Study On Improving Compensation System For The First Industry Design And Research Institute Of HuNan

In the 21'st century, global economy has dropped into the knowledge economy era totally. The essence of knowledge economy is that it bases upon human resource and intellectual hospital. In this era, the attention to competition between country and country or company and company has focused on the intellectual hospital and knowledge management, meanwhile Mankind is only active load body which owns intelligence and knowledge, we can say, the nature of competition is talents and their conditions. So, weather a company can attract, maintain, encourage talents and improve their performance to a largest extent or not is a basic problem which probably decides if they can exist and develop or not in the cruel competition at any time. Obviously, if we want to solve this problem, one basic and main may is to establish a effective compensation system which can attract, maintain and encourage talents in order to promote the development of company.The First Industry Design and Research Institute of Hunan is a state-owned design institute. There is a great deal of question such as being insufficient of fairness and encouragement in the present compensation systems of the Institute, so it is necessary and urgent to set up a new compensation system for attracting ,encouraging talents and promoting the lasting development of the Institute healthily.This thesis is divided into four chapters. The first chapter expounds the background and sense of the research, including the main content and ways of the research. Especially, the thesis studies and sums up the salary theory and management practice in compensation of predecessors, also probes into the advantage or disadvantage of all kinds of salary theory and plans. The second chapter shows the development of The First Industry Design and Research Institute of Hunan and it also looks into and studies the structure of human resource as well as the state of human resource management of the institute, further more, the thesis investigates carefully the satisfaction degree of staffs. After this, the thesis analyses and diagnoses the present situation of the compensation system of the institute. The third chapter gives the goal, guiding principle and thought, and through job analysis, job evaluation and the determination of ability, designs the better salary system based on the position salary theory and ability salary theory for the managers and engineers. The last chapter gives many measures to help take the new system into practice from organization, thoughts, staff training, supervise and control. Of course, the thesis provides the proposals for the human resource management, especially compensation managements of the institute.