A Study On The Diagnoses And Design On Compensation System Of TX Company

Market competition is getting more intense, and it is necessary for Chinese medium-sized and small enterprises to continuously make change in management. Human factor always decides whether the change of enterprise management is successful or not. Medium-sized and small Enterprise managers must carefully consider the matter how human resources help enterprises to win long-term competition advantage. Compensation management is the core module in the six modules of human resource management. The influence of compensation management is the total summation of the influence of all the other management activities in human resources, at the same time, there is an internal connection between compensation management system and employee stability.With the help of the relevant theories learnt in MBA class of Zhengzhou University, the author takes the advantage of working in human resources department of TX Company, and personally goes to different departments to do careful survey and research by the means of questionnaire and telephone interview, so that he gets hold of detailed firsthand data. Firstly, the paper expounds about relevant theories on compensation design. The author especially introduces the position-based compensation system and takes it as the theory basis for the compensation optimization design of TX Company. Secondly, the paper diagnoses and analyses the present compensation system of TX Company. By the means of issuing questionnaire and telephone interview, the author gets to know that there are many problems in the present compensation system of TX Company, such as lack of philosophy, unbalance of position value, unbalance of compensation combination, neglect of immaterial incentive, not giving consideration to both short-term benefit and long-term benefit, irrationality of salary decision, disjunction to the market, lack of career development channel, and irrationality of salary difference, then discusses the origin of the problems. Next, the author raises optimization design plan to solve the problems in the present compensation system of TX Company. The paper emphasizes that compensation design should obey the principles of being strategic, incentive, competitive, fair, teaming and secret, and then proposes specific steps for the compensation system optimization design of TX Company. At last, in order to ensure that the optimized compensation system could be successfully implemented, the author summarizes the features of the new design plan and proposes a series of mating safeguard measures.