Diagnosis And Redesign Of Compensation System In H-Power Company

In knowledge age, human resource plays a greatly important role in the development of enterprises, and efficient human resource management turns out to be a vital part in quick developing enterprises. Nowadays, modern enterprises management evolves into a mode centered on human resource, while the competition among enterprises becomes competition for talents. For each enterprise, efficient human resource management and scientific staff management system are decisive factors affecting sustainable development of enterprises. H-Power Company, a manufacturer of rechargeable batteries in China, recently confronts some problems in human resource management such as turnover of key personnel, which has exerted a negative influence on the development and market of the company. To active human resource, motive talents and improve competitive ability, it is extremely urgent to diagnose and redesign the compensation and benefit system in H-Power Company.Based on a simple description of existing compensation system in H-Power Company, this paper firstly proposes the destination and methods for diagnosis of compensation system, then conducts the diagnosis in the way of interviews and questionnaire survey with executives, department manager, human resource management personnel and workers at production line in the company. According to the diagnosis results, the main problems of compensation system lie in the lack of science in compensation institution, unreasonable settings of wage level, basic position wage with no reference, bad attractiveness of wage for key personnel, wage adjustment with no reference, lack of relevance between wage and performance, defective benefit system. With these problems, the paper advocates that the solution should focus on external fairness, internal fairness, the link between compensation and staff capability, the link between compensation and performance, the motivation of different kinds of position, reasonableness in compensation structure.On the grounds of above analysis, in combination with modern compensation theories and relevant management techniques or methods, it raises a compensation management mode based on broadband compensation for H-Power Company. Meanwhile, with the principles of legality, value orientation, marketization, ability difference, performance orientation and economy, it establishes the procedures to resign of compensation system. Lastly, some measures taking to assure the successful implementation of the redesigned compensation system are suggested.