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On the Basic Principles of Incentive Mechanism
On the Basic Principles of Incentive Mechanism

From an economic point of view, the benefits of simple material incentives are far lower than those of spiritual incentives. This is because the marginal utility of money follows the law of decreasing. The following is the research paper on the basic principle of incentive mechanism I collected for you, hoping to help you.

Core employees are the most critical and important part of human resources in enterprises, and the fundamental source of core competitiveness and core competence of enterprises. Whether the incentive mechanism is scientific or not is directly related to the human resources work of enterprises. This paper discusses the incentive mechanism of core employees in enterprises.

Keywords: modern enterprise management; Incentive mechanism; Core employees; Salary management

Modern enterprise management is people-centered management, and the efficiency of an organization depends on the efforts of employees, especially core employees. The demand of enterprise management practice and the development of knowledge economy era objectively require the construction of effective enterprise incentive mechanism.

First, the basic principles of establishing an incentive mechanism

(A) the principle of combining spiritual incentives with material incentives

From an economic point of view, the benefits of simple material incentives are far lower than those of spiritual incentives. This is because the marginal utility of money follows the law of decreasing. Spiritual encouragement mainly meets people's high-level needs such as respect, achievement and self-realization. It is a major and lasting form of encouragement, with continuous internal driving force.

(B) the principle of combining positive incentives with negative incentives

According to the reinforcement theory of American psychologist Skinner, motivation can be divided into positive motivation and negative motivation. The so-called positive incentive is to reward employees for their expected behaviors that meet organizational goals, so that such behaviors appear more frequently. The so-called negative motivation (negative reinforcement) is to punish employees for their expected behavior against organizational goals, so that this behavior will not happen again. Obviously, both positive and negative incentives are necessary and effective, but in view of the negative effects of negative incentives, it is easy to produce frustration psychology and frustration behavior, so it should be used with caution. Therefore, the author believes that leaders should skillfully combine positive incentives with negative incentives, insisting that positive incentives are the main ones and negative incentives are the auxiliary ones.

(3) On-demand incentive principle

The starting point of establishing incentive mechanism is to meet the individual needs of employees. Psychologists' research shows that people's behavioral motives are dominated and determined by their explicit needs. When applied to management, enterprises are required to consider the needs of employees at different levels when establishing incentive mechanisms, and design corresponding incentive measures for the needs of each level. There is no once-and-for-all way to motivate, and there is no magic weapon that can be universally applied. Therefore, the incentive methods of enterprises should be tailored to the time and vary from person to person, be more targeted and effective, improve the enthusiasm and creativity of employees, attract and retain talents, and realize the long-term development goal of enterprises. So the establishment of incentive mechanism is to consider the needs of employees, especially the advantages of employees.

(D) the principle of combining personal goals with organizational goals

The long-term goal of establishing incentive mechanism is to make the organization's behavioral goals more consistent with those of employees. The establishment of incentive mechanism must be closely related to the long-term development of the enterprise, which can stimulate the enthusiasm and creativity of employees, improve work efficiency, and thus promote the completion of organizational goals. At the same time, the organization will also give corresponding rewards to help employees achieve their goals.

(5) the principle of efficiency and fairness

Giving priority to efficiency and giving consideration to fairness are the first principles to be followed in any economic system. Lack of either of these two elements is not a good incentive mechanism.

Secondly, the incentive mechanism design of core employees at different niche levels.

Effective incentive measures for core employees in enterprises cannot be the same, and reasonable incentive mechanisms must be formulated for core employees at different levels.

The first kind of core employees are grass-roots core employees with low ecological niche. Because of their superb professional skills and strong personal abilities, they have become indispensable figures among grassroots employees. The core employees at the grassroots level are mainly young employees with high academic qualifications and profound professional knowledge. They have not worked in the enterprise for a long time, so they are at the grassroots level, but they have great development potential, ideals and ambitions, and are the pillars of the future that the enterprise is prepared to focus on training. Therefore, they have the most urgent need to get married, buy a house and raise children recently, and their desire for money is also very high. It can be seen that their needs are still at the most basic level of survival needs.

The second type of core employees are middle-level core employees in the middle niche. Because of their excellent skills and abilities, they have risen to middle-level positions in enterprises, such as financial supervisors and department managers. These employees have worked in the enterprise for a long time, which is in the prime of life. Although there is still economic pressure, their quality of life has been greatly improved compared with that of core employees at the grass-roots level, so they began to enjoy life. Therefore, the demand level of middle-level core employees has surpassed the basic physiological survival needs and should be in the middle level of security needs and social needs.

The third kind of core employees are high-level core employees with high niche. The positions and careers of these core employees have reached the peak. They occupy the highest level of the enterprise pyramid, they have no worries about food and clothing, and their social circle is also very wide, often weddings. For the top core employees of an enterprise, their needs are at the highest level of respect and self-realization.

