The Program Design Of Salary System For National Commercial Banks

Salary is a problem concerned by all managers and staff of an organization. It is also an effective means to manage the human resource. For salary has a great effect on the attitude and loyalty of staff, efficiency of works, and choice of jobs, only scientific salary system can stimulate the enthusiasm of workers, improve the internal structural balance, promote competition of an enterprise, and further achieve the goal of its strategy. This article, based on the history of the salary system of national commercial banks, analyses the formation of the system currently in effect in these banks. It makes an analysis from the two aspects of internal equity and external competency. This article, by comparing the salary system of national joint-stock banks and that of foreign commercial banks, summarizes the shortcomings of national banks' salary system in payment measures, encouragement and welfare. In addition, this article, by analyzing the factual condition of National Commercial Banks and drawing on the mature experience of international commercial bank, arouses a payment viewpoint of "salary by post, charges by achievement and assess of proficiency and linkage to market". Meanwhile, it designs a special salary system for national banks by using nowadays salary theory of technology. First, this article, by analysis and comparison, summarizes the shortcomings of National Commercial Banks'salary system as followed: 1 .The salary system of National Commercial Banks is very unequal for the influence of planned economy. On the one hand, the salary system shows great equalitarianism. On the other hand, the distribution of salary has no relationships with the achievement. The main characteristic is that the average salary of all staff is almost the same, despite of the differences of the importance, complexity and difficulty and intensity of their works. The result is that some people's salary is higher and some others are lower compared to their works. Senior managers' personal income is unrelated with their liability and achievement. There is no difference with the salary of ordinary staff. All this show that there is no perfect assessing system on for achievement and no scientific standard to relate their achievements with their salary. 2 .The level of the salary of national commercial banks has no competency with that of other banks. This difference does not only show in the comparison with foreign banks, but also in the comparison with national joint-stock banks. The salary level of these banks is decided by their board of directors, but for the national commercial banks, the salary are planned and decided by their head-quarters and also influenced by the Ministry of Finance, Ministry of Labor and Central Bank. Such a long decision-making system leads to the un-flexibility of their salary payment. As a result, it shows that the difference of staff's salary is limited. That is, the salary of high qualified workers is low and that of low qualified staff is comparatively high. 3 .The standard of setting salary level is different between national commercial banks and foreign banks. National banks usually decide their salary levels based on their staff's posts, records of formal schooling, ages of works, achievement and some other elements. As a result, the salary levels actually express a standard of official titles and equalitarianism. But as for foreign banks, the salary levels are decided by post value, personal ability and achievements which results an internal fairness and external competency on the salary distribution. For the short stimulation, national banks lack of the assessing of staffs'achievement. That is, the distribution of the salary has no connection with their achievements, while for foreign banks there are a strong connection between their salary level and achievements. As for the means for payment, national banks usually distribute the salary monthly, quarterly and annually, while the foreign banks ordinarily do that yearly. For long term encouragement, national commercial banks have no any measures, but foreign bank may do this by distributing stocks in order to absorb or retain high qualified staff. In the aspect of welfare, the aims of national banks'welfare are just to show the concern on the staff's lives and form a phenomenon of a "large family", while the welfare of foreign banks show a great humanity and difference, which aims at satisfying the personal demand of their workers. In order to overcome the shortcomings which exist in the salary system of national commercial banks, this article arouses a principle and strategy for the design of the salary system 1 .The principle of the design of the salary. The first is the principle of fairness. If the national commercial banks want to reform their usual salary system, change their way of salary setting based on post value nut not on administrative posts, and really reflect the difference of simple works and complicated works, ordinary liability and important liability, repeated works and creative works, this principle of fairness is the basic one. The second is the principle of competency. If the national commercial banks hope to absorb the qualified personnel, the importance is that their salary system a have great competency among the same industries. So the national banks must design a differentiated salary distribution system, make a different assess measures and distribution principles, and all these must base on the post value and their...