The Research Of Private Enterprise Share-Hold Reform And Incentive

The number of Chinese private enterprise has reached9million after30years development. Although there are millions private enterprises, only afew are strongly competitive. Family-based organization, dictatorialmanagement, financing difficulty, lacking incentive for the employees, lessattractive for high-end talents are the obstacle for private enterprise’sdevelopment. Join-stock modem enterprise is the future form of privateenterprise because it benefit from the separation of management right andownership, advanced organization hierarchy and management system.This paper illustrated share-holding reforming requirement, steps, keypoints and the principal of incentive. Also this paper took G company, whichjust finished reforming, as a case to analyze the reforming plan and incentivemechanism. By using questionnaire, fishbone chart, solver and other tools,this paper analyzed and identified four major problems: false essentialreforming, family-based organization, low incentive efficiency and less openand fair. The paper analyzed those problems and gave suggestions includingentrusted agent restriction, power balancing, increase variable payment andalign to personal performance, non-material incentive, publication and appealrules, etc. It could be a reference for those private enterprises about to takereforming.