The Research Of SA Company For Reengineer Of Compensation System

Human resources have gradually become the enterprise strategic sources in the nowadays business management, consequently the human resource management has been upgraded to the height of strategic management from the traditional staffing management. The compensation management is at all times one of the core parts in whichever stage of management. If enterprise has no scientific compensation systems, it is in no way to gain competition advantage in terms of human resource management because the compensation management plays an irreplaceable role in the management in a unique way. The compensation is the motive force for employees, the physical foundation for survival and development, the expression of social status and the means of self-fulfillment. Furthermore, the compensation is to connect employees with employers and link their benefits together in tangible and intangible forms. The compensation system is crucial in the process of enterprise achieving its own competition advantage and strategic objections. The design and implementation of compensation system is one of hard cores for the human resource management and it is very complicated. The scientific compensation system must reflect the equality of reward and motivation to employee's performance. SA pharmacy company was merged from two companies in the year of 2004, it ranks in the third position worldwide and first in the Europe. As for all merged companies, the success of the merge rests with human resource integrations, especially for the SA Company which merge is just like snake swallowing elephant. The former two companies have a great difference in the level of compensation. Considering stability of the merge, the tactic to lower salary and wage has not been adopted.However the trouble hidden behind same task different pay can't be neglected. The present compensation system is in an urgent need of reconstructions, which call for not only matching rank with competition in the market, but internal equality and employee's satisfactions, and besides of these, it must be in line with the company development stage and strategic objections. This dissertation makes an analysis and research of the company's compensation, meantime makes a brief evaluation of the company's compensation based on the human resource management related theories including compensation theory, motivating theory as well as the development of these theories. It presents a workable solution to the reconstruction steps and the new structures and regulations of the compensation with the appliances of wide range compensation and overall compensation theories based on the practice situations.