A Securities Company Incentive Mechanism

As an organization of cooperation, there exist many profit entities (such as owners, managers and employees) in the stockjobber, whether which can generate resultant force depends on the arrangement of the incentive institution. Thus, the core of the reform of stockjobber is to seek an effective incentive mechanism, which is comprised of two levels--the incentive of owners to managers and managers to employees. The former is the most critical issues in the joint-stock company and relies on arrangement of the incentive institution in the joint-stock company. The later is an important function of the management and mostly depends upon the abilities of managers. Chinese economists are devoted to the studies of joint-stock company incentive, that is to say, emphasizing interest balance between government and company and innovation of enterprise institution and improvement of property structure, and ignoring incentive to the employees. Though the incentive incentive to the managers is important, it is far beyond resolving all the problems in the company. The most foundational part of an effective company is constructing the framework of incentive mechanism. According to the efficiency theory advanced by Leibenstein the organization's efficiency lies on the efforts of all the employees and the organization's efficiency and can be improved by adjusting the organization's inner factors(for example, way of rewards and punishment and structure ). The main reason of the low efficiency in Chinese stockjobber is improper management. On the other hand, the employees of stockjobber are knowledgeable workers and only effective incentive mechanism can motivate them to be involved in the development of the company. Therefore, it is very meaningful to study the issues of incentive of stockjobber workers. The main content of the thesis is arguing the principles and framework of incentive mechanism design of A company by analyzing problems existing in it's management and applying the knowledge about incentive theory and studying foreign countries'stockjobber how to motivate their employees. The author hopes some ideas of the thesis could off provide some valuable ideas to the practice, which is the supreme purpose the thesis is written for. The thesis is divided into four chapters. The first chapter is the problems existing in the A company and discusses the necessarity of reformation. The second chapter is the theory o f establishing the incentive mechanism in A company. The third...