A Study On The Design For Performance Contract For Staff Based On Principal-Agent Model

Through establishing the multi-duty principal-agent model, this article has analyzed the influences to firm performance by different performance incentive, and research the relevance between the different performance index. Furthermore, this model quantitative analysis the quantitative relations which influence the firm performance index. According the model, it can confirm the pay contract and can soundly direct how to effectively weight the performance of the staff.This paper first from single task principal-agent model, first is studied based on single mission employees optimal performance close wage scale. Then the key establishing multitasking principal-agent model analysis, respectively, the dual performance contract, unitary through the performance salary proportion of establishing, studies the influence of various factors performance salary proportion, including the employee to improve performance of the degree of efforts, the enterprise staff's absolute risk aversion coefficient, enterprise performance volatility and staff to achieve performance indicators with complete index hard effort level of relevant associated degree.Through the model analysis found that agent (employees) of different efforts of costs, the connections between the two characters of agent's behavior choice of effort has significant impacts, in order to improve enterprise's total performance, need reasonable allocate performance contract, can bigger play performance salary role, enable managers to scientifically evaluate the employee performance, in order to achieve effective guide employees in the practice of performance evaluation, enhance the enterprise's operation efficiency and performance.