LEWA Company Compensation System Design And Application

Compensation management is one of the most important management modules in HRM. How to form and establish a partnership between the enterprise and the employee? How to make it combine with the enterprise strategy and enterprise culture, and become an important lever to reach enterprise strategic goals and values. Offering reasonable incentive for good performers, motivating employees, play a central role. How to promote the development of enterprise and human resources, are the goal of compensation management.This paper, based on the concept of modern compensation management, taking LEWA company as an example, described the scientific compensation system at LEWA company and its effect. LEWA is a medium sized manufacturing company with a high ratio of professional and well educated engineers. How to allocate and utilize the human resource according to long term company strategy is the top priority of HRM. The focus of the paper is on designing a reasonable and effective compensation system to enhance enterprise development and team building based on the current company layout.The paper consists of five parts:Part one:Introduction. Define environment and background compensation system, overview about domestic and international compensation systems. Summarized methods and tools used by the HR research. Brief descript about the framework and structure of this paper.Part two:Present the theoretical basis of compensation system, concepts and characteristics of compensation. The influence of internal and external environment on the compensation system, analyzed and reviewed different hinds of compensation systems and their theoretical basis.Part three:Introduce the company profile and current status of the compensation management. Looking through the company’s organizational structure and processes, carefully analyzing the former compensation management system, analyzed the problems existing in the process of compensation management.Part four:Re-design of LEWA company compensation system, Focus on the existing problem using advanced theory and method, and after job analysis and evaluation, salary survey the compensation system has been redesigned. Part five:The implementation and application of the new compensation system in the company. Short introduce of related management system.This paper, based on compensation management theory and knowledge, combined with the company’s actual situation and the existing problems, described a practical and proved salary system in use. Hope this design can provide reference for similar enterprise and be useful for HR managers.