Compensation And Appraisal System Design Of LPE Company

LPE become a state-owned limited liability company under the gradual deepening of the state-owned enterprise reform process, which originally was a subsidiary of Liaohe Oilfield Company. As a state-owned limited liability company, the revenue and profit levels of LPE have grew rapidly over the years, but the salary system is relatively rigid, the company's rapid development depend on human resources management, because of continual loss of good employees and losing attracting of outstanding talent, so We need to redesign pay system and performance evaluation.Salary design is an important part of corporate human resources work; it is integral part of the incentive system core. Because of its irreplaceable role, it has become a critical issue in the process of enterprise management. A reasonable pay system not only save a great deal of the company's labor costs, but also reach a very good incentive effects, and promote production efficiency, and vice versa.Therefore, this article make wage system reflect not only the individual's ability, but also his job performance through skills evaluation and performance appraisal, based on internal salary survey and analysis of company's compensation system situation. Meanwhile, this paper also analyzed the way to control the company's payroll, as well as the key point in the implementation of the new salary system. LPE's salary system design was proposed in this paper by using methods of management science, psychology, economics, and organizational behavior.This paper mainly deals with the issue of pay structure, mainly including basic wages, incentive pay etc. Of course, to some extent, these elements are separated is not possible in practice. However, the latter are relatively simple operational problems, so this article do not study it as a focus but consider it in salary calculations.