Design Research, Based On The Value Of The Eva Management And Remuneration

Since the 1980's, the American company, stern & Stewart, has put forward the concept of EVA and some basic research. They think that Only positive EVA is the true value that enterprises create for shareholders, if EVA is negative, even the profit is positive, enterprises have created no value and the working condition is engulfing the shareholder's value instead. The key thought of EVA system is to maximize the shareholder's value on the basis of balanced values, EVA has already helped and become the focus in the theory circle and practice study gradually in recent years, the thought of management of EVA is being accepted and approved by more and more persons.In this thesis, the first part introduces the value-based management theory. In this thesis, VBM was defined as a process of the merge of resource and behavior inside the organization, the goal of VBM is to set up value maximum goal and set up value-based strategy decision making program management institution, inspiration institution and finally set up the enterprise culture of value direction. Value-based Management is a kind of operating idea and management method aim at creating value for the share-holders. Value-based Management inlet the value maximum idea into enterprise operation, aim at maximum shareholder value, make the future strategic plane of organization, set up some believes suit for the future plane and enterprise's culture, make sure the index become the standard action model of organization, then make the work schedule, have a effective performance management and incentives, and bring it into force in the internal work and outside services. Value-base management is not a kind of philosophy but also a method.The author recommends how to introduce the value-base management in the second part. Most think that EVA is only a kind of evaluation system, but in fact it can not promote the enterprise value only by inlet a new value evaluation standard. Only when managers and workers have changed their own behavior can the enterprise get improved achievement. Nowadays, all the managers and all workers shall think and work in the method of owners, even when receiving the rewards. They must have the freedom ofbalance the decision, but they must work in an attitude of being reliable. They should use Capital cautiously and be decisive when a good invest opportunity reaches. Not only should they keep a worrying mentality, but also a foresight. In a word, a complete new govern mechanism is needed to the manager and staff in the company and in this mechanism each one is requested go forward, restrained, improved by themselves. This mechanism can well adapt to the requirement of the time features of ever-changeable and authority disperses. It origins not external forceful interference but its need. All of this is change brought by using EVA institution.The EVA inspiration plan was introduced in the third part of this thesis. The most advantage of EVA is the managers and all workers can enjoy the achievement comes from their hard working. EVA inspiration plan means to award the value added part, thus encourages all managers and workers to devote to improve the value of the enterprise. EVA plan makes the managers and staff behavior like the shareholders. Only the shareholders' value is added, EVA will be added, the managers and staff can get award, so the managers and staff can get award from the added shareholder's value, thus the profit of manager^ staff and shareholder can be unified and coordinated. And further more, EVA plan award the value added part, both the short term and long time term achievement are coordinated, the EVA inspiration can get combined effect of not only short term but also long time term.This thesis analyzed how to inlet Value-based management and the problems Chinese enterprise may meet during the process of inletting Value-based management, finally, the author analyzed the salary designing problem, the author think the result may be helpful to all the professional managers.