Research On The Optimization Of Employees’ Incentive Mechanism In Company A’s International EPC Projects

Till now,there are over 200 construction companies operate on delivering turn-key Projects within China,which were predominately in Construction services and has now expanded to Engineering,Procurement and Construction（EPC）services.Some of them have even made steady establishment in the oversea market.Company A as a subsidiary of China Petroleum Corporation,is a state-owned company,starting from early 1980’s focusing on Project subcontracting and export of laborservices.After nearly fourty years of development,it is now the biggest EPC companywithin China Petroleum Corporationwith the most experienced,outstanding performance from the high-end international market,and the most influential brand name.Throughout operating and delivering Projects and management programs,Company has cultivated many talents with international experiences,which have enhanced the overall Company project management and made the Company become more competitive in its field.As China becomes more open to the world with the execution of"one belt one road"strategy,the international market becomes more competitive.Projects with higher technical requirement from Client as well as competitive commercial price leave EPC company with less profit margin.During the project execution,Company A operates differently based on the uniqueness of the employees’nationality,contract type,as well as their culture difference.Only by setting up effective incentive encouragement mechanism with the consideration of the particularity and complexity of oil and gas industry,and the needs of the employees,it will develop the potential of each individual,engage the team,and increase the overall performance to further ensure the timely delivery of the projects.Starting in western countries from 20^thCentury,systematic incentivemechanism studies were found respective from the view of themanagerialist,economist and psychologist.The western incentive theories provide the direction to the Chinese researchers.However,to be able to utilize in China,it shall consider as per China’s national condition,industrial characteristics,the nature of the company as well as the type of the employment and etc.After analyzingthe published references and documents,it was found that the incentive encouragement mechanism found by Chinese researchers and project managers is established based on the research of all kinds of business industrials,career type and group of individuals.It provides general solutions and improvement methods in macroscopic scale,but not sufficient and thorough for international EPC project industrials,due to lack of consideration for talent cultivation,evaluation and certification of project managers,job position rotation of employees,and the Union function to the Human Resource management and etc.Based on the effective project management practice,this articleis developed from thorough research of the employee incentive encouragement mechanism and provides references to human resource management of international project to further enhance the international project management level.Author has performed the research based on professional books,articles,and newspaper/magazines and etc.,on human resource management,and made comprehensive understanding on theories of human resource for international EPC projects,as well as new results and methods of employee incentive encourage mechanism,incorporated with his many years of human resource management experiences in project executed in countries of Middle East,East Africa,and Central Asia.Research is made based on the collected survey data.Analysis is made based on the current incentive encouragement mechanism to employees of Company A,to further identify the existing issues and their root cause.Improvement and optimization are made based on the findings with the incorporation of the incentive theories.Using an actual project as a case study,differences are concluded based on comparison between operation of internal EPC project and incentive encouragement theories.The research on employee incentive mechanism of international EPC projects is quite beneficial.First of all,it will help identify and resolve system issues,effectiveresourcesutilization,optimize talents allocation,encourage each individual as well as the team,to further improve the organization performance.Secondly,based on the improved employee incentive mechanism,it will maximize the effect of project management incentive encouragement,to further improve the employee satisfaction,stimulate the best performance of the employee with the creation of bigger value,and build cultural bond between employees and company.Thirdly,from the in-depth study of the international EPC project incentive encouragement mechanism of Company A,it will reflect common existing issues in human resource of EPC project field,and provide improvement solutions with focus to this field,to further provide reference and promote sound development to international EPC project businesses.Based on the research,existing issues in the employee incentive mechanism of CompanyA project,such as:low incentive on salary and welfare,lesseffective in performance evaluation system,trainings,career development,delay on the company culture development and etc.Those issues are caused by lack of innovation on the management idea,lack of effective communication and insufficient survey from employees,lack of effective communication with employees before establishing this mechanism,and consideration of the needs of each individual.The overall incentive target of EPC project could not be reached if this mechanism is not functional.The overall international level of China’s international EPC companies has improved,as well as the income of the employees.The necessity of survival is still the primary need of the employee and their families,also the training and career development.To be able to motivate employees,it shall consider firstly their satisfaction of economics,trainings,and career development.In another word,the key factors would be incentive salary and training development.Meanwhile,working environment,emotional bonds,and spiritual encouragement would satisfy the employee needs of better corporate culture and social networking.