Study On The Salary System Of LM Science And Technology Stock Co.,Ltd

Dalian LM Science and Technology Stock Co., Ltd (short for LM Company) is a high-tech nongovernmental business enterprise. It has turned into a successful well-known corporation both home and abroad after its carving out stage with high-speed development. However, the disadvantages of household type management have become more and more obvious. The original salary management is the biggest bottleneck of the human resources management in company's development, and the problem of internal allocation becomes the key factor of chilling the enthusiasm of the staff, as well as the key factor of deciding the stability and progress of the company.First, the paper systematically summarizes the basic theory of salary management and the history evolution of salary theory. Then it expounds in details the competition theory, fairness theory and encouragement theory in salary system design, as well as the economic value and validity of this system when it formulated, thus lays a foundation for the following part. Later, through the assay of real salary situation in LM Company and by analyzing the existing salary system, the paper takes apart problems lying in the previous system of coherence deficiency, low transparency, poor flexibility and no connection with practical performance, etc. It also points out the causes of them. After that, it discusses the purpose and necessity of salary system improvement, defines the overall thinking of designing salary system and the principles that it should adhere to. On the basis of post analysis and adopting factor-record method, the paper appraises on post and rearranges the salary fordifferent staff in the company by means of survey on salary. For senior managers, it devises a salary system that combines annual salary with stock option. For technicians and common managers, it adopts a structural wage system that gives priority to post salary. For staff with production and service, it designs a structural wage system that integrates post wage with hourly wage. At last, the paper makes a brief analysis of the improved salary system, then puts forward some specific measures and suggestions for further execution.