Primary Diagnostic Report On Designing Compensation System Of X Company

With the approaching of knowledge economic, human resource (HR) has become the strategic resource of a company and HR management was raised from traditional personal affairs management into a high level - strategy management. However, workforce's compensation is always a core element in both levels. A company may not be competitive in terms of HR only by good compensation / welfare system cause it's not the only inspiring element to the workforce, but a company is definitely not possible to be HR competitive without a good compensation system due to its un-replaceable function in HR management system. Compensation is the workforce's initial drive to work, the material for a living and development, the indication of social position and the way of confirming self value. The compensation, in terms of tangible form and intangible form, is also the main tie connecting together the benefit of the workforce and the company.Compensation?system is one very important fact to be competitive and achieve its strategic goal for a company.?Design and implement Compensation?system is?a core issue for HR management, also the most complicated issue. Reasonable compensation system must be fare and encouragable to personnel. It is linked with labor, employer, market, society and government etc. It is very important to macro economy and micro economy.?Company X is a natural gas bases?chemical JV company, foreign advanced technology is adopted, advanced production management system introduced in this company, thus the quality requirement to the people is high especially the personnel skill and good team working. So as a JV company, a full set of reasonable, effecient compensation system to be function well for recruitment, retain necessary talent people, encourage them, live-up the whole company, increase company competition and profit.It is analyzed and studied the compensation system of this company with relevant theories from salary theory, enterprise life cycle theory, organization activity, briefly evaluated the salary system of this company based on the common feature of compensation system and the characteristic of this company self. It's summarized the compensation system should be adjusted according to company strategy, environment and market level, and should keep eyes on the salary change of the same trade after the study of the company compensation system and market condition.