Multinational-Corporation In China: Incentives To The Native Senior Employee

The senior employee of native country becomes the core competitiveness of development in China of the multinational corporation day by day. However, the turnover phenomenon of the native senior employee is very general in some famous multinational-corporations. This brings loss in economic and confusion in management to company. So, it becomes the problem to be solved urgently that puts up a set of rational incentive mechanisms and reduces the losses of talents for multinational corporations.The phenomenon that the native senior employee of multinational corporation turnover has two reasons mainly: (1) The cultural difference causes the cultural shock between the Chinese and foreign employees. When inadaptability and even repulsion to cross-cultural emerge in Chinese employee, the degrees of satisfaction will drop dramatically and they will leave finally. (2) The difference of individual partiality leads to the out-of-balance of psychological contracts. The psychological contract has already transferred to the contract of relation type from the transaction type in Chinese senior employee. As soon as a certain important document in the content in many aspects breaks and the company has not made and revised compensating in time, they will leave too.It reduces the cultural difference on the strategic method at first in. AHP and FCE is applied to judge the situation of cultural adaptability and the degrees of cultural shock and then according to the theory of systematic interaction in the management, the personnel who has his own strong points will be carried on the rationalized arranging in pairs. This will improve the cooperative efficiency of the whole group and fully make use of the way culture merges to alleviate the danger that the cultural shock causes. Secondly, the encouraging scheme is designed under the considerations to guarantee the balance of the psychological contract: (1) Making the senior employees have requiring right of surplus profits, high treatment benefits will partly remedy otherpsychological losses of important elements. Meanwhile, the enterprise risk will be shared and the supervising cost will be reduced, which is helpful to reduce cost. (2) Utilizing training, promoting, group competition etc. to promote the satisfaction of the senior employee and strengthening its special-purpose human capital. While accumulating the transferable human capital, their job career planning and whole market value is improved.