Abstract: Incentive theory is an indispensable branch of contemporary management and plays an important guiding role in management practice. This paper introduces several typical incentive theories, and probes into their enlightenment to enterprise management. Finally, it summarizes three commonly used incentive methods in enterprise management.
Keywords: motivation; Incentive theory; motivation model
1, incentive theory
The root cause of motivation can be divided into internal cause and external cause. The internal cause is composed of people's cognitive knowledge, and the external cause is the environment in which people live. In order to guide people's behavior to achieve the purpose of motivation, managers can create conditions to promote the satisfaction of these needs on the basis of understanding people's needs, and can also change the personal action environment by taking measures. Demand and people's intrinsic motivation and environmental stimulation. A variety of specific incentive theories have been formed, which can be generally divided into incentive demand theory and incentive process theory.
1. 1 Need Theory of Motivation
(1) needs hierarchy theory.
Maslow published the book Theory of Human Motivation in 1943, and put forward the famous hierarchy of needs theory. He believes that people have five levels of needs: physiological needs, security needs, social needs, belonging needs, respect needs and self-realization needs. These five levels are gradually formed and reached from low to high. Physiological needs and security needs are called lower-level needs, while social needs, home needs, respect needs and self-realization needs are called higher-level needs.
(2) Two-factor theory.
The two-factor theory was put forward by American behavioral scientist Herzberg. In the late 1950s, Herzberg and his assistant visited 200 engineers and accountants in Pittsburgh, USA. The interview mainly revolves around two questions: what are the things that satisfy you at work and how long this positive emotion will last; What are the things that make them dissatisfied? Estimate how long this negative emotion will last. Based on the answers to these questions, Herzberg set out to study what makes people feel happy and satisfied at work, and what causes unhappiness and dissatisfaction. As a result, he found that what satisfied employees belonged to the work itself or the work content; What makes employees dissatisfied is the working environment or working relationship. He called the former an incentive factor and the latter a health care factor. Health factors are related to working conditions and working environment, including company policies and management, supervision, salary, colleague relationship, working environment, interpersonal factors and so on. Incentive factors refer to factors suitable for personal psychological growth, including achievement, appreciation, work itself, sense of responsibility, self-motivation and so on. Research shows that not all needs can stimulate people's enthusiasm, and only those needs called incentive factors can stimulate people's enthusiasm when they are met. Lack of health care factors will bring strong dissatisfaction, but when health care factors are met, they will not bring strong incentives.
2.2 process theory of motivation
(1) equity theory.
The theory of fairness was put forward by American psychologist Adams. The basic content of fairness theory includes three aspects:
(1) Fairness is the driving force of motivation. According to the fairness theory, whether people can be motivated depends not only on what they get, but also on whether what they get is fair with what others get.
② Model of fairness theory (i.e. equation): In the formula of Qp/IP-QO/IO, Qp represents a person's feelings about his reward. Ip represents a person's feelings about what he has done. Qo represents the person's feelings about the return of a comparison object. Io represents people's feelings about the input made by the comparison object.
③ Unfair psychological behavior. When people feel unfair treatment, they will feel distressed and nervous, which will lead to behavioral motivation, work efficiency decline, and even rebellious behavior.
(2) Expectation theory.
Frum believes that the motivation of an activity depends on the total expected value of the result he can get multiplied by the expected probability that he thinks it will be realized. It can be expressed as:
M = V E
Among them: M-a kind of motivation, refers to the intensity of mobilizing people's enthusiasm and stimulating people's potential.
Five-target potency refers to the value of meeting individual needs after reaching the goal. Expectation refers to the probability of reaching the goal and leading to a certain result based on the subjective judgment of past experience.
2. Inspiration of incentive theory.
2. 1 Incentive must consider the needs of employees.
According to Maslow's hierarchy of needs theory, incentives must consider people's needs, and we will give what others need. Such incentives are really effective. For example, a person is starving to death, and it is useless for you to give him ten golden mountains. It is more direct and effective to give him a loaf of bread. The hierarchy of needs theory requires managers to correctly understand the hierarchy of needs of the managed; Strive to combine the means and methods of management with the needs of employees to meet the needs of the managed; While meeting the needs, we should also consider the various needs of employees and give targeted incentives.
2.2 Incentives should also pay attention to fairness.
Unfair and unreasonable bring psychological contusion. There is an ancient saying in China that "people do not suffer from poverty, but suffer from inequality". In the process of motivation, we should pay attention to guiding the fairness psychology of the motivated people so that they can establish a correct concept of fairness. One is to realize that absolute fairness does not exist, and the other is not to blindly compare. In order to avoid employees' sense of injustice, enterprises often take various measures to create a fair and reasonable atmosphere within the enterprise, so that employees can feel the subjective sense of fairness.
