The strategies for management shareholder to motivate lower-level

employees’ self-efficacy in Joint-stock company in China

管理层股东激励中国股份制公司基层员工自我效能的策略
Christopher Chow, cchow2@gmu.edu Xudong Yang, xyang20@gmu.edu
Xiaoqi Huo, xhuo@gmu.edu Shan Zhang, szhang28@gmu.edu
Department of Science in Management, George Mason University

INTRODUCTION Management Shareholders

Studies have shown that in Chinese Joint-stock
companies, Managers possess more information about 1: Managers become shareholders through equity incentives (Wang, 2010).
company operations and management than shareholders,
2:Professional managers become shareholders by Management Buy-Outs (MBO) (Fu, 2011).
they may use information advantages to seek private gain
and result in conflict of interest between shareholders and
managers, and lower-level employees are the victims of this .
conflict (Chen, 2003). When managers are rewarded some
shares to become management shareholders, they will pay
more attention to employees’ feeling. Therefore,
DISCUSSION
management shareholder expected to achieve more interests Despite the lack of research and case studies on the use of strategies by
by motivating lower-level employees’ self-efficacy in management shareholders to enhance the self-efficacy of low-level employees, there
Chinese company. is an urgent need to find a most effective strategy for management shareholders. This
poster illustrates the four strategies that may work for management shareholders, and
they are transformational leadership, equity incentives, motivating language, and
empowerment. We believe that transformational leadership may be the most
effective strategy.
Management Leaders can serve, motivate and Transformational leadership is the strongest strategy for management
shareholder promote employees' ideas and shareholder in China. Reasons as Following:
Leaders interact with their 1. Based on Chinese culture “People First”, focusing on what people think
behaviors bypassing visual, rhetorical, Empowerment subordinates to make them aware of can guarantee the long-term and stable development of the business.
strategic communication options and
their responsibilities and stimulate 2. Compared with appointing the task to employees, lead employees to
symbols to enrich the organization's
their higher-level needs so that they realize the importance of task and responsibility is the key to motivate employees’
results (Mayfield & Mayfield, 2012).
can maximize their potential to potential farthest and gain better performance evaluations.
In a word, motivating language is one achieve the highest level of 3. Management shareholder will play different roles for the employee who
of the stimulative methods to enhance performance.
Equity incentive refers to some are in different situations. They will be guides or directors when employees are in
employees' self-efficacy.
parts of company's annual shares trouble to help them grow up in overcoming challenges.
to reward outstanding employees However, transformational leadership will be difficult to be put into effect,
Management shareholders arouse in that year. because the current Chinese management mode is not democratic and free enough.
employees' enthusiasm by giving
We suggest that the future research should generally focus on the feasibility surveys
The previous researchers have shown that managers can affect employees sufficient freedom to choose
the environment and team selection for Self-efficacy is an important ability when people are of applying transformational leadership in Chinese Joint-stock company.
employees’ self-efficacy to create benefits for the campaniess. doing their job or the study. It is one’s belief of executing
completed tasks. Also, they have the right
For example, a manager can perform a social persuasion for the to inspire employees' sense of a specific task successfully (Bandura, 1977, 1997).
employees to let the employees enhance their self-efficacy on participation and belonging by giving Pajares (2012) has stated that self-efficacy is one’s belief
executing the task successfully (Mayfield & Mayfield, 2012). employees the right to express their of how much motivation he has, how is his emotional
state, and the behavior that related to the truth he thinks.
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