The Research Of Improvement Of Incentive And Restraint Management About Senior Executives Of Rural Credit Cooperatives In County

Since 2003,the reform of rural credit cooperatives was promoted.The focuses are the reform of management system and property right system.On the one hand,the managerial right of rural credit cooperatives will be passed on to the people's governments at the provincial level.The provincial cooperative union,authorized by provincial government,exercises the rights of management,guidance,coordination and service.On the other hand,property right relationship will be restructured and the corporate governance will be improved.Incentive restraint mechanism is an important part of governance mechanism of rural credit cooperatives.Establish an effective mechanism of incentive and restraint of executive is a key link to improve performance and to guard against moral hazard.In the background of great reform in the management system and internal system,it is of important significance to research systematically improve measure of the management of executive incentive and restraint.Hunan rural credit union put mainly incentive restraint of executives into practice by ranking of institutions,benefit compensation,the selection of advanced unit and individual,promotion and removal,etc.There are the following problems these measures:the framework is incomplete,the means are so traditional,and therefore the effect is not obvious.Executives,however,have their own physiological needs,security needs,esteem needs and self-actualization needs.Job characteristics are different from ordinary employee.Therefore,incentive restraint of executives should consider the incentives and restraints simultaneously,efficiency and fairness,improvement and innovation.Accordingly,incentives of executives mainly carry out from material incentive and spiritual incentive.Material incentive ways include compensation incentive,equity incentive,post consumption,welfare incentives,etc.Spiritual incentive ways include the career motivation,objective motivation,honor motivation,reputation incentive,training incentive measures,etc.Restraints scheme of executives are designed from the corporate governance structure,administrative supervision mechanism,rules and regulations,culture and moral,etc.It provides decision-making reference of effective incentives and restrains management of executives in urban areas and rural areas for Hunan rural credit union.It also provides inspiration for else provincial rural credit cooperatives to enhance incentives and restrains of executives.