Research On The Incentive Strategy Of The Executive Team Of H Company,a Growth Period Family Business

As one of the most universal forms of enterprise organization,family business plays an important role in the world economy.More than 80%of private enterprises in China belong to family enterprises.However,most of these large number of family businesses are small and medium-sized enterprises.Influenced by traditional Chinese culture,especially the Confucianism,governance structure and strategic decisions of the family enterprises are affected by blood and kinship.They are different from non-family enterprises in terms of the effectiveness of corporate governance.When entering the growth stage,the family business gradually gets rid of the traditional patriarchal centralized leadership,and the entry of social talents makes the family business form the organizational governance by members inside and outside the family.The senior management team is the maker of corporate strategy and responsible for the overall organization and coordination of the company.The enterprise can motivate the senior management through material,spiritual and other means to fully mobilize their work enthusiasm and orderly promote the company's strategic goals.However,in an environment of differential pattern trust,the inside and outside the family members have different values and interests.The family executives out of self-interest factor leading,will have a stronger sense of responsibility,but the lack of binding conditions,also can appear the phenomenon of hitchhiking which will greatly hit the enthusiasm of outside.For executives outside the family,if the incentive is insufficient,the job satisfaction is not high and the organization is not attractive,which will greatly hinder the introduction and absorption of talents.If the lack of effective supervision mechanism,will cause the principal-agent problem,so that enterprises pay a painful price.Human resources are the key to the smooth transformation of family enterprises in the growth period.As the core of human resources,the executive team is a powerful engine for the healthy and sustainable development of the enterprise.Therefore,it is of great significance for family enterprises in the growth period to effectively motivate the executive team.This paper adopts the method of case study,and through the field investigation of the case enterprise H company,it finds that the main reasons for its problems of executive motivation are its non-standard human resource management,the influence of family culture and insufficient understanding of the needs of executive members.In combination with the actual situation of H company and the latest theoretical research results,the design of its incentive scheme is as follows:(1)Standardize the compensation management system in order to ensure fairness.(2)Enrich the salary structure,design from multiple perspectives,combine long-term incentives with short-term incentives,and complement each other with material incentives and spiritual incentives.(3)Introduce equity incentive plan,gradual transition between virtual shares and real shares,and coexistence of incentives and constraints.(4)Other welfare incentives to give full trust and care,enhance the sense of belonging.In order to effectively implement the incentive plan,this paper also puts forward systematic guarantee measures:(1)Standardize the organizational structure through moderate de-family,and to create a good organizational environment.(2)Establish a scientific performance management system to lay a good foundation.(3)Develop a pan-family corporate culture to enhance employees' sense of belonging,and create a good cultural atmosphere and trust environment.Innovation point of this article is based on the study in the growth of small and medium-sized family businesses,rather than the study of listed family firms have relatively mature,broaden the research the breadth of the family enterprise executive incentive.Breaking through the design of incentive schemes from a single level in the past,comprehensive design of executive incentive schemes from the three dimensions of system,material and spirit.On the basis of ensuring fairness and authority,incentive and constraint,long-term and short-term,the combination of material incentives and spiritual incentives to maximize the enthusiasm of executives.Moderate de-familyization,but not completely abandoning family characteristics,gradually build pan-family corporate culture and enhance the sense of belonging.The synergy of the three angles has enabled the family business to form a good structural foundation in the process of upgrading to the modern enterprise system.So that,the enterprise has the endogenous power of continuous growth,and finally will realize the smooth transition to the modern enterprise system.