CC BY
0ECONOMIC SCIENCES
RESEARCH ON THE INCENTIVE MECHANISM OF ENGINEERING PROJECT MANAGEMENT
FROM THE PERSPECTIVE OF ECONOMICS
Yu Bing
Education degree: Master degree candidate Current employer: Minzu University of China Professional name: Chinese minority economy Main research directions: National economic theory
Abstract
In recent years, China's economic level has been continuously improved, people's quality of life has been further strengthened, and the status of engineering projects in China's economic system has gradually increased, and has led to the diversified development of the market economy. In recent years, many reports of the collapse of the Loutun Bridge and other events have been extremely worrying. Therefore, in the face of increasingly fierce market competition, construction companies must strengthen the establishment of incentives for project management and create a good The spiritual strength of the company fully exerts the role of encouragement and guidance in the enterprise, and penetrates into many aspects of corporate behavior. Based on the perspective of economics, this paper briefly analyzes the incentive mechanism of engineering project management and discusses how to improve the development path of engineering project management.
Keywords: economics, engineering project management, incentive mechanism, game, incentive theory
Introduction
Because the ownership and management rights of the factory are separated, the executives and owners of the enterprise will have the problem of principal-agent, so the economic economic theory is the theoretical framework of the behavior of the owner and the operator and the performer. The project management incentive mechanism, from another perspective, is how to use incentives to mobilize people's enthusiasm, but also can be understood as the principal and agent issues. That is, the client gives the task to the agent, and the completion of the task depends on the agent's work and effort. The reason for the incentive problem is mainly because the principal and the agent have inconsistent goals, or the information that the principal has handed over to the agent is not complete or the agent is not working hard enough, or the information distribution is not balanced, and the relevant information is not effectively grasped. . In the process of enterprise development, project managers use economic theory to motivate employees, which helps to improve employees' work enthusiasm and work enthusiasm, and effectively improve the project management level.
I. Overview of the incentive theory of engineering projects
Analysis of engineering project incentives from the perspective of economic theory, due to the emergence of incentive problems, from the division of labor and authorization, dispersion, etc., no matter which enterprise can not escape all kinds of elements, especially construction engineering enterprises, this part of the relevant stakeholders There are many, and the fields involved are wide, the number of personnel is large and the work is complicated, so the incentive mechanism must be effectively applied during the project implementation phase. An incentive contract refers to a contract that a project manager makes to guide employees to work harder. The employee's performance and salary are linked in a certain way. The incentive contract has
specific applicable conditions. If the staff's effort cannot be observed by the project manager, the effort and performance can be observed and can be based on the observed performance. Reward and punishment, thus achieving the role of incentives. This observed performance can be confirmed by a third party and can be written into the contract. Employees' elaboration is determined by employee behavior and exogenous random factors. For example, employee performance depends on their own efforts, and is also closely related to many construction conditions such as geography and climate. In the construction process of the project, the incentive contract of the employees is usually composed of two parts. The employees can obtain fixed compensation, which is equivalent to the basic salary, and has no significant relationship with their work performance. The other is the employee and the enterprise sign Performance-related compensation payment plan. When analyzing the contractual relationship, the project manager should fully consider the constraints to ensure the incentive mechanism and effectively play its due role. Because the contract is considered by the employee for his own benefit, it is also called the participation contract. If the employee is willing to accept the contract more than the unwillingness to accept the contract, it can effectively exert the subjective initiative of the employee and reach the project. The manager's maximum expected utility.
Second, the project management incentive strategy from the perspective of economics
(1) Improve the internal governance structure of the project
At present, China's construction industry is constantly developing, and the number of expansion projects continues to increase. Therefore, project managers must formulate scientific and sound systems and mechanisms to effectively coordinate interest relationships and make scientific decisions on engineering projects. In the process of testing, it closely surrounds the project
itself and the interior of the project, mainly including infrastructure construction. The project involves a large number of industries and industry stakeholders, including employees and project managers. Therefore, the internal and external market performance of the company is contractual, mainly including materials and labor supply market, product market, financial market, etc. In order to effectively solve the problem of interest demand and information asymmetry, it is necessary to construct a scientific and reasonable punishment mechanism and incentive system. Ensuring that stakeholders' interests are consistent, and investing in supervision costs, effectively overcoming the difficulty of information acquisition, ensuring that rewards and punishments are more reasonable, and helping to increase the optimization and scientific decision-making of the project department.
From the perspective of economics, we can see that employees' interest and concern for the project are mainly reflected in the project arrangement, so the project manager can play the game based on the special assets. The project manager should fully consider the incentive strategy and set up the perfect Incentives and a sound analytical framework and rules.
(II) Improve performance appraisal and wage system
Through material incentives, it helps to directly improve employees' enthusiasm and enthusiasm. The quality of work and the level of work efficiency are mainly quantified according to performance appraisal. Therefore, it is necessary to strengthen the matching of posts and personnel before performance appraisal. This is also an important function in management. Personnel matching is the responsibility of human resources management department and also the project. The important task of the manager. Staffing should be closely integrated with the needs of the post. Employees with relevant knowledge and abilities should choose their work positions scientifically and rationally according to the characteristics of their employees, and give full play to their abilities and functions, so that people can make the best use of their talents. This work is an important step for the project manager to use. The project manager should be familiar with the project work flow and job responsibilities, as well as the knowledge and skills required for the job, and develop a performance evaluation system. Performance appraisal ensures that the project manager translates specific goals into assessment indicators, which helps to conduct a comprehensive evaluation of the relevant personnel.
(3) Setting up spiritual incentives
Spiritual incentives are set in project management, mainly to stimulate employees' work enthusiasm from the perspective of behavior and give full play to their potential capabilities. When the project manager sets up spiritual incentives, he can combine Maslow's theory of demand hierarchy to further enhance the respect and self-fulfillment needs of employees. In the design of the project, diversified incentives should be designed according to the needs of the employees, such as promotion of positions and free working hours, exclusive working conditions and honors issued by the venue. In particular, after meeting the basic material conditions of employees, spiritual motivation is usually more attractive.
Third, the conclusion
In summary, we can see that incentives are an important prerequisite for business management. Engineering project managers have an extremely important role in promoting the incentives of project executives. Because project managers have mastered the overall affairs of management projects: project planning and supervision The behavior of project managers such as implementation and inspection is also related to the quality of the project and the completion of the corporate image and social public utilities. Therefore, the construction of a scientific and perfect engineering project incentive mechanism can enable the project staff to actively participate in the work, create economic profits for the enterprise, effectively improve work efficiency, and help reduce supervision costs.
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