Optimal Design Of Front-line Employee Compensation Management Based On Equity Theory

With the rapid development of internet technology,small and medium-sized enterprises are facing fierce competition.The core factor of competition among enterprises in the same industry is talents.The production line staffs are the basis of manufacturing enterprises.Therefore,it is important to understand how the company retains the staffs,arouses their working enthusiasm,and uses their knowledge and skills.F Company is a long-year history manufacturing enterprise which is processing.After years of development,the enterprise scale expands gradually and the economic benefit increases year by year.In the meantime,the original management system of the enterprise has exposed some obvious deficiencies as well,especially in the compensation design of production line staff,which leads to the low sense of organizational fairness.Therefore,the company should change the existing compensation incentive mechanism and carry out an equitable and competitive compensation management system.Based on the instruction of equity theory,through the adoption of questionnaire survey,theoretical research and data comparison,the thesis follows the logical chain from finding out problems,analyzing problems,to solving problems.This thesis takes the company's front-line staffs as the research object and carries out the redesign of the compensation system.First of all,this thesis defines relevant concepts and introduces the relevant theories.Secondly,through interviews and questionnaire survey,the thesis finds out the problems and shortcomings of the compensation system,and further analyzes the causes of the problems.Thirdly,the thesis combines theory with practice,and puts forward the ideas and compensation system optimization based on the principles of equity,economy and so forth.Optimizing the front-line employees' compensation system design can improve the fairness of company's existing compensation system.Finally,the questionnaire resurvey is carried out to compare with the previous data to verify whether the optimization scheme has achieved the goal.The main conclusions of this research are as follows:1.As pay structure affects employees' sense of organizational justice,it must be established reasonably.2.The indicators of performance appraisal system should be simple and easy to operate.3.In the context of Chinese culture,interactional justice is highly important.4.Employee participation can effectively enhance the sense of procedural equity.The new compensation design has strong practicality and flexibility.The optimal design can improve employees' organizational justice and meet the needs of the company's strategic development by directly optimizing the compensation system of employees on the production line.It is hoped that this research can be used for reference to other similar enterprises.