Perforemance Design Of KG Company Oriented By Incentive Mechanism

A company's development is based on its management system. As part of Enterprise Management System, Compensation Management is connected with Manpower Capital and Financial Capital. Compensation System is very essential for the company's development.With China's state-owned enterprise reform, KG Company has re-organized the company system and becomes a modern joint-stock company. Although its system is re-organized, old human resource management system is still running and the modern human resource ideas and methods are difficult to be applied and developed in the company. The salary management system is passed and lacking of incentive. The salary level is low and the staff can't be motivated.In the article, the author has analysed KG Company's current compensation structure, compensation level, positions and compensation grades, and then has studied the compensation system's problem, reasons and effects. The author gives a proposal and establishes new compensation management system against the current compensation system's problem, under relevant modern human resource theory, with qualitative, quantitative and comparative analysis. This new compensation management system includes workable Position Grade Classification Method for KG Company referring to all kinds of position appraisal theories; Using all kinds of compensation survey methods, it establishes overall compensation level and benchmark positions'compensation standards according to KG Company's situation and financial condition; Grades, level differences and range of all positions'compensation being defined, all grades of positions'compensation table and implementation rules are made.Through analysing KG company's current compensation system and redesigning its compensation system, the author suggest that modern companies should have the adaptable compensation management system and unalterable management system can't adapt to development. The new design of compensation system is under modern market environment, based on modern human resources management ideas and meaningful for completing company compensation system, strengthening compensation's competence, motivating employees, improving employees'efficiency and promoting a company's vitality, profit and steady development. In the future, compensation system should be adjusted according to changes of a company's development and market environment; it 1 give a company new ideas and help a company develop well when compensation system forms a comprehensive theory.