Linbao Company Incentive Programs To Improve

LINBAO Company of Limited was founded in 2000, and it is a high-tech enterprises with independent intellectual property rights, which contains design, R&D and manufacturing. The main business of the company is molded hybrid nickel-hydrogen batteries for automobiles and advanced cylindrical Ni-MH battery used for military, civilian, industrial. With the improvement of governance structure of LINBAO Company of Limited, the traditional concept of incentives mechanisms didn't meet the requirements of the company development. At present, LINBAO Company of Limited has two obvious difficulties. One is the incentive mechanism is not flexible enough, the other is unreasonable allocation of the program. It is necessary to pay attention to improve the weakness as soon as possible, or in future market the company will be confronted with a severe challenge. In short, it is imperative to improve the incentive mechanism of LINBAO Company of Limited.This thesis starts with incentives and incentive mechanism. First, it introduces incentive theory about domestic and international, then analyses the advantages and disadvantages on domestic and foreign enterprises. Then, the author analyses the problems LINBAO Company of Limited, and designs an improved incentive program which is more suitable for the long-term development of the company. According to the existing performance appraisal methods:Balanced Score Card (BSC), Management By Objectives (MBO), Key Performance Indicators (KPI), the author establishes useful performance appraisal system.Chapter one based on the research background and significance of the theory, summarizes the status of foreign and domestic researches.Chapter two introduces the related incentive theory and an overview of the performance assessment methods.Chapter three analyses the current situation of incentive mechanisms with questionnaire survey and ANOVA analysis, mainly from both the effectiveness and organizational behavior analysis, and conclude the existing problems of the company.At last, the thesis put forward the priority reform proposals on the company's incentive system.Chapter four offers to take improvement of the salary system as core improvements of the incentive program. The paper designs different salary incentive mechanism as below:job performance wage system, fixed-wage system, special talents agreement wage system and so on, the company's executives and key employees should be improved with a stock option system and other incentive plans. Meanwhile, to protect the implementation of the improvement, the author proposes the support related systems, which is mainly combined BSC, KPI with MBO.Chapter five analyses and evaluates the effects of the implementation of new incentive programs, a conclusion is made:The new incentive mechanism of LINBAO Company of Limited is effective, and the target of inspiring staff is achieved.