Different enterprises face great differences in market environment, industry characteristics and enterprise scale. Even for different enterprises in the same industry, there are great differences due to the differences in internal governance structure, personnel quality and hierarchical organization. We can't hope that an incentive model can solve the situation of all enterprises, which is actually impossible. Therefore, when designing the incentive plan of the company's top management, we should treat it differently and analyze the specific problems, and we can't engage in "one size fits all".
Second, combine a variety of incentives for comprehensive incentives.
In the past, when solving the incentive problem in China, we often only focused on one aspect of incentive, such as spiritual incentive before reform, material incentive after reform, especially short-term monetary incentive. According to the theory of behavioral science, people's needs are diverse and hierarchical, such as Maslow's needs of survival, safety, socialization and love, respect and self-realization. Higher-level needs will arise after lower-level needs are met. Similarly, entrepreneurs also have four basic needs, namely, survival needs, relationship needs, power needs and achievement development needs. It is difficult for any single incentive model to achieve satisfactory results. It must be effectively coordinated with the centralized incentive model, give full play to their respective incentive advantages, and combine long-term incentives with short-term incentives, and combine material incentives with spiritual incentives. Therefore, when designing the incentive scheme, we should combine a variety of ways to carry out comprehensive incentives to motivate top managers to work hard to the maximum extent.
Three, the income of senior management personnel should be adapted to the business performance of the enterprise.
The income of senior managers should be adapted to the business performance of enterprises, which embodies the principle of risk and return. The purpose of encouraging enterprise managers is to solve the performance problems of enterprises. In a single-owner enterprise, the owner manages himself and is responsible for the profit and loss of the enterprise, and there is no need for incentives. However, in a modern enterprise with principal-agent management, it is necessary to implement effective incentives for the agents of the enterprise, that is, the behavior of top managers determines the performance of the enterprise and the profits of shareholders, and the factor that determines and affects the decision-making of top managers' behavior is the benefits obtained from their behavior. Of course, this benefit may be material or spiritual. If the income of top managers is not linked to the business performance of enterprises, then incentives will lose their meaning. In the past, a very important reason for the inefficiency of Chinese enterprises was that the income of managers was not linked to the business performance of enterprises, and the managers lacked motivation. Therefore, Renda's master planner thinks that when designing the incentive scheme, we should adhere to the principle of matching income with operating performance.
Four, the income of senior managers should be commensurate with their effective efforts.
Many factors will affect the performance of the company. When designing the incentives for senior managers, it is necessary to distinguish how much contribution the managers have made and how much performance they have achieved by giving full play to their supervisors' efforts or abilities. For example, the change of company performance is the result of the change of external economic environment, or the influence of top managers' behavior. Because when the external economic environment becomes better, even if the company's top managers don't work hard, the company's performance will change accordingly; When the external economic environment deteriorates, the company's performance may deteriorate or even lose money, even if the company's top management is very cautious. In addition, for shareholders of listed companies, they are very concerned about the performance of their stocks in the stock market. However, due to the immaturity and imperfection of the China stock market, the market price of the stock is difficult to reflect the true value of the stock, and it is also difficult to truly reflect the efforts of the company's top management. Therefore, the implementation of incentives for senior managers should be adapted to the degree of efforts, not just the absolute amount of company profits or the performance of stocks in the stock market.
Five, should be linked with the long-term business performance of enterprises, so that business operators pay more attention to the growth of enterprises.
If enterprises want to achieve long-term development, especially many domestic enterprises that have begun to take shape want to realize the dream of a century-old enterprise, they must completely put an end to the phenomenon of quick success and instant benefit in their operations. Therefore, the design of large incentives for the company's top managers should focus on the company's long-term development and long-term interests, and avoid the short-term behavior of the company's top managers.