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Jianzhong Li

DBA Graduate - 2017

Thesis title

Employees' motivation and engagement in Chinese stated-owned enterprises - a research of motivation system's characteristics in stated-owned enterprises and employees' driving force


Alessandro Cavelzani-Externe
Purpose Incentive is always a core problem in the field of management and corporate finance, especially in China which has lots of state-owned enterprises. This article takes the state-owned enterprises as the main object of study to find out the incentive problem of state-owned enterprises and employees, meanwhile, to explore the characteristics and defects of Chinese SOEs and the differences between SOEs and non-state enterprises on the theoretical basis of western incentive theory.Design/methodology/approach This paper firstly put forward the hypothesis through the theoretical analysis and then uses the 2012-2014 Chinese Listed Companies' Data as the sample to examine the “economic incentive theory through several empirical models, and conducts a survey research based on the “four-force-driving model” to study SOEs’ employees’ driving force by statistical approach.Findings This paper finds that there exists a higher remuneration, lower pay gap and a high level of perks in Chinese SOEs compared to non-SOES. The employees in China have a high expectation on “defense” than other driving force, and the employees’ satisfaction of “enterprises’ culture” is the highest in SOEs’. The leadership bring out a huge influence on meeting employees’ driving force. If the leadership’s effect could be separated with the organizational leverage, it will achieve some totally different conclusion about SOE’s motivation on employees.Research limitations/implications Through producing empirical research this paper has found some results about the topic and gave some data support to the conclusions, the research still has some shortcomings. It is meaningful for future research to study much deeper about the contact and conflict between “economic incentive theory” and “management motivation theory”, much more details of how the Chinese culture and business property influence employees, and more detailed study about Chinese employees’ different driving force based on the “four-force-driving model”Practical implications This study provides a new angle of view to explore the Chinese employees’ motivation compared to the traditional theories. It makes employees’ needs clear for managers and is much more detail and useful for managers or organizations to meet the employees’ wants then motivate them. Social implications Recent years, State-owned enterprise reform is the focus of the economic reform in china, and the main objective is to improve SOE’S operating efficiencies. This paper could provide several suggestions based on the study conclusions to improve SOE’S operating efficiencies by increasing the incentive function. Firstly, this paper gives some advice to government to formulate reform program about employee incentive policy. On the other hand, this thesis put forward some ideas for managers and organizations to motivate employees under the Chinese culture and SOES.Originality/value This paper products a research about employees’ motivation force using the Four Forces Driving Model, and product the research combining the external governance environment of employee incentive and internal organizations leverage together, mining the relationships between macro policies and micro structure leverage on employee incentive which products a more complete research about both enterprises’ incentive and employees’ motivation. This paper has some theoretical value but is more value for practitioner such as government sector and managers.Keywords Employees’ Motivation, Economic Incentive Theory, Management Motivation Theory, Four-Force-Driving Model