The Study On Manager’s Incentive Mechanism Of China’s State-owned Enterprises

The incentive problem of managers has been the theme and challenge ofenterprise development, for China’s state-owned enterprises, the agency relationshipis particularity, which greatly increases the difficulty of the operators to implementeffective incentive. Look at30years of the reform process from the state-ownedenterprises, our manager’s incentives have been a lot of practice and exploration,made some success and accumulated some experience, the form of incentives is indiversification, some material incentives like the annual salary system, equityincentives and some spirit incentives like career incentives, reputation stimulation havebeen in pilot and promotion. In recent years, the state has given many policies tosupport managers motivation of state-owned business, however, in the process ofpractice, there are still various obstacles impact the incentive effect of managers,which makes the state-owned enterprises in low operating efficiency. Therefore, weshould further improve the incentive system of state-owned nature of the businessmanager, and promote the state-owned nature of enterprise’s healthy development.The paper is on the basis of summing up a large number of research results athome and abroad, use the Marxist theory as a guide, reference to the Western theory,combine with the present situation of China’s state-owned nature of the businessmanagers incentives, for the various problems arising in practice, put forwardrecommendations and countermeasures to further improve the incentive system ofmanagers. Firstly, clearly define the related concepts, comb the theory of managersneed and incentives, and property rights theory, agency theory is the theoretical basisof this article, Marx’s Theory of Property Rights, reveals that the essence ofdistributed enterprise is based on the distribution of property rights, this studyprovides a scientific point of view; Secondly, from the departure of corporatemanagers’ incentives, I expounded the necessity of China’s state-owned nature of thebusiness managers incentive; Thirdly, sum up the evolution and development ofstate-owned enterprises the managers’ incentives method, and make specific analysisof the various problems in the practice; Finally, from the view of perfecting material incentives, mental stimulation and strengthening the supervision and restraint, makethe recommended countermeasures about managers’ incentives of China’sstate-owned enterprises.