Enterprise Employees’ Behavior Incentive Model Of Considering Fairness Preferences

Incentive theory is the focus of economics and management research, and it play a huge role in promoting the improvement of enterprise economic and social benefits. For a long time,economic theory and model are established on the basis of the hypothesis of "economic man".According to this hypothesis, the people who take part in the economic activity only pursue their utility maximization, and they don’t care about the utility income distribution is fair or not. But in recent years, the hypothesis of "economic man" was met with a great challenge.Many famous economist and a large number of empirical study proves that in real human is to have fair preference. While they focus on personal interests, they will also be concerned about the interests of others at the same time. The fairness preferences affect people’s behavior,and will affect many social and economic activities. Employee behavior has direct influence on the enterprise benefit, it can decide the management status and the long term of the enterprise. The research of incentive on enterprise employees can help the managers to make the appropriate management strategy according to the enterprise actual situation and to ensure efficient operation enterprise.In this paper, the fairness preference theory is applied to the study of incentive problems.The paper researches the employee behavior incentive model under two kinds of incentive contract, they are remuneration system mechanism and output sharing mechanism. It provides effective basis for enterprises to choose the right way to motivate staff. First of all, we introduce the background and status of research in this paper, and describe the fairness preference theory and principal-agent theory of relevant content. Secondly, this paper introduces the types and application of fairness preference model and principal-agent model.On the basis of the two models, we establish the basic model of this article, the basic model is the principal-agent incentive model based on fairness preference. Finally, on the premise of basic model, under the known conditions of employee with fairness preferences, we establish the remuneration system and output sharing mechanism of enterprise employee behavior incentive model. Solve and analysis the model closely. Point out that the relationship betweenthe fairness preference and the effort level and dismantle of the staff under the two kinds of incentive contracts, the requirement of fixed salary and agency cost from enterprise, and the impact of the design of incentive mechanism, etc. The research provide new guidance and reference for the enterprise to motivate employees.