Study Of Chinese State-owned Enterprise Managers Pay System

Currently, the social development of China is in the stage of multiple contradictions, and the profit distribution structure of social members is undergoing profound changes. The income distribution of the State-owned enterprises, especially their managers'income distribution, has become hot point, which is paid high attention to by the people of all social strata. How to build up an impartial rational salary system of managers, who are in charge of the State-owned enterprises, is particularly important.Since the reform and open policy, our country has been exploring and developing the salary administration system for the managers in the State-owned enterprises. Initially, some methods that include benefit reward and full responsibility for profits and losses are used, and later some enterprises tried out other ways about salary management, containing the annual salary system, giving stock option to managers, or self management. All of these practices are trying to adjust the relationship of distribution through enriching and improving incentive and restraint mechanism, thereby arousing managers'enthusiasm and promoting development of enterprises. In sense, the progress of the State-owned enterprises reformation is also the one of exploring and building the effective incentive and restraint mechanism and salary administration. However, because of the building of market in China is a continuous exploring, correcting progress, on the whole, some problems—the unsound administration about management structure of enterprises, the imperfect assessment system and the unreasonable related reformation measures—have restricted the effect of incentive and restraint mechanism for managers. So taking a long view, these problems should be studied and investigated in order to make the salary system for the managers in the State-owned enterprises improve continuously.This thesis takes research with the salary system for the managers in Chinese State-owned enterprises, applying with some theories and research findings referred to the related courses, including institutional economics, human resource management, performance appraisal. It puts stress on the key problem and also pay attention to the combination and interaction with theories and practices. Three ways used in the thesis:one is consulting some documents and theories, realizing the current general situation of salary system for the managers in Chinese Stated-owned enterprises, which includes salary making principles, the characteristics and constitution of salary system; two is using the empirical research method, analyzing the characteristics of salary administration in foreign enterprises and taking survey on the ones adopted by some domestic enterprises for summarizing some experiences and lessons, in order to provide scientific basis for improving our salary system in Chinese Stated-owned enterprises; three is based on the document analysis and experiences, deriving reformational measures about salary system for managers in Chinese State-owned enterprises through deductive normative methods.The thesis illustrates the following view points:The first one is that under the circumstance of Chinese socialist market economy, the State-owned enterprises has their own particularities, and its target is not only preserving and increasing their values of the State-owned assets, but also undertaking some responsibilities. Therefore, their managers are not equated with some ones that are in charge of general competitive companies. The design for the managers'salary system should abide by the principle of distribution according to one's performance, not only considering the effect of remuneration encouragement, but also gaining the public identity with taking into account both national conditions, regional characteristics and human feelings.The second one is that the salary administration for managers in the State-owned enterprises is a concentrated expression which reflects the appeal of sponsors, managers, employees and the public, an embodiment of interaction with administration and supervisal, and a complex procedure that continuous adjustments can achieve equalization gradually. In the process of salary administration for the State-owned enterprises, the effect of remuneration encouragement will be put into great play, and the desires of all parties are also satisfied.The third one is that keeping on improving the performance assessing system and using a way that the salary is related with the performances, exploring continuously mid-term and long term motivation mechanism, putting categorized assessment in practice according to the properties of different enterprises, building up the standard and principles of annual salary system for managers in the monopolistic, competitive Stated-owned enterprises and finally making the salary administration better gradually.The fourth one is that according to the complexity of check-up and assessment for managers and salary administration, importing an advanced administration tool-balanced score card, which has been adopted commonly by the developed countries, and suggesting this card as a kind of assessment tool, which would be beneficial for making both objective and fair evaluations comprehensively for the business benefits and working result in a certain period, in order to provide effective basis for solving the salary problem.