Stakeholder Incentives: Theory, Methods, Cases

Author: Hu Chi
Publisher:
Publish Date: 2003-01-01
Features: To enhance the practicality of the book's content, it cites numerous new cases of domestic enterprises establishing incentive systems and regulations and rules issued by various levels of government. The author sincerely hopes that these cases and regulations will be beneficial to other domestic enterprises in constructing incentive systems suitable for their own needs. As incentive mechanisms are a hot topic currently, many scholars have already produced valuable research results. The author is very pleased to join this research field. Although the author is not a domestic researcher in these issues, they firmly believe that research has no end. The book also hopes to "stand on the shoulders of giants" and further advance the research on incentive mechanisms.
Chapter 1 of the book introduces incentive theory from a general perspective, including the concept and characteristics of incentives, theoretical foundations and models, implementation principles and pitfalls, and briefly discusses the current status and problems of incentive systems in Chinese enterprises, laying a background for the following discussion. Then, Chapters 2 to 6 develop in parallel along two threads: the choice of incentive methods, discussing material incentives and spiritual incentives, with more emphasis on material incentives, covering four major themes—annual salary systems, stock options, management buyouts, and employee stock ownership plans. Chapter 6 is dedicated to the various application forms of spiritual incentive mechanisms. It should be noted that although the proportions are not balanced, the author does not believe that material incentives are more important than spiritual incentives. The two methods are mutually complementary and indispensable.
From the perspective of incentive targets, the book discusses incentives for operators and employees. Chapters 2 to 4 primarily focus on incentivizing operators, as they play a crucial role in the growth of enterprises. Additionally, the development of enterprises cannot be separated from the incentive of all employees, and it analyzes the inherent logical relationship between operator stock ownership plans and employee stock ownership plans. The appendix lists a series of policies and regulations on incentive mechanisms issued by central and local governments.