ABC Company Salary Structure Based On Transaction Cost Theory

Under the market economy in China today, the competition between enterprises in various sectors are becoming increasingly fierce. No matter what business has a different nature, but in terms of scale, whether the company's expansion can be no borders? Multinational corporations, state enterprises, or SMEs to be more concerned about how to more effectively market mechanisms to reduce costs or product differentiation from the perspective reflects the price advantage to increase market share. Human resources can be deployed as a special resource, how to reduce the cost of human resources has become the focus of various enterprises. How to design a reasonable salary management, concerned about the performance while effectively motivate employees, encourage their employees to staff to stimulate positive enthusiasm, has become more and more enterprises are of concern.This thesis is based on transaction cost theory, research incentive-type compensation model. To ABC as the research object, on the ABC questionnaire qualitative analysis of the current situation of the company, company objectives and employee goals are inconsistent, lazy employees there is shirking responsibility and other issues described. From the perspective of transaction cost theory, give ideas to solve the above problems. From the market introduction of the concept of management of ABC Company's remuneration with the company strategic goals, according to the needs of staff are given different levels of feasibility of the program. Eventually come to a branch of applied transaction cost theory of incentive compatibility and the team production theory is to help enterprises solve the problem of human resources in companies and employees incentive target inconsistencies and issues such as employee shirking effective way.