The Market-Oriented Reward Incentive Mechanism Design Of Managers Of TangSteel

This paper discussed the manager's human nature basis in the transition economicsystem of China, and proposed the new human nature assumption, with a modelanalysis. It offered theoretical foundation for managers participating in surplusassignment with their human capital, through analysis of the human capitalcharacteristics, and the paper presented the market-oriented evaluation indexes for themanager's contribution with their human capital. On the basis of incentive theorymodel, the paper analyzed the defects of traditional reward for managers, thenconcluded that the stock option program is an effective long-term incentivemechanism for managers. The paper then investigated the current condition of rewardincentive system for managers in Tangsteel, and conducted primary study forpromoting the reward incentive system of stock option for managers in Tangsteelunder the current environment of Chinese market. The paper designed the contract ofreward and incentive magnitude, and presented the key influential factors andrecommendations for implementation of the stock option incentive program forTangsteel.