Design Study On Position Performance Compensation System Of Yankuang Group

Compensation system is an integral part of the human resource management because it plays a key role on motivating employees, attracting intelligent and realizing the strategic target of an enterprise. Under the system of market and knowledge economy, how to design and implement a practical compensation system which can better fit development of the enterprise is a crucial task with top priority for the enterprise.This paper takes Yankuang Group, a large scale coal enterprise, as a study object, investigates thoroughly the current compensation system of the company, analyzes those problems existed in the said system, and put forward a protocol for position performance system based on the position evaluation under guidance of rationale of the compensation system and related incentive theories, and finally gives some suggestions on the execution and supervision of the protocol.The paper is divided into four parts, firstly, to review the compensation system and incentive theory, compare the design methods and main patterns of the system so as to set the theoretical basis for designing of the system; Secondly, to describe the organizational and industrial structure, situation of the human resource and strategic trend of the company, put emphases on the main existing problems of the system, and bring forward the idea of innovation; Thirdly, to give a wholly new design of the system on the basis of the strategic trend of the company aiming at a final solution of the problems. This is the core part of the paper, including establishment and implementation of the evaluation specifications of the positions, classification of the positions, design of the position performance wages and design of the system for special colonies of the employees; Fourthly, to discuss the possibility of setting a safety mechanism to guarantee the execution of the system from point of view of the performance appraisal and monitoring, adjusting and managing of the compensation system.The compensation system designed by the paper, based on the scientific evaluation of the various positions, shows an interior impartiality; The setting of basic salary and performance radix, taking into consideration of the market mechanism, pushing the salary allocation back to the market price of the labors, demonstrates an exterior equitableness; Integrating the position difference with the individual performance, reinforcing the incentive function of the system, proves justice of the design of the system; In addition to this, special designs are worked out to meet demands of the medium and higher level of the managing staffs, R&D personnel and the salesmen respectively so as to support the strategic target of the company.The design and study against the compensation system of Yankuang Group, gives us a good reference and guidance on the area of speeding up the formation of an employee-driven rewarding and bonding system in the large scale state owned companies and increasing of the advantages of the company among the human resource competition.