Study On The Remuneration Incentive Mechanism For Corporations

Remuneration is not only the cost paid by an enterprise to its staff for their labor force, but also is mechanism for the staffs initiative and creativity. Incentive has two meanings of motivation and encouragement, also it is indispensable part of the management process and activities. Remuneration system and incentive mechanism are inseparable.Therefore, how to harmonize the contradiction between an organization and its staff on remuneration and provide the crucial for the organization achievements strut, which is under the new economical condition to drove the theory re-understood. At the same time, it has the extremely important practical significance to the remuneration management theory development. Nowadays, the lack of incentives, frequent staff job-hopping, increased cost of management are quite common phenomena in enterprises. How to understand and meet the needs of employees and stimulate their energy are becoming the priorities for the managers in the new economic era.W is a private survey and design company. After years'rapid development, the existing human resource(HR)system especially the payment part, has got several drawbacks and becomes a barricade to the company with which cause employees to feel unsatisfied. The payment system does not fit the development requirement. As a result, the efficiency goes down.Based on the W company's actual payment system such as its strategic disjointed, low overall level and unscientific structure of remuneration and other issues, massive investigation and analysis of markets is done. By combining the company's development stage&strategy, HR&remuneration strategy, organization pattern, job design and evaluation, this article gives a comprehensive diagnosis, makes deep delineation of research and redesign the remuneration system from theory to practice.On the theory basis of modem HR management, salary management, incentive mechanism and organization behavior, this design involves the guiding ideology and principle, pattern and structure, relative salary standard, and concrete salary plan for each series of job posts. It introduces the concept of total payment and broad band salary. It put importance on analyzing structure of organization&HR, dividing the staff into two sequences of management and production and further refined. It pays more attention among senior managers, middle managers and core technology staff. It enhances efficiency, fairness and incentive of the system through implementation for executive annual salary system and stock option plan(SOP), position and skill wage system of staff, increasing performance, length of service and market factors. It provides promotion and pay channels for the employees especially technology classes through broad band and level salary. Thesis focus on comprehensive analysis and description of the job evaluation and salary system design. Meanwhile, personalized benefits are designed to meet the needs of workers. Finally, the paper gives an overall evaluation of the redesigned system, and put forward specific implementation of the recommendations. It is hoped that it will share some experience of establishing a remuneration incentive mechanism for modern private corporations.