Research On The Incentive Mechanism Of Knowledge Workers In Foreign Invested Enterprises In China

Due to the impact of different culture, knowledge workers in foreign invested enterprises in China have complicated characters of their needs, they have strong achievement motivation, mobility ability and clear purpose, pursuit of personal career development. In the past several years, foreign invested enterprises in China faced a big challenge in the management of knowledge workers, some problems included lack of incentive methods, high resignation rate and management cost increase etc. Due to the differences of geography, cultural and values, there is no quantitative description or the qualitative analysis to justify that if the incentives and incentive mechanisms coming from the mother company can satisfy the need of our local requirements. We need to do deep study to improve the incentive method and the mechanism in foreign invested enterprised in China, to find the effect and the sequence of different incentive method. Domestic scholars already started some studies in the area of knowledge workers, but still lack the academic and industrial study on those in foreign invested enterprises, especially considering gender, career period, job and position.In order to get the incentive method and mechanism pertinence and maneuverability, it is necessary to do deep reach on the incentive factors, to improve the incentive mechanism to match the requirement of current situation. This reach has a big academic meaning and operational value. The study is focused on the following issues:1. The study situation on the theory of incentive, the study and the main problem on the incentive mechanism for knowledge workers.2. The design of the incentive mechanism , the theory and the development of Principal-agent theory.3. Based on the investigation and the research of incentive method and mechanism for the knowledge workers in foreign invested enterprises in China, we analysis and discuss on the impact factors and the problems in the incentive mechanism.4. Use the questionnaires and interviews to do the investigations in the foreign invested enterprises and the factor analysis of multi-factor analysis method to do the empirical study on the survey data.5. Analysis and discuss on the incentive factor and mechanism of knowledge workers in the foreign invested enterprises in China, by the principal-agent theory and method, and design a new incentive mechanism based on the analysis result.The innovative part includes the following points:1. Generalize the domestic and abroad research on the incentive mechanism for the knowledge workers, divided the incentive of knowledge workers as two parts which are motivation incentive and process incentive as per the principle of incentive process, and defined a knowledge worker incentive model which is based on the process.2. Use factor analysis method to analysis on the incentive factors of knowledge workers in foreign invested enterprises in China. It is the first time to do the sequence as per the contribution of incentive factors, considering of management level, nature of work, age, gender, salary levels and etc.3. Detailed analysis and study on the incentive mechanism and main issues of incentive factors including career development, pay and team relationship of knowledge workers in foreign invested enterprises in China, by use of principal-agent theory. Creatively construct an incentive mechanism covering career development, pay and team relationship, and gives the recommendations of the mechanism.In this paper, the main conclusions are as follows:1. Due to the impact of different culture, knowledge workers in foreign invested enterprises in China have complicated characters of their needs, they have strong achievement motivation, mobility ability, clear target and clear purpose, pursuit of personal career development, pay more attention on the result than the process.2. the incentive mechanism of knowledge workers in foreign invested enterprises are mainly influenced by the corporate culture, values, needs and motivations, corporate governance and enterprise organizational form.3. Bases on the investigation and analysis, we find the following problems of the incentive mechanism of knowledge workers in foreign invested enterprises in China: Lack of consistency of the values and targets between the staff and the organization, lack of the clear and complete understanding of the importance of the incentive factors, lack of the understanding on the motivation, lack incentive on the process than the target. In addition, the management and the incentive methods in foreign invested enterprises in China are mainly came from the parent company, the local pertinence and applicability need to be improved, ignore the combination application of incentive methods, lack the judgement of the importance of incentive factors, too much emphasis on incentive of pay and personal career development, lack of the people caring, stable feeling, and so the high resignation rate and mobility.4. By using the factor analysis of multi-factor analysis method, we get the following main incentive factors based on the analysis of questionnaires: personal career development, paying, team relations,career planning, job content , company's development, work environment, etc. Generally speaking, knowledge wokers pay more attention on personal career growth and paying incentives, and there are obvious differences between the knowledge workers in state-owned enterprises and in the foreign invested enterprises. From the point of the nature of the work perspective, the management knowledge workers pay more attention on the personal career growth, salaries and team relations,comparing with technical staff who particularly valued the team relations, followed by the salaries and personal career development. Young knowledge workers pay more attention on the salaries, and then the personal career development and team relations.There are obvious difference between the knowledge workers with different salary levels, low annual salary knowledge workers pay more attention on the job content, and then career planning and salaries.5. by using the principal-agent theory and method, analysis and explore on the incentive mechanism and the main issues of incentive factors including personal career development, salaries and team relations, re-design an incentive mechanism covering personal career development, salaries and team relations. At the same time, from the point of company culture, work environment, job content and the establishment of a fair and reasonable performance evaluation system, discuss on construction of the protection platform for the incentive mechanism.Based on the research and analysis of incentive mechanisms in the design and construction process, because the author level and conditions, there are still many deficiencies, such as representative samples and the number of issues, and incentive mechanism established by the practical application of the problem, Have yet to be carried out in-depth study and exploration.