State Enterprises, Incentive And Restraint Mechanisms

There is a problem exists in most of the state-owned enterprise in China at present: there is no perfect Executive & Restriction System, which is also the reason that the state-owned enterprises are still struggling in the market for lack of proper economic vigor and competitiveness, though many reform policies are taken from the late 1970's. Executive Stimulation & Restriction System is the main content of Human Resources Management which goal is to release the power of human-the most active element of productive forces-to the most. For the executives of state enterprises, Stimulation & Restriction system is important, too. If there is no high-quality Executive, the enterprise will have no lasting development. The thesis discusses the basic theory of Executive Stimulation & Restriction System-the Modern Enterprise Theory at first, and then the thesis has an introduction of the mode of Executive Stimulation & Restriction System in USA and Japan. After having an analysis on the current situation of Executive Stimulation & Restriction ' System in China and studying some practices that our country carries out in this aspect, the author puts forward some principle and thought in designing the Executive Stimulation & Restriction System. For our country is still in the economic transition period, there are still some problems in the Executive Stimulation & Restriction System. We still have a long way to go. We should study and use the advanced theory and abundant experience of other developed countries, and found perfect Executive Stimulation & Restriction System on the reality of China. At last, the thesis puts forward some suggestion as follows:Firstly, Set up effective Reward System, including Annual Salary System, Position Consumption and Income Division System, Executive Stock Option, and Pension Plan.Secondly, Set up scientific Spirit Stimulation System, including Goal Stimulation, Autonomy and Risk Decision Stimulation, and Reputation Status Stimulation.Thirdly, Standardize the Internal Restriction System, including standardize the Enterprise Operation Structure, improve the Internal Accounting Control, and strengthen the Internal Assessment and Audit.Fourthly, improve the External Restriction System, including improve the market environment, strengthen the function of intermediary organization, play the supervision function of the business banks, and strengthen the legal supervision.