A Study On Target Compensation Management In China Construction Bank, Shandong Branch

The principal view of this paper originated from the serious thought on contemporary compensation theory and the in-depth research and observation on current practice of compensation management in China Construction Bank, Shandong branch (herein after referred as CCBSD). It is widely known that the lack of a scientific compensation management mechanism has become a bottleneck of human resource management in state-owned commercial banks which generate certain negative impact on the implementation of its operational strategies of those banks. Hopefully, the research work done relevant to the paper will not only make some academic contribution to china's compensation management theory, significantly, it will provide the beneficial road path for future compensation management practice in CCBSD to ensure the smooth implementation of its operational strategy. It is under such macroeconomic background that this paper carried out certain research around the target compensation management of CCBSD.Any research is done under specific theoretical environment. This paper is of no exception. The paper investigated the theoretical environment of both compensation theory and incentive theory and lead to some relevant enlightens on how to leverage the fundamental theory to build up target compensation mechanism as it is no doubt that the essence of any theory under investigated on this paper should be lie in whether it can be implemented in CCBSD.The paper starts with the discussion on the history and status quo of compensation management in CCBSD, then, analyzed the widely-existing defects of current compensation management such as the bureaucracy, lack of internal fairness, compensation design is not based on job evaluation and lack of the pricing system for jobs etc. and ends with the conclusion that the compensation management reform of CCBSD is in an urgent need. Job analysis and evaluation as the fundamental block of compensation management is the essence of the analyze part of the paper. Specifically, the prerequisite of implementation of target compensation mechanism is the existence of job analysis; for the same token, the prerequisite of design of target compensation mechanism is the existence of job value and job band. Therefore, the priority of building up target compensation mechanism is to carry out job analysis and evaluation. After the above-mentioned preparation work is done, the paper further outlined the overall architecture on the establishment of CCBSD's target compensation mechanism. The paper designed respective plan from three levels. To be more specifically, the paper suggested that target compensation mechanism should be complied with its operational strategy; the objectives and guidelines of its target compensation mechanism design are given; the key components, factors and design process of its target compensation mechanism design are also given. To ensure the concrete application of the strategic vision, the paper then discussed the roadmap of establishing CCBSD's target compensation mechanism covering the components such as compensation research and analysis, set the compensation benchmark, target compensation structure design and matters need attention on the application of target compensation etc.