On the incentive and restrictive mechanism in the business of power

Abstract: In the electric power companies in the business, through the establishment and improvement of incentive and restraint mechanisms, enterprise managers on the power of effective incentives and oversight. To fully mobilize and bring into play the enthusiasm managers. Power enterprises to improve economic efficiency and sustainable development of enterprises.

Paper Keywords: power constraint mechanism of business incentives
As China's power industry restructuring, power system from the previous monopoly of industry and the planned economy into a market competition environment. Power Enterprise mode of operation in accordance with the operation of the market economy, has become the guidelines must be followed. Therefore, only through the establishment of a market power competition as the core business incentive and restraint mechanisms, in order to better enhance the power business management and improve the power performance of enterprises.

1 on the electric power enterprise managers the incentive and restraint mechanisms
1.1 Incentive Mechanism of Electric Power Enterprise
In the market economy, the power quality business operators often determine the fate of a business, how to conduct the electricity business by effective incentive and restraint is to decide the business of sustainable development and an important means of improving efficiency of operators incentives and constraints generally divided into "material incentives" and "encouraging the spirit of" two. "material incentives" General by the salaries, bonuses and corporate dividends constitute. "encouraging the spirit of" by the "honor incentives" and "job motivation" constitutes. for Power to the actual situation, the power companies the incentive and constraint are the following:
1.1.1 the implementation of the annual salary system managers
Managers salary system is based on business's job performance, responsibilities and risks borne by the size of the entity with an annual income of the operators. So that the operator's income and directly linked to business results, in order to build and improve the power enterprises corporate power management operators. According to the formula the annual salary system: operating income = annual salary base salary + bonus + other benefits of reward and punishment. the basic wage is based on the related power sector sets wages and be counted, efficiency bonus points can be taken section calculations, and other rewards and punishments for specific companies reward and punishment under the relevant rules and regulations, such as: safety incident rates, staff satisfaction, customer complaint rate, equipment availability and other direct reward and punishment. the concrete is calculated as follows:

1.1.2 to achieve the implementation of the risk of mortgage incentives
The risk of mortgage is part of the operator into the risk fund revenue to partially offset error or poor operation of decision-making to the enterprise losses. To reflect the income is consistent with the principles of risk. Since the risk of mortgage reflects the operators due to a residual interest in investment enterprises in the corresponding responsibility to bear the risk, the core principles that reflect the rights and responsibilities. Therefore, the risk of mortgage payment be set at twice the annual salary of the operator, which means the operator if negligence may pay the price to pay at one year.

Implementation of the annual salary system operators must consider how the long-term incentives for enterprise managers the problem of maximizing short-term behavior of the operators to avoid. Power system for institutional reasons, not yet established a sound corporate governance structure and therefore can not use stock options approach to the operators to carry out long-term incentive. At present more feasible approach is to the operator's part of the revenue from the corporate hold on to in order to solve the operator problem of long-term incentives. specific method is: the operator should receive half the annual salary into enterprises set up special account for, the enterprises custody, I not free to withdraw their deposits. shall be deposited in the funds rate and enterprises linked to the net. in accordance with the increase in the rate of net capital gains and reducing the ratio of percentage increase or decrease the amount of the account . until their departure or after retirement, one-time grant operating himself. Meanwhile, if the operator during the term, if any major abuses, once verified the account is sealed, thereby increasing the cost of illegal operators, play a The role of incentives and constraints.

Spirit Incentives 1.1.3
(One) business motivation: to have outstanding ability, made outstanding contributions to managers, to important positions in time, so that they have greater power to take on more responsibility.

(2) Honorary Incentives: classification established honor system, in accordance with the size of the contribution, awarded the "advanced workers" and "excellent business manager" and "outstanding entrepreneurs" honorary title at different levels.

(3) model incentives: Promoting the recognition of good deeds managers, set to learn from.

1.2 Power enterprise managers restraint mechanism
Power companies in strengthening the incentive regime, we must focus on building operators and constraint mechanism and supervision mechanism, the only way to guarantee from the operating system and mechanisms to rationalize the behavior of objective, standardized, and ensure the rights of the owner not be violated. establishing business operators the power constraint mechanism are:
1.2.1 improve the supervision mechanism of the operators, the implementation of enterprise managers term economic responsibility audit system. For example: external supervision are 1) the supervision of state Laws and regulations, 2) the superior department in charge of the longitudinal, vertical supervision, audit appointed in the financial operation of the enterprise managers, production and management, income distribution, employment decisions and major issues such as honesty and self-discipline whether violations, 3) financial responsibility audit: a review of whether the correct handling of business the state, collectives and individuals among between the interests of profit targets are completed, whether it is reasonable use of funds, accelerated cash flow, improve capital utilization, whether the strict implementation of cash management, credit management and bank balance sheet discipline and to develop a sound accounting system is .4) social and economic responsibility Audit: Review of the operators are to strengthen the training of workers, improve the quality of workers is constantly improving corporate benefits, if strict compliance with the legal contract and so on. internal supervision are 1) a sound corporate governance. play inner-party supervision and staff democratic supervision methods, the implementation of public way the House. For the operator to monitor, 2) employee representatives elected decision-making on major issues in the enterprise, 3) the General Assembly by workers to monitor the business activities. and to make recommendations and observations, to consider the wages, bonus distribution plan, production safety and labor protection measures, it is important to develop rules and regulations on such major issues, 4) review of business whether in the decision-making process through the feasibility analysis and scientific evidence, whether according to market demand and their own economic strength effective organization of production management, internal control is to develop a sound management system, whether by tapping the potential economic benefits of innovation and technological innovation to improve, and continuously improve their business management, and fully mobilize the enthusiasm of workers.

