Performance Evaluation of Operators: Stakeholder Model

Author: Li Pingli
Publisher:
Publish Date: 2001-11-01
Features: This book aims to construct an analytical framework for internal and external factors influencing the behavior of corporate managers based on the stakeholder theory, and proposes a basic model for designing performance evaluation schemes for managers. This basic model should be both theoretically systematic and highly operational. In the modern economic society, how to coordinate the interests between managers and owners and promote the enthusiasm of managers to work for the owners' benefit is a crucial issue to ensure the effective operation of modern corporate organizations. This coordination can be achieved through direct and indirect influences on managers' behavior. Under market economy conditions, these factors influencing managers' behavior include external elements such as markets, regulations, culture, traditions, as well as internal constraints and incentive mechanisms within the enterprise, which operate in this context. These internal and external factors work together and interact, synergistically forming a system of managerial constraints and incentive mechanisms to control agency costs under certain external conditions, thereby enhancing the efficiency of corporate organizations. Managerial performance evaluation is one component of such constraints and incentive mechanisms. On one hand, it is influenced by other institutional and cultural factors that affect managers' behavior, and must be coordinated with them. On the other hand, it starts from the communication of corporate operating objectives and development strategies with the managers' personal interests, designing a relatively independent incentive mechanism through recognizing the responsibilities, authority, and personal interests of managers. This gives rise to three levels of research questions: First, the understanding of constraints and incentive mechanisms influencing managerial behavior, and the role of managerial performance evaluation within this larger system—environmental analysis of managerial performance evaluation; second, the recognition of the responsibilities of managers and the corresponding responsible parties—research on the relationship between managers and stakeholders of the enterprise and organizational issues of managerial performance evaluation; third, the understanding of managers' needs and the coordination methods between these needs and the interests of the aforementioned responsible parties—the design of a performance evaluation method system for managers based on the aforementioned research. This book employs a combination of normative theoretical research and case studies. From the entire research process and the conclusions drawn, the author believes that case studies complement theoretical research well, not only enhancing the operability of theoretical models but also deepening theoretical research. The breakthroughs of this book lie in two aspects: First, we propose an analytical framework for organizational managerial performance evaluation and the design of a method system, illustrated with practical cases to demonstrate its application and significance, thereby giving it universal practical guidance. Second, the analytical framework is based on the stakeholder theory, but further studies the protection mechanisms for the interests of different stakeholders and the channels through which they influence managers, not only enhancing the systematic nature of the framework itself but also strengthening the practical application significance of the stakeholder theory.