Research On Salary System In D Company

The salary system of D company has been out of date and needs to be updated with China entry into the WTO and the fierce competition in the marketplace. A new theory is proposed in the 15th National Congress of CPC that " compensation is mainly based on the work people do, but should combine with the production factors". Also it is concluded in the fourth panel of the Congress that "the compensation should be duly decided by the average income of local people and business results of the enterprise", so that the guideline of "compensation is mainly decided by the work people do but considering other factors into the allocation system in order to establish the stimulation system is enacted. Besides the new target is proposed to establish new allocation system matching with the modern enterprises It is further stipulated in the 16th National Congress of CPC that "the allocation system should be based on the contribution made by labor, capital, technology and management to make the allocation system perfect and complete. All the systems mentioned above laid a solid foundation for designing a reasonable salary system. It is especially significant for D company to have a practical and reasonable salary system so that it will be beneficial for its own development and establishment of updated management system.This thesis starts with the analysis of the development of current salary management and allocation system, and then illustrate the guideline of designing salary system and allocation system. Based on this, the salary system of D company is designed so as to match with the market economy and the current circumstance in D company. First of all, I explain briefly about the background, the study methods and process of this thesis plus with D company, and the development and research trend of salary management along with government policy for salary management. Then I analysis on the current salary system in D company. Based on this, I propose the guideline for designing salary system for D company and introduce it including the management system of position and grade, the bonus system for different positions, management system of staff performance appraisal, and the annual package for mangers and the equity plan for stimulating employees. At last I propose several kinds of salary management systems.This thesis is written based on the current situation of D company and some updated international experiences. Hopefully it will be valuable and beneficial for the ongoing reform in the salary system of D company.