This article analyses the management incentive theory, which will be divide into positive and negative incentive. With this analyzing method of the incentive theory, the concept of “wages incentive” has been put forward. The wages is a kind of tool for the enterprise management, it can be either “keep-fit factor” or incentive factor, so the wages factor characteristic and its incentive action does not depend on the wage level, but will be mainly determined by the type of the wage. Based on this concept, this paper evaluates the current system of the incentive effects with various kind of wageforms in the state-own enterprise, a local type new wages theory——”thetheory of negative incentive wage” has been put forward and proved.This article takes the wage incentive as the basic theory, and evaluates the wage system of china National Erzhong Group Co. (China Erzhong) based on the wage incentive. And intend to use this wage incentive theory to explore the application foe the reform of the wage system in the state-own enterprise.
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