Management Research Of TK Company’s Labor Cost

In the element of cost, labor cost is the most controllable. In the management of the enterprise, people often ignore the management of labor costs. So far, company loss personnel and labor cost management lack effective method. Labor cost management problems become extremely serious these days. However, majority of management group has misunderstanding in cost management. Enterprise labor costs not only are an absolute value, but also should be an effective cost management.This paper introduces the related theory of labor cost management. I pick the TK Company as the represented objective of this research. The existing problems in this enterprise are the most common problem for majority companies. Combined the problems existing in the enterprise, I analyze the causes of the problem and proposed the useful solution.Through the simple introduction about the present situation of TK company’s labor cost management, I analysis the potential problem in labor cost management system. Through the development of organization, labor cost increase extraordinary. The company’s labor cost is higher than the industry average. Meanwhile, labor lost problem become serious. Company does not have effective control system for labor cost management. Due to the lack labor cost control method, the effectiveness of the company’s labor cost goes down year by year. Since management level ignore the importance of labor cost management, the company do not have the labor cost management mechanism. Human and financial departments are too independent between each other in labor cost which is difficult to data sharing. At the same time, the enterprise labor cost accounting has limitations and labor cost structure is not reasonable. To perfect the accounting system as a starting point, to strengthen the construction of labor cost management system, this paper combine the characteristics of the labor cost and take integrated management of the labor costs in both the human and financial departments to build up a constrained and cooperative management mechanism. Set up reasonable artificial cost budget system and build the budget management control system for the labor cost supervision in advance, between, and afterwards. To strengthen enterprise’s salary incentive system, reasonable design the labor cost structure. Based on the career development setup of salary, company should come up reasonable performance evaluation system to achieve the proper incentive effect and to improve the efficiency of the labor cost management.