The Research On Optimizing Of Incentive And Restraint Mechanism Of Top Management Team Of Ou Ge Company

Ou Ge CO2 Company is a food additive vendor with the product of pure food class CO2.It focused on the famous Soda drink producers and Cigarette makers.After 15 years' expanding of business,Ou Ge Company has built 4 factories throughout China with the annual sales income mounting to RMB400 million.In June 2011,it achieved IPO on Shenzhen Stock Market as small and middle size private enterprises.Around IPO,many problems occurred related to sustainable development of the company.For example,how to arouse the enthusiasm of management team in order to urge the management team combining the benefit of three parties(refer to the shareholders,company,and management team member as well)together?How to avoid short-term conduct and make the top management team concern more about the long-term interest of the company?How to set up the incentive system for senior management team members?How to keep high talented staff?This paper,I desire,to give some references to the issues mentioned above through my systematical and comprehensive analysis.This paper is based on acknowledge-ment of the background of public companies' incentive and restraint systems at home and abroad.Firstly,I analysis the current situation of incentive and restraint system of Ou Ge Company.By doing this,I deeply understand the incentive and restraint system of this company.Then,through questionnaire,exterior investigation,internal interview and discussion,I find the underlying incentive problems of Ou Ge Company include incentive policy unfair,incentive methods simplifications and short-dated.And as for restraint mechanism,issues such as policy vacuum,lack of control and supervise exist.Finally,from the problems existed in incentive and restraint system during the Company operating,I give out my suggestions toward compensation systems,internal rules,regulations and policies.At the same time,I have designed new incentive and restraint plan emphasizing on operational level.Material incentives and long term service incentives and non-material incentives as well are included in the incentive scheme.While restraint proposals are designed containing organization balance,internal audit,and rules restraint.The purpose of these proposals is to provide references for Ou Ge Company to strengthen it's incentive and restraint effects.The implementation of the incentive proposals can be separated into four steps.They are prophase research,incentive plan design,test run,and design finalize.In order to guarantee the successful implementation of the plan,we should focus on goal set,execution,and continuous improvement during the whole period.The purpose of these proposals is to provide references for Ou Ge Company to strengthen it's incentive and restraint effects.It may arouse the passion and creativity of management team of the Company if these proposals can be adopted.It can also provide a reference to enhance the synthetical competitive ability of the Company,and at the same time bring added values to both social benefit and economic benefit.