The Redesign Of Compensation System In ZG Company

With the rapid development of knowledge Economy, the acceleration of the economic globalization and the entrance of the WTO, the management environment of Chinese enterprises get more complexity, as well as uncertainty. Human resource has become the core of the competition among enterprises. The important component of human resource management is the compensation system. A sound compensation structure can motivate the enthusiasm of the employee and improve their working effectiveness, therefore it can promote the competitiveness of the enterprise. Compensation system serves as the development strategy of an enterprise. Combining the advanced thinking of compensation management in developed countries with the practice of Chinese enterprises has been the prerequisite for Chinese enterprise to copy with the intensive competition and achieve sustainable development. This thesis tries to deal with the issue of compensation management. The redesignof compensation system will support the "re-creation" of ZG Company., and it also can be a reference for the same sort enterprises.The thesis depends on the method of case study. Through the review and application of the main compensation theory and motivation theory related to compensation, and the experience that the author has been engaged in managing for many years in ZG Company, it analyzes the environment inside and outside of ZG Company and puts forwards the strategic choice of "re-creation". The shortcomings in the original compensation system of ZG Company are analyzed, such as the lack of accuracy and equity and competition, which have brought the threat and crisis to ZG Company. The thesis stresses the significance that ZG Company is regarded as a typical example of private pharmacy enterprises. Based on the development strategy and compensation principles of ZG Company, the thesis redesigns its compensation system. The new system takes principles of equity, motivation, competition, economy and legitimation. It aims for the bottleneck department of human resources section and the concern for key posts at the present stage in this enterprise, and introduces the long-term incentive. The new compensation system regards the performancemanagement as important content of compensation management. It strives for realizing the "win-win" between the enterprise and its staff. Although there are all sorts of disadvantages in the redesign of compensation of ZG Company and its running time is relatively short, it has already improved the human resource management of this company effectively. The new compensation system has realized the attraction, encouragement and development of talents, and supported the second phase of development of this company. At the same time, it can be a reference to numerous private pharmacy enterprises in our country.