A Research On The Annual Salary System Of The State-owned Enterprises In China

The state-owned enterprises in the overall economy accounted for 45%, with China economy play more and more important role in the world economy. Therefore, the state-owned enterprises play an increasingly important role in the development of the national economy. Thus, business activities that foster the excellent managers of state-owned enterprise to adapt to the requirements of enterprise development have become urgent problems at present.The goal of the annual salary system is to establish effective incentive and restraint mechanisms, which make manager gain pays is parity of their contribution. The implementation of the annual salary system needs a clear implementation of the object, perfect appraisal system, setting up reasonable compensation structure and the establishment of risk prevention system and effective supporting measures. In the first part, I introduced the research background, purpose and significance. Secondly, I reviewed and summarized the literatures relating to the annual salary system and its theory, such as justice theory, expectation theory, and principal-agent theory. More specifically, I reviewed the definition and operationalization of the annual salary system, the literature relevant to the theory of the annual salary system was reviewed. Thirdly, the practices of home and abroad the annual salary system were compared, and explored the problems at the existing salary system of state-owned enterprises.In the final part of the dissertation, I summarized the conclusions of this research, the limitations of the present study and the directions for future study were also discussed.