2.3 the setting of incentive objectives
In terms of motivation, expectation theory encourages managers not to adopt general motivation methods, but to adopt the most effective motivation methods that most members of the organization think, and when setting an incentive goal, it is necessary to improve the comprehensive value of its effectiveness as much as possible to increase the difference between the expected behavior and the unexpected behavior of the organization. In the process of motivation, we should properly control the expected probability and actual probability and strengthen the guidance of expected psychology. If the expected probability is too large, it will easily lead to setbacks, and if the expected probability is too small, it will reduce the motivation; The actual probability should benefit most people, and it is best that the actual probability is greater than the average personal expectation probability and suitable for titer.
2.4 Develop an effective incentive system
Before making the incentive policy, we should carefully investigate all the needs of employees and make a detailed list. Then separate the satisfied and dissatisfied parts of the company and cross out those dissatisfied parts. Seriously study the parts that can be satisfied, find out the ways to satisfy, and streamline these ways (operability). After the above work is completed, the incentive policy will take shape. Next, we need to formulate specific rules, that is, what conditions employees who get a certain level of motivation need to meet. In addition, at each incentive level, several different options should be designed, and employees can choose one of them according to their personal needs. For example, at a certain incentive level, there are many choices, such as technical training, public travel, paid vacation and so on. Employees can choose one according to their own needs.
The incentive policy itself has a perfect process. This requires managers to constantly understand the needs of employees in their work and reflect the new needs of employees in time to maintain the sustainability and effectiveness of policies.
3. Incentive mode:
Effective incentives must be achieved through appropriate incentives and means. According to the content and nature of incentives, the ways and methods of incentives can be roughly divided into three categories: material benefits incentives, social psychological incentives and work incentives.
3. 1 material benefit incentives
Incentive of material interests refers to the ways and means to stimulate the material needs of the managed by regulating material interests, so as to stimulate their motivation. It is the most basic incentive means, because getting more material benefits is the common aspiration of ordinary employees, which determines the satisfaction of their basic needs.
3.2 Social psychological incentives
(1) Target incentive. That is, the way to stimulate motivation and arouse enthusiasm by setting appropriate goals with goals as the incentive.
(2) Educational incentives, including political education and ideological work.
(3) praise and criticism. It is a kind of incentive that managers often use.
(4) Respect incentives. Managers should take every opportunity to trust, encourage and support their subordinates, and strive to meet their demand for respect in order to stimulate their enthusiasm for work. It should include the following three aspects.
① Employees participate in management. The so-called employee participation in management refers to letting employees and subordinates participate in the research and discussion of decision-making and management at all levels of enterprises to varying degrees. Discussing major issues of an enterprise on an equal footing can make employees feel the trust of their superiors, thus experiencing that their own interests are closely related to the development of the enterprise and generating a strong sense of responsibility.
2 example motivation. To inspire by example, we must first set an example. choose
When setting an example, we should pay attention to the fact that the behavior of the example is indeed the best in the enterprise, so as to be convincing; Secondly, we should widely publicize the deeds of role models, let employees know, and make the learning objectives more clear.
③ Competition (competition) incentives. In order to improve the work efficiency of employees, enterprises often formulate competitions to motivate employees. Pay attention to the goal not to be too high or too low, so that employees will work hard for this goal. It is necessary to carefully select prizes, compete fairly and openly, and announce them after the game to achieve the ultimate effect of motivating employees.
3.3 Work motivation
According to Herzberg's two-factor theory, the most effective motivation for people comes from the work itself. Therefore, managers must be good at adjusting and mobilizing various work factors, do a good job design, and do everything possible to make their subordinates satisfied with their work in order to achieve the most effective motivation. Inayama Yoshihiro, a famous Japanese entrepreneur, pointed out when answering "What is the reward of work" that "the reward of work is the work itself", which profoundly revealed the importance of the intrinsic motivation of job enrichment.
