A Survey On The Establishment And Implementation Of Compensation System In Huahong (Group) Company

With the rapid development of economy, human capital has become the most important resource of enterprises. How the human resources changes into human capital, incentive effect is very important. Compensation system is the subsystem of human resource management. It indicates what is valuable, and pay policies and procedures. A good salary system is directly related with the organization's strategy, thus enable the employee to concentrate their efforts to help organizations survival and develop.The paper takes Huahong (group) company as a case study. Firstly, it introduces HRM theories, and the company's payment structure, strategic focus, development stage and the current status of human resources and compensation system; then the author tries to find out the existing problems on the compensation management; furthermore, some analysis on the problem have been discussed; based on the above survey, the author re-design a new compensation system; at last, the author discuss possible problems of the new salary system. Through comparisons of new and old compensation system, expecting to realize the importance of compensation system fully.