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Analysis and Design about Incentive-Chain

Author: XiaoWen
Tutor: LiShiMing
School: University of Electronic Science and Technology
Course: Business Administration
Keywords: value-chain hierarchical-chain incentive-chain transmit functions human capital incentive design
CLC: F272.91
Type: Master's thesis
Year: 2002
Downloads: 237
Quote: 2
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Abstract


Incentive mechanism, the mechanism to guarantee the business achievements and the long-term stable development, includes system and managerial (operative) levels. Enterprise is a productive unit of value with its hierarchic structure and team production; hence the incentive-chain is constructed together with the value-chain and the structure-chain. The incentive-chain consists of three levels: the higher, middle, and lower, which correspondent to the levels of the incentive mechanism. On the three incentive levels, different measures are adapted to different members according to their distinctive nature. The process of constructing a complete incentive-chain is also the process to form a ’ benefit community’ and a ’ fate community’ together with all workers.This thesis discusses the structure of the incentive-chain, and the relation between the incentive-chain and the other organizational levels. It expounds the integration of the incentive-chain and the firm strategy, objective and development. It analyses the transmit function of the incentive-chain, including benefit, pressure and motivation. A comprehensive model of the incentive-chain is also built. By making comparisons between the incentive-chain and some classical incentive theories, and by telling the differences between the common human recourses and the human capital, it stresses the bond of the incentive-chain and the human capital. In the last part of the thesis, it analyses the different characters and contents of the three levels of incentive-chain, and makes different incentive plan for each.The thesis puts forward some innovation by the idea of the incentive-chain, which is a new research field. It is expected that the new idea can offer some reference to the solution of the long-disturbed problem of incentive among Chinese enterprises.

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CLC: > Economic > Economic planning and management > Enterprise economy > Enterprise planning and management decision - making > Corporate Administration > Business leaders
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