Release Time:2019-03-11  Hits:

Indexed by: Conference Paper

Date of Publication: 2013-07-17

Included Journals: Scopus、CPCI-S、EI

Page Number: 633-639

Key Words: motivation mechanism; principal-agent theory; risk allocation; the optimal proportion

Abstract: Risk allocation is an important issue in Principal-agent theory. This paper researches on a failed motivation mechanism of H Optoelectronic Co., Ltd., and then based on Principal-agent theory. And we analyze the ratio of risk allocation, which affect the enterprise's performance and the employee's performance, between the enterprise and the employee in motivation mechanism. And then we expect get the essence reason of the failure of motivation mechanism through analyzing the unreasonable ratio of risk allocation between the enterprise and the employee. We also want to get the optimal risk allocation, which match the Principle's and Agents' interests, to balance the benefits. Finally, this paper analyzes the motivation mechanism of the problem in order to explore how to avoid risks, and achieve the optimal motivation mechanism.