1.2.2 failure to establish accountability system for electric power business decisions: the adoption of the system of decision-making to promote the scientific enterprise managers to reduce the blind decision to the State, power industry, causing heavy losses to the enterprise to build the system and the operators must be the term of office combination of economic responsibility audit, through a comprehensive examination of economic responsibility audit and evaluation of decision-making behavior of business operators. bound for the power of enterprise managers, and internal supervision and external supervision should unite to further improve the corporate governance structure of electric power enterprises and further strengthen the Enterprise Oversight and the functions of democratic management of workers, so that enterprises to strengthen management, improve the system and improve efficiency. through the power of enterprise managers the incentives and constraints, will help improve the operator's enthusiasm and sense of responsibility will help control and prevention of operational risks, to enhance the sustainable development of enterprises and economic benefits.

Links to Free Download Center http://www.hi138.com 2 paper within the enterprise incentive and restraint mechanisms
The overall enterprise business goals is to achieve the objective of the various sub-sectors as a precondition. We will construct the various departments within the enterprise incentive and restraint mechanisms is also very necessary.

2.1 The incentive mechanism within the enterprise
2.1.1 give full play to the economic responsibility system in production and operation of leverage. The economic responsibility system is a mobilization of workers power companies currently active and effective distribution. Same time, it is to regulate the conduct of effective means of staff. The core is to use system to regulate, managers, incentives, constraints, thereby ensuring that the different positions and different positions to staff working conditions expected to become a reality.

(1) for different departments to develop the corresponding output target. So that the output of the department heads to continue to refine and break down goals, and ultimately to achieve the overall objective of the enterprise lay a good foundation. The specific methods to determine the output value of the various departments: History Law , push down the cost method. historical method is based on the completed value of the sector over the years the situation. implement weighted average method to determine the value of the sector this year (ie: target = output this year output value of the previous year the number of �� 0.5 + the second year the number of �� 0.3 + output value output value in the third year the number of �� 0.2). this approach is that the historical basis, as determined by the number of the target value is more realistic. cost method is pushing the sector back To achieve the income (such as wages in the sector to ensure that income and certain bonus amounts), plus the income for the realization of the costs incurred, together with the sector to the public bear the cost or turned a profit. the ultimate need to complete the target value (ie: the sector income + implementation of the sector revenue to expense the cost of + paid profit = To complete the goal value). This method has the advantage of: according to the sector's actual situation, the dynamic development of production value, goals set by the output value of the more practical and feasible.

(2) for different departments to develop the proportion of controllable costs. Through the development of sector or the proportion of the amount of controllable costs, will enable the department costs, can have a clear target to work the cost breakdown can be the proportion of control within the enterprise in order to ensure the total cost required to achieve the objectives within the control ratio.

(3) According to the company's overall profit commission to work out the ratio of output value targets to encourage the department. Specifically assigned as follows:

2.1.2 to enhance corporate culture, strengthen the building of spiritual civilization, to ensure long-term development of enterprises can be of various departments of the spiritual civilization, ideological and political work, site management, and comprehensive evaluation index refinement, using a points system for assessing , and the economic responsibility system linked to the sector. from economic responsibility to fully embody the "both hands, both" the spirit of the comprehensive assessment.

2.1.3 To enhance the sustainable development and to build the core competitiveness of enterprises, according to the actual situation of the enterprise required the completion of the target company to be other incentives (such as: award-winning projects, technical inventions, new technology development, advanced applications of the results, etc.). award the concrete operation of the actual distribution of profits for the sector �� (1 + bonus coefficient) for the final allocation results of the sector to contribute incentives.

2.2 Mechanism of internal constraints
2.2.1 The effectiveness of the monitoring mechanism into full play the various sectors of production and management guidance and constraints. Of the unit's "second lead" of supervision. The work of various departments has been in production and operation of health and development of a virtuous cycle. such as: secondary distribution of the results of the various departments to monitor the department and corporate filing, and tracking system for the implementation of the various departments to ensure the secondary distribution of fairness, openness, fairness, so as to stabilize and develop enterprise workforce, and ensure normal business production and operation, maintenance enterprise as a whole.

2.2.2 Evaluation of the various departments on a regular basis. The assessment standards and quantified, thinning. The Final Adjudication Score (Final Adjudication Score: department of mark number �� 0.4 + other departments in the sector higher-level score �� 0.3 + rate in the sector �� 0.3) results were pre-specified fraction of business to determine the appointment and removal of department heads. to ensure that managers in the sector to quantify the supervision and restraint.

Currently, power companies are in the market economy from planned economy to a period of transition. In the power business through the introduction of incentive and restraint mechanisms, the power of effective corporate management and supervision of incentive for power companies in the electricity market next competition enhance the economic efficiency of enterprises and enhance their core competitiveness, continue to reduce operating cost, further tapping the potential of technological innovation, enhance service awareness, and so provide a reliable guarantee. to improve power efficiency, to ensure that increasing the value of the assets of state-owned there.

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