Study on the Relation between Mutual Game, Incentive Structure, and Performance Improving

There has a specific phenomenon in China, which is talent losing and employee redundancy. Illogical incentive structure, and adverse selection triggered by illogical incentive structure are the fundamental matter. Although incentive is attached much importance to during theory studying and practice, incentive structure is neglected. There is a tight relation between incentive structure, mutual game, and corporation performance. Reasonable incentive structure helps to excite employee's good acts, and helps to improve corporation's performance. Incentive structure design is a system work which should conform all the incentive resource, and such influence factors as staff's hierarchy and game behavior, outer influence factors, and corporation's performance improving should be considered. Empirical research shows that overall average wage and steep level of incentive structure have positive impact on performance improvement, and stock incentive has no significant impact on performance improvement.