The Design For LR Company's Compensation System

The design for a company's compensation system is one of the most important parts of a lot of companies' human resources management. The compensation systems of some companies which are progressively reformed from state-owned enterprises are not scientific and reasonable. As a result the enthusiasm of everyone is affected from the manager to each employee.How to design a compensation system suitable for the enterprise's development requirement by using the modern management method such as the diagnosis and system design method becomes a necessary process when an enterprise makes a improvement on its management. Only good institutional arrangements can produce good performance and maximize the mobilization effect on employees' enthusiasm.Closely linking with the real situation of the company, all the material of this thesis is collected by a case study method based on the result of special survey and literature search. The writer analyzes the current status of LR Company's compensation management by several different methods such as information collection, data analysis, field survey and so on. The main problems of LR Company's current compensation management system are as following: not motivate the employee flexibly by integrate the compensation with the capacity and performance of each employee; not determine the exact value and wage of each position by a scientific and reasonable method; the wage can not really reflect the performance of each employee. During the design, the writer increases the ratio of performance wage. A reasonable wage is determined by make a position analysis and position evaluation. The design and management level of LR Company's compensation system is improved greatly by many jobs including the improving design for the performance appraisal system. The implementation method and the establishment of supporting system are emphasized.By improving on the design and implementation process of the compensation system, LR Company can attract and retain the high-quality talent, inspire the enthusiasm and creativity of all staffs, enhance the core competitive ability of the enterprise and achieve a win-win situation between the enterprise and all employees.