Research On Compensation System Optimization Of ZZ Tobacco Company

The tobacco industry has enjoyed a high profit as a state monopoly. However, with development of market economy, system innovation, brand cultivation and concentrated administration into asset management has become major requirements of the new era. At the same time, the requirements of people’s living environment, life safety and health consciousness gradually improved, the state also enacted a series of laws to perfect the tobacco market, and the tobacco industry is going through a major transition. Due to the special nature of tobacco companies, the management of existing organization overstaffed, duty authority is unidentified; performance appraisal is not in place and so on, eventually led to low efficiency of management. Tobacco companies needs to greatly improve the management level to improve efficiency. Tobacco companies and the compensation system as a child below planned economy, have been far behind of the requirements in modern enterprise construction, becomes "short board ". The main performance is:lack of job evaluation; no incentive mechanism; and the compensation system has obviously be promoted according to status. Therefore, how to build a set of fair and incentive salary system has become an imminent problem of tobacco companies.As a case study, a thorough investigation in ZZ Tobacco Company is conducted, and the study follows from the theory to practical research. In addition to a large number of literature reading, this research mainly includes the followings:first, through collecting information, the development of tobacco companies, human resources, the current compensation system and the existing problems are make clear; and the diagnostic analysis of the company’s pay system is done through individual interviews, questionnaire survey and literature search. Secondly, aiming at the existing problems, the company’s salary system is redesign from the overall structure, salary level defining and adjustment, salary distribution method and the compensation scheme of the salary system. Finally, the salary system optimization is inseparable from the support of other measures, concluding the salary budget, payroll, employee training, performance evaluation and construction of culture in the fifth part of the article, in order to promote the salary system design and implementation.