Compensation System Design Of LY Company

The reasonable compensation system design will be one of the solution for many companies of solving the supply and demand conflicts of human resource. This thesis focuses on New LY company which belongs to automotive components industry as study object. We used the data analyzing method to study how to design compensation system under company's compensation strategy. We have designed the board band salary according to company flat organization structure characteristics and company culture which encourages and pays attention on employee's potential development.The thesis firstly introduces the background and meanings of selecting compensation system design as study direction. And introduces the main study content is how to design a reasonable system for LY company. Secondly it introduces compensation system theory, such as several traditional compensation system, broadband salary structure and etc. It introduces the main thoughts of LY company's compensation system design. After that it explains the company's compensation policies and principles, design flow and key issues we should pay attention. Lastly it emphases on explaining the detail design scheme of LY company's compensation system. By following company's compensation policies and principles, we analyzed all positions in the company and evaluated the position value on the guide of International Position Evaluation System, then got the position grades structure. We got the LY's positions market price curve through analyzing the year 2004 automobile industry compensation survey report. Based on those work LY company finished designing of compensation structure to fulfill it's organization structure. This includes board band base pay structure scheme, piece work incentive scheme, monthly bonus scheme and year end bonus scheme.LY company's compensation system is set up on the basis of compensation theories, practice and large quantities of data analyzing. The smoothing running fact in these months proves that the system is fit for company development. However as a human resource expertise, we deeply know that compensation system is infected by corporation culture, company operation policy and market environment, so it's impossible to design a really perfect or long life system for the company. We should adjust or redesign the compensation system on required time to fit for the company development.