The Research On Enterprise Pay System Effectiveness

The core function in human resource management is compensation management, and it is also the focus problem which brings the dispute and conflict between employers and employees. To a large extent, the total income of employees is determined by the pay system in the enterprise, so as to give effect on the living condition and the social status of employees. However, the high compensation expenditures for the enterprise do not spirit up employees'working motivation and attitude, on the contrary make them critical of the enterprise. The enterprise is not clear with the investment effectiveness of this considerable amount for the expenditures of the compensation costs. The illegibility for the effectiveness of the compensation investment which can not be measured brings the confusion for the enterprise administration。Pay system effectiveness refers to the validity of the pay system, which means the contribution to the organizational strategy made by the pay system, and it represents the contribution to the organizational performance and the incentive degree for employees'working motivation. Any enterprise does greatly attach importance to the pay system, and also want to know eagerly how effective the pay system is of its own, but it is difficult for the most enterprises to evaluate the pay system effectiveness. At present, the prevailing method for evaluating the pay system effectiveness is to equate pay system effectiveness with organizational performance. That is a simplified method, which reflects on the vacancy of a mature evaluating tool that can be used in practice. It can be imagined that the decision of the compensation adjustment will be rational if the organization can proficiently and exactly evaluate the effectiveness of the pay system.Based on this consideration, it is necessary for the enterprise to analyze the dimensions and the evaluating standards of the pay system effectiveness in order to make sure the incentive effects of the pay system and what kind of symptom it has, and consequently makes proper adjustment to the pay system.The study brings the research categories of the strategic management field and the industrial psychology field into a state of unity on the basis of the previous research about pay system effectiveness and use the model of assessing compensation strategy for reference which has been advanced by foreign scholars to put forward the modified incorporate model of assessing pay system effectiveness which systematically illustrate and evaluate the pay system effectiveness from three angles consisted of value proposition, performance differentiation and cost-benefit.Finally, based on the modified incorporate model of assessing pay system effectiveness and interrelated theories, the study builds the indicators system for assessing pay system effectiveness from three facets including organizational facet, employee facet and cost-benefit facet. And the study advances to promote the pay system effectiveness by the means of compensation diagnosis, salary survey, compensation communication and compensation budget.