Study On The Remuneration System Of Front-line Workers In Lean-production At HRB

HRB is a production base(factory) subordinated to CRB which is a national FMCG conglomerate,Mainly for beer brewing. Under the unified deployment of the conglomerate, HRB is engaged in promotion and arrangements for lean production and in leading in all-around lean production in aspects of renewal of equipment, optimization of process, etc. However, the compensation system for front-line employees still follows the past one that has been used for many years, which has hindered the further development of lean production to a certain extent: excessive emphasis on setting salary standard according to different posts has hindered the “flow” of production staff and thus has caused failure in real team operation; setting bonus according to workload has hindered the conception of “waste elimination”. There is a lack of external drive for employees to learn new skills and new methods. Based on the above reasons, it can be seen that the previous compensation system has already cannot meet the needs of developing the company and cannot promote the further development of lean production in the company from the perspective of human resources.This paper analyzes the disadvantages of the existing compensation system for lean production as well as staff learning and development from the viewpoint of HRB’s implementation of lean production combing with the results of investigation. Meanwhile, in view of these reasons, this paper redesigns the compensation system for front-line employees in HRB and attempts to search a new scheme of compensation system in conformity with the business direction of HRB.This paper is divided into six chapters: the first chapter is introduction which illustrates the background, research objectives, significance and methods of compensation system redesigning for front-line employees in HRB Company. The second chapter is theory about lean production and salary management, mainly elaborating on the development, goal and demand for human resources of lean production on one hand and concepts and theory of modern salary management on the other hand, especially with a focus on 3P-M model and the design of compensation system based on position and skill. The third chapter is about descriptions and analysis on the current status of promoting lean production in HRB Company as well as its compensation system for front-line employees, analyzing the conflicts between the compensation system and implementation of lean production. Chapter four to five are about optimization design of compensation system for front-line production employees in HRB from the aspects of principle planning, basic salary framework and bonus respectively. All the driving factors in 3P-M model are especially introduced in comprehensively with the consideration of goal and orientation of lean production in order to explore direction for developing compensation system for front-line employees in enterprises which are implementing lean production for FMCG, with the expectation of providing operable methods for framing a compensation system for front-line employees and enriching the practice of compensation system construction.