Research On Strengthening The Performance Incentive Mechanism Of State-owned Commercial Banks In China

State-owned commercial banks are the main body of China's banking industry and the lifeblood of our national economy. State-owned commercial banks have made a significant contribution in support of national economic development, and in promote of industrial restructuring. With China's accession to the WTO, state-owned commercial banks have faced with intense market competition that the rising joint-stock banks and foreign banks have entered China. Talent is the key of competition, and the brain drain allows the banks to face with the greatest threat. Reasonable incentives can help banks to attract talent, and the performance assessment is the basis of incentives mechanism. For the reform of state-owned commercial banks, the establishment of a scientific, rational and efficient performance of state-owned commercial banks is necessary for strengthening the state-owned commercial banks internal operations and management, and enhancing the scientific human resources , and improving the competitiveness.Therefore, in the human resources competitive environment, the establishment of scientific, rational and efficient performance incentive mechanism of state-owned commercial banks can attract and retain a high-quality staff.At present, the staff performance evaluations of state-owned commercial banks have generally used the traditional assessment methods. From moral character, ability, diligence and performance four aspects assessed staff performance which employees summed up the results and competent was in charge of the evaluation, and the assessment results credited to the file. The value of performance evaluation is that play a role in the operation and management of incentive to state-owned commercial banks. However, owing to the lack of reliable and feasible assessment tools and techniques, the traditional methods of performance evaluation are only assessed as short-term behavior and performance. There are no long-term incentives to achieve the purpose of the staff, and the evaluation results aren't used in line with incentives, promotion and training. The incentives of employees to state-owned commercial banks remain at lower levels. The problems are single-excitation channels, the formality of spirit inspire, the lack of short-term incentives and long-term incentive and so on.Performance incentives must be clearly understood in the research on how to strengthen the performance incentive mechanism of state-owned commercial banks. Understanding how to reach through the performance appraisal system to motivate staff, what are included in scientific performance appraisal system, and how to apply performance assessment results to the incentive mechanism. Performance incentive is that State-owned commercial banks use fair and accurate assessment of the results to apply to pay, promotion and training mechanisms through a reasonable performance evaluation system and staff reach organizational goals by inspired the work enthusiasm, initiative and creativity. In the paper, solutions are proposed through the analysis of current situation and problems. Firstly, the basis of performance incentives of state-owned commercial banks are improved by clearly defined position and scientific assessment indicators. Secondly, true, accurate and comprehensive performance assessment results are received by the use of 360-degree feedback performance methods. Finally, the purpose of motivate staff achieved by the link to pay, promotion and training, mechanisms.In the paper, the contents have three parts:Part I: explanation of basic concepts. The main purpose of this part is that defined the contents of this article, studied main content, and carried out for the preparation of the papers. Specifically, firstly explain the theory of performance evaluation and incentive and interpret the general principles of performance incentives and the significance of strengthen performance incentives to State-owned commercial banks in detail.Part II: the main contents of this section analyze the current situation of performance incentive of state-owned commercial banks. Through the analysis of current situation of performance incentive, pointing out that the problems exist in the positions defined, and the design of performance evaluation, and the lack of accuracy of performance evaluation methods, and performance evaluation results can not be timely feedback, and unreasonable design of incentive mechanism. Part III: The section is the core of the full text. The recommendations are made to strengthen the performance incentive of State-owned commercial banks. The proposals are built based on the improvement of the basis of the State-owned commercial banks, and add up the use of 360-degree feedback performance, then obtain accurate results of the performance assessment. Comprehensive use of Performance evaluation results establishes reasonable incentives to motivate staff to achieve the purpose.The conclusion of this paper is: The performance of state-owned commercial banks should move towards standardized evaluation system and widely range of direction. Designing a fair, just and open performance appraisal system is a prerequisite for enhanced performance incentives. Strengthening performance incentives should be followed three aspects: First, perfecting the basis of performance evaluation, including introduces of the comprehensive knowledge of performance management, clear job definition and scientific assessment indicators. Secondly, using scientific method of performance evaluation, this paper is the use of 360-degree performance feedback methods in order to achieve true and accurate results of the assessment. Thirdly, rational use of the results of the assessment, and demonstrated mainly from the pay, promotion and training to strengthen incentives.