Foshan Power Group Corporation

Taking example of cases of the annual compensation system designed and implemented by the state-owned enterprises of Foshan Power Group Corporation for its managers of the enterprises, this thesis expounds the practice and effect in regard to annual compensation system on trial for the mangers in state-owned enterprises at present. On the basis of analysis of the trial system, the incentive and positive effects of it are pointed out in the text. Moreover, some countermeasures and suggestions are put forward in relation to the imperfect parts as well as negative effects of the system.This thesis is mainly composed with example of cases and analysis. The main body of text makes the focal points of the introduction of compensation reform carried out by the Group Corporation as breakthrough to promote the reform of enterprise and innovation of system. Furthermore, the human resources are active and the enthusiasm of the managers of the enterprises are stimulated sharply so as to raise the efficiency and business performance. In view of the general situation about the annual compensation system on trial for the managers of state-owned enterprises in the past years in China, the analysis of the cases in the text is emphatically directed to the necessity and urgent to carry out the annual compensation system for the managers of the enterprises. On the basis of current practice and experience of the annual compensation system in the state-owned enterprises, it summarizes what we have learned from the design and implementation of compensation system in the Group Corporation. It intends to present the key role of the annual compensation system to bring every positive factors of the directors and managers into play, while ensuring the objectives for performance of enterprise and those of the managers to be the same. In addition to this, it points out the bottleneck in peoples sense and policy of reform in practice of the annual compensation system. Trying to innovate the system and improve the related policies of enterprises as the point of departure, it discusses the way for setting up a scientific proposal of annual compensation system which can efficiently stimulate and restrain the operation managers of state-owned enterprises.