Private Enterprises Pay Based On The Balanced Scorecard Design And Operation Analysis

The design of compensation system is the core element of enterprise tomanagement of human resource. Whether a design of compensation system is good ornot, largely affect development and economic benefit of an enterprise. With thedevelopment of economic competition in the market and the development ofglobalization, compensation become intensely to attract core staff who regard asimportant element to maintain enterprise’s fate. The question that how to lead, retain,incent the core staff will come to the first important problem to enterprise.Privately-founded Chinese companies, as an important force to promote Chineseeconomic growth, have developed quickly in these years. They have made greatcontribution to extend employment and to improve people’s life. However, there is aweakness in the privately-founded Chinese companies and that is their managementof compensation.The Balance Scorecard (BSC) is a tools applying to strategic management. BSCconsidering core staff, technology and the culture of organization to be a key element,it respectively measure the retention rate of employee, the productivity of employeeand the satisfaction of employee, in order to assess employee’s ability, technologystructure and culture of enterprise organization etc whatever the circumstances areremained or changed. Because of this, BSC is suitable qualified to apply tomanagement of compensation. Based on the theory of BSC, combined with KeyPerformance Indicator (KPI), analyzed specific situation of JC Company andaccording to strategic vision of JC, I try to elaborate how to translate JC’s strategicobjective to specific indicator by utilizing BSC. To achieve employee goals andstrategy of enterprise, I establish a set of indicator of department which applies topersonal compensation by using KPI theory.