Sm Technology Co., Ltd. Remuneration Package Redesign

Compensation administration is one of the core contents of human resource management. In modern enterprise management, compensation administration is more a key factor closely connected with enterprise human resource management strategy than just a kind of cost. For enterprises'sake, compensation is a powerful tool to push strategic goal forward. Meanwhile, compensation administration is regarded as a hardest, most sensitive, and most policy-related work. This is not only because labor reward and welfare is the material premise for employees to work and the source for living, but also because the distribution of compensation is the conflict focus between enterprise and employees, and between employees and employees. Practice from a great deal of enterprises proves that there exist a close relation between employees'performance and compensation system. A scientific and fair compensation system provides a foundation for success. On the contrary, a compensation system which is far from scientific and fair will greatly do harm to labor enthusiasm and efficiency. Therefore, the compensation system design must take actual situation of an enterprise into consideration, use related theory rationally, combined with strategy and culture, systematically and scientifically consider all factors, and adjust according to changes. In this way the actuation and direction function of compensation can work effectively and provide ensure for survival and development of the enterprise. This paper redesigns the compensation system of SM Science and Technology Co. Ltd. with compensation theories, aiming at establishing a compensation system supporting organization strategic goal, putting into practice effective compensation actuation, realizing optimization of human resource distribution, and developing human resource better.