Study On Incentive Mechanism Design And Improvement For A Cover Lens Factory Based On Incentive Theory

Since the reform and opening-up, private economy has experienced unprecedented development. Small and medium sized enterprises serve as the major constitute of the private economy. Under the background of “popular entrepreneurship and innovation”, there will be a large quantity of start-ups. It is predictable that small and medium sized enterprises would take an increasingly large share in the national economy.In the 21 st century, the most importantcompetition between enterprises is the technology competition. Under the equal technological conditions, the essence of competition is the talent. The key for talent competition lies in the efficiency of manpower utilization which highly depends on the mechanism. Therefore, small and medium sized enterprises must establish an effective incentive mechanism to motivate the employees and raise the manpower efficiency and the running efficiency of the organization if they want to improvecompetitiveness and enjoy success in the serious competition. Itis extremely important for enterprises in the labor intensive industry. For such enterprises, academia mainly focuses on how to improve the living environment and settle the fund raising difficulties,and on the evaluation of their growth, pays little attention on the common issues. The author will take the first two issues as objectives,which arehow to improve the internal management of enterprises, reduce personnel mobility, and improve the efficiency of small and medium sized enterprises.This paper integrates the incentive theory in the management and the economics. It would mainly analyze and improve the problems of low productivity and high demission rate by designing and improving the incentive mechanism. In the process, it first makes use ofQuestionnaire survey. It issued 276 questionnaires and interviewed 39 persons. Such investigation covers more than 90%staff; also usesAnalytic Hierarchy Processand Pareto analysis to make quantitative and qualitative comprehensive analysis on the statistical information to find the actual reasons causing the demission. It makes optimization and improvement through 3 stages and extracts the multilevel salary plan being applicable to enterprises. At last, it raises the productivity in large extent and reduces the demission rate substantially.