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 references numerous new case studies from domestic enterprises in establishing incentive systems, as well as regulations and ordinances issued by various levels of government. The author sincerely hopes that these case studies and regulations will be beneficial to other domestic enterprises in constructing incentive systems suitable for their own needs. Since incentive mechanisms are a hot topic today, many scholars have already produced valuable research findings. The author is very pleased to join this line of research. Although the author is not a domestic researcher in these areas, they firmly believe that research has no end. This book also aims to "stand on the shoulders of giants" and further advance the study of incentive mechanisms.
Chapter 1 of this 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 issues of incentive systems in Chinese enterprises, laying a background for the following discussion. Then, Chapters 2 to 6 unfold in parallel along two threads:
- From the perspective of incentive methods, they discuss material incentives and spiritual incentives, with more emphasis on material incentives. This covers 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 matched, the author does not believe that material incentives are more important than spiritual incentives. The two methods complement each other and are equally indispensable.
- From the perspective of incentive targets, they discuss incentives for managers and employees. Chapters 2 to 4 focus primarily on incentive mechanisms for managers, as they play a crucial role in the growth of enterprises. Additionally, the development of enterprises relies on the incentive of all employees, and the intrinsic logical relationship between management stock ownership plans and employee stock ownership plans is analyzed.
The appendix lists a series of policies and regulations on incentive mechanisms issued by central and local governments.