Work motivation is an incentive method to mobilize the enthusiasm of employees by promoting the enrichment of their work, and its essence is to make work itself an incentive factor. Excellent enterprises not only pay employees, but also add meaning to their work, making employees feel that their work is very challenging and fulfilling. But also allow them to expand their work scope as much as possible, allow them to change jobs frequently, adjust their work intensity, and encourage them to have a strong interest in their work. In this case, employees can maximize their intelligence, enthusiasm and enthusiasm. The work incentive method is worth learning from China enterprises. At present, most domestic development-oriented enterprises are labor-intensive enterprises, with low technical skills, narrow focus and strong repeatability, which easily leads to boring work and affects production efficiency. If the rotation process of workers can be reasonably arranged to make their production operations more colorful from monotonous, perhaps some workers will exert greater potential from rotation, thus establishing several processes that meet their interests and they really like to do, so that they will be more willing to take root in the enterprise for a long time.
4. Conclusion
Incentive theory is an indispensable branch of contemporary management and plays an important guiding role in management practice. Motivation is a knowledge of managers. Scientific application of incentive theory can effectively stimulate the potential of employees, unify enterprise goals and personal goals in practice, and then improve the operational efficiency of enterprises.
In order to adapt to the unpredictable market, meet the rich and personalized customer needs, and win in the fierce competition of globalization, designing an effective and agile organizational structure is a temporary new topic for all organizations. Therefore, the structural design of the organization must be able to smooth the vertical and horizontal information flow in the aspects of departmentalization, post setting, management level, communication mode and structural mode, which is necessary to realize the overall goal of the organization. Only in this way can the organization be effective. As can be seen from the current organization chart of Hongyuan Company, the company is a linear functional organization structure. The advantage of this structure is that the whole organization not only ensures the unity of orders, but also plays a functional role, which is conducive to optimizing the decision-making of administrative managers. According to the materials, the company has too many management levels. Because there are too many branches in each department, there are communication problems in organization and management, which leads to the inability of all departments to work together; At the same time, each department has its own system and implements multi-head leadership. Often due to the multi-head policy, it is easy to see the inconsistency between command and order, which hinders the centralized and unified command of enterprise production and business activities, easily leads to management confusion, and is not conducive to the implementation of the responsibility system and the continuous improvement of work efficiency. The functions of the company overlap and the management is chaotic, because in real life, faced with the same problem, all functional departments often start from the standard, which leads to disagreement and even conflict of opinions and suggestions, and increases the burden of superior managers to coordinate functional departments. Secondly, the role of functional departments is greatly limited, and some subordinate business departments often ignore the guiding suggestions and opinions of functional departments, which makes the favorable suggestions unable to be implemented and delays the development of the company. At the same time, combined with Hongyuan Company's own operation, there is a corresponding conflict between the functional departments of the head office and subsidiaries, which makes it difficult to reach a * * * understanding, and at the same time, the functions and powers are scattered, resulting in a decline in the company's internal coordination ability.
Hongyuan Company has grown from a few people at the beginning to more than 1300 people today, and its assets have also grown from15 million yuan at the beginning to 580 million yuan today. Its business has expanded from a single real estate development to a diversified industrial company with real estate as the core and integrating entertainment, catering, consulting, automobile maintenance, department store retail and other businesses.
At present, the company should not only effectively control the subordinate operating institutions, but also reduce the workload of the superior managers as much as possible and reduce excessive intervention in the daily operation and management affairs of the subordinate operating institutions. According to the principle of "centralized policy and decentralized management", the enterprise should be managed by the structure of business division; Centralized decision-making and decentralized management require effective management.
Division is an internal management structure established by enterprises according to the principle of decentralization, and it has great independence in operation. The reason why the business division can have greater independence is mainly because the products and markets it operates have a considerable scale, which meets the requirements of a relatively independent economy. There are three basic conditions for the establishment of business divisions: first, each business division must have operational autonomy and operate independently within its own products and markets according to the general policies and requirements of the enterprise, so it is an independent business center; Second, each business department is responsible for its own business activities and operating results, and implements independent accounting, so it is an independent responsibility center; Third, each business department has the right to share the corresponding economic benefits according to the size of the operating results, and distribute the benefits internally, so it is an independent interest center. Hongyuan company can set up five branches: 1) comprehensive entertainment center; 2) Housing development company; 3) Decoration company; 4) automobile maintenance company; 5) Property management company, changed to 5 business divisions. In hierarchical management, the fewer levels, the greater the control range. When an organization uses self-managed groups, this range becomes very large. Therefore, the company should cut off the repeated management of various business departments, on the one hand, to ensure the control of the head office, on the other hand, to save the company's management costs. The contact between business divisions is coordinated by the head office to achieve the unification of administrative orders, so as to prevent the emergence of multiple leaders. Since each business department originally evolved from each branch, there is no need to re-establish the personnel and organization, only need to carry out appropriate restructuring and reform, so as to reduce the company management expenses brought about by this change. The head office only takes back part of the rights, and still gives each business department greater independence to ensure the sustained and healthy development of all businesses. However, we believe that the management of the head office should properly control the development of the company's diversified business, because too much blind development is likely to cause the company to be too large and the management will increase again. Especially at present, the company is in the process of organizational structure reform, and expanding business is the top priority. In this extraordinary period, the company requires stability, so the reform should not be too fast or too big, so as not to cause too much psychological impact. By changing to the division system, the head office can recover more rights, making it easier to control and plan the company's future as a whole.
