The Study Of The EVA Applied To Inspiring The Managers In Local Companies

It has became the regardful focus to the enterprise owners and theorists that how to set up the effective salary inspiriting system and how many to the managers based on the value of enterprise. And it is the same thing to the enterprise owners. In westward, Stern Stewart & Co. pioneered EVA to determine incentive bonuses that make managers think like owners and the EVA has been proved effective. Some our scholars recommended the EVA, but how to apply it in our corporations with the situation of our country? We must research deeply the meaning of the EVA and its operating way. This is just the topic of the dissertation.This dissertation concludes five parts. It analyses the dilemma of motivating managers in chapter 2, pointing out that the motivation objective is to combine the benefits of managers' and shareholders', so that we can maximize the corporation value. It also demonstrates that the salary motivation should be separated into two stages: the salary computation and the salary distribution. According to the appraisal criteria of the motivation approach and combined with the principle of the EVA, Chapter 3 assured the contribution the EVA approach made to the motivation dilemma. Compared with other value management approaches, the EVA approach can not only provide the shareholders with a brand new tool, but also can be integrated with other methods, which extends its application scope and exerts its effects. In Chapter 4, in order to clarify the misunderstanding of the EVA, according to the current accounting principle and the present status of manager motivation, It tries to make it clear that we should emphasize on the solution of the adjustment of several EVA items, adjustment of salary computing formula, creation of the ways of salary distribution (combined with other ways of motivation) and regulation warranty. At the end of this dissertation, the practice of EVA in the real corporation was demonstrated and the prospective relative study was also provided. So the EVA is an effective motivation method, and also it will be useful in the practice if conjoined with other methods. By the research of the EVA localization in China, It considers that the EVA approach can provide the shareholders with a brand new tool, and some corporations in practice have accepted it.