Design On Incentive Mechanism Of AT Company

China has been attracting much foreign investment since the reform and opening up to the outside world. There are three reasons:huge consumer market, low labor costs and raw materials. But in recent years, with the inflation and the appreciation of the RMB, China’s labor price is growing quickly and it brings a lot of pressure. Many foreign companies plan to move the manufacturing base to Southeast Asia where the labor price is cheaper, In this case, it becomes more and more important to motivate employees and make full use of potential capacity.With the development of economic globalization, cross-border mergers and resource integration becomes more and more common. But it is difficult to form a unified culture after acquisitions as the firms are from different backgrounds. On the contrary, it is easy to cause the organizational turmoil and affect the organization management. So it is urgent to set up a common objective and direction by applying effectively incentive methods which will not only useful in cost reduction and resource integration, but also in new corporate culture building.AT company is a subsidiary of a multinational high-tech medical equipment company in Chengdu. It produces the core parts and components for the HQ. Though AT company is going steady in recent years, it is still under the dual effects of mergers and the cost pressure due to the historical reasons. We must try to negate these negative impacts and improve competitiveness by incentive.After consulting a great many references, we learned a lot from the varied incentive theories. It helps us to move to the right direction. This article tries to distinguish the needs of different levels employees and find out the main problems of the current incentive system through investigation and questionnaires survey. The present thesis researches and designs a new incentive mechanism in accordance with the strategic planning and the short-term goals of the AT company. The incentive system contains performance management, reward and punishment, compensation and benefit, training and development, corporate culture and so on. At last, we carry on it and verify it. Practice has proven that the new incentive mechanism is effective even though there are still flaws. And the research and design of AT company incentive mechanism have certain reference for the small manufacturing enterprises in the similar situations.