The Study On Salaries Management Strategy Of NH Beer Corporation

NH Beer Corporation Ltd. has decided to take a competition strategy of incorporation with foreign companies during the trend of integration and incorporation in domestic beer industry. Thereafter, the stock price has gained a rise and the yearly financial report also showed a considerable rise in its profit. However, there is still a question: Is NH's traditional salary management strategy, which is based on the corporation sales data, still effective in this reform? In order to answer this question, on the basis of basic knowledge of salary management, theories about flexible stimulation to the personnel resource and stimulation theories in Management and Economics, after participating the yearly investigation given by the Personnel Department in NH, this study offers a detailed analysis on the current salary management strategy in NH.The study designed a questionnaire to carry out the investigation. 500 copies were handed out and among the collected, 364 are effective. The research also made interviews with the person who is in charge of the salary management department, and with 11 department leaders. Besides, the writer was allowed to check the record of 2004-2005 management report and other related materials. The result of all the work shows a salary management model that NH is taking: among these who are not in positions of sales, their salaries are paid according to the total sales of NH;among these who are in positions of sales, their salaries are totally paid on the basis of discount from total personal sales result. This model has once pushed the development of NH, but now, it cannot meet the demands in different aspects: to attract and cultivate talents who are essential to the development of NH, to satisfy the needs in different positions, and to introduce diversified salary management models according to the diversity of positions.A further study shows a high pertinency among the development strategy, characteristics of the industry and the salary management strategy. After the incorporation with foreign companies, NH need improve the internal management level, attract wanted talents and activate the enthusiasm of employees to attain an internal drive for its development. Employees in different departments and at different ages have different personal demands. In accordance with the improvement of work efficiency, the company need establish a stimulant salary model according to different characteristics on different positions. A diversified salary management model can meet all the different demands. Thus, in its salary management, NH need establish a salary model on the basis of its development strategy and different demands in different groups in its employees. It need establish a salary management which takes position salary as the main body, together with work achievement, welfare, stock and risk salary.On the basis of the analysis, this study tries to design a new salary management model for NH which respectively focuses on organization system, position system (work division, work assessment of a position, and position group division), structure system (components of salary, position salary, achievement salary, salary level, salary grades), welfare system, assessment system, administration system and strategy system. The model is expected to be examined in the future salary management in NH.