K-company Remuneration System Design And Evaluation,

In today's market economy, the global business has achieved the mutual recognition that human resource is the most powerful and critical resources in maintaining the competitive advantage, just like management master F. Drucker believe that,"the so-called management is to manage personnel……, management of personnel is the main part of management". Compensation, one of the most important and sensitive parts in HR management plays an important role in attracting,retaining, motivating the talent that the enterprise demand. To some extent, compensation as the index of the value of personnel affects the flow of talent. especially, during the stage of the transition of our country, it is more important than before, establishing the compensation system suitable for the enterprise does not only promote the development of the enterprise, but also make use of the potential of HR. based on the practical situation of the former compensation system of K Company, through survey and analysis, this thesis combines the practical situation with the HR management theory, adjusts and revises the compensation system. First of all, this thesis introduces K Company and points out the existed issue of the former compensation system and the consequence that has been resulted in. Combining the K Company's history of the development with the current situation, the development goal as well as the drawback that the original compensation system exposed, it analyzed that the current compensation system has already become a seriously obstacle of the company's rapid growth and has limited its competitive advantage. Chapter Two is a basic theory part of the whole thesis. By using the relevant theories of human resources management, the basic principle of salary management, it expounds the following aspects: the core of compensation; the principle of designing compensation system; the general thinking of designing compensation system as well as other related aspects. It provides a basic theory of re-designing the K Company's compensation system. Chapter Three is the key part of this thesis. It focuses on K Company's reform implementation of the compensation system. By combining the theories mentioned in Chapter Two with the practice of K Company, K Company redesigns a new compensation system that is more suitable for itself. Firstly, it should explicit the general thinking and the anticipating target of re-designing compensation system. By means of Mercer Company's HR analysis tool, the K Company makes the assessment of the original work position, and set up a compensation system. It makes a great change in the following aspects: the basic wage, merit pay, welfare, incentive pay etc. The key point is to resolve the compensation problem of the key staff., adopting the system of the annual pay to the senior personnel, offering the research and develop personnel a rational way of promotion as well as a suitable compensation same as the administrative personnel. Thus,we can create an excellent competitive atmosphere, motivate the staff to pursue excellence. In the end, it will serve the implementation of company's development strategy. Chapter Four gives some brief comments on the implementation of K Company's new compensation system and offers some suggestions on how to improve it and make it better. The final part summarizes this thesis.