Study & Design Of Compensation System For Y Company

Compensation administration occupies the strategic status in the operation and management of modern enterprises; it is also the core of human resources management. Y Company is a stock company specialized in the operation and management of an expressway. With a characteristic of monopoly, the price of the product is decided by the government and can not be fluctuated in response to market conditions. However, the human resource of the company is based on the market supply. Therefore, its management has the nature of public-service units and of market orientation. Its present compensation system, which is based on public-service units, thereby can not reflect its company nature or express the value of position. Besides, the compensation system also doesn't conform to the enterprise culture of canonizing performance. All of the factors lead to low-level work performance. Oppositely, created with a broad way mode, new compensation system combines the characteristics of the management, sets the value of position as the base, and considers work performance and ability for job. Then Compensation increase has three channels: promotion, performance improvement and ability advancement.This paper is divided into five parts. The first part, introduction, includes the main purpose and the contents to study in the thesis. The second part, the basic situation and analysis of company Y, briefly described the overview of the company and this industry and also gave an introduction of the shortcomings of the human resource management and deficiencies of the present compensation system. The third part, compensation and compensation system, which is the basis of the whole thesis, states the principal concept and theory relevant to the designation of the compensation system. It contains the concept, composition, function and affecting factors of the compensation, and meaning, basic mode, characteristics, affecting factors and designation principles of the compensation system. The fourth part, recreation of compensation system is the main part of this thesis, which describes the whole process of the re-designation of compensation system of company Y. It takes work analysis as a starting point, by adjusting the structure of organization, scientifically setting up the positions, regulating the responsibility of the positions, establishes employee's diathesis model, by evaluating the position and compensation investigating forms the basis of the compensation design and establishes the compensation system based on position value with a broad way mode. The fifth part, the enforcement and summary of compensation system of company Y, gave a brief summary of the publicity and implement of the new compensation system before its enforcement and the result thereafter. Hope this paper will have significance of reference to the expressway administration company in reform period.