The Salary Scheme Designing For State Own Enterprises

Since China has become a member of the WTO,the more and more overseas multinational corporations will come into China with advantage technologies,management methods and strong capitals by the further opening policies. As multinational corporations want to implement the localizing strategy,they will offer much more higher salary than Chinese state own enterprises (SOE) are doing now. Therefore,it is inevitable to make the brains drain from SOEs to joint ventures or foreign companies. The enterprisers have to notice how they face to this tough issue. So the human resource is always considered one kind of important capitals in every company. In current situation of the world,the company which it has employed perfect staffs will probably win the success from fiercecompetition as long as it has motivated its employees effectively and efficiently. However,what can be used to make the staffs working hard for the company actively? Is there an essential way to solve this problem? The answer is positive. It is well known to pay the employees by salary as an incentive approach. How do we pay the staffs with the different contributions working on different positions fairly? For example,people who work on R&D sector or manager positions should not be paid salary by the same payment standard with general workers who do simple and repeatable in the workshop. It means that we need a salary scheme thatwould be designed systematically and scientifically. One complete salary scheme has to include contents as follows:analysis of working positions;assessment of working performances;standard of calculating wages,bonus and so on. On the other hand,how many the annual revenue of the company will gain should be considered as well,or it might not be able to afford the expenditures of the salary.Those are vital work for the human resource managers. The author has been working at the personnel department in a super state own enterprise (SOE) for more than 17 years,and has plenty valuable experience for designing salary scheme. In this thesis,the author tried to combine what he has learnt the courses about MBA degree and what he has accumulated in his 17 years working practices to contribute it to the person who work on HRM. This paper has some characters of feasibility and easy to operate. Theauthor hopes that it can be helpful for reforming salary allocating system in Chinese SOEs.