Incentives Based On Performance Evaluation Operators

In essence,morden enterprise is the enterprise where the ownership is apart from the work of management.So the relationship of principal-agent exists between the shareholder and the managers.In the realism, The target function of the client and agent is usually inconsistent,there is benefits conflict between them,it can be considered as a kind of relation of game.So it brings the problem of incentive incompatibility between the two parties.In the relationship of principal-agent,the solution of the problem of adverse selection and moral hazard which is caused by the information asymmetry in the agent's behavior is the design of incentive and constraint mechanism. After resolving the problem of the information asymmetry,the problem of incentive incompatibility is corresponsively solved.Performance evaluation is the vital step in the construction of incentive mechanism,also the basic step of the design of incentive mechnism.If we ignore the performance evaluation's basic position in the design of incentive mechanism,the incentive mechanism designed will lost its rationality and it is hard to solve the relationship of principal-agent between the shareholder and managers.The main research content in this paper is:1 .Researching how to choose the proper performance evaluation indexes for managers, establishing the scienfitic performannce evaluation system.At last,we get the idea that how to design the enterprise's Balanced scorecard(BSC) which contains the EVA index.2.Using the game theory to analyse the interaction relationship between the shareholder and the managers in the frame of incentive mechanism based on the performance evaluation.By these conclusions resulted from the models,they guide us how to construct the system of performance evaluation , incentive mechanism and constraint mechnism,then provide the theories reference to resolve the principal-agent problem between shareholder and managers rationally.3.Analyzing the manager's incentive mechnism which is prevalent in the enterprises and putting forward to the scheme of synthetical incentivemechanism based on EVA balanced scorecard.4.Throught a evidence analysis,making use of the foregoing theories and the result of research in this paper to carry on the analysis and put forward the countermeasure and suggestion.