The Research On Salary System Reform Of Huayi Group

Salary design is the prerequisite and guarantee of an effective and scientific salary system which is a subsystem of the human resources management system in an organization. Establishing a salary system that meets the special conditions of state-owned enterprise and supports its developing strategy is an urgent and challenging task for Huayi Group.In this paper, we firstly give an overview of Huayi Group and then introduce the relevant salary systems and incentive theories for building an integrated, fair and competitive salary system. The problems, as well as their causes, of the salary system in Huayi Group are demonstrated by analyzing the data from a survey on the salary system of Huayi Group before 2008.Second, we show the effectiveness as well as the inadequacies of the salary system reform throughout Huayi Group in 2008, which focus on job analysis, position evaluation and ranking, and integration of salary and benefit structures. By carefully examining the inadequacies of the reform, we propose a plan for further reform to reach an integrated salary system that is internally fair and externally competitive.Finally, we summarize the main findings the paper and discuss the further improvements.