Knowledge-based Employee Incentive

Encouragement is a system and measure that an enterprise uses to promote the efficiency and effect of the action of its staff and achieve its expected goal by satisfying their needs. Knowledge-based staff are those who have good professional skills and knowledge, engaged in technical work or the field of management. Encouragement is an effective way to promote the passion and efficiency in work, widely existed in all organizations. All the time, people have been taking about all kinds of encouragement measures and studying on the theory of encouragement. As the era of knowledge-based economy comes, the proportion of knowledge-based staff is rising and becoming a decisive factor of the efficiency and development of an enterprise. Thus, the issue of encouraging the knowledge-based staff is overwhelmingly important. For the lack of theory and practice in encouragement, in Chinese enterprises, especially the private enterprises, the issue of encouraging knowledge-based staff is far from satisfactory.This article focuses on the issue of encouraging knowledge-based staff and tries to look for a set of systems of encouraging knowledge-based staff for the reference, suitable for the reality of China, by reviewing the development of the theory and practice of encouragement, in the hope to improve the human resource management, especially in the management of knowledge-based staff.The article includes four parts as follows:1. The theory and history of practice of encouragement2. Challenges of our new age is presenting to the issue of encouragement3. The status of the encouragement system in Chinese high-tech enterprises4. Suggestions and countermeasures to improve the encouragement system in Chinese high-tech enterprisesModern enterprises are created during the industrial revolution and have a history of over 200 years now. The issues of encouragement are developing, with new measures taken and all kinds of theories created and developed, such as the need hierarchy theory, the two-factor theory, the expectancy theory and the equity theory etc......With the development of the enterprises, encouragement system is created and developed from material-oriented to spiritual oriented systems. Incentives and punishments are used together; and material and spiritual encouragement are combined. Factors such as achievement, corporate culture, environment, sensation are emphasized as well as material encouragement.In an age of knowledge-based economy, traditional encouragement systems are facing fierce challenges. Knowledge-based staff are quite different from traditional staff and have different needs, which are beyond the reach of the traditional encouragement systems and thusfierce conflicts came into being. In high-tech enterprises, many problems are caused for the lack of encouragement to knowledge-based staff, such as the instability caused by the flow of talents, increased cost of HRM, low efficiency, etc. Knowledge-based staff are great wealth of an enterprise and solution to the problem of encouragement is key to the development of an enterprise.In short, major problems in the encouragement system of Chinese high-tech companies are as follows:1. Lack of material and spiritual encouragement2. Lack of flexibility of encouragement3. Ignorance of the encouragement influence of enterprise culture and environment4. Ignorance of the long-term influence of encouragementThis article analyses the root causes of these problems: the out-dated culture; the out-dated enterprise mechanism; and the out-dated ideas of owners and decision-makers etc......Based on these analyses, countermeasures and suggestions are proposed to improve the encouragement system of our high-tech enterprises. The major measures are: 1. Exploding the dated culture; 2. Deepening the reformation of enterprise mechanism, developing the capital market; 3. Updating the ideas of enterprise owners and decision-makers; 4. Developing the Major diatheses of staffs;5. Amelior...