Diagnosis And Redesign Of Compensation System In CBD Company

Within the aspect of human resource management, there is an alienable associationbetween the compensation design (CD) and the sustainability of the enterprises. CD isessential to the employees for their healthy life and personal development. CD is also thedriving force for the corporates’ successful strategies. The corporates must have properlydesigned compensation systems according to their business situations so that theemployees can grow together with the corporates. Remuneration for employees maintainstheir daily activities and helps them to promote (e.g. engage in advanced studies). On theother hand, remuneration ensures the enterprises to fulfill the constant need for the laborforce. So it is safe to say that the compensation systems play a significant role not only inthe human resource department, but also in the entire corporates.Different employees have their distinct understanding of the payment. In general,most employees consider their salaries as the representation of personal values. Theamounts of salary mean to which extend the corporates think that the employee’s work isgood enough. The salary also indicates the future of the employee in the corporate. Hence,enterprises, with respect to human resources, will make full use the compensation systemsto inspire their employees to create value.The supply-demand relationship also influences the compensation systems fordifferent industries. The labor shortage in a certain industry always leads to rising of theaverage salary. And then this attracts employees from other industries. Eventually, therewill be an equilibrium point for the labor mobility and compensation fluctuation.In this thesis, the listed company–Central Business District (CBD)–will be studied.Problems in the compensation system are investigated. Data accessing methods includebut not limited to: literatures, interviews, questionnaires. Then CD is performed accordingto the need of the enterprise for management and development. The re-constructedcompensation system enables the CBD to maintain current team while attract moretalented people. With the designed compensation system, the employees are encouraged tocontribute their knowledge, skills and innovation to CBD.The thesis is organized as the following. In Chapter1, the background and motivation of the thesis is introduced. Basic methodologies used are described. Chapter2analyses thepotential problems in current compensation system for CBD. Chapter3focus on thereconstruction of the compensation system. Design method is described in detail. Chapter4investigates the cost of labor force and its maintenance. Finally, Chapter5summarizedthis thesis. And main drawbacks as well as future work are proposed.