Design Of The Project Of Compensation Of State-owned Enterprise Managers Based On The Human Capital Theory

Competition in enterprises, in the final analysis, is the competition for talents. As a special human capital of state-owned enterprises, administrators are an important strategic resource, whose enthusiasm constitutes a key factor to the success of enterprises. With the increasing maturity of the market economy, the enterprise development is all the more dependent on the input of human capital. However, the majority of China state-owned enterprises have the following problems: the government is closely connected with the enterprises; corporate governance is imperfect; compensation mechanism is unreasonable; administrators are appointed by the government; the value of human capital has not received adequate attention; administrators' compensation is not closely linked to their performance. All the above mentioned factors affect the administrator's enthusiasm, which has seriously weakened core competitiveness of the state owned enterprises.This thesis analyzes the theory of human capital and methods of assessing the value of human capital briefly. On this basis, the author puts forward a method to improve the assessment of human capital value and makes a detailed analysis of the status and problems that exist in the administrator's compensation in China state-owned enterprises and makes the relevant recommendations. Finally, this thesis makes a study of the performance appraisal system and compensation by taking Anhui HuiShang Light Chemical Co., Ltd. as an example to make empirical analysis. Based on the author's study, the thesis designs the administrator's compensation incentive program of this company in question. Besides, the improvements needing to be made when putting the designed program into practice have also been pointed out.