A Study On Incentive System For Purchasing Staff Of FS Company

China‘s manufacturing industry has experienced a huge development since the founding of People‘s Republic of China,especially the implementation of reform and opening-up policy,and made great contribution to the country‘s economic construction.The increasingly globalized economy and outsourced peripherals have made purchasing a normal part of the operation of manufacturers.Therefore,the performance management of purchasing staff and countermeasures for problems become a common focus.Since purchasing staff is key players in modern enterprises,this paper delves into the high separation rate of them in FS Company so as to find the reasons and countermeasures.Firstly,The development trends of purchasing staff are studied to find that they are an important source of core competency for companies.Professional characteristics and needs of purchasing staff are analyzed to conclude that in addition to all characteristics pertaining to knowledge-based staff and core staff,purchasing staff have their unique professional characteristics.Theories like the Contract Theory and Information Asymmetry are applied as a basis for the motivation foundation,followed by the discussion on motivation principles such as respect,fairness,combination of long-term and short-term motivations and value neutrality.Then,it analyzes phenomena at Purchasing Center of FS Company and applies Maslow‘s Needs-Hierarchy Theory and All-round Compensation Strategy in analysis of the company‘s compensation structure.By case study of FS Company,stock ownership motivation is a mid-and long-term motivation plan in FS‘s motivation system.Choices of SOM methods are then discussed,such as employee stock ownership plan,stock option motivation,stock appreciation right and restricted stocks.The author also explores the performance assessment of purchasing staff based on financial indicators,client-related indicators,indicators on internal process and learning and developmental indicators.For purchasing staff,the KPIs should be those related to their achievements,competency and attitude at work.In the end,the author concludes that purchasing staff are the most important human resources of modern manufacturers;purchasing staff have their unique professional characteristics while sharing common characteristics with other core staff and their loyalty can be incented.It is hoped that this paper can offer some references to those manufacturing companies who suffer huge losses from their high separation rate in purchasing staff.