss the correlation among performance, satisfaction and incentive, pointing out that since there is a relationship between satisfaction and performance, the effect of compensation can be judged, supported by the specific analysis on pay level, pay structure and culture. In the second part, the first hand data from salary investigation for top managers will be demonstrated to reinforce the theory part. The thesis ends up with a frame showing the incentive mechanism and some suggestions for the compensation reform.