Study And Redesign On The Compensation System Of KD Company

Talent is the key to winning the competition in the 21st century, the age of knowledge economy. Human resources are the primary resources in the age of knowledge economy. In the growing competition, he who attracts, retains and makes good use of human resources holds strong core competence and stands out in the fierce market competition. For an enterprise, one of the key measures of achieving this goal is to establish a rational and efficient salary system, a scientific salary system, like a propeller for the development of an enterprise, brings out the staff s enthusiasm in working, thus the enterprise accumulates stronger core competence and remains invincible in competition.Founded in 2001, KD Corporation mainly deals in mobile communication, IDD, DDD, data communication, internet, IP phone services, local phone services within the scope approved by authorities, wireless beeping and other businesses approved or entrusted by the state. With 4 years of continuous efforts, KD Corporation has completed a multitude number of infrastructural projects, including long-distance data communication, internet and their supporting systems and Lhasa Urban Region Communication. The key indicators, such as business income, the number of new subscribers, the completed investment in fixed assets, have grown by a large margin. While catering to the needs of communications forTibetans in urban and rural regions, KD Corporation has achieved significant economic and social benefits, making a remarkable contribution to Tibetan social and economic development.Based on the improvement in its human resources management system, a redesign, in both theory and practice, of the administrative staff of KD Corporation has been made. As one of the devisers, I have done surveys, interviews, and problem diagnoses, and have been involved in working out the redesign of the compensation system for KD' s administrative jobs.This paper includes five parts. Part one introduces the basic theories in salary design. Part two makes an analysis of KD' s current compensation system, its characteristics and the existing problems. In part three, descriptions of administrative jobs are revised; job evaluations are made with the technic of performance grading; a redesign of the compensation system for KD' s administrative jobs and the supporting performance assessment scheme is made, based on market research. Part four makes an overall review on the merits and demerits of the redesign. Part five is the conclusion.This redesign bears these distinctive features: that the more scientific techinc of performance grading, which provides an equal footing, is applied; that the evaluation factors and the distribution of weight have been decided by questionnaires; and that it is strictly focused on solving those existing problems in KD Corporation. Meanwhile, the scope of raising the compensations for junior staff with long time of service is to be limited due to the lack of a overlapping in compensation between different rankings of jobs. The undiscriminating method of compensation grading ( three grade for each ranking) which is applied to all rankings may cause difficulties in raising compensations for employees of certain ranks.