State-owned Enterprise Managers Incentives

Since the economic reforms and open-door policies begain in the late 1970' s, in order to improve the initiative of state-owned enterprises managers and local governments, China keeps on finding an effection incentive and constraint mechanism, but does not have an ideal effect. So. finding and establishing an effectiue institution to coordinate the incentive and constraint mechanism becomes not only the essential issue of the modern firm theory but also an important and urgent task in the further reform of Chinese state-owned enterprises.Based on the human capital theory, this paper studies the early, modern and present human capital theories, then analizes the human capital features, and points out that these theories, from the economics point of view, discloses the economic value of human quality and the importance of human in morden economic growth and social development, which makes us realize that although money, land and technology play an important role in economic development, human is the ultimate one to determine the social developmeut. The basic idea of the theory is of great using for reference importance for china in transition economy and lays the theoritical foundation for the incentive system of human capital in Chinese state-owned enterprises.Afrer analizing the human capital theory this paper studys the specific features of the human capital of the state-owned enterprise managers Furthermore, with the transition of ideas, this Paper poses some advanced measures used overseas to incite managers to work hard, including annual salary system, option, and, after studing the specific situation of state-owned enterprises, establishes a series models of development of the human capital including the dynanic management mechanism and incentive mechanism.Finally, this paper points out that in order to establish a better institution ofhuman capital of state-owned enterprise memagers, it is of great importance to build a nice inner and outside enviroment, Such as perfect of the laws and regulations and establishment of manager market.The development of state-owned enterprises can not mantain without managers' hard working, just as the social development cannot mantain without human hard working, with the spread and application of the human capital theory, Chinese state-owned enterprise managers value will be showen, then the state-owned enterpsises will develop rapidly.