Third, incentives

(A) incentives

1. salary. Salary management is an important part of modern human resource management. Today, with the rapid development of economy, salary incentive is still a very important incentive method. Salary provides material life guarantee for core employees, which is the premise of their survival and development. It also represents the enterprise's recognition of the work performance and ability of core employees, a social measure of employees' human capital and an important symbol of employees' social status. Therefore, salary incentive is a very complicated incentive, belonging to the category of material incentives, which can basically meet the physiological needs of core employees, but it is not only material incentives, but also implies spiritual incentives such as achievement incentives and status incentives, which can satisfy employees' sense of accomplishment to a certain extent.

2. Welfare. Welfare refers to the supplementary items paid as basic salary in order to attract employees to work in the enterprise or maintain the stability of the core personnel of the enterprise, such as unemployment benefits, pensions, lunch expenses, medical expenses, pensions, profit dividends, etc. As a rich and stimulating part of salary, welfare plays an important role in the whole salary system. Good welfare is often to attract and retain excellent employees. It reflects the enterprise's concern for employees' lives, enhances employees' sense of identity with the enterprise, increases employees' loyalty to the enterprise, and helps employees form the same interests with the enterprise. Benefits can be divided into compulsory benefits, menu benefits and special benefits.

(2) Spiritual encouragement

The salary system is important in motivating core employees, but it is not omnipotent. What motivates core employees for a long time is the need for socialization, respect and self-realization. They attach great importance to the recognition and respect of people around them, and whether they can make greater achievements and give full play to their talents. Therefore, in order to obtain satisfactory incentive effect, we should take more spiritual incentives to mobilize the enthusiasm of core employees at a higher level, which has a deep incentive depth and a long time. We can implement the spiritual encouragement of core employees from the following aspects.

1. Target incentive. Skinner's reinforcement theory emphasizes that motivating employees must first set a clear, inspiring and practical goal. Only when the goal is clear and specific can we measure it and take appropriate reinforcement measures. At the same time, the goal should be broken down into many small goals, and each small goal should be strengthened in time, which is not only conducive to the realization of the goal, but also can enhance confidence through constant encouragement.

From the personal point of view of core employees, their enthusiasm for action will continue when employees are clear about their action goals, constantly compare their actions with their goals, understand their progress speed and constantly narrow the distance from their goals. To some extent, people's efforts depend on the attractiveness of goals to him and the extent to which goals can meet the needs of employees. Therefore, it is necessary to set a scientific and reasonable goal for the core employees. The goal should not be too high or too low, and jumping and touching is the most appropriate. In the process of using goal motivation, core employees must clearly understand a truth: to achieve personal goals, it is necessary to combine organizational goals with personal goals, so that personal goals can be realized, so that every core employee can be fully motivated, strive for the overall goals of the enterprise, and stimulate their potential.

2. Work motivation. Core employees are more concerned about the needs of self-development, work autonomy and work achievement, which can actually be attributed to their work and are important incentive factors. If the core employees can feel interesting, meaningful, responsible, developed and accomplished from the work itself, the work itself will become the most important power source to motivate employees. The incentive work design in enterprises is embodied in the aspects of job expansion, job enrichment and job rotation. These working methods have played a positive role in improving employees' job satisfaction and job performance.

3. Respect is priceless. First of all, trust the core employees. Trust is the basis of respect, and it is also an important guarantee to establish a good relationship with core employees. As the saying goes? No doubt about employing people, no doubt about employing people? However, it is often a common fault for managers to be accustomed to believing in themselves, worrying about others and often interfering in the work of subordinates. Second, we must understand the core employees. ? A scholar dies for a confidant? It can be seen how rich the return of understanding is. In fact, it is not easy to really understand. The key is that managers should learn to put themselves in others' shoes. Only by thinking from the perspective of core employees can we truly understand employees, what their real leadership needs are and the rationality of their needs. Finally, core employees participate in management. The research and practical experience of modern human resource management show that core employees have the requirements and desires to participate in management and be masters of their own affairs, so creating and providing all opportunities for employees to participate in management is an effective way to mobilize their enthusiasm.

Fourth, the problems that should be paid attention to in motivating core employees.

Demand levels should be considered when encouraging. Different levels, different ways of motivation. Relatively speaking, the higher the level, the more attention is paid to the spiritual aspect, and the lower the level, the more attention is paid to the material aspect. Attention should be paid to the frequency and intensity of incentives. The number of incentives should not be too much or too little, and the intensity should not be too large or too small, otherwise the incentive effect will not be achieved.

V. Evaluation of incentive measures and feedback information.

After motivating the core employees, we should examine the incentive cost and the efforts and performance of the core employees under this incentive, and compare them with the efforts and performance before the incentive, feedback the comparative information in time, learn from them, and establish incentive files to provide reference for optimizing incentive measures in the future. Through these measures, enterprises can motivate core employees in a targeted manner and fully mobilize the work enthusiasm of each core employee.

To sum up, the key to motivation lies in effective motivation, whether it is material motivation or spiritual motivation, the key is to tailor for the core employees of the enterprise and take the core employees as the guide. There is no universal incentive system, only a suitable incentive system? . Therefore, different regions, different industries and different enterprises should adopt an effective incentive mechanism model that suits them.

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