Study On The Optimal Compensation Scheme Of Demaishi

Compensation solution design is one of the most important contents of human resource management, any enterprises, no matter what kind of industry, nature and size, as long as there are employees they will face compensation design and management problems. Compensation design and management are always accompanying with social progress and enterprises’ development. The experts and scholars of economics, management, psychology and behavioral science from domestic and overseas have never ceased their researches and explorations which have far-reaching significance not only at present but also in the past and in the future.This paper launched an in-depth analysis of the existing compensation design problems and the caused reasons in Demaishi company based on domestic and overseas compensation theories. During the analyzing and solving process, the author uses documentary, contrastive, interview methods and summarization, through the combination of theory and practice, optimizes the enterprise’s whole compensation system via integral salary solution design, optimizes compensation of the front-line operators and auxiliary workers via human capital theory and merit pay theory, optimized technicians, sales and administrative staff’s compensation via human capital theory, merit pay and Broad band theory.During the compensation solution optimization process, we proceeded from the point of enterprise operating strategy, adhered to the basic principles of the compensation design of competitiveness, fairness, efficiency, legality, incentive and practicality. Firstly, changed the original single pay mode of compensation system by increasing non-monetary wages; Secondly, proposed a solution of front-line operators’ piece rate wage, auxiliary workers’ skill performance merit pay solution, and technicians, salesmen and administrators’ post wages. The design of production front-line operator’s skill matrix table can make quantitative supervisions and dynamic evaluations to the operators’ skills, also supplemented by the corresponding skill salary incentive, by which effectively stimulate the learning enthusiasm of the employees and improve their skill level at the same time. By setting and signing the bonus agreement of masters training apprentices, the enterprise has solved the contradictions between the masters and the trainees and improved the training effects effectively. The implementation of the broadband salary program could solve the problems in original post wage system, as few job levels couldn’t meet the demands of employees’ promotion. Finally, effective protection measures were put forward to the implement of compensation solution.Having the aids of integral compensation optimization design, the enterprise effectively solved the problems in the original compensation systems. Compensation optimization scheme in this paper is not only applicable for Demaishi but also for other mechanical manufacturing enterprises.