Status And Countermeasures On The Incentives Of The Employee In Ningbo X Company

To build and maintain sustainable competitive advantages in the modern economy, state-ownedenterprises (SOEs henceforth) need not only to accumulate physical capital resources, but efficientlymanage their human resources as well.I work for Ningbo X Company, a SOE supervised and managed by Ningbo municipal State-Owned Assets Supervision and Administration Commission (henceforth SASAC). I took part in thedesign of the company’s management incentive programs, and found some major flaws in the existingincentives. The purpose of this paper, is to summarize research findings and use them to improve thecompany’s existing incentives.This paper chooses Ningbo X Company as case study. In the first place, I studies the relatedincentive theory as the theoretical guidance. In the second place, the paper employee incentive system inX Company is summarized by questionnaires and interviews to obtain the first-hand information. Basedon the survey findings, I lists the problems and shortcomings in current incentive implementation in XCompany. By analyzing the causes and focusing the circumstances of X Company, a practical andclearly aimed employee incentive scheme is rebuilt. The scheme fulfills the various desires of currentemployees in X Company to enhance their working motivation by exploring from three perspectives ofsalary drive, performance motivation and non-salary incentives, which includes compensationrefinement, performance quantization, promotion incentive, training and career motivation.The main outcomes of this paper are:The human resources structure of Ningbo X Company and employees’ approval with the currentincentive policy is obtained by questionnaires and interviews. The existing incentive policy treats all91employees in10departments, which may groups as administration, technique and marketing three parts,with identical encouraging way without placing extra emphasis on job specification. Employees expresstheir dissatisfaction and desire, which indicates that a further optimization is a must.By analyzing the results of the questionnaire survey, problems in X Company’s incentive policy arelist below, Low salary levels and lack of incentive, inadequate of internal equity, unreasonableperformance appraisal, short of encouraging promotion channel, missing individual career plan, andinsufficient emphasis on employee participation. Based on the study in the shortcomings, together with their causes, currently in X Company’sincentive policy, a new alternative scheme is proposed, including1)optimizing salary encouragement,2)re-designing performance appraisal solution by taking positions into account,3)developing a newapproach for improving career training and promotion system.This paper is a generalization of author’s practical work and theoretical learning. The author wishesthis study can offer some meaningful helps and suggestions to improve employees work enthusiasm.