Research On The Salary Decision Of Senior Management Personnel Of SOEs In Monopoly Industries

The SOEs of monopoly industries in China are not only the means ofgovernment intervention in economy, but also the means of government involvementin economy, they aim to make up the defects of market and consolidate the economicbase of socialist construction. As SOEs of monopoly industries have thecharacteristics of natural and administrative monopoly, the salary of their employeesis more and more the focus of the society, especially the rapid increase of seniormanagers’ salary. Government implements the unified salary management system tomanage them, thus it breeds the senior managers’ substitution effects. So limitationtheir salary is a transitional measures in the reformation of salary system of seniormanagement personnel of SOEs of Monopoly Industries. In a long run, the elementsdeciding their salary should be fully studied, and constructing the scientific seniormanagers’ salary decision mechanism is the sticking point of reformation of the salarysystem of SOEs of monopoly industries in China.The paper applies the study methods of literature, normative research, empiricalresearch, comparative research and synthesize. It uses the analytic tools of SPSS13.0and STATA12to study the issue of senior managers’ salary decision as following:(1)define the notions of SOEs in monopoly industries, management personnel and salarydecision, carding the related literature, recognizing the difficulties to define the seniormanagers’ salary because of numerous factors;(2)concluding the involution andstatus quo of senior managers’ salary decision, via constructing model to demonstratethe unreasonable decision of senior managers’ salary, as well as the problems of it;(3)based on the particularity of salary decision of senior management personnel,analyzing of the effecting factors of state-owned monopoly enterprises seniormanagers’ salary decision, and dividing them into of decisive and of modulationcategories;(4)constructing the general model of state-owned monopoly enterprisessenior managers’ salary decision, and conducting the empirical study;(5)designing thestate-owned monopoly enterprises senior managers’ salary decision, studyingdilemma and outlet of the system;(6)concluding the study, present the relative policyrecommendations so as to instruct government behaviors, lastly putting up the shortcomings and future study of the field.The possible innovations are as the followings:1. Refining the evaluation factors the salary decision of senior managementpersonnel of SOEs of monopoly industries in China. The study of the issue is stressedon theoretical analysis, lacks the empirical support. This paper starts from theparticularity of salary decision of SOEs of monopoly industries, uses the comparativeand comprehensive methods, reaches the effective factors, and further to get thefactors of decisive and the factors of modulation, to get the relations between theevaluation factors and salary.2. Constructing the model of the salary decision of senior management personnelof SOEs of monopoly industries. Paper demonstrates the irrationality of the salarydecision of senior management personnel of SOEs of monopoly industries based onthe management and the economics, studies the nature of it, concludes the factors ofsenior management personnel salary decision, makes up and verifies the model ofsenior management personnel salary decision, then designs the senior managementpersonnel salary decision-making model.3. Probing the design plan of the senior management personnel salary decision.The senior management personnel salary decision is the major issue that relates toSOEs reformation. Paper emphases on the content and adjustment of it, discusses thesalary formulation and institutional dilemma of government, puts forward institutionaloutlet, hopes to devote the reformation the salary reformation of SOEs of monopolyindustries in China.The deep reasons of state-owned monopoly enterprises senior managers’ salarydecision is long-lasting, it should solved step by step:(1)introducing the mechanismof competition, straightening out the government-enterprise relations;(2)perfectingthe internal governance structure of state-owned monopoly enterprises;(3)seniormanagers salary should combine the true performance the enterprises;(4)increasingthe system legality of state-owned monopoly enterprises senior managers’ salarydecision;(5)strengthening the information disclosure and supervision by public.