A Study On The Employee Incentive Mechanism Of State-owned Enterprises

The opening of the 19th CPC national congress has made requests for the reform of the economic system in the country.All kinds of enterprises will further deepen the reform with the competition getting more intense.How to stand out in the increasingly fierce competition of domestic and foreign market and achieve the desired aims is a problem that every enterprise is facing and it calls for their serious attention.By now,the incentive mechanism that is scientific and effective and complies with the market rules hasn't been formed among the state-owned enterprises of China so that the activities of managers are,to a certain extent,affected and their sense of responsibility about the profit and loss of the enterprise is weakened.Therefore China's state-owned enterprises should take the initiative to change the existing situation,to establish a scientific and effective incentive mechanism and to give full play to each employee's subjunctive initiative and self-management consciousness.Company A is a subsidiary of a large state-owned business in Tianjin.Against the background of present economic development,its incentive mechanism cannot meet its own development needs.Based on the relevant incentive theories and combined with the his own work experience,the researcher carries out a research on the improvement and optimization of its incentive mechanism by employing such methods as investigation,literature review and experience summary and attempts to build a more scientific and reasonable incentive mechanism.According to the survey,it is found that there are some problems existing in its incentive mechanism such as unsound material incentive,short of effective non-material incentive and enough incentive forms etc.After in-depth exploration,the research found the underlying reasons-imperfect performance appraisal system,insufficient training for employees and failing to adhere to employee-oriented incentive measures.Therefore,to establish perfect incentive measures,the research puts forward corresponding principles.To improve the material and non-material incentive measures,the thesis points out concrete methods for improving the incentive mechanism and provides a referential guide for the sound development of Company A considering the need of its employees and the differentiation of incentive measures.