Compensation Design For Hongtaiyang Food Company

As China entered WTO,China needs to keep closer relationships with the world than before.And China has more things to study in all fields,especially in management in organizations.Human resource management(HRM) is a necessary activity in all organizations.Managers have become aware that HRM is a function and area that can play a vital role in the success of organizations.HRM is an active participant in charting the course an organization wants to keep competitive.productive and efficient.HRM's focal point is people and people are the lifeblood of organizations. So the uniqueness of HRM lies in its emphasis on people in work settings and its concern for the well-being and comfort of the human resources in an organization.Compensation is one of the functions of HRM that deals with every type of reward individuals receive in exchange for performing organizational tasks. It consists of financial and nonfinancial compensation.Praise,self-esteem and recognition is concluded in nonfinancial compensation.The objective of the compensation function is to create a system of rewards that is equitable to the employer and employee alike.I was given a chance to apply what I had studied in Sichuan University to the company which lies in H city in Sichuan province.The company was a state-owned factory before 1996.From 1996 onwards,it began to be tansformed from under the planned-economy system to the market-oriented system.And now the company is owned by 43 share-holders.But unfortunately for the company,all the share-holdersare the employees.Of course,the situation must affect the management of the company.Almost all workers have the same thought that we mustn't be dismissed. So the leaders of the company invited some experts of Sichuan University to guide the further reform.I joined them.Poit-pay sytem is based on the job's responsibility,skill,condition and difficulty.It is chosen for the design of the company's compensation system because of the unique situation of the company and the industry in which the company lies.The competition of food industry is very flerce.Employees' income must be associated with the interests levil of the company if the company wants to survive in the industry.According to the situation of the company,the point-pay system consists four partsyob point,skill point,diploma point and seniority.And the pay is divided into two parts:one is fixed,the other is changeable.The changeable part varies with the company's interests levil.My thesis consists of three parts.The first part is about the compensation's defmition,functions,influencial factors,forms,etc.The second part is about the company itself. The third part is about the course of compensation design for the company.Any suggestions and comments about the thesis are welcomed because this is the first try for me to design the system of this kind.I sincerely thank my teacher Tao Li and He Chengjin.