The key to the structure of business division system lies in the centralization and decentralization between superior and subordinate management institutions. The top management is the highest decision-making body of the enterprise, which is mainly responsible for the strategic management of the enterprise, formulating development goals, policies and overall development plans. In addition, it is also responsible for the overall coordination of all departments of the enterprise. This requires senior managers to have certain ability and management level. It is inevitable to re-evaluate and relocate the top management of the company, and those who fail will be eliminated or sent to grass-roots organizations. There is no doubt that there has been a commotion within the company. At this time, the company will face great pressure. In order to make the whole enterprise maintain efficient and effective control over the operation of the enterprise on the basis of decentralization, the top management of the business division organization generally has to master some important powers, such as personnel rights and strategic management rights.
The founder of the company, Deputy General Manager Chen, who has been in charge of finance, has realized that the financial management of Hongyuan Company is rather chaotic now. Each branch company has its own account after independent accounting, and the funds that the head office can control are getting less and less. Due to decentralized fund management, it is easy to have problems. If there is a big problem, I'm afraid no one is responsible. At present, the company's funds for new projects or maintaining normal operations are very tight. If it wants to develop further, the first thing to do is centralized financial management, and the power company must collect the money to facilitate the company's overall consideration and development. After the reform into the business division system, the company can require the unified use of a bank account, and it is not allowed to set up an account without permission, thus ensuring that the financial power is in the hands of the head office and avoiding the small coffers of each business division, resulting in the company's financial confusion. After the funds are concentrated, the head office can distribute them uniformly according to the needs of each business department, which ensures the company's development in the general direction. When there are new projects, they can coordinate well and do a good job in new projects.
The advantage of business division organization is that it can effectively combine centralization and decentralization. The decentralized operation of all business departments under the unified leadership of the top management is conducive to the top management to get rid of daily complicated affairs and concentrate on strategic decision-making and long-term planning of enterprises when facing large-scale organizations; Because each business department is a relatively independent center, it can develop new products and occupy new markets very responsibly, thus enhancing the flexibility and adaptability of the whole organization to adapt to the market; It is beneficial to the active competition among various business departments within the organization and improves their enthusiasm.
However, the division system also has its relative shortcomings. Because each business department has great independence in products and the market it is responsible for, it is prone to selfish departmentalism and only cares about its own interests, so it is difficult to cooperate with each other. Because each department has greater autonomy, it is sometimes difficult for the top management to command each department effectively. Division-based organizations usually have overlapping internal institutions, resulting in huge institutions, bloated structures and excessive staffing, which is mainly manifested in the serious duplication of functions and business structures between the headquarters of the organization and the division. The requirements for managers at the division level are high, both professional and comprehensive.
In view of this deficiency of the business division system, Hongyuan Company can take the opportunity of this reform to centrally delete the company's management, streamline the company's internal institutions and improve work efficiency. We can follow the example of large international companies and replace the heads of various business departments, so that they can rotate in various positions and understand different businesses. In this way, managers at the division level can improve their understanding of the overall situation of the company and better cooperate with each other. Replacement can also ensure the absolute command of the company's top management to all business divisions and ensure the execution of orders. Train middle managers to ensure their professional knowledge. All functional departments of the Head Office must work together to make correct and rapid decisions. And it is necessary to form a unique and suitable management system of Hongyuan Company as soon as possible, instead of simply imitating the successful enterprise system.
If an organization wants to adapt to the rapid changes in the external environment and survive and develop in the fierce competition, it should not only adopt advanced science and technology, but also change its management methods that are incompatible with modern production and operation as soon as possible, and establish a management mechanism and organizational structure that is convenient to flexibly respond to changes in the external environment. Facts have proved that with the continuous expansion of business, the original linear functional system can no longer adapt to the development of Hongyuan Company. If the company wants to maintain a good development momentum and become a diversified industrial company, it must reform its organizational structure into a business division system.