Using Ownership Incentives in China Case Study Example | Topics and Well Written Essays - 2500 words

Using Ownership Incentives in China - Case Study Example On the other hand, the method has also been seen to reduce employee turnovers in the organizations where it is practiced. The outcome of the study are of great significance to Ben Freed and his partners in their quest to export this management culture to China with the aim of expanding their business and market globally. Analysis of the various aspects that would impact on the company’s incentive ownership culture would significantly inform the choice of practice to be adopted by the company, hence acting proactively to avert potential risks on the same. On the other hand, the findings of the study are of significant importance to employees, especially the experts based in the US, who are expected to move into a different country to introduce the new management system. The knowledge gained is important in preparing them on what to expect from the new geographical and cultural setup. The local culture of ownership as practiced in the Silicon Valley could be exported to China in various ways. For instance, the mode of payment for the China-based employees, together with all other employee motivational practices done in the US, could be introduced for the Chinese employees. This would thus mean that the payment for these employees be inclusive of their normal salaries together with the stock ownership percentages as determined by their respective positions in the company (Dong, Bowles and Ho 826). With the use of employee ownership approach, the CEO is well placed in motivating the workers to be responsible and work hard considering that their own success is determined by the company’s success. Additionally, the use of this approach is important in demonstrating to the employees that the company values all stakeholders in it equally, and gives similar treatment to all its employees. As observed in the historical practices in China, however, there could be n umerous challenges in