INCENTIVE MECHANISM OF SUBSIDIARY CAREER PLAN IN MANAGEMENT OF HCNS IN KNOWLEDGE-BASED MNCS:ANALYSIS

来源 :INternational Conference on Product Design and Manufacturing | 被引量 : 0次 | 上传用户:ltc835634161
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  With more and more multinational Corporations (MNCs) invest in China,it is necessary for us to dig into their incentive mechanism of managers.The purpose of this article is to analyze with game theory how and why the career plan can influence host country national (HCNs) managers dedication to work,so that Chinese MNCs can learn from them and obtain valuable experience,and the government can also get advice to adapt the policy for foreign investment.First of all,the literature review is summarized.The current literature shows that only very few of scholars discussed about the management of HCNs.Indeed,the importance of HCNs should not be neglected in such a knowledge age.Some famous MNCs have taken actions to better motivate HCNs.One of the most effective incentives is career plan.Therefore,based on some hypotheses,a dynamic game of incomplete information is constructed to analyze the incentive mechanism of subsidiary career plan in management of HCNs in knowledge-based MNCs.There are two types of MNCs:one is “no-promotion”,which means no matter how well HCNs work,they will not be promoted since the position is only for expatriates; and the other type is “promotion with good performance”,which means as long as HCNs create good performance,they will have the chance to be promoted.On the other side,HCNs have two actions in work:to be devoted or duteous.The results explain that whether or not corporations expose their types depends on the profit addition gained by dedicated managers,profit lost by duteous managers,profit recuperation by managers stopping negative action,fake cost and career plan cost of corporations.Results also show that HCNs choose to be devoted or duteous depends on their effort cost and regret cost.The theoretic model and its results match well with the empirical results of other scholars.Advice for Chinese Multinational Corporations is that good career plan and other non-material inspiration is necessary and important for host country staff.The government ought to constitute policies to encourage and guide the storage,training and communication of talents in multinational corporations.
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