Jack Ma, who plays an important role in China’s internet business. As we know, Jack Ma established the first e-commerce company in China and also founded Alibaba, the largest retail trading platform around the world. In his speech, Alibaba used a totally different method from Samsung.

According to Ma’s speech, he mentioned that Alibaba group has already developed its own equity incentive system, after the development and research of Jack Ma and other senior Ali, Ali group came up with an unique “restricted stock plan” to motivate his employees.

In the point view of organizational behaviour, it is obvious to see that Jack Ma has applied an effective reward system into his company. The employer can motivate employees by rewarding them through several different variable-pay programs. Among these programs, employee stock ownership plan (ESOP) is quite similar to the incentive system in Alibaba. ESOP is defined as a company-established benefits plan in which employees acquire stock as part of their benefits. Stock options provides employees with the right to buy and sell their stocks in the company.

In Alibaba, an employee shall be entitled to exercise for one year after he or she receives the restricted shareholding unit. And each of the restricted shares issued by the unit is divided into four years in place, granted 25% per year. Then the number of restricted shares held by employees will increase as a result of the annual bonus issue of new restricted shares. 

Jack Ma guarantees that once the shares are fully issued, they will be provided with the values immediately. This helps the employees to be motivated in completing their work efficiently.

Jack Ma uses this kind of rewarding system as a way to help the company to retain its employees. Also, this reward system motivates its employees to perform admirably since they will be more likely to ponder about the outcomes of their behaviour in the company.
 

Knowing that a guarantee of income is at bay, this technique will help to enhance the company's productivity through it's employee's efficient performance and therefore, maintaining Alibaba's reputation in the e-commerce industry.