H Company Of The Incentive Pay System Design

In modern enterprises, compensation is an important part of human resource management, reasonable and effective compensation system can attract and retain high quality and competitive person. In employee's mind, compensation is not only labor rewards, but also it represents staff value and enterprise's approval, even it represents individual ability, morality and development future. Thereby, Compensation can stimulate the staff's work desire and can also promote one to throw all his heart to the work. On the one hand employee expects to improve his work performance, and on the other hand to earn more money. In the process, one can feel the joy from his self- value realization and others' respection.The thesis combines compensation theory with our country's practice, and it reflects how to design the incentive-based pay from management and the economics dual angle. The management motivation theory mainly emphasizes how to take different incentive measure on individual, while the economics motivation theory mainly considers economic benefits encouragement, the two theories are supplementary each other .The thesis combines the management motivation theory with the economics motivation theory to discuss the question about how to design incentive-based pay system, makes the compensation system more perfect and inspiring.The thesis takes H Company as example, expounds how to design incentive-based pay system and how to combine compensation with the staff's achievements and staff's contribution closely. The article strengthens staff's sense of responsibility, and arouses their work enthusiasm, creates a kind of positive atmosphere, strengthens the core competitiveness of enterprise. The thesis is divided into five parts,The first part defines incentive-based pay, and studies the competitive advantage which compares with the traditional salary as well as the factors which should be considered.