Based On The Strategic Divection Of The Stateowned Enterprises Study On The Construction Of Incentive System

Followed by the rapid development China Railway Speed Up Campaign was implemented in seven rounds and increased overall track length to 161,100 km, passenger service on 80,000 km. China ranks second place in the world. By 2012, China's railway mileage will reach more than 120,000 km.In recent years, the rapid development of high-speed railway indicate a new image of Chinese railway to the world. This rapid development does rely relatively on railway large maintenance machinery, which make the railway more reliable, safe and efficient.KM company is a central state-owned enterprise. Through technology introduction, practice and re-innovation KM company has formed wide range productions, such as tamping machines, ballast cleaning machines, stabilizing and consolidating machines, ballast distributing and profiling machines and so on. KM company is also the manufacturer and repair base with largest production and sales in China.After twenty years development the machines manufactured by KM company haven covered 18 Railway Bureaus, several Engineering Bureaus, Local railway and subway. The Market share is over 80%. However, along with the requirements of national innovation and railway rapid development, the incentive question has gradually emerged. This article raise an issue of Incentive Management System based on the Enterprise Strategy, as well as the literature and empirical study.In view of Enterprise Strategy and HR strategy, this article mainly focuses on how to build up a suitable Incentive Management System, how to keep rapid sustainable development, how to maintain a competitive advantage, as well as how to "set up a world-class railway maintenance equipment" which proposed by president Hu Jintao when he visited KM company.