Study Of Compensation Proposal Of Smith Drilling Equipment Company

The human resources management as a discipline has a long history of development for several decades of years in Europe and North America and, however, is still at its initial stage of development in China. In spite of the fact that many human resource managers have some understanding of its theory, concept and even tools&methods, yet, when putting it into actual application, they are not deep in understanding of its theory, concept, tool and methods and there are differences between a lot of practice and the national conditions and culture of China, thus leading to ideal results impossible to be achieved in the human resources management in the enterprises, especially reflected in the field of the remuneration management.Smith Drilling Equipment Co., Ltd. is a wholly-owned enterprise in China solely invested by Smith International Inc. in the United States in2007, which is specialized mainly in the manufacture of well-drilling products in the oilfields. The human resources department in the headquarters of the company in the United States is operating a post structure design&pay structure system, but for the Chinese market, it is blank. However, the remuneration management system is a core and a sensitive issue in our company, which is applied in the recruitment, performance and incentive systems. Therefore, a post structure&pay structure system applicable to the area of China was developed, examined&approved and issued to be implemented by the human resources department in the headquarters of the company in June2009, which has been implemented up to now for more than two years. The operation of the system does have achieved some good results, but there are still some problems existing to be improved in the post setting, remuneration framework and practical operation. So, I decided to study the system program and try to put forward some feasible measures to improve and promote the development of the human resource management in the company, so as to better the services for the enterprise management.Starting from the discussion of the remuneration theory, through a comparison and analysis of remuneration over the world and in the country and making an inventory of the implementation of the remuneration management for more than two years in the company, I think there are now four problems existing in the remuneration management:1. It is fuzzy in the requirements of the post evaluation;2. It is too elastic in the remuneration management:;3. It is single in the pay structure and lack of a performance assessment system, thus making it impossible to carry out a long-and short-term incentive system and excellent employee selection;4. There is no competitiveness in the pay structure. Thus, based on these problems and business’s stat. the follow improve solution has been worked out:1. To improve the job capsules and design.2.To analysis the survey data to find out the difference with salary structure.3. To establish the effective incentive plan to motivate the employee.4. To Balance the internal structure difference5. To set up the effective KPI.6. To make sure the communication with employees smoothly so that the employees can understand the policy on time.