Time Inc. Pay Performance Body System Design

In 21 century the world is leading to the knowledge economy times. Human resource development and management have become to one of key factors that influence the survival and development of enterprises. So how to improve human resource development and management through innovation in internal human resource management system, such as recruitment, labor, and salary has become to un-avoided challenge for state-owned enterprises.At present state-owned enterprises are facing series of problems in human resource management, for instance, insufficient motivation, serious brain drain, etc., due to dated concepts, non-perfect system, non-professional human resource management employees. At the same time those problems have prevented state-owned enterprises for further development.With the case study of Time Electrical Company(TEC), this thesis is focused on how to establish compensation and performance management system in state-owned enterprises, which possess the characteristics of modern enterprises system and market-orientated system. Finally, the solutions fit to state-owned enterprises for series of problems in compensation system, performance management system, and management practice are offered in the thesis.After the analysis of the existing compensation system, questionnaire, and interviews with key persons in the thesis, the position evaluation of TEC Company is provided through the Eagle System which is utilized from 8 dimensions, for instance, academic background, working experience, general abilities, management activities and responsibilities, professional activities and responsibilities, etc., and 75 sub-dimensions. Based on the position evaluation, position class oriented compensation system is designed for TEC. Finally, with the adjustment of position class factors in compensation system, the proposal that makes the compensation level of TEC reached the market level in different phases to ensure the stability of employees is offered for TEC. After establishment of compensation system for TEC, the performance management system is provided. Based on the company strategy and annual operational plan, the Key Performance Indicator System is set up for TEC through the target analysis process. Then the Goal System with the concept of Balance Scorecard is proposed for TEC due to some un-accountable indicators and extra process. Finally, performance of employees can be measured in both process and results through KPI and Goal System.