LK Sales Company Compensation System Design

Since the1990s, with the rise of the knowledge economy and the increasingdeepening of economic globalization, Chinese enterprises are facing a more complexmarket environment and competitive pressures. It is recognized that human resourcemanagement and development is important for enterprises to maintain a competitiveadvantage, while the key is to establish reasonable and effective compensation system.Since our government had not unified the enterprises’ wage reform and adjustmentsafter1985any more, enterprises started to attempt reforms of wage system. Howevercompanies have not been able to get rid of the traditional distribution system due to theinstitutional inertia and the lack of the guiding scientific practice experience, such as theLK sales company which has been engaged in the reform of the wage system for a longtime with little effectiveness.Chapter One is a introduction, stating the theoretical research background, purpose,research status, research methods and thesis framework; In Chapter Two a theoreticalbasis for the LK sale of the company’s remuneration system design and processguidance will be provided through an overview of the pay system design theory; InChapter Three we will describe the status of LK sales company’s profiles andremuneration system as well as its organizational structure and human resources, withsatisfaction surveys, interviews and analysis of the company’s internal information, forpresenting the problems of LK sales company’s remuneration system: low wages andremuneration, poor external competition, a single pay channel, lack of adjustment basis,little dependence between pay levels and performance; Chapter Four is the focus of thispaper, we will design the enterprise’s remuneration system program, in accordance withthe general steps for compensation design such as job analysis, salary structure,performance appraisal, and put forward a targeted project for the LK sales companyfrom management positions, technology positions jobs pay point system and itssubsidiaries, and the remuneration packages of basic salary commission system. The system is based on the LK sales of the company’s actual situation, and took full accountof the status and responsibility, job skills, labor intensity, work conditions, so it’s moreeffective to mobilize staff’s enthusiasm and creativity. In Chapter Five we willsummarize the whole research.