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Incentive Mechanism Of TL Company Foreign Trade Businessman

Posted on:2015-02-15Degree:MasterType:Thesis
Country:ChinaCandidate:X P LiuFull Text:PDF
GTID:2269330428975671Subject:Business administration
Abstract/Summary:PDF Full Text Request
The21st century is the era of knowledge economy, the competitiveness of enterprises is based on the performance of personnel, especially for some enterprises depend on the particular expertise. Foreign trade clerk issues involved in this paper is part of a class of such expertise. The management and incentive to the foreign trade salesman have been a business problem for long time.The "open arms" behind excellent performance is excitation, which always at the core of performance management. Under this condition, TL companies has been using internal market management, through the price mechanism and incentives to stimulate the enthusiasm of sales, in order to create more value for the enterprise to win advantage in the fierce competition in the international market, and ultimately achieve business and employees "win-win." Such incentives achieved good results in a very long time However, since2008, this market-based incentive model increasingly exposed many negative effects, resulting in salesman slack and leaving, also the company’s business scope shrinking, and orders profits falling and other undesirable phenomena. The purpose of this paper is to study the root of these negative impacts and to overcome these problems.Internal market within the company just to introduce market mechanisms in the enterprise to reduce agency cost of assets, then to reduce the final cost of the integrated management purposes. Internal market as an incentive has been used for a long way. The long history of research on effective incentive, motivate inspire encourage meaning, which is simply the use of a range of effective methods to mobilize the enthusiasm of the staff to make efforts to complete the task of the organization, and ultimately to achieve organizational goals. Then, in the internal market incentive model, how to use the relevant incentives and make the effectiveness maximize, it has real and positive meaning to the company manager. In this paper, taking TL company for example, analysis and study of the incentive applications under the internal market management model.This paper analysis the market-oriented management and incentive mechanism, demonstrate the basic principles of management of the internal market and the specific implementation, and analysis the possible transaction costs and moral hazard problems, which leads to the connotation and the effect of incentives. Then combined TL Company profile status and existing management problem, diagnose incentive mechanisms, analyze problems and reasons for its existence, put forward specific solutions. On the one hand, trying to eliminate excessive rationalization effect due to incentive of alone pay, and also emphasized the needs for intrinsic motivation and extrinsic motivation combination. Finally, starting from the corporate strategy, using performance evaluation and knowledge management initiatives to build and implement the company’s development in line with TL excitation pattern.
Keywords/Search Tags:Incentives, TL company, Principal-agent, Performance appraisal
PDF Full Text Request
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