Based On The Principal-agent Theory Of Enterprise R&d Incentive Mechanism Research

With the rapid development of world economy，enterprises are facing increasinglytough market environment. The steel industry as a traditional industries, the path ofthe high pollution and high energy consumption development is unaccustomed toeconomic development of today’s world. In order to survive and develop, the steelindustry must enhance the technological content and additional value of the products.So，the high-tech talent competition is fierce day by day. Incentive mechanism is thekey，which the enterprise wants to attract and retain talents. What’s more, theenterprises pay more attention to the design of incentive system in R&D teams. Theeffectiveness of R&D team incentives directly related to the survival anddevelopment of the enterprises.This paper takes Hengyang Valin Steel Tube Co. Ltd as research subject andestablishes its theoretical ground on the basis of the principal-agent theory. The paperis on the foundation that analyses the current situation, which puts forward the newincentive system of R&D teams.There are five chapters in this paper. The first chapter is an introduction, whichdescribes the research background, significance, the main research methods, contents,etc. The second chapter is related to theoretical research.this part review the progressin research and practice in the principal-agent theory and the team incentive theories.The third chapter is on the foundation that analyses the current situation, through theestablishment of the agency model of R&D team, which finds two factorsinfluencing the agent (R&D team) performance. Chapter IV is the general idea thatconstructs the new incentive system for R&D team. On the basis of clear principles,this part redesigns the material motivation and the non-material incentive for R&Dteam in GH Co. Ltd.The chapter V is the expectation and outlook. In order to ensurethe implementation of new incentive mechanism, this part expects the effect and theproblems in the course of implementing new incentive mechanism.The whole design based on performance appraisal, reflecting the fairness andjustice; the design is targeted on meeting the demands of agents, reflecting thethinking of” People-oriented ". This paper’s actual significance is through astandardized design, which builds incentives of R&D team and improves workefficiency and the level of overall R&D.