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Research on China’s Foundry Enterprise Incentive Mechanism:the Case of Foxconn Group

Author: FuZhi
Tutor: HuangQingBo
School: Dalian Maritime University
Course: Business Administration
Keywords: Foundry enterprise Incentive mechanism Enterprise culture Performance evaluation
CLC: F272.92
Type: Master's thesis
Year: 2012
Downloads: 514
Quote: 0
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With the aid of the manpower cost and scale economy effect and other advantages, Chinese foundry enterprises have achieved rapid development by grasping international industry transfer opportunities caused by economic globalization, and have now become an important part of our economic development. But China’s foundry enterprises have been at the bottom of the international production value chain, and with the rising labour costs, RMB appreciation and the strategic adjustment of industrial structure in recent years, foundry enterprises’ cost competitive advantage has been lost gradually and are facing sustainable development crisis. For foundry enterprises, whether to develop professional foundry services or cultivate their own brands, it’s necessary to improve talent element foundation, which can be achieved by incentive mechanism. Therefore, studying incentive mechanism construction has great practical significance to current Chinese foundry enterprises in upgrading management mode, enhancing core competitiveness, and realizing long-term development.This article makes a comprehensive analysis on incentive mechanism construction in Chinese foundry enterprises, by combining the advanced concepts and development trends in modern enterprise incentive mechanism, and taking Foxconn Group as an example, which is the most representative and largest foundry enterprise in the world. Firstly, by introducing the necessity of human resources incentive, combining with the important position of foundry enterprises in national economy, it focuses on the analysis of great significance and methods of foundry enterprises incentive mechanism construction study. Secondly, on the basis of the analysis of incentives and incentives connotation, focuses on the manifestations of the modern enterprise incentive theory and incentives, The theoretical foundation for follow-up study; thirdly, combined with our foundry enterprise development process, summarize the incentives of the foundry business common problem; fourthly, it analyses foundry enterprise incentive mechanism construction strategy. In the light of the existing problems, it elaborates from three aspects as "people-oriented" enterprise culture construction, demand incentive on different incentive principle, and the standardization of enterprise incentive system. Fifthly, Foxconn Group, for example, analyzes the causes of the problem of China’s foundry business incentives, embodied in the labor-intensive enterprises, one-sided understanding of the incentives and randomness as a replacement for enterprise incentive system. Furthermore, it proposes specific measures of establishing long-term and effective incentive mechanism in view of human resources characteristics. Finally, it summarizes the main conclusion and the inadequacies of the study.The main innovation of this article is combining modern incentive theory and the actual development of foundry enterprises and establishing unique incentive mechanism, especially long-term incentive mechanism, which plays an active role in the long-term development of enterprises. Under the urgent need of Chinese foundry enterprises to achieve transformation and upgrading by strengthening the incentive mechanism, this article has great practical significance and will play a better role in guiding theory.

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CLC: > Economic > Economic planning and management > Enterprise economy > Enterprise planning and management decision - making > Corporate Administration > Personnel Management
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