Improvement Design Of Salary System For Longda Company

Salary system is a powerful tool in the achievement of enterprise strategy goal. It greatly influences the attitudes and manners of the staff members. To them, salary system is an important factor to evaluate their relation intimacy with their company. Therefore, the design, implementation, evaluation, adjustment and improvement of salary system play a critical role in enterprise management. Longda's salary system is formed after the comprehensive analysis of the present situation of enterprises and their problems which is aimed to settle its practical issues. The specific procedures are as follows:The introduction section deals firstly with the background of topic choosing and the practical problems of strategy, fairness, competition and incentive. It also demonstrates the research methods. Through comprehensive, systematic and scientific analysis, I present a suggestive and constructive plan for improving salary system of Longda.In the first chapter, I introduce Longda's present situations of human resources and salary system. I particularly investigated four parts including salary system strategy, recognition of enterprise strategic relation, rationality of salary structure, competition on salary levels and incentive systems. I pointed out four problems such as unfairness, irrationality, lack of incentives and lack of level in wealth. I analyzed and demonstrated the causes of these problems from view of salary management system, theory, evaluation.In the second chapter, I proposed a general idea of improving salary system after I analyzed the salary system problems existed in Longda. I pointed out that Longda should clarify its principles of salary system strategy, fairness, incentive, economy, operation and legality. Only in this way can Longda achieve their goal of internal and external salary fairness, connection of staff competence and their performance and incentive. In this chapter, I mainly stated the process of designing how to improve salary system. I specifically analyzed the salary strategy, options of salary mode, evaluation of positions and salary survey. I think that the starting point should be taking in excellent staff and lowering cost of human resources. The salary strategy is a mixed form. I took a harmonious salary mode which is encouraging and stable. Through the proportional change of performance and basic salary, Longda can meet different demands from various positions. I took a main point dotting system in the position evaluation which can evaluate relative values of positions and also lay the foundation of improving salary system. I took a special salary survey system which combines open materials with competitors'salary level to ensure we have a competitive improved salary system. The last part of this chapter demonstrated the influences on salary system from three aspects of external factor, internal factor and staff factor.In the third chapter, I specifically introduced the specific contents of salary system improvement in detail. First, the basic salary system: the basic salary plus performance salary ,overtime pay ,wealth and share out bonus. I demonstrated the effects each section makes to the staff members. The basic salary section stresses one position many incomes, which shows the position value and working years; performance salary highlights the relation between performance and income which indicates staff competences and their performances. It has an encouraging effect. Wealth is designed according to the actual need of staff. Secondly, I presented the support and approach to confirm each factor of salary system. Salary is defined by level, salary standard, level differences and basic salary scale. Levels are divided by the consequences of position evaluation. Different salary standards are confirmed on the basis of salary survey. Level differences and basic salary scale are designed by cooperate factual situation. Level differences in Longda are 25%. Basic salary scale is 30%. Performance salary is defined by bonus perspective and performance assessments. The perspective of performance bonus for managerial staff is 30%. For normal workers is 50%. Performance assessments coefficient is corresponding with assessment level, which is from 0– 1.5. Wealth is based on legal wealth which includes vacations with pay, subsidy, traveling insurance, physical examination, tour, zero-interest loan for car and house, and education sponsorship.In the forth chapter, there are three parts about how to implement, evaluate, and supplement the improved salary system. Suggestions are made on how to establish position assessment system, construct and complete performance management system, establish salary system communication and revision. According to its integration, competition, structural rationalization and flexibility, I made delicate assessment. Finally I made my imagination that present salary system doesn't include enterprise manager salary design, internal salary design and flexible wealth design. In the enterprise manager salary design, I suggested that we emphasize stock incentive and non-material incentive on the basis of satisfying manager's daily needs and short term incentive. In internal incentive design, I suggest that we grant staff members honor, let them engage in management, promote their capacities, care about them and present them a nice working place. In flexible wealth design I proposed legal wealth and optional wealth mode.In the conclusion, I briefly stated the characteristics of Longda salary system and pointed out that only solve these problems can we implement the salary system smoothly.