The article emphasizes on several important issues by referring to the most up-to-date research results and the relevant empirical test about incentive theory as follows: the relationship between incentive and risk, performance evaluation and incentive contract.

This paper discusses under the framework of principal-agent theory the mechanism and principles how we can reduce agent cost and eliminate ratchet effect by introducing the relative performance evaluation into the incentive contract.

Being particularity of military products,the proper incentive method protects competition structure while bestirs corporations to work hard,the incentive method of equipment acquisition which based on the task allocation is defective.

Incentive method is a important factor of affecting incentive purpose, but different people have different reflection of different incentive methods.

On the basis of brief introduction in the motivating theory,the paper analyzes the characteristics of the motivating system in supply chain ente rprises and puts forward several effective motivating methods.

The purpose of foresighted incentives is to enhance the timeliness,accuracy and validity of incentives through improving the foresight of motivating method and process.

This article introduces that stimulation method of information gap is a way of teaching applying the principle of information gap into teaching practice.