First-line Managers Compensation Incentive And Enterprise Performance Correlation Research

As an important component of the enterprise, team leaders are different from the high-level managers and the workers. Because as a part of the leaders, team leaders have the closest contact with the workers and they also have to do the productions with them, at the same time they play a management role in the production process, who should organize and coordinate the production process in order to ensure the production of the group to be carried out smoothly. So the wages of the team leaders is unique, which constitutes the piece-rate wages and manage wage.Pay incentives studies at home and abroad are mainly concentrated in the high-level managers and frontline employees, so there is a lot of study space in the research about the pay of team leaders incentives. Professor Zhang Yawei and two foreign experts did an experiment in a company in Yangzhou with a three-year data tracking survey and got a lot of detailed panel data, they adopt the advanced international randomized trial study to determine the incentive pay of team leaders and the relationship between the performance and the incentive.Charitable point of view, according to the gift exchange experiment theory, the increase in management wages of team leaders, constituted pay incentives. Through the comparative analysis of the experimental group and control group, incentive pay of team leaders have a greater positive impact on enterprise performance improvement. And data analysis, can be found in the team leaders to reduce the time to get the piece-rate wages for personal production, increased management time to organizing and coordinating the production of the entire group, so that the team’s efficiency.Multiple linear regression analysis through various parts of the elements of the overall efficiency and primary manager salary, Chow’s two-stage test method, found that management wage increases efficiency and wages before and after the various components of the relationship as well as significant obvious change, through empirical analysis that has a significant correlation between the primary manager salary incentives and efficiency.Speaking is a kind of costs from the corporate level incentive pay, team leaders to increase management of wage formation. As a rational economic man, the pursuit of profit maximization is the final aim. Increase in management salaries is hoped that the team leaders play a positive management functions, improve the efficiency of the team’s output, and enhance the overall performance of benefits greater than the cost of management wage increases. Incentive pay design goal is to reach the expectations of the enterprise:the team leader of the largest effort management behavior, that is, once the team needed, the team leader will give up to obtain piece-rate wages of individual labor to carry out effective management to ensure that the group work performance, but also to ensure that its management revenues (management practices take precedence over individual labor practices). The constraint is the team leader in the maximum effort level, but also personal income optimal to achieve personal and organizational optimal incentive compatible. Therefore, the need for grass-roots level managers pay a reasonable design to meet the principle of maximizing the company’s overall interests.So we designed a salary function in the form of the exponential function, and by derivation, etc., combined with the constraints to the formation of equations we get the optimal value. The design of function has a universal significance, it provides a feasible way for enterprises to implement team leaders pay incentives.Finally, we put up some policy recommendations,that enterprises should pay attention to the team leader incentive pay, and actively build a corporate culture, form a variety of pay incentives according to the particularity of the team leaders, and achieve overall efficiency and maximize profits goals ultimately.