Diagnosis And Optimal Design Of Henan HJ Company’s Employee Incentive System

Enterprises have ushered in an era of fierce competition in terms of human resources with the acceleration of economic globalization. It is people that matters most to maintain HR advantages in the competition. The level of staff productivity depends largely on the soundness of an enterprise’s incentive mechanism and the efficiency of associated motivators. Scientific and effective incentive plays an irreplaceable role in mobilizing people employees’ enthusiasm and their potential. Appropriate incentive will not only enhance people’s individual performance but also help enterprises to improve its performance, to attract, employ and retain talents, thus achieving "win-win" fruits. Theoretical studies on the motivation of the current are lot, but most of them are called the introduction of foreign advanced incentive system, the procedure applies to Chinese companies may appear acclimatized phenomenon. Therefore, the study of the SME staff motivation problems and difficulties, not only has high research value, but also has important practical significance.Henan HJ Company is a newly established SME engaged in production of mineral admixtures for concrete use. During its early stage, HJ suffered from low employee’s job satisfaction and insufficient staff engagement and innovation because it had not put employee motivation and appropriate incentives and policies in place. While, this in turn led to a serious loss of labor and hindered the company’s sound development.This paper took HJ as a study subject. Firstly, the author described the background and purpose of this study, pointed out the subject and its problems, as well as the diagnostic means and methods. Secondly, through an investigation to HJ’s current status of human resources and a questionnaire analysis to its employee motivation conditions, the author found out the deficiencies and defects of the company regarding to its existing employee incentive system. For example, there was no complete and effective incentive mechanism, nor corporate culture, neither reasonable and scientific performance management system. Thirdly, the author developed a productive incentive solution involving compensation, performance, training, corporate culture, etc. by referring to related theories and practical needs of HJ’s working staff. In particular, the author divided HJ staff into several groups and proposed different incentives for each of them, so as to enhance the relevance and ffectiveness of such measures. Finally, the author predicted the effect of implementing these optimal solution and put forward appropriate supporting measures, i.e. organizational guarantee, communication guarantee, system guarantee, etc.It is found that the design of incentive system must be combined with the actual situations of the enterprise. Especially for SMEs, cost and benefits issues must be taken into account. The program has to be focused instead of just covering everything. Meanwhile, great efforts need to be made to supporting measures to ensure a smooth implementation of the same.