Study On The Provincial State-owned Enterprise's Compensation Management System

With many periods of reform, great progress has been made in the management skills and profitability of state-owned-enterprise. However, there are many state-owned-enterprises that have only taken on the forms of modern enterprises without modern corporate system and governance structure, leading to a series of problems in power distribution, production management as well as human resources management, which seriously affects the profitability of state-owned-enterprises. Under the guidance of the theory of hierarchy of needs, equity theory, efficient wage and sharing economic theory, the thesis mainly studies on Y Company, analyzing the underlying problems of state-owned enterprise's compensation management system via the method of comparative analysis, in-depth interview and questionnaire. Problems such as the overall relatively low compensation level, the slow compensation growth rate, the unreasonable component of compensation, the inconsistency of compensation system with enterprise organization structure, and the compensation system be inconsistent with the enterprise's overall strategy. The issues mentioned above were mainly caused by the influence of traditional system and concept, historical burden, and lack of modern performance management system, etc. To address the issues in the provincial state-owned enterprise's compensation management system, we should combine the principles of rights being equal to liabilities, rational gap, stimulating innovation, material incentive, and spiritual incentive, as well as improve the compensation system, make the compensation system be consistent with the enterprise's overall strategy, make the compensation system suitable for the matrix organization, optimize the enterprise's performance management system, adjust the supporting policy for the inner retired workers, etc.